Dow hits record, Nasdaq falls for 4th session
ADP's report on private sector hiring is first of three jobs reports this week
U.S. stocks ended the session mixed as investors celebrated GM's reaffirmed financial forecast and the addition of 742,000 jobs as reported by ADP, while also facing new safety questions about Peloton.
The Dow Jones Industrial Average hit a fresh record, rising over 97 points or 0.3% while the Nasdaq Composite fell for the fourth session, closing down 0.37% and the S&P pushed out a small gain.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44782 | -128.65 | -0.29% |
| SP500 | S&P 500 | 6047.15 | +14.77 | +0.24% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19403.947849 | +185.78 | +0.97% |
Peloton shares tumbled over 14% after the company, along with the U.S. Consumer Product Safety Commission, announced a recall of all its Tread+ treadmills falling the accidental death of a child.
PELOTON'S TREADMILL RECALL: WHAT TO KNOW
"Consumers who have purchased either treadmill should immediately stop using it and contact Peloton for a full refund or other qualified remedy" the recall release detailed.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PTON | PELOTON INTERACTIVE INC. | 9.55 | -0.79 | -7.64% |
In earnings news, General Motors reaffirmed its full-year guidance sending the shares 4% higher.
GM CEO MARY BARRA OPTIMISTIC ON REMAINDER OF 2021
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 55.59 | +0.80 | +1.46% |
| F | FORD MOTOR CO. | 11.09 | -0.01 | -0.14% |
CEO Mary Barra, in a letter to investors, said "We are also reaffirming our guidance for the full year, and based on what we know today, we see results coming in at the higher end of the $10 billion to $11 billion EBIT-adjusted range we shared earlier this year" this despite ongoing production challenges tied to the chip shortage.
Ridesharing company Lyft, in its quarterly results, noted a boost in riders with 13.5 million, a jump of about 8%. Rival Uber reports results after the close of trading.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LYFT | LYFT INC. | 17.17 | -0.19 | -1.09% |
| UBER | UBER TECHNOLOGIES INC. | 73.07 | +1.11 | +1.54% |
In other stock news, Facebook is also in focus after the social media giant upheld its ban on former President Trump.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FB | NO DATA AVAILABLE | - | - | - |
In other economic data, the Institute for Supply Management, a gauge of activity in the services sector of the economy, expanded 62.7. A level above 60 signals expansion.
Most economic indicators point to improving conditions, but investors are worried about renewed coronavirus outbreaks and a possible uptick in inflation.
Remarks by Treasury Secretary Janet Yellen appeared to stoke those worries. Selling on Wall Street accelerated after Yellen said interest rates may have to rise to keep the economy from overheating. She later downplayed her comments during an interview with The Wall Street Journal after markets closed.
After the close of trading, attention will turn to Fox News and Fox Business parent Fox Corporation, insurer MetLife, and online payments giant PayPal.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FOXA | FOX CORP. | 46.02 | -0.83 | -1.78% |
| PYPL | PAYPAL HOLDINGS INC. | 87.34 | +0.57 | +0.66% |
| MET | METLIFE INC. | 86.59 | +1.40 | +1.64% |
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In energy markets, benchmark U.S. crude hovered slipped 0.67% to $65.25 per barrel, while gold traded up 0.62% to $1,787 an ounce.
The Associated Press contributed to this report.