The U.S. stock market began the week with little excitement, as all indices remained near Friday’s closing values. Traders are taking a more cautious approach as they anticipate important events scheduled for the week.
Earnings reports from influential companies like Apple, Inc. and Amazon Inc. on Thursday, as well as key macroeconomic data like PMI readings and the highly anticipated jobs report on Friday, will heavily impact the market.
The Nasdaq 100 Index is on track to experience its sixth consecutive month of growth. This is a rare occurrence, as it has only happened four times since the fall of Lehman in 2008. The last time this happened was between April and August 2020.
On Monday, the major indices including the S&P 500, Nasdaq 100, and Dow all saw slight increases of 0.1%, while small caps in the Russell 2000 outperformed with a 0.9% rise. The Russell 2000 index is also nearing its 2023 highs at 2,007 points, reached in February.
According to LPL Financial’s Chief Technical Strategist Adam Turnquist, the current market rally is encouraging because it involves a broader range of stocks. He noted that the performance of the average stock is improving, and the market’s advance/decline line has reached a new 52-week high. Additionally, around 75% of S&P 500 stocks were trading above their 200-day moving average, with cyclical sectors leading the way. International stocks are also participating in the rally, with major global benchmarks now in bull market territory.
In terms of Monday’s trading, the SPDR S&P 500 ETF Trust, SPDR Dow Jones Industrial Average ETF, and Invesco QQQ Trust all remained relatively stable. The Energy Select Sector SPDR Fund performed well, rising 1.9%, while the Health Care Select Sector SPDR Fund declined by 1.1%.
The latest economic data showed that the Federal Reserve Bank of Dallas’s manufacturing sector general business activity index reached a four-month high in July 2023. However, the production index remained steady, indicating a slight decline in output.
Several stocks were in focus on Monday, including SoFi Technologies, Inc., Palantir Technologies, Inc., and ON Semiconductor Corp., all of which saw positive gains on the back of better-than-expected results for the last quarter.
Other global markets, commodities, and bonds remained relatively stable. Crude oil rose slightly, treasury yields were steady, and the U.S. dollar index remained unchanged. European equity indexes closed with mixed results, and gold and silver both saw modest increases. Bitcoin, however, experienced a slight decline.
This report was updated by staff writer Piero Cingari on Monday.
