The Dow Jones Industrial Average closed at 31,537.35 on Tuesday with a gain of 15.66 points or 0.05%. The S&P 500 closed at 3,881.37 for a gain of 4.87 points or 0.13%. The Nasdaq Composite closed at 13,465.20 for a loss of 67.85 points or -0.50%. The VIX Volatility Index was lower at 23.11 for a loss of 0.34 points or -1.45%.
Tuesday's market movers
The major U.S. indexes ended mostly flat Tuesday, with the Nasdaq recording a loss of 0.50%. Investors were watching bond yields in risk-off assessments. The 30-year Treasury bond ended with an annualized yield of 2.194%. Among bond funds, the SPDR Long-Term Corporate Bond ETF (SPLB, Financial) had a gain of 0.24% and the Eaton Vance Floating-Rate Advantage Fund (EAFAX, Financial) had a gain of 0.09%.
Afternoon comments from Federal Reserve Chair Jerome Powell before the Senate Banking Committee revived some investors' appetite. Powell commented that the Federal Reserve is not likely to make policy changes in the near term, regardless of some inflation and yield increases.
On the earnings calendar Tuesday:
- Square (SQ, Financial): Revenue of $3.16 billion increased 141.2% year over year and beat estimates by $50 million. Fourth-quarter GAAP earnings of 59 cents per share beat estimates by 59 cents and non-GAAP earnings of 32 cents beat estimates by 8 cents. Square announced the purchase of $170 million worth of bitcoin.
- Home Depot (HD, Financial): Revenue of $32.26 billion increased 25.1% year over year and beat estimates by $1.69 billion. Fourth-quarter GAAP earnings of $2.65 per share beat estimates by 3 cents. Home Depot announced a 10% dividend increase.
In other news:
- The $1.9 trillion stimulus proposal is expected to pass in the House of Representatives this week.
- Wells Fargo (WFC, Financial) is selling its asset management business.
- The S&P/Case-Shiller Home Price Index increased 0.8% in December and 10.1% year over year.
- The FHFA House Price Index increased 1.1% in December and 10.8% year over year.
- The Conference Board's Consumer Confidence Index increased to 91.3 in February from 88.9.
- The Richmond Fed Manufacturing Index was unchanged at 14.
- The Treasury held auctions for 52-week bills at a rate of 0.070%, 42-day bills at a rate of 0.025% and two-year notes at a rate of 0.119%.
Across the board:
- The S&P 500 Energy sector led gains, up 1.65%, as Texas refineries reopened.
- Cannabis stocks led losses for the day, though New Jersey signed its weed bill into law.
- Facebook (FB, Financial) gained 2.12% with announcement of an Australian agreement to restore news.
- Disney (DIS, Financial) +2.82%
Small-cap stocks
In small caps, the Russell 2000 closed at 2,231.31 for a loss of 19.76 points or -0.88%. The S&P 600 closed at 1,288.53 for a loss of 7.98 points or -0.62%. The Dow Jones U.S. Small-Cap Growth Index closed at 15,197.54 for a loss of 173.34 points or -1.13%. The Dow Jones U.S. Small-Cap Value Index closed at 10,387.24 for a gain of 28.19 points or 0.27%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 2,530.73 for a gain of 3.71 points or 0.15%; the S&P 100 at 1,765.91 for a gain of 0.99 points or 0.056%; the Nasdaq 100 at 13,194.71 for a loss of 29.03 points or -0.22%; the Russell 3000 at 2,346.84 for a loss of 0.22 points or -0.0092%; the Russell 1000 at 2,201.06 for a gain of 1.25 points or 0.057%; the Wilshire 5000 at 40,948.46 for a loss of 2.00 points or -0.0049%; and the Dow Jones U.S. Select Dividend Index at 764.41 for a gain of 3.95 points or 0.52%.
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