Closing Stock Market SummaryThe S&P 500 gained 0.8% on Tuesday, reclaiming its decline from last Friday, in an advance led by shares of mega-cap, semiconductor, and energy companies. The Nasdaq Composite (+1.5%) and Russell 2000 (+1.3%) outperformed the benchmark index, while the Dow Jones Industrial Average (+0.4%) posted a smaller gain.
The market was pleased to hear Treasury Secretary nominee Janet Yellen asserting that it's time to "act big" on fiscal stimulus, which outweighed reports suggesting that President-elect Biden's $1.9 trillion package could run into some objections in Congress. She also said during her confirmation hearing that President-elect Biden will not repeal the 2017 tax law while the economy battles the coronavirus.
The S&P 500 energy sector (+2.1%) and Philadelphia Semiconductor Index (+3.4%), which contain economically-sensitive businesses, were among the biggest gainers today. The influential information technology sector advanced 1.3%.
In addition, positive-minded analyst recommendations in stocks like Alphabet (GOOG 1790.86, +54.67, +3.2%), Facebook (FB 261.10, +9.74, +3.9%), and American Express (AXP 126.75, +4.61, +3.8%) supported the cause. The communication services sector, which is home to GOOG and FB, increased 1.9%.
While the AXP boost was nice, the financials sector (+0.4%) was restrained by negative reactions to earnings reports from Bank of America (BAC 32.77, -0.24, -0.7%) and Goldman Sachs (GS 294.20, -6.81, -2.3%). The real estate (-0.5%), consumer staples (-0.4%), and utilities (-0.4%) sectors were the only sectors that closed lower.
U.S. Treasuries recouped overnight losses and finished little changed in front of President-elect Biden's inauguration tomorrow. The 2-yr yield was flat at 0.13%, and the 10-yr yield was flat at 1.09%. The U.S. Dollar Index decreased 0.3% to 90.50. WTI crude futures settled higher by 1.3%, or $0.66, to $52.96/bbl.
Investors did not receive any economic data during Tuesday's session. Looking ahead, investors will receive the MBA Mortgage Applications Index and the NAHB Housing Market Index for January on Wednesday.
- Russell 2000 +8.9% YTD
- Nasdaq Composite +2.4% YTD
- S&P 500 +1.1% YTD
- Dow Jones Industrial Average +1.1% YTD