Closing Stock Market Summary
The major indices started the week with gains, albeit on light volume at the NYSE. The S&P 500 and Nasdaq closed near their best levels of the day, which had both indices above their 50-day moving averages. Strength from some mega cap names provided a nice boost to the broader market.
The Nasdaq climbed 1.1% and the market-cap weighted S&P 500 rose 0.7% while the Invesco S&P 500 Equal Weight ETF (RSP) eked out a 0.2% gain. Tesla (TSLA 273.58, +25.08, +10.1%) was a notable outperformer, jumping 10% after being upgraded to Overweight from Equal Weight at Morgan Stanley.
Most of the S&P 500 sectors logged a gain, but consumer discretionary (+2.8%) was the top performer by a wide margin thanks to Tesla. The energy sector (-1.3%) fell to the bottom of the pack.
Market breadth was positive, but modestly so. Advancers led decliners by an 11-to-10 margin at the NYSE and the Nasdaq.
The lack of strong conviction on either side of the tape comes ahead of a busy week of economic data. This week's calendar features the August Consumer Price Index on Wednesday, followed by the August Producer Price Index and Retail Sales report on Thursday.
Another increase in market rates didn't deter the buying activity seen in mega cap stocks. The 2-yr note yield rose two basis points to 4.99% and the 10-yr note yield rose three basis points to 4.29%.
This morning's release of the New York Fed's August 2023 Survey of Consumer Expectations showed that households are less optimistic about their financial situation. Inflation expectations rose slightly at the short- and longer-term horizons and fell slightly at the medium-term horizon. Income growth perceptions declined in August, and job loss expectations rose sharply to its highest level since April 2021.
In other news, Bank of Japan Governor Ueda revealed that Japan's policy rate could be lifted out of negative territory this year, but it was unclear if he was referencing the end of the calendar year or the end of the fiscal year on March 31.
There was no U.S. economic data of note today.
- Nasdaq Composite: +33.0% YTD
- S&P 500: +16.9% YTD
- S&P Midcap 400: +6.1% YTD
- Russell 2000: +5.3% YTD
- Dow Jones Industrial Average: +4.6% YTD