The Dow Industrials hit a new all-time high on Monday as strength in materials, financials and industrials drove the index. Selling in popular technology stocks also continued. The Dow was up 0.97 percent and the Russell 2000 Index was up 0.49 percent. The S&P 500 index fell 0.54 percent and the Nasdaq fell 2.41 percent.
Utilities, Finance, and Materials were the industry leaders of the S&P 500 that day as information technology and communications services waned.
SPDR Utilities (XLU) rose 1.41 percent on Monday, SPDR Materials (XLB) rose 1.34 percent, SPDR Financial (XLF) rose 1.28 percent and SPDR Industrial (XLI) rose 1.05 percent. SPDR Communication Services (XLC) declined 1.34 percent and SPDR Technology (XLK) declined 2.42 percent.
One of the major recent additions to the index, Tesla (TSLA) stock hit 5.84 percent on Monday.
The rise in Disney (DIS) shares marked the trail for the Dow as the company rose 6.27 percent that day to close at $ 201.91. California state officials announced that Disney parks could open to the public as early as April this year. This was good news for potential recovery proceeds sooner than expected.
The value ended the reverse of its pandemic underperformance as measured by a pair of Invesco ETFs. Invesco S&P 500 Pure Growth (RPG) has increased up to 30 percent since the pandemic began (measured at its highest price in late February). Invesco S&P 500 Pure Value (RPV) was still down through February. To date, RPG’s profits have dropped to 12.11 percent while RPV is up 14.20 percent.
The continued advances towards economic reopening resulted in daily gains for airlines as well. United Airlines (UAL) and Southwest (SW) stocks rose 7 percent and 6.4 percent, respectively, on Monday. In addition, the shift in plans to return to office jobs in the short term led to a 6.83 percent increase in the shares of commercial office building lessor Vornado Realty (VNO).
Apple (APPL) was down 4.17 percent on Monday as part of the larger rotation of investors away from high-growth stocks towards value. Although Apple shares are up 63.5 percent year over year, they have fallen more than 11 percent since the beginning of the year. Downward pressure on growth stocks like Apple is being driven by higher interest rates.
On Monday, West Texas Intermediate crude oil prices fell slightly by 0.5 percent, trading at $ 64.75 a barrel per day. Oil prices experienced a temporary jolt due to Sunday’s attacks on Saudi Arabian oil sites, but concerns about the impact on supply quickly resolved after production was not impacted. SPDR Energy (XLE) was up 0.12 percent. By the close of trading on Friday, crude oil had gained $ 20 a barrel in 2021.
Gold closed at $ 1,678.80 an ounce on Monday after a slight loss of 1.16 percent or $ 19.70 for the day.
The yield on 10-year Treasury bills ended Monday at 1.59 percent after rising 4.2 basis points. This was the highest closing percentage for the 10 year return for the past 12 months. The Fidelity Corporate Bond (FCOR) was down 0.72 percent, the iShares iBoxx High Yield Corporate Bond (HYG) by 0.73 percent and the iShares iBoxx Investment Grade Corporate Bond (LQD) by 0.93 percent.
The US dollar index appears to have started its rally with another 0.57 percent gain. It developed positively against the euro, the yen and the Chinese yuan. iShares MSCI EAFE (EFA) was down 0.35 percent that day, while iShares MSCI Emerging Markets (EEM) was down 2.69 percent. Chinese tech stocks dominate the top positions in EEM. iShares China Large-Cap (FXI) fell 3.52 percent.
The trade department reported Monday that wholesale inventories were up 1.3 percent compared to January, compared to consensus projections. The 4.9 percent increase in wholesalers’ sales in January, well above consensus expectation of 0.9 percent, shows that consumer demand for goods is growing significantly alongside optimism about improving pandemic conditions.
On Monday morning, the Federal Reserve confirmed a three-month extension of the paycheck protection program through June 30, 2021, as opposed to March 31. This extension applies to loans requested by small businesses under the short-term liquidity program, but for the existing March 31 deadline as the Fed has previously set up additional programs for emergency pandemic facilities due to lower overall demand for these programs.
The National Federation of Independent Business will today release its Small Business Trust Index. Analysts assume that confidence rose in February.
Consumer price inflation will stop on Wednesday. Economists forecast headline inflation 0.4 percent and core CPI 0.2 percent last month. The producer prices are known on Friday. Economists see an increase of 0.4 percent.
The University of Michigan’s expanded consumer sentiment survey for March will be held on Friday. Analysts assume that optimism will increase.
The House of Representatives can vote today on the latest version of the much-anticipated stimulus package, which includes $ 300 weekly unemployment benefits through September, $ 350 billion in state and local assistance, and $ 1,400 direct payments to the USA includes adults who would be phased out per stricter income benchmarks. If the latest version of the Senate stimulus package passed the upcoming House vote on party lines, as expected, President Biden would come under pressure to sign the final bill before federal unemployment benefits expire on March 14.