The Dow Jones Industrial Average climbed on Monday as investors piled into economic comeback plays after Senate approval of a new Covid stimulus package, while a continuous sell-off in high-flying tech shares put pressure on the broader market.
 | MON, MAR 08, 2021 | | | | DOW | | NAME | LAST | CHG | %CHG | | AAPL | 116.36 | -5.06 | -4.17% | | MSFT | 227.39 | -4.21 | -1.82% | | CSCO | 47.51 | +1.26 | +2.72% | |
| | S&P 500 | | NAME | LAST | CHG | %CHG | | AAPL | 116.36 | -5.06 | -4.17% | | GE | 14.17 | +0.57 | +4.19% | | F | 12.65 | +0.38 | +3.10% | |
| | NASDAQ | | NAME | LAST | CHG | %CHG | | AAPL | 116.36 | -5.06 | -4.17% | | AMD | 73.96 | -4.56 | -5.81% | | TSLA | 563.00 | -34.95 | -5.84% | |
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What was a good day for reopening themed stocks wound up being a painful one for the tech sector on Monday. Stocks bounced at the beginning of the day as David Tepper, founder of Appaloosa Management, told CNBC's Joe Kernen that he was bullish on equities and that he expects interest rates to stabilize. When the markets closed, the Dow Jones Industrial Average climbed just over 300 points, while the S&P 500 slid 0.5%. The Nasdaq Composite fared the worst of the indexes, spending most of the day down and falling 2.4%. The tech-heavy index is now down 10% from its recent closing high, correction territory.
A daily battle is unfolding in techland, where investors are trying to evaluate whether the sell-off has run its course yet. It was most evident Monday in shares of electric car manufacturer Tesla, which at one point traded into the green and then turned lower to end the day down 5.8%.
 Travel-oriented stocks enjoyed a lift: United Airlines rose more than 7%, while Southwest Airlines climbed nearly 6.4%. The Walt Disney Co. was also up close to 6.3% as California rolled out guidance on reopening amusement parks. Regional banks also had a strong day, as the SPDR S&P Regional Banking ETF rose about 2.5% for the day. Bank stocks have been responding positively to higher interest rates. Morgan Stanley expects midcap banks to outperform as the 10-year Treasury yield rises. "We found that in the one month, two months, and one year following large increases in the 10-year yield, the trajectory of bank stock performance followed that of the 10-year Treasury yield 77% of the time," Ken A. Zerbe, an analyst with Morgan Stanley, noted in a report.
"So when Treasury yields continued to rise, bank stocks continued to rally. This is important because our base case expectation is for rates to continue to move higher over the course of the year," he said. |
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