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S&P 500 recoups early decline and closes flat
11-May-20 16:20 ET
Dow -109.33 at 24221.99, Nasdaq +71.02 at 9192.36, S&P +0.39 at 2930.19

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

[BRIEFING.COM] The S&P 500 finished flat on Monday in a resilient session that started with the benchmark index down 0.9%. The Nasdaq Composite, powered by its mega-cap components, rose 0.8% while the Dow Jones Industrial Average (-0.5%) and Russell 2000 (-0.6%) closed lower.

Monday's lower start was seemingly rooted in pestering worries that reopening the economy too soon could cause additional outbreaks of COVID-19, especially after reports pointed to an uptick in cases in Germany and South Korea. The market quickly disavowed this view, which was likely a good excuse to take a breather, and it returned to positive territory by the afternoon.

Positive news today included New York Governor Cuomo saying he will end state-wide restrictions this Friday, allowing for the re-opening of some low-risk businesses, and Quidel (QDEL 208.95, +50.35, +31.8%) receiving FDA approval for its antigen test for COVID-19. The resiliency in the market likely pulled in under-allocated investors fearful of missing out on further gains.

Health care stocks saw the biggest gains following the antigen news, evidenced by the 1.7% advance in the S&P 500 health care sector. The most influential gains, though, came from the mega-cap technology stocks within the information technology (+0.7%), communication services (+0.1%), and consumer discretionary (+0.1%) sectors.

The S&P 500, which was nearing its April high (2954.86), did falter into the close, pressured by widening losses in the growth-oriented financials (-1.9%), energy (-1.7%), materials (-1.5%), and industrials (-1.3%) sectors.

Separately, shares of NVIDIA (NVDA 322.62, +10.12, +3.2%) set a new all-time high after its price target was raised to $350 from $270 at Needham.

U.S. Treasuries started the session little changed but steadily declined during the rebound in stocks. The 2-yr yield increased four basis points to 0.18%, and the 10-yr yield increased four basis points to 0.72%. The U.S. Dollar Index advanced 0.5% to 100.19. WTI crude lost 1.1%, or $0.25, to $24.46/bbl despite news that Saudi Arabia is planning to cut June production by an additional 1 mln barrels per day.

Investors did not receive any economic data on Monday. On Tuesday, investors will receive the Consumer Price Index for April, the NFIB Small Business Optimism Index for April, and the Treasury Budget for April.

Nasdaq Composite +2.5% YTD
S&P 500 -9.3% YTD
Dow Jones Industrial Average -15.1% YTD
Russell 2000 -20.7% YTD

Market Snapshot
Dow 24221.99 -109.33 (-0.45%)
Nasdaq 9192.36 +71.02 (0.78%)
SP 500 2930.19 +0.39 (0.01%)
10-yr Note -2/32 0.707
NYSE Adv 1003 Dec 1844 Vol 1.0 bln
Nasdaq Adv 1442 Dec 1801 Vol 3.9 bln

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

Moving the Market

-- S&P 500 recoups early losses in resilient trade

-- Defensive tone with mega-cap and health care stocks outperfo