Four record closes to start the week
08-Feb-21 16:15 ET
Dow +237.52 at 31385.76, Nasdaq +131.35 at 13987.65, S&P +28.76 at 3915.59
briefing.com
[BRIEFING.COM] Each of the major indices set intraday and closing record highs on Monday, with the S&P 500 advancing 0.7% for its sixth straight gain and surpassing the 3900 level for the first time. The Nasdaq Composite (+1.0%) and Dow Jones Industrial Average (+0.8%) performed slightly better, while the Russell 2000 (+2.5%) pulled ahead with a 2.5% gain.
The positive bias started in the futures market after Treasury Secretary Yellen said on Sunday that the economy can reach full employment in 2022 if a stimulus bill is passed, which is two years sooner than the projection issued from the Congressional Budget Office last week.
This observation fueled the so-called recovery trade in which value, cyclical, and small-cap stocks outperform due to expectations for improved economic, and earnings, growth. The S&P 500 energy sector (+4.2%) rallied another 4%, further aided by higher oil prices ($57.97/bbl, +1.08, +1.9%) and Exxon Mobil (XOM 52.09, +2.14, +4.3%) receiving an upgrade to Neutral from Underperform at Exane BNP Paribas.
The financials (+1.2%), information technology (+1.0%), and industrials (+0.9%) sectors follows suit with gains of about 1%, while the utilities sector (-0.8%) was the only group that closed in negative territory.
Tesla (TSLA 863.42, +11.19, +1.3%) provided key support for the consumer discretionary sector (+0.4%) after disclosing a $1.5 billion investment in bitcoin with plans to accept the cryptocurrency as a payment option, subject to applicable laws.
The price of bitcoin spiked more than 15% to fresh all-time highs following the news, and stocks with bitcoin exposure like NVIDIA (NVDA 577.55, +33.91, +6.2%), PayPal (PYPL 282.17, +12.73, +4.7%), and MicroStrategy (MSTR 1041.00, +235.00, +29.2%) posted noticeable gains. NVIDIA also benefited from an appreciation that the chip industry is overwhelmed with strong demand.
U.S. Treasuries finished mixed after investors bought the early weakness in longer-dated maturities. The 2-yr yield increased two basis points to 0.11%, while the 10-yr yield decreased one basis point to 1.16% after touching 1.20% at its intraday high. The U.S. Dollar Index decreased 0.1% to 90.96.
Investors did not receive any economic data on Monday. Looking ahead, investors will receive the NFIB Small Business Optimism Survey for January and the JOLTS - Job Openings report for December on Tuesday.
- Russell 2000 +16.0% YTD
- Nasdaq Composite +8.5% YTD
- S&P 500 +4.3% YTD
- Dow Jones Industrial Average +2.6% YTD
Market Snapshot
| Dow | 31385.76 | +237.52 | (0.76%) | | Nasdaq | 13987.65 | +131.35 | (0.95%) | | SP 500 | 3915.59 | +28.76 | (0.74%) | | 10-yr Note | 0/32 | 1.168 |
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| | NYSE | Adv 2311 | Dec 875 | Vol 970.5 mln | | Nasdaq | Adv 3048 | Dec 901 | Vol 8.3 bln |
Industry Watch
| Strong: Energy, Financials, Information Technology, Industrials |
| | Weak: Utilities, Real Estate, Health Care |
Moving the Market
-- Record-setting session for all four major indices
-- Growth optimism, positive momentum
-- Treasury Secretary Yellen said economy can reach full employment in 2022 if stimulus bill is passed
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Energy stocks rise with oil prices
08-Feb-21 15:30 ET
Dow +164.67 at 31312.91, Nasdaq +84.19 at 13940.49, S&P +17.84 at 3904.67
[BRIEFING.COM] The S&P 500 is trading higher by 0.5% and on track to close above the 3900 for the first time ever.
One last look at the S&P sectors shows energy (+4.4%) way out in the lead with a 4% gain as it extends its strong start to the year. The financials sector (+0.9%) is next in line with a 0.9% gain, while the utilities (-0.8%) and health care (-0.1%) sectors trade lower.
WTI crude futures settled the session higher by 1.9%, or $1.08, to $57.97/bbl. |
