Erin Gibbs, president of Gibbs’ wealth management, and Shah Gilani, chief strategist of Money Map Press, discuss the risks and rewards in the market at the moment and how to leverage them.
U.S. stock markets were modestly lower as Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen prepared themselves for two days of Capitol Hill testimony about the government’s COVID-19 assistance.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| Ek: DJI | DOW JONES AVERAGE | 32715.42 | -15.78 | -0.05% |
| SP500 | S&P 500 | 3943.79 | +3.20 | + 0.08% |
| I: COMP | NASDAQ COMPOSITION INDEX | 13374.958397 | -2.58 | -0.02% |
The Dow Jones industrial average fell 89 points, or 0.27%, while the S&P 500 and the Nasdaq Composite were down 0.19% and 0.08%, respectively.
Powell and Yellen will tell the House Financial Services Committee that the U.S. economy is recovering, but that it is still working. Yellen is expected to be questioned about the size of the $ 1.9 billion relief package, while Powell will have to respond to the Fed’s recent decision to end emergency capital relief for banks. Both will appear before the Senate Banking Committee on Wednesday.
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In equities, financial statements were weaker as the U.S. Treasury rose with a longer date, flattening the yield curve after a transcript of Powell’s testimony expressed caution about the state of the economic recovery. The standard yield for ten years was lower by 4 basis points at 1.64%, lower than last week’s highest almost 1.75%.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| XOM | EXXON MOBIL CORP. | 55.76 | -0.18 | -0.33% |
| CVX | CHEVRON CORP. | 103.06 | +0.56 | + 0.55% |
Meanwhile, oil chiefs Chevron Corp and ExxonMobil Corp withdrew when West Texas Intermediate crude rose $ 2.64 to $ 58.92 a barrel, as longer closures in Europe meant weaker energy demand.
Travel-related names were also under pressure with American Airlines Group Inc., Carnival Corp. and TripAdvisor Inc. all in the cross.
During mergers and acquisitions, the bidding war for laser manufacturer Coherent Inc. continued the fiber optic firm Lumentum Holdings Inc. which increased its offering to approximately $ 7 billion, or $ 230 cash and 0.6724 Lumentum shares for each Coherent share. II-VI Inc. offered $ 7 billion to Coherent last week.
Elsewhere, GameStop Corp will report its quarterly results after the closing clock. The report will be the first since the Reddit trade frenzy that began in late January.
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Overseas markets were generally lower.
France’s CAC 40 slowed the decline in Europe, by 0.54%, while the British FTSE 100 and the German DAX 30 lost 0.41% and 0.34% respectively.
In Asia, the Hang Seng index in Hong Kong fell by 1.34%, the Chinese Shanghai Composite Index fell by 0.93% and the Japanese Nikkei 225 by 0.61%.