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Nasdaq and growth stocks bounce back
09-Mar-21 16:15 ET
Dow +30.30 at 31832.74, Nasdaq +464.66 at 13073.84, S&P +54.09 at 3875.44

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

[BRIEFING.COM] The S&P 500 advanced 1.4% on Tuesday in a strong rebound session for the mega-cap/growth stocks, which boosted the Nasdaq Composite to a 3.7% gain. The Russell 2000 (+1.9%) finished in the middle with a 1.9% gain, while the Dow Jones Industrial Average increased just 0.1% after it was up as much as 1.1% intraday and at fresh record highs.

After yesterday's session left the Nasdaq down 10.5% from its recent high, or in "correction territory," investors presumably felt that the underlying declines at the growth-stock level had gotten too extended and presented a good buying opportunity. Follow through from buyers after a strong open fueled the technically-oriented rebound rally.

Shares of Tesla (TSLA 673.58, +110.58, +19.6%) surged nearly 20% today, further supported by an analyst upgrade to Buy from Neutral at New Street and a report that it grabbed market share from Chinese EV competitors in February. Note, TSLA shares entered the session down 37% from its all-time high, partially due to the rotation into value/cyclical stocks.

The S&P 500 consumer discretionary sector, which is home to Tesla, rose 3.8%, and the top-weighted information technology sector rose 3.4%. The Vanguard Mega Cap Growth ETF (MGK 201.96, +6.88, +3.5%) rose 3.5%, the Philadelphia Semiconductor Index rose 6.1%, and the ARK Innovation ETF (ARKK 121.75, +11.49, +10.4%) rose 10.4%.

Interestingly, the broad market did lose some traction into the close as the S&P 500 struggled to stay above the 3900 level, which has acted as resistance this month.

The red-hot energy (-1.9%) and financials (-0.9%) sectors underperformed in negative territory. Energy stocks were pressured by lower oil prices ($64.02, -1.02, -1.6%), while financial stocks were slowed down by a decline in longer-dated Treasury yields.

The 10-yr yield decreased five basis points to 1.55%, while the 2-yr yield increased one basis point to 0.16%. The U.S. Dollar Index decreased 0.4% to 91.97. On a related note, the $58 bln 3-year note auction was a nonevent, which was viewed in a positive light because the results revealed little concern about demand. Long-term interest rates ticked lower in response.

Boeing (BA 230.61, +6.58, +2.9%) was a notable Dow gainer after The New York Times reported that the company sold 31 planes in February, representing its first positive month in over a year. Stitch Fix (SFIX 49.23, -19.29, -28.2%) was a notable growth-stock laggard, plunging 28% after missing revenue estimates.

Tuesday's economic data was limited to the NFIB Small Business Optimism Index, which increased to 95.8 in February from 95.0 in January. Looking ahead to Wednesday, investors will receive the Consumer Price Index for February, the Treasury Budget for February, and the weekly MBA Mortgage Applications Index.

Russell 2000 +13.7% YTD
Dow Jones Industrial Average +4.0% YTD
S&P 500 +3.2% YTD
Nasdaq Composite +1.4% YTD

Market Snapshot
Dow 31832.74 +30.30 (0.10%)
Nasdaq 13073.84 +464.66 (3.69%)
SP 500 3875.44 +54.09 (1.42%)
10-yr Note +27/32 1.539
NYSE Adv 1937 Dec 1253 Vol 1.1 bln
Nasdaq Adv 2865 Dec 1072 Vol 6.2 bln

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

Moving the Market

-- Technically-oriented bounce in the mega-cap/growth stocks

-- Longer-dated Treasury yields pulled back

-- Tesla (TSLA) rebounds nearly 20%

-- 3900 level in the S&P 500 acted as resistance again

WTI crude futures settle in negative territory
09-Mar-21 15:25 ET
Dow +195.16 at 31997.60, Nasdaq +531.93 at 13141.11, S&P +74.98 at 3896.33

[BRIEFING.COM] The S&P 500 continues to trade near the top-end of today's range with a 2.0% gain. The Russell 2000 is up 2.6%.

One last look at the sector performances shows consumer discretionary (+4.4%) and information technology (+4.0%) on top with about 4% gains. The energy (-1.2%) and financials (-0.2%) sectors remain the only sectors trading in negative territory, as these two groups take a well-deserved breather amid lower oil prices and bond yields.

WTI crude futures settled lower by 1.6%, or $1.02, to $64.02/bbl.