Market wraps up tremendous quarter on positive note
30-Jun-20 16:20 ET
Dow +217.08 at 25812.90, Nasdaq +184.61 at 10058.77, S&P +47.05 at 3100.16
briefing.com
[BRIEFING.COM] The S&P 500 gained 1.5% on Tuesday to close out a tremendous second quarter, while the Nasdaq Composite (+1.9%) pulled ahead amid strength in its mega-cap and semiconductor components. The Dow Jones Industrial Average increased 0.9%, and the Russell 2000 increased 1.4%.
The gains were broad, with all 11 S&P 500 sectors closing in positive territory. Eight sectors rose at least 1.0%, including a 2% gain in the energy sector (+2.2%), while the utilities sector (+0.4%) lagged. The most influential gains, though, were found in the mega-cap stocks, including Tesla (TSLA 1079.81, +70.46, +7.0%) and NVIDIA (NVDA 379.91, +11.91, +3.2%).
TSLA shares surged in anticipation of the company's Q2 delivery results this week, while NVDA shares rose alongside the broader semiconductor space after Micron (MU 51.52, +2.38, +4.8%) and Xilinx (XLNX 98.39, +6.43, +7.0%) provided upbeat guidance. Micron also topped quarterly expectations. The Philadelphia Semiconductor Index rose 2.7%.
On the downside, Boeing (BA 183.30, -11.19, -5.8%) was a noticeable drag on the Dow after Norwegian Air and BOC Aviation reportedly canceled plane orders from the company. Note, BA shares did climb 14% on Monday. Wells Fargo (WFC 25.60, -0.10, -0.4%), meanwhile, said it expects to reduce its Q3 dividend following its stress test results.
In M&A activity, Uber (UBER 31.08, +1.45, +4.9%) reportedly started discussions to acquire Postmates for $2.6 billion, while lululemon athletica (LULU 312.01, +17.66, +6.0%) agreed to acquire in-home fitness company MIRROR for $500 million.
Separately, Fed Chair Powell and Treasury Secretary Mnuchin testified before the House Financial Services Committee about the measures taken to support the economy. Market reaction was muted, as nothing new was particularly said.
U.S. Treasuries finished near their starting positions. The 2-yr yield declined one basis point to 0.15%, and the 10-yr yield increased two basis points to 0.65%. The U.S. Dollar Index decreased 0.2% to 97.38. WTI crude declined 1.0%, or $0.39, to $39.28/bbl.
Reviewing Tuesday's economic data:
- The Conference Board's Consumer Confidence Index for June increased to 98.1 (Briefing.com consensus 92.0) from a downwardly revised 85.9 (from 86.6) for May.
- The improvement is welcome, yet the key takeaway from the report is that the index remains well below the February reading of 132.6, which predated the COVID-19 shutdown effort.
- The Chicago PMI for June increased to 36.6 (Briefing.com consensus 45.0) from 32.3 in May.
- The S&P Case-Shiller Home Price Index increased 4.0% in April (Briefing.com consensus 4.1%) following a 3.9% increase in March.
Looking ahead to Wednesday, investors will receive the ISM Manufacturing Index for June, the ADP Employment Change report for June, the FOMC Minutes from the June meeting, Construction Spending for May, the weekly MBA Mortgage Applications Index, and auto and truck sales for June.
- Nasdaq Composite +12.1% YTD
- S&P 500 -4.0% YTD
- Dow Jones Industrial Average -9.6% YTD
- Russell 2000 -13.6% YTD
Market Snapshot
| Dow | 25812.90 | +217.08 | (0.85%) | | Nasdaq | 10058.77 | +184.61 | (1.87%) | | SP 500 | 3100.16 | +47.05 | (1.54%) | | 10-yr Note | -25/32 | 0.662 |
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| | NYSE | Adv 1898 | Dec 1036 | Vol 1.2 bln | | Nasdaq | Adv 2258 | Dec 1105 | Vol 4.4 bln |
Industry Watch
| Strong: Energy, Information Technology, Consumer Discretionary, Health Care |
| | Weak: Utilities |
Moving the Market
-- Stock market gains in broad-based advance to close out tremendous quarter
-- Mega-caps exert influential leadership while semiconductor stocks rally following some positive earnings-related news
-- Boeing (BA) drags on Dow after reportedly receiving plane order cancellations
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WTI crude declines 1%
30-Jun-20 15:25 ET
Dow +76.75 at 25672.57, Nasdaq +148.52 at 10022.68, S&P +32.91 at 3086.02
[BRIEFING.COM] The S&P 500 is up 1.1% and is on track to end the quarter with a 19.4% gain.
One last look at the S&P 500 sectors shows all 11 groups trading higher. The information technology (+1.4%), consumer discretionary (+1.3%), and health care (+1.2%) sectors outperform, while the utilities (+0.1%) and consumer staples (+0.1%) sectors are up just 0.1%.
WTI crude futures settled lower by $0.39 (-1.0%) to $39.28/bbl. |
