Retail sales surged 9.8% in March as additional stimulus sent consumer spending soaring, the Commerce Department reported Thursday. That number topped the Dow Jones estimate of a 6.1% gain.
A separate report on Thursday showed that first-time filings for unemployment insurance dropped to the lowest level since March 2020. The Labor Department reported 576,000 new jobless claims for the week ended April 10. Economists polled by Dow Jones expected a total of 710,000.
Shares of Citigroup climbed more than 2% after the bank posted results that beat analysts’ estimates for first-quarter profit with strong investment banking revenue and a bigger-than-expected release of loan-loss reserves.
Bank of America shares rose as earnings last quarter blew past the Street on booming trading and investment banking results as well the release of loan-loss reserves. The shares gained 1%.
The market has been grinding higher to reach new records in recent sessions amid the economic reopening and trillions of dollars in stimulus. The S&P 500 has gained nearly 10% in 2021 with energy and financials being the two best winning sectors.
“I am incredibly bullish on the markets, and you are right to be worried about our deficits,” Larry Fink, BlackRock CEO, said in an interview on “Squawk Box.” “If we don’t have economic growth that is sustainable over the next 10 years — our deficits are going to matter and they are going to elevate interest rates … I believe because of monetary stimulus, fiscal stimulus, cash on the sidelines, earnings, markets are okay. Markets are going to continue to be stronger.”
Pepsi shares added 0.6% after the consumer snack and drink maker said sales last quarter rose nearly 7%, topping estimates.
Shares of UnitedHealth, a Dow member, gained 1% after results topped the Street and the health insurer raised guidance for 2021.
Tech stocks rebounded from Tuesday losses in early trading with shares of Tesla up about 1%. Newly public crypto exchange Coinbase jumped 9% in early trading after it was revealed Ark Invest’s Cathie Wood loaded up on the first day of trading.
On Tuesday, the Food and Drug Administration called for a pause in administering J&J’s Covid-19 vaccine after six people in the U.S. developed a rare disorder involving blood clots. The announcement triggered a sell-off in reopening plays earlier in the week, but is not expected to have a material impact on the pace of the U.S. vaccine rollout.
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Read More: Dow is set to jump by 200 points at the open after retail sales boom by nearly 10% in March