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Stock Market News for Jan 27, 2021

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Zacks Equity Research
·4 min read
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U.S. stock markets closed lower on Tuesday as investors continued to monitor the passage of further fiscal stimulus. Moreover, market participants also awaited a new policy statement from the U.S. Federal Reserve which began its two-day policy meeting on Jan 26. All the three major stock indexes ended the day in red.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) fell 0.1%, closing at 30,937.04, continuing its four-day losing streak. Notably, 16 components of the 30-stock index ended in red while 14 finished the day in green. Major loser of the Dow was American Express Co. AXP that lost 4.1%. Notably, American Express carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The tech-heavy Nasdaq Composite closed the day at 13,626.07, down 0.1%, snapping its five-day winning streak, on the back of weak performance by large-cap technology stocks. The S&P 500 dipped 0.2%, closing the day at 3,849.62, after falling from a record intraday high and reversing its gains from Monday. The Energy Select Sector SPDR (XLE) and the Materials Select Sector SPDR (XLB) plunged 2.1% and 1.4%, respectively. Notably, seven out of eleven sectors of the benchmark index closed in the negative zone and four in green.

The fear-gauge CBOE Volatility Index (VIX) was down 0.7% to 23.02. A total of 14.30 billion shares were traded on Tuesday, higher than the last 20-session average of 13.62 billion. Decliners outnumbered advancers on the NYSE by a 1.31-to-1 ratio. On Nasdaq, a 1.65-to-1 ratio favored declining issues.

Markets Await Passage of Further Stimulus

Wall Street closed lower on Tuesday as investors continued to monitor the progress of the $1.9 trillion stimulus relief bill proposed by President Joe Biden. Notably, U.S. Senate Majority Leader Chuck Schumer said that Democrats will move forward with the COVID-19 relief plan as early as next week, without support from Republicans, if necessary.

New Policy Statement From Federal Reserve Awaited

Market participants awaited a new policy statement from the U.S. Federal Reserve which began its two-day policy meeting on Jan 26. Notably, investors are also eyeing how the Fed addresses inflation.

Economic Data

The Conference Board reported that its Consumer Confidence Index for the month of January improved moderately and came in at 89.3, compared to 87.1 in December which was revised downward from 88.6 reported earlier. The metric surpassed the consensus estimate of 87.5.

The Present Situation Index, which gauges consumers’ views on current market conditions, decreased from 87.2 in December to 84.4 in January. Meanwhile, the Expectations Index, which is a measure of consumers’ short-term (for the next six months) outlook for income, business and labor market conditions, increased from 87.0 in December to 92.5 in January.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all the nine U.S. census divisions, reported an annual gain of 9.5% in November, following 8.4% gain in October. Notably, the 10-City Composite annual increase for November was reported at 8.8%, compared to 7.6% gain in October. Meanwhile, the 20-City Composite increased 9.1% in November on a year-over-year basis, compared to an increase of 8.0% in October.

Stocks That Have Made Headline

C.H. Robinson Q4 Earnings & Revenues Beat, Up Y/Y

C.H. Robinson Worldwide’s CHRW fourth-quarter 2020 earnings of $1.08 per share surpassed the Zacks Consensus Estimate of $0.94. (Read More)

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