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Mega-caps provide heavy lifting in record session for S&P 500
08-Apr-21 16:15 ET
Dow +57.31 at 33503.57, Nasdaq +140.47 at 13829.34, S&P +17.22 at 4097.17

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

[BRIEFING.COM] The S&P 500 increased 0.4% on Thursday, setting intraday and closing record highs in the process amid continued appreciation in the mega-caps and growth stocks. The Nasdaq Composite (+1.0%) and Russell 2000 (+0.9%) outperformed the benchmark index, while the Dow Jones Industrial Average (+0.2%) underperformed.

Apple (AAPL 130.36, +2.46, +1.9%) and Microsoft (MSFT 253.25, +3.35, +1.3%) were some of the more influential gainers today on no specific catalysts, with Apple brushing off a report from the Nikkei that it's delaying MacBook and iPad production due to the global semiconductor shortage.

The S&P 500 information technology sector, where AAPL and MSFT reside, easily topped the sector standings with a 1.4% gain. The consumer discretionary sector (+0.5%) was a distant second, while the lightly-weighted energy (-1.4%) and real estate (-0.6%) sectors underperformed in negative territory.

The lack of market-moving news behind the steady advance in the mega-caps suggested there were several underlying factors: a recognition that long-term interest rates have cooled off this month, money continuing to reshuffle into these Q1 laggards, and investors possibly front running Q1 earnings reports that are expected to be strong.

Elsewhere, Fed Chair Powell spoke about the global economy in an event hosted by the IMF today and rehashed the Fed's dovish policy stance since the economic recovery is still uneven and incomplete. On a related note, weekly initial claims increased by 16,000 to 744,000 (Briefing.com consensus 678,000).

In other corporate news, Visa (V 220.70, +1.43, +0.7%) pared intraday gains after Bloomberg reported that the Department of Justice will investigate the company's incentives that it provides banks as part of its antitrust probe. Constellation Brands (STZ 224.21, -10.73, -4.6%) fell 4.6% after guiding FY22 EPS below consensus.

U.S. Treasuries settled slightly lower in a quiet session. The 2-yr yield decreased two basis points to 0.14%, and the 10-yr yield decreased two basis points to 1.63%. The U.S. Dollar Index decreased 0.4% to 92.08. WTI crude futures decreased 0.2%, or $0.10, to $59.61/bbl.

Reviewing Thursday's economic data:

Initial claims for the week ending April 3 increased 16,000 to 744,000 (Briefing.com consensus 678,000). Continuing claims for the week ending March 27 decreased 16,000 to 3.734 million.
The key takeaway from the report is that it is disappointing labor market data that will convince the Fed that it needs to be patient before removing policy accommodation.

Looking ahead, investors will receive the Producer Price Index for March and Wholesale Inventories for February on Friday.

Russell 2000 +13.6% YTD
Dow Jones Industrial Average +9.5% YTD
S&P 500 +9.1% YTD
Nasdaq Composite +7.3% YTD

WTI crude futures settle slightly lower
08-Apr-21 15:25 ET
Dow +48.62 at 33494.88, Nasdaq +124.51 at 13813.38, S&P +16.62 at 4096.57

[BRIEFING.COM] The S&P 500 continues to trade higher by 0.4% and is on track to close at a record high.

One last look at the S&P 500 sectors shows information technology (+1.3%) firmly in the lead, followed by consumer discretionary (+0.5%) and materials (+0.3%) with modest gains. The energy sector (-1.4%) underperforms with a 1.4% decline. No other sector is down more than 0.3%.

WTI crude futures settled lower by 0.2%, or $0.10, to $59.61/bbl.