Nasdaq closes at new high, while S&P 500 comes up short
17-Aug-20 16:15 ET
Dow -86.11 at 27844.91, Nasdaq +110.42 at 11129.80, S&P +9.14 at 3381.99
briefing.com
[BRIEFING.COM] The S&P 500 increased 0.3% on Monday but came up short yet again of a record close. The Nasdaq Composite, however, did close at a new record high with a 1.0% gain, while the Dow Jones Industrial Average declined 0.3%. The Russell 2000 increased 0.5%.
While it was generally a positive start to the week, investors leaned defensively amid perceived growth concerns attributed to increased U.S.-China tensions, a lack of progress in coronavirus relief talks, and Warren Buffett's Berkshire Hathaway (BRK.B 206.78, -4.18, -2.0%) reducing positions in several bank stocks.
Illustrating the defensive bias, the S&P 500 consumer discretionary (+1.2%), real estate (+0.9%), information technology (+0.7%), and health care (+0.6%) sectors assumed today's leadership for their exposure to the mega-caps and stable businesses. Gold prices gained 2.4% to $1996.80/ozt, and longer-dated Treasuries saw an uptick in demand.
Conversely, the financials (-1.5%), energy (-0.6%), industrials (-0.5%), and utilities (-0.1%) sectors returned to their usual ways this year by closing in negative territory.
Sentiment in the financial sector was pressured after a 13F filing revealed Berkshire Hathaway decreased positions in JPMorgan Chase (JPM 99.71, -2.70, -2.6%) and Wells Fargo (WFC 24.47, -0.83, -3.3%) in the second quarter. Notably, Berkshire added a new position in Barrick Gold (GOLD 30.13, +3.14, +11.6%).
In U.S.-China news, the U.S. further restricted Huawei's access to U.S. chip technology, and President Trump signed a second executive order requiring TikTok to divest its U.S. operations in 90 days. President Trump also suggested there could still be actions against other Chinese companies, including Alibaba (BABA 256.96, +2.99, +1.2%).
In the mega-cap space, NVIDIA (NVDA 493.48, +30.92, +6.7%), Home Depot (HD 288.24, +7.69, +2.7%), and Walmart (WMT 135.60, +3.00, +2.3%) rallied to fresh all-time highs ahead of their earnings reports this week. Tesla (TSLA 1835.64, +184.93, +11.2%) also climbed to new highs with an 11% gain.
U.S. Treasuries, as previously noted, had a decent outing, particularly on the longer-end of the curve. The 2-yr yield increased two basis points to 0.15%, while the 10-yr yield declined three basis points to 0.68%. The U.S. Dollar Index declined 0.3% to 92.81. WTI crude futures gained 2.2%, or $0.89, to $42.94/bbl.
Reviewing Monday's economic data:
- The NAHB Housing Market Index increased to an all-time high of 78 in August (Briefing.com consensus 74), as builders have seen, and continue to see, strong demand for new single-family homes.
- The Empire State Manufacturing Survey for August declined to 3.7 (Briefing.com consensus 15.0) following the prior month's reading of 17.2.
Looking ahead, investors will receive Housing Starts and Building Permits for July on Tuesday.
- Nasdaq Composite +24.0% YTD
- S&P 500 +4.7% YTD
- Dow Jones Industrial Average -2.4% YTD
- Russell 2000 -5.0% YTD
Market Snapshot
| Dow | 27844.91 | -86.11 | (-0.31%) | | Nasdaq | 11129.80 | +110.42 | (1.00%) | | SP 500 | 3381.99 | +9.14 | (0.27%) | | 10-yr Note | +1/32 | 0.697 |
|
| | NYSE | Adv 1513 | Dec 1448 | Vol 744.6 mln | | Nasdaq | Adv 1860 | Dec 1487 | Vol 3.1 bln |
Industry Watch
| Strong: Consumer Discretionary, Information Technology, Health Care, Consumer Staples |
| | Weak: Financials, Energy, Industrials, Utilities |
Moving the Market
-- S&P 500 and Nasdaq lean on positive momentum
-- Relative weakness in financial stocks
-- Defensive mindset amid ongoing U.S.-China tensions, lack of progress in coronavirus relief talks, Warren Buffett's second quarter moves
-- Relatively light trading volume
|
WTI crude settles higher but energy stocks lag
17-Aug-20 15:25 ET
Dow -88.75 at 27842.27, Nasdaq +115.11 at 11134.49, S&P +9.57 at 3382.42
[BRIEFING.COM] The S&P 500 continues to trade higher by 0.3%, and the Russell 2000 is up 0.4%.
One last look at the S&P 500 sectors shows the market getting solid support from the consumer discretionary (+1.3%), information technology (+0.7%), and health care (+0.6%) sectors. The financials (-1.5%), energy (-0.8%), and industrials (-0.6%) sectors flounder in negative territory.
WTI crude futures settled higher by 2.2%, or $0.89, to $42.94/bbl. |
