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S&P 500 ekes out gain ahead of Powell testimony
09-Jul-19 16:20 ET
Dow -22.65 at 26783.58, Nasdaq +43.35 at 8141.73, S&P +3.68 at 2979.63

https://www.briefing.com/investor/markets/stock-market-update/2019/7/9/s-and-p-500-ekes-out-gain-ahead-of-powell-testimony-.htm

[BRIEFING.COM] The S&P 500 increased 0.1% on Tuesday, as shares of large-cap technology stocks helped the stock market overcome a slow start. Overall, there appeared to be a wait-and-see mindset for potential market-moving catalysts this week, including Fed Chair Powell's semiannual monetary policy testimony on Capitol Hill tomorrow.

The Nasdaq Composite increased 0.5%, and the Russell 2000 increased 0.1%. The Dow Jones Industrial Average (-0.1%), however, lost ground as shares of 3M (MMM 165.70, -3.49, -2.1%) underperformed after the stock was downgraded to Sector Perform from Outperform at RBC Capital Mkts.

The stock market's lowest levels of the day came at the open, but investors quickly bought the dip, lifting the major indices from session lows. It still looked like the S&P 500 would close lower for the third straight day, though, until a swarm of buyers in the last 30 minutes of action helped stocks close near session highs.

Solid gains in the FAANG stocks -- Facebook (FB 199.21, +3.45, +1.8%), Apple (AAPL 201.24, +1.22, +0.6%), Amazon (AMZN 1988.30, +35.98, +1.8%), Netflix (NFLX 379.93, +3.77, +1.0%), and Alphabet (GOOG 1124.83, +8.48, +0.8%) -- contributed to the positive disposition. The S&P 500 real estate sector (+0.5%) was Tuesday's best-performing sector.

On the downside, the materials (-1.0%), consumer staples (-0.6%), and industrials (-0.2%) sectors were the lone sectors that finished lower. PepsiCo's (PEP 131.74, -0.82, -0.6%) better-than-expected earnings results were unable to stir further buying interest in the stock or the consumer staples sector.

In other corporate news, Acacia Communications (ACIA 64.91, +16.85, +35.1%) agreed to be acquired by Cisco (CSCO 56.34, +0.15, +0.3%) for $2.6 billion, or $70 per share, in cash. The deal represented a 46% premium to ACIA's closing price on Monday.

Separately, USTR Lighthizer and Treasury Secretary Mnuchin spoke to China's Vice Premier Liu He on Tuesday, according to CNBC. Market reaction was muted, as it was expected that there would be a phone call this week to continue trade talks.

U.S. Treasuries finished slightly lower in another tight-ranged session. The 2-yr yield increased one basis point to 1.90%, and the 10-yr yield increased two basis points to 2.05%. The U.S. Dollar Index advanced 0.1% to 97.51. WTI crude increased 0.7% to $57.79/bbl.

Reviewing Tuesday's economic data, which included NFIB Small Business Optimism Index for June and the JOLTS - Job Opening report for May.

The NFIB Small Business Optimism Index for June decreased to 103.3 from 105.0 in May.
The May Job Openings and Labor Turnover Survey showed that job openings decreased to 7.323 million from a revised 7.372 million (from 7.449 million) in April.

Looking ahead, investors will receive the FOMC Minutes from the June meeting, the Wholesale Inventories for May, and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +22.7% YTD
S&P 500 +18.9% YTD
Russell 2000 +15.8% YTD
Dow Jones Industrial Average +14.8% YTD