S&P 500
THE GIST (“THE WHAT”)
The S&P 500 index extended Monday’s gains in the early morning session as Technology sector outperformed and investors shrugged off trade war and geopolitical tensions for now. Weakness in the Financials and Consumer staples sectors however weighed down on the index, dragging it to reach day’s low at 2739.51, albeit staying above the trading range of 2700 – 2740 the index was confined to since May 9. Swinging between small gains and losses, the index closed the session at 2748.80 (March 16 high), up only 1.93 points over previous day’s close. Only 5 out of the 11 primary sectors ended the session higher.
THE DETAILS (The “How & Why”):
Technology stocks led the early session gains as the index reached the day’s high at 2752.61. Led by Apple Inc. and Twitter Inc, the sector gained 0.43% intraday. Stock of Twitter Inc. closed at three-year high following news of its inclusion in S&P 500 index from Thursday’s trading session. Apple Inc. also reached new highs after launching new development tools and software upgrades for its products.
Consumer Discretionary was the best performing sector in the index for a second consecutive day (up 0.57%) as retail stocks extended Monday’s gains after an analyst firm, Evercore ISI double-upgraded stock of Macy’s Inc. Macy’s Inc. and Gap Inc. were the best performers, gaining 7.95% and 6.82% respectively. Rising metal prices boosted the broader Materials sector to be the second best performing sector in the index, gaining 0.76%.
Several cruise line operators were amongst the worst performers in the index today after Morgan Stanley cited weakness in the industry over the coming quarters. Carnival Corp. and Norwegian Cruise Line Holdings Ltd were the bottom performers, losing 4.34% and 4.21% respectively. Financial stocks also shed Monday’s gains as the 10-year yield inching down 2 basis points to 2.92%.