Dow bounces higher as Nasdaq, S&P drop on Yellen's rate hike talk

Name: Investors should buy tech stocks in market pullbacks: Investment strategist
Uploaded: 2021-05-04T12:09:29-04:00
Duration: 2 min 56 s
Description: BMO Capital Markets chief investment strategist Brian Belski on his outlook for the market, sharing that he is still bullish for the long-term.

BMO Capital Markets chief investment strategist Brian Belski on his outlook for the market, sharing that he is still bullish for the long-term.

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Investors should buy tech stocks in market pullbacks: Investment strategist

BMO Capital Markets chief investment strategist Brian Belski on his outlook for the market, sharing that he is still bullish for the long-term.

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U.S. stocks, in a choppy session, got whipsawed after U.S. Treasury Secretary Janet Yellen signaled interest rates may need to rise to manage the economic rebound and prevent the economy from overheating. Additionally, investors digested a fresh batch of corporate earnings amid more talk of inflation.

YELLEN SAYS RATE MAY NEED TO RISE TO HANDLE INFLATION

Ticker	Security	Last	Change	Change %
I:DJI	DOW JONES AVERAGES	44910.65	+188.59	+0.42%
CAT	CATERPILLAR INC.	406.11	+2.41	+0.60%
JNJ	JOHNSON & JOHNSON	155.01	-0.39	-0.25%

In a late-session turnaround, the Dow Jones Industrial Average posted a gain of 20 points or 0.06%, curbing a drop of over 300 points earlier. The S&P also slipped 0.67% led by information tech companies.

Ticker	Security	Last	Change	Change %
SP500	S&P 500	6042.78	+10.40	+0.17%

While the Nasdaq Composite suffered the worst drop, falling 1.8%, in part due to weakness in Tesla and Apple. Tuesday marks its weakest day since March.

Ticker	Security	Last	Change	Change %
I:COMP	NASDAQ COMPOSITE INDEX	19403.947849	+185.78	+0.97%
TSLA	TESLA INC.	357.09	+11.93	+3.46%
AAPL	APPLE INC.	239.59	+2.26	+0.95%

In earnings news, both Pfizer and CVS boosted financial outlooks as demand for COVID-19 related items fueled results and shares bucked the selloff.

Ticker	Security	Last	Change	Change %
PFE	PFIZER INC.	25.83	-0.38	-1.45%
CVS	CVS HEALTH CORP.	59.08	-0.77	-1.29%

"We delivered strong first-quarter results and improved our outlook for the year," said CVS Health President and CEO Karen S. Lynch. "We continue to execute on our strategy while simultaneously managing through a pandemic, helping the country on the road to recovery.

WALMART OFFERS WALK-UP COVID-19 TESTING

Ticker	Security	Last	Change	Change %
WMT	WALMART INC.	92.64	+0.14	+0.15%

Walmart confirmed, along with Sam's Club, it now offers walk-in COVID-19 testing.

BIDEN TALKS TAXES ON AMERICANS EARNING LESS THAN $400K

Moderna also in focus after announcing plans to boost its manufacturing facility in Massachusetts. "Our manufacturing facility has been core to our long-term strategy and has enabled us to provide the scale and flexibility to support the development of our mRNA medicines and vaccines including our COVID-19 vaccine," said CEO Stéphane Bancel in a statement.

Ticker	Security	Last	Change	Change %
MRNA	MODERNA INC.	43.06	-0.33	-0.76%

Financials were in focus as both JPMorgan and Goldman Sachs confirmed plans to return workers to New York City offices in the coming weeks.

Ticker	Security	Last	Change	Change %
JPM	JPMORGAN CHASE & CO.	250.69	+0.94	+0.38%
GS	THE GOLDMAN SACHS GROUP INC.	610.29	+4.87	+0.80%

Marathon Oil announced it has reduced $500 million in debt.

Ticker	Security	Last	Change	Change %
MRO	NO DATA AVAILABLE	-	-	-

After the closing bell investors will get results from Lyft, Xilinx, and Zillow to name a few.

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Ticker	Security	Last	Change	Change %
LYFT	LYFT INC.	17.36	+0.18	+1.05%
XLNX	NO DATA AVAILABLE	-	-	-
Z	ZILLOW GROUP INC.	84.71	-0.74	-0.87%

In commodities, oil continues its upward climb climbing above the $65 per barrel level, while gold was modestly lower trading at $1,779 an ounce.