Stock Market Today: Energy Gets a Spark as Stocks Snap Back
A Saudi deal helped juice U.S. crude oil to its highest price since February, buoying the energy sector in a broad Tuesday rebound for stocks.
That's more like it! While stock markets started off 2021 on the wrong foot yesterday, they tried to make up for it with a decent recovery Tuesday.
COVID-19 remains a serious worry point – not just the high current caseload and hospitalizations in the U.S., but mutant strains that have popped up all over the world. However, for a day at least, investors appeared more preoccupied with other events.
Under the microscope are Georgia's senatorial runoffs, where the betting markets are now slightly leaning toward two Democratic wins, which would effectively give the party control of Washington. While Raymond James policy strategists expect such a result would trigger a near-term sell-off, "longer term, there will be growing optimism for additional stimulus."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Meanwhile, energy stocks including Chevron (CVX, +2.7%) and Exxon Mobil (XOM, +4.8%) took off following a Saudi Arabian deal to cut production that sent U.S. crude oil futures above $50 per barrel for the first time since February 2020. Chevron's contributions helped the Dow Jones Industrial Average close 0.6% higher to 30,391. (Remember: XOM got the boot in 2020.)
Other action in the stock market today:
- The S&P 500 recovered 0.7% to 3,726.
- The Nasdaq Composite popped by 1.0% to 12,818.
- Small caps roared back, as the Russell 2000 gained 1.7% to finish at 1,979.
- Gold futures, helped by a decline in the dollar, gained 0.3% to $1,952.50 per ounce, a two-month high.
- Bitcoin prices, at roughly $31,600 yesterday, eclipsed $34,000 on Tuesday. (Bitcoin prices reported here are as of 4 p.m. each trading day.)
- Qualcomm (QCOM) shares gained 2.7% after the chipmaker announced that CEO Steve Mollenkopf would retire this year, to be succeeded by current President Cristiano Amon.
Make the Most Out of Any Dips
2021 might not be as crazy as 2020, but it certainly won't be uneventful. COVID should remain a persistent threat for the foreseeable future, and election-related uncertainty – which typically would be well behind us – could stick around for another week or two.
"The early week Georgia Senate runoff election and slew of significant economic data throughout the week should keep volatility with us for the time being," says Canaccord Genuity strategist Tony Dwyer, who adds that "we stand ready to add to any exposure investors might have on any meaningful weakness."
Among the best stocks to buy on weakness, of course, are dividend stocks. Not only do you get the potential for price appreciation, but you get a better yield to boot. That's why any volatility-related watch list should contain a few income names, be they these 25 highly rated dividend payers, or these 11 stocks that deliver cash monthly.
But there are 10 picks that investors should buy immediately if they haven't already ... or at least, so say the rules of the "Dogs of the Dow."
If you're curious to learn about this simple, decades-old income investing strategy, or just want to know which stocks are highlighted on this year's list, read on as we shed light on this year's Dogs of the Dow.
Kyle Woodley was long Bitcoin as of this writing.
-
4 Simple 2026 Money Targets to Aim For (And How to Hit Them)While January is the perfect time to strengthen your financial well-being, you're more likely to succeed if you set realistic goals and work with a partner.
-
Everyone Needs an Estate Plan (Seriously, Even You)If you've acquired assets over time, even just a home and some savings, you have an estate. That means you need a plan for that estate for your beneficiaries.
-
To Be a Smart Insurance Shopper, Don't Shop Just for PriceChoosing the cheapest policy could cost you when you have a loss. You'll get the best results if you focus on the right coverage with the help of a good agent.
-
Dow, S&P 500 Rise to New Closing Highs: Stock Market TodayWill President Donald Trump match his Monroe Doctrine gambit with a new Marshall Plan for Venezuela?
-
'Donroe Doctrine' Pumps Dow 594 Points: Stock Market TodayThe S&P 500 rallied but failed to turn the "Santa Claus Rally" indicator positive for 2026.
-
If You'd Put $1,000 Into Lowe's Stock 20 Years Ago, Here's What You'd Have TodayLowe's stock has delivered disappointing returns recently, but it's been a great holding for truly patient investors.
-
If You'd Put $1,000 Into 3M Stock 20 Years Ago, Here's What You'd Have TodayMMM stock has been a pit of despair for truly long-term shareholders.
-
Stocks Chop as the Unemployment Rate Jumps: Stock Market TodayNovember job growth was stronger than expected, but sharp losses in October and a rising unemployment rate are worrying market participants.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
Risk Is Off Again, Dow Falls 397 Points: Stock Market TodayMarket participants are weighing still-solid earnings against both expectations and an increasingly opaque economic picture.
