Nasdaq 15k

By Nicholas Jasinski |  Tuesday, August 24 Milestone. For the first time today, the Nasdaq Composite closed above the only symbolically significant level of 15,000 points. The index is up 19% since March and has returned more than 120% since its March 2020 bear market low. The big technology companies have had a lot to do with that latter statistic. The sextet of Apple, Amazon.com, Microsoft, Alphabet, Facebook, and Tesla make up a whopping 40% of the Nasdaq's market value after the runs they have had since the bottom of the pandemic market last year. All but Amazon have handily outperformed the index in that time. They've helped lead the charge to 15,000 and beyond. But lately, there has been more growth coming from more stocks in the index—as opposed to the giants at the top just dragging everyone else along. A rally with more stocks participating is referred to as having greater breadth. Barron's Ben Levisohn wrote today: That the index can hit a new high—and cross 15,000—without Big Tech having to do all the heavy lifting is a good sign for the overall market, which has had a breadth problem of late. That was not the case on Tuesday, when 313 of the S&P 500’s stocks traded higher, even though the index finished up just 0.1%. Better breadth, if it continues, would go a long way toward alleviating some of the concerns about the stock market’s recent strength...But it does need to continue. 'Note in particular, how new lows have actually exceeded new highs recently,' Ned Davis Research’s Ned Davis writes of the Nasdaq. 'This is a warning, even as the [overall] Nasdaq made new highs.' Consider us warned—even as we celebrate Nasdaq 15,000. Not to be outdone, the S&P 500 likewise set a record high close today, up a bit more than 0.1%. The Dow Jones Industrial Average also notched a 0.1% gain. S&P 500 energy stocks were the best performers in the index today, up 1.7% after a 3.8% jump on Monday. A rebound in the ever-volatile oil price was behind the back-to-back gains. More on that below.

 

DJIA: +0.09% to 35,366.26 S&P 500: +0.15% to 4,486.23 Nasdaq: +0.52% to 15,019.80 The Hot Stock: Best Buy +8.3% The Biggest Loser: Seagate Technology Holdings -6.1% Best Sector: Energy +1.7% Worst Sector: Consumer Staples -0.8%