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Market Snapshot

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

Dow 34630.24 -126.15 (-0.36%)
Nasdaq 13881.72 +67.23 (0.49%)
SP 500 4226.52 -3.37 (-0.08%)
10-yr Note -2/32 1.569
NYSE Adv 1830 Dec 1431 Vol 887.0 mln
Nasdaq Adv 2717 Dec 1471 Vol 4.56 bln

Industry Watch
Strong: Real Estate, Health Care, Communication Services, Utilities
Weak: Financials, Industrials, Materials, Energy

Moving the Market

Market off to quiet start after subdued overnight session

China's May trade surplus smaller than expected

Infrastructure spending package still being discussed in Washington

Nasdaq Outperforms in Quiet Monday Trade
07-Jun-21 16:15 ET
Dow -126.15 at 34630.24, Nasdaq +67.23 at 13881.72, S&P -3.37 at 4226.52

[BRIEFING.COM] The stock market began the first full week of June on a quiet note. The S&P 500 (-0.1%) finished the day with a slight loss while the Dow (-0.4%) lagged and the Nasdaq (+0.5%) displayed relative strength.

The mixed finish served as a good representation of intraday action, as the Nasdaq stayed ahead throughout the day. Small caps also had a good showing, sending the Russell 2000 higher by 1.4%.

Equities started the day in flat fashion with the broader market slipping away from its opening level through the first couple hours of action. The S&P 500 reached the bottom of today's eleven-point range around noon, inching off its low into the afternoon.

Seven sectors finished the day in negative territory, but the materials sector (-1.2%) was the only group that lost more than 0.7%. Industrials (-0.7%) and financials (-0.6%) weighed on the broader market throughout the day while technology (unch) climbed off its low in the afternoon. Energy (-0.4%) pulled back after jumping nearly 7.0% last week.

The materials sector finished at the bottom of the leaderboard even though the sector was home to some M&A news. Vulcan Materials (VMC 177.96, -1.64, -0.9%) agreed to acquire US Concrete (USCR 73.87, +16.73, +29.3%) for $1.294 bln in cash, but only three smaller components of the materials sector finished the day in positive territory.

The weekend did not bring any notable developments from infrastructure negotiations in Washington. Lawmakers are expected to continue talking over the coming days while a $547 bln surface transportation bill will face a House committee markup on Wednesday.

Industrials were pressured by influential components like Union-Pacific (UNP 222.95, -3.22, -1.4%), Caterpillar (CAT 239.76, -4.26, -1.8%), and 3M (MMM 203.73, -2.32, -1.1%) while the Dow Jones Transportation Average (-0.2%) finished a bit ahead of the sector thanks in part to UPS (UPS 212.92, +2.29, +1.1%).

On the upside, real estate (+0.9%) held the lead throughout the day while communication services (+0.5%) and health care (+0.3%) also spent the day in positive territory.

Communication services received a boost from a push to new record highs in Alphabet (GOOG 2466.09, +14.33, +0.6%) and Facebook (FB 336.58, +6.23, +1.9%) even though the companies will be subjected to the new 15% global minimum tax, which received the green light from G-7 finance ministers over the weekend.

Health care was boosted by biotechnology after Biogen's (BIIB 395.85, +109.71, +38.3%) Alzheimer's treatment received FDA approval. Biogen soared nearly 40.0% while the iShares Nasdaq Biotechnology ETF (IBB 158.28, +5.26, +3.4%) jumped to a six-week high.

Treasuries finished with slim losses that lifted the 10-yr yield by a basis point to 1.57%.

Today's economic data was limited to the Consumer Credit report for April, which showed an $18.6 bln increase after increasing a downwardly revised $18.6 bln (from $25.8 bln) in March. The key takeaway from the report is that the expansion in April was driven entirely by nonrevolving credit. Revolving credit decreased, driven in part presumably by consumers' focus on using stimulus money to pay down revolving credit balances.

The NFIB Small Business Optimism Index for May (prior 99.8) will be released tomorrow at 6:00 ET, followed by the April Trade Balance (Briefing.com consensus -$68.6 bln; prior -$74.4 bln) at 8:30 ET and April job openings (prior 8.123 mln) at 10:00 ET.

Russell 2000 +17.4% YTD
Dow Jones Industrial Average +13.2% YTD
S&P 500 +12.5% YTD
Nasdaq Composite +7.7% YTD

Crude Oil Ends Lower
07-Jun-21 15:25 ET
Dow -133.91 at 34622.48, Nasdaq +71.02 at 13885.51, S&P -3.55 at 4226.34

[BRIEFING.COM] The S&P 500 remains lower by 0.1% with 30 minutes left in today's session.

Barring a final push into positive territory, the market is set to finish today just how it began. Four sectors continue hanging onto gains with only one sector--real estate (+1.1%)--up more than 1.0% while seven groups trade lower with just one group--materials (-1.3%)--down more than 1.0%. The top-weighted technology sector (-0.1%) has been rising steadily off its low to trade just below its flat line going into the home stretch.

Elsewhere, energy is down 0.5%, trimming its June gain to 6.2%. Crude oil also slipped 0.5%, or $0.33, ending today's pit session at $69.28/bbl.