Day Traders Diary

2/16/21

               

A mixed market to start the week with Dow Jones Industrial Average eking out a small gain to a close at a new record high led by strength in the financial and energy stocks. The S&P 500 and Nasdaq Composite closed modestly lower after setting all-time highs in early action.  

Investors remained optimistic on the economy, evident by the continued selling interest in longer-dated Treasuries, which drove yields noticeably higher. The growth-sensitive 10-yr yield rose ten basis points to 1.30%, while the Fed-sensitive 2-yr yield increased two basis points to 0.12%. The U.S. Dollar Index increased 0.1% to 90.54.

This curve-steepening activity was a boon for the bank stocks within the S&P financials sector rising 1.8%. The energy sector advanced the most with a 2.3% gain amid higher oil and gas prices after a winter storm left millions of people without power in the U.S.

The communication services sector outperformed, as investors continued to bid up shares of companies with digital advertising exposure. Conversely, the utilities, real estate and health care sectors declined at least 1.0%.

On the earnings front, shares of CVS Health fell 4% while Allegion dropped 7.2% closing lower despite the companies reporting better-than-expected quarterly results.

In other developments, Democratic senators reportedly hope to bring the fiscal stimulus bill up for a floor vote next week, Reuters reported that OPEC+ will likely ease supply curbs after April of this year amid increase in prices.

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