Market Snapshot
briefing.com
| Dow | 34575.31 | +45.86 | (0.13%) | | Nasdaq | 13736.50 | -12.26 | (-0.09%) | | SP 500 | 4202.04 | -2.07 | (-0.05%) | | 10-yr Note | -3/32 | 1.614 |
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| | NYSE | Adv 2422 | Dec 924 | Vol 1.0 bln | | Nasdaq | Adv 2767 | Dec 1512 | Vol 4.1 bln |
Industry Watch
| Strong: Energy, Real Estate, Financials, Industrials, Materials |
| | Weak: Health Care, Information Technology, Utilities, Consumer Staples |
Moving the Market
-- Large-cap indices fade strong start and close little changed
-- Cyclical stocks outperformed in reopening trade, supported by better-than-expected manufacturing data
-- Oil prices rise and long-term interest rates ticked higher
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Large-cap indices fade positive start and close little changed
01-Jun-21 16:15 ET
Dow +45.86 at 34575.31, Nasdaq -12.26 at 13736.50, S&P -2.07 at 4202.04
[BRIEFING.COM] The S&P 500 declined 0.1% on Tuesday after starting with a 0.7% gain and finding resistance at its all-time highs from last month. The Dow Jones Industrial Average (+0.1%) and Nasdaq Composite (-0.1%) also closed little changed and off early highs, while the Russell 2000 rose 1.1%.
The strong start was fueled by first-of-the-month inflows and a news cycle that fed into the reopening optimism: better-than-expected manufacturing PMIs for May out of the U.S. and Europe, the OECD boosting its global growth forecasts for 2021 and 2022, OPEC+ commenting on strong oil demand, and reports highlighting solid activity in airports and movie theaters over the weekend.
The S&P 500 energy sector (+3.9%) stood atop the sector leaderboard with a 4% gain, further supported by higher oil prices ($67.79/bbl, +1.47, +2.2%) and a decision from OPEC+ to gradually ease current supply cuts.
The real estate (+1.7%), materials (+1.4%), financials (+0.7%), and industrials (+0.4%) sectors also closed higher. Boeing (BA 254.73, +7.71, +3.1%) underpinned the move in the industrials sector after the stock was upgraded to Outperform from Market Perform at Cowen.
Conversely, the health care sector (-1.6%) underperformed with a 1.6% decline, yet it was the information technology sector (-0.4%) that exerted the influential weakness. The health care sector was pressured by weakness in Abbott Labs (ABT 105.79, -10.86, -9.3%), which dropped 9% after lowering its FY21 guidance due to a rapid decline in COVID-19 testing demand.
Tech stocks, and growth stocks in general, struggled amid an uptick in long-term interest rates, which corroborated the reopening theme. The 10-yr yield increased three basis points to 1.62% while the 2-yr yield increased one basis point to 0.15%. The U.S. Dollar Index decreased 0.2% to 89.89.
In other corporate news, AMC Entertainment (AMC 32.04, +5.92, +22.7%) remained a heavily-traded stock and rose 23% after the company raised $230.5 million in cash by selling shares to Mudrick Capital Management. Cloudera (CLDR 15.93, +3.07, +23.7%) agreed to be acquired by Clayton, Dubilier & Rice and KKR for $16.00 per share, or $5.3 billion, in cash.
Reviewing Tuesday's economic data:
- The ISM Manufacturing Index for May moved up to 61.2% (Briefing.com consensus 61.0%) from 60.7% in April. A number above 50.0% connotes an expansion in manufacturing activity. May marked the twelfth straight month of expansion.
- The key takeaway from the report is the finding that companies and suppliers continue to struggle to meet increasing levels of demand. That's a good harbinger for manufacturers, yet it also suggests inflation pressure will persist.
- Total construction spending increased 0.2% m/m in April (Briefing.com consensus 0.5%) following an upwardly revised 1.0% increase (from 0.2%) in March. Total private construction rose 0.4% m/m while total public construction spending decreased 0.6%.
- The key takeaway from the report is the ongoing strength in private residential construction spending, which is a byproduct of strong demand driven by a scarce supply of existing homes for sale.
- The final IHS Market Manufacturing PMI for April checked in at 62.1%, up from 61.5% in the preliminary reading.
Looking ahead, investors will receive the weekly MBA Mortgage Applications Index and the Fed's Beige Book for June on Wednesday.
- Russell 2000 +16.2% YTD
- Dow Jones Industrial Average +13.0% YTD
- S&P 500 +11.9% YTD
- Nasdaq Composite +6.6% YTD
Crude futures settle close to $68 per barrel
01-Jun-21 15:30 ET
Dow +54.15 at 34583.60, Nasdaq +8.16 at 13756.92, S&P +1.25 at 4205.36
[BRIEFING.COM] The S&P 500 is relatively unchanged and trading a few points above the 4200 level, which has been a level the S&P 500 has flirted with over the past week.
One last look at the S&P 500 sectors shows energy (+3.6%), real estate (+1.6%), materials (+1.5%), and financials (+0.7%) in the lead with decent gains, while the health care sector (-1.5%) remains firmly at the bottom of the pack with a 1.5% decline.
WTI crude futures settled higher by 2.2%, or $1.47, to $67.79/bbl. On a related note, OPEC+ agreed to gradually increase the output of oil in June and July. |
