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To: Return to Sender who wrote (85561)

8/29/2020 12:49:59 PM

From: Return to Sender

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S&P 500 notches sixth straight record high
28-Aug-20 16:15 ET

Dow +161.60 at 28653.87, Nasdaq +70.30 at 11695.64, S&P +23.46 at 3508.01

briefing.com

[BRIEFING.COM] The S&P 500 gained 0.7% on Friday for its sixth straight record-setting advance. The Nasdaq Composite gained 0.6% to close at a record high, the Dow Jones Industrial Average gained 0.6%, and the Russell 2000 gained 0.9%.

All 11 S&P 500 sectors closed in positive territory, with energy (+1.9%) and materials (+1.1%) rising more than 1.0%. The information technology sector (+1.0%) was next in line, but it was perhaps the most influential gainer today given its top-weighted position in the S&P 500. The health care sector (+0.2%) lagged.

In the tech space, Workday (WDAY 243.88, +27.25, +12.6%), HP Inc. (HPQ 19.85, +1.15, +6.2%), Dell (DELL 66.21, +3.78, +6.1%), and VMware (VMW 146.09, +3.19, +2.2%) stood out as earnings winners. Semiconductor stocks also chipped in a solid outing, evident by the 2.0% increase in the Philadelphia Semiconductor Index.

There was no one specific catalyst today, but investors did receive another batch of better-than-expected economic data that helped broaden out the gains.

For July, personal income increased 0.4% m/m (Briefing.com consensus -0.2%) and personal spending rose 1.9% m/m (Briefing.com consensus +1.5%). The final University of Michigan Index of Consumer Sentiment for August ticked up to 74.1 (Briefing.com consensus 72.8) from the preliminary reading of 72.8.

The data provided some fuel for the reopening stocks like casinos, airlines, cruise lines, and hotels. Shares of MGM Resorts (MGM 23.86, +1.05, +4.6%) rose nearly 5%, even as the company announced plans to lay off 18,000 furloughed employees as a result of the pandemic.

U.S. Treasuries finished mixed. The 2-yr yield was flat at 0.15%, and the 10-yr yield declined two basis points to 0.73%. The U.S. Dollar Index fell 0.7% to 92.32. WTI crude futures declined 0.1% to $42.97/bbl. The CBOE Volatility Index declined 6.2% to 22.96 after touching 26.30 at its intraday high.

Reviewing Friday's economic data:

Personal income increased 0.4% m/m in July (Briefing.com consensus -0.2%), which was much better than expected, and personal spending rose 1.9% m/m (Briefing.com consensus +1.5%), which was also much better than expected. The PCE Price Index and core-PCE Price Index both increased 0.3% m/m and were weaker than expected increases of 0.4% and 0.5%, respectively. That left the PCE Price Index up 1.0% yr/yr, versus 0.9% in June, and the core PCE Price Index up 1.3% yr/yr, versus 1.1% in June.
- The key takeaway from the report is that the income gain was driven by an increase in compensation (+1.3% m/m), which more than offset a 1.7% m/m decrease in personal current transfer receipts. In other words, the income gain was driven by people returning to work as the economy reopened.
The final University of Michigan Index of Consumer Sentiment for August ticked up to 74.1 (Briefing.com consensus 72.8) from the preliminary reading of 72.8. The final reading for July was 72.5.
- The key takeaway from the report is that consumer sentiment has been slow to rebound and that the incremental improvement seen has been based simply on the view that things couldn't get worse than they were at the depths of the shutdown period.
The Chicago PMI for August decreased to 51.2 from 51.9 in July.
Wholesale inventories decreased 0.1% in July following a revised 1.3% decline in June (from -1.4%).

Investors will not receive any notable economic data on Monday.

Nasdaq Composite +30.4% YTD
S&P 500 +8.6% YTD
Dow Jones Industrial Average +0.4% YTD
Russell 2000 -5.4% YTD

Market Snapshot

Dow	28653.87	+161.60	(0.57%)
Nasdaq	11695.64	+70.30	(0.60%)
SP 500	3508.01	+23.46	(0.67%)
10-yr Note	+2/32	0.737

NYSE	Adv 2056	Dec 914	Vol 789.0 mln
Nasdaq	Adv 2176	Dec 1105	Vol 3.0 bln

Industry Watch

Strong: Information Technology, Energy, Materials, Industrials

Weak: Health Care

Moving the Market

-- Another record-setting performance

-- Gains broadened out amid better-than-expected economic data

-- Tech sector remained an influential leader