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Stocks Finish Strong in S&P 500 Rally
30-Oct-18 16:25 ET
Dow +431.72 at 24874.64, Nasdaq +111.36 at 7161.84, S&P +41.38 at 2682.77

https://www.briefing.com/investor/markets/stock-market-update/2018/10/30/stocks-finish-strong-in-s-and-p-500-rally.htm

[BRIEFING.COM] The S&P 500 gained 1.6% in Tuesday's session, in which it traded mostly in positive territory with all 11 S&P sectors closing higher. The notable gain reduces the benchmark index's month-to-date loss to 7.9% and puts it back into the green for the year (+0.3%).

Tuesday's price action in the S&P 500 oscillated with the volatility in large-cap technology stocks before finally taking a decisive swing upwards in the last hour of trading. The tech-heavy Nasdaq Composite, which had lost as much as 0.7% intraday, closed at its session high with a 1.6% gain.

Meanwhile, the Dow Jones Industrial Average added 1.8%, and the Russell 2000 added 2.0%.

The S&P 500's most heavily-weighted and battered information technology sector (+1.2%) kept the rally in check, as it was one of Tuesday's underperforming groups. Nevertheless, chipmakers supported the sector and outperformed the broader market, as the Philadelphia Semiconductor Index climbed 4.2%. Notable chipmaker NVDIA (NVDA 203.00, +17.38) jumped 9.4%.

Also providing the broader market some lift were the communication services (+2.5%), materials (+2.3%), energy (+2.3%), industrials (+2.0%), and consumer staples (+2.0%) sectors. Communication sector heavyweights Alphabet (GOOG 1036.21, +16.13, +1.6%) and Facebook (FB 146.22, +4.13, +2.9%) led the group higher, with Facebook rallying ahead of its earnings, which were due out following the closing bell.

Amazon (AMZN 1530.42, -8.46, -0.6%), however, continued to disappoint, as it was the only FANG member to post a loss. Shares of the e-commerce giant are down 25.0% from their September 4 record close.

In earnings, Dow components Pfizer (PFE 42.89, -0.34, -0.8%) and Coca-Cola (KO 47.63, +1.17, +2.5%) both reported better-than-expected profits. Pfizer, however, lowered its revenue guidance, while Coca-Cola reaffirmed its guidance. Additionally, former Dow component General Electric (GE 10.18, -0.98) fell 8.8% to its lowest level in nearly a decade after missing top and bottom line expectations and cutting its quarterly dividend from $0.12 per share to $0.01 per share.

Also, an honorable mention goes to Under Armour (UAA 23.23, +5.04) after it soared 27.7% following a better-than-expected earnings report.

In other markets, the U.S. Dollar Index climbed 0.4% to 97.00, touching its highest level since June 2017. Also, the yields on the 2-yr and 10-yr Treasury notes added two basis points each to 2.84% and 3.11%, respectively. Meanwhile, WTI crude decreased 1.2% to $66.24/bbl, hovering near a two-month low.

Overseas, Hong Kong's Hang Seng lost 0.9% on Tuesday, hitting a fresh low for the year, while China's Shanghai Composite gained 1.0% as the Chinese yuan reached its lowest level since mid 2008. Meanwhile, the Euro Stoxx 50 decreased 0.3% with Germany's DAX closing 0.4% lower.

Reviewing Friday's economic data, which included the Consumer Confidence Index for October and the Case-Shiller 20-City Index for August:

The Conference Board's Consumer Confidence Index, which revolves heavily around labor market and business conditions, increased to 137.9 in October (Briefing.com consensus 135.8) from a downwardly revised 135.3 (from 138.4) in September. The October reading is the highest since September 2000.
The key takeaway from the report is that strong employment growth continues to underpin favorable consumer attitudes about present-day conditions and the outlook.
The Case-Shiller 20-City Index for August rose 5.5% (Briefing.com consensus 5.9%), and the July increase was left unrevised at 5.9%.

Looking ahead, investors will receive the weekly MBA Mortgage Applications Index, the ADP Employment Change report for October, and the Q3 Employment Cost Index.

Nasdaq Composite +3.7% YTD
Dow Jones Industrial Average +0.6% YTD
S&P 500 +0.3% YTD
Russell 2000 -1.9% YTD