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Market Snapshot
briefing.com
| Dow | 35335.71 | +215.63 | (0.61%) | | Nasdaq | 14942.63 | +227.99 | (1.55%) | | SP 500 | 4479.53 | +37.86 | (0.85%) | | 10-yr Note | -1/32 | 1.274 |
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| | NYSE | Adv 2262 | Dec 1041 | Vol 764.0 mln | | Nasdaq | Adv 3275 | Dec 1166 | Vol 3.8 bln |
Industry Watch
| Strong: Energy, Consumer Discretionary, Information Technology, Communication Serivces |
| | Weak: Utilities, Consumer Staples, Real Estate, Health Care |
Moving the Market
-- S&P 500 and Nasdaq hit all-time highs
-- FDA granted full approval for the Pfizer (PFE)-BioNTech (BNTX) COVID-19 vaccine
-- Energy stocks and oil prices rebounded nicely; growth stocks did well, too
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Investors buy the dip to record highs, Pfizer vaccine gets full FDA approval
23-Aug-21 16:20 ET
Dow +215.63 at 35335.71, Nasdaq +227.99 at 14942.63, S&P +37.86 at 4479.53
[BRIEFING.COM] The stock market had a strong start to the week, as investors remained steadfast in buying the dip amid some encouraging Covid news. The S&P 500 (+0.9%) and Nasdaq Composite (+1.6%) set intraday record highs, with the Nasdaq also closing at a record high.
The Dow Jones Industrial Average (+0.6%) trailed its large-cap peers with a 0.6% gain while the Russell 2000 (+1.9%) and iShares Micro-Cap ETF (IWC 143.33, +3.87, +2.8%) outperformed after underperforming last week.
Briefly, the FDA fully approved the Pfizer (PFE 49.93, +1.21, +2.5%)-BioNTech (BNTX 382.10, +33.42, +9.6%) vaccine for people 16 years and older, which provided some hope that vaccination rates will increase. In addition, the IHME vaccine model suggested that coronavirus cases could be peaking in the U.S.
The gains were relatively broad-based, as advancing issues outpaced declining issues by a 2:1 margin at the NYSE and a 3:1 margin at the Nasdaq. Seven of the 11 S&P 500 sectors closed higher, including the energy sector (+3.8%), which rose 4% as oil prices ($65.60, +3.35, +5.4%) rebounded 5%.
The heavily-weighted information technology sector (+1.3%) advanced 1.3%, while the defensive-oriented utilities (-1.3%), real estate (-0.4%), consumer staples (-0.4%), and health care (-0.02%) sectors were excluded from the advance amid some slippage into the close.
Other supportive factors included preliminary manufacturing and services PMIs for August out of the eurozone and U.S. that were expansionary (although they did decelerate from July), news that Treasury Secretary Yellen will back Fed Chair Powell for a second term, and a Barron's cover story that described the mega-cap technology stocks as "unstoppable."
Elsewhere, Treasury yields were subdued despite the bullish price action in the major indices, reportedly because of the deceleration in the IHS data, reduced trading volume, and a wait-and-see mindset for Fed Chair Powell's speech on Friday. Mr. Powell will speak during the annual Jackson Hole Economic Symposium.
The 10-yr yield decreased one basis point to 1.26% while the 2-yr yield increased one basis point to 0.23%. The U.S. Dollar Index decreased 0.5% to 92.99.
Reviewing Monday's economic data:
- Existing home sales increased 2.0% m/m in July to a seasonally adjusted annual rate of 5.99 million (Briefing.com consensus 5.85 million) from an upwardly revised 5.87 million (from 5.86 million) in June. Total sales in July were up 1.5% from a year ago.
- The key takeaway from the report is that the supply of existing homes for sale at more affordable price points remains extremely limited. That is driving up the pace of price increases well beyond the pace of income growth, which is creating affordability pressures for prospective buyers, particularly first-time buyers, and leading much of the sales growth to occur in higher-end markets.
- The preliminary IHS Markit Manufacturing PMI decreased to 61.2 in August from 63.4 in July. The preliminary IHS Markit Services PMI decreased to 55.2 in August from 59.9 in July.
Looking ahead, investors will receive New Home Sales for July on Tuesday.
- S&P 500 +19.3% YTD
- Nasdaq Composite +15.9% YTD
- Dow Jones Industrial Average +15.5% YTD
- Russell 2000 +11.8% YTD
Crude futures rebound 5%
23-Aug-21 15:30 ET
Dow +269.59 at 35389.67, Nasdaq +236.27 at 14950.91, S&P +44.57 at 4486.24
[BRIEFING.COM] The S&P 500 is up 1.0% and on track to close at a record high.
One last look at the sector standings shows energy (+3.8%) up 4% as oil prices rebound more than 5% while the top-weighted information technology sector trades higher by 1.3%. Conversely, the utilities (-1.0%) and real estate (-0.3%) sectors trade lower.
WTI crude futures settled higher by 5.4%, or $3.35, to $65.60/bbl. Oil prices rebounded from a 9% decline last week, as demand concerns eased with the FDA approval of the Pfizer (PFE 49.96, +1.24, +2.6%) vaccine.
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