Sector Investing

[ReturntoSender]

Stocks close higher, trim weekly losses
12-Jun-20 16:15 ET
Dow +477.37 at 25605.56, Nasdaq +96.08 at 9588.83, S&P +39.21 at 3041.18

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

[BRIEFING.COM] The S&P 500 gained 1.3% on Friday to reclaim some of yesterday's sharp decline, although it was up as much as 2.9% early in the session. The Dow Jones Industrial Average (+1.9%), Nasdaq Composite (+1.0%), and Russell 2000 (+2.3%) also bounced back but closed off session highs.

While yesterday's decline was orderly in nature, today's session was characterized by an inclination to sell into strength. Every time the market attempted to rebound, sellers would regain control and take the market back down. At one point in the afternoon, the S&P 500 was down 0.6% before buyers gradually returned to buy the dip.

The S&P 500 sectors were able to finish mostly higher, with cyclical sectors assuming the leadership. The financials (+3.0%), energy (+2.7%), and industrials (+2.0%) sectors rose at least 2.0%, but it was the real estate sector (+3.2%) that advanced the most. The utilities (-0.2%) and consumer staples (-0.2%) sectors closed lower.

Adobe (ADBE 406.54, +18.87, +4.9%) was an individual standout following its earnings report, while lululemon athletica (LULU 296.36, -11.76, -3.8%) failed to generate much excitement with its results. Tesla (TSLA 935.28, -37.56, -3.9%) was pressured by Goldman Sachs downgrading the stock to Neutral from Buy.

Interestingly, shares of bankrupt Hertz (HTZ 2.83, +0.77, +37.4%) were reawakened today with a 37% gain. The company reportedly asked a bankruptcy judge if it could sell $1 billion worth of common stock to capitalize on the trading frenzy that has buoyed its stock.

U.S. Treasuries finished on a lower note, pushing yields higher across the curve. The 2-yr yield increased two basis points to 0.18%, and the 10-yr yield increased five basis points to 0.70%. The U.S. Dollar Index increased 0.4% to 97.11. WTI crude declined 0.5%, or $0.17, to $36.24/bbl.

Reviewing Friday's economic data:

The preliminary University of Michigan Index of Consumer Sentiment for June showed an improvement to 78.9 (Briefing.com consensus 75.8) from the final reading of 72.3 for May.
The key takeaway from the report is that the uptick was driven by renewed gains in employment and an expectation for a decline in the unemployment rate; however, most consumers were not anticipating the reestablishment of favorable financial conditions anytime soon.
Import prices increased 1.0% in May, and prices, excluding oil, increased 0.1%. Export prices increased 0.5% in May, and prices, excluding agriculture, increased 0.6%.

Looking ahead, investors will receive the Empire State Manufacturing Survey for June and Net Long-Term TIC Flows for April on Monday.

Nasdaq Composite +6.9% YTD
S&P 500 -5.9% YTD
Dow Jones Industrial Average -10.3% YTD
Russell 2000 -16.8% YTD

Market Snapshot
Dow 25605.56 +477.37 (1.90%)
Nasdaq 9588.83 +96.08 (1.01%)
SP 500 3041.18 +39.21 (1.31%)
10-yr Note -3/32 0.710
NYSE Adv 2289 Dec 635 Vol 1.2 bln
Nasdaq Adv 2485 Dec 832 Vol 4.3 bln

Industry Watch
Strong: Energy, Industrials, Financials, Real Estate
Weak: Consumer Staples, Utilities

Moving the Market

-- Stocks reclaim some losses from Thursday in volatile session

-- There was an inclination to sell into strength

-- Cyclical sectors outperformed

WTI crude settles lower, extends weekly decline
12-Jun-20 15:25 ET
Dow +253.25 at 25381.44, Nasdaq +18.26 at 9511.01, S&P +15.53 at 3017.50

[BRIEFING.COM] The S&P 500 continues to trade higher by 0.5% and is on pace to close the week lower by 5.6%.

One last look at the S&P 500 sectors shows real estate (+2.3%), financials (+1.6%), and energy (+1.2%) outperforming, while the utilities (-0.5%), consumer staples (-0.4%), and consumer discretionary (-0.2%) sectors trade lower.

WTI crude futures declined 0.5% (-$0.17) to $36.24/bbl. The futures contract ended the week down 8.3%.