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Another Strong Day for the mega-caps
06-Aug-20 16:20 ET
Dow +185.46 at 27386.98, Nasdaq +109.67 at 11108.14, S&P +21.41 at 3349.18

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

[BRIEFING.COM] The mega-cap stocks did the heavy lifting on Thursday, powering the Nasdaq Composite (+1.0%) to another record close and leaving the S&P 500 (+0.6%) within 1.5% of its all-time high. The Dow Jones Industrial Average gained 0.7%, while the small-cap Russell 2000 declined 0.1%.

Look no other than to Apple (AAPL 455.61, +15.36, +3.5%), Microsoft (MSFT 216.35, +3.41, +1.6%), Amazon (AMZN 3225.00, +19.97, +0.6%), Alphabet (GOOG 1550.10, +26.49, +1.8%), and Facebook (FB 265.28, +16.16, +6.5%) to explain today's positive bias that obscured the advantage declining issues had over the advancing issues at the NYSE and Nasdaq.

There were no specific catalysts driving the moves in these names, suggesting that investors were simply chasing these stocks higher due to their strong balance sheets, growth prospects, and dominance in their respective markets. These stocks also awakened a flat-trading market in the afternoon.

Unsurprisingly, the S&P 500 communication services (+2.5%), information technology (+1.5%), and consumer discretionary (+0.5%) sectors advanced the most today. On the other end were the energy (-0.7%), health care (-0.6%), materials (-0.4%), and financials (-0.2%) sectors in negative territory.

In other developments, initial claims for the week ending August 1 were better than feared, decreasing by 249,000 to 1.186 million (Briefing.com consensus 1.400 million), and the U.S. lifted its advisory to avoid all international travel. The latter helped put a bid in the airline stocks.

Separately, lawmakers scheduled stimulus talks for later this evening, although it remained uncertain if a deal was going to get done by tomorrow.

Outside equities, U.S. Treasuries finished little changed, oil prices ($41.95/bbl, -0.29, -0.7%) closed lower, and precious metals continued to rally. The 2-yr yield was flat at 0.11%, and the 10-yr yield declined one basis point to 0.54%. The U.S. Dollar Index declined 0.1% to 92.77. Gold futures rose 0.9% to $2068.80/ozt, and silver futures rose 5.5% to $28.37/ozt.

Reviewing Thursday's economic data:

Initial claims for the week ending August 1 decreased by 249,000 to 1.186 million (Briefing.com consensus 1.400 million). Continuing claims for the week ending July 25 decreased by 844,000 to 16.107 million.
The key takeaway from the report is that initial claims were much better than expected, which is eye candy to a stock market moving up on relative terms. The big picture takeaway, however, is that initial claims are still running in excess of 1.1 million. That's not a good thing, as it underscores the continued perilous state of the labor market. In the same week a year ago, initial claims were 214,000.

Looking ahead, investors will receive the Employment Situation Report for July, Consumer Credit for June, and Wholesale Inventories for June on Friday.

Nasdaq Composite +23.8% YTD
S&P 500 +3.7% YTD
Dow Jones Industrial Average -4.0% YTD
Russell 2000 -7.4% YTD

Market Snapshot
Dow 27386.98 +185.46 (0.68%)
Nasdaq 11108.14 +109.67 (1.00%)
SP 500 3349.18 +21.41 (0.64%)
10-yr Note +1/32 0.539
NYSE Adv 1458 Dec 1479 Vol 791.0 mln
Nasdaq Adv 1492 Dec 1765 Vol 4.0 bln

Industry Watch
Strong: Communication Services, Information Technology, Consumer Discretionary
Weak: Health Care, Materials, Financials, Energy

Moving the Market

-- Mega-cap leadership

-- Initial claims for the week ending August 1 decreased by 249,000 to 1.186 million (Briefing.com consensus 1.400 million)

-- Coronavirus relief negotiations will reportedly continue this evening

WTI crude futures settle lower, weigh on energy stocks
06-Aug-20 15:25 ET
Dow +142.80 at 27344.32, Nasdaq +105.10 at 11103.57, S&P +18.31 at 3346.08

[BRIEFING.COM] The S&P 500 is up 0.6% and is less than 2.0% from its all-time high.

One last look at the S&P 500 sectors shows communication services (+2.6%) firmly in the lead, followed by information technology (+1.4%) and consumer discretionary (+0.7%). Conversely, the energy (-0.9%), health care (-0.8%), and financials (-0.2%) sectors lag in negative territory.

WTI crude futures setled lower by $0.29 (-0.7%) to $41.95/bbl.