A decline in bond yields boosted technology stocks on Monday as trades still respond to changes in interest rates. The 10-year Treasury yield closed at 1.68 percent on Monday.
The S&P 500 rose 0.70 percent that day, the Nasdaq 1.23 percent and the Dow 0.32 percent. The Russell 2000 Small Cap Index, however, was down slightly after a recent winning streak, losing 0.91 percent on Monday for the day.
Tech stocks led the week on a boost as Apple (APPL) shares closed 2.83 percent at $ 123.39 and Microsoft (MSFT) closed 2.45 percent at $ 235.99. SPDR technology (XLK) rose 1.97 percent on Monday. The Invesco QQQ Trust ETF (QQQ) gained 1.75 percent. The innovator IBD 50 (FFTY) also gained 0.2 percent on that day.
SPDR Consumer Staples (XLP) rose 1.06 percent and SPDR Healthcare (XLV) rose 0.87 percent.
SPDR Financial (XLF) fell 1.29 percent and SPDR Energy (XLE) 0.96 percent on Monday. The former had risen with interest rates and the latter with inflation expectations. In the past six weeks alone, XLF was at its peak 18 percent and XLE 35 percent, compared to just 4 percent for the S&P 500 index.
For big banks, JPMorgan Chase (JPM) shares fell 2.69 percent on Monday to close at $ 150.97. Goldman Sachs (GS) shares also fell 1.41 percent to trade at $ 339.33.
Crude oil prices rose slightly on Monday, climbing 0.08 percent to $ 61.47 a barrel.
Lower interest rates have boosted bonds across the board. iShares 20+ Year Treasury (TLT) rose 1.11 percent, iShares iBoxx High Yield Corporate Bond (HYG) rose 0.36 percent, iShares iBoxx Investment Grade Corporate Bond (LQD) rose 0.36 percent and Fidelity Corporate Bond ( FCOR) by 0.38 percent.
Monday’s Federal Reserve data on major bank loans for the past month showed home and business loans as a percentage of banks’ total assets hit record lows. The big US banks remain cash-rich, and the total assets of the top 25 US banks grew 0.8 percent.
Tesla, Inc. (TSLA) shares rose 2.31 percent Monday to trade at $ 670.00 after rising over 6 percent during the day on news of increased targets for Tesla stock prices, based on significant opportunities for the electric car maker in the autonomous driving subsector.
The industry did well that day. Kansas City Southern (KSU) led the way on Monday, stocks rising 11.12 percent to close at $ 249.09 after Canadian Pacific Railway (CP) announced its acquisition of the US company, the largest Canadian purchase of an American Company represents ($ 25 billion) over the past five years.
The US dollar index spot rose a total of 0.09 percent to around 91.84 throughout the day.
Data released Monday by the National Association of Realtors (NAR) showed a 6.6 percent decline in sales of existing homes last month. That was below consensus expectation for February of just 2.8 percent of a decline. A shrinking portfolio of existing properties listed on the market is partly contributing to the cooling of sales compared to the previous months and is still exceeding the numbers before the pandemic.
For the coming week, the Treasury will auction two-, five- and seven-year bonds. February personal income and expenses are due on Friday. The US Energy Information Administration will release updates on crude oil supplies on Wednesday. Jerome Powell, Chairman of the Fed, and Janet Yellen, Secretary of the Treasury, will testify to their department’s pandemic policy in a joint appearance this Tuesday.
Flash Manufacturing and Services PMIs are expected to see an improvement in economic conditions in March. On Thursday, the Bureau of Economic Analysis’s third estimate of fourth-quarter GDP should match its previous estimate of 4.1 percent.
Companies reporting profits this week include General Mills (GIS), KB Home (KBH), Adobe Systems (ADBE), Darden Restaurants (DRI), and Seabridge Gold (SA).