| | | S&P 500 Hits Fresh Record
21-Aug-20 16:15 ET
Dow +190.60 at 27930.33, Nasdaq +46.85 at 11311.80, S&P +11.65 at 3397.16
briefing.com
[BRIEFING.COM] The stock market enjoyed another banner week, which ended with the S&P 500 (+0.3%) and Nasdaq Composite (+0.4%) at fresh record highs. The two indices gained 0.7% and 2.7% for the week, respectively. The Dow (+0.7%) outperformed today, ending the week unchanged.
While the Friday session ended on a firmly higher note, the bulk of the trading day saw the S&P 500 oscillate near its flat line. However, the technology sector (+1.2%) continued showing relative strength thanks to a big gain in Apple (AAPL 497.48, +24.38, +5.2%), which offered daylong support to the entire market.
Most of the remaining ten sectors spent the bulk of the day in negative territory, but the continued outperformance in technology emboldened some late buying elsewhere. As a result, only four sectors ended in the red with losses ranging from 0.3% (financials) to 0.6% (energy) while heavily-weighted groups like industrials (+0.3%) and consumer discretionary (+0.3%) recorded gains.
Industrials received a notable boost from Deere (DE 199.50, +8.40, +4.4%) after the company reported better than expected results for Q3 and issued net income guidance for the fiscal year. Transport stocks had a good showing, but the Dow Jones Transportation Average (+0.4%) still shed 0.2% for the week.
The consumer discretionary sector received some assistance from homebuilders after today's release of a stronger than expected Existing Home Sales report for July, which followed better than expected Housing Starts and Building Permits on Tuesday. The iShares U.S. Home Construction ETF (ITB 56.59, +1.20, +2.2%) climbed to a fresh record high.
The energy sector was the day's worst performer, surrendering 6.3% for the week. Crude oil fell $0.31, or 0.7%, to $42.31/bbl, but gained $0.26, or 0.6%, for the week.
Treasuries ended mixed with shorter tenors ending lower while the long bond outperformed. The 10-yr note ended little changed with its yield at 0.64%.
Friday's news flow was limited, as lawmakers in Washington did not get any closer to reaching a fiscal stimulus deal while trade representatives from China and the U.S. will reportedly talk in the near future.
Today's economic data was limited to Existing Home Sales for July, which soared 24.7% m/m to a seasonally adjusted annual rate of 5.86 million (Briefing.com consensus 5.39 million). That is the largest monthly increase on record, eclipsing the prior record seen in June. Total sales in July were up 8.7% from a year ago.
The key takeaway from the report is that it reflects robust demand for existing homes. That is constraining supply even further, which will be a pressure point that feeds higher prices and bolsters the prospects for new home sales.
- Nasdaq Composite +26.1% YTD
- S&P 500 +5.2% YTD
- Dow Jones Industrial Average -2.1% YTD
- Russell 2000 -6.9% YTD
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