Nasdaq closes at record high in range-bound session
11-Feb-21 16:20 ET
Dow -7.10 at 31430.70, Nasdaq +53.24 at 14025.79, S&P +6.50 at 3916.38 https://www.briefing.com/stock-market-update
[BRIEFING.COM] The major indices closed mixed and little changed on Thursday in a range-bound session. The Nasdaq Composite (+0.4%) closed at a record high with a 0.4% gain, the S&P 500 (+0.2%) and Russell 2000 (+0.1%) eked out smaller gains, and the Dow Jones Industrial Average (-0.02%) closed fractionally lower after setting an all-time high early in the day.
The session started modestly higher, as the market remained influenced by a fear of missing out on further gains, positive momentum, and lingering growth optimism. The market then slipped into negative territory amid some profit-taking pressure, but the large-cap indices never went below yesterday's lows.
Red-hot stocks within the energy, small-cap, and micro-cap sectors were hit the hardest on the way down before investors classically bought the dip. For reference, the iShares Micro-Cap ETF (IWC 150.73, -0.63, -0.4%) declined 0.4% after being down 2.0% intraday, and the S&P 500 energy sector declined 1.5% after being down 3.6% intraday. The S&P 500 was down 0.5% at its low.
The top-weighted S&P 500 information technology sector (+1.1%) was a steady support for the market amid strength in payment companies and semiconductor companies. The Philadelphia Semiconductor Index advanced 3.5%.
Tech heavyweight MasterCard (MA 342.87, +8.66, +2.6%) and Bank of New York Mellon (BK 42.13, +0.39, +0.9%) will reportedly incorporate cryptocurrencies into their businesses. Separately, bullish analyst commentary about NAND prices out of Morgan Stanley helped spur the semiconductor gains.
Notably, Tilray (TLRY 32.16, -31.75, -49.7%) and other cannabis stocks did not benefit from a buy-the-dip mindset. The space was hit hard throughout the day in an unwind of the so-called Reddit trade.
In other corporate news, PepsiCo (PEP 134.97, -2.73, -2.0%), Uber (UBER 60.71, -2.47, -3.9%), and Zillow (ZG 200.60, +28.89, +16.8%) traded mixed following their earnings reports. Kraft Heinz (KHC 35.54, +1.65, +4.9%) agreed to sell its nuts business to Hormel Foods (HRL 48.18, -1.65, -3.3%) for $3.35 billion in cash. Bumble (BMBL 70.31, +27.31, +63.5%) had a hot public debut.
U.S. Treasuries finished on a lower note, pushing most yields higher. The 2-yr yield increased one basis point to 0.11%, and the 10-yr yield increased three basis points to 1.16%. The U.S. Dollar Index was little changed at 90.40. WTI crude futures decreased 0.8%, or $0.48, to $58.23/bbl.
Reviewing Thursday's economic data:
Initial claims decreased by 19,000 to 793,000 (Briefing.com consensus 750,000) in the week ending February 6 following an upward revision to 812,000 (from 779,000) for the prior week. Continuing claims for the week ending January 30 decreased by 145,000 to 4.545 million following an upward revision to 4.690 million (from 4.592 million) for the prior week.
The key takeaway from the report is unchanged: the labor market is not in a good place and that will necessitate additional stimulus measures.
Looking ahead, investors will receive the preliminary University of Michigan Index of Consumer Sentiment for February on Friday.
Russell 2000 +15.6% YTD
Nasdaq Composite +8.8% YTD
S&P 500 +4.3% YTD
Dow Jones Industrial Average +2.7% YTD
Dow 31430.70 -7.10 (-0.02%)
Nasdaq 14025.79 +53.24 (0.38%)
SP 500 3916.38 +6.50 (0.17%)
10-yr Note +2/32 1.139
NYSE Adv 1477 Dec 1719 Vol 1.0 bln
Nasdaq Adv 1768 Dec 2199 Vol 10.7 bln
Strong: Information Technology
Weak: Energy, Utilities, Communication Services
Moving the Market
-- Major indices trade mixed and little changed
-- Relative strength in technology stocks
-- Energy stocks and small-caps underperform
WTI crude futures settle lower, energy stocks underperform
11-Feb-21 15:25 ET
Dow -38.58 at 31399.22, Nasdaq +31.15 at 14003.70, S&P +1.65 at 3911.53
[BRIEFING.COM] The S&P 500 is back in the green with a 0.1% gain after being down 0.5% around midday.
One last look at the sector performances shows materials (+0.2%) and health care (+0.1%) joining the information technology sector (+0.9%) in the green. The energy sector remains the weakest link with a 2.0% decline, followed by utilities (-0.7%).
WTI crude futures settled lower by 0.8%, or $0.48, to $58.23/bbl.