Bond yields simmered down om Friday, Stock market stabilizes
Stock tech sector stabilized on Friday after the recent selling. The weeks trend stopped as interest rates cooled of. S&P 500 declined by half percent to 3811. DOW Jones also fell behind the broader indices by declining 1.5% percent to 30932. Despite the activity, Nasdaq Composite, got a lift from the recently sold-off technology and communications sectors; stocks such as Facebook (FB, +1.2%), Nvidia (NVDA, +3.1%) and Microsoft (MSFT, +1.5%) helped lead a modest 0.6% rebound in the tech-heavy index.
Even though the positive uptrend, the NASDAQ is still 4.9% down for this week. This is the result of the interest-rate fears coupled with the DOW’s and S&P500’s losses.
“Many market participants have referenced the infamous ‘Taper Tantrum’ in 2013 as a similar playbook to today as a reason why we’re seeing equity market weakness,” said Brian Price, head of investment management for Commonwealth Financial Network. Furthermore, he also points out that “the notable difference today … is that the Fed seems very committed to letting the economy run a little hotter than normal and will tolerate higher inflation.”
Other action in the stock market today (26th Feb 2021):
- The small-cap Russell 2000 witnesses a small gain to 2,201.
- U.S. crude oil futures tanked 3.2% to $61.50 per barrel, but still finished February up 18%.
- Gold futures sank, too, dropping 2.6% to $1,728.80 per ounce, plumbing nine-month lows.
- Bitcoin at $48,870 on Thursday, dropped 5.1% to $46,381. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)
Earnings Stock market Estimates Are Looking Up!
The short term red days means a positive outcome for the overall market further on in the year, according to analysts. Considering more and more Americans are vaccinated, economic expectations will also be improving. According to the Centers for Disease Control and Prevention, approximately 14% of the US population has received at least 1 dose.
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Because of this, analysts begun to increase the expectations for earnings estimates. Current-quarter profit expectations have improved by 5% over the first two months of Q1. According to FactSet Senior Earnings Analyst John Butters, that’s “the second-highest increase in the bottom-up EPS estimate during the first two months of a quarter since FactSet began tracking this metric in Q2 2002,” trailing only Q1 2018’s 5.7% increase.
The overall effect generates good news for the market, especially in the dividend paying and industry focused sectors. Many real estate investment trusts (REITs), especially in the retail and hospitality industries, provide expectations to perform better as foot traffic begins to increase. Moreover, an economic recovery is good news for business development companies (BDCs), as well as the small and midsized businesses in which they invest.
Given the current situation, Investors will find plenty of attractive income opportunities across the equity board. If you are looking for somewhere to start ,you can start with this list 21 high-quality (and high-yielding) stocks. These are suitable for those looking to retire(or already retired). Consider the stock market tech sector began it’s rebound. The provided list of select companies offer an exclusive blend of income stability and pay out potential which is best suited for set and forget portfolios( long term investments).
At the time of the writing the author is long MSFT.