Rebound in energy, industrial stocks lift Wall Street

Benchmark US indices closed higher on Monday, June 21, after the Dow Jones Industrial Average jumped 580 points as energy and industrial stocks rallied sharply amid a strong economic rebound.

The S&P 500 was up 1.40% to 4,224.79. The Dow Jones rose 1.76% to 33,876.97. The NASDAQ Composite gained 0.79% to 14,141.48, and the small-cap Russell 2000 was up 2.16% to 2,286.09.

Monday’s strong show followed a lackluster close in the previous session when stocks suffered broad losses. It was a record close for Dow Jones since the past three months, lifted by energy, industrial, and energy stocks, in a sign of growing investors’ optimism in the economy as the performance of these stocks is closely tied to the economic recovery.

Nine of the 11 critical segments of the S&P 500 traded higher on Monday. Last week, the stocks retreated after the central bank officials discussed plans to increase the interest rates in the second half of 2023 to curb inflation. Utility, energy, and financial stocks had lost the most.

However, markets appeared to have set aside the inflation worries, for now, showing confidence that a strong recovery may offset the impact from price rise, which typically affects the profit margins because of the rising input costs of production.

In the corporate news, J.P. Morgan Asset Management company has acquired the Portland-based forests resources investment firm Campbell Global as it sets its eyes on a commanding position in the booming carbon offset market. Campbell manages vast timberland worth about US$5.3 billion.

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Videogame retailer GameStop Corp. (GME) named Matt Furlong as its new CEO on Monday. He replaces George Sherman in the role. The stock was down over 6% at the market close.

Shares of Moderna Inc. jumped 4.86% after the drugmaker announced plans to add two new production assembly lines at its Polaroid plant, where Covid-19 vaccines are manufactured.

The financial stocks were among the top movers in Monday’s session. Berkshire Hathaway Inc. (BRK-B) rose 1.05%, Visa Inc. (V) gained 1.70%, and JPMorgan Chase & Co. (JPM) and Bank of America Corporation grew 1.46% and 2.32%, respectively. Mastercard Incorporated (MA) advanced 1.55%.

In the industrial segment, United Parcel Service, Inc. (UPS) gained 2.78%, and Honeywell International Inc. grew by 2.02%. Boeing Co (BA) and Caterpillar Inc. (CAT) rose 3.11% and 2.13%, respectively. General Electric Co (GE) gained 3.13%, and 3M company (MMM) advanced 2.02%.

In the technology sector, Apple Inc. (AAPL) added 1.19%, and Microsoft Corp. (MSFT) gained 1.01%. Nvidia Corporation (NVDA) declined 2.01%, Taiwan Semiconductor Manufacturing Company Limited (TSM) shed 1.23%, and ASML Holdings NV (ASML) advanced 1.45%.

In the crypto world, Bitcoin (BTC) nosedived over 8% after China deepened a crackdown on crypto exchanges and miners over the weekend. In the latest warning, Chinese officials have ordered banks to desist from crypto transactions, which they claim could disrupt the financial order. Crypto exchange Coinbase Global, Inc. (COIN) declined 3.17%, and Ethereum (ETH) plummeted sharply by 11.48%.

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Top Gainers

Top performers on S&P 500 included APA Corp (US) (7.31%), Hess Corp (7.17%), EOG Resources Inc (7.16%), Marathon Oil Corp (6.92%). On NASDAQ, top performers were Torchlight Energy Resources Inc (58.21%), Raven Industries Inc (49.28%), Moxian Inc (46.82%), Alset Ehome International Inc (24.64%). On Dow Jones, American Express Co (4.25%), Boeing Co (3.34%), Chevron Corp (2.93%), Travelers Companies Inc (2.69%) were the leaders.

Top Losers

Top laggards on S&P 500 included Xilinx Inc (-3.33%), Advanced Micro Devices Inc (-2.43%), Biogen Inc (-1.94%), Organon & Co (-1.90%). On NASDAQ, Code Chain New Continent Ltd (-20.66%), Greenbox Pos (-18.96%), Biophytis SA (-17.41%), Intec Pharma Ltd (-16.94%). On Dow Jones, Merck & Co Inc (0.18%), Intel Corp (0.36%), Amgen Inc (0.65%), Salesforce.Com Inc (0.70%) were the laggards.

Volume Movers

Top volume movers were Apple Inc (21.78M), AT&T Inc (12.32M), Bank of America Corp (11.27M), Ford Motor Co (9.75M), Citigroup Inc (9.01M), Advanced Micro Devices Inc (8.60M), General Electric Co (8.49M), Torchlight Energy Resources Inc (51.45M), ContextLogic Inc (43.24M), Sundial Growers Inc (14.35M), Alset Ehome International Inc (10.58M), Microsoft Corp (8.47M).

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Futures & Commodities

Gold futures were up 0.82% to US$1,783.45 per ounce. Silver slightly increased 0.08% to US$25.990 per ounce, while copper rose 0.49% to US$4.1772.

Brent oil remained same at US$74.88 per barrel and WTI crude gains 2.48% to US$73.06.

Bond Market

The 30-year Treasury bond yields were up 4.16% to 2.112, while the 10-year bond yields increased 2.90% to 1.492.

US Dollar Futures Index decreased 0.38% to US$91.855.