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Nasdaq closes at record high in mixed session
01-Jul-20 16:20 ET
Dow -77.91 at 25734.99, Nasdaq +95.86 at 10154.63, S&P +15.57 at 3115.73

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

[BRIEFING.COM] The S&P 500 (+0.5%) and Nasdaq Composite (+1.0%) finished with decent gains on Wednesday amid positive economic data and upbeat vaccine news. It was also record close for the Nasdaq, but it was a negative day for the Dow Jones Industrial Average (-0.3%) and Russell 2000 (-1.0%).

The S&P 500 real estate (+2.6%), utilities (+2.3%), and communication services (+2.2%) sectors rose more than 2.0%, while the energy (-2.5%), financials (-1.0%), and materials (-0.5%) sectors closed in negative territory.

Each sector had started the day higher after Stat News reported that Pfizer (PFE 33.74, +1.04, +3.2%) and BioNTech (BNTX 64.14, -2.60, -3.9%) made progress on their COVID-19 vaccine candidate, the ISM Manufacturing Index for June returned into expansionary mode with a 52.6% reading (Briefing.com consensus 49.2%), and the ADP Employment Change Report for June showed consecutive gains for private-sector payrolls.

Negative headwinds, however, included an observation that the S&P 500 was already up 3.0% over the prior two days, a report from Bloomberg that the U.S. is preparing global sanctions against China for its abuse of Muslim minorities, and news that Apple (AAPL 364.11, -0.69, -0.2%) will re-close an additional 30 stores tomorrow due to the coronavirus.

Regarding the latter, the market has adopted the idea that preemptive measures will induce short-term pain but will help curb the outbreak, and that any pain will be alleviated by policy support. The FOMC Minutes from the June 9-10 meeting highlighted concerns about a significant rise in coronavirus infections due to early reopening, and that highly accommodative monetary policy will likely be needed to facilitate a recovery.

Considering these developments, it was a mixed session with cyclical sectors underperforming and money continuing to flow into the mega-cap and momentum stocks like Amazon (AMZN 2878.70, +119.88, +4.4%). FedEx (FDX 156.66, +16.44, +11.7%) was another standout with a 12% gain following its earnings report.

U.S. Treasuries finished with modest losses, pushing yields higher across the curve. The 2-yr yield increased two basis points to 0.17%, and the 10-yr yield increased three basis points to 0.68%. The U.S. Dollar Index declined 0.3% to 97.15. WTI crude declined 1.2%, or $0.48, to $39.76/bbl.

Reviewing Wednesday's economic data:

The ISM Manufacturing Index for June rose to 52.6% (Briefing.com consensus 49.2%) from 43.1% in May. This was the first reading above 50.0% in four months and the largest month-over-month increase since August 1980. The dividing line between expansion and contraction is 50.0%.
The key takeaway from the report is that it reflects a clear bounce back from the super depressed conditions seen in April and May. It's a natural rebound so to speak as the economy reopens, but the key is its sustainability, which is still an open question.
Construction spending declined 2.1% m/m in May (Briefing.com consensus +1.1%) on the heels of a downwardly revised 3.5% decline (from -2.9%) in April.
The key takeaway from the report is that total construction spending has decelerated and is now up just 0.3% yr/yr, with a 4.7% yr/yr increase in total public construction spending helping to offset a 1.2% yr/yr decline in total private construction spending.
The ADP Employment Change report for June showed an estimated 2.369 million positions were added to private-sector payrolls. This was less than the Briefing.com consensus of 3.75 million. The data from May was revised higher to 3.065 million from -2.76 million.

Looking ahead to Thursday, investors will receive the Employment Situation Report for June, the weekly Initial and Continuing Claims report, the Trade Balance report for May, and the Factory Orders report for May.

Nasdaq Composite +13.2% YTD
S&P 500 -3.6% YTD
Dow Jones Industrial Average -9.8% YTD
Russell 2000 -14.5% YTD

Market Snapshot
Dow 25734.99 -77.91 (-0.30%)
Nasdaq 10154.63 +95.86 (0.95%)
SP 500 3115.73 +15.57 (0.50%)
10-yr Note -2/32 0.677
NYSE Adv 1515 Dec 1417 Vol 928.7 mln
Nasdaq Adv 1497 Dec 1855 Vol 4.5 bln

Industry Watch
Strong: Utilities, Communication Services, Real Estate
Weak: Energy, Materials, Financials

Moving the Market

-- Market trades mixed to start the third quarter

-- COVID-19 vaccine being developed in part by Pfizer (PFE) reportedly shows promising signs

-- June ISM Manufacturing Index returns to expansionary mode, ADP report shows back-to- back months of private-sector payroll gains

-- Trump administration is preparing global sanctions against China over its treatment of Muslim minorities, according to Bloomberg

WTI crude gains but energy stocks lag
01-Jul-20 15:25 ET
Dow +6.32 at 25819.22, Nasdaq +119.55 at 10178.32, S&P +22.57 at 3122.73

[BRIEFING.COM] The S&P 500 is trading at session highs with a 0.8% gain. The Russell 2000, however, is down 0.7%.

One last look at the S&P 500 sectors shows real estate (+2.7%), utilities (+2.4%), and communication services (+2.4%) up more than 2.0%, while the energy (-2.0%) and financials (-0.9%) sectors lag with noticeable losses.

WTI crude futures rose $0.48 (+1.2%) to $39.76/bbl.