Closing Stock Market SummaryThe S&P 500 (-0.02%) eked out an intraday record high on Monday, but it closed fractionally lower in a tight-ranged session as investors waited for Q1 earnings and economic data later in the week. The Nasdaq Composite (-0.4%), Dow Jones Industrial Average (-0.2%), and Russell 2000 (-0.4%) joined the benchmark index with modest losses.
Eight of the 11 S&P 500 sectors closed higher, although daily gains were capped at 0.6% (consumer discretionary). The information technology (-0.5%) and communication services (-0.6%) sectors dragged on index performance amid a breather in their heavily-weighted components while the energy sector (-0.9%) was the weakest link.
Generally speaking, investors appeared content in withholding conviction for a batch of key economic reports throughout the week, starting with the Consumer Price Index for March tomorrow, and for earnings reports from some of the leading financial institutions on Wednesday.
Tesla (TSLA 701.98, +24.96, +3.7%) and NVIDIA (NVDA 608.36, +32.36, +5.6%) were some of the more influential gainers today, helping make up for the lackluster price action in the broader market. TSLA was upgraded to Buy from Hold at Canaccord Genuity. NVIDIA raised Q1 revenue guidance above consensus and announced several new product offerings.
Shares of Intel (INTC 65.41, -2.86, -4.2%) and Advanced Micro Devices (AMD 78.58, -4.18, -5.1%) fell noticeably on the increased competition with NVIDIA. The Philadelphia Semiconductor Index declined 1.1%.
In other corporate news, Microsoft (MSFT 255.91, +0.06, unch) agreed to acquire Nuance Communications (NUAN 52.85, +7.27, +16.0%) in a $19.7 billion cash deal. Uber (UBER 59.44, +1.76, +3.1%) reported its highest monthly total company gross bookings in March.
In Fedspeak, Fed Chair Powell said in a 60 Minutes interview that forecasts for U.S. economic growth and jobs growth are looking strong. St. Louis Fed President Bullard told Bloomberg that the central bank will not consider tightening policy until about 75% to 80% of the U.S. population is vaccinated. According to the CDC COVID Data Tracker, about 22% of the U.S. population is fully vaccinated.
Elsewhere, $207 billion in new debt was issued in the Treasury market today, which the market absorbed without too much trouble. The 2-yr yield increased one basis point to 0.17%, and the 10-yr yield increased one basis point to 1.68%. The U.S. Dollar Index was little changed at 92.12. WTI crude futures increased 0.7%, or $0.40, to $59.69/bbl.
Reviewing Monday's economic data:
- The Treasury Budget for March showed a $659.6 bln deficit, versus a $119.0 bln deficit in the same period a year ago. The budget data is not seasonally adjusted, so the March deficit can't be compared to the February deficit of $310.9 bln.
- The fiscal year-to-date budget deficit is $1.71 trln versus -$743.5 bln for the same period a year ago. The budget deficit over the last 12 months is $4.09 trln versus -$3.55 trln in February.
Looking ahead, investors will receive the Consumer Price Index for March and the NFIB Small Business Optimism Index for March on Tuesday.
- Russell 2000 +13.1% YTD
- Dow Jones Industrial Average +10.3% YTD
- S&P 500 +9.9% YTD
- Nasdaq Composite +7.5% YTD