Stocks Bounce Higher On Positive Earnings by Berkshire-Hathaway, Target, and COVID Relief Bill

Apparently, some big money didn't exactly appreciate Friday's flush on the Dow nor the two straight weeks of declines on the NAZ and S&P, so money came pouring into stocks as bonds settled down (for now), with the 10-year note stabilizing at a yield just under 1.45%.

Market participants had any number of good reasons for confidence in buying stocks. Over the weekend, the US House of Representatives passed their version of "Money Drop 2021" in a supposed COVID-19 relief bill and sent it over to the Senate for approval. Berkshire-Hathaway reported huge numbers for their fourth quarter and full year, blowing away analyst estimates on Saturday, and, not to forget, the NASDAQ was down nearly 1000 points from its recent high (2/16).

Monday's rally turned out to be the best since June, 2020, but the jury's still out on whether it's indicative of a move to higher ground in the near term or just excessive dip-buying by perma-bulls, which is just about everybody these days.

Bulls got more good news prior to the open on Tuesday, as Target (TGT) - one of the few national retailers to thrive during the pandemic lockdowns of 2020 - blew out fourth quarter analyst expectations of $1.60 per share, posting an EPS of $2.79. This was Target's second straight blowout quarter. Third quarter EPS was $3.38, more than doubling the $3.62 estimate. The operator of roughly 1,900 stores and a huge online presence went four-for-four in 2020, beating estimates in each quarter.

Kohl's (KSS), operator of 1,159 stores nationally, also beat expectations Tuesday morning, posting an EPS of $0.42 when it was expected to lost $0.01 per share. The company also provided positive guidance for the remainder of 2021, citing the dwindling numbers of COVID-19 infections and deaths as a rationale for sales growth. Both Kohl's and Target were up modestly in pre-market trading.

Teleconferencing company, ZOOM (ZM), also reported before Tuesday's open, posting a big beat for the fourth quarter. Revenue came in at $882.5 million vs. $811.04 million expected and adjusted earnings per share of $1.22 vs. 79 cents expected. Year-over-year comparisons were out of the park. In 2020's fourth quarter, the company posted revenue of $188.25 and EPS of 15 cents.

Stocks were not alone. Bitcoin bounced off a weekend low just above $43,000, briefly trading over $50,000 early Tuesday morning. Other cryptos, including Etherium, were also sporting early gains.

Commodities took the brunt of the selling, especially oil, where WTI crude fell from above $63/barrel to below $60, finally ending Monday's session at $60.64. As usual, gold and silver were down and flat, respectively, but recovering in early trading.

With less than an hour to the opening bell, index futures are down slightly. Nordstrom (JWN) reports after the close. Wendy's (WEN) and Dollar Tree (DLTR) report Wednesday morning.

In yet another sign that COVID craziness may be on the way out, Major League Baseball began live Spring Training games with fans in the stands on Sunday and again on Monday with no cancellations. Teams are playing in Florida (Grapefruit League) and Arizona (Cactus League). The regular season is set to open on time, Tuesday, April 1. The player's association approved a full, 162-game schedule for 2021.

At the Close, Monday, March 1, 2021:
Dow: 31,535.51, +603.14 (+1.95%)
NASDAQ: 13,588.83, +396.48 (+3.01%)
S&P 500: 3,901.82, +90.67 (+2.38%)
NYSE: 15,327.77, +317.31 (+2.11%)