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U.S. stock markets closed mostly higher on Tuesday, recovering from sharp intraday losses, after comments from the U.S. Federal Reserve Chair eased concerns on higher interest rates and inflation. Moreover, market participants remained watchful of the progress the $1.9 trillion fiscal relief bill. The Dow and the S&P 500 closed the day in green while the Nasdaq Composite ended the day in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.1%, closing at 31,537.35, continuing its three-day winning streak. Notably, 16 components of the 30-stock index ended in green while 14 finished the day in red. Major gainer of the Dow was The Walt Disney Company (DIS - Free Report) that gained 2.8%. Notably, Disney has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq Composite closed the day at 13,465.20, down 0.5%, marking the second consecutive day of losses, on the back of weak performance by large-cap technology stocks. The S&P 500 rose 0.1%, closing the day at 3,881.37, snapping five successive days of losses. The Energy Select Sector SPDR (XLE) and the Utilities Select Sector SPDR (XLU) gained 1.7% and 0.8%, respectively. Notably, eight out of eleven sectors of the benchmark index closed in the positive zone and three in the red.
The fear-gauge CBOE Volatility Index (VIX) was down 1.5% to 23.11. A total of 16.52 billion shares were traded on Tuesday, higher than the last 20-session average of 16.06 billion. Decliners outnumbered advancers on the NYSE by a 1.59-to-1 ratio. On Nasdaq, a 2.58-to-1 ratio favored declining issues.
Markets Bounce Back After Federal Reserve Chair Eases Concerns
Wall Street bounced back from sharp intraday losses on Tuesday, with the Dow and S&P 500 closing the session in green, after Fed Chair Jerome Powell eased concerns regarding higher interest rates and inflation. Notably, Powell said in his testimony before the Senate Banking Committee that the Fed would be keeping its accommodative stance of monetary policy in place for some time as the economic recovery is “uneven” and “far from complete”. Moreover, Powell said that inflation still remains “soft” and he does not expect a “large or persistent rise.”
Investors Await the Passage of Further Fiscal Stimulus
Investors continued to monitor the passage of the $1.9 trillion fiscal relief bill proposed by President Joe Biden. Toward that end, on Monday, the U.S. House of Representatives Budget Committee approved the $1.9 trillion bill in COVID-19 relief, with a full House vote expected to be carried out later this week.
Economic Data
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all the nine U.S. census divisions, reported an annual gain of 10.4% in December, following 9.5% gain in November. Notably, the 10-City Composite annual increase for December was reported at 9.8%, compared to 8.9% gain in November. Meanwhile, the 20-City Composite increased 10.1% in December on a year-over-year basis, compared to an increase of 9.2% in November.
The Conference Board reported that its Consumer Confidence Index for the month of February improved and came in at 91.3, compared to 88.9 in January which was revised downward from 89.3 reported earlier. The metric surpassed the consensus estimate of 88.8.
The Present Situation Index, which gauges consumers’ views on current market conditions, increased from 85.5 in January to 92.0 in February. Meanwhile, the Expectations Index, which is a measure of consumers’ short-term (for the next six months) outlook for income, business and labor market conditions, fell from 91.2 in January to 90.8 in February.
Cimarex Energy Co.’s shares jumped 9.6% yesterday, following better-than-expected quarterly results on Feb 22. The company reported fourth-quarter 2020 adjusted earnings per share of $0.89, outpacing the Zacks Consensus Estimate of $0.71. (Read More)
Pioneer Natural Resources Company’s (PXD - Free Report) fourth-quarter 2020 earnings per share of $1.07, excluding one-time items, beat the Zacks Consensus Estimate of $0.66. (Read More)
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Shutterstock
Stock Market News for Feb 24, 2021
U.S. stock markets closed mostly higher on Tuesday, recovering from sharp intraday losses, after comments from the U.S. Federal Reserve Chair eased concerns on higher interest rates and inflation. Moreover, market participants remained watchful of the progress the $1.9 trillion fiscal relief bill. The Dow and the S&P 500 closed the day in green while the Nasdaq Composite ended the day in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.1%, closing at 31,537.35, continuing its three-day winning streak. Notably, 16 components of the 30-stock index ended in green while 14 finished the day in red. Major gainer of the Dow was The Walt Disney Company (DIS - Free Report) that gained 2.8%. Notably, Disney has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq Composite closed the day at 13,465.20, down 0.5%, marking the second consecutive day of losses, on the back of weak performance by large-cap technology stocks. The S&P 500 rose 0.1%, closing the day at 3,881.37, snapping five successive days of losses. The Energy Select Sector SPDR (XLE) and the Utilities Select Sector SPDR (XLU) gained 1.7% and 0.8%, respectively. Notably, eight out of eleven sectors of the benchmark index closed in the positive zone and three in the red.
The fear-gauge CBOE Volatility Index (VIX) was down 1.5% to 23.11. A total of 16.52 billion shares were traded on Tuesday, higher than the last 20-session average of 16.06 billion. Decliners outnumbered advancers on the NYSE by a 1.59-to-1 ratio. On Nasdaq, a 2.58-to-1 ratio favored declining issues.
Markets Bounce Back After Federal Reserve Chair Eases Concerns
Wall Street bounced back from sharp intraday losses on Tuesday, with the Dow and S&P 500 closing the session in green, after Fed Chair Jerome Powell eased concerns regarding higher interest rates and inflation. Notably, Powell said in his testimony before the Senate Banking Committee that the Fed would be keeping its accommodative stance of monetary policy in place for some time as the economic recovery is “uneven” and “far from complete”. Moreover, Powell said that inflation still remains “soft” and he does not expect a “large or persistent rise.”
Investors Await the Passage of Further Fiscal Stimulus
Investors continued to monitor the passage of the $1.9 trillion fiscal relief bill proposed by President Joe Biden. Toward that end, on Monday, the U.S. House of Representatives Budget Committee approved the $1.9 trillion bill in COVID-19 relief, with a full House vote expected to be carried out later this week.
Economic Data
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all the nine U.S. census divisions, reported an annual gain of 10.4% in December, following 9.5% gain in November. Notably, the 10-City Composite annual increase for December was reported at 9.8%, compared to 8.9% gain in November. Meanwhile, the 20-City Composite increased 10.1% in December on a year-over-year basis, compared to an increase of 9.2% in November.
The Conference Board reported that its Consumer Confidence Index for the month of February improved and came in at 91.3, compared to 88.9 in January which was revised downward from 89.3 reported earlier. The metric surpassed the consensus estimate of 88.8.
The Present Situation Index, which gauges consumers’ views on current market conditions, increased from 85.5 in January to 92.0 in February. Meanwhile, the Expectations Index, which is a measure of consumers’ short-term (for the next six months) outlook for income, business and labor market conditions, fell from 91.2 in January to 90.8 in February.
Stocks That Have Made Headline
Cimarex Up 9.6% After Q4 Earnings Beat on Gas Prices
Cimarex Energy Co.’s shares jumped 9.6% yesterday, following better-than-expected quarterly results on Feb 22. The company reported fourth-quarter 2020 adjusted earnings per share of $0.89, outpacing the Zacks Consensus Estimate of $0.71. (Read More)
Pioneer Natural Q4 Earnings Top Estimates, Reserves Grow
Pioneer Natural Resources Company’s (PXD - Free Report) fourth-quarter 2020 earnings per share of $1.07, excluding one-time items, beat the Zacks Consensus Estimate of $0.66. (Read More)
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>