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Market Snapshot

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

Dow 34921.94 +103.67 (0.30%)
Nasdaq 14532.54 +271.05 (1.90%)
SP 500 4582.64 +36.78 (0.81%)
10-yr Note -1/32 2.407
NYSE Adv 1815 Dec 1479 Vol 917.4 mln
Nasdaq Adv 2831 Dec 1798 Vol 4.5 bln

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

Moving the Market

-- Big day for the mega-caps/growth stocks

-- Elon Musk discloses 9.2% passive stake in Twitter (TWTR)

-- Broader market has lackluster day

Big day for the growth stocks
04-Apr-22 16:15 ET
Dow +103.67 at 34921.94, Nasdaq +271.05 at 14532.54, S&P +36.78 at 4582.64

[BRIEFING.COM] The S&P 500 rose 0.8% on Monday, as money flowed back into the mega-caps/growth stocks, which accounted for the outperformance of the Nasdaq Composite (+1.9%). The Dow Jones Industrial Average (+0.3%) and Russell 2000 (+0.2%) rose more modestly.

Growth stocks appeared to draw speculative interest from Elon Musk disclosing a 9.2% passive stake in Twitter (TWTR 49.97, +10.66, +27.1%), which propelled TWTR shares to a 27% gain. The investment, and bullish reaction, seemed to instill confidence for dip-buying activity in the growth-stock space, including the mega-caps.

The Vanguard Mega Cap Growth ETF (MGK 240.27, +4.56, +1.9%) advanced 1.9%, leaving the Invesco S&P 500 Equal Weight ETF (RSP 158.56, +0.34, +0.2%) in the dust with its 0.2% gain.

The S&P 500 information technology (+1.9%), consumer discretionary (+2.3%), and communication services (+2.3%) sectors, which contain the mega-caps, each rose about 2%. The energy sector (+0.1%) eked out a gain, while the other sectors closed lower with utilities (-0.8%) finishing in last place.

One more word related to Elon, Tesla (TSLA 1145.45, +60.86, +5.6%) reported over 310,000 deliveries in the first quarter, representing a 68% yr/yr increase despite ongoing supply chain disruptions. TSLA shares rose 5.6%.

Starbucks (SBUX 88.09, -3.40, -3.7%), meanwhile, fell 4% after interim CEO Howard Shultz suspended the company's share buyback program to invest more into company's people and stores.

Elsewhere, oil prices climbed back above $100 per barrel ($103.34, +3.80, +3.8%) amid no reported progress in peace talks between Russia and Ukraine. Coal prices also hit a 13-year high, exacerbating the inflation narrative that helped drive selling interest in the longer-dated part of the Treasury market.

The 10-yr yield increased three basis points to 2.41% while the 2-yr yield decreased one basis point to 2.42% -- narrowing the inversion to one basis point. The U.S. Dollar Index increased 0.4% to 99.01.

Reviewing Monday's economic data:

Factory orders for manufactured goods declined 0.5% m/m in February (Briefing.com consensus -0.6%) following an upwardly revised 1.5% increase (from +1.4%) in January. Shipments of manufactured goods jumped 0.6% after increasing 1.4% in January.
The key takeaway from the report is that it followed a relatively strong month of order growth in January and likely reflects some delayed influence of the Omicron variant on business activity, making it too early to say if this is the start of a weakening trend for factory orders.

Looking ahead, investors will receive the ISM Non-Manufacturing Index for March and the Trade Balance for February on Tuesday.

Dow Jones Industrial Average -3.9% YTD
S&P 500 -3.9% YTD
Russell 2000 -6.7% YTD
Nasdaq Composite -7.1% YTD

Crude futures climb back above $100
04-Apr-22 15:30 ET
Dow +77.65 at 34895.92, Nasdaq +255.13 at 14516.62, S&P +32.29 at 4578.15

[BRIEFING.COM] The S&P 500 is currently up 0.7% while the Russell 2000 lags with a 0.2% gain.

One last look at the sectors shows information technology (+1.8%), consumer discretionary (+2.1%), and communication services (+2.3%) still trading sharply higher due to the mega-caps. The utilities sector (-0.9%) remains the laggard, but the energy (unch) and materials (unch) sectors have recouped intraday declines.

WTI crude futures settled higher by $3.80 (+3.8%) to $103.34/barrel.