Stock market gains more than 3% to start the week
30-Mar-20 16:15 ET
Dow +690.70 at 22327.54, Nasdaq +271.77 at 7773.50, S&P +85.18 at 2626.65
briefing.com
[BRIEFING.COM] The S&P 500 climbed 3.4% on Monday, led higher by shares of health care and technology companies, even as the White House extended its social distancing guideline through the end of April. The Dow Jones Industrial Average (+3.2%) and Nasdaq Composite (+3.6%) also rose more than 3.0%, while the Russell 2000 increased 2.3%.
President Trump's original goal to reopen the economy was April 12, but the forward-looking market wasn't bothered by the slight extension amid hope that these measures will further contain the virus, so economic restrictions can later be loosened.
In addition, quarter-end rebalancing continued to play a factor in trading, while medical breakthroughs from Abbott Labs (ABT 79.34, +4.78, +6.4%) and Johnson & Johnson (JNJ 133.01, +9.85, +8.0%) helped sentiment. Specifically, Abbott Labs is launching a point-of-care test to detect COVID-19 in as little as five minutes, while JNJ said it selected a lead vaccine candidate that it plans to test in clinical trials by September.
Fittingly, the health care sector (+4.7%) was today's leader, followed by the information technology sector (+4.2%) amid strength in Microsoft (MSFT 160.23, +10.53, +7.0%) and the semiconductor stocks. The Philadelphia Semiconductor Index rose 3.8%. The energy sector lagged with a 1.5% gain.
On the downside, shares of Boeing (BA 152.28, -9.72, -6.0%) eased back from last week's 70% surge, while airline stocks like American Airlines (AAL 12.25, -1.79, -12.8%) did get hit by the social distancing guideline extension.
Separately, oil prices continued to falter with WTI crude settling down 6.6%, or $1.43, to $20.22/bbl, as the market remained plagued by excess supply and crippling demand. On a related note, President Trump said he would call Russian President Putin to discuss the price dispute with Saudi Arabia.
U.S. Treasuries, particularly longer-dated tenors, rose alongside equities to start the week. The 2-yr yield declined two basis points to 0.21%, and the 10-yr yield declined eight basis points to 0.67%. The U.S. Dollar Index rose 0.7% to 99.01.
Monday's lone economic report was Pending Home Sales, which increased 2.4% in February following an upwardly revised 5.3% in January (from 5.2%).
Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for March and the S&P Case-Shiller Home Price Index for January on Tuesday.
- Nasdaq Composite: -13.4%
- S&P 500: -18.7%
- Dow Jones Industrial Average: -21.8%
- Russell 2000: -30.6%
Market Snapshot
| Dow | 22327.54 | +690.70 | (3.19%) | | Nasdaq | 7773.50 | +271.77 | (3.62%) | | SP 500 | 2626.65 | +85.18 | (3.35%) | | 10-yr Note | -2/32 | 0.708 |
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| | NYSE | Adv 1775 | Dec 1174 | Vol 1.2 bln | | Nasdaq | Adv 2043 | Dec 1220 | Vol 3.8 bln |
Industry Watch
| Strong: Health Care, Consumer Staples |
| | Weak: Energy, Real Estate |
Moving the Market
-- Stock market starts week on higher note
-- Abbott Labs (ABT) and Johnson & Johnson (JNJ) prop up health care sector amid coronavirus developments
-- White House extends social distancing guidelines through April 30
-- Quarter-end rebalancing
-- Oil prices extend losses
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WTI crude settles near $20 per barrel
30-Mar-20 15:25 ET
Dow +621.35 at 22258.19, Nasdaq +251.23 at 7752.96, S&P +79.12 at 2620.59
[BRIEFING.COM] The S&P 500 is now up 3.2%, which brings the benchmark index back to its highs from last Thursday.
One last look at the S&P 500 sectors shows all sectors trading in positive territory, led higher by the health care (+4.6%) and information technology (+x%) sectors. The energy sector is today's laggard with a 1.0% gain.
WTI crude settled today's session down $1.43 (-6.6%) to $20.22/bbl. On a related note, President Trump said he would call Russian President Putin to discuss the price dispute with Saudi Arabia today. |
