Market Snapshot
briefing.com
| Dow | 30530.25 | +641.47 | (2.15%) | | Nasdaq | 11069.29 | +270.95 | (2.51%) | | SP 500 | 3764.79 | +89.95 | (2.45%) | | 10-yr Note |
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| | NYSE | Adv 2446 | Dec 864 | Vol 1.2 bln | | Nasdaq | Adv 3235 | Dec 1472 | Vol 5.1 bln |
Industry Watch
| Strong: Energy, Consumer Staples, Consumer Discretionary, Health Care, Information Technology |
| | Weak: -- |
Moving the Market
-- Bounce from short-term oversold condition
-- Upside leadership from mega caps
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Closing Summary
21-Jun-22 16:15 ET
Dow +641.47 at 30530.25, Nasdaq +270.95 at 11069.29, S&P +89.95 at 3764.79
[BRIEFING.COM] The stock market had a one-track mind today and it was locked on a rebound effort following last week's dreadful showing. The major indices started on a high note and held their high ground throughout today's session without any meaningful interference from sellers.
All 11 S&P 500 sectors started higher and all 11 S&P 500 sectors finished higher. Today's gains ranged from 1.5% to 5.1%.
The best-performing sector was the energy sector (+5.1%), which also happened to be last week's worst-performing sector. A Credit Suisse upgrade of Exxon Mobil (XOM 91.47, +5.35, +6.2%) to Outperform from Neutral bolstered the sector's performance along with a bump in oil prices ($109.46, +1.40, +1.3%). Notwithstanding today's heady gain, the energy sector remains down 11.2% for the month.
It has been a June swoon indeed for the stock market. Entering today, the major indices were down 9.4-11.7% in June; hence, it wasn't a reach today to explain the positive price action as a bounce from deeply oversold conditions.
Market participants looked past seemingly negative happenings, like the bump in market rates, the fourth consecutive monthly decline in existing home sales, central bankers pointing to the prospect of additional rate hikes, and reports that Shenzhen and Macau are seeing rising COVID cases.
The default consideration instead was to go with the rebound-minded flow. Fittingly, there was an all-boats-rise-with-the-tide mentality that carried small, mid, large, and mega-cap stocks higher, and pushed value stocks up along with growth stocks.
The mega-cap stocks, though, held a performance edge over most classes. That made sense in the context of today's rebound-minded trade since the mega-cap stocks have been among the hardest-hit stocks this year. The Vanguard Mega-Cap Growth ETF (MGK) jumped 2.6% versus a 1.7% gain for the Invesco S&P 500 Equal Weight ETF (RSP).
Alas, relative weakness today was measured predominately in terms of what areas were up the least, as opposed to which ones were down the most. To put a fine point on that distinction, the S&P 500 financials sector was up a healthy 2.0%, yet it still underperformed the S&P 500 (+2.5%).
Reviewing today's economic data:
- Existing home sales decreased 3.4% month-over-month in May to a seasonally adjusted annual rate of 5.41 million (Briefing.com consensus 5.40 million) versus a downwardly revised 5.60 million (from 5.61 million) in April. Total sales in April were down 8.6% from a year ago.
- The key takeaway from the report is that the supply of available homes for sale remains extremely tight, yet higher mortgage rates and home price inflation are contributing to a slowdown in buyer demand rooted in affordability pressures that are expected to persist.
Looking ahead, market participants will receive the weekly MBA Mortgage Applications Index at 7:00 a.m. ET on Wednesday. In addition, Fed Chair Powell will deliver his semiannual monetary policy report to the Senate Banking Committee at 9:30 a.m. ET.
- Dow Jones Industrial Average: -15.6% YTD
- S&P 400: -20.7% YTD
- S&P 500: -21.0% YTD
- Russell 2000: -24.3% YTD
- Nasdaq Composite: -29.2% YTD
Broad-based strength into the close
21-Jun-22 15:30 ET
Dow +698.44 at 30587.22, Nasdaq +301.82 at 11100.16, S&P +98.33 at 3773.17
[BRIEFING.COM] The S&P 500 (+2.8%) and Dow Jones Industrial Average (+2.5%) have set new session highs in recent trading while the Nasdaq (+2.9.%) is moving sideways heading into the close.
All 11 S&P 500 sectors remain in the green with the energy (+5.6%) sector leading the outperformers this whole day.
WTI crude oil futures settled the pit session up 1.3% to $109.46/bbl. Natural gas futures settled down 2.0% to $6.82/mmbtu.
Looking ahead to Wednesday, market participants will receive the weekly mortgage applications at 7:00 a.m. ET.
Additionally, Fed Chair Powell's semi-annual congressional testimony is starting tomorrow at 9:30 a.m. ET with the Senate Banking Committee.
Mega caps continue to support broader market
21-Jun-22 15:00 ET
Dow +728.90 at 30617.68, Nasdaq +304.46 at 11102.80, S&P +100.65 at 3775.49
[BRIEFING.COM] The Dow Jones Industrial Average (+2.2%) has set a new session high in recent trading and continues to climb. The S&P 500 (+2.7%) is also on an incline, trading near its session high. The Nasdaq (+2.8%) is little changed in the last half hour.
The mega caps are continuing to drive the rebound effort. The Vanguard Mega Cap Growth ETF (MGK), up 2.6%, has outperformed the Invesco S&P 500 Equal Weight ETF (RSP), up 1.8%, for the entirety of the session.
On a related note, the small and mid cap stocks are lagging the broader market today as evidenced by the Russell 2000 (+1.9%) and S&P Mid Cap 400 (+1.3%) showing relative weakness, though staying in the green.
Separately, the 10-yr Treasury note yield is on an incline, currently up seven basis points to 3.30%. The 2-yr note yield hasn't seen much action in either direction, currently up three basis points to 3.22%.
Centene outperforms on Credit Suisse upgrade
21-Jun-22 14:25 ET
Dow +624.46 at 30513.24, Nasdaq +286.41 at 11084.75, S&P +90.47 at 3765.31
[BRIEFING.COM] The S&P 500 (+2.46%) has moved mostly sideways this afternoon, still firmly in second place among the major averages.
S&P 500 constituents Diamondback Energy (FANG 131.59, +9.30, +7.60%), Centene (CNC 81.04, +4.72, +6.18%), and Quanta Services (PWR 119.93, +6.08, +5.34%) pepper the top of the index. FANG is up nicely as a result of news about plans to update its capital return program and raise its base dividend, while CNC caught a morning upgrade to Outperform at Credit Suisse.
Meanwhile, kidney dialysis company DaVita (DVA 75.49, -13.99, -15.63%) is today's worst performer as a result of today's Supreme Court ruling in the Marietta Memorial Hospital Employee Health Benefit Plan case.
Gold narrowly lower to open abbreviated week
21-Jun-22 14:00 ET
Dow +577.40 at 30466.18, Nasdaq +298.95 at 11097.29, S&P +88.52 at 3763.36
[BRIEFING.COM] With about two hours to go the tech-heavy Nasdaq Composite (+2.77%) holds a decent lead among the major averages.
Gold futures settled $1.80 lower (-0.1%) to $1,838.80/oz, settling narrowly lower in an up and down session which saw a high of about $1,848.40.
Meanwhile, the U.S. Dollar Index is down about -0.3% to $104.41.
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