Thanksgiving week is typically a good one!
Stock market rallies to new records amid trade, M&A news
25-Nov-19 16:20 ET
Dow +190.85 at 28066.38, Nasdaq +112.60 at 8632.48, S&P +23.35 at 3133.64
briefing.com
[BRIEFING.COM] U.S. stocks rallied on Monday to lift the S&P 500 (+0.8%), Nasdaq Composite (+1.3%), and Dow Jones Industrial Average (+0.7%) to new closing records, as investors reacted positively to Chinese efforts to better protect intellectual property rights. Sizable M&A activity across several sectors also supported risk sentiment.
The Russell 2000 rose 2.1%, climbing past its large-cap peers to close at a 52-week high.
Press reports indicated that Chinese government officials called to increase penalties on IP theft, which was interpreted as a move that could help strike a Phase One deal. It should be noted that a separate report from Reuters that suggested a Phase Two deal before the 2020 election is unlikely to be reached did not have a noticeable effect on the market.
The S&P 500 information technology sector (+1.4%), which typically outperforms when the prevailing view on trade is positive, led all sectors in gains amid strength in the semiconductor stocks. NVIDIA (NVDA 221.21, +10.32, +4.9%) was a notable gainer after the stock was upgraded to Overweight from Equal Weight at Morgan Stanley. The Philadelphia Semiconductor Index rose 2.4%.
The health care (+1.1%) and consumer discretionary (+0.9%) sectors also rose more than the S&P 500, while the utilities sector (-0.4%) was today's lone sector to finish in negative territory.
Two of today's M&A deals were ones that were already on the market's radar: Charles Schwab (SCHW 49.31, +1.11, +2.3%) agreed to acquire TD Ameritrade (AMTD 51.78, +3.65, +7.6%) for $26 billion in an all-stock transaction, and LVMH (LVMUY 89.37, +1.98, +2.3%) agreed to acquire Tiffany & Co. (TIF 133.25, +7.74, +6.2%) for $16.2 billion in cash.
New deals included Novartis (NVS 91.30, +0.82, +0.9%) agreeing to acquire The Medicines Co. (MDCO 83.80, +15.25, +22.3%) for $9.7 billion in cash and eBay (EBAY 35.85, +0.73, +2.1%) agreeing to sell StubHub to Viagogo for $4.05 billion in cash.
Strikingly, U.S. Treasuries finished the session on a higher note despite the risk sentiment displayed in the stock market. The 2-yr yield declined two basis points to 1.61%, and the 10-yr yield declined one basis point to 1.76%. The U.S. Dollar Index increased 0.1% to 98.32. WTI crude increased 0.2%, or $0.10, to $57.98/bbl.
Investors did not receive any notable economic data on Monday. On Tuesday, investors will receive New Home Sales for October, the FHFA Housing Price Index for September, the S&P Case-Shiller Home Price Index for September, and the Advance reports for International Trade in Goods, Retail Inventories, and Wholesale Inventories.
- Nasdaq Composite +30.1% YTD
- S&P 500 +25.0% YTD
- Dow Jones Industrial Average +20.3% YTD
- Russell 2000 +20.3% YTD
Market Snapshot
| Dow | 28066.38 | +190.85 | (0.68%) | | Nasdaq | 8632.48 | +112.60 | (1.32%) | | SP 500 | 3133.64 | +23.35 | (0.75%) | | 10-yr Note | +1/32 | 1.760 |
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| | NYSE | Adv 20884 | Dec 784 | Vol 823.0 mln | | Nasdaq | Adv 2402 | Dec 720 | Vol 2.2 bln |
Industry Watch
| Strong: Information Technology, Health Care, Consumer Discretionary |
| | Weak: Utilities |
Moving the Market
-- S&P 500, Nasdaq, Dow close at new highs
-- Reported progress toward a Phase One trade agreement; China aims to increase penalties on IP theft
-- Strength in the technology stocks
-- Notable M&A activity across several sectors
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WTI crude settles slightly higher
25-Nov-19 15:25 ET
Dow +162.01 at 28037.54, Nasdaq +105.21 at 8625.09, S&P +20.58 at 3130.87
[BRIEFING.COM] The S&P 500 is on pace to close at a record high as it trades up 0.7% near the 3130 level.
One last look at the S&P 500 sectors shows information technology (+1.3%), health care (+0.9%), and consumer discretionary (+0.8%) continuing to lead today's advance. The utilities (-0.4%) and energy (-0.1%) sectors remain in negative territory.
WTI crude settled up $0.10 (+0.2%) to $57.98/bbl. |
