There was a better feel to equity markets yesterday. After Friday’s sell-off, the S&P 500 rallied by 1.16%, the Nasdaq 100 put on 1.3% and the Dow Jones gained 1.2%.
All 11 S&P 500 sectors finished up on the day, although the relative weakness in communication services didn’t go unnoticed. That underperformance can be laid at the door of Alphabet, which fell by 1.7% on news of an EU antitrust inquiry into the online advertising market, which is dominated by Google.
Among stocks that were moving higher, Super Micro Computer rebounded by just over 6%, and United Airlines took off, climbing by 5.96%. Rivals Delta and American Airlines also jumped by 3.9%. Ulta Beauty, which Warren Buffet has a growing interest in, added 3.8%, while Nvidia added 3.54% on the day. Indeed, the PHLX Semiconductor index was the best performer among major sector indices on Monday, adding 2.15%, though it has plenty to do to retest its mid-summer peaks.
In Europe, Deutsche Bank rallied by 2.47%. Building materials group Saint-Gobain added 2.4% and is now up by almost 34% over the last year. However, that performance is well behind the market leaders, UniCredit, Deutsche Bank and Intesa Sanpaolo, which are up by 73.48%, 52.79% and 50.26% respectively, over 52 weeks.
Adidas fell by 3.04% and Kering by 2.52%. Barclays released a report on the luxury goods sector yesterday, with the analysts' findings negative. Burberry fell by 4.86% on the broker downgrade. UK gaming names were better on the day after Entain gained 5.29%, dragging rival Flutter up 3.77%.
Crude oil traded higher again this morning, with WTI up by 0.87% and Brent by 0.63%. Gold is 0.69% higher, US 10-year T-bonds are yielding 3.702%, down 0.21% over the last week, and the US dollar index is up by 0.41% at 101.604.
Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
