US Market rebounds on bargain hunting

The US stocks rebounded sharply in volatile trade on Friday, 01 October 2021, with the major three indexes finishing higher, as investors chased for bargain buying after the steep drop seen in the recent sessions. The rebound in the Wall Street chiefly supported by news of Merck positive trials for new oral treatment for Covid-19 treatment, pullback in treasury yields, and better than expected ISM manufacturing PMI data.

At the close of trade, the Dow Jones Industrial Average index advanced 482.54 points, or 1.43%, to 34,326.46. The S&P500 index added 49.50 points, or 1.15%, to 4,357.04. The tech-heavy Nasdaq Composite Index added 188.12 points, or 0.82%, to 14,566.70. For the week, the Dow slid by 1.4%, the S&P 500 slumped by 2.2% and the Nasdaq plunged by 3.2%. For the month of September, the Dow tumbled by 4.3%, meanwhile the Nasdaq and the S&P 500 plummeted by 5.3% and 4.8%, respectively.

 

Total volume turnover on U.S. exchanges stood at 8.98 billion shares, down from yesterday's 10.73 billion shares. In the NYSE exchange, 2340 issues advanced, 1003 issues declined, and 120 issues closed unchanged. In the NASDAQ, 2774 issues advanced, 1698 issues declined, and 253 issues unchanged.

Total 10 of 11 sectors ended up along with the S&P500 index, with energy (up 3.3%) was top gaining sector, followed by communication services (up 1.78%), materials (up 1.6%), financials (up 1.59%), information technology (up 1.44%), and industrials (up 1.4%) sectors.

The top performers on the S&P 500 were CF Industries Holdings Inc (up 9.5%), TripAdvisor Inc (up 9.2%), and Merck & Company Inc (up 8.4%). The worst performers were Regeneron Pharmaceuticals Inc (down 5.7%), Kroger Company (down 3.2%), and Illumina Inc (down 2.7%).

Shares of Merck jumped after the drug maker and Ridgeback Biotherapeutics said their oral antiviral treatment for Covid-19 reduced the risk of hospitalization or death by 50% for patients with mild or moderate cases.

Shares of travel related companies advanced on news of new Covid-19 drug from Merck. Shares of Royal Caribbean and Las Vegas Sands added 3.8% and 4.3%, respectively.

ECONOMIC NEWS: The Institute for Supply Management manufacturing PMI crept up to 61.1 in September from 59.9 in August, with a reading above 50 indicating growth in the manufacturing sector

COMMODITY NEWS: Crude oil prices rose by around 1% on Friday ahead of a meeting of OPEC+ producers on Monday. The Brent crude price rose by US97 cents or 1.2% to US$79.28 a barrel. The US Nymex crude price rose by US85 cents or 1.1% to US$75.88 a barrel.

Base metal prices were mixed on Friday. Tin, zinc and aluminium fell up to 0.6%. Other metals rose up to 2.9% with lead up the most.

Among Indian ADR, Wipro added 1.25% to $8.94, INFOSYS added 0.36% to $22.33, Dr Reddys Labs added 1.83% to $66.33, Vedanta added 1.31% to $15.48, WNS Holdings rose 1.5% to $83.03, HDFC Bank rose 0.85% to $73.71, ICICI Bank grew 0.37% to $18.94, and Tata Motors added 1.65% to $22.78.

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