Closing Stock Market SummaryThe mega-cap stocks stole the show on Monday, powering the Nasdaq Composite to a 2.5% gain (and record close) and lifting the S&P 500 to a 0.8% gain. The Dow Jones Industrial Average (+0.03%) closed little changed, while the Russell 2000 declined 0.4%.
Amazon (AMZN 3196.84, +234.87, +7.9%) gained 8% after its price target was raised to a Street-high of $3800 at Goldman Sachs and Jefferies. Tesla (TSLA 1643.00, +142.16, +9.5%) and Microsoft (MSFT 21.60, +8.70, +4.3%) rallied ahead of their earnings reports on Wednesday. Alphabet (GOOG 1565.72, +50.17, +3.3%) and Apple (AAPL 393.43, +8.12, +2.1%) rose with the mega-cap trade.
In turn, the S&P 500 consumer discretionary (+3.1%), information technology (+2.6%), and communication services (+1.3%) sectors posted solid gains, but they were the only sectors to close higher today. The Philadelphia Semiconductor Index (+2.0%) also had a great day, reflecting an infatuation for growth stocks after falling out of favor last week.
Conversely, the energy (-1.7%), utilities (-1.4%), industrials (-1.2%), and consumer staples (-1.0%) sectors fell at least 1.0%. The Dow Jones Transportation Average declined 1.6%.
Investors were also provided with positive COVID-19 vaccine data from the U.S. collaboration between Pfizer (PFE 36.50, +0.25, +0.7%) and BioNTech (BNTX 88.20, +2.95, +3.5%) and the UK collaboration between AstraZeneca (AZN 58.68, -2.42, -4.0%) and the University of Oxford.
The broad market did not rally on the news this time around, evidenced by only three S&P 500 sectors closing higher and by declining issues outpacing advancing issues at the NYSE. The S&P 500, however, did finish above its June 8 closing level (3232.39) due to the strength in the mega-caps.
In M&A activity, Noble Energy (NBL 10.18, +0.53, +5.4%) agreed to be acquired by Chevron (CVX 85.27, -1.92, -2.2%) for $5 billion, or $10.38/share, in stock.
U.S. Treasuries finished little changed after trading near their flat lines all session. The 2-yr yield increased one basis point to 0.15%, and the 10-yr yield decreased one basis point to 0.62%. The U.S. Dollar Index declined 0.1% to 98.82. WTI crude futures gained 0.7%, or $0.27, to $40.83/bbl.
Investors did not receive any notable economic data on Monday and will not receive any reports on Tuesday, either.
- Nasdaq Composite +20.0% YTD
- S&P 500 +0.7% YTD
- Dow Jones Industrial Average -6.5% YTD
- Russell 2000 -12.0% YTD