All major benchmarks scored intraday highs before pulling back
Stocks returned from the holiday weekend looking to extend a red-hot February rally, but ended the day mixed after a volatile session. The Dow finished up 64 points and earlier set a fresh intraday high. Meanwhile, the S&P 500 struggled for direction before finishing with a slight loss, while the tech-heavy Nasdaq sunk deeper into the red. Earlier in the session, both indexes nabbed their own fresh records as well.
Rising bond yields are one of the main culprits behind today's volatility. Wall Street is also concerned rising interest rates will make the market less appealing to investors, taking a toll on the tech sector and other segments that have enjoyed the low rates. Elsewhere, the Cboe Volatility Index remained north of the significant 20 level, after dipping beneath it and flashing what many considered to be a "risk-on" signal.
Continue reading for more on today's market, including:
- Vaccine tailwinds weren't enough to lift CVS Health stock.
- Improved demand gave this airline stock a boost.
- Plus, STZ retreats from records on lawsuit; Dropbox stock eyes post-earnings pop; and how Bitcoin pushed one tech name higher.
The Dow Jones Industrial Average (DJI - 31,522.75) jumped 64.4 points, or 0.2% on the day. Salesforce.com (CRM) led the Dow components with a 3.4% rise, while Walgreens Boots Alliance (WBA) paced the laggards, falling 2.5%.
Meanwhile, the S&P 500 Index (SPX - 3,932.59) fell 2.2 points, or 0.06% for the day. The Nasdaq Composite (IXIC - 14,047.50) dropped 48 points, or 0.3% for the day.
Lastly, the Cboe Volatility Index (VIX - 21.46) added 1.5 point, or 7.5% for the day.
- Researchers say the bulk of jobless claims are due to repeat layoffs during the pandemic, which are putting long-term unemployment near new records. (CNBC)
- Moderna (MRNA) provided an update to its Covid-19 vaccine supply timeline, noting it now expects to deliver 300 million doses to the U.S. by late July. (MarketWatch)
- Constellation Brands stock retreated from records amid legal drama.
- Dropbox stock could soon see its first post-earnings pop in a year.
- Bitcoin buzz pushed this business intelligence name even higher.
Oil Prices Surpass $60 Mark as Winter Storms Rage
Oil prices finished higher on Tuesday, after surpassing the $60 level for the first time in over a year. The major pop came as a winter storm engulfed the southern United States, shutting down refineries and leading to power outages in multiple states. In turn, natural gas prices also surged. March-dated crude rose 58 cents, or 0.1%, to settle at $60.05 per barrel.
Meanwhile, rising bond yields knocked gold prices below the $1,800 mark for the first time in more than a week. Plus, analysts expect the U.S. 10-year bond yield to continue climbing, even after bond rates touched an annual high amid stimulus hopes and falling Covid-19 cases. In response, April-dated gold dropped $24.20, or 1.3%, to settle at $1,799 an ounce.