Day Traders Diary

2/8/21

The major averages built on the recent rally to record levels as investors remained optimistic about further COVID-19 stimulus and an economic recovery. The Dow Jones Industrial Average rose 237 points or 0.76%. The S&P 500 gained 28 points or 0.74% to reach a record high. The blue-chip Dow and the S&P 500 have risen for six days straight, marking their longest winning streak since August. The Nasdaq Composite advanced 131 points or 0.95%, also hitting a new intraday record.

The Russell 2000 jumped 2.2% to another record high, after gaining 7.7% last week for its best weekly performance since June. The small-cap benchmark has surged more than 15% in 2021 as investors flocked to beaten-up value names amid rising hopes for a fast rebound in the economy.

The energy sector rallied more than 4% Monday as Brent crude futures, the international oil benchmark, settled above $60 per barrel topped $60 per barrel for the first time in more than a year.

Treasury Secretary Janet Yellen urged Congress on Sunday to pass President Joe Biden's stimulus plan, saying if it does the U.S. could return to full employment by 2022.

The Senate and House each passed a budget resolution on Friday, starting the reconciliation process that would allow Biden's $1.9 trillion rescue package to get through the Democratic-held Senate with a simple majority.

Airline stocks jumped as documents showed Democrats' proposal could include $14 billion for the airline payroll assistance. American Airlines popped 3.9%, while United climbed 4.5% and Delta rallied 4%. The package would include $1,400 stimulus checks, supplemental jobless benefits and Covid-19 vaccine and testing funds.

U.S. Treasuries finished mixed after investors bought the early weakness in longer-dated maturities. The 2-yr yield increased two basis points to 0.11%, while the 10-yr yield decreased one basis point to 1.16% after touching 1.20% at its intraday high. The U.S. Dollar Index decreased 0.1% to 90.96.

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