Stocks recoup some weekly losses in broad-based advance
22-Apr-20 16:15 ET
Dow +456.94 at 23475.82, Nasdaq +232.15 at 8495.39, S&P +62.75 at 2799.31
briefing.com
[BRIEFING.COM] The S&P 500 advanced 2.3% on Wednesday, recouping some of its weekly decline, as sentiment benefited from a reprieve in the oil futures market and more stimulus action. The Nasdaq Composite outperformed with a 2.8% gain, followed by the Dow Jones Industrial Average (+2.0%) and Russell 2000 (+1.3%).
Specifically, WTI crude futures gained 19.3%, or $2.23, to $13.80/bbl after a two-day collapse, and the Senate passed a $484 billion stimulus bill targeted for small businesses, hospitals, and COVID-19 testing. What's interesting, though, is that stocks were already indicated for a higher start as oil futures initially traded lower, and the market barely reacted to the initial news of a stimulus agreement yesterday.
To be fair, the reprieve in oil prices might have warranted follow-through buying after the open, and the stimulus bill is now one step closer to providing much-needed relief. A general observation that the S&P 500 declined 4.8% over the past two days, thus presenting a suitable entry point for some investors, likely contributed to the gains, too.
The advance was steady and broad-based, with all 11 S&P 500 sectors closing in positive territory. The information technology sector (+3.9%) leaped ahead amid strength in the semiconductor stocks, which rallied around a positive earnings report from Texas Instruments (TXN 111.98, +5.14, +4.8%). The consumer staples sector (+1.1%) underperformed.
Facebook (FB 182.28, +11.48, +6.7%) and Alphabet (GOOG 1263.21, +46.87, +3.9%) also did some heavy lifting, partially due to the overwhelmingly positive response to Snap's (SNAP 16.95, +4.51, +36.3%) revenue results.
Chipotle Mexican Grill (CMG 882.26, +95.57, +12.2%) was another earnings standout, while shares of Netflix (NFLX 421.42, -12.41, -2.9%) and AT&T (T 29.47, -0.40, -1.3%) declined following their results.
U.S. Treasuries finished on a lower note with longer-dated maturities backtracking from their recent advance. The 2-yr yield increased one basis point to 0.21%, and the 10-yr yield increased five basis points to 0.62%. The U.S. Dollar Index increased 0.1% to 100.40.
Reviewing Wednesday's economic data:
- The FHFA Housing Price Index for April rose 0.7% after increasing an upwardly revised 0.5% in March (from +0.3%).
- The weekly MBA Mortgage Applications Index declined 0.3% following a 7.3% increase in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report and the New Home Sales report for March on Thursday.
- Nasdaq Composite -5.3% YTD
- S&P 500 -13.4% YTD
- Dow Jones Industrial Average -17.7% YTD
- Russell 2000 -28.0% YTD
Market Snapshot
| Dow | 23475.82 | +456.94 | (1.99%) | | Nasdaq | 8495.39 | +232.15 | (2.81%) | | SP 500 | 2799.31 | +62.75 | (2.29%) | | 10-yr Note | -4/32 | 0.614 |
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| | NYSE | Adv 2051 | Dec 854 | Vol 1.0 bln | | Nasdaq | Adv 2163 | Dec 1060 | Vol 3.0 bln |
Industry Watch
| Strong: Information Technology, Energy |
| | Weak: Consumer Staples, Financials |
Moving the Market
-- Stocks recoup some weekly losses in broad-based advance
-- WTI crude spikes 19% to $13.80/bbl
-- Senate passes $484 billion stimulus bill for small businesses, hospitals, and COVID-19 testing
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WTI crude futures bounce 19%
22-Apr-20 15:30 ET
Dow +521.38 at 23540.26, Nasdaq +252.76 at 8516.00, S&P +69.89 at 2806.45
[BRIEFING.COM] The S&P 500 currently trades higher by 2.6%, while the Russell 2000 trades higher by 1.5%.
One last look at the S&P 500 sectors shows gains across the board with the information technology sector (+4.0%) out in front and the consumer staples sector (+1.3%) in the back.
WTI crude futures rose $2.23 (+19.3%) to $13.80/ozt, providing a reprieve from the turmoil over the past two days. |
