Cyclically-charged Monday rally
24-Aug-20 16:15 ET
Dow +378.13 at 28308.46, Nasdaq +67.92 at 11379.72, S&P +34.12 at 3431.28
briefing.com
[BRIEFING.COM] The S&P 500 (+1.0%) and Nasdaq Composite (+0.6%) rose to new record highs on Monday, as sentiment was boosted by news the FDA approved emergency use authorization for convalescent plasma in hospitalized COVID-19 patients. The Dow Jones Industrial Average gained 1.4%, and the Russell 2000 gained 1.0%.
Cyclical stocks outperformed, as they typically do when there is any positive-sounding coronavirus update due to the prospect for a stronger recovery in these beaten-down spaces. The S&P 500 energy (+2.8%), financials (+2.3%), industrials (+1.8%), and materials (+1.7%) sectors set the performance pace.
The health care sector (-0.5%) was the only S&P 500 sector that closed lower today.
Many of the mega-cap stocks started the day rallying to fresh all-time highs, but a lack of follow-through buying interest in these names tamed the bulls and briefly took the tech-sensitive Nasdaq into negative territory. Investors bought the intraday dip, although these stocks (and the Nasdaq) closed well off session highs.
Apple (AAPL 503.43, +5.95, +1.2%), for example, was up as much as 3.6% but ended the day higher by 1.2%. Nevertheless, it was still a good day for Apple after Morgan Stanley raised its price target to a Street-high $520 from $431. Today was also the record date for the company's 4:1 stock split.
In the energy space, many oil producers temporarily closed oil refineries in the U.S. Golf Coast in anticipation of two tropical storms, one of which is expected to strengthen into a hurricane before making landfall later this week.
WTI crude futures increased 0.7%, or $0.30, to $42.61/bbl. Natural gas futures increased 1.5% to $2.612/MMBtu. Unleaded gasoline futures increased 3.9% to $1.26/gallon.
U.S. Treasuries finished near their flat lines in a muted session, suggesting bond investors were less enthused about the vaccine news. The 2-yr yield was flat at 0.15%, and the 10-yr yield increased one basis point to 0.65%. The U.S. Dollar Index increased 0.1% to 93.30.
Investors did not receive any economic data on Monday. Looking ahead, investors will receive New Home Sales for July, the Consumer Confidence Index for August, the FHFA Housing Price Index for August, and the S&P Case-Shiller Home Price Index for June on Tuesday.
- Nasdaq Composite +26.8% YTD
- S&P 500 +6.2% YTD
- Dow Jones Industrial Average -0.8% YTD
- Russell 2000 -6.0% YTD
Market Snapshot
| Dow | 28308.46 | +378.13 | (1.35%) | | Nasdaq | 11379.72 | +67.92 | (0.60%) | | SP 500 | 3431.28 | +34.12 | (1.00%) | | 10-yr Note | -2/32 | 0.653 |
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| | NYSE | Adv 2152 | Dec 815 | Vol 773.3 mln | | Nasdaq | Adv 1829 | Dec 1508 | Vol 3.8 bln |
Industry Watch
| Strong: Energy, Financials, Materials, Industrials |
| | Weak: Health Care, Real Estate |
Moving the Market
-- New highs for S&P 500 and Nasdaq
-- FDA approved emergency use authorization for convalescent plasma in hospitalized COVID-19 patients
-- Cyclical sectors outperformed
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WTI crude futures rise, energy stocks follow
24-Aug-20 15:25 ET
Dow +241.47 at 28171.80, Nasdaq +22.15 at 11333.95, S&P +20.49 at 3417.65
[BRIEFING.COM] The S&P 500 is up 0.6% as nine of its 11 sectors continue to trade in the green.
Briefly, the energy (+2.0%), financials (+1.8%), materials (+1.6%), and industrials (+1.4%) sectors are up more than 1.0%, while the health care (-0.8%) and real estate (-0.3%) sectors trade lower.
WTI crude futures settled higher by 0.7%, or $0.30, to $42.61/bbl, which has been an added boost for the energy stocks. |
