Market Snapshot
briefing.com
| Dow | 35131.86 | +406.39 | (1.17%) | | Nasdaq | 14239.88 | +469.31 | (3.41%) | | SP 500 | 4515.55 | +83.70 | (1.89%) | | 10-yr Note | -3/32 | 1.804 |
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| | NYSE | Adv 2673 | Dec 621 | Vol 1.4 bln | | Nasdaq | Adv 3564 | Dec 805 | Vol 5.0 bln |
Industry Watch
| Strong: Consumer Discretionary, Information Technology, Communication Services |
| | Weak: Energy, Consumer Staples |
Moving the Market
-- Growth stocks pace rebound rally
-- Month-end rebalancing activity
-- S&P 500 reclaims 200-day moving average (4437)
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Stocks end January on a high note
31-Jan-22 16:15 ET
Dow +406.39 at 35131.86, Nasdaq +469.31 at 14239.88, S&P +83.70 at 4515.55
[BRIEFING.COM] The S&P 500 rose 1.9% on Monday in a steady advance paced by the growth stocks. The Nasdaq Composite (+3.4%) and Russell 2000 (+3.1%) outperformed with gains over 3.0%, while the Dow Jones Industrial Average underperformed on a relative basis with a 1.2% gain.
There weren't any specific macro catalysts today. Instead, the market received support from month-end rebalancing activity that disproportionately benefited growth stocks after a dismal January, an improving technical posture as the S&P 500 reclaimed its 200-day moving average (4437), and a fear of missing out on further gains.
All 11 S&P 500 sectors closed in positive territory amid another strong finish. The consumer discretionary (+3.8%), information technology (+2.7%), and communication services (+2.4%) sectors, which contain the mega-caps, finished atop the standings while the energy sector increased just 0.4%.
The rebalancing into growth stocks was further aided by positive-minded analyst recommendations, specifically in Tesla (TSLA 936.72, +90.37, +10.7%), Netflix (NFLX 427.14, +42.78, +11.1%), Spotify (SPOT 196.26, +23.28, +13.5%), and Beyond Meat (BYND 65.13, +8.59, +15.2%), which were all upgraded to the equivalent of Buy ratings.
Citrix Systems (CTXS 101.94, -3.61, -3.4%) was an exception after announcing a deal to be taken private for $16.5 billion, or $104 per share, in cash. Shareholders were disappointed by the purchase price, which was less than the closing price last Friday.
Separately, Atlanta Fed President Bostic (not an FOMC voter) said a 50-basis-point rate-hike in March is a possibility but not his preference. Kansas City Fed President George (FOMC voter) commented that gradual rate rises are always preferred while Richmond Fed President Barkin (not an FOMC voter) told CNBC that the speed at which the Fed hikes rates depends on the economy.
The Treasury market, meanwhile, was much more reserved than the stock market. The 2-yr yield decreased one basis point to 1.16%, and the 10-yr yield was unchanged at 1.78%. The U.S. Dollar Index pulled back 0.7% to 96.63. WTI crude futures settled above $88 per barrel ($88.16, +1.42, +1.6%).
Overall, today was a light news day, at least compared to the rest of the week, which will feature more mega-cap earnings, key manufacturing and employment data, and central bank meetings in Europe. Rather than shying away from risk assets in front of these events, investors were steadfast in the rebound pursuit.
Monday's economic data was limited to the Chicago PMI for January, which increased to 65.2 (Briefing.com consensus 62.5) from a revised 64.3 (from 63.1) in December. Looking ahead, investors will receive the ISM Manufacturing Index for January, Construction Spending for December, and the JOLTS - Job Openings report for December on Tuesday.
- Dow Jones Industrial Average -3.3% YTD
- S&P 500 -5.3% YTD
- Nasdaq Composite -9.0% YTD
- Russell 2000 -9.7% YTD
Crude futures settle above $88 per barrel
31-Jan-22 15:30 ET
Dow +191.53 at 34917.00, Nasdaq +323.51 at 14094.08, S&P +50.70 at 4482.55
[BRIEFING.COM] The S&P 500 is up 1.2% and has seen some minor volatility in the past 30 minutes.
One last look at the sectors shows consumer discretionary (+3.0%) still in the lead with a 3% gain, while the consumer staples sector (+0.2%) continues to cling onto a slim gain. All 11 sectors are trading higher.
WTI crude futures settled higher by 1.6%, or $1.42, to $88.16/bbl. |
