New closing highs for Nasdaq and Russell 2000
09-Feb-21 16:15 ET
Dow -9.93 at 31375.83, Nasdaq +20.06 at 14007.71, S&P -4.36 at 3911.23 https://www.briefing.com/stock-market-update
[BRIEFING.COM] Each of the major indices set intraday record highs on Tuesday, but only the Nasdaq Composite (+0.1%) and Russell 2000 (+0.4%) closed at record highs. The S&P 500 (-0.1%) and Dow Jones Industrial Average (-0.03%) snapped their six-session winning streaks with fractional declines.
Today's price action suggested the market was consolidating its February rally in which the S&P 500 rallied more than 5% in the prior six trading sessions. Most sectors flipped between modest gains and losses today, except for the energy sector (-1.5%), which declined 1.5%.
The materials (-0.7%) and consumer discretionary (-0.6%) sectors also underperformed, while the real estate (+0.5%) and communication services (+0.2%) sectors showed relative strength. Broader selling interest was muted, as investors respected the positive macro factors in the market.
To rehash, these factors included increasing COVID-19 vaccination rates and decreasing infection/hospitalization rates, low interest rates, optimism surrounding another fiscal stimulus bill, and better-than-expected earnings reports.
Take-Two Interactive (TTWO 200.31, -13.03, -6.1%) and DuPont (DD 73.48, -2.28, -3.0%) were among the latest companies to exceed earnings expectations and issue upbeat guidance, but the reactions were disappointing. Nucor (NUE 54.68, +0.98, +1.8%) raised Q1 EPS guidance well above consensus estimates due to positive economic trends and robust demand in the steel industry.
Separately, Electronic Arts (EA 146.11, +3.65, +2.6%), a competitor to TTWO, announced plans to acquire Glu Mobile (GLUU 12.67, +3.28, +34.9%) for $12.50/share in a cash deal worth $2.1 billion in enterprise value. The deal was a 36% premium to GLUU's closing price on Feb. 5.
U.S. Treasuries finished little changed in a tight-ranged session. The 2-yr yield increased one basis point to 0.12%, and the 10-yr yield finished flat at 1.16%. The U.S. Dollar Index fell 0.5% to 90.46. WTI crude futures increased 0.7%, or $0.38, to $58.35/bbl.
Reviewing Tuesday's economic data:
Job openings increased to 6.646 million in December from a revised 6.572 million in November (from 6.527 million).
The NFIB Small Business Optimism Index decreased to 95.0 in December from 95.9 in November.
Looking ahead, investors will receive the Consumer Price Index for January, the Treasury Budget for January, Wholesale Inventories for December, and the MBA Mortgage Applications Index on Wednesday.
Russell 2000 +16.4% YTD
Nasdaq Composite +8.7% YTD
S&P 500 +4.1% YTD
Dow Jones Industrial Average +2.5% YTD
Dow 31375.83 -9.93 (-0.03%)
Nasdaq 14007.71 +20.06 (0.14%)
SP 500 3911.23 -4.36 (-0.11%)
10-yr Note +1/32 1.154
NYSE Adv 1854 Dec 1342 Vol 892.0 mln
Nasdaq Adv 2300 Dec 1625 Vol 8.6 bln
Strong: Real Estate, Communication Services, Industrials
Weak: Energy, Materials, Consumer Discretionary
Moving the Market
-- Major indices set intraday all-time highs, Nasdaq and Russell 2000 close at new highs
-- Consolidation activity
-- Respecting the positive trend
WTI crude futures settle higher, but energy stocks cool down
09-Feb-21 15:25 ET
Dow +12.95 at 31398.71, Nasdaq +29.90 at 14017.55, S&P -0.89 at 3914.70
[BRIEFING.COM] The S&P 500 is trading flat, while the Russell 2000 is up 0.5% and well on its way to close at another record high.
One last look at the S&P sectors shows energy down 1.4% and materials down 0.5%. On the positive side, the communication services (+0.5%) and real estate (+0.3%) sectors outperform with modest gains.
WTI crude futures settled higher by 0.7%, or $0.38, to $58.35/bbl.