Here are today’s market moves:
S&P 500 up 0.032% to 3,853.07
Dow Jones down 0.040% to 31,176.01
Nasdaq up 0.55% to 13,530.92
Gold: $1,868
Bitcoin: $30,300
US10Y: 1.118%
What happened?
The Nasdaq Composite rallied to a record close Thursday as investors showed renewed interest in megacap technology companies ahead of their earnings reports in the weeks ahead.
Despite a turbulent start to 2021, U.S. stocks have largely continued to climb, with all three indexes currently up 1.9% or more year-to-date. The Nasdaq, in particular, has posted a strong performance, gaining 5% for the year, while the Russell 2000 index of small-cap stocks has risen 8.4%.
Driving some of those gains has been optimism that further economic recovery may be ahead under President Biden’s new administration. Mr. Biden has called for a $1.9 trillion Covid-19 relief plan that includes direct payments to households and more money for testing and vaccine distribution. On Wednesday, the day that Mr. Biden took office, the S&P 500 and the Dow posted their best Inauguration Day performances since 1985, when Ronald Reagan was sworn in for his second term, according to Dow Jones Market Data.
Still, the U.S. economy faces major obstacles, with fresh data Thursday showing that about 900,000 workers filed for unemployment benefits for the week ended Jan. 16, as companies continued to lay off workers amid a surge in Covid-19 cases.
Traders this month have been closely eyeing earnings to see if they support the strong run across markets in recent months. Many investors are still betting on an economic recovery this year as Covid-19 vaccinations ramp up, increasing prospects for future earnings.
Earnings results so far have been better than expected. The percentage of S&P 500 companies that had beat estimates hovered slightly below 90% before Thursday’s close, according to FactSet. Several companies have been rewarded by investors for their strong earnings results.
United Airlines fell more than 4 percent, after it said it lost $1.9 billion in the fourth quarter, bringing its total losses for 2020 to just over $7 billion, its worst year since merging with Continental Airlines a decade ago.
This Week
Monday: Martin Luther King Day
Tuesday: The Senate confirmation hearing of Janet Yellen as Treasury secretary begins; Earnings expected from Bank of America, Goldman Sachs, and Netflix
Wednesday: Joe Biden takes office as U.S. president; Earnings expected from Morgan Stanley, United Airlines, and Procter and Gamble
Thursday: Weekly jobless claims. Earnings expected from IBM and Intel
Friday: Earnings expected from Ally Financial