Stock Market Today

Stock Market Today: Winter Storm Boosts Energy Sector, But Stocks Finish Mixed

Oil and natural gas prices surged Tuesday as Winter Storm Uri pounded the nation, sending power demand higher and impacting energy supplies.

The major indices looked like they were ready to go after the long holiday weekend, and they did at the open. Unfortunately, many stocks couldn’t sustain that buzz all day.

A massive winter storm has wreaked havoc on Texas's power grid, leaving millions without electricity, and impacting the state's pipelines and refineries. The resultant spike in demand as well as the disturbance in supplies sent oil and natural gas prices higher; U.S. crude oil futures jumped a full 1% to $60.05 per barrel. Energy names such as Exxon Mobil (XOM, +3.0%) and ConocoPhillips (COP, +3.6%) helped lead the sector forward.

The rest of the stock market was a much more mixed affair.

The Dow Jones Industrial Average (+0.2% to a record 31,522) managed to finish in the black, albeit off its highs for the day, thanks to strong performances from Salesforce.com (CRM, +3.4%) and JPMorgan Chase (JPM, +2.4%). But the S&P 500 weakened throughout the day and closed with a marginal loss to 3,932, and the Nasdaq Composite also went green-to-red, finishing 0.3% lower to 14,047.

Other action in the stock market today:

  • The small-cap Russell 2000 drooped 0.7% to 2,272.
  • Gold futures settled 1.3% lower to $1,799.00 per ounce.
  • Bitcoin prices briefly surpassed the $50,000 mark on Tuesday before dipping back to $48,783. That was still 2.4% better than its price of $47,622 on Friday. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)
stock chart for 021621

Turn Short-Term Pain Into Long-Term Gain

The market very well could be running out of gas. Tony Dwyer, analyst at Canaccord Genuity, says "We still believe the market is ripe for a pullback" amid high valuations, overbought chart indicators and historically sky-high sentiment (which incidentally can be a bearish signal).

Fortunately, these are mostly short-term concerns in what appears to be a favorable longer-term setup.

"The Fed is focused on obtaining sustainably higher inflation, money availability remains historic, the economy is just in the beginning of a long-duration recovery, consensus EPS forecasts are too conservative, and like 2010, any valuation contraction should be a result of a sharp EPS ramp rather than something more onerous," Dwyer adds.

The prevailing wisdom in such an environment is to buy dips, as they're expected to be temporary. But what dips should investors buy?

These S&P 500 stocks would have more appeal with a major reduction in price. But in the event that we don't get drastic pullbacks, simply look for slightly better prices for the highest-quality stocks on your wishlist. Perhaps that's the picks espoused by Warren Buffett, whose latest changes to the Berkshire Hathaway (BRK.B) portfolio will be revealed this evening (check back here later tonight for full updates).

Or it might be the 21 picks hand-selected by several of us here at Kiplinger, as well as some of Wall Street's top fund managers. Most of these picks appear to have plenty more room to run in 2021 – and a quick market dip would make them all the more attractive.

Kyle Woodley was long CRM and Bitcoin as of this writing.

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
The 12 Best Tech Stocks to Buy for 2022
tech stocks

The 12 Best Tech Stocks to Buy for 2022

The best tech-sector picks for the year to come include plays on some of the most exciting emergent technologies, as well as several old-guard mega-ca…
January 3, 2022
How to Know When You Can Retire
retirement

How to Know When You Can Retire

You’ve scrimped and saved, but are you really ready to retire? Here are some helpful calculations that could help you decide whether you can actually …
January 5, 2022

Recommended

Stock Market Today (1/21/22): Nasdaq Sinks Again, Ends Worst Week Since 2020
Stock Market Today

Stock Market Today (1/21/22): Nasdaq Sinks Again, Ends Worst Week Since 2020

A negative earnings reaction for Netflix (NFLX) and options expiration sparked a volatile session for stocks.
January 21, 2022
Kiplinger's Weekly Earnings Calendar
stocks

Kiplinger's Weekly Earnings Calendar

Check out our earnings calendar for the upcoming week, as well as our previews of the more noteworthy reports.
January 21, 2022
Stock Market Today (1/20/22): Foiled Again! Sizable Snap-Back Fizzles Late
Stock Market Today

Stock Market Today (1/20/22): Foiled Again! Sizable Snap-Back Fizzles Late

The Nasdaq fell even further into correction territory Thursday after early gains collapsed in the afternoon.
January 20, 2022
The 10 Best European Stocks for 2022 and Beyond
stocks

The 10 Best European Stocks for 2022 and Beyond

A recent pullback in the global equities market has opened the door for investors to buy some of the top dividend-paying European stocks at a discount…
January 20, 2022