Stock Market Recap: Tuesday, Feb. 9, 2021
Wall Street shook off a weak open and closed relatively flat as the major indexes set another round of intraday and closing all-time highs — and more in Tuesday’s stock market recap.
Better-than-expected economic news and earnings results helped sentiment along with improving numbers in coronavirus cases and deaths. Volatility remained subdued after holding key resistance on the opening pullback.
Stock Market Recap
The Russell 2000 advanced 0.4% after testing a midday all-time high of 2,309.
The Nasdaq nudged up 0.1% with the first-half record peak hitting 14,044.
The Dow dipped nearly 10 points, or 0.03%, despite trading to an intraday all-time high of 31,439.
The S&P 500 slipped 0.1% while testing a new lifetime high of 3,918.
Real Estate led sector strength after rising 0.5% while Communication Services and Industrials were up 0.3%. Energy was the weakest sector after sinking 1.1%.
Stock Market Movers
Shares of Glu Mobile Inc. (Nasdaq: GLUU) zoomed 35% after announcing a definitive agreement with Electronic Arts Inc. (Nasdaq: EA) to be acquired for $2.1 billion.
Under the terms of the deal, GLUU stockholders will receive $12.50 in cash for each share, with the transaction expected to close by the end of the second quarter, or June 30.
Stock Market Outlook
Shares of Twitter Inc. (NYSE: TWTR) traded to a fresh 52-week peak and seven-year high with fourth-quarter earnings coming after the closing bell.
The company is expected to report a profit of 31 cents a share on revenue of $1.19 billion. The high estimate is at 46 cents a share with the low forecast at 21 cents a share, equating a 15-cent beat or a 10-cent miss.
Over the past four quarters the company has beaten forecasts by 13 cents and a penny, while missing by -$1.39 and four cents in the year-ago period. There are 41 analysts that cover the stock with three Strong Buy ratings, four Buy, 29 Holds, and five Underperform recommendations.
Twitter’s monetizable daily active usage (DAU) will be closely watched as a measure of its popularity and growth potential.
Global Economy
From the global stock market recap, European markets settled mixed.
The Belgium20, France’s CAC 40 and the UK’s FTSE 100 edged up 0.1%. Germany’s DAX 30 was down 0.3% and the Stoxx 600 slipped 0.1%.
Asian markets also closed on both sides of the ledger.
Australia’s S&P/ASX 200 declined 0.6% and South Korea’s Kospi slipped 0.2%. China’s Shanghai soared 2%. Hong Kong’s Hang Seng rose 0.5% and Japan’s Nikkei added 0.4%.
U.S. Economy
NFIB small business optimism index slipped -0.9% to 95 in January after slumping -5.4% to 95.9 in December. The expectations for a better business environment fell to -23% from -16%. Positions not able to fill edged up to 33% from 32% while expectations for a positive earnings trend dipped to -16% from -14%. The uncertainty index declined to 80 from 82.
JOLTS reported job openings rebounded 74,000 to 6,646,000 in December, above forecasts for a print of 6,400,000, following the -60,000 decline in November to 6,572,000. The openings rate improved to 4.5% from 4.4%. Layoffs dropped -243,000 to 1,812,000 versus the 379,000 jump to 2,055,000 while the rate slipped to 1.3% from 1.4%. There was a 106,000 rise in quitters to 3,286,000 in December following the 30,000 increase in November’s to 3,180,000. However, December hiring declined -396,000 to 5,539,000 after edging up 23,000 to 5,935k previously. The rate fell to 3.9% from 4.2%.
Stock Market Sentiment
The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) was up for the second straight session with the morning high reaching $149.67. New and lower resistance at $149.50-$150 was breached but held. A close above the latter would suggest additional upside towards $151.50-$152.
Support is at $148.50-$148.
Volatility Index
The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) was up for the second straight session after tapping an intraday of 22.26. Near-term and 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 remains at 21-20.50 with a more important hurdle at the 20 level.
Stock Market Analysis
The S&P 400 Mid Cap Index (NYSE: MID) extended its winning streak to seven sessions after testing an all-time high of 2,531. Uncharted territory and lower resistance at 2,525-2,550 was cleared but held. A move above the latter would indicate further momentum towards 2,575-2,600.
Rising support is at 2,500-2,475 followed by 2,450-2,425.
RSI (relative strength index) remains in an uptrend with key resistance at 70 holding. A move above this level would signal additional strength towards 75 and the early January high. Support is at 65-60.
Sector
The Consumer Staples Select SPDR Fund (NYSE: XLP) was down for the first time in seven sessions despite trading to an intraday high of $66.18. Near-term and lower resistance at $66.25-$66.75 was challenged but held. A close above the latter and the 50-day moving average would indicate additional strength towards $67-$67.50.
Key support is at $65.50.
RSI is showing signs of fading after failing to clear and hold lower resistance at 55-60. A move above 60 and a level that has been holding since mid-November would suggest upside towards 65-70. Key support is at 50.
Check back after the closing bell for the most important news and numbers in the WealthPress stock market recap.