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End of Day Brief - Monday June 21 - Markets pop on reversal day

Dow33876.97+586.89(1.76%)
Nasdaq14141.48+111.10(0.79%)
SP 5004224.79+58.34(1.40%)
10-yr Note -5/321.496
NYSEAdv 2400 Dec 818 Vol 1.0 bln
NasdaqAdv 2380 Dec 1787 Vol 4.4 bln


Industry Watch

Strong: Energy, Industrials, Financials, Materials
Weak: Consumer Discretionary


Moving the Market

-- Market rebounds in broad-based rally led by the value/cyclical stocks

-- S&P 500 closes back above its 50-day moving average (4184)

-- Treasury yield curve undid some of last Friday's flattening activity


Market has a rebound rally

Dow +586.89 at 33876.97, Nasdaq +111.10 at 14141.48, S&P +58.34 at 4224.79

[BRIEFING.COM] The S&P 500 rose 1.4% on Monday in a rebound rally led by the value/cyclical stocks. The Dow Jones Industrial Average (+1.8%) and Russell 2000 (+2.2%) outpaced the benchmark index following poor performances last week, while the Nasdaq Composite (+0.8%) gained 0.8%.

The market really gained traction early in the session after the S&P 500 reclaimed its 50-day moving average (4184), which has acted as a strong measure of support over the past 14 months. Given this observation, and the lack of market-moving news, the bullish price action likely fed onto itself and stirred a fear of missing out on a technically-driven rally.

All 11 S&P 500 sectors and all 30 Dow components finished in positive territory, with the biggest gains scored in the cyclical sectors that sold off last week -- energy (+4.3%), financials (+2.4%), industrials (+2.2%), and materials (+2.1%). The consumer discretionary sector (+0.5%) increased the least with a modest gain.

Bank stocks showed notable strength, as the Treasury yield curve unwound some of last Friday's flattening activity. The SPDR S&P Bank ETF ($KBE 51.42, +1.73, +3.5%) gained 3.5% after declining 7.6% in the prior two sessions.

The 10-yr yield increased three basis points to 1.48%, while the 2-yr yield decreased one basis point to 0.25%. The U.S. Dollar Index declined 0.4% to 91.86, providing some relief for commodities like WTI crude ($73.64/BBL, +1.97, +2.8%) and copper ($4.184/LB, +0.03, +0.6%).

Apple ($AAPL 132.30, +1.84, +1.4%) and Microsoft ($MSFT 262.63, +3.20, +1.2%) stealthily advanced more 1.0%, with MSFT setting a record high in the process. Semiconductor companies NVIDIA ($NVDA 737.09, -8.46, -1.1%) and Advanced Micro Devices ($AMD 82.59, -2.06, -2.4%) struggled on reports that retail prices have declined sharply in Europe.

Mid-cap companies FIGS ($FIGS 42.61, +6.21, +17.1%) and ZipRecruiter ($ZIP 23.51, +2.25, +10.6%) rallied on positive-minded analyst recommendations.

Investors did not receive any economic data on Monday. Looking ahead, investors will receive Existing Home Sales for May on Tuesday.

  • Russell 2000 +15.8% YTD
  • S&P 500 +12.5% YTD
  • Dow Jones Industrial Average +10.7% YTD
  • Nasdaq Composite +9.7% 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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