We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. stocks closed higher for the fourth straight session on Thursday as investors' sentiment got a boost following better-than-expected jobless claims data and upbeat earnings results from a slew of big players. Also, hopes of more financial stimulus drive market sentiments. The S&P 500 and the Nasdaq closed at new record highs. All the three major indexes closed in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) added 1.1% or 332.36 points to close at 31,055.86. This was the bluechip index’s fourth straight day of gains after registering its biggest percentage gain since Nov 16 earlier this week.
The S&P 500 rose 1.1% or 41.57 points to close at 3,830.17 points, surpassing the previous all-time high of 3855.36 reached on Jan 25. The rally was driven by financial stocks and energy stocks.
The Energy Select Sector SPDR (XLE) gained 1.1%, while the Financials Select Sector SPDR (XLF) jumped 2.2%. Ten of the 11 sectors of the benchmark index closed in positive territory.
The tech-heavy Nasdaq climbed 1.2% or 167.2 points to hit a new all-time high of 13,777.74 points. The Nasdaq had earlier hit an all-time high of 13,635.99 on Jan 25. Shares of Apple, Inc. (AAPL - Free Report) and Netflix, Inc. (NFLX - Free Report) gained 2.6% and 2.4%, respectively. Apple has a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The fear-gauge CBOE Volatility Index (VIX) was down 4.98% to 21.77. A total of 14.09 billion shares were traded on Thursday, lower than the last 20-session average of 15.5 billion. Advancers outnumbered decliners on the NYSE by a 2.53-to-1 ratio. On Nasdaq, a 2.78-to-1 ratio favored advancing issues.
Lower Jobless Claims Boost Investor Sentiment
Initial jobless claims data came as a surprise on Thursday. First-time claims for unemployment for the week ended Jan 30 totaled 779,000, declining 33,000 from the previous week and way lower than analysts’ estimates of 835,000.
The upbeat data raised hopes of a faster economic recovery, which gave a boost to investors’ confidence. This sent stocks on a rally on Thursday.
Stimulus Hopes, Declining COVID-19 Cases Help Markets
Investors have been closely watching progress on the new coronavirus relief package from Congress. On Thursday, Democrats further moved forward with President Joe Biden proposal of a $1.9 trillion coronavirus stimulus package although Republicans proposed a much lower $618 billion relief aid. Biden reportedly said that he was willing to send paychecks of $1,400 in the first round to some smaller groups of American.
Reports of declining number of coronavirus cases somewhat lifted investors’ sentiments. The past week has seen COVID-19 cases drastically decline. Hospitalizations too have been on the decline. According to the COVID Tracking Project, there were 91,440 COVID-19 patients in U.S. hospitals, the lowest since Nov 27.
Also, investors’ confidence got a boost after a slew of big names posted upbeat quarterly results. Thursday also marked the busiest day of this earnings season.
Economic Data
U.S. productivity in the fourth quarter declined to an annual rate of 4.8%. However, per the Commerce Department’s report, factory orders for manufactured goods jumped 1.1% in December, following a 1.3% rise in November.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Stock Market News for Feb 5, 2021
U.S. stocks closed higher for the fourth straight session on Thursday as investors' sentiment got a boost following better-than-expected jobless claims data and upbeat earnings results from a slew of big players. Also, hopes of more financial stimulus drive market sentiments. The S&P 500 and the Nasdaq closed at new record highs. All the three major indexes closed in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) added 1.1% or 332.36 points to close at 31,055.86. This was the bluechip index’s fourth straight day of gains after registering its biggest percentage gain since Nov 16 earlier this week.
The S&P 500 rose 1.1% or 41.57 points to close at 3,830.17 points, surpassing the previous all-time high of 3855.36 reached on Jan 25. The rally was driven by financial stocks and energy stocks.
The Energy Select Sector SPDR (XLE) gained 1.1%, while the Financials Select Sector SPDR (XLF) jumped 2.2%. Ten of the 11 sectors of the benchmark index closed in positive territory.
The tech-heavy Nasdaq climbed 1.2% or 167.2 points to hit a new all-time high of 13,777.74 points. The Nasdaq had earlier hit an all-time high of 13,635.99 on Jan 25. Shares of Apple, Inc. (AAPL - Free Report) and Netflix, Inc. (NFLX - Free Report) gained 2.6% and 2.4%, respectively. Apple has a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The fear-gauge CBOE Volatility Index (VIX) was down 4.98% to 21.77. A total of 14.09 billion shares were traded on Thursday, lower than the last 20-session average of 15.5 billion. Advancers outnumbered decliners on the NYSE by a 2.53-to-1 ratio. On Nasdaq, a 2.78-to-1 ratio favored advancing issues.
Lower Jobless Claims Boost Investor Sentiment
Initial jobless claims data came as a surprise on Thursday. First-time claims for unemployment for the week ended Jan 30 totaled 779,000, declining 33,000 from the previous week and way lower than analysts’ estimates of 835,000.
The upbeat data raised hopes of a faster economic recovery, which gave a boost to investors’ confidence. This sent stocks on a rally on Thursday.
Stimulus Hopes, Declining COVID-19 Cases Help Markets
Investors have been closely watching progress on the new coronavirus relief package from Congress. On Thursday, Democrats further moved forward with President Joe Biden proposal of a $1.9 trillion coronavirus stimulus package although Republicans proposed a much lower $618 billion relief aid. Biden reportedly said that he was willing to send paychecks of $1,400 in the first round to some smaller groups of American.
Reports of declining number of coronavirus cases somewhat lifted investors’ sentiments. The past week has seen COVID-19 cases drastically decline. Hospitalizations too have been on the decline. According to the COVID Tracking Project, there were 91,440 COVID-19 patients in U.S. hospitals, the lowest since Nov 27.
Also, investors’ confidence got a boost after a slew of big names posted upbeat quarterly results. Thursday also marked the busiest day of this earnings season.
Economic Data
U.S. productivity in the fourth quarter declined to an annual rate of 4.8%. However, per the Commerce Department’s report, factory orders for manufactured goods jumped 1.1% in December, following a 1.3% rise in November.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>