LIVE MARKETS U.S.-Wall Street mixed: S&P, Nasdaq gain, Boeing weighs on Dow
S&P, Nasdaq up modestly; Dow down
June consumer confidence beats estimate; June Chicago PMI misses
Tech sector leads gainers; energy biggest loser
Dollar up; crude, gold dip; US 10-yr yield ~0.62%
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WALL STREET MIXED: S&P, NASDAQ GAIN, BOEING WEIGHS ON DOW (1000 EDT/1400 GMT)
Wall Street started the last day of the month, quarter and first half of 2020 slightly higher, with the S&P 500 (.SPX) and the Nasdaq making modest gains as investors weighed a resurgence of the coronavirus against hoped-for additional stimulus.
Boeing Co (BA.N) , which gave the blue-chip Dow its biggest boost on Monday, today is proving to be its heaviest weight, pulling the index nominally lower after Norwegian Air (NWC.OL) and Hong Kong’s BOC Aviation (2588.HK) canceled orders for 737 MAX planes, the day after the grounded aircraft began certification test flights.
Record surges in COVID-19 cases in California and Texas have fueled fears of another round of lockdowns, and in fact some states have curbed their re-opening plans.
Rebounding sharply from a late-March plunge driven by abrupt economic lockdowns to contain the pandemic, the S&P 500 and the Dow (.DJI) are set to log their biggest quarterly percentage increases since the end of 1998, and the Nasdaq (.IXIC) is on track to post its biggest gain since the end of 2001.
Here’s your opening snapshot:
S&P 500: GAUGING THE TREND (0915 EDT/1315 GMT)
After ramping higher in the early part of the month, the S&P 500 (.SPX) has struggled. Nevertheless, trend-following traders are watching closely as the broad-market average’s 50-day moving average (DMA) is nearing the 200-DMA. A bullish cross by these intermediate and longer-term moving averages has the potential to add to positive sentiment.
With just one trading day left in June, the S&P 500 finds itself just slightly above the flat line for the month, up just 0.3%. This after declining more than 5% just since its June 8 close.
Meanwhile, despite swings, the spread between the S&P’s rising 50-DMA and the 200-DMA, is now only about minus 37 points, or just 1.2% of Monday’s SPX closing value.
Of note, the last bullish, or golden, cross of these two moving averages occurred in early April 2019. Although at that time, the near-term action did prove messy, the SPX ultimately trended higher into early 2020.
That said, the bearish, or dead, cross that occurred this past March failed miserably. Indeed, the speed and severity of the SPX’s collapse and reversal proved too volatile for this measure to depict the underlying trend.
In any event, with the market watching these two moving averages converge, the SPX’s ability to continue to hold support at the April 29 high (2,954.86) may grow in its significance. Breaking this level would put the SPX below both its 50 and 200-DMAs, as well as its June trough.
(Terence Gabriel is a Reuters market analyst. The views expressed are his own)