Stock market recoups losses, closes near highs amid mega-cap strength
04-May-20 16:20 ET
Dow +26.07 at 23749.76, Nasdaq +105.77 at 8710.73, S&P +12.03 at 2842.74
briefing.com
[BRIEFING.COM] The S&P 500 advanced 0.4% on Monday, closing near session highs, as strength in the mega-cap technology stocks helped the market overcome an increase in U.S.-China tensions and cautious commentary from Warren Buffett.
The tech-sensitive Nasdaq Composite rose 1.2% to climb past the benchmark index, Dow Jones Industrial Average (+0.1%) and Russell 2000 (+0.3%).
Over the weekend, the Trump administration stepped up its accusations against China for covering up the coronavirus outbreak, and Warren Buffett said he has yet to find any attractive opportunities in the market. Mr. Buffett, instead, used the uncertainty and volatility in the market to dump Berkshire Hathaway's (BRK.B 177.95, -4.72, -2.6%) holdings of airline companies.
These events helped send the S&P 500 down 1.2% shortly after the open, but the market gradually regained its familiar resiliency, guided by leadership from Microsoft (MSFT 178.84, +4.27, +2.5%), Amazon (AMZN 2315.99, +29.94, +1.3%), Apple (AAPL 293.16, +4.09, +1.4%), and Facebook (FB 205.26, +2.99, +1.5%).
Eight of the 11 S&P 500 sectors finished in positive territory, paced by the energy (+3.7%) and information technology (+1.4%) sectors. The industrials (-1.3%) and financials (-0.9%) sectors lagged the broader market.
The major U.S. airlines Berkshire sold -- Delta (DAL 22.57, -1.55, -6.4%), United (UAL 25.26, -1.36, -5.1%), American (AAL 9.82, -0.82, -7.7%), and Southwest (LUV 27.56, -1.67, -5.7%) -- took noticeable hits (again) and weighed on the Dow Jones Transportation Average (-2.0%).
Tyson Foods (TSN 55.32, -4.69, -7.8%) was a notable earnings laggard after the company missed top and bottom-line estimates.
U.S. Treasuries posted small gains to begin the week, pushing yields slightly lower. The 2-yr yield declined three basis points to 0.17%, and the 10-yr yield declined one basis point to 0.64%. The U.S. Dollar Index increased 0.5% to 99.54. WTI crude increased 3.0%, or $0.60, to $20.37/bbl.
Monday's economic data was limited to the Factory Orders report, which declined 10.3 m/m in March (Briefing.com consensus -9.1%) following a downwardly revised 0.1% decline (from 0.0%) in February.
- The key takeaway from the report is that it shows how quickly manufacturing activity dropped off as shutdown initiatives increased. That drop off should be even more pronounced in April.
Looking ahead, investors will receive the ISM Non-Manufacturing Index for April and the Trade Balance report for March on Tuesday.
- Nasdaq Composite -2.9% YTD
- S&P 500 -12.0% YTD
- Dow Jones Industrial Average -16.8% YTD
- Russell 2000 -24.2% YTD
Market Snapshot
| Dow | 23749.76 | +26.07 | (0.11%) | | Nasdaq | 8710.73 | +105.77 | (1.23%) | | SP 500 | 2842.74 | +12.03 | (0.42%) | | 10-yr Note | -2/32 | 0.638 |
|
| | NYSE | Adv 1359 | Dec 1517 | Vol 968.6 mln | | Nasdaq | Adv 1713 | Dec 1522 | Vol 3.4 bln |
Industry Watch
| Strong: Information Technology, Energy |
| | Weak: Financials, Industrials |
Moving the Market
-- S&P 500 turns positive amid strength in mega-cap technology stocks
-- U.S. continues to call out China for its role in the the coronavirus outbreak
-- Warren Buffett dumps airline stocks, says no attractive opportunity yet
|
S&P 500 turns positive, WTI crude gains 3%
04-May-20 15:30 ET
Dow -8.50 at 23715.19, Nasdaq +85.76 at 8690.72, S&P +8.62 at 2839.33
[BRIEFING.COM] The S&P 500 is now up 0.3%, thanks to follow-through gains in the mega-cap technology stocks.
One last look at the S&P 500 sectors shows most trading in positive territory, led by the energy (+3.0%) and information technology (+1.2%) sectors. The financials (-1.0%) and industrials (-1.6%) sectors remain at the bottom of the standings.
WTI crude settled up $0.60 (+3.0%) to $20.37/bbl. |
