Stock Market Update

[BRIEFING.COM] The Dow Jones Industrial Average (+0.1%), the S&P 500 (+0.3%), and the Nasdaq Composite (+0.8%) closed with gains. This price action led the Nasdaq to a fresh all-time high, driven by outsized gains in mega cap names.

Apple (AAPL 216.75, +6.13, +2.9%), Amazon.com (AMZN 197.20, +3.95, +2.0%), Microsoft (MSFT 456.73, +9.78, +2.2%), and Tesla (TSLA 209.86, +11.98, +6.1%) were among the influential winners today. Tesla was reacting to solid June deliveries from Chinese EV makers before reporting Q2 deliveries tomorrow. 

There was an underlying negative bias driving today's trade, though. Declining issues led advancing issues by a 2-to-1 margin at the NYSE and by a 3-to-2 margin at the Nasdaq. The equal-weighted S&P 500 logged a 0.8% decline, the Russell 2000 registered a 0.9% loss, and the S&P Mid Cap 400 fell 1.0%. 

The downside bias was driven by a jump in Treasury yields following a below-consensus ISM Manufacturing Index for June. The 10-yr note yield settled 14 basis points higher at 4.48% and the 2-yr note yield jumped five basis points to 4.77%.

Mega cap names fueled upside moves in their respective S&P 500 sectors today while cyclical sectors underperformed. The materials sector (-1.6%) was the biggest loser followed by industrials (-1.1%). The rate-sensitive real estate (-1.0%) and utilities (-0.7%) sectors were also top laggards.

The heavily-weighted information technology sector led the pack, gaining 1.3%, followed by the consumer discretionary (+0.7%) and financial (+0.2%) sectors.

• Nasdaq Composite: +19.1% YTD
• S&P 500: +14.8% YTD
• S&P Midcap 400: +4.3% YTD
• Dow Jones Industrial Average: +3.9% YTD
• Russell 2000: +0.2% YTD

Reviewing today's economic data:

• June ISM Manufacturing Index 48.5% (Briefing.com consensus 49.1%); Prior 48.7%
  • The key takeaway from the report is that each component remained in a state of contraction -- except prices, which slowed from the prior month -- signaling a state of subdued activity for the manufacturing sector that fits with a slowing economy.
• May Construction Spending -0.1% (Briefing.com consensus 0.1%); Prior was revised to 0.3% from -0.1%
  • The key takeaway from the report was the drag in private residential spending that was driven by a decline in new single-family construction at a time when overall housing inventory has been constrained due to a lack of inventory for existing homes.
• June S&P Global US Manufacturing PMI - Final 51.6; Prior 51.7

Looking ahead, Tuesday's economic data is limited to the May job openings report (prior 8.059 mln) at 10:00 ET.