Schaeffer's 43rd Anniversary Stock Picks in 2024

Wall Street Bets on Economic Recovery as Stocks Make Comeback

Upbeat manufacturing data helped bolster investor sentiment by midday

Digital Content Manager
Jan 5, 2021 at 4:28 PM
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The Dow staged an impressive comeback on Tuesday, finishing the day with a 167-point pop after a morning spent swimming in red ink. Sentiment on Wall Street brightened during the second trading day of 2021 as investors brushed off growing COVID-19 cases and uncertainty surrounding the Georgia runoff election to focus on the possibility of a strong economic recovery. Upbeat manufacturing data and a notable jump in oil prices helped boost sentiment, allowing both the S&P 500 and Nasdaq Composite to reverse losses from earlier in the day and finish with modest gains. 

Continue reading for more on today's market, including:

  • Unpacking another one of Schaeffer's top picks for 2021. 
  • BBBY showed surprising resilience ahead of its quarterly report. 
  • Plus, behind Twitter's latest podcast acquisition; LULU gets an upgrade; and MU pops ahead of earnings.  

The Dow Jones Industrial Average (DJI - 30,391.60) added 167.7 points, or 0.6% on Monday. Twenty-two of the blue-chip components saw gains for the day, with Boeing (BA) leading the charge with a 4.4% pop. Visa (V), meanwhile fell to the bottom of the eight losers on a 1.5% dip.

Meanwhile, the S&P 500 Index (SPX - 3,726.86) tacked on 26.2 points, or 0.7% and the Nasdaq Composite (IXIC - 12,818.96) rose 120.5 points, or nearly 1%.

Lastly, the Cboe Volatility Index (VIX - 25.34) lost 1.6 points, or 6%. 

Closing Summary 0105

NYSE 0105

  1. Two analysts have already lifted their price targets ahead of Apple's (AAPL) highly anticipated earnings event, slated for later this month. Both Canaccord and Walkley upped their price estimates, citing the 5G upgrade cycle and strong demand for the iPhone 12. (MarketWatch)
  2. Department store staple Macy's (M) will be closing 45 of its locations by mid-year as part of its plan to shutter 125 stores by 2023.  (CNBC) 
  3. Unpacking Twitter's recent podcast acquisition
  4. Deutsche Bank has high hopes for Lululemon stock.
  5. Breaking down Micron stock's double upgrade ahead of earnings.  

There were no notable earnings reports today.

UVOL 0105

Oil Hits 10-Month Highs on OPEC+ Agreement

Oil surged to its highest level since February today following the Organization for Petroleum Exporting Countries and their allies' (OPEC+) decision to hold production outputs steady in February, which includes an additional 1 million barrel cut from Saudi Arabia. February-dated crude added $2.31, or 4.9%, to settle at $49.93 per barrel, and earlier touched an intraday high of $50.20. 

Uncertainty surrounding the Georgia runoff elections bolstered gold today, as investors turned toward the safe haven commodity. February-dated gold added $7.80, or 0.4% for the day, to settle at $1,954.40 an ounce.

 

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