Dow ekes out closing record high, financial and energy stocks outperformed
16-Feb-21 16:15 ET
Dow +64.35 at 31522.75, Nasdaq -47.97 at 14047.52, S&P -2.24 at 3932.59 https://www.briefing.com/stock-market-update
[BRIEFING.COM] The Dow Jones Industrial Average (+0.2%) eked out a closing record high on Tuesday amid strength in financial and energy stocks. The S&P 500 (-0.1%) and Nasdaq Composite (-0.3%) ended with modest losses after setting all-time highs in early action, while the Russell 2000 (-0.7%) underperformed.
Investors remained optimistic on the economy, evident by the continued selling interest in longer-dated Treasuries, which drove yields noticeably higher. The growth-sensitive 10-yr yield rose ten basis points to 1.30%, while the Fed-sensitive 2-yr yield increased two basis points to 0.12%. The U.S. Dollar Index increased 0.1% to 90.54.
This curve-steepening activity was a boon for the bank stocks within the S&P financials sector (+1.8%). The energy sector advanced the most, though, with a 2.3% gain amid higher oil ($60.09/bbl, +0.62, +1.0%) and gas ($3.13/MMBtu, +0.22, +7.2%) prices after a winter storm left millions of people without power in the U.S.
The communication services sector (+0.4%) also outperformed, as investors continued to bid up shares of companies with digital advertising exposure. Conversely, the utilities (-1.1%), real estate (-1.1%), and health care (-1.0%) sectors declined at least 1.0%.
On the earnings front, shares of CVS Health (CVS 70.53, -3.68, -4.0%), Zoetis (ZTS 166.47, -0.24, -0.1%), and Allegion (ALLE 109.81, -8.45, -7.2%) closed lower despite the companies reporting better-than-expected quarterly results.
In other developments, Democratic senators reportedly hope to bring the fiscal stimulus bill up for a floor vote next week, Reuters reported that OPEC+ will likely ease supply curbs after April of this year amid increase in prices, and Conagra (CAG 33.90, -0.65, -1.9%)/Kraft Heinz (KHC 35.36, -0.03, -0.1%) products may become more expensive as a result of higher raw material costs.
The CBOE Volatility Index increased 7.5% to 21.46 amid an uptick in hedging interest.
Tuesday's economic data was limited to the Empire State Manufacturing Survey, which increased to 12.1 in February (Briefing.com consensus 9.0) from 3.5 in January.
Looking ahead to Wednesday, investors will receive Retail Sales for January, the Producer Price Index for January, Industrial Production and Capacity Utilization for January, the FOMC Minutes, the NAHB Housing Index for February, Business Inventories for December, and the weekly MBA Mortgage Applications Index.
Russell 2000 +15.1% YTD
Nasdaq Composite +9.0% YTD
S&P 500 +4.7% YTD
Dow Jones Industrial Average +3.0% YTD
Dow 31522.75 +64.35 (0.20%)
Nasdaq 14047.52 -47.97 (-0.34%)
SP 500 3932.59 -2.24 (-0.06%)
10-yr Note -27/32 1.264
NYSE Adv 1503 Dec 1720 Vol 1.0 bln
Nasdaq Adv 2091 Dec 1891 Vol 7.5 bln
Strong: Energy, Financials, Communication Services
Weak: Utilities, Real Estate, Health Care, Consumer Discretionary
Moving the Market
-- Dow ekes out closing record high in mixed session
-- 10-yr yield rose to 1.30% amid increased selling interest
-- Continued strength in energy and financial stocks
WTI crude futures settle at $60 per barrel
16-Feb-21 15:30 ET
Dow +75.09 at 31533.49, Nasdaq -42.74 at 14052.75, S&P +0.33 at 3935.16
[BRIEFING.COM] The S&P 500 continues to trade near its flat line. The Russell 2000 is down 0.5%.
One last look at the S&P sectors shows energy (+2.5%) and financials (+2.0%) still leading the market higher with gains of at least 2.0%. The real estate (-1.1%), utilities (-1.0%), and health care (-1.0%) sectors are down at least 1.0%.
WTI crude futures settled higher by 1.0%, or $0.62, to $60.09/bbl.