Sector Investing

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Market Snapshot

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

Dow 34870.16 +448.23 (1.30%)
Nasdaq 14701.92 +142.13 (0.98%)
SP 500 4369.55 +48.73 (1.13%)
10-yr Note -27/32 1.355
NYSE Adv 2572 Dec 682 Vol 816.0 mln
Nasdaq Adv 3229 Dec 981 Vol 3.7 bln

Industry Watch
Strong: Financials, Industrials, Materials, Energy
Weak: Utilities

Moving the Market

-- Stocks and Treasury yields staged strong reversals from yesterday

-- S&P 500, Dow, and Nasdaq close at record highs

-- Value/cyclical stocks led broad-based advance

-- 10-yr yield settled higher at 1.36%

S&P 500 and Nasdaq reverse to record highs
09-Jul-21 16:15 ET
Dow +448.23 at 34870.16, Nasdaq +142.13 at 14701.92, S&P +48.73 at 4369.55

[BRIEFING.COM] U.S. stocks and Treasury yields staged a strong reversal on Friday, with the S&P 500 rallying 1.1% to intraday and closing record highs and the 10-yr yield rebounding seven basis points to 1.36%. The Nasdaq Composite (+1.0%) and Dow Jones Industrial Average (+1.3%) also closed at record highs while the Russell 2000 (+2.0%) outperformed.

Today's positive price action was largely a continuation of yesterday's trade that saw the 10-yr yield bottom at 1.25% early in Thursday's session and stocks close off their intraday lows. Today, value/cyclical stocks led the broad-based advance, feeding into the view that growth concerns have been a bit overstated.

All 11 S&P 500 sectors finished in positive territory, 28 of the 30 Dow components closed higher, and advancing issues outpaced declining issues by a 4:1 margin at the NYSE and a 3:1 margin at the Nasdaq.

The financials (+2.9%), materials (+2.0%), energy (+2.0%), and industrials (+1.6%) sectors advanced the most after entering the session as weekly laggards. Bank stocks and energy stocks received additional support from a wider 2s10s spread in the Treasury market and higher oil prices ($74.56/bbl, +1.58, +2.2%).

Apple (AAPL 145.11, +1.87, +1.3%) was arguably one of the most influential stocks today given its 1.3% gain and $2.42 trillion market capitalization. The stock opened little changed like the Nasdaq but steadily crept higher throughout the day and set its first all-time high since January.

Supportive news included Pfizer (PFE 39.63, +0.38, +1.0%) announcing that it's working on a booster COVID-19 shot to target the Delta variant, and San Francisco Fed President Daly (FOMC voter) suggesting the Fed should be cautious about withdrawing its policy support due to the risks posed by the Delta variant.

The bullish tone was further corroborated by softness in the U.S. dollar (91.10, -0.32, -0.4%) and Japanese yen (-0.3%), which are typically viewed as safe-haven currencies, and separately by a weaker CBOE Volatility Index (16.18, -2.82, -14.8%). The latter represented a decline in the hedging premium.

The 2-yr yield increased three basis points to 0.22%.

Friday's economic data was limited to Wholesale Inventories for May, which increased 1.3% m/m in May (Briefing.com consensus 1.1%) following a revised 1.1% increase (from +0.8%) in April. Investors will not receive any notable economic data on Monday.

S&P 500 +16.3% YTD
Russell 2000 +15.5% YTD
Nasdaq Composite +14.1% YTD
Dow Jones Industrial Average +13.9% YTD

[Edit: the comment has been reflected to include that the Dow closed at a record high, which was omitted in the previous version]
Crude futures settle higher
09-Jul-21 15:30 ET
Dow +457.47 at 34879.40, Nasdaq +132.97 at 14692.76, S&P +47.67 at 4368.49

[BRIEFING.COM] The S&P 500 is trading at session highs with a 1.1% gain.

One last look at the S&P 500 sectors shows financials (+2.9%), energy (+2.1%), and materials (+2.0%) still leading the advance with gains of at least 2.0% while the utilities sector (+0.1%) has turned positive with a 0.1% gain.

WTI crude futures settled higher by 2.2%, or $1.58, to $74.56/bbl.