Stocks End Mixed, Techs Lead
4:08 pm Monday, June 14th, 2021
U.S. stocks were mostly lower and the rally in bond markets lost steam as investors marked time before a key Federal Reserve meeting later in the week. Oil was little changed after touching the highest in more than two years.
Appropriately, the S&P 500 information technology sector (+0.4%) was sitting atop the leaderboard, thanks to Apple (AAPL), Adobe (ADBE), and Salesforce (CRM). The communication services sector (+0.1%) joins the tech sector higher amid support from Facebook (FB).
On the downside, the materials (-1.4%), financials (-1.2%), and industrials (-0.8%) sectors are underperforming in negative territory. JPMorgan Chase (JPM) is dragging on the performance of the financials sector after CEO Jamie Dimon said he expects trading revenue and net interest income to be slightly lower than expected.
Interestingly, technology/growth stocks are pulling ahead, and bank stocks are lagging, despite an uptick in longer-dated Treasury yields. The 10-yr yield is currently up four basis points to 1.50% after trading at 1.45% overnight. The U.S. Dollar Index is down 0.1% to 90.48.
There really aren’t any specific macro news driving the market action today. Potential market-moving events this week will include the May Retail Sales report on Tuesday and the FOMC’s policy statement on Wednesday.
The hedging premium has increased modestly in front of these events. The CBOE Volatility Index is up 7.6% to 16.84 but remains at relatively low levels.
Investors did not receive any notable economic data today.
