Market retraces some of Monday's rally
02-Mar-21 16:20 ET
Dow -143.99 at 31391.52, Nasdaq -230.04 at 13358.81, S&P -31.53 at 3870.29
briefing.com
[BRIEFING.COM] The S&P 500 declined 0.8% on Tuesday, retracing some of yesterday's rally, as the market struggled to attract follow-through buyers. The Dow Jones Industrial Average declined 0.5%, while the Nasdaq Composite (-1.7%) and Russell 2000 (-1.9%) fell more than 1.5%.
Most of the 11 S&P 500 sectors wavered between gains and losses today, but ten of them closed in negative territory amid a weak finish. The information technology (-1.6%) and consumer discretionary (-1.3%) sectors were influential laggards throughout the session, while the materials sector (+0.6%) was the one sector that closed higher. The Philadelphia Semiconductor Index fell 3.1%.
The disappointing price action in Zoom Video (ZM 372.79, -36.87, -9.0%) following its better-than-expected earnings report and upbeat guidance was cited as a profit-taking influence for the technology/growth stocks. ZM shares dropped 9% after starting the day higher by more than 7%. C3.ai (AI 98.50, -22.55, -18.6%), a smaller growth stock, dropped 19% after earnings.
Target (TGT 173.49, -12.60, -6.8%) had similar price action to Zoom, with shares giving up an early 4% gain and closing lower by 7% despite reporting strong quarterly results.
Other headwinds for the market included technical resistance at the 3900 level for the S&P 500, media reports continuing to highlight emerging coronavirus variants, and their potential resistance to vaccines, and China's top banking regulator warning about elevated valuations of global equity markets.
The Covid-variant reports might have overshadowed news that businesses in Texas will open at 100% capacity and that indoor dining in Chicago will expand to 50% capacity from 40%. Regrading valuations, Fed Governor Brainard (FOMC voter) acknowledged that are some signs of stretched asset valuations, but she didn't think they are broad-based.
Ms. Brainard added that last week's slide in Treasuries caught her eye and that conditions for tapering bond purchases will not be met for "some time." Longer-dated Treasury yields continued to pull back from last week's levels.
The 10-yr yield decreased three basis points to 1.42%, while the 2-yr yield was unchanged at 0.12%. The U.S. Dollar Index decreased 0.3% to 90.77. WTI crude futures decreased 1.2%, or $0.75, to $59.79/bbl.
Investors did not receive any economic data of note on Tuesday. Looking ahead to Wednesday, investors will receive the ISM Non-Manufacturing Index for February, the ADP Employment Change report for February, the final IHS Markit Services PMI for February, the Fed's Beige Book for March, and the weekly MBA Mortgage Applications Index.
- Russell 2000 +13.0% YTD
- Nasdaq Composite +3.7% YTD
- S&P 500 +3.0% YTD
- Dow Jones Industrial Average +2.6% YTD
Market Snapshot
| Dow | 31391.52 | -143.99 | (-0.46%) | | Nasdaq | 13358.81 | -230.04 | (-1.69%) | | SP 500 | 3870.29 | -31.53 | (-0.81%) | | 10-yr Note | 0/32 | 1.427 |
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| | NYSE | Adv 1359 | Dec 1839 | Vol 1.2 bln | | Nasdaq | Adv 1131 | Dec 2846 | Vol 4.9 bln |
Industry Watch
| Strong: Energy, Materials, Financials |
| | Weak: Information Technology, Utilities, Real Estate |
Moving the Market
-- Stock market eases back from yesterday's rally amid profit-taking pressure
-- Relative weakness in the technology stocks following disappointing price action in Zoom Video (ZM) after earnings
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WTI crude futures settle back below $60 per barrel
02-Mar-21 15:25 ET
Dow -47.11 at 31488.40, Nasdaq -170.37 at 13418.48, S&P -15.53 at 3886.29
[BRIEFING.COM] The S&P 500 is trading lower by 0.4%, while the Russell 2000 underperforms with a 1.1% decline.
One last look at the S&P sectors shows information technology (-1.2%) and consumer discretionary (-0.9%) leading the benchmark index lower, while the materials (+1.1%), consumer staples (+0.3%), and financials (+0.2%) sectors continue to sport gains.
WTI crude futures settled lower by 1.2%, or $0.75, to $59.79/bbl. |
