Wall Street fell as a surge in bond yields prompted traders to dump riskier assets, especially high-flying Tech stocks — and more in Thursday’s stock market recap.
The major indexes posted their biggest losses of the month as the 10-year Treasury yield zoomed more than 16 basis points to a peak north of 1.6%, its highest level since last February.
The Nasdaq plummeted 3.7% after tapping an intraday low of 13,066.
The Russell 2000 fell 3.5% following the late-day tumble to 2,196.
The S&P 500 sank 2.5% with the afternoon low reaching 3,814.
The Dow stumbled 1.8% after bottoming at 31,293.
Consumer Discretionary and Technology were the worst-performing sectors after tanking 3.7% and 3.5%, respectively. There was no sector strength.
Shares of Pandion Therapeutics Inc. (Nasdaq: PAND) skyrocketed 133% after the company announced a definitive agreement with Merck & Co Inc. (NYSE: MRK). Merck will acquire Pandion for $60 per share in cash and represents an approximate total equity value of $1.85 billion.
Pandion is a clinical-stage biotechnology company. It develops therapeutics to address the unmet needs of patients living with autoimmune diseases.
Airbnb Inc. (Nasdaq: ABNB) will announce earnings for the first time since becoming a publicly traded company after today’s closing bell. Analysts are expecting a loss of -$9.16 a share on revenue of $747.59 million. The high estimate is for a loss of -$9.78 a share with the low forecast looking for red ink of -27 cents. This would equate to a 62-cent miss or an $8.89 beat.
There are 31 analysts that cover the stock with five Strong Buy ratings, six Buys, 19 Holds, and one Sell recommendation.
From the global stock market recap, European markets settled lower.
Germany’s DAX 30 was down 0.7% and the Stoxx 600 declined 0.4%. The Belgium20 and France’s CAC 40 slipped 0.2% while the U.K.’s FTSE 100 dipped 0.1%.
Asian markets closed higher across the board.
South Korea’s Kospi surged and Japan’s Nikkei rallied 1.7%. Hong Kong’s Hang Seng soared 1.2% and Australia’s S&P/ASX 200 rose 0.8%. China’s Shanghai added 0.6%.
Initial Jobless Claims sank -111,000 to 730,000 after sliding -7,000 to 841,000 previously. The four-week moving average fell to 807,750 from 828,250. Continuing claims sank -101,000 to 4,419,000 following the -38,000 decline to 4,520,000 previously.
Fourth-quarter GDP was revised up to a 4.1% growth rate versus the 0.4% pace from the Advance reading. Consumption was nudged down to 2.4% from 2.5%. Business fixed investment was revised up to a 14% pace versus the previous 13.8% pop. Residential investment was bumped up to 35.8% from 33.5% and government spending contracted at a -1.1% pace versus -1.2% previously. Inventories contributed 1.1% to growth compared to 1.04% in the Advance report. Net exports subtracted -1.55% from Q4 growth versus -1.52% previously. The GDP chain price index inched up to a 2.1% rate from 2%. The core rate was steady at 1.4%.
Pending Home Sales sales fell -2.8% to 122.8 in January after climbing 0.5% to 126.4 in December. The sales pace slowed to a 8.2% year-over-year rate versus 23.1% previously.
The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) extended its losing streak to six sessions with the 52-week low plunging to a low of $136.61. Fresh and upper support from last March at $137-$136.50 was tripped but held. A move below the latter would signal further weakness towards $135.50-$135.
Lowered resistance is at $140-$140.50.
The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) was up for the first time in three sessions with the afternoon peak hitting 31.16. Prior and lower resistance from late January at 31-31.50 was breached but held. A close above the 32 level would indicate a retest towards the 34-36 area.
New support is at 26.50-26 and the 200-day moving average.
The iShares Russell Growth 1000 ETF (NYSE: IWF) fell for the seventh time in eight sessions following the second-half tumble to $237.35. Current and upper support at $237.50-$237 was breached but held. A close below the latter and Tuesday’s monthly low at $237.26 would indicate a further backtest towards $235-$234.50.
Lowered resistance is at $241-$241.50 followed by $243.50-$244 and the 50-day moving average.
RSI remains in a downtrend with key support at 35 holding. A close below this level would suggest additional weakness towards 30-25 and levels from last March. Resistance is at 40-45.
The Financial Select Sector SPDRFund (NYSE: XLF) had its four-session winning streak snapped following the pullback to $32.85. Near-term and upper support at $33-$32.50 was tripped and failed to hold. A close below the latter would indicate continued weakness towards $32-$31.50.
Resistance is at $33-$33.50 with Thursday’s opening 52-week peak reaching $33.84.
RSI is back in a downtrend after stalling at key resistance at 75 and the January high. Key support is 70 failed to hold on the weakness afterwards. Continued closes below this level suggesting weakness towards 65-60.
Check back after the closing bell for the most important news and numbers in the WealthPress stock market recap.