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Stock market closes higher in broad-based advance
02-Feb-21 16:15 ET
Dow +475.90 at 30687.81, Nasdaq +209.38 at 13612.78, S&P +52.41 at 3826.27

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

[BRIEFING.COM] The S&P 500 gained 1.4% on Tuesday in a broad-based advance, bringing its two-day gain to 3.0%. The Dow Jones Industrial Average (+1.6%) and Nasdaq Composite (+1.6%) edged out the benchmark index in terms of performance, while the Russell 2000 gained 1.2%.

All 11 S&P 500 sectors contributed to the advance, including the financials (+2.5%), industrials (+2.2%), and consumer discretionary (+2.0%) sectors with at least 2.0% gains. The health care (+0.3%) and real estate (+0.4%) sectors lagged with more modest gains.

The cyclical leadership suggested investors continued to bet on an economic recovery, supported by increasing vaccination rates and expectations for additional fiscal stimulus. The cratering in shares of GameStop (GME 90.00, -135.00, -60.0%) and AMC Entertainment (AMC 7.82, -5.48, -41.2%) was cited as a positive factor that helped guide investors back to the bigger economic picture.

In addition, UPS (UPS 160.26, +4.00, +2.6%) and Exxon Mobil (XOM 45.63, +0.71, +1.6%) highlighted the batch of better-than-expected earnings reports, and Amazon (AMZN 3380.00, +37.12, +1.1%) and Alphabet (GOOG 1927.51, +26.16, +1.4%) finished higher ahead their earnings reports after the close.

Shares of Pfizer (PFE 34.99, -0.81, -2.3%), on the other hand, declined 2.3% after the Dow component came up short of EPS expectations. Note, Pfizer did beat revenue estimates, issued upbeat FY21 guidance, and provided positive-sounding vaccine delivery commentary.

In other corporate news, AstraZeneca's (AZN 50.06, -0.34, -0.7%) COVID-19 vaccine was 82.4% effective with 3-month intervals used in UK trials, Uber (UBER 56.46, +3.70, +7.0%) agreed to acquire Drizly for approximately $1.1 billion in cash and stock, and Dell (DELL 77.17, +3.22, +4.4%) was upgraded to Buy from Neutral at Goldman.

Longer-dated U.S. Treasuries succumbed to selling pressure amid the positive outing in stocks and renewed growth optimism. The 10-yr yield increased three basis points to 1.11%, and the 2-yr yield remained unchanged at 0.11%. The U.S. Dollar Index increased 0.1% to 91.07. WTI crude futures rose 2.3%, or $1.21, to $54.77/bbl.

Investors did not receive any economic data on Tuesday. Looking ahead to Wednesday, investors will receive the ADP Employment Change Report for January, the ISM Non-Manufacturing Index for January, the final IHS Markit Services PMI for January, and the weekly MBA Mortgage Applications Index.

Russell 2000 +8.9% YTD
Nasdaq Composite +5.6% YTD
S&P 500 +1.9% YTD
Dow Jones Industrial Average +0.3% YTD

Market Snapshot
Dow 30687.81 +475.90 (1.58%)
Nasdaq 13612.78 +209.38 (1.56%)
SP 500 3826.27 +52.41 (1.39%)
10-yr Note -24/32 1.107
NYSE Adv 2406 Dec 754 Vol 1.1 bln
Nasdaq Adv 2826 Dec 1009 Vol 7.1 bln

Industry Watch
Strong: Energy, Industrials, Financials, Consumer Discretionary
Weak: Real Estate

Moving the Market

-- Stocks extend rebound rally

-- Broad-based gains led by cyclical stocks and blue-chip companies

-- Short-squeeze stocks crater

WTI crude futures gain more than 2%
02-Feb-21 15:25 ET
Dow +568.01 at 30779.92, Nasdaq +230.94 at 13634.34, S&P +63.14 at 3837.00

[BRIEFING.COM] The S&P 500 continues to trade higher by 1.7% and has nearly recouped all of last week's decline, including yesterday's gain.

One last look at the S&P 500 sectors shows green across the board. The financials (+2.7%), consumer discretionary (+2.4%), and industrials (+2.6%) sectors continue to lead the market higher with gains over 2.0%, while the real estate (+0.7%) and health care (+0.8%) sectors continue to underperform with more modest gains.

WTI crude futures settled higher by 2.3%, or $1.21, to $54.77/bbl amid the general growth optimism in the market.
Harley-Davidson and Cirrus Logic fall after earnings
02-Feb-21 14:55 ET
Dow +580.46 at 30792.37, Nasdaq +244.07 at 13647.47, S&P +66.72 at 3840.58

[BRIEFING.COM] The S&P 500 continues to trade at session highs with a 1.8% gain. The Russell 2000 underperforms with a 1.2% gain.

It's a good day for sure, but not all stocks are rising with the tide. Besides the short-squeeze stocks, shares of Harley-Davidson (HOG 33.15, -7.00, -17.4%) and Cirrus Logic (CRUS 91.21, -6.65, -6.8%) are down 17% and 7%, respectively, following their earnings reports.

Harley missed Q4 estimates, while Cirrus reported in-line quarterly guidance that reportedly disappointed investors.

As a reminder, Amazon (AMZN 3416.29, +73.43, +2.2%) and Alphabet (GOOG 1937.86, +36.51, +1.9%) will report earnings after the close.