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Stocks rise in broad-based advance
28-Sep-20 16:20 ET
Dow +410.10 at 27574.06, Nasdaq +203.96 at 11117.55, S&P +53.14 at 3351.60

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

[BRIEFING.COM] The S&P 500 rose 1.6% on Monday in a broad-based advance. The small-cap Russell 2000 (+2.4%) and S&P MidCap 400 (+2.4%) outperformed with 2.4% gains, followed by the Nasdaq Composite (+1.9%) and Dow Jones Industrial Average (+1.5%).

All 11 sectors within the S&P 500 ended the day in positive territory, with energy (+2.3%), financials (+2.3%), consumer discretionary (+2.2%), and information technology (+1.9%) finishing atop the standings. The utilities sector (+0.3%) was today's laggard.

Value/cyclical stocks had a nice advantage for most of the day, until the technology stocks narrowed the gap later in the session. Apple (AAPL 114.96, +2.68, +2.4%), for instance, finished higher by 2.4% after being up just 0.5% in the morning.

Analyst upgrades, M&A activity, and another positive vaccine update from Johnson & Johnson (JNJ 147.11, +1.45, +1.0%) were corporate-related drivers of sentiment for many cyclical stocks. Other positive factors were House Speaker Pelosi saying a stimulus bill is still possible and quarter-end rebalancing, which favored the financial and energy sectors.

A separate viewpoint was rooted more in technical observation than news. The lack of volatility, and market-moving events, suggested today was a momentum trade from Friday, with performance aided by a recognition the S&P 500 and Dow had declined for four straight weeks.

Notably, the S&P 500 closed below its 50-day moving average (3353) despite spending a healthy portion of the afternoon above the key technical level.

U.S. Treasuries were stagnant during today's stock market gains. The 2-yr yield increased one basis point to 0.14%, and the 10-yr yield was unchanged at 0.66%. The U.S. Dollar Index declined 0.4% to 94.27. WTI crude futures rose 0.7%, or $0.29, to $40.54/bbl.

Investors did not receive any economic data on Monday. The Conference Board's Consumer Confidence Index for September, the S&P Case-Shiller Home Price Index for July, and the Advance August reports for Intl Trade in Goods, Retail Inventories, and Wholesale Inventories will be released on Tuesday.

Nasdaq Composite +23.9% YTD
S&P 500 +3.7% YTD
Dow Jones Industrial Average -3.3% YTD
Russell 2000 -9.5% YTD

Market Snapshot
Dow 27574.06 +410.10 (1.51%)
Nasdaq 11117.55 +203.96 (1.87%)
SP 500 3351.60 +53.14 (1.61%)
10-yr Note 0/32 0.663
NYSE Adv 2546 Dec 467 Vol 845.5 mln
Nasdaq Adv 2520 Dec 811 Vol 3.5 bln

Industry Watch
Strong: Energy, Financials, Information Technology, Consumer Discretionary
Weak: Utilities

Moving the Market

-- Broad-based gains to start the week

-- Analyst upgrades, M&A activity, quarter-end rebalancing, and vaccine news help lift cyclical stocks

-- General trading momentum

WTI crude stays above $40 per barrel
28-Sep-20 15:25 ET
Dow +460.60 at 27624.56, Nasdaq +200.23 at 11113.82, S&P +58.14 at 3356.60

[BRIEFING.COM] The S&P 500 is up 1.7% in a relatively benign advance. Unlike last week, there hasn't been that much volatility today.

One last look at the S&P 500 sectors shows all 11 sectors still trading higher. Energy (+2.8%), financials (+2.6%), and consumer discretionary (+2.3%) remain in the lead, while the utilities sector (+0.6%) continues to lag. The Philadelphia Semiconductor Index also shows strength with a 2.7% gain.

WTI crude futures settled higher by 0.7%, or $0.29, to $40.54/bbl.