Day Traders Diary
The major averages closed mixed with the Dow notching its fourth straight up day even as bond yields inched higher and investors braced for a busy week of economic news. The Dow Jones Industrial Average rose 40 points. The S&P 500 gained 2 points while the Nasdaq Composite traded down 13 points.
Despite these moves, some tech stocks pushed higher. Apple led the sector's gains, jumping about 2% after Goldman Sachs initiated coverage with a buy rating. The iPhone maker accounts for about 7% of the S&P. Alphabet and Microsoft also gained about 1% each.
Bond yields rose slightly, with the yield on the 10-year Treasury note last trading 2 basis points higher after surging above the psychological 4% level at various points last week. An upward move raises borrowing costs for consumers and could signal a drop in investor confidence.
Investors are awaiting Federal Reserve Chair Jerome Powell congressional testimony slated for Tuesday and Wednesday. The remarks will guide investors and lawmakers on how the central bank is thinking about inflation and its rate-hiking campaign, and determine the market goes from here.
"It's prudent for the market not to get ahead of itself given that it's an important week that that can change the direction," said LPL Financial's Quincy Krosby, attributing Monday's market moves to uncertainty heading into the busy week capping off with February jobs report on Friday.
Traders are closely watching the jobs number after January's blockbuster report showed the economy added 517,000 payrolls. Economists polled by Dow Jones expect 225,000 jobs added last month.
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