Wall Street showed continued momentum for the fourth straight session as the focus turned back to fundamentals after last week’s focus on short-interest stocks — and more in Thursday’s stock market recap.
Talks of a hefty stimulus from Washington look increasingly likely while moderation in the spread of the virus and lockdowns also helped fuel the bullish sentiment.
The Russell 2000 rallied 2% after closing at a record peak of 2,202.
The Nasdaq jumped 1.2% while trading to an intraday record high of 13,778.
The Dow rose 1.1% following the late-day push to 31,065.
The S&P 500 was up by 1.1% with the lifetime high reaching 3,872 ahead of the close.
Financials and Technology led sector strength after gaining 2.2% and 1.6%, respectively. Materials were the only sector that showed weakness after falling 0.4%.
Shares of Canada Goose Holdings Inc. (NYSE: GOOS) rallied 22% after announcing earnings. The company reported a quarterly profit of $1.01 a share on revenue of $474 million. Forecasts were for a profit of $1.08 a share on revenue of $452 million.
CEO Dani Reiss stated the global strength of its brand and digital business has returned Canada Goose to growth in their biggest quarter. She also added its brand HUMANATURE was rapidly advancing the company’s sustainability and purpose-based commitments.
The AAII Sentiment Survey revealed bullish sentiment closed at 37.4% last week. Optimism was below its historical average of 38.5% for the second straight week.
Neutral sentiment was at 27% and below its historical average of 30.5% for the fourth straight week.
Bearish sentiment was seen at 35.6%. Pessimism was above its historical average of 31% for the fourth straight week.
From the global stock market recap, European markets closed mostly higher.
Germany’s DAX 30 rose 0.9% and the Belgium20 was up 0.7%. France’s CAC 40 gained 0.8% and the Stoxx 600 advanced 0.6%. UK’s FTSE 100 dipped 0.1%.
Asian markets were weak across the board.
South Korea’s Kospi dropped 1.4% and Japan’s Nikkei was down 1.1%.
Australia’s S&P/ASX 200 fell 0.9% and Hong Kong’s Hang Seng declined 0.7%. China’s Shanghai was off 0.4%.
Initial Jobless Claims declined -33,000 to 779,000 after dropping -63,000 to 812,000 in the prior week. The four-week moving average slipped to 848,240 versus 849,000 previously. Continuing claims dropped -193,000 to 4,592,000 after slumping -190,000 to 4,785,000 previously.
Challenger announced layoffs rose 2,500 to 79,000 in January after rising 12,200 to 77,000 in December. The 12-month pace slowed to 17.4% year-over-year. Job cuts were led by the Aerospace/defense industry. Announced hirings declined -5,200 to 72,100 in January following the -108,200 plunge in December to 77,300.
The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) extended its losing streak to three sessions with the intraday low hitting $148.80. Prior and upper support from last March at $149-$148.50 was breached but held. A move below the latter reopens downside risk towards $148.50-$148 and levels from last March.
Lowered resistance is at $149.50-$150 followed by $151-$151.50.
The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) fell for the fourth straight session with the late-day low kissing 21.68. Prior and upper support at 22-21.50 was recovered. A close below the latter would indicate a retest towards 20.50-20 with the late-November low at 19.51.
Lowered resistance is at 23-23.50 and the 50-day moving average.
The iShares Russell Growth 1000 ETF (NYSE: IWF) was up for the third time in four sessions after tagging a high of $250.46 just ahead of the closing bell. Current and lower resistance at $250-$250.50 was reclaimed. A close above the latter and the recent all-time peak at $250.70 would signal a possible breakout towards $252-$252.50.
Rising support is at $249-$248.50 followed by $247.50-$247.
RSI is curling higher after clearing and holding key resistance at 60. Continued closes above this level would suggest additional strength towards 65-70. Support is at 55-50.
The Real Estate Select Sector SPDR Fund (NYSE: XLRE) rebounded with the morning peak reaching $38.04. Key resistance at $38 was breached but held. A close above this level would suggest additional strength towards $38.25-$38.50 and the early November highs.
Support is at $37.50-$37.25.
RSI is back in a slight uptrend with multi-month resistance at 65 holding. A move above this level would indicate strength towards 70 and the high from early June. Support is at 60-55.
Check back after the closing bell for the most important news and numbers in the WealthPress stock market recap.