Stocks rise in broad-based advance
28-Sep-20 16:20 ET
Dow +410.10 at 27574.06, Nasdaq +203.96 at 11117.55, S&P +53.14 at 3351.60
briefing.com
[BRIEFING.COM] The S&P 500 rose 1.6% on Monday in a broad-based advance. The small-cap Russell 2000 (+2.4%) and S&P MidCap 400 (+2.4%) outperformed with 2.4% gains, followed by the Nasdaq Composite (+1.9%) and Dow Jones Industrial Average (+1.5%).
All 11 sectors within the S&P 500 ended the day in positive territory, with energy (+2.3%), financials (+2.3%), consumer discretionary (+2.2%), and information technology (+1.9%) finishing atop the standings. The utilities sector (+0.3%) was today's laggard.
Value/cyclical stocks had a nice advantage for most of the day, until the technology stocks narrowed the gap later in the session. Apple (AAPL 114.96, +2.68, +2.4%), for instance, finished higher by 2.4% after being up just 0.5% in the morning.
Analyst upgrades, M&A activity, and another positive vaccine update from Johnson & Johnson (JNJ 147.11, +1.45, +1.0%) were corporate-related drivers of sentiment for many cyclical stocks. Other positive factors were House Speaker Pelosi saying a stimulus bill is still possible and quarter-end rebalancing, which favored the financial and energy sectors.
A separate viewpoint was rooted more in technical observation than news. The lack of volatility, and market-moving events, suggested today was a momentum trade from Friday, with performance aided by a recognition the S&P 500 and Dow had declined for four straight weeks.
Notably, the S&P 500 closed below its 50-day moving average (3353) despite spending a healthy portion of the afternoon above the key technical level.
U.S. Treasuries were stagnant during today's stock market gains. The 2-yr yield increased one basis point to 0.14%, and the 10-yr yield was unchanged at 0.66%. The U.S. Dollar Index declined 0.4% to 94.27. WTI crude futures rose 0.7%, or $0.29, to $40.54/bbl.
Investors did not receive any economic data on Monday. The Conference Board's Consumer Confidence Index for September, the S&P Case-Shiller Home Price Index for July, and the Advance August reports for Intl Trade in Goods, Retail Inventories, and Wholesale Inventories will be released on Tuesday.
- Nasdaq Composite +23.9% YTD
- S&P 500 +3.7% YTD
- Dow Jones Industrial Average -3.3% YTD
- Russell 2000 -9.5% YTD
Market Snapshot
| Dow | 27574.06 | +410.10 | (1.51%) | | Nasdaq | 11117.55 | +203.96 | (1.87%) | | SP 500 | 3351.60 | +53.14 | (1.61%) | | 10-yr Note | 0/32 | 0.663 |
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| | NYSE | Adv 2546 | Dec 467 | Vol 845.5 mln | | Nasdaq | Adv 2520 | Dec 811 | Vol 3.5 bln |
Industry Watch
| Strong: Energy, Financials, Information Technology, Consumer Discretionary |
| | Weak: Utilities |
Moving the Market
-- Broad-based gains to start the week
-- Analyst upgrades, M&A activity, quarter-end rebalancing, and vaccine news help lift cyclical stocks
-- General trading momentum
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WTI crude stays above $40 per barrel
28-Sep-20 15:25 ET
Dow +460.60 at 27624.56, Nasdaq +200.23 at 11113.82, S&P +58.14 at 3356.60
[BRIEFING.COM] The S&P 500 is up 1.7% in a relatively benign advance. Unlike last week, there hasn't been that much volatility today.
One last look at the S&P 500 sectors shows all 11 sectors still trading higher. Energy (+2.8%), financials (+2.6%), and consumer discretionary (+2.3%) remain in the lead, while the utilities sector (+0.6%) continues to lag. The Philadelphia Semiconductor Index also shows strength with a 2.7% gain.
WTI crude futures settled higher by 0.7%, or $0.29, to $40.54/bbl. |
