Closing Stock Market SummaryThe stock market had a fairly strong showing today. Index performance was more modest, however. The market-cap weighted S&P 500 rose only 0.2% while the Invesco S&P 500 Equal Weight ETF (RSP) rose 0.9%. Advancers led decliners by a roughly 2-to-1 margin at the NYSE and the Nasdaq.
Gains for the three major indices were smaller, largely because of the relative weakness seen among the mega cap stocks. The Vanguard Mega Cap Growth ETF (MGK) fell 0.2% with Apple (AAPL 188.61, -2.07, -1.1%), Alphabet (GOOG 116.87, -3.27, -2.7%), and Microsoft (MSFT 331.83, -5.39, -1.6%) registering some of the largest declines from the space. Those losses followed the news from Nasdaq that there will be a Special Rebalance of the Nasdaq 100 to reduce overconcentration in the index by redistributing weights, effective prior to the open on July 24. The new weightings will be determined on Friday, July 14.
Even with lagging mega caps, the broader market held up well today. Small caps, banks, energy and semiconductor stocks all outperformed due to a more positive economic vibe in today's trade. The PHLX Semiconductor Index rose 2.1%, the Russell 2000 rose 1.6%, and the SPDR S&P Regional Banking ETF (KRE) rose 0.8%.
The economically-sensitive S&P 500 industrials (+1.4%) and energy (+0.8%) sectors were among the top performers along with health care (+0.8%) and financials (+0.4%). Meanwhile, the communication services (-0.9%) and utilities (-0.4%) sectors fell to the bottom of the pack.
A pullback in Treasury yields was supportive of equities today. The 2-yr note yield fell nine basis points to 4.85% and the 10-yr note yield fell four basis points to 4.01%.
The improvement in Treasury yields happened ahead of Wednesday's release of the June Consumer Price Index, which promises to be a market-moving catalyst.
- Nasdaq Composite: +30.8% YTD
- S&P 500: +14.9% YTD
- S&P Midcap 400: +8.5% YTD
- Russell 2000: +7.6% YTD
- Dow Jones Industrial Average: +2.4% YTD
Reviewing today's economic data:
- May Wholesale Inventories 0.0% (consensus -0.1%); Prior was revised to -0.3% from -0.1%
Economic data on Tuesday is limited to the NFIB Small Business Optimism Survey for June (prior 89.4) at 6:00 a.m. ET.
