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S&P 500 sets all-time high in growth-stock day
31-Mar-21 16:15 ET
Dow -85.41 at 32981.55, Nasdaq +201.48 at 13246.90, S&P +14.34 at 3972.89

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

[BRIEFING.COM] The S&P 500 (+0.4%) set an intraday record high on Wednesday on the back of renewed strength in the mega-cap/growth/technology stocks, but the market pared gains into the close. The Nasdaq Composite (+1.5%) and Russell 2000 (+1.1%) outperformed the benchmark index, while the Dow Jones Industrial Average (-0.3%) closed slightly lower.

Today's price action appeared heavily influenced by rebalancing activity on the last day of the quarter, suggesting money managers re-allocated funds into quarterly laggards given the sheer outperformance from many of the value/cyclical stocks this quarter. In other words, today was a growth-stock day.

The S&P 500 information technology (+1.5%) and consumer discretionary (+0.8%) sectors finished atop the sector standings, the Vanguard Mega Cap Growth ETF (MGK 207.07, +2.90, +1.4%) rose 1.4%, the ARK Innovation ETF (ARKK 119.95, +5.53, +4.8%) rose 4.8%, and the Philadelphia Semiconductor Index rose 2.6%.

Conversely, the energy (-0.9%) and financials (-0.9%) sectors -- the Q1 winners -- underperformed alongside the materials (-0.5%), industrials (-0.3%), real estate (-0.5%), and consumer staples (-0.5%) sectors.

Besides rebalancing activity, Apple (AAPL 122.15, +2.25, +1.9%) and Microsoft (MSFT 235.77, +3.92, +1.7%) benefited from an analyst upgrade and encouraging corporate news. Specifically, Apple was upgraded to Buy from Neutral at UBS. Microsoft was awarded an augmented-reality contract with the U.S. Army, reportedly worth close to $22 billion over ten years.

In other developments, Pfizer (PFE 36.23, +0.12, +0.3%) and BioNTech (BNTX 109.19, +4.75, +4.6%) said their COVID-19 vaccine trial for adolescents ages 12-15 demonstrated 100% efficacy and robust antibody responses. Walgreens Boots Alliance (WBA 54.90, +1.92, +3.6%) beat EPS estimates and raised its FY21 guidance.

Separately, many investors were waiting for President Biden to unveil a $2 trillion infrastructure plan in a speech after the close. Reports indicated the bill would call for increases in corporate taxes to help finance the spending.

In the Treasury market, yields settled the session slightly higher amid some selling interest. The 2-yr yield increased two basis points to 0.16%, and the 10-yr yield increased two basis points to 1.75%. The U.S. Dollar Index decreased 0.1% to 93.22. WTI crude futures decreased 2.3%, or $1.38, to $59.19/bbl.

Reviewing Wednesday's economic data:

The ADP Employment report pointed to the addition of 517,000 private payrolls in March (Briefing.com consensus 525,000) while the February increase was revised up to 176,000 from 117,000.
The Chicago PMI for March increased to 66.3 (Briefing.com consensus 60.0) from 59.5 in February.
Pending home sales dropped 10.6% in February (Briefing.com consensus -2.6%) following a 2.4% decline in January (from -2.8%)
The weekly MBA Mortgage Applications Index decreased 2.2% following a 2.5% decline in the prior week.

Looking ahead, investors will receive the ISM Manufacturing Index for March, the weekly Initial and Continuing Claims report, and Construction Spending for February on Thursday.

Russell 2000 +12.4% YTD
Dow Jones Industrial Average +7.8% YTD
S&P 500 +5.7% YTD
Nasdaq Composite +2.8% YTD

WTI crude futures settle below $60 per barrel
31-Mar-21 15:25 ET
Dow +15.10 at 33082.06, Nasdaq +264.67 at 13310.09, S&P +29.13 at 3987.68

[BRIEFING.COM] The S&P 500 is up 0.8%, while the Russell 2000 is up 1.7%.

One last look at the S&P sectors shows information technology (+2.1%) outperforming by a comfortable margin over second-place consumer discretionary (+1.3%). Conversely, the financials (-0.4%), energy (-0.5%), and consumer staples (-0.3%) sectors lag in negative territory.

WTI crude futures settled lower by 2.3%, or $1.38, to $59.19/bbl.