The Nasdaq composite, which is nearly 50% comprised of tech stocks, climbed 0.2%. The yield on the 10-year Treasury note fell 7 basis points to 1.36%, which appeared to be helping techs. Amazon.com, one of the largest stocks in the Nasdaq and S&P 500, broke out past the 3,524.96 buy point of a cup with handle base. Volume was heavy.
The technology sector was alone in posting gains. Technology Select Sector SPDR ETF (XLK) climbed 0.2%. Communications Services Select Sector SPDR (XLC), which is largely an internet index, fell 0.2%.
U.S. Stock Market Today Overview
Last Update: 10:22 AM ET 7/6/2021
Aside from tech, the rest of the S&P sector indexes were lower. Energy Select Sector SPDR ETF (XLE) was down 1.7%, the weakest S&P sectors.
The S&P 500 added its eighth consecutive new high, but only briefly. The index backed off 0.4%, threatening to snap a seven-day win streak. The Dow Jones Industrial Average fell 0.8%. The Russell 2000 slid more than 1%.
American Express (AXP) rose 1.4% to a new high after Goldman Sachs upgraded the firm to buy from neutral with a price target of 225. Apple (AAPL) rose nearly 2% after JPMorgan Chase raised its price target to 170 from 165 and maintained an overweight rating. Apple stock traded around 141 and is nearly out of buy range from a 13.17 buy point. Notably, volume is running well above average today, something lacking since Apple broke out of a cup without handle last week.
Oil prices shot up after the OPEC+ group called off a meeting scheduled for Monday as member nations failed to reach an agreement on raising oil production. The United Arab Emirates refused to back a Saudi plan to boost output, The Wall Street Journal reported. The deal would have added millions of barrels a day to ease a steady rise in oil prices. Yet U.S. crude this morning fell to $74.58 a barrel, down 3% from Friday’s close at $76.95. Brent crude rose 0.8% to $77.77 a barrel.
U.S. Stocks Ease As Oil Prices Also Fall
So why are oil prices not reacting to the news? Some analysts say that other times when oil producers dissent on production caps, crude tends to decline. Some producers raise output on their own and ignore quotas. Some pointed to last year, when Saudi Arabia sharply cut its official selling prices to punish counties that did not go along with production goals.
U.S. gasoline futures for August delivery rose 0.6% to $2.3128 a gallon on a combination of higher oil prices and rising demand for summer travel. Motorists now face the highest gas prices in nearly seven years. The U.S. average price for a gallon of regular was $3.12 as of Thursday.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
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