Today in the market – Mon 06/08

Trading lower in the open as investors digested the intensified trade spat between the U.S. and China over the weekend, the S&P 500 index fell back by recording today’s low of 2835.98. Energy stocks gained steam amid rising oil prices, and Berkshire Hathaway Inc.’s solid earnings boosted Financial’s stocks. The team was stable and trading at a very tight range after reaching today’s highest at 2853.29, the index closed near session highs of 2850.40 (last seen on January 26, 2018), up 10.05 points and with a modest 0.35% increase over the previous session.

With the second quarter earnings season at the end, the index closed higher for the third straight session as investors appear to have overcome the trade trend and maintained their focus on robust business performance. Led by consumer discretionary and technological stocks, nine out of the eleven primary sectors ended the day’s session higher. The index is now 0.79% away from the time stop of 2872.87.

In an attempt to reassure investors about intensifying trade tensions, Chinese state media released a statement over the weekend that the Trump administration’s trade policy is “ineffective extortion” and the country is now ready for a “protracted war” on trade. In his response, President Trump tweeted Sunday that his tariffs “work big time.” Prices for commodity-sensitive commodities such as copper and metal were sent lower due to declining concerns in global demand.

With a gain of 0.67%, the consumer discretionary sector was the best performing sector with more retailers and media companies increasing with strong earnings. Dish Network Corp., MSM Resorts International and WYNN Resorts Ltd were the biggest winners in the sector with 5.85%, 2.80% and 2.52% respectively. Restrictive gains were a sharp decline of 14.34% in Newell Brands Inc., after the consumer goods business reported weaker future guidance, citing rising cost concerns due to recent trading prices.

FANG stocks extended their last week’s gains, increasing the wider tech sector by 0.59%. Advanced Micro Devices Inc. was among the biggest winners and rose 5.88% in introducing new second generation processors. Facebook Inc. also rose 4.45% on news that the social media company is in talks with several major banks about offering financial products to customers in an effort to increase user engagement.

The energy and financial sectors led to gains in the early session and ended higher by 0.34% and 0.43% respectively. Oil prices were higher in reports of declining oil production in Saudi Arabia. The Trump administration’s renewed sanctions on Iran in an effort to curb Iran’s nuclear program pushed oil prices higher. Berkshire Hathaway Inc. gained 2.91% to lead the broader financial sector higher after reporting better-than-expected second quarter results. Treasury yields remained relatively unchanged as investors look forward to the release of critical financial data this week.

Defensive sectors, healthcare, industry and materials extend their last session gains by 0.14%, 0.12% and 0.10% respectively. On the flip side, the real estate and telecommunications sectors were the only rejectors in today’s session, down 0.24% and 0.09%.