Market Snapshot
briefing.com
| Dow | 36585.06 | +246.76 | (0.68%) | | Nasdaq | 15832.79 | +187.83 | (1.20%) | | SP 500 | 4796.56 | +30.38 | (0.64%) | | 10-yr Note | -11/32 | 1.640 |
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| | NYSE | Adv 1928 | Dec 1418 | Vol 845.0 mln | | Nasdaq | Adv 3290 | Dec 1418 | Vol 4.3 bln |
Industry Watch
| Strong: Energy, Consumer Discretionary, Financials |
| | Weak: Health Care, Consumer Staples, Utilities, Real Estate |
Moving the Market
-- Apple (AAPL) hits $3 trillion market capitalization
-- Tesla (TSLA) up 12% after reporting record Q4 deliveries
-- Treasury yield rise noticeably
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S&P 500 and Dow close at record highs to begin 2022
03-Jan-22 16:20 ET
Dow +246.76 at 36585.06, Nasdaq +187.83 at 15832.79, S&P +30.38 at 4796.56
[BRIEFING.COM] The major indices had a great start to 2022 on Monday, featuring record closes in the S&P 500 (+0.6%) and Dow Jones Industrial Average (+0.7%). The Nasdaq Composite (+1.2%) and Russell 2000 (+1.2%) tied for the lead with 1.2% gains.
The outperformance of the Nasdaq was attributed to a 13.5% gain in Tesla (TSLA 1199.78, +143.00, +13.5%), which reported record Q4 deliveries, and sizable gains in Apple (AAPL 182.01, +4.44, +2.5%), Amazon.com (AMZN 3408.09, +73.75, +2.2%), and NVIDIA (NVDA 301.21, +7.10, +2.4%).
Apple became the first U.S. company to reach a $3.0 trillion market capitalization while Amazon and the small-caps may have adhered to the January effect. The latter is a view that beaten-down stocks outperform to begin the year with the conclusion of tax-loss selling pressure.
The S&P 500 consumer discretionary sector, which is home to TSLA and AMZN, advanced 2.8%, but it was outdone by the energy sector (+3.1%) amid higher oil prices ($76.05/bbl, +0.76, +1.0%). The financials (+1.2%) and information technology (+1.2%) sectors followed suit, with the former keying off a big jump in longer-dated Treasury yields.
The mega-caps, to emphasize, made a huge difference for the large-cap indices since the S&P 500 Equal Weight Index increased just 0.1% and six of the 11 S&P 500 sectors closed lower. The materials (-1.4%), health care (-1.0%), and real estate (-1.0%) sectors each declined by at least 1.0%.
Shares of Pfizer (PFE 56.65, -2.40, -4.1%) and BioNTech (BNTX 231.85, -25.95, -10.1%) declined noticeably amid an expected decision from the FDA, which approved their COVID-19 vaccine for kids aged 12-15. The FDA also shortened the time between the second dose and booster dose to at least five months (down from six months).
In the Treasury market, the 10-yr yield rose 12 basis points to 1.63%, with selling interest influenced by the positive showing in the stock market and potentially due to an improving perspective on the economy. The 2-yr yield rose six basis points to 0.79%. The U.S. Dollar Index increased 0.3% to 96.21.
Reviewing Monday's economic data:
- Total construction spending increased 0.4% month-over-month in November (Briefing.com consensus +0.6%) following an upwardly revised 0.4% increase (from 0.2%) in October. Total private construction increased 0.6% month-over-month while total public construction spending decreased 0.2%. On a year-over-year basis, total construction spending was up 9.3%.
- The key takeaway from the report is the strength seen in new single-family construction, which is a reflection of the persistently strong housing demand amid a scarcity of supply in the existing home market.
- The preliminary December IHS Markit Manufacturing PMI decreased to 57.7 from a revised final reading of 58.3 (from 57.8) in November.
Looking ahead, investors will receive the ISM Manufacturing Index for December and the JOLTS - Job Openings report for November on Tuesday.
- Nasdaq Composite +1.2% YTD
- Russell 2000 +1.2% YTD
- Dow Jones Industrial Average +0.7% YTD
- S&P 500 +0.6% YTD
Crude futures settle above $76 per barrel
03-Jan-22 15:30 ET
Dow +215.09 at 36553.39, Nasdaq +177.05 at 15822.01, S&P +26.82 at 4793.00
[BRIEFING.COM] The S&P 500 continues to trade higher by 0.6% with 30 minutes remaining in the session.
One last look at the sectors shows energy (+3.0%) and consumer discretionary (+2.5%) up by at least 2.5%, while the real estate (-1.3%), materials (-1.2%), health care (-1.1%), and utilities (-1.1%) sectors are each down more than 1.0%.
WTI crude futures settled higher by $0.76 (+1.0%) to $76.05/barrel. |
