Markets move higher despite growing concerns over delta variant

CNBC's Scott Wapner breaks down Tuesday's market action, with Stephanie Link, Josh Brown, Pete Najarian and Michael Farr. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

U.S. stocks moved higher on Tuesday and the S&P 500 set a new record high as broad market strength outweighed the travel names held back by Covid fears.

The Dow Jones Industrial Average jumped 278.24 points, or 0.8%, to close at 35,116.40 after briefly falling more than 100 points earlier in the session. The S&P 500 gained 0.8% to notch a new all-time closing high of 4,423.15, while the Nasdaq Composite added about 0.6% to settle at 14,761.29. The Dow is within 0.5% of a record.

Tuesday’s move for stocks served as something of a mirror image to Monday’s market action, which saw a late-day slump drag the Dow and S&P 500 into the red while the tech-heavy Nasdaq held on to a meager gain.

That sort of day-to-day volatility is to be expected after the strong run for stocks since spring of last year, said Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research.

“Everyone knows that valuations are fairly high. The S&P 500 is up nearly 100% since the March low of last year. … So the market tends to be a little skittish to any kind of news right now,” Frederick said. “My outlook for most of Q3 has been that I’ve been expecting the market to be mostly sideways with slightly elevated volatility.”

The 10-year Treasury yield stabilized on Tuesday after falling back to near five-month lows on Monday. As yields rebounded from their decline midday back to the unchanged mark, stocks rose.

The Dow was bolstered by stocks tied to the economic recovery, including banks and industrial companies like Caterpillar and 3M. Health care stocks such as Amgen and Johnson & Johnson outperformed as well. In the technology sector, Apple and IBM rose nearly 1.3% and 1.9%, respectively.

On the other hand, shares of companies that would be hit hardest by potential new health restrictions, including airlines and cruise lines, fell on Tuesday, limiting upside for the market.

The spread of the delta coronavirus variant continued to cloud the outlook for the economy. The seven-day average of daily coronavirus cases in the U.S. reached 72,790 on Friday, surpassing the peak seen last summer when the nation didn’t have an authorized Covid-19 vaccine, according to data compiled by the Centers for Disease Control and Prevention.

However, on the positive side, the U.S. reached the 70% Covid vaccine milestone, according to the CDC.

“The delta variant of the virus is now rapidly spreading in the U.S. and a modest pullback in activity can’t be ruled out,” Solita Marcelli, CIO Americas at UBS, said in a note. “But any potential slowdown should be somewhat muted.”

Oil stocks moved higher were another source of strength, even as the price of West Texas Intermediate crude drifted down to about $70 per barrel. Adam Karpf, a managing director at CIBC Private Wealth focused on energy, said the move in oil was due more to trading patterns than the delta variant taking a major bite out of global growth.

“Assuming that this will be kept under control ... we’ve had several months and weeks of a strong crude oil market and energy industry, and this is a breather,” Karpf said.

One notable outperformer on Tuesday was retail brokerage Robinhood, which closed about 24% higher and pushed well above its first price from its initial public offering last week.

Meanwhile, the second-quarter earnings season continues with Under Armour shares rising 7.5% after the company beat estimates on the top and bottom lines. However, Clorox’s stock fell more than 9% after a disappointing report.

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast

Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-credit-cards/

#CNBC
#CNBCTV

Видео Markets move higher despite growing concerns over delta variant канала CNBC Television