US Indexes Report Gains for February

The Dow Jones Industrial Average closed at 30,932.37 on Friday with a loss of -69.64 points or -1.50%. The S&P 500 closed at 3,811.15 for a loss of -18.19 points or -0.48%. The Nasdaq Composite closed at 13,192.35 for a gain of 72.91 points or 0.56%. The VIX Volatility Index was lower at 27.95 for a loss of 0.94 points or -3.25%.

For the week, the Dow Jones was down -1.8%, the S&P 500 had a loss of -2.5% and the Nasdaq returned -4.9%. For the month, the Dow Jones gained 3.2%, the S&P 500 gained 2.6% and the Nasdaq gained 0.9%. Year to date, the S&P 500 has a gain of 1.5%, the Nasdaq has a gain of 2.4% and the Dow Jones has a gain of 1.1%.

Friday's Market Movers

Stocks had a rough week, but the major indexes ended February with gains. Investors were watching risk-off trades as yields jumped during the week. The 10-year Treasury peaked with a yield of 1.54% on Thursday, ending at 1.44% Friday. The 30-year Treasury bond also peaked Thursday, topping out at 2.33% before falling to a five-day low of 2.17% Friday. The SPDR Long-Term Treasury ETF (SPTL) gained 3.24% Friday and the SPDR Long-Term Corporate Bond ETF (SPLB) gained 2.51%.

• SPTL 30-Year Financial Data
• The intrinsic value of SPTL
• Peter Lynch Chart of SPTL

Fourth quarter earnings reports finished up, with retailers ending the major headlines this week. In other news Friday:

• The House is expected to pass the COVID stimulus bill this weekend, though the Senate Parliamentarian says it won't include a $15 minimum wage.
• Personal income increased 10% in January following an increase of 0.6%. Personal spending increased 2.4% following a decrease of -0.4%.
• Wholesale inventories increased 1.3% in January following an increase of 0.5%.
• Retail inventories decreased -0.6 % in January following an increase of 1.9 %.
• The goods trade balance had a deficit of -$83.74 billion in January.
• The PCE Price Index increased 0.3% in January and 1.5% year over year. The Core PCE Price Index excluding food and energy increased 0.3% in January and 1.5% year over year.
• The Chicago PMI decreased to 59.5 in February from 63.8.
• The Michigan Consumer Sentiment Index decreased to 76.8 from 79. .
• The Baker Hughes oil rig count showed an increase of five rigs in the U.S., a decrease of nine rigs in Canada and an increase of 12 rigs internationally.

Across the board Friday:

• Johnson & Johnson (NYSE:JNJ) down -2.67% Friday, though its COVID vaccine did get an endorsement from the Food and Drug Administration Advisory Panel.
• GameStop (NYSE:GME) gained 18.57%
• Starbucks (NASDAQ:SBUX) gained 4.41%
• Citrix (NASDAQ:CTXS) lost -3.80%
• Salesforce (NYSE:CRM) lost -6.43%
• iShares PHLX Semiconductor ETF (NASDAQ:SOXX) gained 2.28%

Notable Index Returns for February

• Russell 2000, 6.2%
• The S&P 600, 7.6%
• S&P 400 Mid-Cap Index, 6.7%
• S&P 100, 1.3%
• Nasdaq 100, -0.1%
• Russell 3000, 3.1%
• Russell 1000, 2.9%
• Wilshire 5000, 2.9%

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