‘Reopening’ stocks give S&P 500, Dow strong footing, tech names lag – Reuters

SourceReuters
SectorFinancial Markets
CountryGulf

The S&P 500 and the Dow indexes ended higher on Monday amid a largely upbeat earnings season, while the Nasdaq came under pressure from declines in some high-flying growth stocks, as the rotation into cyclical and “economy reopening” stocks continued.

Economy-sensitive cyclical S&P 500 sectors such as consumer staples (.SPLRSC), energy (.SPNY), and materials (.SPLRCM) outperformed sectors housing growth stocks, including technology (.SPLRCM) and communication services, (.SPLRCL).

The largest percentage gainer on the S&P 500 was oil field services firm Baker Hughes (BKR.N), which rose 8%. Apparel retailers also finished strong, with Gap Inc (GPS.N) shares jumping 7.1% and Foot Locker Inc (FL.N) up 4.1%.

“All of those names that are having outsized gain today are as a result of economic reopening optimism, and people getting out of the house spending money on things,” said Michael James, managing director of equity trading at Wedbush Securities.

The Dow Jones Industrial Average (.DJI) rose 0.7% to close at 34,113.23 points, while the S&P 500 (.SPX) gained...read more...