ECONOMIC SILUET: Dow stages 549-point comeback | Bezos on sales of Blue Origin space flights

Selasa, 20 Juli 2021

Dow stages 549-point comeback | Bezos on sales of Blue Origin space flights | More volatility ahead for stocks?

TUE, JUL 20, 2021

EVENING BRIEF

AS OF TUE, JUL 20, 2021 • 04:37 ET

DJIA		34511.99
		+1.62%	+549.95

S&P 500		4323.06
		+1.52%	+64.57

NASDAQ		14498.88
		+1.57%	+223.89

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	146.15	+3.70	+2.60%
HON	229.66	+9.00	+4.08%
MSFT	279.32	+2.31	+0.83%

S&P 500
NAME	LAST	CHG	%CHG
AAPL	146.15	+3.70	+2.60%
ALXN	182.50	+3.05	+1.70%
GE	12.70	+0.70	+5.83%

NASDAQ
NAME	LAST	CHG	%CHG
MRNA	307.33	-6.26	-2.00%
AAPL	146.15	+3.70	+2.60%
ALXN	182.50	+3.05	+1.70%

EDITOR'S NOTE

U.S. stocks bounced back Tuesday after a sharp sell-off on Monday sunk the Dow Jones Industrial Average to its worst day since last October.

The Dow rose 549.95 points to 34,511.99, or 1.6%, following its 725-point decline Monday. It was the biggest jump for the Dow in more than a month. The S&P 500 climbed 1.5%, and the Nasdaq Composite added 1.5%.

Cyclical stocks tied to the economic recovery that led Monday's decline turned around on Tuesday. Energy, financial and travel-related stocks rallied as investors bought the dip. Diamondback Energy rose 2.3%, and Goldman Sachs gained 2.8%. Royal Caribbean added 7.7%, and American Airlines jumped 8.3%.

"[A]fter getting crushed on Monday (and really for the last 1.5 months), cyclicals are rebounding," Vital Knowledge's Adam Crisafulli said in a note. "Whether this is simply a 'dead cat' spike or the start of something broader remains to be seen."

Apple shares also rose 2.6% to close at $146.15 on Tuesday. The stock had the greatest positive impact on both the S&P 500 and the Nasdaq Composite. UBS hiked its price target for Apple's stock Tuesday morning to $166, forecasting strong iPhone sales.

Investors also kept a close eye on the 10-year Treasury yield. After climbing above 1.7% in March, the key Treasury yield plunged as low as 1.128% on Monday to its lowest point in five months.

As the yield on the benchmark 10-year note crept up toward the 1.2% level on Tuesday, the stock market rally accelerated.

"The underlying driving force behind the move is the collective belief that if the delta variant has created enough uncertainty to bring 10-year yields as low as 1.12%, then it will be more than sufficient to compel [Federal Reserve Chairman Jerome] Powell to strike a more dovish tone at next week's press conference," BMO Capital Markets' Ian Lyngen said in a note.