Stocks ended mixed on Tuesday, with the S&P 500 and Dow ending a six-session winning streak while the Nasdaq powered to a record high.
The S&P 500 ticked just below the flat line, and the Dow ended a choppy session lower. The Nasdaq eked out record intraday and closing highs, closing above 14,000 for the first time ever. The small-cap Russell 2000 extended its winning streak to seven consecutive sessions and also closed at a record level.
Bitcoin prices (BTC-USD) surged more than 10% to close in on $48,000, adding to a record-setting rally triggered after Tesla (TSLA) disclosed it had purchased $1.5 billion worth of the cryptocurrency earlier this week.
Prospects for more stimulus out of Washington have remained a major driver of equities over the past week. Congressional committees this week are set to work out details of the legislation for another virus-relief package, which is expected to include another round of $1,400 stimulus checks, hundreds of billions of dollars in state and local aid and an extension to enhanced federal unemployment benefits beyond their current March end date. Goldman Sachs economists increased their 2021 and 2022 annual U.S. gross domestic product (GDP) growth forecasts by 0.2 percentage points each to 6.8% and 4.5%, respectively, amid their expectations for an eventual stimulus package worth $1.5 trillion, according to a note Monday.
But even in absence of additional stimulus, corporate America has already been showing signs of a stronger-than-expected rebound, with fourth-quarter earnings results blowing past estimates. More than three-quarters of S&P 500 companies have so far reported earnings results, and 66% have beaten expectations for both sales and profit, according to a Bank of America analysis.
“Corporate earnings have defied a shrinking economy: 4Q EPS [earnings per share] for the S&P 500 is now up 0.3% YoY vs. -2.5% YoY in GDP,” Bank of America strategist Savita Subramanian wrote in a note Monday. Heading into fourth-quarter earnings season, consensus analysts expected that S&P 500 companies would, in aggregate, post another earnings decline.
“There’s a lot of tailwinds for the markets right now. One is the so-called stimulus package … it is relief, and it will provide a sugar high, so it’s good for the markets in the near-term,” Greg Swenson, Brigg Macadam founding partner, told Yahoo Finance.
“But you’ve also got earnings [that] have been fantastic, and you seem to see consistent revisions upward on earnings and good results” he added. “You’ve got pent-up demand – I think that’s the most important thing to consider. You’ve had a massive increase in the savings rate since the beginning of the pandemic. So you’ve got a lot of consumer pent-up demand, a lot of savings that’s sitting on the sidelines waiting to either buy stocks … but also just get back to work in the private economy.”
4:02 p.m. ET: Stocks end mixed: Nasdaq closes above 14,000 for the first time ever while S&P 500, Dow end six-session winning streak
Here were the main moves in markets as of 4:02 p.m. ET:
S&P 500 (^GSPC): -4.31 (-0.11%) to 3,911.28
Dow (^DJI): -10.00 (-0.03%) to 31,375.76
Nasdaq (^IXIC): +20.06 (+0.14%) to 14,007.70
Crude (CL=F): +$0.35 (+0.60%) to $58.32 a barrel
Gold (GC=F): +$1.90 (+0.10%) to $1,836.10 per ounce
10-year Treasury (^TNX): -0.3 bps to yield 1.1570%
1:43 p.m. ET: Stocks trade mixed, Dow recovers earlier losses to trade slightly higher as Boeing shares jump
The three major indexes were mixed in intraday trading Tuesday, with the S&P 500 still slightly lower while the Dow and Nasdaq increased.
The S&P 500 was on track to decline for the first time in seven sessions, after hitting a record high a day earlier. The energy, consumer discretionary and materials sectors lagged, while industrials, communication services, real estate and financials held higher.
A 2% jump in shares of Boeing helped lead gains in the Dow, after the company outpaced competitor Airbus on monthly deliveries for the first time in two years, according to new data on the company’s website. Boeing handed over 26 aircraft in January, versus 21 for Airbus.
10:50 a.m. ET: Senate Democrats aim to pass another stimulus bill before mid-March ‘Anything else would be absolutely unacceptable’: Sen. Wyden
Senate Finance Committee Chairman Ron Wyden (D-Oregon) told Yahoo Finance Live on Tuesday that he is aiming to help pass another robust virus relief package by mid-March, when unemployment benefits reauthorized under Congress’s $900 billion package in December are set to expire.
“Anything else would be absolutely unacceptable. To have those workers … fall into another economic abyss would just be wrong,” Wyden said.
Wyden also said he was pushing for the $1,400 stimulus checks included in President Joe Biden’s original $1.9 trillion proposal to get advanced.
“People who got the first two checks are expecting a third. And the fact is, the pandemic has hit these families like a wrecking ball,” he said. “They’re just balancing the food bill against the fuel bill and the fuel bill against the rent bill.”
“I am for the original Biden proposal, $1,400 threshold,” he added. “We’re going to have a pretty vigorous debate all the way through the process.”
.@SenateFinance Chairman @RonWyden on stimulus checks: “I support the threshold the president called for… People who got the first two checks are expecting a third, and the fact is the pandemic has hit these families like a wrecking ball.” https://t.co/Jb7k9tf4PH pic.twitter.com/rxZkMoMNFI
— Yahoo Finance (@YahooFinance) February 9, 2021
10:00 a.m. ET: Job openings unexpectedly increased in December, reaching 5-month high: JOLTS
The number of U.S. job openings unexpectedly increased to the highest level since July in December, and openings for November were upwardly revised.
Job openings in December totaled 6.645 million, the U.S. Labor Department said Tuesday. This beat expectations for 6.4 million job openings, according to Bloomberg consensus data. Job openings had totaled 6.572 million in November.
By industry, job openings in professional and business service industries increased by the most at 296,000. Job openings notably decreased in state and local government, in the arts and in nondurable goods manufacturing.
9:30 a.m. ET: Stocks open slightly lower
The three major indexes opened lower Tuesday, giving back some gains after hitting record highs a day earlier. The S&P 500 ticked down about 0.2% but buoyed over 3,900. The Dow shed about 100 points, or 0.3%, as shares of Disney, Visa and Boeing dipped. The Nasdaq outperformed, ticking just 0.1% below the flat line.
7:23 a.m. ET Tuesday: Stock futures pull back slightly from record levels
Here’s where markets were trading Tuesday morning:
S&P 500 futures (ES=F): 3,902.5, down 5.5 points or 0.14%
Dow futures (YM=F): 31,207.00, down 61 points or 0.2%
Nasdaq futures (NQ=F): 13,667.75, down 15.25 points or 0.11%
Crude (CL=F): -$0.06 (-0.1%) to $57.91 a barrel
Gold (GC=F): +$10.10 (+0.55%) to $1,844.30 per ounce
10-year Treasury (^TNX): -0.5 bps to yield 1.155%
6:05 p.m. ET Monday: Stock futures hold near record levels
Here’s where markets were trading Monday evening as overnight trading kicked off:
S&P 500 futures (ES=F): 3,908.75, up 0.75 points or 0.02%
Dow futures (YM=F): 31,285.00, up 17 points or 0.05%
Nasdaq futures (NQ=F): 13,677.5, down 5.5 points or 0.04%
Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck