Day Traders Diary
The Dow and S&P 500 both hit new records on Monday as investors grew optimistic about the economic reopening from the pandemic. The Dow Jones Industrial Average rose 174 points, or 0.5%, to a record close of 32,953. Monday was its seventh positive trading session in a row, the longest winning streak since August. The S&P 500 added 0.65% to 3,968, a fresh all-time high and its fifth straight day of gains. The Nasdaq Composite gained 1.1% to 13,459.71.
Stocks treaded water for most of the day, until major averages popped in the final minutes of trading. Some reopening plays notched big gains, as well as some Big Tech stocks like Apple that have been weak lately. The small-cap benchmark Russell 2000 closed up 0.3%, also a new record.
American Airlines and United Airlines shares rose 7.7% and 8.3%, respectively. Air travel over the weekend hit its highest level in more than a year as the Covid-19 vaccine rolls out and Americans return to vacationing.
Apple shares closed higher by 2.5%, with most of the gain coming in afternoon trading. The gain cut its loss for the year to under 7%.
As a part of the $1.9 trillion stimulus package that became law last week, the IRS started processing $1,400 direct payments for millions of Americans, which is expected to add juice to the already recovering economy.
Stocks hit their lows of the day as Italy joined France, Germany, Ireland and the Netherlands in suspending the use of the coronavirus vaccine developed by AstraZeneca and the University of Oxford over blood clot concerns. But stocks eventually overcame that worry.
The 10-year Treasury yield was trading around 1.6% on Monday, after hitting its highest level in more than a year on Friday. The jump in bond yields has challenged growth stocks in recent weeks and sent investors into cyclical pockets of the market.
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