Wall Street snapped a three-session slide after rebounding with the blue chips setting another all-time intraday high — and more in Friday’s stock market recap.
Better-than-expected housing numbers supported the bullish sentiment along with the potential for another stimulus package and the Federal Reserve’s tolerance of higher inflation.
The Russell 2000 rallied 2.2% after trading to a midday high of 2,275.
The Nasdaq nudged up 0.1% following the morning run to 13,985.
The Dow was up a point with the intraday all-time peak hitting 31,647.
The S&P 500 slipped 0.2% despite testing a first-half high of 3,930.
For the week, the Nasdaq slid 1.6%; the Russell 2000 sank 1.5%; the S&P 500 fell 0.7%; and the Dow was up 0.1%.
Materials and Energy were sector standouts after jumping 1.8% and 1.7%, respectively. Utilities and Consumer Staples led sector laggards with losses of 1.5% and 1.3%.
Uber Technology Inc. (NYSE: UBER) shares were lower after the U.K. Supreme Court rejected an appeal by the company and ruled its drivers should be classified as workers, not self employed. The high court ruled the claimants were employed by Uber as workers within English law. It added that for the purposes of the National Minimum Wage Regulations 2015, the claimants were engaged in unmeasured work.
The percentage of Nasdaq 100 stocks trading above the 50-day moving closed at 65.68%, down 3.92%. Near-term and upper support at 67.5%-65% failed to hold. A move below the latter would signal a retest towards 62.5%-60% and levels from late January. Resistance is at 70%-72.5%.
The percentage of S&P 500 stocks trading above the 200-day moving average settled at 86.93%, down 0.39%. Current and upper support at 85%-82.5% was challenged but held. A close below the latter would signal weakness towards 80%-77.5%. Resistance is at 87.5%-90% with the latter representing overbought levels from early January.
From the global stock market recap, European markets settled higher.
The Belgium20 rebounded 1.6% and the Stoxx 600 added 0.5%. France’s CAC 40 and Germany’s DAX 30 rose 0.8% while the U.K.’s FTSE 100 edged up 0.1%.
Asian markets were mixed for the second straight session.
South Korea’s Kospi climbed 0.7% and Hong Kong’s Hang Seng advanced 0.6%. China’s Shanghai was up 0.2%. Australia’s S&P/ASX 200 sank 1.3% and Japan’s Nikkei fell 0.7%.
Preliminary February Markit data showed the manufacturing PMI dipped -0.7 points to 58.5 after rising 2.1 ticks to 59.2 in January. Input prices rose to 73.3 from 65.1 while output prices gained to the highest since July 2008. The services index edged up 0.6 ticks to 58.9 following the previous 3.5 point climb to 58.3. The composite index inched up to 58.8 after the 3.4 point pop to 58.7.
Existing Home Sales rose 0.6% to 6,690,000 in January, versus forecasts for a print of 6,600,000, after rising 0.9% to 6,650,000 in December. Condo/coop sales climbed another 4.1% to 760,000 after the 2.8% bounce to 730,000 in December. Single-family sales were up 0.2% to 5,930,000 after edging up 0.7% to 5,920,000 previously. The months’ supply of homes was steady at 1.9. The median sales price fell to $303,900 from $309,200. Regionally, sales increased in the Midwest (1.4%) and South (3.2%) and declined in the West (-5.7%) and Northeast (-2.7%).
New York Fed President John Williams said he is not concerned about the rise in long-term yields and sees no evidence that asset prices are out of control. He did say, however, that there are signs of rising inflation expectations in long-term rates. He believes the run up in yields mostly reflects optimism over the recovery and vaccines. He added he is not worried that fiscal stimulus will be excessive after Treasury Secretary Yellen continues to argue for the $1.9 trillion Biden stimulus plan.
Williams said the economy should return to full strength sooner than later, adding the economy is still in a deep hole and will take some time to achieve a full recovery. He went on to say the FOMC is in wait-and-see mode in terms of bond buying, and the future course will depend on the economy’s performance.
The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) was down for the second straight session with the intraday low hitting $142.85. Prior and upper support from last March at $143-$142.50 was tripped but held. A close below the latter would indicate ongoing weakness towards $141.50-$141.
Lowered resistance is at $144-$144.50 followed by $145.50-$146.
The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) fell for the first time in four sessions after trading to a low of 20.84. Current and upper support at 21-20.50 was breached but held. A close below the latter would signal a retest towards 20-19.50.
Resistance is at 23-23.50 and the 50-day moving average.
The S&P 400 Mid Cap Index (NYSE: MID) snapped a three-session slide after testing an intraday high of 2,541. Near-term and lower resistance at 2,525-2,550 was cleared and held. A move above the latter and the recent all-time high of 2,563 would indicate additional strength towards 2,575-2,600.
Support is at 2,500-2,475 followed by 2,450-2,425.
RSI (relative strength index) is back in an uptrend with lower resistance at 65-70 holding. A move above the latter would signal additional strength towards 75 and the early January high. Support is at 60.
The Energy Select Sector SPDR Fund (NYSE: XLE) was up for the fourth time in five sessions after tagging a high of $46.36. Current and lower resistance at $46-$46.50 was cleared and held. A close above the latter would suggest additional strength towards $47-$47.50.
Support is at $45.50-$45.
RSI is back in an uptrend with lower resistance at 65-70 getting breached and holding. A close above the latter would signal strength towards 75 and the January high. Support is at 60-55.
Check back after the closing bell for the most important news and numbers in the WealthPress stock market recap.