Stock Market Recap: Thursday, Feb. 18, 2021

Wall Street was weak throughout following a disappointing jobs report, underscoring the incomplete economic recovery amid the ongoing pandemic — and more in Thursday’s stock market recap. 

Additionally, Treasury yields also weighed on sentiment after ticking higher as the benchmark 10-year yield hovered around the one-year high of 1.31%.

Stock Market Recap

The Dow was down 0.4% with the intraday low reaching 31,285.

The S&P 500 also declined 0.4% after testing a morning low of 3,885.

The Nasdaq sank 0.7% following the opening fade to 13,714.

The Russell 2000 tanked 1.7% after tapping a first-half low of 2,208.

Energy and Healthcare led sector weakness after giving back 2.3% and 0.7%, respectively. Utilities and Consumer Discretionary were the only sectors that showed strength after rising 0.6% and 0.04%.

Stock Market Movers

Shares of Twilio Inc. (NYSE: TWLO) rose nearly 8% to a fresh all-time closing high after topping Wall Street earnings forecasts. The company reported a fourth-quarter profit of four cents a share, versus forecasts for a loss of eight cents. Revenue of $548.1 million was also above expectations of $454.75 million.

There were 11 analysts that raised their price targets for the stock, including nine above the $500 level.

Stock Market Outlook 

The AAII Sentiment Survey revealed bullish sentiment closed at 47% last week. Optimism was above its historical average of 38% for the second straight week.

Neutral sentiment was at 27.6% and below its historical average of 30.5% for the sixth straight week.

Bearish sentiment was seen at 25.4%. Pessimism was below its historical average of 31.5% for the second straight week.

Global Economy

From the global stock market recap, European markets closed lower across the board.

The Belgium20 stumbled 1.6% and the U.K.’s FTSE 100 dropped 1.4%. The Stoxx 600 was lower by 0.8% and France’s CAC 40 fell 0.7%. Germany’s DAX 30 dipped 0.2%. 

Asian markets were mixed.

Hong Kong’s Hang Seng sank 1.6% and South Korea’s Kospi tanked 1.5%. Japan’s Nikkei slipped 0.2%. China’s Shanghai was up 0.6% after reopening from a long holiday and Australia’s S&P/ASX 200 was up less than a point, or 0.01%. 

U.S. Economy

Initial Jobless Claims rose 13,000 to 861,000 after climbing 36,000 to 848,000 in the prior week. This brought the four-week moving average to 833,250 from 836,750. Claims not seasonally adjusted fell -5,700 to 862,400, following the 18,400 gain to 868,100. Continuing claims dropped -64,000 to 4,494,000 after declining -133,000 to 4,558,000 previously. The insured unemployment rate was unchanged at 3.2%.

Housing starts fell -6% to 1,580,000 in January following the 8.2% surge to 1,680,000 million in December. Building permits surged 10.4% to 1,881,000 after rising 4.2% to 1,704,000 previously. Single family starts fell -12.2% to 1,162,000, erasing the prior 12% pop to 1,323,000, while multi-family starts bounced 17.1% to 418,000 after falling -4% to 357,000. Housing completions dropped -2.3% to 1,336,000 after previously bouncing 11.5% to 1,368,000.

Stock Market Sentiment

The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) was down for the third time in four sessions after tapping an intraday low of $144.32. Prior and upper support from last March at $144.50-$144 was breached but held. A move below the latter would signal additional weakness towards $143-$142.50.

Lowered resistance is at $146-$146.50 followed by $147.50-$148.

Volatility Index

The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) extended its winning streak to three sessions with the morning peak hitting 24.23. Near-term and lower resistance at 24-24.50 was breached but held. A close above the latter and the 50-day moving average would suggest upside towards 25.50-26.

Rising support is at 22-21.50 followed by 20.50-20.

Stock Market Analysis

The Invesco QQQ Trust (Nasdaq: QQQ) extended its losing streak to three sessions after testing a morning low of $328.36. Fresh and upper support at $328.50-$328 was breached but held. A close below the latter would suggest a further pullback towards $327-$326.50.

Resistance is at $333-$333.50 followed by $334.50-$335.

RSI (relative strength indicator) remains in a downtrend with upper support at 55-50 holding. A close below the latter would indicate additional weakness towards 45-40 and levels from late October. Resistance is at 60.

Sector

The SPDR S&P Retail ETF (NYSE: XRT) fell for the third straight session following the intraday pullback to $77.22. Prior and upper support from earlier this month at $77.50-$77 was breached but held. A close below the latter would suggest a retest towards $76-$75.50.

Resistance is at $78.50-$79.

RSI is in a downtrend with key support at 50 holding. A close below this level would suggest weakness towards 45-40 and levels from early November. Resistance is at 55-60. 

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Check back after the closing bell for the most important news and numbers in the WealthPress stock market recap.