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Market Snapshot

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

Dow 34196.82 +322.58 (0.95%)
Nasdaq 14369.71 +97.98 (0.69%)
SP 500 4266.49 +24.65 (0.58%)
10-yr Note -1/32 1.494
NYSE Adv 2256 Dec 1007 Vol 810.5 mln
Nasdaq Adv 2960 Dec 1233 Vol 4.3 bln

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

Moving the Market

-- S&P 500 and Nasdaq set intraday and closing record highs

-- White House unveils a $1.2 trillion "Bipartisan Infrastructure Framework" that includes $579 billion in new spending

-- Optimism surrounding the Fed's stress test results after the close

-- FDA grants Breakthrough Therapy designation for Eli Lilly's (LLY) investigational antibody therapy for Alzheimer's disease

S&P 500 and Nasdaq close at record highs in government-induced rally
24-Jun-21 16:15 ET
Dow +322.58 at 34196.82, Nasdaq +97.98 at 14369.71, S&P +24.65 at 4266.49

[BRIEFING.COM] The S&P 500 (+0.6%) and Nasdaq Composite (+0.7%) set intraday and closing record highs on Thursday while the Dow Jones Industrial Average (+1.0%) and Russell 2000 (+1.3%) outperformed with gains of at least 1.0%. The bullish price action was driven in part by optimism surrounding government-related news.

Namely, the White House unveiled a $1.2 trillion "Bipartisan Infrastructure Framework" that included $579 billion in new spending, bank stocks rallied ahead of the Fed's stress test results after the close, and the FDA granted Breakthrough Therapy designation for Eli Lilly's (LLY 232.97, +15.87, +7.3%) investigational antibody therapy for Alzheimer's disease.

Nine of the 11 S&P 500 sectors contributed to the record-setting performance, paced by financials (+1.2%), energy (+0.9%), communication services (+0.8%), and industrials (+0.8%). The real estate (-0.5%) and utilities (-0.1%) sectors closed lower.

The consumer discretionary sector (+0.1%) featured continued strength in Tesla (TSLA 679.82, +23.25, +3.5%), which extended its weekly gain to 9%, but the sector was held back by Amazon.com (AMZN 3449.08, -54.74, -1.6%).

Some attributed the weakness in Amazon to the House Judiciary Committee advancing several antitrust bills, a report from CNBC highlighting Amazon's publicity surrounding its recent Prime Day event was more muted than previous years, and news that the Teamsters launched an effort to unionize the company's employees.

Separately, weekly initial jobless claims (411,000) stayed above 400,000 for the second straight week but the market overlooked the report in favor of expectations that the labor market will greatly improve in the fall. On a related note, the bipartisan infrastructure framework invests two-thirds of the resources proposed in President Biden's American Jobs Plan, which could ultimately aid in the recovery effort.

Elsewhere, the 10-yr yield settled unchanged at 1.49%, which remained supportive for the stock market. The 2-yr yield increased three basis points to 0.27%. The U.S. Dollar Index was little changed at 91.78. WTI crude futures increased 0.3%, or $0.22, to $73.31/bbl.

Reviewing Thursday's economic data:

Initial jobless claims for the week ending June 19 decreased by 7,000 to 411,000 (Briefing.com consensus 380,000). Continuing claims for the week ending June 12 were 3.390 million, which is the lowest since March 21, 2020.
The key takeaway from the report is that the initial claims level is still quite high, leaving ample room for improvement in a job market that is expected to strengthen in coming months.
Durable goods orders increased 2.3% month-over-month in May (Briefing.com consensus +2.8%) and were up 25.7% year-over-year. Orders, excluding transportation, increased 0.3% month-over-months (Briefing.com consensus +0.7%) and were up 17.7% year-over-year.
The key takeaway from the report was the strength seen in transportation equipment (+7.6%), which was driven by a 2.1% increase in orders for motor vehicles and equipment and a 27.4% increase in orders for nondefense aircraft and parts.
The third estimate for Q1 GDP was unchanged at 6.4%, as expected, while the third estimate for the GDP Price Deflator was also unchanged at 4.3%, as expected.
The key takeaway from the report is that it's another affirmation of the reopening strength seen in the U.S. economy, although its dated nature (we're almost done with Q2) leaves it devoid of market-moving impact.
The Advance report for International Trade in Goods for May showed a deficit of $88.1 billion, versus a revised $85.7 billion (from $90.6 billion) in April. The Advance report for Retail Inventories for May decreased 0.8%, while the Advance report for Wholesale Inventories for May increased 1.1%.

Looking ahead, investors will receive Personal Income and Spending for May, PCE Prices for May, and the final University of Michigan Index of Consumer Sentiment for June on Friday.

Russell 2000 +18.2% YTD
S&P 500 +13.6% YTD
Dow Jones Industrial Average +11.7% YTD
Nasdaq Composite +11.5% YTD