The stock market closed mainly higher Tuesday, after overcoming a morning trough. Small caps led, extending their rebound from a mid-May low.
It wasn’t so clear why indexes turned lower in morning trade. The stock market rebounded into afternoon trading but faded somewhat in the final hour.
The S&P 500 edged up less than 0.1% and remains in a slog. Except for Friday’s 0.9% jump, the index hasn’t moved more than 0.4% since May 24. Yet, the S&P is still near all-time highs.
Nasdaq Rebounds From 50-Day
The Nasdaq composite climbed 0.3% and is rebounding from a dip to the converged 50-day and 21-day moving averages.
Small caps outperformed, as the Russell 2000 added 1.1%. The index is now less than 1% from a record high. The S&P MidCap 400 index climbed 0.9%.
U.S. Stock Market Today Overview
Last Update: 4:10 PM ET 6/8/2021
The Dow Jones Industrial Average fell 0.1%. The notable Dow component Tuesday was IBM (IBM), which broke out of a flat base with a 148.84 buy point. Volume was weak, however, and the company’s fundamentals remain in a slump.
Volume rose on the Nasdaq and NYSE from Monday’s stock market totals, according to early data. Trade was above average on the Nasdaq for the fourth time in the past five sessions. That could indicate a change in stock market trading activity, which has trended below average for nearly three months. So far, June has seen a rise in NYSE volume too.
Leading growth stocks lagged in the stock market. Innovator IBD 50 ETF (FFTY) closed nearly 0.2% lower. High relative-strength stocks Up Fintech (TIGR) and Celsius Holdings (CELH) sold off, costing the IBD 50 some performance points. They offset strong gains by backup power generator company Generac (GNRC) and auto software maker Cerence (CRNC). Generac was added to IBD Leaderboard Tuesday.
Consumer and energy performed better than other stock market sectors. The S&P Retail ETF (XRT) jumped 1.8%, its best day in almost a month, and the Consumer Discretionary Select Sector SPDR ETF (XLY) rose 0.9%. Solar, drilling, oil equipment and integrated oil companies were some of the rising energy groups.
Rent-A-Center (RCII) broke out of a saucer-like base with a 64.89 buy point, according to MarketSmith pattern recognition. Volume was well above average, a positive sign.
Treasury yields fell to the lowest level in a month. The yield on the 10-year Treasury note dropped 4 basis points to 1.53%. The Financial Select Sector SPDR ETF (XLF) was off 0.2%.
Yields were little changed after CNBC reported that the Federal Reserve could be on track to begin asset reductions later this year or early next year. The so-called taper would be one way for the Fed to scale back stimulus before it raises interest rates.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
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