S&P 500 notches seventh straight gain as value/cyclical stocks outperform
10-Aug-20 16:15 ET
Dow +357.96 at 27791.44, Nasdaq -42.63 at 10968.42, S&P +9.19 at 3360.47
briefing.com
[BRIEFING.COM] The S&P 500 increased 0.3% on Monday, rising for the seventh straight session on the back of strong gains from the value-oriented and cyclical stocks. The Dow Jones Industrial Average (+1.3%) and Russell 2000 (+1.0%) gained at least 1.0%, while the Nasdaq Composite declined 0.4% amid relative weakness in the mega-caps.
Apple (AAPL 450.91, +6.46, +1.5%) was one of the few mega-caps that bucked the trend after Wedbush raised its price target on the stock to a Street-high of $515 from $475. Given its nearly $2 trillion valuation, and $450 stock price, its 1.5% gain was a major supporting factor in the large-cap indices.
The broader trend, though, was heavily in favor of beaten-down cyclical stocks like those within the energy (+3.1%) and industrials (+2.4%) sectors, which rose more than 2.0%. The materials (+1.0%) and consumer discretionary (+0.7%) sectors followed suit, while communication services (-0.5%), information technology (-0.3%), and health care (-0.3%) lagged.
Individual standouts included FedEx (FDX 199.98, +16.45, +9.0%), which was upgraded to Outperform from Market Perform at Bernstein, and MGM Resorts (MGM 21.65, +2.62, +13.8%) after InterActiveCorp (IAC 131.27, -1.78, -1.3%) acquired a 12% stake in the company.
In other developments, President Trump over the weekend signed executive orders to extend $400/week in enhanced unemployment, provide student loan relief, prevent evictions, and defer payroll taxes; while China said it will sanction 11 Americans, including several senators, for trying to undermine its authority over Hong Kong.
President Trump's orders will likely be challenged in the courts, but investors remained hopeful that lawmakers will reach a deal relatively soon. House Speaker Pelosi (D-CA) and Treasury Secretary Mnuchin suggested they were open to a narrower deal through the end of the year.
U.S. Treasuries finished near their flat lines. The 2-yr yield remained unchanged at 0.13%, and the 10-yr yield increased one basis point to 0.57%. The U.S. Dollar Index gained 0.2% to 93.58. WTI crude futures gained 1.9%, or $0.78, to $41.95/bbl.
Monday's economic data was limited to the JOLTS- Job Openings report, which showed job openings increase to 5.889 mln in June from a revised 5.371 mln in May (from 5.397 mln). Looking ahead, investors will receive the Producer Price Index for July and the NFIB Small Business Optimism Index for July on Tuesday.
- Nasdaq Composite +22.2% YTD
- S&P 500 +4.0% YTD
- Dow Jones Industrial Average -2.6% YTD
- Russell 2000 -5.0% YTD
Market Snapshot
| Dow | 27791.44 | +357.96 | (1.30%) | | Nasdaq | 10968.42 | -42.63 | (-0.39%) | | SP 500 | 3360.47 | +9.19 | (0.27%) | | 10-yr Note | -1/32 | 0.583 |
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| | NYSE | Adv 2148 | Dec 808 | Vol 864.1 mln | | Nasdaq | Adv 2005 | Dec 1273 | Vol 4.0 bln |
Industry Watch
| Strong: Energy, Industrials, Materials, Consumer Discretionary, Financials |
| | Weak: Communication Services, Information Technology, Health Care, Real Estate |
Moving the Market
-- Value and cyclical stocks outperformed
-- Apple (AAPL) gained another 1.5% after Wedbush raised its price target on the stock to a Street-high of $515 from $475.
-- China tensions, stimulus talks eyed
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WTI crude gains 2%, energy stocks outperform
10-Aug-20 15:30 ET
Dow +352.51 at 27785.99, Nasdaq -56.46 at 10954.59, S&P +8.16 at 3359.44
[BRIEFING.COM] The S&P 500 remains up by 0.2% and is on pace to close higher for the seventh straight session.
One last look at the S&P 500 sectors shows energy (+2.9%) and industrials (+2.5%) padding their strong gains, while the information technology (-0.6%) and communication services (-0.6%) sectors extend intraday losses.
WTI crude futures settled higher by 1.9%, or $0.78, to $41.95/bbl. |
