US stocks lost steam early this week, following a rally in the previous sessions to kick-start the week. The week features a mixed tone and a busy program on Wall Street. Meanwhile, the DJI (Dow Jones Industrial Average) rose by 0.1%, and the S&P 500 closed the session near a flatline. The Tech-heavy ^IXIC (Nasdaq Composite) dropped by 0.1% to reverse the rise in the previous period.
On the other hand, the US Treasury note for the benchmark 10-year yield was at 4% through Monday afternoon, closing at 3.98%. The US benchmark WTI rose to $80.55 per barrel, indicating that crude oil traded higher. The US dollar index also dropped to trade at $104.34. In the meantime, the economic data report on Friday indicated that the services sector rose in February. Wall Street has now switched its attention to the monthly employment report.
Economists estimate that the employment report will announce 215,000 new jobs, which would be lower than the 517,000 job additions in January. Yet the unemployment rate might remain stagnant at 3.4%. Another vital point from the report is wage growth, with a possible 4.7% earnings over last year and a 0.3% monthly rise in average hourly earnings. The Bank of America economists’ team thinks the January report was due to climate change and mean-reverting nature of payrolls.
In any case, investors are also considerate of the Federal Reserve's next biannual monetary policy testimony. Other vital reports include the Fed’s Beige Book, the Bureau of Labor Statistics report, and ADP’s monthly payroll growth. Apple shares rose by about 2% as Goldman Sachs initiated coverage for its price target of $199. The bank also explained that the company’s success in loyalty & hardware design increased users.
CIEN shares rose by 4% on Monday after posting higher-than-expected results to top expectations following the more robust demand for its networking business platforms. Besides, BBIO Pharmacy shares surged by over 50% after the firm topped in the study of a genetic condition in children that slowed bone growth. Snap shares rose by 9% after growing concerns that the US might ban or restrict TikTok app use.
Above all, Spirit Airlines shares gained by about 9% after reports that JetBlue Airways is bracing for challenges from the Justice Department. The shares finally closed at nearly 1% higher. BJ’s Wholesale, Oracle, and Dick’s Sporting Goods will report results on the earnings front this week. Most importantly, the next Federal Reserve’s interest rate and the unemployment rate would be critical determinants in what will unfold next on Wall Street.
