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End of Day Brief - Monday June 28 - Market mixed, S&P new high

Dow34283.27-150.57(-0.44%)
Nasdaq14500.51+140.12(0.98%)
SP 5004290.61+9.91(0.23%)
10-yr Note +27/321.473
NYSEAdv 1395 Dec 1934 Vol 920.0 mln
NasdaqAdv 2015 Dec 2329 Vol 4.2 bln


Industry Watch

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


Moving the Market

-- S&P 500 and Nasdaq extend reach into record territory

-- Cautious reports highlighting the spread of the Delta coronavirus variant and accompanying restrictions imposed in foreign countries

-- Growth stocks outperformed as 10-yr yield fell seven basis points to 1.47%

-- Cyclical/value stocks struggled in negative territory


Large caps push S&P 500 and Nasdaq to new highs

Dow -150.57 at 34283.27, Nasdaq +140.12 at 14500.51, S&P +9.91 at 4290.61

[BRIEFING.COM] The S&P 500 (+0.2%) and Nasdaq Composite (+1.0%) both set intraday and closing record highs on Monday, although it was the Nasdaq that leaped ahead by a sizable margin while the Dow Jones Industrial Average (-0.4%) and Russell 2000 (-0.5%) closed lower. The mega-cap stocks drove the outperformance of the Nasdaq.

Today's action was influenced by cautious reports highlighting the spread of the Delta coronavirus variant and the restrictions several countries imposed to curb infections. The macro backdrop fed into concerns about peak growth rates and contributed to defensive positioning in the heavily-weighted growth stocks and Treasuries.

These growth concerns were directly manifested in the underperformance of cyclical energy (-3.3%), financials (-0.8%), and industrials (-0.5%) sectors, a seven-basis-point decline in the 10-yr yield to 1.47%, and lower oil prices ($72.82/BBL, -1.14, -1.5%). Fortunately, the lower rates played a key part in helping drive the rotation into growth stocks.

The S&P 500 information technology sector (+1.1%), the Philadelphia Semiconductor Index (+2.5%), the Vanguard Mega Cap Growth ETF ($MGK 231.01, +2.19, +1.0%), and the ARK Innovation ETF ($ARKK 130.23, +4.74, +3.8%) -- places where many growth stocks reside -- notably outperformed the S&P 500.

In the mega-cap space, Facebook ($FB 355.64, +14.27, +4.2%) rose 4% and hit a $1 trillion market capitalization after a U.S. district court dismissed the FTC's antitrust lawsuit against the company. NVIDIA ($NVDA 799.40, +38.16, +5.0%) nearly hit a $500 billion market capitalization after several Arm customers voiced support for NVDA's acquisition of Arm.

The Facebook news gave the communication services sector (+0.8%) a nice intraday boost and helped the S&P 500 and Nasdaq finish on a high note. Separately, Boeing ($BAA 239.96, -8.42, -3.4%) weighed on the Dow, as reports suggested the company may not get FAA certification for its 777X until mid-2023.

The 2-yr yield declined two basis points to 0.25%. The U.S. Dollar Index increased 0.1% to 91.90.

Investors did not receive any economic data on Monday. Looking ahead, the Conference Board's Consumer Confidence Index for June, the FHFA Housing Price Index for April, and the S&P Case-Shiller Home Price Index for April will be released on Tuesday.

  • Russell 2000 +17.6% YTD
  • S&P 500 +14.2% YTD
  • Nasdaq Composite +12.5% YTD
  • Dow Jones Industrial Average +12.0% 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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