The stock market showed positive gains on Monday, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closing higher. The Nasdaq reached a new all-time high, driven by strong performances from mega-cap companies like Apple, Amazon, Microsoft, and Tesla. However, market breadth was negative, with declining stocks outnumbering advancing stocks on both the NYSE and Nasdaq. Treasury yields jumped following a below-consensus ISM manufacturing index for June, leading to a bearish sentiment in the market.
In terms of sector performance, large-cap companies outperformed while cyclical sectors like materials, industrial, and real estate struggled. The information technology, consumer discretionary, and financial sectors saw better performance. Year-to-date, the Nasdaq Composite led the gains, followed by the S&P 500, S&P Midcap 400, Dow Jones Industrial Average, and Russell 2000.
Economic data for June showed a below-consensus ISM manufacturing index and a decline in construction spending in May, highlighting a sluggish manufacturing sector and weakened private residential spending. Looking ahead, Tuesday’s economic calendar includes the May job openings report.
In news, Paramount Global is in talks to merge its Paramount+ streaming service with a partner like Warner Bros. Discovery or Comcast Peacock. IBM and Microsoft announced a cybersecurity collaboration, while Hawaiian Electric and NextEra Energy Partners experienced declines following company news. Morgan Stanley raised its estimates for Nvidia, but Walgreens Boots Alliance fell after a price target cut by JP Morgan. OZK Bank declared a dividend increase, and Oppenheimer listed industrial stocks like Uber Technologies and XPO as big buys. Home improvement stocks like Home Depot and Lowe’s faced pressure, while Data Dog continued its upward trend.
Overall, the market showed mixed performances with positive gains from mega-cap tech stocks and certain sectors, but with market breadth and economic data indicating some weaknesses. Investors are watching closely for further developments in the market and upcoming economic reports.
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