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Record closes for the S&P 500 and Nasdaq
25-Jan-21 16:15 ET
Dow -36.98 at 30960.00, Nasdaq +92.93 at 13636.00, S&P +13.89 at 3855.36

https://www.briefing.com/stock-market-update

[BRIEFING.COM] The S&P 500 (+0.4%) and Nasdaq Composite (+0.7%) closed at record highs on Monday in a volatile session, as gains in the mega-caps and other defensive-oriented stocks outweighed losses in cyclical stocks. The Dow Jones Industrial Average (-0.1%) and Russell 2000 (-0.3%) closed in the red but off session lows.

The session started on a hot note, with shares of Apple (AAPL 142.92, +3.86, +2.8%) and Tesla (TSLA 880.80, +34.16, +4.0%) leading the mega-cap charge as analysts raised their price targets ahead of their earnings reports this week, and stocks with high short-interest positions like GameStop (GME 76.79, +11.78, +18.1%) continued to squeeze short sellers. GME shares were up 145% at one point today.

At their intraday morning highs, the S&P 500 was up 0.5%, the Nasdaq was up 1.4%, and the Russell 2000 was up 1.2% at an all-time high. The Dow was never positive. The major indices, however, quickly took a relatively precipitous fall into negative territory on no specific news catalyst, suggesting a profit-taking motive among investors.

True to recent usual form, investors bought the intraday dip, but generally preferred to stick with most of the mega-cap names and lower-beta stocks within the S&P 500 utilities (+2.0%), consumer staples (+0.9%), real estate (+0.8%), and health care (+0.7%) sectors. The information technology sector rose 0.9%.

The cyclical energy (-1.1%), financials (-0.8%), industrials (-0.7%), and materials (-0.5%) sectors finished lower amid news that President Biden's $1.9 trillion stimulus deal is facing bipartisan resistance and could be pushed back to mid-March. The latter was an observation from Senate Majority Leader Schumer.

Lingering recovery concerns contributed to increased demand for longer-dated Treasuries, which caused some curve-flattening activity that pressured the financials space. The 10-yr yield fell five basis points to 1.04%, versus a flat reading on the 2-yr yield (0.12%). The U.S. Dollar Index increased 0.2% to 90.37. WTI crude futures rose 0.8%, or $0.44, to $52.77/bbl.

In other developments, Moderna (MRNA 147.00, +15.98, +12.2%) said its COVID-19 vaccine does protect against the variants that originated in the UK and South Africa, President Biden signed an executive order aimed at restoring the competitiveness of domestic manufacturers, and California Governor Newsom confirmed that the stay-at-home order has been removed in all regions.

Investors did not receive any notable economic data on Monday. Looking ahead, the Consumer Confidence Index for January, the S&P Case-Shiller Home Price Index for November, and the FHFA Housing Price Index for January will be released on Tuesday.

Russell 2000 +9.5% YTD
Nasdaq Composite +5.8% YTD
S&P 500 +2.6% YTD
Dow Jones Industrial Average +1.2% YTD

Market Snapshot
Dow 30960.00 -36.98 (-0.12%)
Nasdaq 13636.00 +92.93 (0.69%)
SP 500 3855.36 +13.89 (0.36%)
10-yr Note +6/32 1.030
NYSE Adv 1309 Dec 1857 Vol 1.2 bln
Nasdaq Adv 1792 Dec 1973 Vol 7.0 bln

Industry Watch
Strong: Consumer Staples, Utilities, Real Estate, Health Care
Weak: Energy, Financials, Industrials

Moving the Market

-- Positive start rolls over amid no specific catalysts, but investors are buying the dip

-- Short-squeeze continues in speculative stocks

-- Value and cyclical stocks underperform

Crude futures settle on higher note
25-Jan-21 15:25 ET
Dow -124.91 at 30872.07, Nasdaq +29.86 at 13572.93, S&P +0.86 at 3842.33

[BRIEFING.COM] The S&P 500 is trading little changed ahead of a busy rest of the week, which will include key earnings reports and a Fed policy decision on Wednesday.

One last look at the S&P 500 sectors shows utilities (+1.6%), real estate (+0.9%), and consumer staples (+0.8%) outperforming in positive territory, while the energy (-1.5%), materials (-1.0%), and financials (-0.8%) sectors continue to lag in negative territory.

WTI crude futures settled higher by 0.8%, or $0.44, to $52.77/bbl.