S&P 500 closes above 3000; Boeing drags on Dow
21-Oct-19 16:15 ET
Dow +57.44 at 26827.64, Nasdaq +73.44 at 8162.99, S&P +20.52 at 3006.72
briefing.com
[BRIEFING.COM] The stock market closed near session highs on Monday, with the S&P 500 (+0.7%), Nasdaq Composite (+0.9%), and Russell 2000 (+1.0%) posting solid gains as investor sentiment remained relatively upbeat. The Dow Jones Industrial Average (+0.2%) struggled to keep pace, predominately due to continued weakness in Boeing (BA 331.06, -12.94, -3.8%).
Boeing was downgraded to Neutral at UBS, Credit Suisse, and Robert W. Baird as the company faces heightened scrutiny, and uncertainty, for its handling of the 737 MAX situation. On the other hand, firms continued to turn even more bullish on Apple (AAPL 240.51, +4.10, +1.7%), with Raymond James increasing its AAPL price target to a Street-high of $280 from $225.
Apple hit a new 52-week high, and many of its suppliers within the Philadelphia Semiconductor Index (+1.9%) also outperformed as U.S.-China trade rhetoric remained optimistic. The S&P 500 information technology sector rose 1.1%, but it was not today's best performer.
It was the beaten-up energy sector (+1.9%), undeterred by struggling oil prices ($53.29/bbl, -$0.47, -0.9%) and a revenue miss from Halliburton (HAL 19.61, +1.18, +6.4%), that led all sectors in gains. Halliburton said it is cutting costs. Next in line was the financials sector (+1.4%) amid strength in JPMorgan Chase (JPM 123.55, +2.99, +2.5%) and some curve-steepening activity.
The 2-yr yield increased two basis points to 1.59%, and the 10-yr yield increased five basis points to 1.79%. The U.S. Dollar Index was little changed at 97.32.
The materials (-0.4%) and heath care (-0.1%) sectors finished the day lower, with the health care space seeing some disappointment after a proposed $50 billion opioid settlement package was not accepted.
AmerisourceBergen (ABC 86.66, -2.98, -3.3%), Cardinal Health (CAH 50.41, -1.13, -2.2%), McKesson (MCK 147.45, -4.81, -3.2%), and Teva Pharma (TEVA 8.15, +0.65, +8.7%) did agree, however, to a $260 million settlement with two counties in Ohio today. Teva Pharma also announced it reached a separate agreement in principle for a global settlement framework.
Investors did not receive any economic data of note on Monday, but will receive Existing Home Sales for September on Tuesday.
- Nasdaq Composite +23.0% YTD
- S&P 500 +19.9% YTD
- Dow Jones Industrial Average +15.0% YTD
- Russell 2000 +15.0% YTD
Market Snapshot
| Dow | 26827.64 | +57.44 | (0.21%) | | Nasdaq | 8162.99 | +73.44 | (0.91%) | | SP 500 | 3006.72 | +20.52 | (0.69%) | | 10-yr Note | -4/32 | 1.800 |
|
| | NYSE | Adv 1908 | Dec 971 | Vol 778.2 mln | | Nasdaq | Adv 2088 | Dec 1051 | Vol 1.7 bln |
Industry Watch
| Strong: Financials, Energy, Information Technology |
| | Weak: Health Care, Materials |
Moving the Market
-- Stock market closes near session highs; investor sentiment relatively upbeat
-- Apple (AAPL) sets new 52-week high after Raymond James increased price target to $280 from $225
-- Boeing (BA) downgraded to Neutral by several analysts on Wall Street; continued scrutiny of its handling of the 737 MAX
-- Trading volume was relatively light
|
|
