Stock Market Today

Stock Market Today: Dow Clears 34K, Nasdaq Tops 14K as Recovery Accelerates

A steep decline in unemployment claims and better-than-expected retail sales provided fresh evidence of an economic recovery and triggered a broad rally Thursday.

If you're a fan of big, round numbers, you probably enjoyed Thursday's market activity, which saw the major stock indexes flirt with a pair of them amidst a wide, robust rally.

Fueling today's fire? For one, the lowest reading for initial unemployment claims so far in the COVID recovery: 576,000 for the week ended April 10, a sharp decline of 193,000 from the week before.

"The drop in initial claims hints that job separation rates are starting to normalize as the economy picks up steam, after having remained elevated throughout the recovery," says Jonathan Millar, deputy chief U.S. economist at Barclays Investment Bank. "Sustained progress on this front would be a very positive development for the labor market recovery, which has lagged well behind the recovery in activity."

Also inspiring optimism was a massive 9.8% month-over-month leap in March retail sales that easily cleared consensus views for a 5.8% improvement.

"There is plenty of pent-up demand in the economy, as Thursday's retail sales report showed," says Vanessa Martinez, managing director and partner for wealth management firm The Lerner Group. "Consumer savings rates have surged over the past year, and we expect consumer spending to remain elevated for the remainder of 2021, which should bode very well for 2021 GDP figures."

Earnings reports added to the exuberance, too. UnitedHealth Group (UNH, +3.8%) reported a nearly 43% year-over-year pop in profits to $5.31 per share that easily hurdled analysts' expectations. That helped spark a strong day in the healthcare sector (+1.7%), and pushed the Dow Jones Industrial Average past the 34,000 mark, an 0.9% gain to a record 34,035.

Like what you're reading? Let us do the work for you. Sign up for Kiplinger's FREE Closing Bell e-letter and get the day's stock market moves sent to your inbox.

Semiconductor stocks such as Nvidia (NVDA, +5.6%) and Advanced Micro Devices (AMD, +5.7%) powered the Nasdaq Composite (+1.3% to 14,038) through the 14,000 level. And the S&P 500 climbed 1.1% to a record close of 4,170.

Other action in the stock market today:

  • The Russell 2000 rose 0.4% to close at 2,257.
  • U.S. crude oil futures improved by 0.5% to $63.46 per barrel.
  • Gold futures punched 1.8% higher to $1,766.80 per ounce.
  • The CBOE Volatility Index (VIX) declined 2.9% to settle at 16.50.
  • Bitcoin prices rebounded 2.4% to $63,489. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)
stock chart for 041521

YCharts

Dow 34K: Just the Beginning?

Thursday had a celebratory feel to it, but investors shouldn't blow through all of their confetti. Several analysts who weighed in on the Dow's ascent to 34K believe there's more to come.

"The Dow's push through 34,000 is a signal that investor appetite for future growth prospects is spilling over into more value-oriented names," says Peter Essele, head of portfolio management for Commonwealth Financial Network. "The demand for industrials and more cyclically oriented areas should continue as the vaccines take hold and earnings potentially come in higher than originally expected."

Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, adds that "a re-opening economy, with better weather and decreasing consumer caution, will drive markets higher this year, with double-digit returns possible in 2021."

Those are certainly encouraging remarks for holders of any of the Dow's 30 stocks, not to mention the numerous other stocks counting on the recovery to continue reversing their fortunes.

They also bode well for many of the cyclical names found among the potential beneficiaries of President Joe Biden's recently unveiled "American Jobs Plan." Generally speaking, a brisk economic expansion would light a fire under many of these stocks – and they could really heat up if Biden's plan manages to gain traction in the months ahead. Check out these 15 infrastructure plays that could get a boost from the American Jobs Plan.

Kyle Woodley was long NVDA as of this writing.

Most Popular

Refunds for $10,200 Unemployment Tax Break to Begin This Month
Coronavirus and Your Money

Refunds for $10,200 Unemployment Tax Break to Begin This Month

The IRS will start issuing automatic refunds sometime in May to people eligible for the unemployment benefit tax exemption.
May 1, 2021
Child Tax Credit 2021: Who Gets $3,600? Will I Get Monthly Payments? And Other FAQs
Coronavirus and Your Money

Child Tax Credit 2021: Who Gets $3,600? Will I Get Monthly Payments? And Other FAQs

People have lots of questions about the new $3,000 or $3,600 child tax credit and the advance payments that the IRS will send to most families in 2021…
May 4, 2021
10 Dividend Growth Stocks You Can Count On
dividend stocks

10 Dividend Growth Stocks You Can Count On

What should investors prioritize in dividend growth stocks? A history of aggressive payout expansion, and the ability to generate enough cash to keep …
May 3, 2021

Recommended

Stock Market Today 7/23/20: Tech Stocks Take a Tumble
Markets

Stock Market Today 7/23/20: Tech Stocks Take a Tumble

An increase in weekly jobless benefits applications and profit-taking in tech stocks sent the major indices to steep declines Thursday.
July 24, 2020
Closing Bell 7/1/20: Nasdaq Hits New Highs to Start Q3
Markets

Closing Bell 7/1/20: Nasdaq Hits New Highs to Start Q3

The first day of 2020's second half kicked off with a mixed trading session that saw Amazon (AMZN) and Facebook (FB) help the Nasdaq to new highs.
July 2, 2020
Closing Bell 6/22/20: Big Tech Carries the Markets
stocks

Closing Bell 6/22/20: Big Tech Carries the Markets

Apple (AAPL) and Microsoft (MSFT) were at the forefront of a tech-led rally in the broader markets Monday.
June 22, 2020
Stock Market Today: Fed-Led Momentum Propels Dow Again
stocks

Stock Market Today: Fed-Led Momentum Propels Dow Again

Fed's bond backing, Powell's suggestion for more Congressional spending and hints at an infrastructure plan lifted stocks broadly Tuesday
June 16, 2020