Day Traders Diary
The equity market kicked off the week with a quiet victory on Monday, adding to last week's advance. The tech-heavy Nasdaq climbed 0.7% to 7606.46, closing at a new record high for the first time since March 12. Meanwhile, the S&P 500 and the Dow advanced 0.5% and 0.7%, respectively. The Russell 2000 lagged, adding just 0.3%, but still finished at a new all-time high.
Gains were broad-based on Monday, with seven of eleven S&P 500 sectors settling in positive territory. Consumer discretionary (+1.1%) was the top-performing sector, followed closely by information technology (+0.9%), consumer staples (+0.8%), and real estate (+1.0%).
Within the tech space, Apple (AAPL 191.83, +1.59) climbed 0.8%, closing at a new all-time high, as investors focused on the company's WorldWide Developers Conference (WWDC), and Microsoft (MSFT 101.67, +0.88) advanced 0.9%, also settling at a new record, after announcing that it will acquire GitHub for $7.5 billion in stock.
Meanwhile, retailers helped underpin the consumer discretionary and consumer staples sectors and pushed the SPDR S&P Retail ETF (XRT 47.64, +1.02) up 2.2% to a fresh four-month high. Walmart (WMT 85.42, +2.43), Home Depot (HD 191.36, +4.01), and Target (TGT 76.35, +3.55) were notable outperformers, adding between 2.1% and 4.9%.
On the downside, energy (-0.9%) finished at the bottom of the sector standings as crude prices dropped yet again. WTI crude futures declined by 1.6% to $64.76 per barrel, finishing 10.4% below the three-and-a-half year high they hit on May 21. The utilities (-0.9%), industrials (-0.1%), and telecom (-0.1%) groups also settled in the red.
In the health care space (+0.4%), Nektar Therapeutics (NKTR 52.57, -37.78) plunged 41.8% following disappointing clinical trial results for its drug NKTR-214, which is being used in combination with Bristol-Myers Squibb's (BMY 51.45, -1.68) cancer drug Opdivo. Conversely, Dow component Merck (MRK 62.02, +1.46) jumped 2.4% after another round of positive trial results for its star cancer drug Keytruda.
Outside of equities, U.S. Treasuries began the week on a lower note, sending yields higher across the curve. The yield on the benchmark 10-yr Treasury note, for instance, climbed four basis points to 2.94%. Meanwhile, the U.S. Dollar Index declined 0.2% to 94.02, marking its third loss in four sessions.
Reviewing Monday's economic data, which was limited to the Factory Orders report for April:
Looking ahead, investors will receive the ISM Services Index for May and the Job Openings and Labor Turnover Survey for April on Tuesday.
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