Major Benchmarks Log Tumultuous Week, Bond Yields Continue to Rise

Earnings season is winding down, though plenty of names were still on the docket this week

Assistant Editor
Feb 26, 2021 at 1:10 PM
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The final week of February started on a shaky foot. On Monday, the Dow finish marginally higher, while the S&P 500 logged its fifth-consecutive loss, and the Nasdaq plummeted over 300 points. Tuesday was another mixed bag, though the S&P 500 did manage to snap its losing streak. By Wednesday, Wall Street looked to be back on track, with the major indexes finishing the session higher, and the Dow, in particular, popping over 420 points to lock in a new record close.

On Thursday, however, the blue-chip index was on track to erase the gains it made during the previous session's wild rally, as the 10-year Treasury yield hit its highest level in a year. The major indexes, unsurprisingly, succumbed to the day's volatility, all closing deep in the red. Heading into the weekend, bond yields are continuing their climb higher, leaving the Dow in a freefall, pointed toward triple digit losses once again.

Corporate Drama and Bitcoin Buzz Abound

Several big names were making waves this week, including Carnival (CCL), which announced a profit-generating initiative in the form of a public share offering of $1 billion worth of shares of its common stock. GameStop (GME) is also in the news again after its CFO announced his resignation, though the company said his leaving was unrelated to the recent Reddit-fueled trading frenzy. Meanwhile, Tesla (TSLA) competitor, Nikola's (NKLA) founder Trevor Milton is being investigated after an SEC filing shows he made misleading statements to investors regarding the company's technology. Rounding things out, Riot Blockchain (RIOT) and Square (SQ) are both jumping on the Bitcoin trend.

Quarterly Reports Pour In as Earnings Season Winds Down

Earnings season is coming to a close, but there were a number of big names that turned in reports this week. Airbnb (ABNB) posted its first report as a publically traded company, posting wider-than-expected losses, though revenue topped estimates. Next up, a flurry of bull notes were dished out for NVIDIA (NVDA) following the company's stellar earnings and revenue beat. In other earnings news, Macy's (M) posted its first quarterly profit in a year, and issued a better-than-expected 2021 forecast. Lastly, blue-chip home improvement concern Home Depot (HD) also turned in an earnings beat, but the stock fell after the company withheld its 2021 guidance.

March Starts Slow With Earnings Still Trickling In

The beginning of March will be relatively quiet as far as economic data and earnings are concerned, with employment data likely to be the main focus of the week. On the earnings front, there's still a few names slated to report, including American Eagle (AEO), AMC Entertainment (AMC), Costco (COST), and Zoom Video (ZM). In the meantime, Schaeffer's Senior Quantitative Analyst Rocky White asks a big question: is the rising yield curve worth fearing? Also be sure to check out our Monday Morning Outlook, where Schaeffer's Senior V.P. of Research Todd Salamone offers up two top strategies for playing sentiment-based risk

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