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Wall Street closed sharply higher on Monday on expectations of a fresh trench of large fiscal stimulus. Market participants also remained positive on U.S. economic recovery following the nationwide COVID-19 vaccination process. All the three major stock indexes ended at record highs.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 0.8% or 237.52 points to close at 31,385.76. Notably, 23 components of the 30-stock index ended in the green while 7 in red. The blue-chip index has posted its fifth record close of the year and its first since Jan 21. During intraday trading the index recorded its all-time high at 31,386.10. Moreover, the index has risen for six straight days, marking its longest winning streak since August 2020.
The Nasdaq Composite finished at 13,987.64, rallying 1% or 131.35 points due to strong performance by large-cap tech stocks. This was the tech-heavy index's ninth record closing this year. During intraday trading, the tech-laden index recorded an all-time high at 13,987.74.
Meanwhile, the S&P 500 gained 0.7% to end at 3,915.59, reflecting its eighth all-time closing high this year. During intraday trading, the index recorded its all-time high at 3,915.77. Moreover, the index has risen for six straight days, marking its longest winning streak since August 2020.
The Energy Select Sector SPDR (XLE), the Financials Select Sector SPDR (XLF) and the Technology Services Select Sector SPDR (XLK) surged 4.2%,1.3 and 1.1%, respectively. Notably, ten out of eleven sectors of the benchmark index closed in the green and one in red.
The fear-gauge CBOE Volatility Index (VIX) was up 1.8% to 21.24. A total of 15.32 billion shares were traded on Monday, lower than the last 20-session average of 15.51 billion. Advancers outnumbered decliners on the NYSE by a 3.20-to-1 ratio. On Nasdaq, a 3.56-to-1 ratio favored advancing issues.
Hope for Large Stimulus Brightens
Congressional Democrats have moved forward to initiate voting in both the Senate and the House of Representatives without Republican support through a process called budget reconciliation in order to make President Joe Biden's proposed $1.9 trillion coronavirus-aid package a law.
Moreover, on Feb 7, Treasury Secretary Janet Yellen advised the Congress to support President's new fiscal stimulus as it will lead to returning at full-employment level by 2022. Notably, the Congressional Budget Office has projected full employment by 2024 in absence of this relief package.
Moderate job growth in January clearly indicates that the U.S. economy is still suffering from coronavirus-led devastations and full recovery will take a long time. Consequently, investors' expectations have strengthened that the Congress will clear the path of President Biden's proposed $1.9 trillion coronavirus-aid package in a law.
Meanwhile, the U.S. government has ramped up nationwide COVID-19 vaccine deployment. As of Feb 8, at least 32,780,860 doses administered. New cases of infections have also declined on average. Notably, the Biden administration has targeted to administer at least 100 million doses of vaccine during its first 100 days in office.
Airline Stocks Rise on Stimulus Hope
Airline stocks rose as the proposed fiscal stimulus will include $14 billion for the airline payroll assistance. Consequently, shares of United Airlines Holdings Inc. (UAL - Free Report) , Delta Air Lines Inc. (DAL - Free Report) and American Airlines Group Inc. (AAL - Free Report) surged 5.2%, 5.1% and 3.4%, respectively. United Airlines and American Airlines carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BP plc (BP - Free Report) recently announced that it has entered into the U.K. offshore wind market with two massive leases. (Read More)
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Shutterstock
Stock Market News for Feb 9, 2021
Wall Street closed sharply higher on Monday on expectations of a fresh trench of large fiscal stimulus. Market participants also remained positive on U.S. economic recovery following the nationwide COVID-19 vaccination process. All the three major stock indexes ended at record highs.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 0.8% or 237.52 points to close at 31,385.76. Notably, 23 components of the 30-stock index ended in the green while 7 in red. The blue-chip index has posted its fifth record close of the year and its first since Jan 21. During intraday trading the index recorded its all-time high at 31,386.10. Moreover, the index has risen for six straight days, marking its longest winning streak since August 2020.
The Nasdaq Composite finished at 13,987.64, rallying 1% or 131.35 points due to strong performance by large-cap tech stocks. This was the tech-heavy index's ninth record closing this year. During intraday trading, the tech-laden index recorded an all-time high at 13,987.74.
Meanwhile, the S&P 500 gained 0.7% to end at 3,915.59, reflecting its eighth all-time closing high this year. During intraday trading, the index recorded its all-time high at 3,915.77. Moreover, the index has risen for six straight days, marking its longest winning streak since August 2020.
The Energy Select Sector SPDR (XLE), the Financials Select Sector SPDR (XLF) and the Technology Services Select Sector SPDR (XLK) surged 4.2%,1.3 and 1.1%, respectively. Notably, ten out of eleven sectors of the benchmark index closed in the green and one in red.
The fear-gauge CBOE Volatility Index (VIX) was up 1.8% to 21.24. A total of 15.32 billion shares were traded on Monday, lower than the last 20-session average of 15.51 billion. Advancers outnumbered decliners on the NYSE by a 3.20-to-1 ratio. On Nasdaq, a 3.56-to-1 ratio favored advancing issues.
Hope for Large Stimulus Brightens
Congressional Democrats have moved forward to initiate voting in both the Senate and the House of Representatives without Republican support through a process called budget reconciliation in order to make President Joe Biden's proposed $1.9 trillion coronavirus-aid package a law.
Moreover, on Feb 7, Treasury Secretary Janet Yellen advised the Congress to support President's new fiscal stimulus as it will lead to returning at full-employment level by 2022. Notably, the Congressional Budget Office has projected full employment by 2024 in absence of this relief package.
Moderate job growth in January clearly indicates that the U.S. economy is still suffering from coronavirus-led devastations and full recovery will take a long time. Consequently, investors' expectations have strengthened that the Congress will clear the path of President Biden's proposed $1.9 trillion coronavirus-aid package in a law.
Meanwhile, the U.S. government has ramped up nationwide COVID-19 vaccine deployment. As of Feb 8, at least 32,780,860 doses administered. New cases of infections have also declined on average. Notably, the Biden administration has targeted to administer at least 100 million doses of vaccine during its first 100 days in office.
Airline Stocks Rise on Stimulus Hope
Airline stocks rose as the proposed fiscal stimulus will include $14 billion for the airline payroll assistance. Consequently, shares of United Airlines Holdings Inc. (UAL - Free Report) , Delta Air Lines Inc. (DAL - Free Report) and American Airlines Group Inc. (AAL - Free Report) surged 5.2%, 5.1% and 3.4%, respectively. United Airlines and American Airlines carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks That Have Made Headline
BP Enters Lucrative U.K. Offshore Wind Market With 2 Leases
BP plc (BP - Free Report) recently announced that it has entered into the U.K. offshore wind market with two massive leases. (Read More)
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>