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S&P 500 Pulled Back, Started the Week on a Lighter Note

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S&P pulled back

After closing last week in profits, the S&P 500 broke its rising streak and pulled back. On February 6, the S&P 500 fell 0.21% and closed the day at 2,292.56. The stocks related to the energy and telecommunication sectors weighed on the index.

Economic and political uncertainty in the market made investors risk averse. Other sectors such as financials and consumer staples also fell. The financials gained strength on Friday due to expectations of softer regulations for the banking industry. On Monday, financials lost strength and pulled back.

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Hasbro rose 14% on Monday

Hasbro (HAS) and Cabot Oil & Gas (COG) were the top gainers of the S&P 500. Laboratory Corporation of America Holdings (LH) and Newell Rubbermaid (NWL) were the top losers. Hasbro, a US multinational toy and board game company, rose 14.1% on Monday. Hasbro rose due to better-than-expected fourth quarter sales and earnings figures. Its collaboration with Disney supported the rise in sales. According to reports, Hasbro toys for girls rose 52% in the fourth quarter—compared to same period a year ago. The market was expecting $1.27 per share for fourth quarter earnings, but Hasbro reported $1.64. The revenue rose 11% year-over-year.

Volatility Index

The S&P 500 started the day on a weaker note, but it recovered some losses as the market closed. The S&P 500 VIX Index (CBOE Volatility Index) measures uncertainty in the market. On Monday, it rose 3.7% to 11.37. It’s measured on a scale of 1–100 with 20 as the historical average. It’s also called the “fear index.” It usually moves opposite to stock movements. The CBOE VIX generally rises when the S&P 500 is weaker.

After closing last week at record highs, the Nasdaq Composite pulled back on February 6. It fell 0.06% and closed the day at 5,663.55. The Dow Jones Industrial Average stayed above the 20,000 level. It closed at 20,052.42—a fall of 0.09% (19.04 points). The SPDR S&P 500 ETF (SPY) fell 0.18%. Next, we’ll discuss how the energy sector performed on Monday.

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