Closing Stock Market SummaryEach 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