Wall Street set another round of all-time highs on the open before closing lower as rising bond yields kept bullish sentiment in check — and more in Tuesday’s stock market recap.
Some of the nervousness came over concerns about rising interest rates and the potential for a jump in inflation. This could pose a threat to certain sectors after the 10-year Treasury yield topped 1.25% for the first time since last March.
The Dow added 0.2% with the morning all-time high hitting 31,608.
The S&P 500 slipped 0.1%, after tagging a record peak of 3,950 shortly after the opening bell.
The Nasdaq fell 0.3% despite trading to a lifetime high of 14,175.
The Russell 2000 gave back 0.7% after topping out at 2,310 while coming within eight points of its all-time high.
Energy and Financials led sector strength after soaring 2.5% and 1.8%, respectively. Real Estate and Utilities paced sector weakness after falling 1.1%.
Shares of Bluebird Bio Inc. (Nasdaq: BLUE) sank 38% following the temporary suspension of its sickle cell disease trials and halt to marketing of the drug LentiGlobin. The studies were paused after an unexpected serious adverse reaction.
The company could potentially resume normal clinical and commercial activities in the next few months, but competitor approaches could stall progress. These approaches, like gene editing, theoretically run less risk of cancer promotion.
Wingstop Inc. (Nasdaq: WING) will announce fourth-quarter earnings ahead of Wednesday’s opening bell. The company is expected to report a profit of 23 cents a share on revenue of $64.1 million. The high estimate is at 31 cents a share with the low forecast at 14 cents and would equate to a eight-cent beat or a nine-cent miss.
The company matched forecasts last quarter, and beat by 10 and three cents in the previous two quarters, while missing by three cents in the year ago period. There are 11 analysts that cover the stock with five Strong Buy ratings, four Buy and two Hold recommendations.
Shares traded to a fresh all-time high of $172.87 and will likely need a beat-and-raise quarter to continue its recent momentum.
From the global stock market recap, European markets settled mostly lower.
Germany’s DAX 30 declined 0.3% and the Belgium20 was off 0.2%. The UK’s FTSE 100 dipped 0.1% and the Stoxx 600 was down 0.06%. France’s CAC 40 was up 0.01%.
Asian markets closed higher as traders focused on COVID-19 vaccine rollout progress and global economic recovery hopes.
Hong Kong’s Hang Seng surged 1.9% and Japan’s Nikkei jumped 1.3%. Australia’s S&P/ASX 200 advanced 0.7% and South Korea’s Kospi rose 0.5%. China’s Shanghai remained closed until Thursday for the Lunar New Year celebrations.
Empire State manufacturing index surged 8.6 points to 12.1 in February, versus expectations for a print of 5.7, and follows the -1.4 point drop to 3.5 in January. The employment index edged up to 12.1 from 11.2 while the workweek rose to 9 from 6.3. New orders improved to 10.8 from 6.6. Prices paid soared to 57.8 from 45.5, with prices received rising to 23.4 from 15.2. The six-month index rose to 34.9 from 31.9. The future employment component fell to 16.6 from 23 while new orders edged up to 35.6 from 34.8. The prices paid index climbed to 55.8 from 49, with prices received at 32.5 from 23.4. Capex jumped to 23.4 from 17.9.
Federal Reserve Governor Michelle Bowman remains concerned that the economy is at risk from new virus strains. She said, while vaccine developments are encouraging, there is some uncertainty. She added now is not the time to be complacent on providing support to the economy. She worries that the unemployment rate understates the number of those who are out of work, repeating Fed Chair Jerome Powell’s view that it is closer to 10% than the current 6.3% rate.
The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) extended its losing streak to three sessions after tapping a morning low of $144.66. Prior and upper support from last March at $145-$144.50 was tripped and failed to hold. A move below the latter would signal additional weakness towards $143.50-$143.
Lowered resistance is at $145.50-$146 followed by $147-$147.50.
The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) was up for the first time in three sessions with the intraday peak reaching 22.46. Current and lower resistance at 22-22.50 was breached but held. A close above the latter would indicate a retest towards 23-23.50 and the 50-day moving average.
Support remains at 20.50-20.
The iShares Russell Growth 1000 ETF (NYSE: IWF) had its two-session winning streak snapped despite tagging a fresh all-time high of $255.61. Unchartered territory and lower resistance at $255.50-$256 was cleared but held. A close above the latter would indicate momentum towards $257-$257.50.
Support is at $253-$252.50 followed by $251.50-$250.
RSI is showing signs of rolling over with key support at 60 holding. A close below this level would suggest additional weakness towards 55-50. Resistance is at 65-70.
The SPDR S&P Homebuilders ETF (NYSE: XHB) was down for the second straight session following the intraday tumble to $63.41. Fresh and upper support at $63.50-$63 was breached but held. A close below the latter would signal additional weakness towards the $62-$61.50 area.
Resistance is at $64.50-$65 with last Thursday’s all-time peak at $65.49.
RSI is in a downtrend with upper support at 55-50 holding. A close below the latter would be a bearish development with additional risk towards 45 and the January and November low at 45. Resistance is at 60-65.
Check back after the closing bell for the most important news and numbers in the WealthPress stock market recap.