The US stock market ended the first session of the week mostly in positive territory, as investors continued to analyze the earnings season amid a week packed with key economic indicators. The benchmark S&P 500 index erased earlier losses and edged up to a record high, rising 0.4% to 3,855.36 points. The tech-heavy Nasdaq Composite gained 0.7% to hit a new closing high of 13,635.99. The Dow Jones Industrial Average, less susceptible to swings in tech stocks, fell 0.1% to close above 30,960, recovering slightly after falling more than 400 points to its session low. This week, 13 Dow components and 111 S&P 500 companies will report earnings. Quarterly reports on deck include those from Apple, Microsoft, Netflix, Tesla, McDonald's, Honeywell, Caterpillar, and Boeing. Apple shares rose 2.8% to an all-time high ahead of its quarterly report on Wednesday; Tesla, which also reports on Wednesday, climbed 4% to hit a record. GameStop stock extended the speculative behavior, soaring more than 140% to $150 at one point, briefly turning negative before closing 18% higher. Other heavily shorted names, such as Bed Bath & Beyond, also rallied higher on Monday amid the buying frenzy. Companies kicked off earnings season on a strong note. Of the S&P 500 components that have already reported earnings, 73% have outperformed on both sales and EPS.
European stocks ended the first session of the week in negative territory, with investors focused on the evolution of the pandemic, restrictive measures, earnings season, and the retail sector. The Euro Stoxx 600 index fell 0.8% at the close, after having gained more than 1.2% at the start of trading. Travel and leisure stocks fell 1.8% to lead losses amid new Covid-19 restrictions, while healthcare stocks gained 0.7%. Shares in Dutch health technology company Philips rose 2.3% after reporting a jump in profits. In the UK, shares in online clothing retailer Asos rose 5% following reports that it is in talks to buy Topshop and Miss Selfridge, among other brands, from administrators at the Arcadia Group. Shares in online retailer Boohoo also rose 4.6% on Monday after it said it would buy the Debenhams brand but not its physical stores. Frankfurt's DAX index led regional declines (-1.66%), after Germany's Ifo business climate index fell in January, with Monday's reading at 90.1, down from 92,1 in December, as both current conditions and expectations fell. Italy's FTSE MIB, meanwhile, fell 1.6%, followed by Paris's CAC 40 (-1.57%) and London's FTSE 100 (-0.84%).
The local stock market closed Wednesday's session lower amid persistently mixed investor sentiment globally, as market participants reacted to the Colcap information basket, with buying and selling flows shifting in line with the estimated holdings during the latest rebalancing of the benchmark index. The Colcap index closed the session with a decline of -1.50%, reaching 1,397.65 points, consolidating a negative streak of at least three consecutive sessions. Shares of ISA, GEB, and Bancolombia led the session's declines, with their prices falling by 5%, 2.18%, and 2.18%, respectively. Meanwhile, shares of Mineros, Bogotá, and Nutresa bucked the local market's downward trend and managed to close Monday's session with gains of 1.93%, 0.44%, and 0.04%, respectively.
For more information on the stock market close, see our "Day of Trading Summary" report.
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Global equity markets closed the trading session in positive territory, showing a significant decrease in global volatility levels of 17.83%, which returned to levels below 17 points. This decrease is supported by the result of the midterm elections in the United States, which occurred as the market had expected.
