Wall Street was mixed ahead of the House vote to impeach President Donald Trump for the second time — and more in Wednesday’s stock market recap.
The drama comes ahead of President-elect Joe Biden’s stimulus proposals on Thursday and the promise of the vaccine to allow a return to normal activities in the second half of this year.
The Nasdaq rose 0.4% after tagging an intraday peak of 13,171.
The S&P 500 advanced 0.2% following the morning pop to 3,820.
The Dow slipped eight points, or 0.03% after trading in a 61-point range with the low hitting 30,992.
The Russell 2000 bucked the trend after falling 0.7% despite tapping an all-time high of 2,131 shortly after the opening bell.
Utilities and Real Estate were the strongest sectors after rising 2% and 1.4%, respectively. Materials and Industrials led sector weakness after giving back 1% and 0.9%.
Shares of Intel Corp. (Nasdaq: INTC) soared 7% following news that CEO Bob Swan will be stepping down from the company and will be replaced by VMware Inc. (NYSE: VMW) CEO Pat Gelsinger. Additionally, Intel said it expects its fourth-quarter 2020 revenue and earnings-per-share to exceed its prior guidance provided in late October. At the time, Intel said it saw Q4 adjusted EPS of $1.10 on revenue of $17.4 billion.
The percentage of Nasdaq 100 stocks trading above the 50-day moving closed at 77.45%, up 2.95%. Near-term and lower resistance at 75%-77.50% was recovered. A move above the latter would indicate a retest towards 80%-82.5% and overbought levels from last week. Support is at 72.5%-70%.
The percentage of S&P 500 stocks trading above the 200-day moving average settled at 89.70%, up 0.40%. Key resistance at 90% was challenged but held. A close above the latter would signal strength towards 92.5% and the overbought high from mid-November. Support is at 87.50%-85%.
The global stock market recap showed European markets closed mixed.
The Belgium20 added 0.5% and the UK’s FTSE 100 slipped 0.1%. France’s CAC 40 climbed 0.2% while Germany’s DAX 30 and the Stoxx 600 added 0.1%.
Asian markets were also mixed for the second straight session as coronavirus jitters flared up again with China reporting a rise in cases and Japan widens the state of emergency.
China’s Shanghai was down 0.3% and Hong Kong’s Hang Seng was lower by 0.2%. Japan’s Nikkei rallied 1% and South Korea’s Kospi gained 0.7%. Australia’s S&P/ASX 200 nudged up 0.1%.
U.S. real average hourly earnings rose 0.4% in December, the largest monthly increase since the 5.5% jump in April. The 12-month pace accelerated to 3.7% year-over-year versus 3.2% in November.
MBA Mortgage Applications soared 16.7% last week and follows a 1.7% rebound previously. The 12-month pace was little changed at 61.8% year-over-year. A 20.1% surge in the refi index paced the increase after a 3% prior gain. The year-over-year pace slipped to 92.5% from 100.0%. The purchase index bounced 8% following a -1.6% decline. The 30-year fixed rate inched up to 2.88% from 2.86% while the five-year ARM rose to 2.66% from 2.63% previously.
St. Louis Federal Reserve President James Bullard said policy is less preemptive than it would have been in the past. He said the new framework where the Fed will let inflation run hot for a while in order to make up for the below-target trend for over a decade.
He stressed the need to regain policy credibility on the 2% target. He doesn’t want to put specific dates on quantitative easing tapering, but added it’s good to plan ahead and try to anticipate when it might happen.
The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) snapped a seven-session losing streak after testing an afternoon high of $153.07. Fresh and lower resistance at $153-$153.50 was breached but held. A close above the latter would indicate further strength towards $154.50-$155.
New support is at $152-$151.50 followed by $150.50-$150.
The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) fell for the second straight session with the intraday low tapping 21.92. Current and upper support at 22-21.50 was breached but held. A drop below the latter would indicate another retest towards the 20.50-20 area.
Resistance is at 23.50-24 and the 50-day moving average.
The SPDR S&P 500 ETF (NYSE: SPY) showed strength for the second straight session and closed up for the sixth time in seven after testing a morning peak of $380.86. Near-term and lower resistance at $380.50-$381 was cleared but held. A close above the latter would signal a run towards $381.50-$382 with last Friday’s all-time high at $381.49.
Support is at $379-$378.50 followed by $377.50-$376.
RSI is trying to curl higher with key resistance at 70 holding. A close above this level would suggest additional strength towards 75-80 and the late August/ early September highs. Support is at 65-60.
The SPDR Gold Shares (NYSE: GLD) fell for the fifth time in six sessions after trading to a late-day low of $173.05. Near-term and upper support at $173.50-$173 was breached and failed to hold. A close below the latter would signal another retest towards $172.50-$172 and the 200-day moving average.
Resistance is at $174.50-$175 and the 50-day moving average.
RSI is in a slight downtrend with upper support at 45-40 failing to hold. A close below the latter would suggest additional weakness towards 35-30 and levels from late November. Resistance is at 50.
Check back after the closing bell for the most important news and numbers in the WealthPress stock market recap.