Stocks traded mixed on Monday as investors looked ahead at a jammed packed week of economic data, corporate quarterly earnings results and the Federal Open Market Committee's meeting this week; all things that will give the market more outlook direction. Traders also are cautiously optimistic towards the Congressional debate over President Joe Biden's $1.9 trillion stimulus package in the week ahead.
The S&P 500 and Nasdaq posted a volatile session on Monday, with both benchmarks turning negative intraday, but ultimately climbing higher in afternoon as stimulus sentiment remained optimistic. The tech-heavy Nasdaq closed at a record high on positive FAANG stock outlooks.
13 Dow components and 111 S&P 500 companies are scheduled to report quarter earnings in the busy week ahead, including Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Tesla (NASDAQ: TSLA), McDonald's (NYSE: MCD), Honeywell (NYSE: HON), Caterpillar (NYSE: CAT), and Boeing (NYSE: BA).
Here's how the market settled to start the week:
S&P 500 Index (NYSE: SPY): +0.36% or +13.89 points to 3,855.36
Dow Jones Industrial Average (NYSE: DIA): -0.12% or -37.04 points to 30,959.94
Nasdaq Composite Index (NASDAQ: QQQ): +0.69% or +92.93 points to 13,635.99
For Stocks, GameStop (NYSE: GME) shares took a wild ride on Monday, soaring more than 140% to top $150 at one point as a group of retail investors active in online chat rooms sought to squeeze out short sellers. The stock then fell, briefly turning negative, but ultimately finishing the session 18% higher. Shares of other short stocks like Bed Bath and Beyond (NASDAQ: BBBY) and AMC Entertainment (NYSE: AMC) closed 1.6% and 25.9% higher due to the volatile trading session.
For Sector Performance, sectors on the S&P 500 ended mostly higher, with Utilities (NYSE: XLU) leading gains by finishing up almost 2% higher. Energy (NYSE: XLE), Financials (NYSE: XLF), Industrials (NYSE: XLI) and Materials (NYSE: XLB) were the only industries to close in negative territory.
For Commodities and Currency, the U.S. Dollar (NYSE: UUP) rose on Monday as volatility in global stock markets weakened risk sentiment. The dollar index, which tracks the greenback against other rival currencies, was up about 2% higher at 90.393. Gold (NYSE: GLD) prices pared gains on Monday on the stronger dollar, but ongoing stimulus optimism kept losses at a minimum. Spot gold increased 0.1% to $1,854.81 per ounce, while U.S. gold futures settled 0.1% lower to $1,855.20 per ounce. Crude oil futures climbed higher as outlook sentiment turned positive, but demand fears by coronavirus lockdown limited gains. International benchmark Brent Crude (NYSE: BNO) rose by $0.31 to $55.72 per barrel, while domestic index West Texas Intermediate (NYSE: USO) gained 0.96% higher at $52.77 each.
For Tuesday, market participants will focus on January's final consumer confidence index reading, as well as quarterly earnings from companies like Microsoft and Johnson & Johnson (NYSE: JNJ).