Closing Market Summary: Indices End on Mixed Note as Biotech Continues RallyThe major averages ended the Tuesday session on a mixed note as a rebound in the health care space (+0.9%) and the outperformance of the technology sector (+0.1%) outweighed the initial selling pressure following news of a terrorist attack in Brussels. Meanwhile, sustained strength from the energy sector (-0.3%) also helped support the move higher in the broader market. The Dow Jones Industrial Average (-0.2%) ended its day behind the S&P 500 (-0.1%) and the Nasdaq Composite (+0.3%).
Today's session began on a shaky note as investors turned to safe havens following reports of terror attacks in Belgium's capital of Brussels. Explosions at the Brussels airport and a crowded metro station resulted in at least 30 deaths and more than 200 injuries. Terrorist organization ISIS has since claimed responsibility for the attack. Because of the attack, the major indices all opened beneath their flat lines and risk averse assets received a bid.
The consumer discretionary space (-0.2%) and the industrial sector (-0.3%) showed early weakness as lodging names and airlines displayed heavy losses. However, an extended rally in the recovering health care group (+0.9%) and sector leadership from the influential technology space (+0.1%) helped support the broader market. As a result, the remaining sectors were lifted from their session lows.
Health care (+0.9%), technology (+0.1%), and materials (+0.1%) ended in the green while consumer staples (-0.8%), telecom services (-0.5%), and financials (-0.3%) ended with the largest losses.
The heavily-weighted health care space (+0.9%) boosted investor sentiment as biotechnology extended this week's rebound effort. To that point, the iShares Nasdaq Biotechnology ETF (IBB 263.10, +6.61) extended its weekly gain to 5.0%. Meanwhile, health care large caps also outperformed with AbbVie (ABBV 57.50, +1.49) and Pfizer (PFE 30.38, +0.31) gained 2.7% and 1.0%, respectively.
In the technology space, heavyweight component Apple (AAPL 106.72, +0.81) gained 0.8% in the wake of yesterday's flat showing following its product event. Separately, data storage names like Western Digital (WDC 51.34, +2.05) and Seagate Technology (STX 37.04, +0.50) outperformed while the PHLX Semiconductor Index (-0.1%) ended modestly lower.
The energy sector (-0.3%) was able to avoid larger losses despite a downturn in oil. WTI crude ended its day lower by 0.3% at $41.45/bbl after reports indicated that Libya will not take part in a proposed supply cut between OPEC and non-OPEC countries. To be fair though, oil and gas pipeline companies ended with the largest gains as the names likely benefited from the 1.6% jump in natural gas ($1.86/mmbtu).
The U.S. Dollar Index (95.63, +0.35) ended off its best level of the day, but the greenback still remained higher against the yen and the euro. The dollar/yen pair traded higher by 0.3% (112.31) after rallying off the 111.55 level. Meanwhile, the euro/dollar pair finished its day lower by 0.2% at 1.1219.
The yield on the 10-yr note slipped to 1.88% (-4 bps) at the beginning of today's session, but Treasuries sold off as stocks rallied. The yield on the 10-yr note ended higher by two basis points at 1.94%.
Once again, today's volume was on the lighter side as fewer than 819.21 million shares changed hands on the NYSE floor.
Today's economic data was limited to the FHFA Housing Price Index for January, which rose 0.5% month-over-month after increasing a revised 0.5% (from 0.4%) in December.
Tomorrow's economic data will include the 7:00 ET release of the weekly MBA Mortgage Index and the February New Homes Sales Report (511k), which will cross the wires at 10:00 ET.
- Nasdaq Composite: -3.7% YTD
- Russell 2000: -3.4% YTD
- S&P 500: +0.3% YTD
- Dow Jones +0.9% YTD