US: Stocks extend gains

The US stocks advanced on Tuesday, 02 February 2021, with the major averages all climbed firmly into positive territory, as investors encouraged by news on the pace of vaccinations in the U.S., signs of progress on a pandemic-relief package, better than exptected corporate earnings, and a decline in the frenzy of retail trading in heavily shorted stocks.

At the close of trade, the Dow Jones Industrial Average index advanced 475.57 points, or 1.57%, to 30,687.48. The S&P 500 index increased 52.45 points, or 1.39%, to 3,826.31. The tech-heavy Nasdaq Composite Index increased 209.38 points, or 1.56%, to 13,612.78.

The continued strength on Wall Street came as the CDC's vaccine tracker showed that as of Tuesday, 32.8 million doses had been administered so far, which is more than the confirmed case tally. So far, 52.7 million doses have been delivered to states. Hospitalizations have also been falling, according to the COVID Tracking Project. There were 93,536 COVID-19 patients in U.S. hospitals on Monday, down from 95,013 a day earlier and the lowest level since Nov. 29.

 

The markets also benefited from a positive reaction to the latest earnings news. So far the numbers have been promising, even amid the coronavirus pandemic, with 81% of the 189 S&P 500 companies that had reported through Monday exceeding consensus expectations.

Market participants kept a close watch on progress in U.S. stimulus talks. After meeting with Republican senators at the White House on Monday, President Joe Biden appeared poised to push forward with his proposed $1.9 trillion relief plan even if it fails to draw Republican support. Senator Susan Collins, R-Maine, called the meeting "very productive" and said the two sides plan to continue negotiations.

Exxon Mobil (XOM) moved notably higher after reporting better than expected fourth quarter earnings. Delivery giant UPS (UPS) also showed a strong move to the upside after reporting fourth quarter results that exceeded market estimates on both the top and bottom lines.

Video game retailer GameStop (GME), which seen as the poster child for the so-called "retail investor revolt," plummeted by 60% after plunging by more than 30% on Monday. Shares of AMC Entertainment (AMC) also tumbled by 41.2% after the movie theatre chain ended the previous session modestly higher.

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