Stocks ended the first day of trading last week in the red, falling from their record highs of the prior week, as investors await the start of corporate earnings season. Among the indexes, both the Russell 2000 and the Nasdaq (-0.4%) led the decline, followed by the Dow (-0.2%), the Global Dow (-0.1%), and the S&P 500, which broke even on the day. Treasury yields inched higher, while the dollar dipped. Crude oil prices rose, but remained below $60.00 per barrel. Market sectors were mixed, with consumer discretionary, real estate, and consumer staples pushing higher, while energy, communication services, and information technology fell.

Strong economic data and a growing number of vaccinated Americans helped fuel significant market gains last Monday. The prior week’s favorable jobs report, coupled with purchasing managers’ encouraging news in both the manufacturing and services sectors, provided encouragement for investors. The Nasdaq rose 1.7%, followed by the S&P 500 (1.4%), the Dow (1.1%), the Global Dow (0.8%), and the Russell 2000 (0.5%). The yield on 10-year Treasuries climbed 2.4%, while the dollar and crude oil prices fell. Among the sectors, a major oil sell-off pushed energy prices lower. Otherwise, the major market sectors jumped higher, led by consumer discretionary, communication services, and information technology, each of which gained more than 2.0%.

Stocks opened last week generally down, with only the Dow posting a marginal 0.3% gain. The Russell 2000 plunged 2.8%, the Nasdaq dropped 0.6%, while the Global Dow and the S&P 500 each slipped 0.1%. The sectors were mixed, with utilities, consumer staples, communication services, and health care pushing ahead, while energy, financials, information technology, consumer discretionary, materials, and real estate fell. The yield on 10-year Treasuries, crude oil prices, and the dollar advanced.

As we closed out 2020, the overwhelming sentiment entering January was that it couldn’t get much worse. Unfortunately, January did not start out on a high note. During the first week of the month, protesters stormed the United States Capitol, leading to violence, the disruption of the presidential election certification, and several deaths. Nevertheless, the inauguration of Joe Biden as our 46th president took place as scheduled. January also saw the emergence of virus mutations, the uneven distribution of COVID-19 vaccines, and the gradual relaxation of pandemic-related restrictions. Also during January, a new phenomenon in stock price manipulation emerged involving several companies, including a video-game company. Ultimately, stocks closed the month mixed, with the Russell 2000 and the Nasdaq gaining, while the Dow and the S&P 500 fell. Treasury yields, the dollar, and crude oil prices advanced.

Stocks ended last Monday mostly higher, as a rise in Treasury prices sent yields lower, which offered a boost to equities, particularly tech shares. The Nasdaq jumped 1.2%, the S&P 500 gained 0.7%, and the Dow rose 0.3%. Small-cap shares underperformed, driving the Russell 2000 down 0.9%. The Global Dow dipped 0.2%. Crude oil prices advanced, while the dollar weakened. Market sectors that gained included information technology, consumer staples, real estate, communication services, consumer discretionary, materials, and health care. Financials, energy, industrials, and utilities fell.