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Apple leads Wall Street to higher finish to close out third quarter
30-Sep-19 16:20 ET
Dow +96.58 at 26916.83, Nasdaq +59.71 at 7999.34, S&P +14.95 at 2976.78

https://www.briefing.com/stock-market-update

[BRIEFING.COM] Wall Street finished higher on Monday to wrap up the third quarter. The S&P 500 (+0.5%), Dow Jones Industrial Average (+0.4%), and Nasdaq Composite (+0.8%) posted respectable gains, lifted by shares of Apple (AAPL 223.97, +5.15, +2.4%) after JP Morgan raised its price target to $265 from $243. The Russell 2000 increased 0.2%.

Investor sentiment lightened up from Friday after a Treasury spokeswoman tweeted on Saturday that the administration was not planning to block Chinese companies from U.S. stock exchanges "at this time." For good measure, White House trade advisor Peter Navarro dismissed the report that first suggested this possibility as mostly false.

Today, in turn, was a relatively calm session in which the broader market drifted higher throughout the day amid strength in the S&P 500 information technology (+1.0%) and health care (+0.9%) sectors. The trade-sensitive Philadelphia Semiconductor Index (+1.0%) also outperformed, with Taiwan Semi (TSM 46.48, +0.97, +2.1%) setting a 52-week high after Goldman Sachs added the stock to its Conviction Buy List.

The S&P 500 utilities sector (+0.1%) struggled to match the benchmark index, while the financials (-0.1%) and energy (-0.8%) sectors finished in negative territory. Another decline in oil prices ($54.12/bbl, -1.78, -3.2%) weighed on the oil-sensitive energy stocks, as Saudi Arabia reportedly returned to normal oil output and Chinese data continued to show weakness in the country's manufacturing sector.

Specifically, China's official Manufacturing PMI did improve to 49.8 in September from 49.5 August, but the reading below 50.0 indicated the sector remained in contraction territory. The Chicago PMI for September, meanwhile, fell back into contraction territory with a reading of 47.1 (Briefing.com consensus 50.8).

Growth concerns weren't evident in the stock market, though, as it pushed higher following the release of the Chicago PMI. U.S. Treasuries did see some slight buying interest after the report, which helped bring yields down to their unchanged marks in a relatively tight-ranged session.

The 2-yr yield and the 10-yr yield finished unchanged at 1.62% and 1.68%, respectively. The U.S. Dollar Index increased 0.3% to 99.40. Gold futures, which had rallied alongside a stronger dollar this quarter, declined 2.2% (-$33.10) to $1473.30/ozt.

Monday's economic data was limited to the Chicago PMI for September, which declined to 47.1 (Briefing.com consensus 50.8) from 50.4 in August. 50.0 is the dividing line between an expansion and contraction.

On Tuesday, investors will receive the ISM Manufacturing Index for September, Construction Spending for August, and auto and truck sales for September.

Nasdaq Composite +20.6% YTD
S&P 500 +18.7% YTD
Dow Jones Industrial Average +15.4% YTD
Russell 2000 +13.0% YTD

Market Snapshot
Dow 26916.83 +96.58 (0.36%)
Nasdaq 7999.34 +59.71 (0.75%)
SP 500 2976.78 +14.95 (0.50%)
10-yr Note +1/32 1.671
NYSE Adv 1626 Dec 1226 Vol 900.0 mln
Nasdaq Adv 1727 Dec 1381 Vol 1.8 bln

Industry Watch
Strong: Health Care, Information Technology, Consumer Discretionary
Weak: Energy, Financials

Moving the Market

-- Stock market ends third quarter on high note, led by relative strength in the S&P 500 information technology and health care sectors

-- Apple (AAPL) shares gained 2.4% after JP Morgan raised its AAPL price target to $265 from $243

-- White House downplayed news that it was considering limiting U.S. investment in China, delisting Chinese companies at this time

-- Oil prices extended losses; Saudi Arabia reportedly restored normal oil output, Chinese data remained weak

-- Relatively light trading volume