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Nasdaq closes at record high in field day for the mega-caps
20-Jul-20 16:20 ET
Dow +8.92 at 26680.87, Nasdaq +263.90 at 10767.18, S&P +27.11 at 3251.84

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

[BRIEFING.COM] The mega-cap stocks stole the show on Monday, powering the Nasdaq Composite to a 2.5% gain (and record close) and lifting the S&P 500 to a 0.8% gain. The Dow Jones Industrial Average (+0.03%) closed little changed, while the Russell 2000 declined 0.4%.

Amazon (AMZN 3196.84, +234.87, +7.9%) gained 8% after its price target was raised to a Street-high of $3800 at Goldman Sachs and Jefferies. Tesla (TSLA 1643.00, +142.16, +9.5%) and Microsoft (MSFT 21.60, +8.70, +4.3%) rallied ahead of their earnings reports on Wednesday. Alphabet (GOOG 1565.72, +50.17, +3.3%) and Apple (AAPL 393.43, +8.12, +2.1%) rose with the mega-cap trade.

In turn, the S&P 500 consumer discretionary (+3.1%), information technology (+2.6%), and communication services (+1.3%) sectors posted solid gains, but they were the only sectors to close higher today. The Philadelphia Semiconductor Index (+2.0%) also had a great day, reflecting an infatuation for growth stocks after falling out of favor last week.

Conversely, the energy (-1.7%), utilities (-1.4%), industrials (-1.2%), and consumer staples (-1.0%) sectors fell at least 1.0%. The Dow Jones Transportation Average declined 1.6%.

Investors were also provided with positive COVID-19 vaccine data from the U.S. collaboration between Pfizer (PFE 36.50, +0.25, +0.7%) and BioNTech (BNTX 88.20, +2.95, +3.5%) and the UK collaboration between AstraZeneca (AZN 58.68, -2.42, -4.0%) and the University of Oxford.

The broad market did not rally on the news this time around, evidenced by only three S&P 500 sectors closing higher and by declining issues outpacing advancing issues at the NYSE. The S&P 500, however, did finish above its June 8 closing level (3232.39) due to the strength in the mega-caps.

In M&A activity, Noble Energy (NBL 10.18, +0.53, +5.4%) agreed to be acquired by Chevron (CVX 85.27, -1.92, -2.2%) for $5 billion, or $10.38/share, in stock.

U.S. Treasuries finished little changed after trading near their flat lines all session. The 2-yr yield increased one basis point to 0.15%, and the 10-yr yield decreased one basis point to 0.62%. The U.S. Dollar Index declined 0.1% to 98.82. WTI crude futures gained 0.7%, or $0.27, to $40.83/bbl.

Investors did not receive any notable economic data on Monday and will not receive any reports on Tuesday, either.

Nasdaq Composite +20.0% YTD
S&P 500 +0.7% YTD
Dow Jones Industrial Average -6.5% YTD
Russell 2000 -12.0% YTD

Market Snapshot
Dow 26680.87 +8.92 (0.03%)
Nasdaq 10767.18 +263.90 (2.51%)
SP 500 3251.84 +27.11 (0.84%)
10-yr Note +24/32 0.612
NYSE Adv 1280 Dec 1676 Vol 785.4 mln
Nasdaq Adv 1695 Dec 1556 Vol 4.3 bln

Industry Watch
Strong: Consumer Discretionary, Information Technology, Communication Services
Weak: Consumer Staples, Industrials, Utilities, Energy

Moving the Market

-- Mega-caps power Nasdaq to record close, S&P 500 turns positive for the year

-- Amazon (AMZN) shares gained 8% after Goldman Sachs and Jefferies raised their price target on AMZN to a Street-high of $3800

-- More encouraging vaccine news, but broad market did not rally on news this time around

-- Declining issues outpaced advancing issues at NYSE

WTI crude settles higher, but energy stocks lag
20-Jul-20 15:20 ET
Dow +45.73 at 26717.68, Nasdaq +244.26 at 10747.54, S&P +25.72 at 3250.45

[BRIEFING.COM] The S&P 500 is up 0.8% to extend its monthly gain to an impressive 4.8%. The benchmark index is on pace to close above its June 8 closing level (3232.39), which it has not managed to do since then.

One last look at the S&P 500 sectors shows consumer discretionary (+2.9%), information technology (+2.5%), and communication services (+1.0%) as the only sectors trading higher. The utilities (-1.3%), energy (-1.4%), and industrials (-1.1%) sectors are down more than 1.0%.

WTI crude futures settled higher by $0.27 (+0.7%) to $40.83/bbl.