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End of Day Brief - Monday June 14 - Late day buying lift S&P to new high

Dow34393.75-85.85(-0.25%)
Nasdaq14174.14+104.72(0.74%)
SP 5004255.15+7.71(0.18%)
10-yr Note -3/321.486
NYSEAdv 1505 Dec 1762 Vol 881.5 mln
NasdaqAdv 2032 Dec 2248 Vol 4.3 bln


Industry Watch

Strong: Information Technology, Communication Services
Weak: Materials, Financials, Industrials


Moving the Market

-- Large-cap technology/growth stocks outperformed value/cyclical stocks

-- Cautious-minded rotation ahead of FOMC policy statement on Wednesday

-- S&P 500 and Nasdaq close at record highs


Strong finish lifts S&P 500 and Nasdaq to new highs

Dow -85.85 at 34393.75, Nasdaq +104.72 at 14174.14, S&P +7.71 at 4255.15

[BRIEFING.COM] The S&P 500 (+0.2%) eked out intraday and closing record highs on Monday, helped by an unprovoked wave of buyers in the last 30 minutes of action. The Nasdaq Composite (+0.7%) outperformed and closed at its first record high since April amid increased demand for large-cap technology stocks.

The Dow Jones Industrial Average (-0.3%) and Russell 2000 (-0.4%) underperformed in negative territory.

The information technology (+1.0%) and communication services (+0.7%) sectors were steady leaders for most of the day, while the materials (-1.3%), financials (-1.0%), and industrials (-0.5%) struggled throughout the day.

Growth stocks like Apple ($AAPL 130.48, +3.13, +2.5%), Facebook ($FB 336.77, +5.51, +1.7%), and Tesla ($TSLA 617.69, +7.80, +1.3%) easily outpaced value/non-tech stocks like JPMorgan Chase ($JPM 157.57, -2.72, -1.7%) and Caterpillar ($CAT 219.01, -1.69, -0.8%) on no specific macro developments.

This was interesting because the 10-yr yield increased four basis points to 1.50%, which would normally have favored JPM and undercut growth stocks on any other day. Tesla even received a price-target cut to $812 from $974 at Canaccord Genuity.

Presumably, investors continued to take profits in cyclical stocks, and rotate into growth stocks, as a precaution ahead of the FOMC policy decision on Wednesday. Caterpillar, for instance, extended its monthly decline to over 9.0%.

To be fair, JPMorgan CEO Jamie Dimon did provide lower-than-expected forecasts for trading revenue and net interest income at the Morgan Stanley U.S. Financials Conference. The divergence between growth and value had already taken shape prior to his comments, though.

Separately, Novavax ($NVAX 207.71, -1.97, -0.9%) said its COVID-19 vaccine had an overall efficacy rate of 90.4% in a Phase 3 trial. NVAX shares faded an early 9.5% gain in a sell-the-news reaction.

The 2-yr yield was unchanged at 0.15%. The U.S. Dollar Index decreased 0.1% to 90.50. WTI crude futures decreased 0.1%, or $0.09, to $70.91/BBL.

Investors did not receive any economic data on Monday. Looking ahead to Tuesday, key reports will include Retail Sales for May, the Producer Price Index for May, and Industrial Production and Capacity Utilization for May.

  • Russell 2000 +17.8% YTD
  • S&P 500 +13.3% YTD
  • Dow Jones Industrial Average +12.4% YTD
  • Nasdaq Composite +10.0% YTD

Source: (Briefing.com)

Disclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal.

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