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S&P 500 and Nasdaq extend record run into September
01-Sep-20 16:15 ET
Dow +215.61 at 28635.66, Nasdaq +164.21 at 11939.67, S&P +26.34 at 3526.65

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

[BRIEFING.COM] The S&P 500 (+0.8%) and Nasdaq Composite (+1.4%) rallied to fresh record highs on Tuesday, with the Nasdaq getting an added boost from the momentum in the mega-caps and growth stocks. The wealth spread around to the Russell 2000 (+1.1%) and Dow Jones Industrial Average (+0.8%), too.

Today's key moves were Apple (AAPL 134.18, +5.14, +4.0%) rising 4% after JPMorgan raised its price target on the stock to $150 from $115, and Zoom Video (ZM 457.69, +132.59, +40.8%) surging 40% after it crushed Q2 earnings expectations.

Apple was a major factor in today's index gains given its 7.3% weight in the S&P 500, while Zoom provided the fuel for other growth stocks like Netflix (NFLX 556.55, +26.99, +5.1%) and DocuSign (DOCU 268.80, +45.80, +20.5%). Another supporting factor was the ISM Manufacturing Index for August increasing to 56.0% (Briefing.com consensus 54.5%) from 54.2% in July.

The manufacturing data helped lift the S&P 500 materials (+2.8%) and industrials (+1.0%) sectors into positive territory with the information technology (+1.9%), communication services (+1.0%), and consumer discretionary (+1.1%) sectors. Each advanced at least 1.0%.

Conversely, the utilities (-1.1%), health care (-1.0%), and energy (-0.9%) sectors underperformed and declined around 1.0%.

Recapping some other mega-cap moves, Walmart (WMT 147.59, +8.74, +6.3%) climbed 6% after officially introducing its Walmart+ membership program. Tesla (TSLA 475.05, -23.27, -4.7%), however, was a notable holdout after the company disclosed plans to sell up to $5 billion in stock.

U.S. Treasuries ended the day higher after reclaiming overnight losses. The 2-yr yield declined two basis points to 0.11%, and the 10-yr yield declined two basis points to 0.67%. The U.S. Dollar Index increased 0.2% to 92.34 after being down 0.4% in the morning. WTI crude futures increased 0.3%, or $0.14, to $42.76/bbl.

Reviewing Tuesday's economic data:

The ISM Manufacturing Index for August increased to 56.0% (Briefing.com consensus 54.5%) from 54.2% in July. The dividing line between expansion and contraction is 50.0%. The August reading is the highest level for the index since January 2019.
The key takeaway from the report is that it is a reflection of an encouraging rebound in manufacturing activity following the sharp contraction seen in April and May.
Total construction spending increased 0.1% m/m in July (Briefing.com consensus +1.0%) on the heels of an upwardly revised 0.5% decline (from -0.7%) in June. Total private construction spending rose 0.6% and total public construction spending fell 1.3%.

Looking ahead, investors will receive the ADP Employment Change Report for August, the Fed's Beige Book, Factory Orders for July, and the weekly MBA Mortgage Applications Index, and auto and truck sales for August on Wednesday.

Nasdaq Composite +33.1% YTD
S&P 500 +9.2% YTD
Dow Jones Industrial Average +0.4% YTD
Russell 2000 -5.4% YTD