Day Traders Diary
The major averages climbed on Tuesday, rebounding from a losing week, as investors digested results from the new earnings season as well as signals for another big stimulus and faster pace of vaccine distribution ahead. The Dow Jones Industrial Average rose 116 points, or 0.4%, to 30,930. The S&P 500 gained 0.8% to 3,798, led by energy and communication services sectors. The tech-heavy Nasdaq Composite outperformed with a 1.5% gain to 13,197.
Some of the major technology stocks rebounded sharply from last week's losses. Facebook and Alphabet climbed 3.9% and 3.3%, respectively, while Microsoft rose 1.8%. Apple and Amazon also advanced.
Shares of Goldman Sachs erased earlier gains and fell 2.3% as traders took profits after the bank topped expectations for fourth-quarter profit and revenue. The blowout results came on the back of strong performance from its equities traders and investment bankers.
Bank of America dipped 0.7% after the bank posted quarterly revenue that missed expectations. Profit came in slightly above estimates, however.
The first week of earnings season saw a historically high proportion of beats with 88% of the S&P 500 companies that reported exceeding EPS estimates, according to Bank of America data.
While the earnings cycle started out strong, many on Wall Street believe fourth-quarter earnings have been priced in and the market is focused on the 2021 outlook and the ultimate size of fiscal stimulus that would translate into profit growth.
Biden, set to be inaugurated on Wednesday, unveiled his $1.9 trillion plan for economic relief last week as the country tries to get a handle on the Covid-19 pandemic.
Dr. Rochelle Walensky, Biden's pick to lead the Centers for Disease Control and Prevention, said Sunday that she's confident the U.S. will have enough vaccine doses to meet the incoming administration's goal of inoculating 100 million people in 100 days.
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