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Market Snapshot

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

Dow 31880.26 +618.34 (1.98%)
Nasdaq 11535.27 +180.66 (1.59%)
SP 500 3973.76 +72.39 (1.86%)
10-yr Note
NYSE Adv 2209 Dec 1099 Vol 971 mln
Nasdaq Adv 2684 Dec 1944 Vol 4.5 bln

Industry Watch
Strong: Financials, Materials, Industrials, Consumer Staples, Energy, Information Technology, Utilities
Weak: Consumer Discretionary

Moving the Market

--Carryover momentum from late Friday rebound effort that pulled S&P 500 out of bear market territory

--M&A reports

--Broad-based participation

--Financials strong after JPM raises net interest income outlook

Closing Summary
23-May-22 16:15 ET
Dow +618.34 at 31880.26, Nasdaq +180.66 at 11535.27, S&P +72.39 at 3973.76

[BRIEFING.COM] There were no Monday blues for the stock market. Instead, stock monitors were generally awash in green figures as market participants succeeded in maintaining the momentum of Friday's late rebound effort.

JPMorgan Chase (JPM 124.58, +7.28, +6.2%) raising its net interest income outlook, reports that Broadcom (AVGO 526.36, -16.83, -3.1%) is in talks to acquire VMWare (VMW 119.90, +24.19, +25.3%) in a cash-and-stock deal, and an acknowledgment by President Biden that he is considering lifting some Chinese tariffs to help ease inflation pressures played a supportive role in today's rebound-minded trade.

The featured performer, however, was the stock market's prior performance, which is to say market participants subscribed to the notion that recent selling activity had gotten overdone, leaving the indices ripe for a rebound campaign.

Entering today, the Nasdaq Composite had declined 20.1% since the end of March, the S&P 500 had dropped 13.9%, and the Dow Jones Industrial Average had fallen 9.9%.

Sure enough, today's market narrative included a contention that month-end rebalancing activity would go in favor of stocks. We are not at month end yet, but we are in the home stretch, so that view resonated as a factor behind the stock market's resilience to selling efforts today.

It also fit with the broad-based buying interest seen in today's market. The Russell 3000 Value Index was up 1.5% and the Russell 3000 Growth Index was also up 1.5%.

All 11 S&P 500 sectors closed in positive territory. The financial sector (+3.2%), bolstered by JPMorgan Chase's guidance and some value hunting, led the way. It was joined at the top of the performance table by the energy (+2.7%), information technology (+2.4%), and consumer staples (+2.1%) sectors.

The latter was perhaps the surest sign of the market's rebound-minded bid considering that the consumer staples sector was one of last week's worst-performing sectors. The consumer discretionary sector (+0.6%), also a huge laggard last week, was today's weakest sector, although it managed to recover from an early 1.9% decline.

Treasuries generally tracked lower today, as stock prices tracked higher, in a curve-steepening trade. The 2-yr note yield settled up three basis points at 2.61% while the 10-yr note yield ended up seven basis points at 2.86%. A strong move by the euro against the dollar (EUR/USD +1.2% to 1.0686), after ECB President Lagarde teased the possibility of exiting negative rates by the end of Q3, was another factor weighing on Treasuries.

The U.S. Dollar Index fell 1.0% to 102.09. WTI crude futures settled the session up 0.2% at $110.31/bbl while natural gas futures spiked 7.9% to $8.84/mmbtu.

There was no U.S. economic data of note today. Tuesday's session will feature the preliminary IHS Markit Manufacturing and Services PMIs for May at 9:45 a.m. ET and the New Home Sales Report for April at 10:00 a.m. ET.

Dow Jones Industrial Average -12.0% YTD
S&P 500 -16.6% YTD
Russell 2000 -20.4% YTD
Nasdaq Composite -26.3% YTD

Value leading growth
23-May-22 15:30 ET
Dow +579.77 at 31841.69, Nasdaq +134.78 at 11489.39, S&P +63.31 at 3964.68

[BRIEFING.COM] There was a drift lower in the major indices during the New York lunch hour, yet the market found its footing and got running again to revisit prior session highs where it was eventually met with some resistance. Those respective resistance levels were 3,980 for the S&P 500 and 11,550 for the Nasdaq Composite.

Just about everything got pulled along on the push higher, including the consumer discretionary sector (+0.3%), which was up as much as 0.9% a short time ago after being down 1.9% earlier in the day.

Today's broad-based buying interest has afforded an edge to the value factor versus the growth factor. Currently, the Russell 3000 Value Index is up 2.0% versus a 1.6% gain for the Russell 3000 Growth Index.

All 11 S&P 500 sectors are in positive territory. The financial sector (+3.5%) remains perched in the top spot where it has resided all day.
Energy sector reaching new high
23-May-22 15:00 ET
Dow +603.60 at 31865.52, Nasdaq +149.49 at 11504.10, S&P +65.86 at 3967.23

[BRIEFING.COM] All major indices still holding onto gains today. The S&P 500 is nearing a session high of 1.8%. The financials (3.6%), energy (2.7%), consumer staples (2.2%), and information technology (2.1%) all still leading the outperformers. Leading the tail end is still the consumer discretionary (0.4%) sector, however it is well off its lows of the morning when it was down by 1.9%.

The energy sector reached its highest point since 2014 today. Notably pulling up the sector are Marathon (MPC 28.14, +0.88, +3.2%) and Exxon Mobil (XOM 93.91, +2.1, +2.2%) which both reached new 52-week highs. In the same vein, WTI crude oil futures settled higher today by $0.26 (0.24%) to $110.31/barrel.
Ross Stores gains on Barron's mention, Caesars underperforms in S&P 500
23-May-22 14:30 ET
Dow +649.61 at 31911.53, Nasdaq +167.90 at 11522.51, S&P +73.09 at 3974.46

[BRIEFING.COM] The S&P 500 (+1.87%) sits firmly in second place to this point on Monday.

S&P 500 constituents Ross Stores (ROST 79.28, +7.41, +10.31%), Deere (DE 334.98, +21.67, +6.92%), and Mosaic (MOS 61.57, +3.62, +6.25%) pepper the top of today's action. A positive Barron's mention aids ROST's Monday advance, while DE pares Friday's earnings-related losses, and MOS gains alongside general strength in materials names.

Meanwhile, casino operator Caesars Entertainment (CZR 48.13, -1.98, -3.95%) is one of today's top laggards.
Gold modestly higher as dollar slips to open the week
23-May-22 14:00 ET
Dow +624.43 at 31886.35, Nasdaq +142.35 at 11496.96, S&P +66.76 at 3968.13

[BRIEFING.COM] We're little changed in the major averages in the last half hour, the tech-heavy Nasdaq Composite (+1.25%) still bringing up the rear.

Gold futures settled $5.70 higher (+0.3%) to $1,847.80/oz, aided by a pullback in the greenback.

Meanwhile, the U.S. Dollar Index is down about -1% to $102.12.