Wall Street continued to push record-high territory as expectations of a $1.9 trillion stimulus package gained further momentum — and more in Monday’s stock market recap.
Declining coronavirus cases and progress in vaccine rollouts added to the optimism that both U.S. and global recovery will accelerate in the second half of this year. Additionally, corporate earnings have been upbeat, with 80% of the nearly 300 companies on the S&P 500 that have reported numbers topping expectations.
The Russell 2000 zoomed 2.5% while closing on a new all-time high of 2,289.
The Nasdaq was up 1% after finishing on its record high of 13,987.
The Dow advanced 0.8% following the late-day push to 31,386 and new lifetime peak.
The S&P 500 added 0.7% after settling on its fresh record high of 3,915.
Energy showed the most sector strength after surging 4.2% while Financials and Technology were up 1.2% and 1.1%, respectively. Utilities paced sector laggards after falling 0.8%.
Shares of Walt Disney Co. (NYSE: DIS) traded to a new all-time high following a report that two California Assembly Members representing districts were set to co-sponsor a bill that will place all theme parks in the “Orange/ Moderate/ Tier 3” of the state’s COVID-19 Industry Guidance for Amusement Parks and Theme Parks.
The guidance in California Gov. Gavin Newsom’s “Blueprint for a Safer Economy” currently restricts theme parks from reopening until the county they are located in achieves a “Yellow/ Minimal/ Tier 4’ rating. However, the guest limit at parks would still be only 25% and indoor dining establishments would also only operate at 25% capacity.
Fourth-quarter earnings are up 2.5% from the same period last year on 1.5% higher revenues, with 80% beating earnings per share estimates and 78% beating revenue estimates.
Looking at the fourth quarter as a whole, total earnings for the S&P 500 are expected to be up 0.4% on 2% higher revenues following a -7% earnings decline for Q3 2020 on -0.6% lower revenues.
From the global stock market recap, European markets settled mostly higher.
France’s CAC 40 and the UK’s FTSE 100 rose 0.5% while the Stoxx 600 climbed 0.3%. Germany’s DAX 30 added 3 points, or 0.03%. The Belgium20 slipped just over a point, or 0.04%.
Asian markets also closed mostly higher.
Japan’s Nikkei jumped 2.1% and China’s Shanghai soared 1%. Australia’s S&P/ASX 200 gained 0.6% and Hong Kong’s Hang Seng edged up 0.1%. South Korea’s Kospi fell 0.9%.
No major announcements.
The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) snapped a four-session slide after trading to a morning high of $149.26. Fresh and lower resistance at $149-$149.50 was cleared but held. A move above the latter would indicate strength towards $150.50-$151.
Support is at $148-$147.50.
The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) was up for the first time in six sessions with the high tapping 22.07. Lower resistance at 22-22.50 was breached but held. A close above the latter would signal a retest towards 23-23.50 and the 50-day moving average.
Support is at 21-20.50 with a more important hurdle at the 20 level.
The Invesco QQQ Trust (Nasdaq: QQQ) extended its winning streak to three sessions after testing a fresh all-time high of $333.74. Unchartered territory and lower resistance at $333.50-$334 was cleared and held. A close above the latter would suggest ongoing momentum towards $335.50-$336.
Rising support is at $332-$331.50 followed by $330-$329.50.
RSI (relative strength indicator) remains in a slight uptrend with key resistance at 65 getting recovered. Continued closes above 65 would signal additional strength towards 70 and a level that has been holding since early December. Support is at 60-55.
The SPDR Gold Shares (NYSE: GLD) was up for the second straight session after surging to a morning peak of $172.40. New and lower resistance at $172-$172.50 was breached but held. A close above the latter would signal a run towards $173.50-$174 and the 200/50-day moving averages.
Support is at $171.50-$171 followed by $170-$169.50.
RSI is in an uptrend with lower resistance at 45-50 getting cleared and holding. A close above the latter would suggest additional strength towards 55-60. Support is at 40-35.
Check back after the closing bell for the most important news and numbers in the WealthPress stock market recap.