Nasdaq rises for eighth straight day
23-Jun-20 16:20 ET
Dow +131.14 at 26156.12, Nasdaq +74.89 at 10131.37, S&P +13.43 at 3131.16
briefing.com
[BRIEFING.COM] The S&P 500 gained 0.4% on Tuesday amid more indications of an economic recovery, while the Nasdaq Composite (+0.7%) pulled ahead to close at another record high for its eighth straight advance. The Dow Jones Industrial Average (+0.5%) and Russell 2000 (+0.4%) also posted modest gains, but the market did close near session lows.
All 11 S&P 500 sectors started the session sharply higher after President Trump clarified that the U.S.-China trade deal was still intact and June flash Manufacturing PMIs out of Europe improved more than expected. There was brief weakness in the overnight futures market after trade advisor Navarro said the trade deal with China was over, which he later said was taken out of context.
Shortly after the open, data showed new home sales in the U.S. rebound 16.6% m/m in May to a seasonally adjusted annual rate of 676,000 (Briefing.com consensus 635,000), which supported the market's expectations for an economic recovery. There was a lack of follow-through buying interest, though, as the market traded sideways for most of the day.
Within the S&P 500, the consumer discretionary (+1.0%), information technology (+0.7%), and communication services (+0.6%) sectors advanced the most amid noticeable, and persistent, gains in its mega-cap components, including Apple (AAPL 366.53, +7.66, +2.1%) and Amazon (AMZN 2764.41, +50.50, +1.9%).
Conversely, the utilities (-1.1%) and real estate (-0.4%) sectors closed lower after slipping into negative territory in early action, while the consumer staples (-0.1%) and industrials (unch) sectors squandered gains amid some late selling in the broader market.
There was no confirmed catalyst for the minor slippage, but it appeared to be rooted in part to a lack of conviction from buyers given the narrow leadership in the mega-caps. Others pointed to Treasury Secretary Mnuchin warning that decoupling from China is possible if their trading relationship remains uneven.
Elsewhere, U.S. Treasuries finished near their flat lines in another lackluster session in the bond market, while gold futures rose 0.9% to $1782.00/ozt. The 2-yr yield was unchanged at 0.19%, and the 10-yr yield increased one basis point to 0.71%. The U.S. Dollar Index declined 0.3% to 96.72. WTI crude declined 0.5% to $40.38/bbl.
Reviewing Tuesday's economic data:
- New home sales increased sharply in May, rising 16.6% m/m to a seasonally adjusted annual rate of 676,000 (Briefing.com consensus 635,000). The increase came on the heels of a sharp downward revision for April to 580,000 from 623,000.
- The key takeaway from the report is that sales activity bounced back smartly in May, reflecting a welcome pickup in contract signings as COVID-19 shutdown pressures lessened. This understanding should foster expectations that sales activity will continue to improve in coming months given the tight supply of existing homes for sale, low mortgage rates, and pent-up demand.
Looking ahead, investors will receive the FHFA Housing Price Index for June and the weekly MBA Mortgage Applications Index on Wednesday.
- Nasdaq Composite +12.9% YTD
- S&P 500 -3.1% YTD
- Dow Jones Industrial Average -8.4% YTD
- Russell 2000 -13.7% YTD
Market Snapshot
| Dow | 26156.12 | +131.14 | (0.50%) | | Nasdaq | 10131.37 | +74.89 | (0.74%) | | SP 500 | 3131.16 | +13.43 | (0.43%) | | 10-yr Note | -2/32 | 0.721 |
|
| | NYSE | Adv 1677 | Dec 1232 | Vol 1.0 bln | | Nasdaq | Adv 1807 | Dec 1516 | Vol 5.6 bln |
Industry Watch
| Strong: Consumer Discretionary, Information Technology, Communication Services |
| | Weak: Utilities, Real Estate, Consumer Staples |
Moving the Market
-- Stock market closes higher but near session lows; Nasdaq sets new record high
-- President Trump reaffirms that U.S.-China trade deal is still intact, clarifying a previous comment from trade advisor Navarro
-- June flash manufacturing PMIs out of Europe and new home sales for May in the U.S. rebound more than expected
|
WTI crude gives up intraday gain, closes lower
23-Jun-20 15:25 ET
Dow +185.82 at 26210.80, Nasdaq +90.84 at 10147.32, S&P +20.51 at 3138.24
[BRIEFING.COM] The S&P 500 is up 0.7%, while the Nasdaq trades higher by 1.0% as it vies for its eight straight day of gains.
One last look at the S&P 500 sectors shows consumer discretionary (+1.4%), information technology (+1.1%), and communication services (+1.0%) trading higher by at least 1.0%. The utilities (-1.1%) and real estate (-0.1%) sectors still trade lower.
WTI crude futures settled today's session lower by $0.22 (-0.5%) to $40.38/bbl, giving up an intraday gain. |
