Dow hits another record | Airline shares jump on travel outlook | AstraZeneca vaccine issues?
EDITOR'S NOTE
After the U.S. market seemingly alternated between cyclical days and tech rebounds for several weeks, a mixed bag of stocks pushed the Dow and S&P 500 to record highs on Monday.
Airlines were some of the day's biggest winners, with passenger data picking up and executives touting strong bookings, putting the U.S. Global Jets ETF up roughly 22% over the past month. However, fellow cyclical sectors like energy and financials fell. The tech-heavy Nasdaq outperformed the Dow and S&P 500, but the defensive utilities sector were one of Wall Street's best for the session.
This muddled move higher comes as the equity market seems to be in between potential catalysts.
The fourth-quarter earnings season saw solid beats and analysts hiking profit forecasts for the year ahead, while policymakers passed another $1.9 trillion in stimulus spending.
But looking ahead, Federal Reserve officials meet on Tuesday and Wednesday, where the recent spike in bond yields is likely to be a key topic of discussion, and the accelerating vaccine rollout means that predictions of a strong economic rebound are likely.
"We see market pricing as a reflection of both growing fear of a more hawkish Fed and an inflating confidence in the economic outlook," Morgan Stanley's global strategy team said in a note. "At some point soon, both the Fed and economic data the Fed cares most about will have to perform in order to prevent this optimism from deflating." TOP NEWS
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