The market didn’t reverse or fade today. The Standard & Poor’s 500 stock index hit 2656 by 10:30 and then, despite a dip that took 20 points off the index around 12:30 and a lot of up and downs that ultimately went nowhere, managed to close at 2656 for the day. That was a gain of 1.67% for the day and near the top that Monday’s market hit before its end of the day reversal. The Dow Jones Industrial Average finished up 1.79%; the NASDAQ Composite was higher by 2.07%.
Technology did lead the market higher with Nvidia (NVDA) up 5.80%, Applied Materials (AMAT) ahead 3.36%, and Netflix (NFLX) gaining 2.81%. The Technology Select Sector SPDR (XLK) rose 2.46% on the day
But the big commodities and energy stocks most exposed to a slow down in the global economy were responsible for a significant part of the gain. Helmerich & Payne (HP) gained 5.63%. Vale (VALE) was ahead 4.80%. Pioneer Natural Resources (PXD) increased 5.30%. And Schlumberger (SLB) climbed 3.81%. The Energy Select Sector SPDR (XLE) closed up 3.63% on the day.
It was a day for risk on buying–even in the recently battered biotech sector. There Incyte (INCY) tacked on 4.22% as the stock regained a bit of last week loss on the failure of trials with Merck’s (MRCK) Keytruda. Acadia Pharmaceuticals (ACAD) rose 7.52%. Sangamo Therapeutics (SGMO), a star of last year’s biotech gains, picked up 5.90%.
As much as I hate to rain on anyone’s parade–especially because I own such big winners today as Helmerich & Payne, Applied Materials, Nvidia, and Pioneer Natural Resources in my portfolios–I have reservations about exactly how positive the trade news from China was this morning. That news did ignite the rally. I’m going to discuss that news in a little more depth in my next post.