Wall Street ends mixed as stocks pull back after promising start

4:15pm: Bitcoin continues to soar

The Dow closed up 64 points, 0.2%, at 31,523. Meanwhile, the Nasdaq slipped 48 points, 0.3%, to 14,048, and the S&P 500 ticked down 2 points, less than 0.1%, to 3,933.

The 10-year Treasury yield climbed above 1.3%, its highest level since February 2020. Some on Wall Street worry that higher rates could negatively impact an economy still saddled with the coronavirus pandemic, according to CNBC.

Bitcoin continued to make waves, crossing the $50,000 threshold for the first time Tuesday.

12.15pm: Wall Street mixed

Wall Street shares were mixed at lunch after the holiday weekend as the highs of earlier were tempered by Treasury bonds rising to the highest levels in a year.

The Dow Jones Industrial Average added nearly 17 points at 31,475. The S&P 500 shed around four at 3,930, while the Nasdaq shed around 63 at 14,032.

“Record highs were registered on Wall Street as stocks commenced trading this week, after the long weekend – the market remained closed yesterday as it was President’s Day,” said David Madden, market analyst at CMC Markets.

“Investor confidence is still reasonably high as stimulus hopes still circulate. To a lesser extent, the mood was lifted by the prospect of the world economy edging back to normality as vaccines are administered.” 

The ten-year Treasury bond hit a rate near 1.3% earlier, around the highest level since last March, when Wall Street selling reached its peak amid the pandemic.

10.20am: Proactive North America headlines:

LiteLink Technologies Inc (CSE:LLT) (OTCMKTS:LLNKD) (FRA:C0B0) to acquire an ownership interest in Canadian cryptocurrency exchange CatalX CTS

Cabral Gold Inc (CVE:CBR) (OTCPINK:CBGZF) (FRA:C3J) adds third drill rig to 5,000m program at Cuiú Cuiú project in Brazil

American Resources Corporation (NASDAQ:AREC) signs exclusive licenses for rare earth mineral processing and graphene patents from Ohio University

Predictmedix Inc (CSE:PMED) (OTCQB:PMEDF) notes recent deployment of its screening technology in Tampa Bay, Florida

Great Bear Resources Ltd (CVE:GBR) (OTCQX:GTBAF) (FRA:0G6A) celebrates 250-hole milestone at LP Fault with new results of up to 32 grams per ton gold

Gatling Exploration Inc (CVE:GTR) (OTCQB:GATGF) hails more near surface, gold mineralization at flagship Larder project in Ontario

INDVR Brands Inc (CSE:IDVR) (OTCMKTS:CAAOF) (FRA:3YX) generates record January sales for its Honu brand in Washington state

Nextech AR Solutions Corp (OTCQB:NEXCF) (NEO:NTAR.NE) (CSE:NTAR) (FRA:N29) beefs up sales team with two top-tier executive hires from Fastly and Salesforce.com

XPhyto Therapeutics Corp (CSE:XPHY) (OTCQB:XPHYF) (FRA:4XT) touts completion of European regulatory application process for rapid coronavirus test

DRDGOLD Limited (NYSE:DRD) (JSE:DRD) on track to reach upper end of fiscal 2021 output guidance as revenue surges 41% in first half

9.40am: Wall Street starts positively

Wall Street has made a positive start to the post-Presidents Day trading week as the main indices began Tuesday’s session in the green.

In the early minutes of trading, the Dow Jones Industrial Average was up 0.37% at 31,573 while the S&P 500 climbed 0.31% to 3,946 and the Nasdaq rose 0.42% to 14,155.

Despite the positive start for the wider market, software group Palantir Technologies Inc (NYSE:PLTR) was one the back foot in early deals, sliding 5.8% to US$29.96 after it reported a surprise loss in its quarterly earnings, although revenues did beat expectations.

Meanwhile, pharmacy group CVS Health Corp (NYSE:CVS) managed to top estimates in its own results as it received a sales boost from coronavirus testing, however, the shares struggled to make headway and were down 0.3% at US$74.

7:50am: Wall Street looks to play catch-up

Having missed out on yesterday’s bumper day for stock markets, US indices have some catching up to do today.

Having closed on Friday at 31,458, the Dow Jones Industrial Average is expected to open around 200 points higher today.

The S&P 500 is tipped to rise 23 points to 3,957 and the Nasdaq 100 is on course to open 74 points better at 13,882.

“The ‘risk-on’ mood continues as equity indices around the world move further into record territory thanks to optimism on the vaccine rollout and the increasing likelihood that the US will pass President Biden’s full US$1.9tn stimulus package,” noted Marshall Gittler at BDSwiss.

There’s not much macroeconomic news in the US today so traders will get the chance to ease back into the old routine while keeping half an eye on the blast of cold weather stateside that has seen electricity prices head higher.

“The data calendar is bare in the United States today, where the big chill will probably knock stimulus-watch off the front pages. Nevertheless, Wall Street should come into the office remotely in full stimulus and vaccine-led recovery mode. Keep buying everything,” was the advice of Oanda’s Jeffrey Halley.

On the coronavirus front, 55,000 cases were reported in the US yesterday, down 29% from Monday last week, although severe weather depressed testing activity.

“The number of tests fell 21% from Monday last week but, encouragingly, the proportion of positive tests fell to 4.9% from 5.4% over the same period,” reported Ian Shepherdson at Pantheon Macroeconomics.

“Test positivity usually rises when testing is depressed by events like holidays or severe weather because people seeking precautionary tests are more likely to wait. Taking a longer view, the positivity rate has fallen by more than half since its early January peak, even though the seven-day average number of tests has fallen by 23%.

“The seven-day average number of confirmed cases has now dropped by 65% from the peak, on January 11, and the rate of decline is steady at about 22% per week. A combination of tightened restrictions late last year, immunity from prior infection and a rising vaccination rate—18% of adults have now had at least one shot—is crushing the original Covid variant,” Shepherdson said.

Four things to watch for on Tuesday:

• Some key names in the earnings diary today include pharmacy chain CBS Health Corp (NYSE:CVS), insurance corporation American International Group Inc (NYSE:AIG) and cloud communications firm RingCentral Inc (NYSE:RNG)
• Shares in software firm Palantir Technologies Inc (NYSE:PLTR) will also be eyed after the company reported a surprise loss in its results before the opening bell, although revenues did come in ahead of forecasts
• On the macro front, the New York Empire State manufacturing index for February may draw a few eyeballs, as well as a speech this afternoon from Fed board member Michelle Bowman
• Bitcoin is also likely to be in focus after the cryptocurrency hit another milestone by surpassing US$50,000 in value earlier on Tuesday

Story by ProactiveInvestors