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S&P 500 closes at highest level since March 6
20-May-20 16:15 ET
Dow +369.04 at 24575.90, Nasdaq +190.67 at 9375.80, S&P +48.67 at 2971.48

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

[BRIEFING.COM] The S&P 500 gained 1.7% on Wednesday in a broad-based advance to close at its highest level since March 6. The Nasdaq Composite (+2.1%) and Russell 2000 (+3.0%) increased more than the benchmark index, while the Dow Jones Industrial Average rose 1.5%.

Stocks reclaimed the prior day's losses at the open and proceeded to drift higher throughout the day. The market remained resilient with little news to meaningfully deter its bullish mindset or economic recovery hopes. All 11 S&P 500 sectors contributed to the advance.

The energy sector (+3.8%) followed oil prices ($33.51, +1.21, +3.8%) higher after EIA data showed an unexpected weekly decline in crude inventories. The financials (+2.2%) and communication services (+2.7%) sectors followed suit, with the latter benefiting from a 6.0% gain in shares of Facebook (FB 229.97, +13.09). The health care sector (+0.1%) eked out a small gain.

In Washington, the Senate passed the Holding Foreign Companies Accountable Act, which requires certain foreign companies listed in the U.S. to certify that they are not owned or controlled by a foreign government. Failure to provide appropriate certification could result in de-listing.

The increased scrutiny on Chinese companies pressured shares of Alibaba (BABA 216.79, -0.41, -0.2%) and Baidu (BIDU 108.52, -1.23, -1.1%), while the broader U.S. market was barely bothered by the bill's potential to worsen U.S.-China tensions.

Shares of Target (TGT 119.63, -3.53, -2.9%) and Lowe's (LOW 116.99, +0.12, +0.1%) struggled throughout the session despite beating top and bottom-line estimates. TGT shares fell 3%, while LOW shares squandered an early 5% gain. Analog Devices (ADI 114.57, +8.24, +7.8%) was an earnings standout.

Separately, the FOMC Minutes from the April meeting revealed that policymakers discussed targeting yields on shorter tenors and considered changes to how forward guidance is expressed. The 2-yr yield declined two basis points to 0.16%, and the 10-yr yield declined three basis points to 0.68%. The U.S. Dollar Index declined 0.2% to 99.14.

Wednesday's economic data was limited to the weekly MBA Mortgage Applications Index, which decreased 2.6% following a 0.3% increase in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, Existing Home Sales for April, the Philadelphia Fed Index for May, and the Conference Board's Leading Economic Index for April on Thursday.

Nasdaq Composite +4.5% YTD
S&P 500 -8.0% YTD
Dow Jones Industrial Average -13.9% YTD
Russell 2000 -19.3% YTD

Market Snapshot
Dow 24575.90 +369.04 (1.52%)
Nasdaq 9375.80 +190.67 (2.08%)
SP 500 2971.48 +48.67 (1.67%)
10-yr Note +1/32 0.685
NYSE Adv 2312 Dec 589 Vol 921.0 mln
Nasdaq Adv 2558 Dec 696 Vol 4.2 bln

Industry Watch
Strong: Energy, Financials, Communication Services, Industrials
Weak: Health Care, Utilities

Moving the Market

-- S&P 500 closes at highest level since March 6

-- Broad-based advance, relative strength in energy, financials, and communication services sectors

-- Little news to deter market's bullish mindset, recovery hopes

WTI crude extends rally by 4%
20-May-20 15:25 ET
Dow +361.64 at 24568.50, Nasdaq +183.16 at 9368.29, S&P +48.13 at 2970.94

[BRIEFING.COM] The S&P 500 continues to sport a solid 1.7% gain.

One last look at the S&P 500 sectors shows all 11 sectors still trading in positive territory. The energy (+3.7%), communication services (+2.7%), and financials (+2.4%) sectors set the performance pace, while the health care sector (+0.2%) sectors clings onto a slim gain.

WTI crude futures settled today's session higher by $1.21 (+3.8%) to $33.51/bbl.