Stocks rose Monday, but with a different slightly complexion to the market by midday.
The S&P 500 gained 0.8% by midday, getting some help from the tech-heavy Nasdaq, up 1.5%. The 10-Year Treasury yield rose to 0.56%. Yield rise when prices fall. Contrary to morning trading, some cyclical sectors were rising.
As for tech, even after explosive gains for Apple (AAPL) - Get Apple Inc. (AAPL) Report, Amazon (AMZN) - Get Amazon.com, Inc. Report and Facebook (FB) - Get Facebook, Inc. Class A Report Friday — Thursday’s earnings gave investors more than a little affirmation on the outlook for tech — the NYSE FANG index rose 1.6% Monday.
But cyclicals were largely strong as well. S&P 500 industrials were up 0.8% after the ISM Non-Manufacturing Index showed a better-than-expected reading for the month of July, coming in at a tick above 54, against economists estimates of a tick able 53. Any reading above 50 represents year-over-year growth.
In June the reading was 52. This data support the narrative that the economy may be recovery quickly, although consumer-felted data tell a different story for now. Industrials have largely been posting sold second quarter earnings reports. Consumer discretionary and oil stocks were down Monday.
Also aiding this narrative on a more global scale was China’s better-than-expected July manufacturing reading, coming in at above 50 as well. This is a positive read for American companies with supply chains linked to China.
Upcoming for the U.S, market is more earnings reports from major companies across sectors this week.
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