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Market Snapshot

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

Dow 34502.51 +210.22 (0.61%)
Nasdaq 14503.96 -24.38 (-0.17%)
SP 500 4297.50 +5.70 (0.13%)
10-yr Note +2/32 1.454
NYSE Adv 1895 Dec 1400 Vol 1.1 bln
Nasdaq Adv 2010 Dec 2260 Vol 5.2 bln

Industry Watch
Strong: Energy, Consumer Staples, Financials, Industrials
Weak: Information Technology, Communication Services, Real Estate, Utilities

Moving the Market

-- S&P 500 ends second quarter with fifth-straight record close

-- Value stocks outperformed growth stocks amid rebalancing factors

-- 10-yr yield declined amid reported growth concerns linked to the Delta Covid variant

-- Preference towards U.S. stocks instead of foreign stocks

S&P 500 ends second quarter with fifth-straight record close
30-Jun-21 16:20 ET
Dow +210.22 at 34502.51, Nasdaq -24.38 at 14503.96, S&P +5.70 at 4297.50

[BRIEFING.COM] The S&P 500 increased 0.1% on Wednesday, and closed at a record high, as money flowed into the value stocks on this final day of the second quarter. Relative to the benchmark index, the Dow Jones Industrial Average (+0.6%) outperformed, the Russell 2000 (+0.1%) performed in-line, and the Nasdaq Composite (-0.2%) underperformed.

The energy sector (+1.3%) set the winning pace with a gain over 1.0%, followed by industrials (+0.8%), consumer staples (+0.7%), and financials (+0.5%). The information technology sector (-0.1%) limited the broader advance with a slight decline, although the real estate sector (-0.8%) declined the most.

Growth stocks had a terrific month of June at the expense of many value stocks, so it's likely that the balance shifted in favor of value due to rebalancing factors. The rotation was modest, evident by the 0.3% gain in the Russell 1000 Value Index versus the 0.2% decline in the Russell 1000 Growth Index, yet interesting because it happened despite reported growth concerns.

The 10-yr yield, a gauge for how investors are feeling about economic growth prospects, declined three basis points to 1.45%. Investors may have remained cautious given the restrictive measures governments in Asia and Europe have taken to curb the spread of the Delta Covid variant.

Compared to foreign equity markets, U.S. stocks (growth included) held up much better amid the perceived safety of U.S. markets and a belief that a growing vaccinated population will stave off the virus. Both the Vanguard Developed Markets Index Fund ETF (VEA 51.52, -0.35, -0.7%) and the iShares MSCI Emerging Markets ETF (EEM 55.15, -0.36, -0.7%) declined 0.7%.

The U.S. Dollar Index was another testament to the faith bestowed in U.S. markets, as it increased 0.3% to 92.35. Separately, the 2-yr yield decreased one basis point to 0.25%. WTI crude futures increased 0.6%, or $0.44, to $73.53/bbl ahead of an OPEC+ production meeting on Thursday.

In corporate news, Intel (INTC 56.14, -0.61, -1.1%) delayed the production of its Xeon server chip until 2022, Micron (MU 84.98, +2.05, +2.5%) was upgraded to Outperform from Market Perform at BMO Capital Markets ahead of its earnings report after the close, and China's Didi Global (DIDI 14.14, +0.14, +1.0%) had disappointing price action after an opening IPO pop.

Reviewing Wednesday's economic data:

The ADP Employment Change report estimated the addition of 692,000 private-sector payrolls in June (Briefing.com consensus 400,000) following a downwardly revised 886,000 increase (from 978,000) in May.
Pending home sales rose 8.0% m/m in May following a 4.4% decline in April.
The Chicago PMI decreased to 66.1 in June (Briefing.com consensus 70.0) from 75.2 in May.
The weekly MBA Mortgage Applications Index fell 6.9% following a 2.1% increase in the prior week.

Looking ahead, investors will receive the ISM Manufacturing Index for June, weekly Initial and Continuing Claims, the final IHS Markit Manufacturing PMI for June, and Construction Spending for May on Thursday.

Russell 2000 +17.0% YTD
S&P 500 +14.4% YTD
Dow Jones Industrial Average +12.7% YTD
Nasdaq Composite +12.5% YTD

Crude futures settle higher ahead of OPEC+ meeting
30-Jun-21 15:30 ET
Dow +204.41 at 34496.70, Nasdaq -12.13 at 14516.21, S&P +5.05 at 4296.85

[BRIEFING.COM] The S&P 500 is up 0.1%, and the Russell 2000 is up 0.3%. The benchmark index is on track to close at a record high.

One last look at the S&P 500 sectors shows energy (+1.3%), industrials (+0.8%), and financials (+0.4%) leading the advance, while the real estate (-0.7%), utilities (-0.5%), communication services (-0.2%), and health care (-0.3%) sectors lag in negative territory.

WTI crude futures settled higher by $0.44 (+0.6%) to $73.53/bbl ahead of an OPEC+ production meeting tomorrow.