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Market Snapshot

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

Dow 34393.98 +186.14 (0.54%)
Nasdaq 13661.20 +190.18 (1.41%)
SP 500 4197.05 +41.19 (0.99%)
10-yr Note +1/32 1.605
NYSE Adv 2125 Dec 1135 Vol 789.2 mln
Nasdaq Adv 2066 Dec 2038 Vol 3.5 bln

Industry Watch
Strong: Information Technology, Communication Services, Consumer Discretionary
Weak: Utilities

Moving the Market

-- Broad-based advance led by the technology/growth stocks

-- Buy-the-dip mindset in growth stocks

-- Longer-dated Treasury yields dip

Growth stocks lead market higher
24-May-21 16:20 ET
Dow +186.14 at 34393.98, Nasdaq +190.18 at 13661.20, S&P +41.19 at 4197.05

[BRIEFING.COM] The S&P 500 advanced 1.0% on Monday, thanks in large part to the heavily-weighted growth stocks. The Nasdaq Composite (+1.4%) outperformed with a 1.4% gain while the Dow Jones Industrial Average (+0.5%) and Russell 2000 (+0.6%) underperformed with modest gains.

Ten of the 11 S&P 500 sectors finished in positive territory, and none were more influential to today's performance than the information technology (+1.8%), communication services (+1.8%), and consumer discretionary (+1.0%) sectors due to their mega-cap components. The Vanguard Mega Cap Growth ETF (MGK 217.71, +3.41) gained 1.6%.

Other high-growth areas like the Philadelphia Semiconductor Index (+2.3%) and the ARK Innovation ETF (ARKK 108.73, +2.89, +2.7%) also outperformed.

Given the lack of market-moving macro news, the positive price action from the start presumably fueled a fear of missing out on further rebound gains, particularly in the growth stocks. To be fair, the 10-yr yield decreased two basis points to 1.61%, which was viewed as a supportive factor.

Value stocks also had a decent day, but not as great as the growth stocks. For example, the iShares S&P 500 Value ETF (IVE 149.56, +0.76, +0.5%) increased just 0.5%, versus the 1.5% gain in the iShares S&P 500 Growth ETF (IVW 68.77, +0.99, +1.5%).

The utilities sector (-0.2%) -- this year's worst-performing sector in the S&P 500 -- was the only sector that closed lower today. The negative performance coincided with a broader hiccup in the market, which saw the S&P 500 dip below the 4200 level on a closing basis.

In M&A news, Amazon (AMZN 3244.99, +41.91, +1.3%) is nearing a deal to purchase Hollywood studio MGM for $9 billion, according to The Wall Street Journal. Cabot Oil & Gas (COG 16.60, -1.21, -6.8%) and Cimarex Energy (XEC 66.14, -5.05, -7.1%) agreed to an all-stock merger of equals that left shareholders underwhelmed.

The 2-yr yield was flat at 0.15%. The U.S. Dollar Index decreased 0.2% to 89.83. WTI crude futures rose 3.7%, or $2.38, to $66.02/bbl. The CBOE Volatility Index (19.01, -1.14, -4.7%) slipped below the 20.00 level, indicating reduced hedging interest.

Investors did not receive any economic data on Monday. Looking ahead, New Home Sales for April, the Conference Board's Consumer Confidence Index for May, the FHFA Housing Price Index for March, and the S&P Case-Shiller Home Price Index for March will be released on Tuesday.

Russell 2000 +12.8% YTD
Dow Jones Industrial Average +12.4% YTD
S&P 500 +11.7% YTD
Nasdaq Composite +6.0% YTD

WTI crude futures settle above $66 per barrel
24-May-21 15:30 ET
Dow +241.82 at 34449.66, Nasdaq +222.96 at 13693.98, S&P +49.86 at 4205.72

[BRIEFING.COM] The S&P 500 is up 1.2% to trade near session highs. The Russell 2000 has picked up the slack and is now up 1.0%.

One last look at the S&P 500 sectors shows information technology (+2.0%), communication services (+1.9%), and consumer discretionary (+1.4%) still leading the advance with solid gains. The utilities sector (+0.1%) underperforms with a 0.1% gain.

WTI crude futures settled higher by 3.7%, or $2.38, to $66.02/bbl.