>>> US Close Dow -+1,17% S&P +1,61% Nasdaq *1,91%


Closing Stock Market Summary

The stock market closed out the week with a decent rally. The main indices moved higher right out of the gate, which had the S&P 500 open above its 50-day moving average (3,987). The positive disposition held up throughout the session and the main indices closed near their best levels of the day. The Dow, Nasdaq, and S&P 500 rose 1.2%, 2.0%, and 1.6%, respectively. 

Price action in the Treasury market was an integral support factor for equities today. The 10-yr note yield settled back below 4.00%, down 11 basis points to 3.96%. The 2-yr note yield fell five basis points to 4.86%. The U.S. Dollar Index also fell 0.5% to 104.50. 

The drop in market rates fueled buying interest in growth stocks. The Russell 3000 Growth Index rose 1.9% versus a 1.4% gain in the Russell 3000 Value Index. 

There may have been some technical buying interest driving today's gains after the S&P 500 found support at its 200-day moving average (3,940) yesterday.

Broad based buying left all 11 S&P 500 sectors in positive territory. The consumer staples sector (+0.1%) registered the slimmest gain, weighed down by an earnings-driven loss in Costco (COST 475.26, -10.43, +2.2%). On the flip side, gains in mega cap components propelled the information technology (+2.1%), consumer discretionary (+2.1%), and communication services (+2.1%) to the top of the leaderboard. 

The Vanguard Mega Cap Growth ETF (MGK) rose 2.1% versus a 1.4% gain in the Invesco S&P 500. Tesla (TSLA 197.79, +6.89, +3.6%) was a standout after February sales data out of China suggested a 13% rise m/m to 74,402 vehicles, according to Bloomberg.

  • Nasdaq Composite: +11.7% YTD
  • Russell 2000: +9.5% YTD
  • S&P Midcap 400: +9.0% YTD
  • S&P 500: +5.4% YTD
  • Dow Jones Industrial Average: +0.7% YTD

Reviewing today's economic data:

  • February IHS Markit Services PMI - Final 50.6; Prior 50.5
  • February ISM Services PMI 55.1% (consensus 54.5%); Prior 55.2%
    • The key takeaway from the report is that activity remained steady in February despite expectations for a slower pace of growth. Prices continued growing, which gives the Fed another argument to continue its rate hike campaign.

Economic data on Monday is limited to the January Factory Orders (consensus -1.8%; prior 1.8%) at 10:00 a.m. ET.