The Dow added roughly 27 points for the day
The final week of February is off to a rocky start, as investors remain concerned about the rise in bond yields. The Dow managed to reverse earlier losses to add roughly 27 points, but the S&P 500 settled lower for its fifth consecutive loss. Meanwhile, the tech-heavy Nasdaq sunk more than 300 points, dragged down by the likes of Apple (AAPL) and Tesla (TSLA), as investors wondered what negative impacts higher Treasury yields may have on companies that rely on easy borrowing.
Elsewhere, Wall Street is holding its breath over Federal Reserve Chairman Jerome Powell's testimony before the Senate Banking Committee tomorrow, which will give a snapshot of the country's economic situation. In terms of Covid-19 developments, the White House is shipping the Covid-19 doses delayed by last week's severe winter storms, and the strain first discovered in South Africa is now present in New York.
Continue reading for more on today's market, including:
- Discovery stock reeled in record highs after its earnings beat.
- Board nominations send retail giant surging to pre-pandemic levels.
- Plus, engine failure engulfs BA in more drama; analyst called one retailer "underappreciated;" and options bulls eye GOLD despite bear note.
The Dow Jones Industrial Average (DJI - 31,521.69) added 27.4 points, or 0.09% for the day. Walt Disney (DIS) led the Dow components with a 4.4% rise, while Nike (NKE) paced the laggards, falling 3.8%.
Meanwhile, the S&P 500 Index (SPX - 3,876.50) fell 30.2 points, or 0.8% for the day. The Nasdaq Composite (IXIC - 13,533.05) dropped 341.4 points, or 2.5% for the day.
Lastly, the Cboe Volatility Index (VIX - 23.45) added 1.4 point, or 6.4% for the day.
- U.K. Prime Minister Boris Johnson said the country is "on a one-way road to freedom” after Covid-19 lockdowns, thanks to strong vaccination efforts. (CNBC)
- Treasury Secretary Janet Yellen said bitcoin is a highly speculative, “inefficient” form of digital currency, that is often used for illegal transactions. (MarketWatch)
- More drama for Boeing stock after engine failure leads to jet suspensions.
- Analyst says this apparel stock's digital investments are "underappreciated."
- Options bulls are still set on Barrick Gold stock despite a fresh bear note.
Oil Nabs Annual High in Winter Storm Aftermath
Oil prices surged to their highest close in over a year on Monday, with U.S. crude output still on a slow path to recovery from the winter storms that either shut off or slowed down refineries over the past week. Some also believe potentially frozen pipelines, as well as infrastructure examinations will slow down a return to normal production levels. In turn, March-dated crude added $2.25, or an impressive 3.8%, to settle at $61.49 per barrel.
Gold prices were also higher, shooting up above the significant $1,800 level to nab their highest close in more than a week, as inflation fears weighed heavy on investors' minds. Rising treasury yields and a weaker U.S. dollar also contributed to the yellow metal's rise. In response, April-dated gold added $31.00, or 1.7%, to settle at $1,808.40 an ounce.