Wall Street rebounded following news that President Joe Biden will meet with GOP senators on a relief package — and more in Monday’s stock market recap.
Republicans proposed a $618 billion stimulus bill, which includes $300 per week unemployment benefits through June and $1,000 direct payments. However, the Democrats are looking to use a procedural move, or budget reconciliation, to act without GOP support with Biden’s plan calling for $1,400 in direct payments.
The Nasdaq jumped 2.6% following the intraday run to 13,431.
The Russell 2000 soared 2.5% after trading to a high of 2,130.
The S&P 500 added 1.6% with the late-day peak reaching 3,784.
The Dow was up 0.8% with the afternoon high hitting 30,335.
Technology and Consumer Discretionary led sector strength with gains of 2.5%. There was no sector weakness.
Shares of Ford Motor Co. (NYSE: F) rose nearly 3% while tapping an intraday high of $11.44. The company announced a strategic partnership with Alphabet Inc. (Nasdaq: GOOGL), or Google, to accelerate Ford’s transformation and reinvent the connected vehicle experience. Ford also named Google Cloud its preferred provider as part of the new six-year partnership.
United Parcel Service Inc. (NYSE: UPS) will announce quarterly numbers ahead of Tuesday’s opening bell. The company is expected to report a profit of $2.14 a share on revenue of $22.87 billion. The high estimate is at $2.33 a share with the low forecast at $1.97 and would equate to a 19-cent beat or a 17-cent miss.
The company has topped estimates the past two quarters by 38 cents and $1.06, while missing by eight cents and matching preceding those prior two quarters. There are 27 analysts that cover the stock with five Strong Buy ratings, two Buys, 19 Holds, and one Underperform recommendation.
From the global stock market recap, European markets closed higher despite disappointing economic news.
The Belgium20 soared 1.6% and Germany’s DAX 30 was higher by 1.4%. France’s CAC 40 and the Stoxx 600 were up 1.2% while the UK’s FTSE 100 rose 0.9%.
Eurozone unemployment held steady at 8.3% in December.
UK final IHS Markit/CIPS manufacturing PMI checked in at 54.1, down from a surge to 57.5 in December, as businesses raced to beat the January 1st Brexit deadline.
Asian markets showed strength following news China’s manufacturing PMI stayed above the 50 mark for the 11th consecutive month.
South Korea’s Kospi zoomed 2.7% and Hong Kong’s Hang Seng rallied 2.2%. Japan’s Nikkei jumped 1.6% and Australia’s S&P/ASX 200 advanced 0.8%. China’s Shanghai was up 0.6%.
China’s manufacturing Purchasing Managers’ Index came in 51.3 for January but slightly lower than December’s reading of 51.9.
Markit manufacturing PMI inched up to 59.2 in the final January read, a new record high, after gaining 2 points to 59.1 in the preliminary read. Output prices increased to 60.4 from 58.6 in December and represented the 8th-straight month of expansion.
ISM Manufacturing Index for January slipped -1.8 points to 58.7 after rising 2.8 ticks to 60.5 in December. The components were mixed as employment edged up to 52.6 from 51.7 while new orders sank -6.4 points to 61.1 from 67.5. New export orders fell -2.6 points to 54.9 from 57.5 while imports improved 2.2 points to 56.8 from 54.6. Prices paid jumped 4.5 points to 82.1 from 77.6, the highest level since early 2011.
The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) snapped a two-session slide after testing a midday high of $152.36. Current and lower resistance at $152-$152.50 was recovered. A close above the latter would signal a retest towards $163.50-$154.
Support is at $151.50-$151 followed by $150.50-$150.
The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) retreated following the intraday fade to 29.03. Key support at 30 was breached but held. Continued closes back below this level would signal additional weakness towards 28-27.50 and the 200-day moving average.
Resistance is at 32-32.50 followed by 33.50-34.
The SPDR Small-Cap 600 ETF (NYSE: SLY) snapped a four-session losing streak with the intraday high reaching $86.25. Near-term and lower resistance at $86-$86.50 was cleared and held. A close above the latter would likely suggest additional upside towards $87.50-$88.
Shaky support is at $84.50-$84 followed by $82.50-$82.
RSI (relative strength indicator) is back in an uptrend with key resistance at 60 holding. A close above this level would indicate additional strength towards 65-70. Support is at 55-50.
The Financial Select Sector SPDR Fund (NYSE: XLF) was up for the second time in nine sessions after trading to a second-half peak of $29.37. Fresh and lower resistance at $29.25-$29.50 and the 50-day moving average were reclaimed. A close above the latter would indicate a continued bounce towards $29.75-$30.
Support is at $29-$28.75 with a close below the latter signaling weakness towards $28.50-$28.25 and levels from mid-December.
RSI is back in a slight uptrend with lower resistance at 45-50 getting recovered. A move above the latter would indicate a run towards 55-60. Key support is at 40 and a level that has been holding since late October.
Check back after the closing bell for the most important news and numbers in the WealthPress stock market recap.