Stocks Mixed as Dow Extends Recovery After Strong Surveys of US Companies


(Reuters) – The SP 500 and the Dow Jones Industrial Average rose on Friday, extending a rally from the previous session, as inflation fears persist for growth stocks at the end of a volatile trading week .

Boeing contributed to the outperformance of the Dow Jones, which added 3.2%, as industry sources said the aircraft manufacturer made preliminary plans to increase production of the 737 MAX to 42 jets per month on fall 2022.

Data from IHS Markit showed US business activity picked up in May amid strong domestic demand, but backlogs of unfinished work mount as manufacturers struggle to find raw materials and labor.

After a three-day slump, major Wall Street indices gained ground on Thursday after data showed the fewest weekly jobless claims in the United States since the pandemic recession in 2020, indicating a labor market recovery.

Despite Friday’s weakness, the Nasdaq is on the verge of breaking a four-week losing streak as investors this week returned to tech-linked mega-cap stocks, which have recently been hit the hardest. inflation concerns.

“Everyone is grappling with the timing and magnitude of the COVID recovery. Inflation fears have really been sparked by some of these positive economic reports,” said Greg Bassuk, CEO of AXS Investments.

Bitcoin fell after Chinese Vice Premier Liu He said his government was going to crack down on virtual currency mining and trading activities. Cryptocurrency-related shares Coinbase Global, Riot Blockchain and Marathon Digital Holdings erased early gains to fall to between 2% and 6.3%.

Seven of the 11 PS sectors were higher, with economy-related finance and energy contributing the most.

At 2:05 p.m. ET, the Dow Jones Industrial Average rose 154.21 points, or 0.45%, to 34,238.36, the SP 500 gained 5.35 points, or 0.13%, to 4,164.47 and the Nasdaq Composite fell 27.38 points, or 0.2%, to 13,508.36.

Ford Motor Co rose 7.4% to $ 13.4, establishing its biggest daily percentage gain in more than two months, after announcing Thursday plans to form a U.S. battery joint venture with the maker of South Korean SK Innovation batteries to support its deployment of electric vehicles. , confirming a Reuters report earlier.

Nvidia Corp added about 3.4% after announcing a four-to-one stock split as it seeks to make its stock cheaper for investors.

VF Corp fell 7.5% after quarterly profit for Vans and parent company The North Face fell below estimates.

The SP 500 posted 24 new 52-week highs and no new lows; the Nasdaq Composite recorded 108 new highs and 24 new lows.

Reporting by Medha Singh and Shashank Nayar in Bengaluru, Krystal Hu in New York; Editing by Maju Samuel and Aurora Ellis

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