Despite the indices giving solid showing, we are seeing the stock trading somehow mixed. The market-cap weighted S&P 500 extended its record high, climbing 0.8%, and the equal-weighted S&P 500 registered a 0.7% gain.
Decliners had a slim lead over advancers at both the NYSE and the Nasdaq. The underlying negative bias, driven by consolidation activity, was not enough to offset buying activity in some mega cap stocks.
Apple and Microsoft Provide Support To Broader Market
Outsized gains in Apple (AAPL) with +2.0% and Microsoft (MSFT) with +1.3%) provided some support to the broader market.
These two stocks are among the three with a market cap above $3 trillion. The Vanguard Mega Cap Growth ETF (MGK) was up 0.9%.
MGK have been trading above the 21-day MA period comfortably. This is an indication we could continue to see strong performance from mega stocks to lift the market.
Semiconductor Performance Boost Info Tech Sector
$Broadcom(AVGO)$ was up +5.4%, was another top performer today, along with other semiconductor-related names. The PHLX Semiconductor Index (SOX) jumped 1.6%.
Strength in the mega cap and semiconductor spaces boosted the S&P 500 information technology (+1.18%) and consumer discretionary (+1.43%) sectors to the top of the leaderboard today. These sectors combined comprise 43% of the index.
Yield Jump Show Rate-Sensitive Sectors Lagged
The rate-sensitive real estate (-0.8%) and utilities (-0.5%) sectors were the top laggards, clipped by a jump in yields. The 10-yr note yield closed seven basis points higher at 4.27% and the 2-yr note yield settled eight basis points higher at 4.76%.
Economic Data
On Monday (17 June), we saw the NY Fed Empire State Manufacturing Index, which rose to -6.0 in June the consensus was -13.0. It was an improvement from -15.6 in May.
Stocks To Watch
Elon Musk revealed on social media that $Tesla Motors(TSLA)$ is working on Master Plan 4, which he described as "epic." Previous master plans have been pivotal in shaping Tesla's long-term strategy, including the development of the Roadster, Model S/X, Model 3/Y, and the acquisition of SolarCity. This announcement continues to fuel the bullish outlook on Tesla's future.
Shares of Tesla (TSLA) rose 5.45% after the company received approval to test its advanced driver-assistance system on some Shanghai streets. Tesla also filed a complaint against Matthews International for allegedly stealing trade secrets related to its battery production technology.
From the technicals, we are seeing that Tesla have began to show signs of upwards movement in both MACD and KDJ. There is a possible MACD crossover soon and KDJ have formed a potential BUY signal.
Mustang Bio (MBIO) saw its shares skyrocket by 580% after reporting positive data from a Phase 1/2 trial for its CAR-T cell therapy MB-106. The treatment showed a 90% overall response rate in patients with Waldenstrom macroglobulinemia, a type of non-Hodgkin lymphoma. The company highlighted the feasibility of outpatient administration and noted the lack of FDA-approved CAR-T treatments for this condition.
Nvidia (NVDA) convinced the U.S. Supreme Court to hear an argument to dismiss a six-year-old securities fraud lawsuit. The suit, led by a Sweden-based investment firm, alleges Nvidia misled investors about the volume of sales related to cryptocurrency mining. The case will be heard in the next Supreme Court term.
Palantir Technologies (PLTR) received a Buy rating and a $29 target price from Argus. The company, known for its software platforms aiding counterterrorism, has expanded into the commercial sector. Analysts expect its commercial business, particularly in the U.S., to drive future growth.
You may refer to my earlier article on Palantir: Palantir Next Level To Clear -> Above $29?
Summary
I believe that we should still be seeing the strength of mega caps stock helping to push the indices despite negative bias, the buying sentiment should not be dampened.
There might be some consolidation in some sectors, for example rate-sensitive sectors like real estate and utilities.
Appreciate if you could share your thoughts in the comment section whether you think we would be seeing mixed market performance with indices clearing new highs?
@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
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