Stock market today
Another mixed close today for the US stock market. Dow Jones outperformed and closed 90 points higher at a record high. S&P 500 and Nasdaq both closed lower. And small-cap stocks underperformed. The closing numbers for the US stock market today are:
S&P 500: 3,931.33,-1.26(-0.03%)
Dow 30: 31,613.02,+90.27(+0.29%)
Russell 2000: 2,256.78,-16.12(-0.71%)
Stock market news
“Stocks were mixed on Wednesday, with the Dow reaching a fresh record high after new data showed retail sales surged at the fastest clip since June at the start of the year. The Nasdaq underperformed as tech stocks lagged during the session.
Retail sales surged at a 5.3% monthly rate in January, coming in well above the rise of 1.1% consensus economists had expected, and ending a three-month streak of declining monthly sales.
“The 5.3% month-over-month surge in retail sales in January completely smashed our own and the consensus expectation of a more modest 1% gain and highlights how quickly reopenings and the $600 stimulus checks have translated into stronger spending,” Michael Pearce, Capital Economics senior economist, said in a note. “That said, with the stimulus checks spent more quickly that we had expected, we expect retail sales to fall back in February.”
Meanwhile, shares of Chevron (CVX), E.W. Scripps & Co. (SSP) and Verizon (VZ), the parent company of Yahoo Finance, jumped after Warren Buffett’s Berkshire Hathaway disclosed new stakes in each of the companies. Bitcoin prices (BTC-USD) rocketed above $51,000, after breaking above $50,000 for the first time ever on Tuesday.
Markets over the past month have priced in the likelihood that additional, significant fiscal stimulus will help propel the economic recovery and work alongside ongoing monetary stimulus from the Federal Reserve. The yield on the benchmark 10-year Treasury note hit a one-year high of about 1.31% on Tuesday, amid hopes of a firming economy.
West Texas intermediate crude oil prices (CL=F) added to gains after settling above $60 per barrel for the first time since January 2020 on Tuesday, as new supply concerns compounded with optimism over a post-pandemic resurgence in demand for travel and fuel. Domestic oil output has slumped by nearly one-third due to freezing temperatures in Texas, Bloomberg reported on Tuesday.
As stocks continue to set fresh record highs, some strategists have warned that markets may need to take a breather before moving higher later this year.”
Stock market data: Yahoo Finance
Stock market commentary
A pullback and correction for the US stock market are very likely. Major stock indices are at record highs. And speculation in SPACs or meme stocks, viral stocks has sent many stocks at irrational price levels given their valuation. Small-cap stocks continue to have strength and momentum. Tech stocks are the ones that seem more likely to have a stronger correction as euphoria settles down and a return to valuation should be apparent.