US indices close higher, lifted by consumer, basic materials stocks

Benchmark US indices closed higher on Tuesday, February 8, as investors rode on the upbeat earnings over the past week, pushing back the interest rate concerns.

The S&P 500 rose 0.84% to 4,521.54. The Dow Jones surged 1.06% to 35,462.78. The NASDAQ Composite was up 1.28% to 14,194.45, and the small-cap Russell 2000 rose 1.51% to 2,042.97.

Fed’s rate hike worries and rising Omicron cases had cast a pall of gloom in the market, but that scenario is changing as the latest quarterly earnings season has brought some cheer.

On Tuesday, the New York Federal Reserve said the US consumer debt load increased in 2021, driven by higher borrowing for homes, cars, and other goods. According to economists, the increased borrowings may be due to the low-interest rates. 

Eight out of the 11 sectors of the S&P 500 index closed in the green on Tuesday. Consumer discretionary, basic materials, and financials sectors advanced the most, while energy, communication service and real estate segments remained at the bottom.

The Pfizer, Inc. (PFE) stock plunged more than 3.6% in intraday trading after posting fourth-quarter and full-year earnings. Its revenue missed analysts’ expectation.

Peloton Interactive, Inc. (PTON) stock jumped more than 23.9% after the fitness equipment company announced to replace its chief executive and appoint new directors to the board. It also revealed plans to reduce costs and improve profitability and growth.

NVIDIA Corporation (NVDA) stock rose 0.66% after the semiconductor company announced the termination of Nvidia’s acquisition of Arm Limited deal.

Shares of KKR & Co. Inc. (KKR) declined more than 6.8% despite reporting strong earnings. Its after-tax distributable earnings more than doubled in the fourth quarter.

In the consumer discretionary sector, Amazon.com Inc. (AMZN) rose 2.22%, Tesla Inc. (TSLA) surged 1.63%, and The Home Depot Inc. (HD) jumped 0.97%. Alibaba Group Holding Limited (BABA) and Toyota Motor Corporation (TM) increased by 5.41% and 1.67%, respectively.

In the material sector, Linde Plc (LIN) stock jumped 0.79%, Sherwin Williams Company (SHW) increased by 0.57%, and Rio Tinto Group (RIO) grew by 1.46%. Freeport-McMoRan Inc. (FCX) and Vale S.A. (VALE) were up 3.58% and 0.87%, respectively.

In the energy sector, Exxon Mobile Corporation (XOM) fell 2.65%, Chevron Corporation (CVX) declined 1.81%, and ConocoPhillips (COP) decreased by 1.88%. Shell plc (SHEL) and BP plc (BP) were down 1.98% and 1.93%, respectively.

The global crypto market was down 2.94% to US$1.96 trillion, as per coinmarketcap.com at 3:24 pm ET. Bitcoin (BTC) price fell 2.48% to US$43,268.21 in the last 24 hours.  

Also Read: Pfizer Inc’s (PFE) 2022 vaccine sales outlook falls short of estimates

Also Read: Is ad-tech firm Aleph launching IPO soon? 2021 revenue climbs 86%

Also Read: What is LOOM crypto? Know price, performance

Futures & Commodities

Gold futures surged 0.34% to US$1,828.05 per ounce. Silver futures increased by 0.62% to US$23.218 per ounce, while copper futures rose 0.21% to US$4.4718.

Brent oil futures decreased by 1.76% to US$91.06 per barrel and WTI crude futures were down by 1.84% to US$89.64.

Bond Market

The 30-year Treasury bond yields increased 1.59% to 2.253, while the 10-year bond yields were up 2.08% to 1.956.

US Dollar Futures Index surged 0.20% at US$95.585.