To: Return to Sender who wrote (81403 ) 4/8/2019 4:55:12 PM From: Return to Sender 1 RecommendationRecommended By Donald Wennerstrom
Respond to of 95501 S&P 500 Overcomes Early Weakness, Extends Winning Streak to Eight Straight Sessions 08-Apr-19 16:25 ET Dow -83.97 at 26341.02, Nasdaq +15.19 at 7953.88, S&P +3.03 at 2895.77briefing.com [BRIEFING.COM] The S&P 500 declined as much as 0.4% in the opening minutes of trading on Monday, weighed down by shares of widely-held stocks like Boeing (BA 374.52, -17.41, -4.4%) and General Electric (GE 9.49, -0.52, -5.2%). The benchmark index, however, staged a steady rebound throughout the day to extend its winning streak to eight straight sessions. The S&P 500 finished higher by 0.1%. The Nasdaq Composite increased 0.2%, while the Dow Jones Industrial Average lost 0.3%. The decline in the Dow can predominately be attributed to Boeing, which announced it will temporarily cut production of its 737 Max aircraft by approximately 20%. A turnaround from many stocks within the S&P 500 information technology (+0.5%), consumer staples (+0.4%), and consumer discretionary (+0.4%) sectors helped the market overcome early weakness that was centered on a slew of downgrades for widely-held stocks. Apple (AAPL 200.10, +3.10, +1.6%), Amazon (AMZN 1849.86, +12.58, +0.7%), and Procter & Gamble (PG 104.97, +1.32, +1.3%) provided strong support for these sectors. PG benefited from Wells Fargo upgrading the stock to Outperform from Market Perform. Oil prices ($64.39/bbl, +1.29, +2.0%) were also in focus after breaking out to fresh five-month highs on Monday. The move higher was supported by ongoing concerns stemming from the military conflict in OPEC producer Libya. The S&P 500 energy sector increased 0.5% and was a consistent leader throughout the day. Boeing, General Electric, and Southwest Air (LUV 51.94, -1.31, -2.5%), however, were some of the widely-held stocks that were downgraded on Monday. Their weakness was a huge drag on the S&P 500 industrial sector (-0.4%), which joined the utilities (-0.7%) and real estate (-0.5%) sectors as the day's laggards. Boeing's problems with the grounding of its 737 Max underpinned key downgrades for Boeing and Southwest Air, which is a major U.S. operator of the 737. Bank of America/Merrill Lynch downgraded BA to Neutral from Buy and lowered its price target to $420 from $480. Raymond James downgraded LUV to Market Perform from Outperform. General Electric for its part was downgraded to Underweight from Neutral by JPMorgan's Stephen Tusa. Mr. Tusa also cut his GE price target to $5 from $6. U.S. Treasuries finished slightly lower to begin the week, pushing yields higher across the curve. The 2-yr yield and the 10-yr yield increased two basis points each to 2.36% and 2.52%, respectively. The U.S. Dollar Index declined 0.4% to 97.04. Reviewing Monday's lone economic report, Factory Orders for February:Factory orders declined 0.5% in February (Briefing.com consensus -0.6%) on the heels of a downwardly revised 0.0% reading (from +0.1%) in January. This marked the fourth decline in the last five months for new orders for manufactured goods.The key takeaway from the report is that business investment was soft in February, evidenced by the 0.1% decline in orders for nondefense capital goods excluding aircraft. Shipments of those same goods, though, increased 0.4%, which will be a positive input for Q1 GDP forecasts. Looking ahead, investors will receive the NFIB Small Business Optimism Index for March and the JOLTS - Job Openings report on Tuesday.Nasdaq Composite +19.9% YTD Russell 2000 +17.1% YTD S&P 500 +15.5% YTD Dow Jones Industrial Average +12.9% YTD