US Stock Market Overview – Stocks Rally Led by Cyclicals; The Dow Industrials OutperformsThe Russell rallied 3%
US stocks moved higher on Monday, as fear over rising COVID cases subsided briefly. The Dow was the best performing of the major averages, led higher by Boeing. NYSE advancing volume was more than 5-times declining volume. The strong stimulus provided by the Fed and the US government seemed to help stocks rally. All sectors in the S&P 500 index were higher on Monday, led by cyclicals, the energy was the worst-performing sector despite a surge in oil and natural gas prices. Natural gas prices rallied more than 11% on Monday, while oil was up approximately 2.5%. Pending home sales in the US which are contracts to close at a date in the future rose 44% in May which was a one month record. The VIX volatility index eased and is currently hovering near 33%.
Facebook on the Ropes
There are a growing number of companies who have pause their advertising spending on social networks. Large companies that have little political interest have stalled their advertising including giants like Coca Cola and Pepsi. Despite this negative outlook for advertising Facebook shares continued to rise climbing nearly 2% on Monday.
Pending Home Sales Rise to Record Highs
New future home contracts known as Pending home sales surged 44.3% in May compared with April, according to the National Association of Realtors. That is the largest one-month jump in the history of the survey. It beat expectations of a 15% gain. Sales were still 5.1% lower compared with May 2019, however. Pending sales measure signed contracts on existing homes.