Stocks snap losing streak, rebound broadly
09-Sep-20 16:15 ET
Dow +439.58 at 27930.47, Nasdaq +293.87 at 11141.57, S&P +67.12 at 3398.96
briefing.com
[BRIEFING.COM] The S&P 500 rebounded 2.0% on Wednesday amid gains across all 11 of its sectors, although the market did lose some steam into the close. The Nasdaq Composite rose 2.7% amid strength in technology stocks, while the Dow Jones Industrial Average (+1.6%) and Russell 2000 (+1.5%) underperformed.
Eight sectors advanced more than 1.0%, but the 3.4% gain in the information technology sector was the most influential given its top-weighted position in the S&P 500. Note, it was also the sector that led the market lower yesterday.
The materials (+2.6%) and consumer discretionary (+2.3%) sectors also outpaced the benchmark index, while the energy sector (+0.6%) was today's laggard despite a 3.5% gain in oil prices ($38.05/bbl, +$1.29).
Today's rebound was largely described as a technical bounce following a three-day period in which the S&P 500 fell 7% from its record high and the Nasdaq fell 10% from its record high. There were no fundamental news catalyzing the buying activity, and there were several negative-sounding headlines that the market brushed aside.
To name a few, AstraZeneca (AZN 53.64, -1.07, -2.0%) paused its COVID-19 vaccine trial in the UK due to a serious adverse reaction in a patient, there was some reported pessimism in Washington regarding another coronavirus relief package before the election, and several airlines remained cautious about the travel demand outlook.
Separately, shares of lululemon athletica (LULU 323.93, -25.87, -7.4%) and Slack (WORK 25.24, -4.08, -13.9%) fell 7% and 14%, respectively, despite providing better-than-expected earnings reports.
U.S. Treasuries ended the session mixed. The 2-yr yield declined one basis point to 0.13%, while the 10-yr yield increased two basis points to 0.70%. The U.S. Dollar Index declined 0.2% to 93.24.
Reviewing Wednesday's economic data:
- July job openings increased to 6.618 mln from a revised 6.001 mln in June (from 5.889 mln).
- The weekly MBA Mortgage Applications Index increased 2.9% following a 2.0% decline in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Producer Price Index for August, and Wholesale Inventories for July on Thursday.
- Nasdaq Composite +24.2% YTD
- S&P 500 +5.2% YTD
- Dow Jones Industrial Average -2.1% YTD
- Russell 2000 -8.5% YTD
Market Snapshot
| Dow | 27930.47 | +439.58 | (1.60%) | | Nasdaq | 11141.57 | +293.87 | (2.71%) | | SP 500 | 3398.96 | +67.12 | (2.01%) | | 10-yr Note | -2/32 | 0.698 |
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| | NYSE | Adv 2188 | Dec 768 | Vol 867.2 mln | | Nasdaq | Adv 2258 | Dec 1058 | Vol 3.5 bln | |
