Sector Investing

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 32815.23 -176.89 (-0.54%)
Nasdaq 11994.45 -86.93 (-0.72%)
SP 500 4101.23 -30.92 (-0.75%)
10-yr Note -22/32 2.931
NYSE Adv 1274 Dec 1917 Vol 997.2 mln
Nasdaq Adv 1544 Dec 2609 Vol 4.65 bln

Industry Watch
Strong: Energy, Information Technology, Utilities
Weak: Real Estate, Financials, Materials, Consumer Staples, Health Care

Moving the Market

-- Salesforce, Inc. beat earnings and raised FY23 guidance

-- ISM Manufacturing Index increased in May but shows indications of ongoing supply chain problems and pricing pressures

-- Jump in Treasury yields on rate hike concerns

-- Fed's Beige Book reports moderating growth

Tuesday lows revisited
01-Jun-22 16:15 ET
Dow -176.89 at 32815.23, Nasdaq -86.93 at 11994.45, S&P -30.92 at 4101.23

[BRIEFING.COM] The stock market ended Wednesday on a weak note with the major averages finishing near yesterday's lows. The S&P 500 lost 0.8% while the Russell 2000 (-0.5%) finished a bit ahead despite lagging in morning trade.

Early action saw a continuation of yesterday's selling with some recent top performers fueling the retreat. The financials sector (-1.7%) underperformed throughout the day after rallying off a 13-month low at the end of May. Today, the sector was pressured by comments from JPMorgan Chase (JPM 129.91, -2.32, -1.8%) CEO Dimon, who warned about an approaching "economic hurricane." Shares of JPM surrendered yesterday's gain but finished above their low after bouncing off their 50-day moving average (128.34).

The broader market enjoyed an afternoon recovery that returned the S&P 500 to its unchanged level, but renewed selling pressure appeared in the afternoon.

Elsewhere among cyclical sectors, industrials (-0.6%) and the consumer discretionary space (-0.8%) finished near the S&P 500 while the technology sector (-0.3%) ended just below its flat line after reclaiming a chunk of its opening loss. The sector owed its outperformance to relative strength in top components Apple (AAPL 148.71, -0.13, -0.1%) and Microsoft (MSFT 272.42, +0.55, +0.2%), but they too faced some late pressure. Salesforce (CRM 176.07, +15.83, +9.9%) and HP (HPQ 40.34, +1.50, +3.9%) represented pockets of relative strength throughout the day after both companies reported better than expected quarterly results. Chipmakers failed to keep pace with the sector, sending the PHLX Semiconductor Index lower by 1.6%.

Health care (-1.4%) and consumer staples (-1.3%) finished near the bottom of the leaderboard due to broad-based losses. Archer-Daniels (ADM 86.67, -4.15, -4.6%) was the worst performer among staple stocks, falling from its best level in nearly four weeks back below its 50-day moving average (90.25).

On the upside, energy (+1.8%) spent the day in the green, building on its gain as the session went on. The sector's continued strength was supported by another uptick in crude oil, which climbed $0.40, or 0.4% to $115.33/bbl. Baker Hughes (BKR 37.41, +1.43, +4.0%) was the top performer in the sector, reclaiming yesterday's entire loss.

Treasuries added to their losses from yesterday with shorter tenors leading the retreat. The 2-yr yield rose 11 bps to 2.65% while the 10-yr yield rose nine basis points to 2.93%.

The Fed released its Beige Book for June, which noted that all Districts reported continued growth with most reporting slight or modest growth while four reported a slowdown. There was some softening in the retail sector and residential real estate due to high prices and high interest rates. Employment expanded modestly or moderately while one District saw a slowdown. Prices continued rising at a strong or robust pace with manufacturers maintaining the bulk of their pricing power.

Reviewing today's economic data:

The May ISM Manufacturing Index increased to 56.1% (Briefing.com consensus 54.9%) from 55.4% in April. A number above 50.0% is indicative of expansion. May marked the 24th consecutive month of expansion in the manufacturing sector, although the May reading was the second lowest since September 2020.
The key takeaway from the report is that manufacturing activity picked up in May despite ongoing supply chain problems and pricing pressures. Still, sentiment regarding demand remained strongly optimistic.
Total construction spending increased 0.2% month-over-month in April (Briefing.com consensus 0.6%) following an upwardly revised 0.3% increase (from 0.1%) in March. Total private construction increased 0.5% month-over-month while total public construction decreased 0.7%. On a year-over-year basis, total construction spending was up 12.3%.
The key takeaway from the report is that, other than residential spending, there wasn't much strength in spending activity in either the private or public sectors.
Job openings decreased to 11.400 mln in April from a revised 11.855 mln (from 11.549 mln) in March.
The IHS Markit Manufacturing PMI fell to 57.0 in the final reading for May from 57.5 in the preliminary reading.
The weekly MBA Mortgage Index fell 2.3% after falling 1.2% during the previous week.

The ADP Employment Change for May (Briefing.com consensus 295,000; prior 247,000) will be reported tomorrow at 8:15 ET, followed by weekly Initial Claims (Briefing.com consensus 210,000; prior 210,000), Continuing Claims (prior 1.346 mln), revised Q1 Productivity (Briefing.com consensus -7.5%; prior -7.5%), and revised Q1 Unit Labor Costs (Briefing.com consensus 11.6%; prior 11.6%) at 8:30 ET, and April Factory Orders (Briefing.com consensus 0.7%; prior 2.2%) at 10:00 ET.

Dow Jones Industrial Average -9.7% YTD
S&P 400 -12.1% YTD
S&P 500 -14.0% YTD
Russell 2000 -17.4% YTD
Nasdaq Composite -23.3% YTD

Preview of tomorrow's economic data
01-Jun-22 15:25 ET
Dow -49.75 at 32942.24, Nasdaq +0.87 at 12082.25, S&P -7.18 at 4124.98

[BRIEFING.COM] Entering the last half hour of trading, the major indices are still off their session lows. The S&P 500 is above the 4,100 level, but currently down 0.2% for the day, while the Nasdaq continues to flirt with positive territory.

Tomorrow's economic lineup features more news on the labor front. Specifically the May ADP Employment Change report and the weekly initial jobless claims report. In addition, the revised Q1 productivity report and April factory orders report will round out the economic calendar.

Incoming economic data is going to be watched closely each and every week for signs of weakening -- or perhaps resilience -- in the face of the Fed's rate hike actions.

Most cyclical sectors have held up reasonably well today, but none, other than the energy sector (+2.4%), have shown any clear cut strength.

Looking at Treasury yields, the 2-yr note yield is up 12 basis points to 2.65% while the 10-yr note yield is up 10 basis points to 2.94%.
Sectors recover some losses
01-Jun-22 15:00 ET
Dow -120.98 at 32871.01, Nasdaq -33.96 at 12047.42, S&P -18.04 at 4114.12

[BRIEFING.COM] Since the release of the Fed's Beige Book, the major indices have managed to pare today's losses some. The tech-heavy Nasdaq Composite, which was flirting with positive territory, is now down 0.3%. The Dow (-0.4%) had tumbled more than 300 points earlier and now is down about 120 points.

Two of the 11 S&P 500 sectors are in the green. The energy sector (+2.0%) has shown strength this whole session. WTI crude oil futures settled today up $0.40, or 0.4%, to $115.33/bbl. Meanwhile, natural gas futures jumped $0.49, or 6.0%, to $8.69/mmbtu.

The other sector in positive territory is the information technology sector (+0.1%).
Beige Book shows economy grew at slight or modest pace, slowed in some Districts
01-Jun-22 14:30 ET
Dow -66.75 at 32925.24, Nasdaq -13.49 at 12067.89, S&P -8.99 at 4123.17

[BRIEFING.COM] Overall, the major averages originally held their levels, but have moved slightly higher in more recent trading following the release of the Fed's May Beige Book; all twelve Federal Reserve Districts have reported continued economic growth since the prior Beige Book period, with a majority indicating slight or modest growth; four Districts indicated moderate growth. Four Districts explicitly noted that the pace of growth had slowed since the prior period.

Other key excerpts from the report included that contacts in most Districts reported ongoing growth in manufacturing. Retail contacts noted some softening as consumers faced higher prices, and residential real estate contacts observed weakness as buyers faced high prices and rising interest rates. Contacts tended to cite labor market difficulties as their greatest challenge, followed by supply chain disruptions.

Eight Districts reported that expectations of future growth among their contacts had diminished; contacts in three Districts specifically expressed concerns about a recession.

What's more, the Fed said most Districts reported that employment rose modestly or moderately in a labor market that all Districts described as tight. Also, most Districts noted that their contacts had reported strong or robust price increases -- especially for input prices.
Gold struggles for direction on Wednesday
01-Jun-22 13:55 ET
Dow -215.73 at 32776.26, Nasdaq -98.69 at 11982.69, S&P -32.08 at 4100.08

[BRIEFING.COM] The major averages still sit decently lower across the board, the tech-heavy Nasdaq Composite (-0.82%) leading the declines.

Gold futures settled $0.30 higher (flat) to $1,848.70/oz holding off on any decided move owing to today's fall in equities and a decent move higher in the dollar.

Meanwhile, the U.S. Dollar Index is up about +0.8% to $102.56.

As a reminder, the Fed's May Beige Book is due out at the top of the hour.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 32991.99 -220.99 (-0.67%)
Nasdaq 12081.38 -49.74 (-0.41%)
SP 500 4132.16 -26.09 (-0.63%)
10-yr Note
NYSE Adv 1093 Dec 2240 Vol 2.2 bln
Nasdaq Adv 1949 Dec 2818 Vol 5.7 bln

Industry Watch
Strong: Communication Services, Consumer Discretionary
Weak: Health Care, Real Estate, Materials, Energy, Industrials, Utilities

Moving the Market

-- Oil prices turn negative after testing $120.00/bbl earlier on EU's agreement to ban 90% of Russian crude imports by the end of the year

-- Fed Governor Waller (FOMC voter) endorses policy rate above neutral rate by end of year

-- Resilience to early selling efforts

Closing Summary
31-May-22 16:05 ET
Dow -220.99 at 32991.99, Nasdaq -49.74 at 12081.38, S&P -26.09 at 4132.16

[BRIEFING.COM] A soft start for the stock market firmed up as the session progressed thanks to the stabilizing influence of the mega-cap stocks and a welcome pullback in crude oil prices, which flirted with $120.00/bbl early in the day before settling the session up just 0.1% at $114.93/bbl.

The pop in oil prices stemmed from a report that EU leaders had agreed to a ban on 90% of Russia's crude imports by the end of the year. That pop in prices stirred concerns about discretionary spending potential and inflation pressures persisting longer than expected. Consequently, there was an early push to do some selling following last week's huge gains.

At their lows of the morning, the Dow, Nasdaq, and S&P 500 were down 1.4%, 1.6%, and 1.3%, respectively. They didn't stay down -- or at least they didn't stay depressed. Instead, they demonstrated some resilience to selling efforts, which itself became a catalyst that attracted renewed buying interest that helped each of the indices edge their way into positive territory.

The upside momentum, however, didn't run abated like it did last week. There was more weakness beneath the surface than met the eye, evidenced by an advance-decline line that favored declining issues by a 2-to-1 margin at the NYSE and by a 7-to-5 margin at the Nasdaq. The relative strength of the mega-cap stocks stood out in the Vanguard Mega-Cap growth ETF (MGK), which slipped 0.3% versus a 0.9% decline for the Invesco S&P 500 Equal Weight ETF (RSP).

Today ultimately turned into a day of consolidation as market participants sat on the idea that there will be some key economic reports later this week, including the May ISM Manufacturing Index on Wednesday and the May Employment Situation Report on Friday.

Also, the trading action was stunted by a lack of market-moving corporate news and rising yields in the Treasury market, which were triggered by the early move in oil prices and a contention from Fed Governor Waller (FOMC voter) that he supports a policy rate above the neutral rate by the end of the year.

The 10-yr note yield settled the day up 10 basis points at 2.84% while the 2-yr note yield jumped eight basis points to 2.54%. The U.S. Dollar Index increased 0.1% to 101.77.

Reviewing today's economic data:

The Conference Board's Consumer Confidence Index dipped to 106.4 in May (Briefing.com consensus 103.7) from an upwardly revised 108.6 (from 107.3) in April. In the same period a year ago, the index stood at 120.0.
The key takeaway from the report is that inflation continues to be top of mind for consumers, which could pose downside risk for the economy if inflation pressures persist and curtail consumers' discretionary spending activity.
The S&P Case-Shiller Home Price Index was up 21.2% year-over-year in March (Briefing.com consensus 20.0%) following an upwardly revised 20.3% (from 20.2%) in February. The FHFA Housing Price Index increased 1.5% month-over-month in March following a downwardly revised 1.9% increase (from 2.1%) in February.
The May Chicago PMI checked in at 60.3 (Briefing.com consensus 55.5) versus 56.4 in April.

Looking ahead, market participants will receive the weekly Mortgage Applications Index, the Final IHS Manufacturing PMI for May, the May ISM Manufacturing Index, the April JOLTS - Job Openings Report, the April Construction Spending Report, and the Fed's Beige Book.

Dow Jones Industrial Average -9.3% YTD
S&P 500 -13.3% YTD
S&P 400 -11.5% YTD
Russell 2000 -16.6% YTD
Nasdaq Composite -22.8% YTD

Looking ahead to economic data
31-May-22 15:30 ET
Dow -117.62 at 33095.36, Nasdaq -8.20 at 12122.92, S&P -13.26 at 4144.99

[BRIEFING.COM] Entering the last half hour of trading for the month, the major indices have turned negative. Note that most of the major indices are in the green month-to-date thanks entirely to the rally we saw last week. The one exception is the Nasdaq, which is still down 1.8% for the month.

Looking ahead, market participants will receive several pieces of economic data tomorrow. The two releases that are apt to draw the most attention are the ISM Manufacturing Index for May and the JOLTS Job Openings report for April. The former is a gauge of manufacturing activity and the latter is a labor market indicator.

In coming months, the JOLTS report will take on added importance as a gauge of the Fed's success in tempering demand with its rate hikes.

The most important report of the week however awaits on Friday in the form of the May Employment Situation report.
Crude oil prices pulled back
31-May-22 15:00 ET
Dow -233.05 at 32979.93, Nasdaq -75.45 at 12055.67, S&P -25.35 at 4132.90

[BRIEFING.COM] The market moved to new session highs in the past hour but has been pulling back more recently on some modest but broader selling interest.

Notably, WTI Crude Futures, which tested $120.00/bbl earlier today, settled the session up just $0.16, or 0.1%, at $114.93/bbl. As prices pulled back, so, too, did the S&P 500 energy sector.

At its high today, the energy sector was up 2.2% but it is now down 1.3% for the session. Most stocks within the sector are now negative on the day including Chevron (CVX 174.99, -3.24, -1.8%) and Exxon (XOM 96.66, -0.96, -1.0%).

Separately, the Vanguard Mega Cap Growth ETF (MGK), which was up as much as 0.8% earlier today, is now down 0.2%.
Mosaic, fellow material/fertilizer peers higher on Tuesday
31-May-22 14:30 ET
Dow -45.50 at 33167.48, Nasdaq +33.43 at 12164.55, S&P +0.12 at 4158.37

[BRIEFING.COM] The S&P 500 (flat) is now hovering near last week's closing levels, albeit solidly off morning lows which had the index down about -1.28%.

S&P 500 constituents Mosaic (MOS 64.06, +4.21, +7.03%), Las Vegas Sands (LVS 35.93, +1.31, +3.78%), and Starbucks (SBUX 79.37, +2.66, +3.47%) dot the top of today's standings. MOS, and other fertilizer stocks, move higher on Tuesday, while casino stocks like LVS and casual dining stocks like SBUX get a decent boost today.

Meanwhile, California-based healthcare firm Illumina (ILMN 241.31, -16.75, -6.49%) is today's worst performer, underperforming alongside other biotech/healthcare names amid speculation that Senators Manchin and Schumer could renew discussions about an agreement for drug price control provisions.
Gold modestly lower to start holiday-abbreviated week
31-May-22 14:00 ET
Dow +4.89 at 33217.87, Nasdaq +44.19 at 12175.31, S&P +7.26 at 4165.51

[BRIEFING.COM] The major averages have squeaked above flat lines in recent trading, the tech-heavy Nasdaq Composite (+0.36%) holding a firm lead.

Gold futures settled $8.90 lower (-0.5%) to $1,848.40/oz owing in part to a modest move higher in both treasury yields and the greenback.

Meanwhile, the U.S. Dollar Index is up approx. +0.1% to $101.74.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 33212.98 +575.77 (1.76%)
Nasdaq 12131.12 +390.48 (3.33%)
SP 500 4158.25 +100.40 (2.47%)
10-yr Note +2/32 2.743
NYSE Adv 2719 Dec 454 Vol 923.3 mln
Nasdaq Adv 3498 Dec 893 Vol 4.72 bln

Industry Watch
Strong: Consumer Discretionary, Information Technology, Real Estate, Communication Services
Weak: Utilities, Consumer Staples, Financials

Moving the Market

-- PCE Price Indexes show moderation in inflation pressures

-- Month-end rebalancing activity

-- Leadership from heavily weighted sectors

-- Ongoing rebound momentum

Market rallies into long weekend
27-May-22 16:15 ET
Dow +575.77 at 33212.98, Nasdaq +390.48 at 12131.12, S&P +100.40 at 4158.25

[BRIEFING.COM] The stock market finished a volatile week on a firmly higher note with the S&P 500 (+2.5%) and Nasdaq (+3.3%) rising for the third consecutive day while the Dow (+1.8%) logged its sixth advance in a row, snapping its longest weekly losing streak since 1932.

Equities recorded the bulk of their gains during the first hour of action, adding to their big gains in late trade. The Nasdaq maintained its lead throughout the day while the S&P 500 and Dow returned into positive territory for the month.

Today's economic data was headlined by the Personal Income/Outlays report for April. The report showed a smaller than expected increase in income and a larger than expected increase in spending, but the yr/yr deceleration in the PCE Price Index was viewed as a silver lining that could signal an inflationary peak.

All eleven sectors spent the day in positive territory with six groups gaining at least 2.0%. Top-weighted technology (+3.4%) spent the day near the top of the leaderboard, alongside the consumer discretionary sector (+3.5%). The relative strength in these groups was notable since technology and retail stocks have been among the worst performers during the market's recent slide to levels not seen since early 2021.

Autodesk (ADSK 211.38, +19.75, +10.3%) finished atop the tech sector after beating Q1 expectations and issuing mixed guidance for FY23 while top-weighted components like Apple (AAPL 149.64, +5.86, +4.1%) and NVIDIA (NVDA 188.11, +9.60, +5.4%) also made notable contributions to the rally. NVIDIA's strength helped the PHLX Semiconductor Index (+4.0%) finish the day ahead of the tech sector, though both groups gained 8.1% for the week.

Retail stocks in the consumer discretionary sector were also a notable source of strength even though quarterly reports from the group have shown continued concerns about costs eating into margins. However, Ulta Beauty (ULTA 425.08, +47.12, +12.5%) finished ahead of other discretionary components after reporting better than expected results and guidance while Gap (GPS 11.60, +0.48, +4.3%) finished with a solid gain despite plunging nearly 15.0% at the open in reaction to its Q1 miss and below-consensus guidance. On the bright side, management indicated that performance is expected to improve in the second half of the year.

The improved sentiment in the market masked continued strength in the energy sector (+1.7%), as crude oil returned to its May high. The energy sector gained 8.1% for the week, extending its May advance to 16.9% while crude oil climbed $0.64 or 0.6% to $114.77/bbl, rising $4.72 or 4.3% for the week.

Treasuries had a mixed, but largely little changed, showing on Friday. The Treasury complex climbed for the third week in a row, with the 10-yr yield slipping one basis point to 2.74% today. The benchmark yield surrendered five basis points this week, pausing just above its 50-day moving average (2.73%).

Reviewing today's economic data:

Personal income increased 0.4% month-over-month (Briefing.com consensus 0.5%) following an unrevised 0.5% increase in March. Personal spending rose 0.9% month-over-month (Briefing.com consensus 0.6%) following an upwardly revised 1.4% increase (from 1.1%) in March. The PCE Price Index was up 0.2% month-over-month (Briefing.com consensus 0.3%) and the core-PCE Price Index, which excludes food and energy, was up 0.3% month-over-month, as expected.
The key takeaway from the report is that there was a moderation in the year-over-year rates for the price indexes, which will support the peak inflation narrative. The PCE Price Index was up 6.3% year-over-year, versus 6.6% in March, and the core-PCE Price Index, the one the Fed watches most closely, was up 4.9% year-over-year, versus 5.2% in March.
The final May reading for the University of Michigan's Index of Consumer Sentiment fell to 58.4 from the preliminary reading of 59.1. The final reading for April was 65.2. In May 2021, the Index of Consumer Sentiment stood at 82.9.
The key takeaway from the report is that inflation concerns have negatively impacted views on buying conditions for houses and durables, and the future outlook for the economy.
The advance goods trade deficit narrowed to $105.90 bln in April from a revised deficit of $125.90 bln (from -$125.30 bln) in March.
Advance Retail Inventories increased by 0.7% in April after increasing a revised 3.0% (from 2.0%) in March.
Advance Wholesale Inventories increased by 2.1% in April after increasing a revised 2.7% (from 2.3%) in March.

Bond and equity markets will be closed on Monday for Memorial Day. On Tuesday, the market will receive the March FHFA Housing Price Index (prior 2.1%) and March S&P Case-Shiller Home Price Index (Briefing.com consensus 20.0%; prior 20.2%) at 9:00 ET, followed by May Chicago PMI (Briefing.com consensus 55.5; prior 58.5) at 9:45 ET, and May Consumer Confidence (Briefing.com consensus 103.7; prior 107.3) at 10:00 ET.

Dow Jones Industrial Average -8.6% YTD
S&P 400 -10.6% YTD
S&P 500 -12.8% YTD
Russell 2000 -15.9% YTD
Nasdaq Composite -22.5% YTD

Gains extended
27-May-22 15:30 ET
Dow +503.65 at 33140.86, Nasdaq +363.26 at 12103.90, S&P +91.82 at 4149.67

[BRIEFING.COM] The major averages have added to their big gains in recent action. The Nasdaq (+3.1%) is now up more than 3.0% while the S&P 500 (+2.3%) has extended its gain past 2.0%.

The rally from the past three days reflects a notable improvement in sentiment ahead of a long weekend, and it is worth pointing out that the market has been able to climb despite continued resilience in the price of oil. The energy sector (+1.7%) has gained 8.1% this week while crude oil climbed $0.64, or 0.6%, to $114.77/bbl today. WTI crude advanced nearly $5.00 for the week, pausing just below its May high (115.56).

Treasuries finished the week on a mixed, but largely flat, note. The 10-yr yield slipped one basis point to 2.74%.
Small caps outperforming S&P 500
27-May-22 15:00 ET
Dow +367.18 at 33004.39, Nasdaq +31.92 at 11772.56, S&P +74.73 at 4132.58

[BRIEFING.COM] The major indices have held their positions the last half hour. The Nasdaq Composite (+2.7%) is outperforming the Dow Jones Industrial Average (+1.1%) and the S&P 500 (+1.8%), making for a quiet afternoon.

The mid caps are slightly underperforming today as evidenced by the S&P 400 Mid Cap Index (+1.7%). Meanwhile the small caps are outperforming the broader market as evidenced by the S&P 600 Small Cap Index (+2.0%) and the Russell 2000 (2.3%). With today's outperformance the Russell 2000 sports a comparable gain to the S&P 500.

Separately, the CBOE VIX Index is down 1.64 points at 25.86, as the activity seen today fuels hope for an extension of the rebound.
Gains maintained
27-May-22 14:25 ET
Dow +355.10 at 32992.31, Nasdaq +312.91 at 12053.55, S&P +73.26 at 4131.11

[BRIEFING.COM] The major averages remain firmly higher with the Nasdaq (+2.7%) continuing its leadership over the S&P 500 (+1.8%) and Dow (+1.1%).

Coupled with gains from the past two days, today's advance has lifted the key indices to levels not seen since the first week of May, reflecting hopes for a rebound after the S&P 500 flirted with bear market territory just a week ago. Interestingly, the market has climbed strongly in recent days even though crude oil returned to its May high.

All eleven sectors remain in positive territory with 90 minutes left in the session. Technology (+2.8%) and consumer discretionary (+2.5%) remain atop the leaderboard while the consumer staples sector (+0.6%) underperforms.
Dow lagging S&P 500 and Nasdaq
27-May-22 14:00 ET
Dow +320.05 at 32957.26, Nasdaq +295.73 at 12036.37, S&P +68.87 at 4126.72

[BRIEFING.COM] The major indices are still flirting with their intraday highs. The Dow Jones Industrial Average jumped more than 300 points today, up by 1.0%, but it's lagging the S&P 500 (+1.7%) and Nasdaq Composite (+2.5%).

The Dow has seen broad-based gains with 27 of 30 components trading mostly in the green. The only laggards being Johnson & Johnson (JNJ 179.40, -0.06, -0.03%), Coca-Cola (KO 64.36, +0.05, +0.08%), and Merck (MRK 92.32, +0.03, +0.05%) which have been doing relatively well year-to-date. Note that Apple (AAPL 148.52, +4.49, +3.1%), which has not been performing well year-to-date is the leading performer in the Dow.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 32637.21 +516.91 (1.61%)
Nasdaq 11740.64 +305.91 (2.68%)
SP 500 4057.85 +79.11 (1.99%)
10-yr Note
NYSE Adv 2729 Dec 569 Vol 1.0 bln
Nasdaq Adv 3562 Dec 1160 Vol 4.6 bln

Industry Watch
Strong: Consumer Discretionary, Industrials, Financials, Information Technology, Communication Services, Energy
Weak: Real Estate

Moving the Market

-- String of positive news from retailers

-- Oversold situation

-- Moves by fund managers at month end to boost underweight positions

-- Broad-based participation

Closing Stock Market Summary
26-May-22 16:20 ET
Dow +516.91 at 32637.21, Nasdaq +305.91 at 11740.64, S&P +79.11 at 4057.85

[BRIEFING.COM] Today was a good day for the stock market. Bulls had control of the tape from the opening bell to the closing bell, which rang with the major indices sitting near their best levels of the day.

The major indices charged ahead on bargain-hunting efforts that were sparked by reassuring earnings reports from major retailers, a hopeful eye to the end of the lockdowns in Shanghai next week, and some placating price action in NVIDIA (NVDA 178.51, +8.76, +5.2%), which finished higher after trading down as much as 10% after issuing disappointing fiscal Q2 revenue guidance.

The latter went a long way to validate assertions that a lot of bad news has already been priced into stocks and that they are ripe for a meaningful rebound effort.

Similarly, better-than-expected guidance from retailers Macy's (M 22.92, +3.71, +19.3%), Dollar General (DG 222.60, +27.26, +14.0%), Dollar Tree Stores (DLTR 162.80, +29.21, +21.9%), and Williams-Sonoma (WSM 129.70, +14.72, +12.8%), uplifting Q2 revenue guidance from Southwest Airlines (LUV 45.11, +2.66, +6.3%) and JetBlue (JBLU 10.61, +0.35, +3.4%), and an upward revision to the consumer spending component in the Q1 GDP Report also went a long way to temper concerns about the state of the consumer and incite a belief that consumer discretionary stocks have gotten deeply oversold.

Sure enough, the S&P 500 consumer discretionary sector (+4.8%) was the star today in a star-studded lineup of sector performances that also included the outperformance of the information technology (+2.5%), financial (+2.3%), and communication services (+2.1%) sectors.

Notably, those four sectors have been the worst-performing sectors this year, so their outperformance today lent credence to the view that today's rally had the markings of being a rally off deeply oversold conditions.

With today's gains, the S&P 500 reclaimed a posture above 4,000. It is now up 4.0% for the week and presumably destined to break a seven-week losing streak along with the Nasdaq Composite. The Dow Jones Industrial Average for its part is on course to break an eight-week losing streak, the likes of which hasn't been seen in nearly 100 years.

While stocks were getting their rebound groove on, Treasuries ultimately finished their session flat footed. The 10-yr note yield was up one basis point to 2.76% in front of the April Personal Income and Spending Report on Friday, which will include the Fed's preferred inflation gauge in the form of the core-PCE Price Index.

Reviewing today's economic data:

For the week ending May 21, initial claims decreased by 8,000 to 210,000 (Briefing.com consensus 210,000). Continuing claims for the week ending May 14 increased by 31,000 to 1.346 million.
The key takeaway in this report is the recognition that the four-week moving average of 1,347,500 for continuing claims is the lowest since January 17, 1970.
The second estimate for Q1 GDP was revised down to show real GDP decreasing at an annual rate of 1.5% (Briefing.com consensus -1.3%) from the advance estimate of -1.4%. The GDP Chain Deflator was revised up to 8.1% (Briefing.com consensus 8.0%) from 8.0%.
The key takeaway from this report, though, was the upward revision to consumer spending to 3.1% from 2.7%. That exceeded the consumer spending growth in the third and fourth quarters, demonstrating that the U.S. consumer was still acting as a key growth engine in the first quarter despite rising interest rates and higher costs for most goods and services, namely food and energy.
Pending home sales declined 3.9% month-over-month in April following a downwardly revised 1.6% decline (from -1.2%) in March.

Looking ahead, market participants will receive the April Personal Income and Spending Report, the April Adv. Intl. Trade in Goods, Retail Inventories, and Wholesale Inventories Report, and the final May reading for the Univ. of Michigan Index of Consumer Sentiment on Friday.

Dow Jones Industrial Average -10.0% YTD
S&P 500 -14.9% YTD
S&P 400 -12.6% YTD
Russell 2000 -18.1% YTD
Nasdaq Composite -25.0% YTD

Not much movement heading into the close
26-May-22 15:25 ET
Dow +517.63 at 32637.93, Nasdaq +270.81 at 11705.54, S&P +72.34 at 4051.08

[BRIEFING.COM] The market is still hanging around its session highs heading into the last half hour of trading.

The CBOE VIX Index is down to 27.41, as the recent sell-off has cooled down, mitigating concerns about another material downside leg in the near term.

Looking to tomorrow, the main attraction in the morning should be the April Personal Income and Spending report, which contains the Fed's preferred inflation gauge in the form of the core-PCE Price Index. Market participants are hopeful that it will show a moderation in inflation pressures. This report should have some added bearing on the performance of the Treasury market, which was little changed today.
Gains are mostly holding up
26-May-22 15:00 ET
Dow +586.22 at 32706.52, Nasdaq +325.51 at 11760.24, S&P +85.01 at 4063.75

[BRIEFING.COM] The S&P 500 (2.2%) and the Nasdaq Composite (2.9%) are both holding above 2% and flirting with their session highs. There hasn't been a lot of change in the overall market last few hours. The bulls continue to have a firm grip on things.

The one sore thumb is the S&P 500 real estate (-0.2%) sector, which is down modestly for the day but stands out as the only sector in negative territory. Conversely, strong gains are holding up in the consumer discretionary (+5.0%) and information technology (+2.6%) sectors.
Medtronic underperforms in S&P 500 following miss, downbeat guidance
26-May-22 14:30 ET
Dow +600.59 at 32720.89, Nasdaq +347.52 at 11782.25, S&P +91.69 at 4070.43

[BRIEFING.COM] The S&P 500 (+2.30%) is firmly in second place among the major averages to this point on Thursday.

S&P 500 constituents DXC Technology (DXC 34.08, +4.63, +15.72%), Norwegian Cruise Line (NCLH 15.51, +1.78, +12.96%), and Bath & Body Works (BBWI 42.57, +3.27, +8.32%) pepper the top of today's standings. DXC outperforms after yesterday's earnings, NCLH gains in part following last night's insider buy from Director R. Galbut, while BBWI advances alongside other specialty retail names like WSM, ULTA, and DKS.

Meanwhile, Minnesota-based medtech firm Medtronic (MDT 100.00, -5.54, -5.25%) is one of today's worst-performing names following this morning's Q4 miss and underwhelming earnings guidance.
Gold ends with modest gains on Thursday
26-May-22 14:00 ET
Dow +562.40 at 32682.70, Nasdaq +323.27 at 11758.00, S&P +83.34 at 4062.08

[BRIEFING.COM] With about two hours to go on the penultimate session of the week the tech-heavy Nasdaq Composite (+2.83%) holds a firm lead over its major counterparts, having moved mostly sideways in the last half hour.

Gold futures settled $1.30 higher (+0.1%) to $1,847.60/oz, aided in part by a modest retreat in the greenback.

Specifically, the U.S. Dollar Index is down approx. -0.2% to $101.89.

[ReturntoSender]

Market Snapshot

https://www.briefing.com/stock-market-update

Dow 32120.30 +191.66 (0.60%)
Nasdaq 11434.73 +170.29 (1.51%)
SP 500 3978.74 +37.25 (0.95%)
10-yr Note
NYSE Adv 2582 Dec 700 Vol 1.02 bln
Nasdaq Adv 3187 Dec 1434 Vol 4.4 bln

Industry Watch
Strong: Consumer Discretionary, Energy, Information Technology, Communication Services
Weak: Utilities, Industrials

Moving the Market

-- Growth concerns

-- Efforts to rebound from oversold condition

-- Speculation that month-end rebalancing will work in favor of stocks

-- Relief bid following release of FOMC Minutes

Closing Summary
25-May-22 16:25 ET
Dow +191.66 at 32120.30, Nasdaq +170.29 at 11434.73, S&P +37.25 at 3978.74

[BRIEFING.COM] The stock market made a rebound attempt today. There were some fits and starts in that attempt, but ultimately it was successful, gaining some steam after the release of the Minutes for the May FOMC meeting. Each of the major indices ended the day higher, yet the performance edge clearly went to the small-cap and mid-cap stocks over their larger peers.

The Russell 2000 increased 2.0% and the S&P Midcap 400 Index increased 1.9% versus gains of 1.0% for the S&P 500 and 0.6% for the Dow Jones Industrial Average. Some speculative trading action and short-covering activity bolstered the performance of the smaller-capitalization stocks, but to be fair, today's session had a predominately rebound-minded bias that saw the majority of stocks attract some buy-the-dip interest.

That interest was evident in the advance-decline line, which favored advancing issues by a nearly 4-to-1 margin at the NYSE and a better than 2-to-1 margin at the Nasdaq.

Notwithstanding the broad-based gains, the stock market did not exorcise its fundamental demons.

Growth concerns continued to persist, evidenced by some weaker-than-expected durable goods orders for April, no growth in weekly mortgage purchase applications, luxury homebuilder Toll Brothers (TOL 48.09, +3.55, +8.0%) acknowledging that demand has moderated over the past month, and Dick's Sporting Goods (DKS 78.14, +6.90, +9.7%) issuing FY23 EPS guidance well below the consensus estimate due to the expected impact of evolving macroeconomic conditions.

Those concerns, though, were set aside as market participants looked intent on forcing a rebound effort. That intention was most evident in the consumer discretionary sector (+2.8%), which has been the hardest-hit sector this year and which shook off the warning from Dick's Sporting Goods, unlike past sessions when it reacted decidedly negative to disappointing guidance.

Most sectors ended today higher. The lone laggards were the utilities (-0.06%) and industrials (-0.02%) sectors. The energy (+2.0%) and information technology (+1.2%) sectors fell in line behind the consumer discretionary sector as the best-performing sectors. Gains for the remaining sectors ranged from 0.04% to 0.9%.

Late in the day, the S&P 500 flirted with 4,000, stopping just short at 3999.33. The latter marked the high of the day and it was logged roughly an hour after the release of the FOMC Minutes at 2:00 p.m. ET. Market participants were presumably heartened by the notion that Fed members want to move expeditiously to the neutral rate in a bid to quell inflation pressures, and that moving there quickly could allow the Fed possibly to pause its rate hikes later in the year to assess the effects of policy firming.

It is highly debatable that a neutral rate in the neighborhood of 2.50% will be high enough to quell inflation pressures, but it was just enough of a carrot to create some trading excitement in the afternoon session. Notably, the 2-yr note yield barely budged after the release of the minutes, standing its ground at 2.50%. Meanwhile, stocks finished off their highs on some renewed selling interest over the last 45 minutes of trading.

Reviewing today's economic data:

The conditions for durable goods orders proved to be reasonably good in April, if not altogether as strong as expected. New orders for durable goods increased 0.4% month-over-month (Briefing.com consensus 0.6%) while new orders for durable goods, excluding transportation, rose 0.3% month-over-month (Briefing.com consensus 0.6%).
The key takeaway from the report is that business spending continued to increase. That view was embedded in the 0.3% increase in nondefense capital goods orders, excluding aircraft, which followed on the heels of a 1.1% increase in March.
Total applications declined 1.2% week-over-week, with purchase applications flat and refinancing applications down 2.0%

Looking ahead, market participants will receive the Second Estimate for Q1 GDP, Weekly Initial and Continuing Jobless Claims, April Pending Home Sales, and weekly EIA Natural Gas Inventories data on Thursday.

Dow Jones Industrial Average -11.5% YTD
S&P 500 -16.5% YTD
S&P 400 -14.6% YTD
Russell 2000 -19.9% YTD
Nasdaq Composite -26.9% YTD

Assessing the meaning of the Minutes
25-May-22 15:30 ET
Dow +287.80 at 32216.44, Nasdaq +221.57 at 11486.01, S&P +51.79 at 3993.28

[BRIEFING.COM] The stock market went into a higher gear following the release of the FOMC Minutes for the May meeting, which conveyed a notion that members want to move expeditiously to get to the neutral rate.

The neutral rate of course is a moving target. You kind of know it when the data suggest you hit it, but for now it sits in the neighborhood of 2.50%. The target range for the fed funds rate is currently 0.75-1.00%, and Fed Chair Powell has already intimated that 50 basis point rate hikes are likely at the June and July FOMC meetings. That would leave things at 1.75-2.00% if that's how it played out, so the arrival at "neutral" could come as early as the September FOMC meeting if the Fed stayed on a similar tightening course.

There are a few considerations that likely helped drive the post-Minutes upswing:

Market participants like the idea at this point that the Fed wants to get to the neutral rate expeditiously. Doing so presumably would help cool inflation pressures sooner rather than later (it is highly debatable that 2.50% is the bogey for an inflation rate that still sits above 8.0%).
Market participants also like the idea that the Fed could be hitting the "pause" button on rate hikes before the year is done. That view was borne out of the indication that many participants judged that an expeditious removal of policy accommodation would leave the Committee "well positioned later this year" to assess the effects of policy firming.

These ideas will certainly be put to the test in coming months, but for a market in an oversold condition, and desperate to have a ray of hope as it relates to future rate hikes, they were enough to generate some excitement that drove the S&P 500 to the threshold of the 4,000 level before being met with resistance.

Strikingly, the 2-yr note sits unchanged at 2.50%, little changed from where it was before the release of the Minutes.
Sectors pull ahead after minutes release
25-May-22 14:55 ET
Dow +171.91 at 32100.55, Nasdaq +186.44 at 11450.88, S&P +40.07 at 3981.56

[BRIEFING.COM] Major indices are all trending higher after the release of the minutes from the May FOMC meeting. The Nasdaq Composite is up 1.5%, the Dow Jones Industrial Average is up 0.4%, and the S&P 500 is up 1.0%.

The Mega-Caps have pulled ahead of the broader market today. Looking at the Vanguard Mega-Cap Growth ETF (MGK 188.16, +2.60, +1.4%) versus the Invesco S&P 500 Equal Weight ETF (RSP 143.78, +1.49, +1.1%) we can see that the mega-caps are leading by a decent spread instead of tracking nearly 1:1 as seen earlier in the session.

Separately, most S&P 500 sectors have shown improvement since the release of the minutes. Most notably, the information technology (+1.2%), consumer discretionary (+2.8%), and communication services (+0.7%) sectors sit near their best levels of the day.

The lone laggards at this point are the utilities (-0.4%) and health care (-0.3%) sectors.
FOMC minutes show participants think 50 bps hike would be appropriate at next couple of meetings
25-May-22 14:30 ET
Dow +78.84 at 32007.48, Nasdaq +134.41 at 11398.85, S&P +27.10 at 3968.59

[BRIEFING.COM] The major averages jostled around, but ultimately stand modestly higher following the release of the FOMC's May policy meeting minutes. The benchmark S&P 500 (+0.69%) is firmly in second place.

Interestingly, most participants judged that 50 basis point increases in the target range would likely be appropriate at the next couple of meetings.

In addition, many participants judged that expediting the removal of policy accommodation would leave the Committee well positioned later this year to assess the effects of policy firming and the extent to which economic developments warranted policy adjustments.

Among other key excerpts from the minutes, a number of participants observed that recent monthly data might suggest that overall price pressures may no longer be worsening. Also, all participants supported plans to reduce the size of the balance sheet.
Gold lower on Wednesday ahead of FOMC minutes
25-May-22 13:55 ET
Dow -37.40 at 31891.24, Nasdaq +86.62 at 11351.06, S&P +10.10 at 3951.59

[BRIEFING.COM] We're little changed in the last half hour, the tech-heavy Nasdaq Composite (+0.77%) still leading the way ahead of the FOMC's May policy meeting minutes at the top of the hour.

Gold futures settled $19.10 lower (-1%) to $1,846.30/oz its steepest percentage decline in two weeks, pressured in part by a modestly higher dollar.

Meanwhile, the U.S. Dollar Index is up approx. +0.4% to $102.26.

[ReturntoSender]

Market Snapshot

https://www.briefing.com/stock-market-update

Dow 31928.64 +48.38 (0.15%)
Nasdaq 11264.44 -270.83 (-2.35%)
SP 500 3941.49 -32.27 (-0.81%)
10-yr Note
NYSE Adv 1382 Dec 1920 Vol 1.0 bln
Nasdaq Adv 1346 Dec 3336 Vol 4.7 bln

Industry Watch
Strong: Utilities, Consumer Staples, Real Estate, Health Care, Energy
Weak: Communication Services, Information Technology, Consumer Discretionary

Moving the Market

-- SNAP warning about macro environment

-- Weakness in mega-cap stocks

-- Concerns about slowdown in economic and earnings growth

-- Some weakening in preliminary May PMI data for May



Closing Summary
24-May-22 16:15 ET
Dow +48.38 at 31928.64, Nasdaq -270.83 at 11264.44, S&P -32.27 at 3941.49

[BRIEFING.COM] The rebound effort that began late in the day last Friday hit a wall today as market participants grappled with concerns about economic and earnings growth prospects. Many stocks got battered and bruised hitting that wall while others fared reasonably well.

The biggest pains came early when the Nasdaq Composite was down as much as 3.8%. The S&P 500 and Dow Jones Industrial Average were down 2.5% and 1.6% at their worst levels of the day. There was some healing, however, that occurred as the day progressed. The Dow Jones Industrial Average rallied into positive territory and closed near its high for the session. Meanwhile, the Nasdaq and S&P 500 ended the session with lesser declines of 2.4% and 0.8%, respectively.

Unlike the early selling, there wasn't a specific news catalyst for the turnaround effort. Ironically, the early losses themselves likely served as the spark for the turnaround bid as market participants came back to the idea that the stock market is oversold and due for a more meaningful recovery bid.

That notion, though, got put to a serious test this morning following a spate of developments that played into existing concerns about a slowdown in growth here and abroad that could lead to an eventual cut in earnings growth estimates:

Snap (SNAP 12.79, -9.68, -43.1%) said after Monday's close that it expects its Q2 revenue and adjusted EBITDA to be below its prior guidance because the macroeconomic environment has deteriorated further and faster than anticipated.
Best Buy (BBY 73.65, +1.07, +1.5%) acknowledged that it saw a worsening in macro conditions as it lowered its FY23 comparable sales guidance to (3.0%)-(6.0%) from (1.0%)-(4.0%).
Small-cap specialty apparel retailer Abercrombie & Fitch (ANF 19.03, -7.70, -28.8%) reported disappointing fiscal Q1 results and issued disappointing guidance, citing higher costs and lower sales due to an assumed inflationary impact on the consumer.
Preliminary May manufacturing and services PMI readings out of Japan, the eurozone, and the U.S. showed a deceleration in activity versus April.
The April New Home Sales Report was much weaker than expected and included a downward revision for March.
UBS and JPMorgan cut their 2022 GDP growth estimates for China; and reports suggested Beijing has stepped up its quarantine efforts to stop the spread of COVID.

The confluence of these developments undercut most sectors, particularly the communication services (-3.7%), consumer discretionary (-2.6%), and information technology (-1.6%) sectors. To be fair, those sectors finished comfortably off their worst levels of the day, as did most sectors.

Nonetheless, the slowdown concerns were evident in the outperformance of the counter-cyclical utilities (+2.0%), consumer staples (+1.6%), and health care (+0.3%) sectors. Real estate (+1.2%) also outperformed, bolstered by the drop in market rates, which was an offshoot of concerns about the economic environment and the ongoing struggles for the stock market.

The 10-yr note yield settled the day down 10 basis points at 2.76% and the 2-yr note yield settled the day down 11 basis points at 2.50%.

The U.S. Dollar Index slipped 0.3% to 101.74, the CBOE Volatility Index jumped 4.2% to 29.67, and the fed funds futures market priced in a noticeably lower probability of 50 basis point rate hikes at the September and November FOMC meetings.

Reviewing today's economic data:

New home sales decreased 16.6% month-over-month in April to a seasonally adjusted annual rate of 591,000 units (Briefing.com consensus 750,000) from a downwardly revised 709,000 (from 763,000) in March. On a year-over-year basis, new home sales were down 26.9%.
The key takeaway from the report is that new home sales are counted when a contract is signed. The sharp drop from March, and the large miss versus the consensus estimate, underscores the affordability pressures that quickly emerged with the spike in mortgage rates.
The preliminary IHS Markit Manufacturing PMI for May decreased to 57.5 from 59.2 in the final reading for April. The preliminary IHS Markit Services PMI for May decreased to 53.5 from 55.6 in the final reading for April.

Looking ahead, market participants will receive the weekly MBA Mortgage Applications Index, April Durable Goods Orders Report, EIA Crude Oil Inventories, and the FOMC Minutes for the May meeting on Wednesday.

Dow Jones Industrial Average -12.1% YTD
S&P 500 -17.3% YTD
S&P 400 -16.2% YTD
Russell 2000 -21.4% YTD
Nasdaq Composite -28.0% YTD

Looking ahead to tomorrow's econ data
24-May-22 15:30 ET
Dow -57.48 at 31822.78, Nasdaq -309.29 at 11225.98, S&P -42.47 at 3931.29

[BRIEFING.COM] Heading into the last half hour, the major indices remain in the red but are holding above session lows. The S&P 500 is down by 1.1%, the Dow Jones Industrial Average is down 0.1%, and the Nasdaq is down by 2.7%.

Looking ahead, tomorrow's economic data includes: the weekly MBA Mortgage Applications, Durable Orders, Durable Orders Excluding-Transportation, EIA Crude Oil Inventories, and FOMC Minutes.

Market participants will want to keep a close eye on the FOMC Minutes tomorrow to gain a sense of what the Fed discussed in terms of future rate hikes and balance sheet reduction efforts.

In addition, Dick's Sporting Goods (DKS 71.48, -3.38, -5.1%) will be the featured earnings reporter before the market opens tomorrow.
Sectors are recovering
24-May-22 15:00 ET
Dow -183.70 at 31696.56, Nasdaq -371.06 at 11164.21, S&P -64.47 at 3909.29

[BRIEFING.COM] The major indices are still in the red but back up near session highs. The S&P 500 is down by 1.6%, the Nasdaq is down by 3.2%, and the Dow is down by 0.4%.

Taking a look at the sectors, consumer staples (+0.7%) and utilities (+1.3%) are still strong. Most sectors, however, have moved off session lows. The energy sector (-0.2%) has been flirting with positive territory, despite crude oil futures settling lower by $0.37 (-0.3%) to $109.94/barrel.

Dow component Walmart (WMT 123.50, +0.91, +0.7%) is a standout and is giving the consumer staples sector a needed boost today. The company dropped sharply last week following its earnings report and is likely benefitting from some bargain hunting activity.
Dexcom falls after rumors the company could buy Insulet; O'Reilly outperforms on AZO sympathy
24-May-22 14:25 ET
Dow -65.75 at 31814.51, Nasdaq -296.98 at 11238.29, S&P -45.32 at 3928.44

[BRIEFING.COM] The S&P 500 (-1.14%) is near today's intraday highs, though losses still holds worse than 1%.

S&P 500 constituents Dexcom (DXCM 285.05, -38.87, -12.00%), Norwegian Cruise Line (NCLH 13.35, -1.75, -11.59%), and Omnicom (OMC 68.89, -6.97, -9.19%) dot the bottom of today's trading. DXCM slips on Insulet (PODD 215.18, +12.33, +6.08%) acquisition rumors, while negative read-throughs from Snap's (SNAP 13.11, -9.36, -41.66%) guidance cut has OMC and fellow ad firms lower today.

Meanwhile, Missouri-based auto parts retailer O'Reilly Auto (ORLY 607.65, +28.54, +4.93%) sits atop the standings, outperforming in sympathy to AutoZone's (AZO 1,882.55, +77.33, +4.28%) results.
Gold ends higher for fourth consecutive day
24-May-22 14:00 ET
Dow -133.19 at 31747.07, Nasdaq -296.61 at 11238.66, S&P -53.17 at 3920.59

[BRIEFING.COM] The tech-heavy Nasdaq Composite (-2.57%) leads broader market losses with about two hours to go on Tuesday.

Gold futures settled $17.60 higher (+1.0%) to $1,865.40/oz, ending higher for a fourth consecutive session aided in part by lower than expected PMI readings this morning.

Meanwhile, the U.S. Dollar Index is down approx. -0.3% to $101.75.

[ReturntoSender]

Market Snapshot

https://www.briefing.com/stock-market-update

Dow 31880.26 +618.34 (1.98%)
Nasdaq 11535.27 +180.66 (1.59%)
SP 500 3973.76 +72.39 (1.86%)
10-yr Note
NYSE Adv 2209 Dec 1099 Vol 971 mln
Nasdaq Adv 2684 Dec 1944 Vol 4.5 bln

Industry Watch
Strong: Financials, Materials, Industrials, Consumer Staples, Energy, Information Technology, Utilities
Weak: Consumer Discretionary

Moving the Market

--Carryover momentum from late Friday rebound effort that pulled S&P 500 out of bear market territory

--M&A reports

--Broad-based participation

--Financials strong after JPM raises net interest income outlook

Closing Summary
23-May-22 16:15 ET
Dow +618.34 at 31880.26, Nasdaq +180.66 at 11535.27, S&P +72.39 at 3973.76

[BRIEFING.COM] There were no Monday blues for the stock market. Instead, stock monitors were generally awash in green figures as market participants succeeded in maintaining the momentum of Friday's late rebound effort.

JPMorgan Chase (JPM 124.58, +7.28, +6.2%) raising its net interest income outlook, reports that Broadcom (AVGO 526.36, -16.83, -3.1%) is in talks to acquire VMWare (VMW 119.90, +24.19, +25.3%) in a cash-and-stock deal, and an acknowledgment by President Biden that he is considering lifting some Chinese tariffs to help ease inflation pressures played a supportive role in today's rebound-minded trade.

The featured performer, however, was the stock market's prior performance, which is to say market participants subscribed to the notion that recent selling activity had gotten overdone, leaving the indices ripe for a rebound campaign.

Entering today, the Nasdaq Composite had declined 20.1% since the end of March, the S&P 500 had dropped 13.9%, and the Dow Jones Industrial Average had fallen 9.9%.

Sure enough, today's market narrative included a contention that month-end rebalancing activity would go in favor of stocks. We are not at month end yet, but we are in the home stretch, so that view resonated as a factor behind the stock market's resilience to selling efforts today.

It also fit with the broad-based buying interest seen in today's market. The Russell 3000 Value Index was up 1.5% and the Russell 3000 Growth Index was also up 1.5%.

All 11 S&P 500 sectors closed in positive territory. The financial sector (+3.2%), bolstered by JPMorgan Chase's guidance and some value hunting, led the way. It was joined at the top of the performance table by the energy (+2.7%), information technology (+2.4%), and consumer staples (+2.1%) sectors.

The latter was perhaps the surest sign of the market's rebound-minded bid considering that the consumer staples sector was one of last week's worst-performing sectors. The consumer discretionary sector (+0.6%), also a huge laggard last week, was today's weakest sector, although it managed to recover from an early 1.9% decline.

Treasuries generally tracked lower today, as stock prices tracked higher, in a curve-steepening trade. The 2-yr note yield settled up three basis points at 2.61% while the 10-yr note yield ended up seven basis points at 2.86%. A strong move by the euro against the dollar (EUR/USD +1.2% to 1.0686), after ECB President Lagarde teased the possibility of exiting negative rates by the end of Q3, was another factor weighing on Treasuries.

The U.S. Dollar Index fell 1.0% to 102.09. WTI crude futures settled the session up 0.2% at $110.31/bbl while natural gas futures spiked 7.9% to $8.84/mmbtu.

There was no U.S. economic data of note today. Tuesday's session will feature the preliminary IHS Markit Manufacturing and Services PMIs for May at 9:45 a.m. ET and the New Home Sales Report for April at 10:00 a.m. ET.

Dow Jones Industrial Average -12.0% YTD
S&P 500 -16.6% YTD
Russell 2000 -20.4% YTD
Nasdaq Composite -26.3% YTD

Value leading growth
23-May-22 15:30 ET
Dow +579.77 at 31841.69, Nasdaq +134.78 at 11489.39, S&P +63.31 at 3964.68

[BRIEFING.COM] There was a drift lower in the major indices during the New York lunch hour, yet the market found its footing and got running again to revisit prior session highs where it was eventually met with some resistance. Those respective resistance levels were 3,980 for the S&P 500 and 11,550 for the Nasdaq Composite.

Just about everything got pulled along on the push higher, including the consumer discretionary sector (+0.3%), which was up as much as 0.9% a short time ago after being down 1.9% earlier in the day.

Today's broad-based buying interest has afforded an edge to the value factor versus the growth factor. Currently, the Russell 3000 Value Index is up 2.0% versus a 1.6% gain for the Russell 3000 Growth Index.

All 11 S&P 500 sectors are in positive territory. The financial sector (+3.5%) remains perched in the top spot where it has resided all day.
Energy sector reaching new high
23-May-22 15:00 ET
Dow +603.60 at 31865.52, Nasdaq +149.49 at 11504.10, S&P +65.86 at 3967.23

[BRIEFING.COM] All major indices still holding onto gains today. The S&P 500 is nearing a session high of 1.8%. The financials (3.6%), energy (2.7%), consumer staples (2.2%), and information technology (2.1%) all still leading the outperformers. Leading the tail end is still the consumer discretionary (0.4%) sector, however it is well off its lows of the morning when it was down by 1.9%.

The energy sector reached its highest point since 2014 today. Notably pulling up the sector are Marathon (MPC 28.14, +0.88, +3.2%) and Exxon Mobil (XOM 93.91, +2.1, +2.2%) which both reached new 52-week highs. In the same vein, WTI crude oil futures settled higher today by $0.26 (0.24%) to $110.31/barrel.
Ross Stores gains on Barron's mention, Caesars underperforms in S&P 500
23-May-22 14:30 ET
Dow +649.61 at 31911.53, Nasdaq +167.90 at 11522.51, S&P +73.09 at 3974.46

[BRIEFING.COM] The S&P 500 (+1.87%) sits firmly in second place to this point on Monday.

S&P 500 constituents Ross Stores (ROST 79.28, +7.41, +10.31%), Deere (DE 334.98, +21.67, +6.92%), and Mosaic (MOS 61.57, +3.62, +6.25%) pepper the top of today's action. A positive Barron's mention aids ROST's Monday advance, while DE pares Friday's earnings-related losses, and MOS gains alongside general strength in materials names.

Meanwhile, casino operator Caesars Entertainment (CZR 48.13, -1.98, -3.95%) is one of today's top laggards.
Gold modestly higher as dollar slips to open the week
23-May-22 14:00 ET
Dow +624.43 at 31886.35, Nasdaq +142.35 at 11496.96, S&P +66.76 at 3968.13

[BRIEFING.COM] We're little changed in the major averages in the last half hour, the tech-heavy Nasdaq Composite (+1.25%) still bringing up the rear.

Gold futures settled $5.70 higher (+0.3%) to $1,847.80/oz, aided by a pullback in the greenback.

Meanwhile, the U.S. Dollar Index is down about -1% to $102.12.

[ReturntoSender]

Market Snapshot

https://www.briefing.com/stock-market-update

Dow 31261.92 +8.77 (0.03%)
Nasdaq 11354.61 -33.88 (-0.30%)
SP 500 3901.37 +0.57 (0.01%)
10-yr Note +5/32 2.789
NYSE Adv 1436 Dec 1644 Vol 1.19 bln
Nasdaq Adv 1991 Dec 2122 Vol 5.4 bln

Industry Watch
Strong: Real Estate, Health Care, Energy, Utilities, Consumer Staples
Weak: Consumer Discretionary, Industrials, Materials, Communication Services

Moving the Market

-- Market ends on a high note after S&P 500 briefly entered bear market territory

-- Ross Stores (ROST) sinks on disappointing earnings results and guidance, Deere (DE) and Applied Materials (AMAT) highlight supply chain issues

-- Underlying growth concerns

S&P 500 digs itself out of bear market territory
20-May-22 16:25 ET
Dow +8.77 at 31261.92, Nasdaq -33.88 at 11354.61, S&P +0.57 at 3901.37

[BRIEFING.COM] The S&P 500 (+0.01%) closed fractionally higher on Friday, successfully digging itself out of bear market territory from earlier in the session, which is typically defined as a 20% decline from a recent high. The Dow Jones Industrial Average (+0.03%), Nasdaq Composite (-0.3%), and Russell 2000 (-0.2%) also closed on a better note.

Early on, risk sentiment was pressured by a failed rebound effort (the S&P 500 was down 3.4% from its intraday high to its intraday low), and by growth concerns stemming from persistent inflation and supply chain issues. The early gains were largely sentiment-driven amid a belief that the market was overdue for a bounce and news that the People's Bank of China cut its 5-year prime loan rate by 15 basis points to 4.45%.

All 11 S&P 500 sectors were trading lower, but a nice rebound transpired in the last hour of action with no specific news to account for the rally. Six of the 11 S&P 500 sectors closed in positive territory, including health care (+1.3%) and real estate (+1.2%) with gains over 1.0%.

The S&P 500 consumer discretionary sector (-1.5%), however, succumbed to continued weakness in retail stocks after Ross Stores (ROST 71.87, -20.83, -22.5%) provided disappointing earnings results and guidance. Ross was the latest retailer to highlight rising cost pressures, raising concerns about slower earnings growth and the durability of the consumer in this high-cost environment.

Shares of Ross dropped 22.5%, versus a 2.2% decline for the SPDR S&P Retail ETF (XRT 61.33, -1.36, -2.2%).

Deere (DE 313.31, -51.31, -14.1%) and Applied Materials (AMAT 106.46, -4.28, -3.9%), two other cyclical companies, also struggled after highlighting supply chain issues in their earnings reports. Deere missed revenue estimates and weighed heavily on the industrials sector (-1.1%) while Applied Materials missed earnings expectations and issued downside quarterly guidance.

Some curve-flattening activity in the Treasury market and lower copper prices ($4.27/lb, -0.02, -0.5%) corroborated the underlying growth concerns. The 2-yr yield fell three basis points to 2.58%, and the 10-yr yield fell seven basis points to 2.79%. The U.S. Dollar Index increased 0.3% to 103.10. WTI crude futures settled above $110.00 per barrel ($110.05, +0.14, +0.1%).

Investors did not receive any economic data on Friday. Looking ahead, investors will receive New Home Sales for April and the preliminary IHS Markit Manufacturing and Services PMIs for May on Tuesday.

Dow Jones Industrial Average -14.0% YTD
S&P 500 -18.1% YTD
Russell 2000 -21.0% YTD
Nasdaq Composite -27.4% YTD

Sectors mostly down going into the close
20-May-22 15:30 ET
Dow -403.05 at 30850.10, Nasdaq -249.16 at 11139.33, S&P -58.38 at 3842.42

[BRIEFING.COM] Heading into the close, the S&P 500 is down by 1.6%. The Russell 2000 is down by 1.9%.

Nine out of 11 sectors are down with four sectors down by nearly 2%. The consumer discretionary (-3.0%), industrials (-2.2%), information technology (-1.7%), and communication services (-1.6%) are each suffering big losses in the last hour. Notably, Tesla (TSLA 644.21, -65.75, -9.3%) is down almost 10%.

The 10-yr Treasury yield settled lower by seven basis points to 2.79%.

Crude oil futures settled up by $0.14 (+0.1%) to $110.05/barrel.
Fed President Bullard reiterates 50 bps hike
20-May-22 14:55 ET
Dow -414.03 at 30839.12, Nasdaq -264.34 at 11124.15, S&P -60.05 at 3840.75

[BRIEFING.COM] All major indices are seeing losses today amid renewed inflationary concerns. The S&P 500 is down by 1.7%, the Nasdaq is down 2.4%, and the Dow Jones Industrial Average is down 1.4%.

The St. Louis Fed President, James Bullard (voting FOMC member), reiterated during a Fox Business interview today that the Fed will be sticking to its 50 basis point rate hike for now and that the fed funds rate should be at 3.5% by the end of the year. He also said that he does not think there will be a recession this year or next year.

His comments also mentioned that inflation is very tough on low-income people. This is being shown today by the extreme downturn that low-cost retailer Ross Stores (ROST 70.51, -22.20, -23.9%) experienced, which is down by 24% and hit a 52-week low following its earnings report.
Ross and Deere are the worst performers in S&P 500
20-May-22 14:35 ET
Dow -526.50 at 30726.65, Nasdaq -318.50 at 11069.99, S&P -80.93 at 3819.87

[BRIEFING.COM] The major indices are trading near session lows in a disappointing session. The S&P 500 is down 1.8% amid a dearth of buying interest.

An inside look at the benchmark index shows Ross Stores (ROST 70.00, -22.70, -24.5%) and Deere (DE 309.48, -54.94, -15.1%) as the two worst-performing stocks following their earnings reports.

Conversely, V.F. Corp (VFC 46.38, +1.76, +3.9%), American Tower (AMT 241.59, +8.25, +3.5%), and Eli Lilly (LLY 294.21, +7.98, +2.8%) are sporting solid gains.
Gold settles higher
20-May-22 14:05 ET
Dow -423.72 at 30829.43, Nasdaq -252.07 at 11136.42, S&P -62.84 at 3837.96

[BRIEFING.COM] The S&P 500 continues to trade in bear market territory with a 1.6% decline.

Looking at precious metals, gold futures settled higher by $0.70 (+0.04%) at $1,840.40/ozt while silver futures settled lower by $0.33 (-1.5%) at $21.62/ozt.

The U.S. Dollar Index currently trades higher by 0.4% to 103.19.

[ReturntoSender]

Market Snapshot

https://www.briefing.com/stock-market-update

Dow 32654.59 +431.17 (1.34%)
Nasdaq 11984.52 +321.73 (2.76%)
SP 500 4088.86 +80.85 (2.02%)
10-yr Note -9/32 2.983
NYSE Adv 2281 Dec 821 Vol 1.0 bln
Nasdaq Adv 3290 Dec 1134 Vol 4.9 bln

Industry Watch
Strong: Information Technology, Materials, Financials, Consumer Discretionary
Weak: Consumer Staples

Moving the Market

-- Improved sentiment regarding economic growth

-- Contrarian-minded rally effort

-- Powell-induced volatility

-- Treasury yields shoot higher

Stocks rally in feel-good session
17-May-22 16:15 ET
Dow +431.17 at 32654.59, Nasdaq +321.73 at 11984.52, S&P +80.85 at 4088.86

[BRIEFING.COM] The S&P 500 rose 2.0% on Tuesday, as the market was supported by a contrarian mindset and a reprieve in growth concerns. The Nasdaq Composite (+2.8%) and Russell 2000 (+3.2%) raced ahead the benchmark index with about 3% gains while the Dow Jones Industrial Average rose 1.3%

Ten of the 11 S&P 500 sectors closed higher by at least 1.0%, including five sectors with gains over 2.0%. The information technology sector (+2.9%) claimed the top spot, while the consumer staples sector (-1.2%) was the lone holdout amid an 11% drop in Walmart (WMT 131.35, -16.86, -11.4%) following its disappointing earnings results and guidance.

The contrarian mindset today was rooted in a BofA Global Fund Manager Survey that showed cash levels at their highest position (6.1%) since 9/11 and the largest underweight position in equities since May 2020. Growth concerns were alleviated by the following developments:

Home Depot (HD 300.95, +4.93, +1.7%) reported better-than-expected earnings results and guidance, United Airlines (UAL 46.97, +3.43, +7.9%) increased its Q2 unit revenue outlook, total retail sales for April rose 0.9% as expected, retail sales excluding autos rose 0.6% (Briefing.com consensus 0.3%), and industrial production for April jumped 1.1% (Briefing.com consensus 0.9%).

In addition, Shanghai reported no new COVID cases for three straight days outside quarantined zones, further supporting its reopening initiative. On a related note, Hong Kong plans to relax coronavirus restrictions later this week while Japan plans to allow small groups of tourists to enter the country this month.

An improved growth perspective helped tame inflation concerns, which were highlighted by Walmart and Fed Chair Powell at a Wall Street Journal virtual event. Home Depot also mentioned inflation pressures, which contributed to an 8.2% yr/yr decline in customer transactions in the first quarter.

Mr. Powell said the Fed will be more aggressive with rate hikes if inflation doesn't come down in a clear way, but he did preface the comment with an observation that the Fed can be less aggressive if inflation does clearly come down. This was largely consistent with his prior view on monetary policy.

The Treasury market was in sync with rate-hike and inflation expectations, as well as with the general upbeat mood on Wall Street. The 2-yr yield rose nine basis points to 2.67%, and the 10-yr yield rose nine basis points to 2.97%. The U.S. Dollar Index fell 0.8% 103.35. WTI crude futures fell 1.4%, or $1.59, to $112.21/bbl.

Reviewing Tuesday's economic data:

Total retail sales increased 0.9% month-over-month in April (Briefing.com consensus 1.1%) following an upwardly revised 1.4% increase (from 0.5%) in March. Excluding autos, retail sales rose 0.6% (Briefing.com consensus 0.3%) after increasing an upwardly revised 2.1% (from 1.1%) in March.
The key takeaway from the report, which is not adjusted for inflation, is that higher pricing helped in the sales growth, yet spending increased across most discretionary categories.
Total industrial production increased 1.1% month-over-month in April (Briefing.com consensus 0.5%), marking the fourth consecutive month of gains of 0.8% or greater. The capacity utilization rate increased to 79.0% (Briefing.com consensus 78.6%) from a downwardly revised 78.2% (from 78.3%) in March.
The key takeaway from the report is that it shows ongoing strength in industrial production and exposed the potential for further strength as motor vehicle production is expected to improve with any improvement in supply chains, particularly for semiconductors.
The NAHB Housing Market Index for May decreased to 69 (Briefing.com consensus 75) from 77 in April.
Business inventories increased 2.0% m/m in March (Briefing.com consensus 1.9%) following a revised 1.8% increase (from +1.5%) in February.

Looking ahead, investors will receive Housing Starts and Building Permits for April and the weekly MBA Mortgage Applications Index on Wednesday.

Dow Jones Industrial Average -10.1% YTD
S&P 500 -14.2% YTD
Russell 2000 -18.0% YTD
Nasdaq Composite -23.4% YTD

Ten of the 11 sectors up
17-May-22 15:35 ET
Dow +439.14 at 32662.56, Nasdaq +321.16 at 11983.95, S&P +81.04 at 4089.05

[BRIEFING.COM] Heading into the close, the S&P 500 is up by 1.8% and still comfortably above the 4,050 level.

Ten out of 11 S&P 500 sectors are up. Consumer staples (-1.3%), the lone sector experiencing losses going into the close, is still being dragged down by Walmart (WMT 131.55, -16.62, -11.2%). Adding to the downward trend is Procter & Gamble (PG 154.46, -0.63, -0.4%) and Kroger (KO 65.74, -0.23, -0.3%). Information technology (+2.9%), materials (+2.9%), financials (2.8%), and consumer discretionary (+2.5%) are up the most. Amazon.com (AMZN 2299.81, +83.60, +3.8%) is leading the upward trend with a 3.8% gain; Home Depot (HD 303.62, +7.59, +2.6%) is also pulling up the sector with a 2.4% gain.

Crude oil futures settled lower by $1.59 (-1.4%) to $112.21/barrel.
Powell reiterates policy viewpoint
17-May-22 15:00 ET
Dow +398.20 at 32621.62, Nasdaq +282.30 at 11945.09, S&P +71.42 at 4079.43

[BRIEFING.COM] The S&P 500 is up 1.7% after seeing some minor volatility following Fed Chair Powell's comments about the Fed being more aggressive with rate hikes if inflation doesn't come down in a clear way. He did, however, say that the Fed can be less aggressive if inflation does clearly come down.

The Treasury market has been largely unchanged following these comments, but the price action accurately reflects rate-hike expectations and inflation pressures with yields trading higher across the curve. The 2-yr yield is up nine basis points to 2.67%, and the 10-yr yield is up nine basis points to 2.97%.

The fed funds futures market is assigning a probability of 87.0% for a 50-basis-point rate hike in June, according to the CME FedWatch Tool -- roughly unchanged from yesterday and a week ago. That's unsurprising since Mr. Powell essentially reiterated his prior viewpoint on policy.
Markets dip slightly on Powell comments; PARA, CE outperform on Berkshire stakes
17-May-22 14:30 ET
Dow +204.23 at 32427.65, Nasdaq +179.52 at 11842.31, S&P +44.78 at 4052.79

[BRIEFING.COM] The markets have dipped lower as Fed Chair Jerome Powell's WSJ interview commenced; of his key excerpts, Mr. Powell suggested the Fed would need to be more aggressive with rate hikes if inflation does not come down in a clear and convincing way.

S&P 500 constituents Paramount Global (PARA 31.85, +3.83, +13.67%), Take-Two (TTWO 122.10, +11.99, +10.89%), and Celanese (CE 154.93, +10.25, +7.08%) pepper the top of today's standings. PARA and CE gain in light of Berkshire Hathaway's 13F disclosures, while TTWO outperforms after last night's earnings.

Meanwhile, grocery chain Kroger (KR 50.95, -2.25, -4.23%) underperforms after Walmart (WMT 131.03, -17.18, -11.59%) said in its results that it took share in grocery despite higher labor and fuel costs.
Gold ends higher amid weaker dollar
17-May-22 14:00 ET
Dow +333.00 at 32556.42, Nasdaq +245.41 at 11908.20, S&P +63.21 at 4071.22

[BRIEFING.COM] With about two hours to go the tech-heavy Nasdaq Composite (+2.10%) remains today's best-performing index.

Gold futures settled $4.90 higher (+0.3%) to $1,818.90/oz, aided in part by a decent decline in the greenback.

Meanwhile, the U.S. Dollar Index slips -0.8% to $103.33.

[ReturntoSender]

Market Snapshot

https://www.briefing.com/stock-market-update

Dow 32223.42 +26.76 (0.08%)
Nasdaq 11662.79 -142.21 (-1.20%)
SP 500 4008.01 -15.88 (-0.39%)
10-yr Note +2/32 2.894
NYSE Adv 1612 Dec 1564 Vol 945.5 mln
Nasdaq Adv 1956 Dec 2515 Vol 4.9 bln

Industry Watch
Strong: Energy, Health Care, Utilities, Consumer Staples
Weak: Consumer Discretionary, Financials, Real Estate

Moving the Market

-- Growth stocks hold back the market

-- Lingering growth concerns

-- Energy stocks rise in tandem with oil prices

Growth stocks hold back the market
16-May-22 16:20 ET
Dow +26.76 at 32223.42, Nasdaq -142.21 at 11662.79, S&P -15.88 at 4008.01

[BRIEFING.COM] The S&P 500 lost 0.4% on Monday amid continued weakness in the large growth stocks, which were largely responsible for the underperformance of the Nasdaq Composite (-1.2%). The Russell 2000 (-0.5%) performed comparably to the benchmark index, while the Dow Jones Industrial Average (+0.1%) eked out a gain.

The consumer discretionary sector (-2.1%) was the weakest performer with a 2% decline, as heavyweights Amazon.com (AMZN 2216.21, -44.89, -2.0%) and Tesla (TSLA 724.37, -45.22, -5.9%) continued to struggle. The information technology sector (-0.9%) was another key laggard without the leadership of Apple (AAPL 145.54, -1.57, -1.1%).

Growth stocks in general remained out of favor, evident by the 1.1% decline in the Russell 3000 Growth Index, versus the 0.1% gain for the Russell 3000 Value Index. Energy stocks contributed to the outperformance of the value index and, more directly, the S&P 500 energy sector (+2.6%) as oil prices ($113.80, +3.48, +3.2%) continued to appreciate.

The increase in oil prices was linked to news that Shanghai was planning to phase in business re-openings, thereby increasing demand expectations out of China. Despite the reopening news, risk sentiment was still pressured by ongoing growth concerns stirred by a host of developments.

Namely, weaker-than-expected Chinese data for April, a negative print (-11.6) for the May Empire State Manufacturing Survey, a downwardly revised 2022 eurozone growth forecast from the European Commission, and a temporary ban on wheat exports from India that drove wheat futures higher ($1247.50/bu, +70.00, +5.4%).

The Treasury market, like last week, continued to manifest these growth concerns through a decline in the 10-yr yield, which fell six basis points to 2.88%. The 2-yr yield decreased one basis point to 2.58%. The U.S. Dollar Index fell 0.3% to 104.24.

Overall, there just wasn't a ton of conviction today, but at least the CBOE Volatility Index (27.47, -1.40, -4.9%) dipped further below 30.00 in a move reflecting decreased hedging interest. There might have been a wait-and-see mindset for the retail sales report and a speech from Fed Chair Powell tomorrow.

In corporate news, shares of Spirit Airlines (SAVE 19.27, +2.29, +13.5%) rallied 13.5% after JetBlue (JBLU 9.45, -0.61, -6.1%) officially commenced a hostile takeover bid for the company. Wix.com (WIX 66.68, -4.51, -6.3%) and Warby Parker (WRBY 16.51, -0.93, -5.3%) provided disappointing earnings news.

Monday's economic data was limited to the Empire State Manufacturing Survey for May, which dropped to -11.6 (Briefing.com consensus 15.0) from 24.6 in April. Looking ahead, investors will receive Retail Sales for April, Industrial Production and Capacity Utilization for April, the NAHB Housing Market Index for May, and Business Inventories for March on Tuesday.

Dow Jones Industrial Average -11.3% YTD
S&P 500 -15.9% YTD
Russell 2000 -20.6% YTD
Nasdaq Composite -25.5% YTD

Consumer discretionary still down into the close
16-May-22 15:35 ET
Dow +83.71 at 32280.37, Nasdaq -115.54 at 11689.46, S&P -8.70 at 4015.19

[BRIEFING.COM] Heading into the close, the S&P 500 (-0.2%) is still above the 4,000 level.

Continuing a general downward trend, the consumer discretionary sector is down the most of all 11 S&P 500 sectors before the close with a 2.0% decline. Giving some context for the general longer term trend, this sector is down 8.4% this month and down 27.7% for the year. Tesla (TSLA 725.02, -44.52, -5.3% ) and Amazon.com (AMZN 2224.63, -37.60, -1.7%) are notably dragging down the sector. Unsurprisingly, the energy sector is way up at 3.0%.

Crude oil futures settled higher by $3.48 (+3.2%) at $113.80/barrel.
Tech sector turns positive
16-May-22 14:55 ET
Dow +237.08 at 32433.74, Nasdaq -38.29 at 11766.71, S&P +12.58 at 4036.47

[BRIEFING.COM] The S&P 500 is currently up 0.4% to trade near session highs amid a nice turnaround in the information technology sector (+0.3%), which was down as much as 1.7% intraday.

Being the most heavily-weighted sector in the market, featuring household names like Apple (AAPL 147.35, +0.29, +0.2%), Microsoft (MSFT 265.03, +3.91, +1.5%), and Visa (V 199.53, +0.30, +0.2%), the tech sector has an influential role in the price action of the S&P 500. Today's decline in long-term rates might be playing a supportive factor for dip-buying activity in the sector.

Looking ahead, Walmart (WMT 148.66, +0.66, +0.5%) and Home Depot (HD 299.01, +2.98, +1.0%) will report earnings prior to Tuesday's open.
Occidental outperforms alongside oil, energy peers
16-May-22 14:35 ET
Dow +305.09 at 32501.75, Nasdaq -9.95 at 11795.05, S&P +19.28 at 4043.17

[BRIEFING.COM] The major averages have turned modestly higher in recent trading, the S&P 500 (+0.48%) firmly in second place.

S&P 500 constituents Occidental Petro (OXY 68.49, +4.41, +6.88%), CF Industries (CF 107.98, +4.12, +3.97%), and Ball Corp (BALL 72.34, +2.59, +3.71%) pepper the top of today's action. OXY benefits from higher crude oil prices on Monday, while BALL was the subject of a new wind energy partnership with a NextEra Energy (NEE 70.47, +0.67, +0.96%) subsidiary.

Meanwhile, social media giant Twitter (TWTR 37.84, -2.88, -7.07%) is today's top laggard amid what seems like a he said, she said verbal battle between Elon Musk and TWTR management regarding bot account sizes. The company also disclosed on Friday evening that it wouldn't employ a new employee stock buying program.
Gold climbs higher on Monday
16-May-22 14:00 ET
Dow +170.01 at 32366.67, Nasdaq -66.17 at 11738.83, S&P +3.88 at 4027.77

[BRIEFING.COM] In the last half hour the S&P 500 (+0.10%) has moved back into positive territory, while the tech-heavy Nasdaq Composite (-0.56%) remains modestly lower.

Gold futures settled $5.80 higher (+0.3%) to $1,814.00/oz, ending back-to-back losses as a modestly lower dollar and mixed equities saw a modest bump in demand for the yellow metal.

Meanwhile, the U.S. Dollar Index is down about -0.2% to $104.37.

[ReturntoSender]

Market Snapshot

https://www.briefing.com/stock-market-update

Dow 32196.66 +466.36 (1.47%)
Nasdaq 11805.00 +434.04 (3.82%)
SP 500 4023.89 +93.81 (2.39%)
10-yr Note -29/32 2.929
NYSE Adv 2514 Dec 673 Vol 1.1 bln
Nasdaq Adv 2962 Dec 1215 Vol 5.8 bln

Industry Watch
Strong: Consumer Discretionary, Information Technology, Energy, Real Estate
Weak: Utilities, Health Care

Moving the Market

-- Stocks bounce from oversold condition

-- Renewed buying interest in mega-cap stocks

-- Short-covering activity

-- Positive-sounding COVID news out of China

Overdue rally into week's end
13-May-22 16:20 ET
Dow +466.36 at 32196.66, Nasdaq +434.04 at 11805.00, S&P +93.81 at 4023.89

[BRIEFING.COM] The S&P 500 rallied 2.4% on Friday, bouncing from an oversold condition and closing back above the psychological 4,000 level. The Nasdaq Composite (+3.8%) and Russell 2000 (+3.1%) outperformed with gains over 3.0% while the Dow Jones Industrial Average rose 1.5%.

It was a risk-on day from the get-go, starting from strong showings in foreign equity markets and continuing into the close of U.S. markets. All 11 S&P 500 sectors finished higher with gains ranging from 1.1% (utilities and health care) to 4.1% (consumer discretionary), with individual leadership belonging to the battered mega-cap stocks.

Presumably, risk sentiment was aided by a recognition that the S&P 500 was able to push higher after nearly entering bear market territory yesterday, as well as the ability for the market to sustain an early rally effort.

News factors that supported cause were reports from Bloomberg indicating that Shanghai was aiming to have no community spread of COVID-19 by May 20, spurring hopes for a relaxation of restrictions this month, and that Beijing refuted rumors of potential COVID-related lockdowns. Crude futures rose 3.7%, or $3.92, to $110.32/bbl amid improved demand expectations.

Short-covering activity, meanwhile, was evident in the post-earnings pops in Affirm Holdings (AFRM 23.71, +5.67, +31.4%) and Duolingo (DUOL 89.77, +22.79, +34.0%), and the outsized gain in Robinhood Markets (HOOD 10.69, +2.13, +24.9%) on news that Emergent Fidelity disclosed a 7.6% active stake in the company.

The bullish price action contributed to a 9% decline in the CBOE Volatility Index (28.87, -2.80, -9.1%), reflecting reduced hedging interest, and declines in safe-haven assets like Treasuries, gold ($1,808.30/ozt, -$15.40, +0.8%), and the U.S. dollar (104.57, -0.28, -0.3%).

Selling interest in Treasuries pushed yields higher: the 2-yr yield rose eight basis points to 2.59%, and the 10-yr yield rose 12 basis points to 2.94%.

In Fedspeak, Fed Chair Powell and Cleveland Fed President Mester (FOMC voter) both reiterated support for 50-basis-point rate hikes in the next two meetings after seeing this week's inflation data. On a related note, hopes for peak inflation were reinforced today by a flat m/m change in import prices for April and by downwardly revised export prices for March (to 4.1% from 4.5%).

Separately, Twitter (TWTR 40.70, -4.38, -9.7%) shares fell about 10% amid growing doubts about Elon Musk's takeover of the company. Mr. Musk tweeted that the deal was temporarily on hold following recent analysis that showed spam/fake accounts represented less than 5% of Twitter users -- less than his expectations -- but later said that he was still committed to the deal.

Reviewing Friday's economic data:

The preliminary University of Michigan Index of Consumer Sentiment for May dropped to 59.1 (Briefing.com consensus 63.5) from the final reading of 65.2 for April. In the same period a year ago, the index stood at 82.9.
The key takeaway from the report is that the decline in sentiment was broad-based across income, age, education, geography, and political affiliation with inflation factoring prominently in consumers' assessment of their current financial situation.
Import prices were flat in April after increasing 2.9% in March. Excluding oil, import prices rose 0.4% after increasing 1.2% in March. Export prices rose 0.6% after increasing 4.1% in March. Excluding agriculture, export prices also rose 0.5% after increasing 4.1% in March.

Looking ahead, investors will receive the Empire State Manufacturing Survey for May and Net Long-term TIC Flows for March on Monday.

Dow Jones Industrial Average -11.4 YTD
S&P 500 -15.6% YTD
Russell 2000 -20.2% YTD
Nasdaq Composite -24.5% YTD

Still looking up heading into the close
13-May-22 15:35 ET
Dow +486.90 at 32217.20, Nasdaq +460.26 at 11831.22, S&P +98.11 at 4028.19

[BRIEFING.COM] Heading into the close, the S&P 500 is up 2.5%.

All 11 sectors are up. Consumer discretionary (+4.1%), energy (+3.5%), and information technology (+3.7%) are at the top with utilities (+1.0%) at the tail end. Apple (AAPL 147.4, +4.9, +3.4%) has recouped its loss from yesterday, and NVIDIA (NVDA 177.7, +15.9, +10.1%) is up substantially heading into the close.

Crude oil futures rose $3.92 (+3.7%) to $110.32/barrel, possibly in response to the positive news out of Shanghai and Beijing.
Fed Mester reiterates support for 50-basis-point increases
13-May-22 15:00 ET
Dow +351.92 at 32082.22, Nasdaq +397.56 at 11768.52, S&P +81.23 at 4011.31

[BRIEFING.COM] The S&P 500 is currently up 2.2% and has seen some minor volatility this afternoon. The 4,000 level has become a battleground for the S&P 500, so this will be a level worth watching, particularly on a closing basis, for sentiment reasons.

Earlier today, Cleveland Fed President Mester (FOMC voter) reiterated support for 50-basis-point increases at the next two meetings, echoing recent comments from Fed Chair Powell, St. Louis Fed President Bullard (FOMC voter), and San Francisco Fed President Daly (non-voter) this week.

Looking ahead, Warby Parker (WRBY 17.07, -0.13, -0.8%) and Wix.com (WIX 70.35, +7.07, +11.2%) are some notable companies that will report earnings prior to Monday's open.
Ford outperforms on Morgan Stanley upgrade, Starbucks higher after insider purchase, lockdown easing
13-May-22 14:30 ET
Dow +200.07 at 31930.37, Nasdaq +305.11 at 11676.07, S&P +57.74 at 3987.82

[BRIEFING.COM] The S&P 500 (+1.47%) is firmly in second place to this point on Friday.

S&P 500 constituents Las Vegas Sands (LVS 33.88, +3.74, +12.41%), Ford Motor (F 13.36, +0.92, +7.40%), and Starbucks (SBUX 74.43, +4.53, +6.48%) pepper the top of today's trading. Lockdown easing reports out of China have lifted casino names including LVS, Ford caught an upgrade from Morgan Stanley this morning, while SBUX bounced off April 2020 lows following interim CEO H. Schultz's disclosed stock purchases.

Meanwhile, New Jersey-based medical device company Embecta Corp. (EMBC 25.66, -3.22, -11.15%) is today's top laggard following this morning's Q2 print.
Gold slots worst weekly losses since last June
13-May-22 14:00 ET
Dow +304.49 at 32034.79, Nasdaq +378.31 at 11749.27, S&P +76.01 at 4006.09

[BRIEFING.COM] With about two hours to go on Friday the tech-heavy Nasdaq Composite (+3.33%) holds a healthy lead among its major average counterparts.

Gold futures settled $16.40 lower (-0.9%) to $1,808.20/oz, registering a weekly decline of -4.0%, pressured by this week's gains in the dollar as investors cope with ongoing inflation concerns.

Meanwhile, the U.S. Dollar Index is down about -0.3% to $104.55.

[ReturntoSender]

Market Snapshot

https://www.briefing.com/stock-market-update

Dow 31730.30 -103.81 (-0.33%)
Nasdaq 11370.96 +6.73 (0.06%)
SP 500 3930.08 -5.10 (-0.13%)
10-yr Note +13/32 2.846
NYSE Adv 1601 Dec 1508 Vol 1.3 bln
Nasdaq Adv 2322 Dec 1962 Vol 6.6 bln

Industry Watch
Strong: Health Care, Real Estate, Consumer Discretionary, Communication Services, Industrials
Weak: Information Technology, Financials, Utilities

Moving the Market

-- Volatile conditions persist as do growth concerns, but session ends on better note after S&P 500 flirts with bear market territory

-- Russia threatens retaliation if Finland joins NATO

-- PPI data moderates on year-over-year basis, Fed Bullard says no need for 75-bps hike right now, Treasury Secretary Yellen does not see stable coin declines causing systemic issues

-- Short-covering activity

Volatile session ends on better note
12-May-22 16:20 ET
Dow -103.81 at 31730.30, Nasdaq +6.73 at 11370.96, S&P -5.10 at 3930.08

[BRIEFING.COM] The S&P 500 declined 0.1% on Thursday, as risk sentiment remained pressured by growth concerns, ongoing selling in large-cap technology stocks, and heightened volatility. The Dow Jones Industrial Average lost 0.3%, while the Nasdaq Composite gained 0.1% and Russell 2000 gained 1.2%.

The price action was a big focal point today, with the S&P 500 being up as much as 0.8% in the morning and then down as much as 1.9%, which took the benchmark index within a few points of bear market territory. The latter is often defined as a decline of 20.0% or greater from a recent high.

Flirting with bear market territory might have triggered a mechanically-oriented bounce that lifted six of the 11 S&P 500 sectors into positive territory by the close. The health care (+0.9%), consumer discretionary (+0.8%), and real estate (+0.7%) sectors outperformed in positive territory.

The information technology sector (-1.1%), however, was a heavy drag on the market and for sentiment, too, considering Apple (AAPL 142.56, -3.94, -2.7%) continued to struggle after losing its spot as the largest company in the world by market cap yesterday. The utilities sector (-1.2%) was the weakest link.

Growth concerns, meanwhile, lingered as Russia threatened retaliation if Finland joins NATO as planned, the IEA lowered its global growth demand forecast, and Walt Disney (DIS 104.31, -0.90, -0.9%) warned that Disney+ subscriber growth is apt to slow down in the second half of the year. On a related note, Disney missed top and bottom-line estimates.

The Treasury market continued to signal growth concerns via another drop in rates, which was also a byproduct of some safe-haven positioning amid the market volatility and peak inflation expectations following the Producer Price Index (PPI) for April. The PPI report featured a better-than-feared core PPI reading along with a moderation in the year-over-year increases.

The 2-yr yield fell 13 basis points to 2.51%, and the 10-yr yield fell ten basis points to 2.82% (recall, it hit 3.20% early this week). The U.S. Dollar Index remained strong in these uncertain times, rising 0.9% to 104.80 -- setting a fresh 20-year high. WTI crude futures rose 1.2%, or $1.26, to $106.40/bbl despite the IEA's reduced forecast.

As for the data, the Producer Price Index for final demand increased 0.5% m/m, as expected, while the index for final demand excluding food and energy, increased just 0.4% (Briefing.com consensus 0.6%). On a year-over-year basis, they were up 11.0% (versus 11.5% in March) and 8.8% (versus 9.5% in March), respectively.

Looking at some positive news, St. Louis Fed President Bullard (FOMC) and San Francisco Fed President Daly (non-voter) said they prefer 50-bps rate hikes instead of 75-bps, and Treasury Secretary Yellen said she doesn't think the huge losses in stable coins will cause systemic issues for the financial system. On a related note, Fed Chair Powell was confirmed by the Senate for a second term.

Separately, the session was filled with short-covering activity, which was notably evident in the sharp gains in Bumble (BMBL 22.36, +4.73, +26.8%) and Rivian (RIVN 24.30, +3.70, +18.0%) following their positive earnings reports, as well as the surge in Carvana (CVNA 37.40, +7.40, +24.7%) despite being downgraded to Hold from Buy at Stifel.

Reviewing Thursday's economic data:

The Producer Price Index for final demand increased 0.5% month-over-month in April, as expected, following an upwardly revised 1.6% increase (from 1.4%) in March. Excluding food and energy, the index for final demand jumped 0.4% (Briefing.com consensus 0.6%) following an upwardly revised 1.2% increase (from 1.0%) in March. There was a moderation in the year-over-year growth rates. The index for final demand was up 11.0%, versus 11.5% in March, and the index for final demand, excluding food and energy, was up 8.8%, versus 9.5% in March.
The key takeaway from the report is that there was some moderation in the year-over-year changes, but even so, inflation rates for producers remain at intolerably high levels that will pressure profit margins if not passed along to customers.
Initial jobless claims for the week ending May 7 increased by 1,000 to 203,000 (Briefing.com consensus 191,000). Continuing claims for the week ending April 30 decreased by 44,000 to 1.343 million. That is the lowest level since January 3, 1970.
The key takeaway from the report is that jobless claims continue to run near historically low levels that are consistent with a tight labor market that can continue to create wage-based inflation pressures.

Looking ahead, investors will receive Import and Export Prices for April and the preliminary University of Michigan Index of Consumer Sentiment for May on Friday.

Dow Jones Industrial Average -12.7 YTD
S&P 500 -17.5% YTD
Russell 2000 -22.5% YTD
Nasdaq Composite -27.3% YTD

Volatility continues into the close
12-May-22 15:30 ET
Dow -316.89 at 31517.22, Nasdaq -56.65 at 11307.58, S&P -31.07 at 3904.11

[BRIEFING.COM] The S&P 500 is down 0.8% heading into the close.

All 11 sectors are down, with information technology (-2.0%) and financials (-1.6%) leading the pack. Notably dragging down the technology sector is Apple (AAPL 141.03, -5.47, -3.7%) with a 4% decline.

Crude oil futures rose $1.26 (+1.2%) to $106.40/barrel despite the IEA lowering its global growth oil demand forecast.
S&P 500 flirts with bear market territory
12-May-22 15:00 ET
Dow -527.61 at 31306.50, Nasdaq -190.75 at 11173.48, S&P -64.09 at 3871.09

[BRIEFING.COM] The S&P 500 is trading near session lows with a 1.7% decline as there remains a lack of confidence regarding earnings prospects and the ability for the market to turn itself around.

Strikingly, the benchmark index came within a couple points of entering bear market territory, which is often defined as a drawdown of 20.0% or greater from a recent high. The S&P 500 was briefly down 19.9% from its all time-high earlier this afternoon. This is a level worth watching into the close.

Looking ahead, Affirm (AFRM 17.31, +2.67, +18.3%), FIGS (FIGS 12.03, -0.31, -2.5%), and Poshmark (POSH 9.57, +0.25, +2.7%) are some story stocks that will report earnings after the close.
Synchrony underperforms after Wolfe downgrade, Tapestry outperforms following earnings/buyback news
12-May-22 14:25 ET
Dow -500.44 at 31333.67, Nasdaq -185.98 at 11178.25, S&P -62.63 at 3872.55

[BRIEFING.COM] The S&P 500 (-1.59%) is narrowly in second place at this point on Thursday, holding just above session lows.

S&P 500 constituents Synchrony Financial (SYF 32.44, -2.89, -8.18%), AmerisourceBergen (ABC 149.93, -11.37, -7.05%), and WestRock (WRK 47.07, -3.19, -6.35%) dot the bottom of the standings. This morning Wolfe Research downgraded SYF to Underperform citing sensitivity to the credit card group amid likelihood of a recession, while ABC management commented on debt repayment plans as well as a possible share repurchase resumption, and WRK held an Investor Day this morning.

Meanwhile, Tapestry (TPR 30.30, +3.78, +14.25%) is today's best performer following earnings and a new buyback program.
Gold slips on Thursday amid rising dollar
12-May-22 14:00 ET
Dow -448.64 at 31385.47, Nasdaq -178.53 at 11185.70, S&P -55.74 at 3879.44

[BRIEFING.COM] The major averages are at or near session lows in recent trading, the tech-heavy Nasdaq Composite (-1.57%) now at the bottom of the standings.

Gold futures settled $29.10 lower (-1.6%) to $1,824.60/oz, pressured by a decent rise in the dollar.

Meanwhile, the U.S. Dollar Index adds about +1% to $104.88.

[ReturntoSender]

Market Snapshot

https://www.briefing.com/stock-market-update

Dow 31834.11 -326.63 (-1.02%)
Nasdaq 11364.23 -373.44 (-3.18%)
SP 500 3935.17 -65.88 (-1.65%)
10-yr Note +28/32 2.924
NYSE Adv 933 Dec 2274 Vol 1.2 bln
Nasdaq Adv 942 Dec 3337 Vol 6.0 bln

Industry Watch
Strong: Energy, Materials, Utilities
Weak: Information Technology, Consumer Discretionary, Communication Services, Financials

Moving the Market

-- Total CPI and core CPI, which excludes food and energy, both increase more than expected in April

-- Mega-caps weighing on the market with sizable declines

-- Oil prices jump amid encouraging COVID news out of China

Mega-caps lead market lower, CPI data comes in hot
11-May-22 16:15 ET
Dow -326.63 at 31834.11, Nasdaq -373.44 at 11364.23, S&P -65.88 at 3935.17

[BRIEFING.COM] The S&P 500 fell 1.7% on Wednesday, as the market was pressured by pronounced weakness in the mega-caps despite a decline in long-term interest rates. Growth concerns persisted as hot consumer pricing data for April reinforced expectations for the Fed to stay aggressive with tightening monetary policy.

The Nasdaq Composite (-3.2%) and Russell 2000 (-2.5%) underperformed the benchmark index, with the Nasdaq -- having more exposure to the mega-caps -- taking the brunt of the damage. The Dow Jones Industrial Average (-1.0%) declined 1.0%.

From a sector perspective, the heavily-weighted information technology (-3.3%) and consumer discretionary (-3.6%) sectors both dropped more than 3.0%, owed in large part to huge declines in stocks like Apple (AAPL 146.50, -8.01, -5.2%) and Tesla (TSLA 734.00, -66.04, -8.3%).

Three sectors did escape with a gain, namely energy (+1.4%), utilities (+0.8%), and materials (+0.03%), but the heavy losses of the mega-caps was not a pretty sight. The mega-cap losses not only weighed on the market-cap-weighted indices but also on risk sentiment, which only seemed to worsen as the day progressed.

Initially, there was some relief in the how the market shook off an initially bad response to the CPI report. The monthly figures were disappointing relative to expectations, although the year-over-year readings did moderate versus March. For April, total CPI increased 0.3% m/m (Briefing.com consensus 0.2%) while core CPI, which excludes food and energy, increased 0.6% m/m (Briefing.com consensus 0.4%).

After the news settled in, the longer-end of the Treasury market appreciated the idea that inflation rates could be peaking. At the same time, though, there was a fearful belief that the Fed would make sure that inflation peaks by tightening policy in a way that stymies economic growth.

The 10-yr yield, which is sensitive to expectations for inflation and economic growth, fell seven basis points to 2.92% after brushing up against 3.08% on the heels of the CPI report. The 2-yr yield, which is most sensitive to changes in the fed funds rate, increased one basis point to 2.64%. The U.S. Dollar Index increased 0.1% to 104.01.

Back to the equities, smaller and more speculative growth stocks continued to bleed. This time it was Coinbase Global (COIN 53.72, -19.27, -26.4%), Unity Software (U 30.30, -17.83, -37.1%), and Fiverr (FVRR 30.39, -10.48, -25.6%) following their disappointing earnings reports and/or guidance.

WTI crude futures, meanwhile, jumped 5.1%, or $5.12, to $105.14/bbl amid hope that Shanghai could soon ease restrictions after reporting a 51% drop in new COVID-19 cases on Tuesday. An ease in restrictions would hopefully increase oil demand.

Separately, Lorie Logan was named Dallas Fed President, effective Aug. 22, while the Senate confirmed Lisa Cook to the Fed Board.

Reviewing Wednesday's economic data:

Total CPI increased 0.3% month-over-month in April (Briefing.com consensus 0.2%) and core CPI increased 0.6% month-over-month (Briefing.com consensus 0.4%). Total CPI was up 8.3% year-over-year, down from 8.5% year-over-year in March, and core CPI was up 6.2% year-over-year, down from 6.5% year-over-year in March.
The key takeaway from the report is that it provided some leeway that suggests peak inflation might have been hit, but with the moderation not as significant as had been hoped, it also stirred concerns that inflation might stick at persistently high levels longer than anyone would like, including the Fed.
The Treasury Budget showed a $308.2 bln surplus in April versus a $225.5 bln deficit in the same period a year ago. The budget data is not seasonally adjusted, so the April surplus cannot be compared to the March deficit of $192.6 bln.
The budget deficit over the last 12 months is $1.20 trln versus a deficit of $1.73 trln in March.
The weekly MBA Mortgage Applications Index increased 2.0% following a 2.5% increase in the prior week.

Looking ahead, investors will receive the Producer Price Index for April and the weekly Initial and Continuing Claims report on Thursday.

Dow Jones Industrial Average -12.4% YTD
S&P 500 -17.4% YTD
Russell 2000 -23.5% YTD
Nasdaq Composite -27.4% YTD

Crude futures settle above $105 per barrel
11-May-22 15:35 ET
Dow -155.13 at 32005.61, Nasdaq -314.03 at 11423.64, S&P -43.12 at 3957.93

[BRIEFING.COM] The S&P 500 is down 1.1%, and the Russell 2000 is down 1.9%.

One last look at the S&P 500 sectors before the close shows information technology (-3.0%) and consumer discretionary (-3.0%) both down 3% amid pronounced weakness in the mega-caps. This helps account for the sharp decline in the S&P 500 despite five sectors trading higher.

Energy (+2.5%) is still leading the way amid the rise in oil prices, followed by utilities (+1.2%) and materials (+0.9%) with 1% gains.

WTI crude futures settled higher by $5.12 (+5.1%) to $105.14/barrel amid hope that Shanghai could soon be on the path to loosening COVID restrictions.
Lorie Logan named Dallas Fed President
11-May-22 14:55 ET
Dow -146.77 at 32013.97, Nasdaq -284.55 at 11453.12, S&P -36.93 at 3964.12

[BRIEFING.COM] The S&P 500 is down 0.8% after being down 1.5% earlier this afternoon. The mega-caps continue to be the biggest weights on the market, as the Vanguard Mega Cap Growth ETF (MGK 189.67, -4.22, -2.2%) trades lower by 2% despite a six-basis-point decline in the 10-yr yield (2.92%).

Earlier this afternoon, Lorie Logan was named Dallas Fed President, effective Aug. 22, following Robert's Kaplan resignation. On a related note, the Senate confirmed Lisa Cook to the Fed Board on Tuesday.

Looking ahead, Walt Disney (DIS 105.75, -1.93, -1.8%) will headline the earnings calendar after the close. Bumble (BMBL 18.20, -1.03, -5.4%) and Beyond Meat (BYND 27.07, -3.23, -10.6%) are some other notable companies that will report earnings after the close.
Higher April tax receipts, lower spending provide US gov't second monthly surplus of FY22
11-May-22 14:30 ET
Dow -51.75 at 32108.99, Nasdaq -228.91 at 11508.76, S&P -20.91 at 3980.14

[BRIEFING.COM] The major averages have trimmed their session losses modestly following the release of the April Treasury Budget. In short, strong growth from receipts and shrinking spending related to COVID allowed for the second monthly surplus in the government's fiscal year 2022.

The Treasury Budget for April showed a surplus of $308.22 bln versus a deficit of $225.58 bln a year ago. The Treasury Budget data is not seasonally adjusted, so the April surplus cannot be compared to the deficit of $192.63 bln for March.

Total receipts of $863.65 bln increased 96.6% compared to last year while total outlays of $555.43 bln were down about 16.4% compared to last year.

The total year-end budget deficit now stands at $360.00 bln, down around -81.4% y/y, vs $1.93 trln last year.
Gold higher following higher than expected CPI readings
11-May-22 14:00 ET
Dow -264.12 at 31896.62, Nasdaq -316.90 at 11420.77, S&P -52.70 at 3948.35

[BRIEFING.COM] The tech-heavy Nasdaq Composite (-2.70%) is today's worst-performing major average with about two hours remaining on Wednesday.

Gold futures settled $12.70 higher (+0.7%) to $1,853.70/oz, aided in part by this morning's higher than expected inflation readings.

Meanwhile, the U.S. Dollar Index is little changed at $103.90.

[ReturntoSender]

Market Snapshot

https://www.briefing.com/stock-market-update

Dow 32160.74 -84.96 (-0.26%)
Nasdaq 11737.67 +114.42 (0.98%)
SP 500 4001.05 +9.81 (0.25%)
10-yr Note +3/32 2.999
NYSE Adv 1361 Dec 13 Vol 1.2 bln
Nasdaq Adv 1642 Dec 2570 Vol 6.2 bln

Industry Watch
Strong: Information Technology, Communication Services, Health Care, Energy
Weak: Real Estate, Financials, Utilities, Consumer Staples, Industrials

Moving the Market

-- Mega-caps outperform in volatile session

-- 10-yr yield drops below 3.00%

-- M&A activity

-- David Tepper says he covered his short position in Nasdaq and is now a buyer of S&P 500

Mega-caps keep market afloat
10-May-22 16:20 ET
Dow -84.96 at 32160.74, Nasdaq +114.42 at 11737.67, S&P +9.81 at 4001.05

[BRIEFING.COM] The S&P 500 increased 0.3% on Tuesday in a volatile session in which the large growth stocks did the heavy lifting. The Nasdaq Composite pulled ahead with a 1.0% gain, representing the mega-cap outperformance, while the Dow Jones Industrial Average (-0.3%) and Russell 2000 (-0.02%) closed slightly lower.

The session started on a strong note for the market: the S&P 500 rallied as much as 1.9% amid gains across all 11 sectors, ostensibly because the 10-yr yield dropped below 3.00% (-9 bps to 2.99%). The price action in the 10-yr yield, though, was rooted in underlying growth concerns amid news that Shanghai was again tightening COVID-19 restrictions.

By early afternoon, the S&P 500 was down as much as 0.8% as investors sold into the early strength on no specific news catalyst. Selling was relatively indiscriminate apart from the steady gains in the beaten-down mega-caps, which ended up leading the market off session lows and the S&P 500 back above the 4,000 level by the close.

The Vanguard Mega Cap Growth ETF (MGK 193.89, +1.97) advanced 1.0%, whereas the Invesco S&P 500 Equal Weight ETF (RSP 142.51, -0.37) declined 0.3%.

The mega-caps propped up the S&P 500 information technology (+1.6%) and communication services (+0.8%) sectors to the top of the standings, joined by the energy sector (+0.9%). Conversely, the real estate (-2.3%), utilities (-1.2%), and financials (-0.8%) sectors were the worst performers.

The more speculative growth stocks, meanwhile, continued to disappoint, specifically Peloton (PTON 12.90, -1.23, -8.7%), Upstart (UPST 33.61, -43.52, -56.4%), GoodRx (GDRX 7.97, -2.78, -25.9%), and Sofi Technologies (SOFI 5.25, -0.72, -12.1%) following their earnings and/or guidance. Note, SOFI's earnings were released ahead of schedule prior to the close.

Bank stocks, in particular, were pressured by some flattening action in the Treasury market, where the 2s10s spread narrowed by 11 basis points. The 2-yr yield increased two basis points to 2.63%. The SPDR S&P Bank ETF (KBE 46.34, -0.62) fell 1.3%.

In M&A news, Biohaven Pharma (BHVN 140.00, +56.86, +68.4%) agreed to be acquired by Pfizer (PFE 49.49, +0.85, +1.8%) for $11.6 billion, or $148.50 per share, in cash -- a hefty 79% premium over yesterday's closing price. Duke Realty (DRE 49.58, +1.87, +3.9%) received a takeover proposal from Prologis (PLD 125.47, -6.90, -5.2%) for about $24 billion, or $61.68/share, in stock.

WTI crude futures settled just above $100.00 per barrel ($100.02, -3.41, -3.3%). The U.S. Dollar Index increased 0.2% to 103.90.

Tuesday's economic data was limited to NFIB Small Business Optimism, which was unchanged at 93.2 in April. Looking ahead, investors will receive the Consumer Price Index for April, the Treasury Budget for April, and the weekly MBA Mortgage Applications Index on Wednesday.

Dow Jones Industrial Average -11.5% YTD
S&P 500 -16.1% YTD
Russell 2000 -21.5% YTD
Nasdaq Composite -25.0% YTD

Bank stocks clipped by flatter yield curve
10-May-22 15:30 ET
Dow -64.29 at 32181.41, Nasdaq +153.46 at 11776.71, S&P +15.30 at 4006.54

[BRIEFING.COM] The S&P 500 is up 0.4%, and the Russell 2000 is up 0.6%.

One last look at the sectors before the close shows information technology (+2.0%) and communication services (+1.1%) still outperforming with solid gains, thanks to the mega-caps, while the real estate (-2.2%), utilities (-1.6%), and financials (-1.0%) sectors find themselves at the bottom of the standings.

Bank stocks in particular are getting clipped by the curve-flattening activity in the Treasury market. The 2s10s spread has narrowed by nine basis points, predominately due to the drop in the 10-yr yield (-9 bps to 2.99%). The SPDR S&P Bank ETF (KBE 46.16, -0.80) is down 1.7%.

WTI crude futures, meanwhile, settled lower by $3.41 (-3.3%) to $100.02/barrel.
Sofi Technologies disappoints investors with early earnings release
10-May-22 15:00 ET
Dow +19.34 at 32265.04, Nasdaq +198.93 at 11822.18, S&P +29.08 at 4020.32

[BRIEFING.COM] The S&P 500 is up 0.9% in a volatile session in which the benchmark index was up as much as 1.9% in early action and down as much as 0.8%, as investors sold into the early strength.

Earlier today, Sofi Technologies (SOFI 5.43, -0.54, -9.1%) released its earnings report ahead of schedule. SOFI shares are down 9% after the company missed EPS estimates on above-consensus revenue and guided the midpoint of Q2 revenue below consensus. Note, the company did raise its FY22 revenue guidance.

Looking ahead, Coinbase Global (COIN 76.31, -7.14, -8.6%), Roblox (RBLX 23.50, -1.11, -4.4%), and Unity Software (U 48.78, -1.60, -3.1%) are some notable growth companies that will report earnings after the close.
Sysco, Microchip outperform following earnings
10-May-22 14:30 ET
Dow +44.18 at 32289.88, Nasdaq +192.28 at 11815.53, S&P +28.80 at 4020.04

[BRIEFING.COM] The major averages have leveled off in the last half hour, the S&P 500 (+0.72%) firmly in second place.

S&P 500 constituents Fortinet (FTNT 264.69, +19.47, +7.94%), Sysco (SYY 87.61, +6.53, +8.05%), and Microchip (MCHP 68.37, +4.06, +6.31%) pepper the top of today's standings. FTNT outperforms after UK and US intelligence confirmed findings that Russia was behind a cyberattack targeting Viasat in Ukraine before the country invaded, while SYY and MCHP show solid gains in reaction to earnings reports.

Meanwhile, Virginia-based tobacco firm Altria (MO 51.02, -4.24, -7.67%) is today's worst performer following a downgrade to Market Perform at Bernstein.
Gold slips as dollar cozies up to Tuesday advance
10-May-22 14:00 ET
Dow +123.88 at 32369.58, Nasdaq +239.75 at 11863.00, S&P +42.40 at 4033.64

[BRIEFING.COM] The broader market shot higher at the turn of the last half hour, all now in positive territory, as the tech-heavy Nasdaq Composite (+2.06%) continues to hold the lead.

Gold futures settled $15.60 lower (-0.9%) to $1,841.00/oz, pressured in part by a rise in the greenback.

Meanwhile, the U.S. Dollar Index is about +0.2% higher at $103.86.

[ReturntoSender]

Market Snapshot

https://www.briefing.com/stock-market-update

Dow 32899.37 -98.60 (-0.30%)
Nasdaq 12144.66 -173.03 (-1.40%)
SP 500 4123.34 -23.53 (-0.57%)
10-yr Note -11/32 3.123
NYSE Adv 922 Dec 2116 Vol 1.08 bln
Nasdaq Adv 1118 Dec 3101 Vol 5.25 bln

Industry Watch
Strong: Energy, Utilities
Weak: Technology, Consumer Discretionary, Materials, Communication Services, Real Estate

Moving the Market

Stocks fight to stay above Monday's lows

April jobs report beats but labor force participation rate falls

Crude oil keeps rising

Volatile Finish to First Week of May
06-May-22 16:15 ET
Dow -98.60 at 32899.37, Nasdaq -173.03 at 12144.66, S&P -23.53 at 4123.34

[BRIEFING.COM] The stock market finished the first week of May on an underwhelming note with the Nasdaq (-1.4%) leading to the downside while the S&P 500 fell 0.6%. The two indices lost a respective 1.5% and 0.2% for the week. Small caps fared worse than the major averages, as the Russell fell 1.7%, giving up 1.3% for the week.

The market followed Thursday's faceplant with an opening stumble that pressured the S&P 500 back to its low from Monday. The early selling was paced by influential sectors like technology and consumer discretionary, but the same two groups contributed to a rebound that briefly lifted the S&P 500 into positive territory in the late morning. Afternoon trade saw more selling, but the S&P 500 was able to stay above its morning low.

The April jobs report was released ahead of the opening bell, showing stronger than expected headline payroll growth, which masked a decrease in the labor force participation rate. That rate dipped to 62.2% from 62.4% and is now more than a point below its pre-pandemic level.

Nine sectors finished the day in negative territory with materials (-1.4%), consumer discretionary (-1.3%), communication services (-1.3%) finishing at the bottom of the leaderboard. The top-weighted technology sector (-0.8%) also ended among the laggards after a volatile session while energy (+2.9%) and utilities (+0.8%) outperformed throughout the day.

The consumer discretionary sector was one of the worst performers of the week amid growing concerns about consumer spending in the face of high inflation. The sector lost 3.4% this week, as top component Amazon (AMZN 2295.45, -32.69, -1.4%) sank to a two-year low while Tesla (TSLA 865.65, -7.63, -0.9%) fought to remain near its 200-day moving average (910.42).

In the technology sector, Apple (AAPL 157.28, +0.74, +0.5%) did yeomen's work, preventing the sector from finishing on an eleven-month low that was notched in morning trade. However, while the top tech component finished higher, it failed to reclaim its 200-day moving average (159.65), which has served as an area of congestion for the past two weeks.

On the upside, the defensively-oriented utilities sector benefited from volatility in the broader market, extending this week's gain to 1.2%, while energy also outperformed throughout the day, finishing on its high. The energy sector's strength was underpinned by continued strength in crude oil, which climbed $1.80, or 1.7%, to $110.00/bbl, gaining $4.97, or 4.7%, for the week. The energy sector, meanwhile, jumped 10.2% this week, extending its year-to-date advance to 49.2%.

Treasuries ended the day on a mixed note with longer tenors finishing lower while the 2-yr note climbed. The 10-yr yield rose six basis points to 3.12%, hitting a fresh high for the year while the 2-yr yield fell five basis points to 2.67%.

Today's economic data included the April jobs report and March Consumer Credit:

April nonfarm payrolls increased by 428,000 (Briefing.com consensus 395,000). The 3-month average for total nonfarm payrolls decreased to 523,000 from 549,000. March nonfarm payrolls revised to 428,000 from 431,000. February nonfarm payrolls revised to 714,000 from 750,000.
April private sector payrolls increased by 406,000 (Briefing.com consensus 390,000). March private sector payrolls revised to 424,000 from 426,000. February private sector payrolls revised to 704,000 from 739,000.
April unemployment rate was 3.6% (Briefing.com consensus 3.6%), versus 3.6% in March. Persons unemployed for 27 weeks or more accounted for 25.2% of the unemployed versus 23.9% in March. The U6 unemployment rate, which accounts for unemployed and underemployed workers, was 7.0%, versus 6.9% in March.
April average hourly earnings were up 0.3% (Briefing.com consensus 0.4%) versus an upwardly revised 0.5% increase (from 0.4%) in March. Over the last 12 months, average hourly earnings have risen 5.5%, versus 5.6% for the 12 months ending in March.
The average workweek in April was 34.6 hours (Briefing.com consensus 34.7), versus 34.6 hours in March. Manufacturing workweek fell by 0.2 hours to 40.5 hours. Factory overtime was unchanged at 3.4 hours.
The labor force participation rate dipped to 62.2% from 62.4% in March.
The employment-population ratio decreased to 60.0% from 60.1% in March.
Consumer credit increased by $52.4 billion in March (Briefing.com consensus $25.0 billion) while the February increase was revised down to $37.7 bln from $41.8 bln.

Monday's economic data will be limited to the 10:00 ET release of the Wholesale Inventories report for March (prior 2.5%).

Nasdaq Composite -22.4% YTD
Russell 2000 -18.1% YTD
S&P 500 -13.5% YTD
Dow Jones Industrial Average -9.5% YTD

Energy Remains Ahead
06-May-22 15:25 ET
Dow -398.33 at 32599.73, Nasdaq -277.46 at 12040.23, S&P -59.91 at 4086.98

[BRIEFING.COM] The S&P 500 trades lower by 1.5% with 30 minutes remaining in the session. The index is currently down 1.0% for the week, widening its Q2 loss to 9.7%.

Nine sectors trade in negative territory going into the home stretch, with seven groups down at least 1.0%. Technology (-1.7%) is back among the laggards after a brief intraday show of strength while consumer discretionary (-2.2%), real estate (-2.1%), and materials (-2.0%) sit at the bottom of today's leaderboard.

On the upside, the energy sector (+1.8%) is hanging onto a solid gain, looking to add 9.0% for the week. Today's continuation of the sector's strength has been supported by crude oil, which climbed $1.80, or 1.7%, to $110.00/bbl, gaining $4.97, or 4.7%, for the week.
March Consumer Credit Growth Exceeds Expectations
06-May-22 15:05 ET
Dow -347.72 at 32650.34, Nasdaq -240.89 at 12076.80, S&P -50.50 at 4096.39

[BRIEFING.COM] The S&P 500 trades lower by 1.2% while the Nasdaq (-2.0%) remains behind with one hour left in today's session.

Just reported, consumer credit increased by $52.4 billion in March (Briefing.com consensus $25.0 billion) while the February increase was revised down to $37.7 bln from $41.8 bln
Earnings movers dominate S&P 500 action on Friday
06-May-22 14:30 ET
Dow -367.63 at 32630.43, Nasdaq -216.49 at 12101.20, S&P -50.48 at 4096.41

[BRIEFING.COM] The major averages have drifted lower in the last half hour, the S&P 500 (-1.22%) now in second place.

S&P 500 constituents Under Armour (UAA 10.86, -3.43, -24.00%), Illumina (ILMN 241.99, -49.73, -17.05%), and DISH Network (DISH 22.94, -4.54, -16.52%) dot the bottom of the index all following earnings.

Meanwhile, Texas-based medical device firm McKesson (MCK 331.06, +15.83, +5.02%) is one of today's better performers following earnings.
Gold registers third weekly loss in a row
06-May-22 14:00 ET
Dow -269.31 at 32728.75, Nasdaq -172.06 at 12145.63, S&P -36.35 at 4110.54

[BRIEFING.COM] The major averages have slid to afternoon lows in recent action, the tech-heavy Nasdaq Composite (-1.40%) still holding the worst declines.

Gold futures settled $7.10 higher (+0.4%) to $1,882.80/oz, not enough to pull the yellow metal out of another weekly decline.

Meanwhile, the U.S. Dollar Index is down about -0.2% to $103.53.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 32721.26 -1339.80 (-3.93%)
Nasdaq 12194.36 -770.49 (-5.94%)
SP 500 4109.88 -190.29 (-4.43%)
10-yr Note -31/32 3.052
NYSE Adv 296 Dec 2859 Vol 618.2 mln
Nasdaq Adv 736 Dec 3443 Vol 4.1 bln

Industry Watch
Strong: None
Weak: Consumer Discretionary, Information Technology, Communication Services

Moving the Market

-- Stocks coughed up yesterday's relief rally (and some) in a hurry

-- Growth stocks led retreat as 10-yr yield hit 3.10%

-- Unit labor costs soared during the first quarter

-- Disappointing earnings/guidance from e-commerce companies

Crude futures eke out gain
05-May-22 15:30 ET
Dow -1339.80 at 32721.26, Nasdaq -770.49 at 12194.36, S&P -190.29 at 4109.88

[BRIEFING.COM] The S&P 500 is now down by 4.4% in an all-around ugly session.

One last look at the S&P 500 sectors shows steep losses across the board. The consumer discretionary (-6.8%) and information technology (-5.9%) sectors are down about 7% and 6%, respectively, while the utilities sector is down the least with a sharp 1.8% decline.

WTI crude futures increased $0.23 (+0.2%) to $108.20/barrel.
Deflated sentiment
05-May-22 15:00 ET
Dow -1159.40 at 32901.66, Nasdaq -681.25 at 12283.60, S&P -161.64 at 4138.53

[BRIEFING.COM] There remains a deflating feeling in the stock market with the S&P 500 down 3.8%.

There's been little interest to buy the dip and a lot of interest to hedge against further downside. It'll be interesting to see if that bearish sentiment drives some short-covering activity into the close, but for now, it's more of the same.

Looking ahead, Block (SQ 94.47, -12.31, -11.4%), Zillow (ZG 38.85, -4.26, -9.9%), Illumina (ILMN 291.06, -16.62, -5.4%), and DoorDash (DASH 71.72, -9.92, -12.2%) are some notable companies that will report earnings after the close. Note, there will be a plethora of earnings news after the close -- one of the biggest days this earnings season.
Cognizant, Qorvo underperform after earnings
05-May-22 14:30 ET
Dow -1148.38 at 32912.68, Nasdaq -680.84 at 12284.01, S&P -161.43 at 4138.74

[BRIEFING.COM] The S&P 500 (-3.75%) is firmly in second place to this point on Thursday afternoon.

S&P 500 constituents Cognizant Tech (CTSH 73.49, -10.87, -12.89%), Align Tech (ALGN 280.75, -30.14, -9.69%), and Qorvo (QRVO 108.97, -10.37, -8.69%) pepper the bottom of today's trading. Both CTSH and QRVO reported earnings.

Meanwhile, Charlotte-based materials firm Albemarle (ALB 231.92, +16.45, +7.63%) is one of today's top performers following last night's earnings.
Gold higher alongside dollar, yields
05-May-22 14:00 ET
Dow -110.74 at 33950.32, Nasdaq -659.61 at 12305.24, S&P -155.91 at 4144.26

[BRIEFING.COM] With about two hours to go on Thursday the tech-heavy Nasdaq Composite (-5.09%) slides to session lows.

Gold futures settled $6.90 higher (+0.3%) to $1,875.70/oz even despite eye-catching gains in yields and the dollar.

Meanwhile, the U.S. Dollar Index adds +1.2% to $103.78.
Salesforce, Nike underperform on Thursday
05-May-22 13:30 ET
Dow -1015.77 at 33045.29, Nasdaq -609.66 at 12355.19, S&P -144.54 at 4155.63

[BRIEFING.COM] The Dow Jones Industrial Average (-2.98%) holds the "slimmest" declines on the session.

A look inside the DJIA shows that Salesforce (CRM 171.94, -13.54, -7.30%), Nike (NKE 118.97, -7.09, -5.62%), and Home Depot (HD 300.76, -14.55, -4.61%) are among today's top decliners.

Conversely, beverage firm Coca-Cola (KO 64.65, -0.38, -0.58%) relatively outperforms though still holds modest losses.

The DJIA trims month-to-date gains to just +0.21%.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 33921.42 +792.63 (2.39%)
Nasdaq 12886.32 +322.57 (2.57%)
SP 500 4277.21 +101.73 (2.44%)
10-yr Note -1/32 2.988
NYSE Adv 2455 Dec 686 Vol 620.2 mln
Nasdaq Adv 2965 Dec 1407 Vol 4.3 bln

Industry Watch
Strong: Energy, Communication Services, Information Technology
Weak: Real Estate

Moving the Market

-- Fed Chair Powell says Fed is not actively considering hiking rates by 75 basis points in coming meetings; 50-bps-increases more likely

-- FOMC hikes rates by 50 basis points and approves plan to reduce balance sheet, as expected

-- Treasury yields drop in wake of Powell comments

Crude futures flirt with $108 per barrel
04-May-22 15:30 ET
Dow +792.63 at 33921.42, Nasdaq +322.57 at 12886.32, S&P +101.73 at 4277.21

[BRIEFING.COM] The S&P 500 is now up 2.4% in a relief rally after Fed Chair Powell said a 75-basis-point rate hike is not on the table right now.

One last look at the S&P 500 sectors shows ten sectors up between 1.9% (health care) and 3.4% (energy). The real estate sector is getting left behind with a modest 0.5% gain.

WTI crude futures settled higher by $5.29 (+5.2%) to $107.97/barrel.
Powell catalyzes relief rally after dismissing 75-bps hike
04-May-22 15:00 ET
Dow +574.50 at 33703.29, Nasdaq +202.69 at 12766.44, S&P +71.47 at 4246.95

[BRIEFING.COM] The S&P 500 is up 1.8% after Fed Chair Powell said the central bank was not considering a 75-basis-point hike in future meetings and is instead targeting 50-basis-point hikes.

That has catalyzed a huge sign of relief in the market considering the fed funds futures market was assigning a 95% probability for a 75-bps hike next month. That probability has now decreased to 70.9%, which is to say that there is some skepticism amid the persistent inflation pressures.

The 2-yr yield, which is more sensitive to changes in the fed funds rate, has dropped 13 basis points to 2.63%.
Fed lifts rates 50 basis points, as expected; to reduce Treasury holdings in June
04-May-22 14:25 ET
Dow +125.03 at 33253.82, Nasdaq -40.40 at 12523.35, S&P +4.40 at 4179.88

[BRIEFING.COM] The broader market briefly lifted higher, but faded a bit after the Federal Reserve approved a 50 basis point rate hike to the federal funds rate to a range of 0.75% to 1.00%, as widely expected.

Additionally, the Committee decided to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities on June 1. For Treasury securities, the cap will initially be set at $30 billion per month and after three months will increase to $60 billion per month.

The Fed also added that the invasion of Ukraine by Russia was causing tremendous human and economic hardship. The implications of this for the U.S. economy are highly uncertain. In addition, the Fed said COVID-related lockdowns in China were likely to exacerbate supply chain disruptions.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 33128.79 +67.29 (0.20%)
Nasdaq 12563.75 +27.74 (0.22%)
SP 500 4175.48 +20.10 (0.48%)
10-yr Note +3/32 2.941
NYSE Adv 1921 Dec 1207 Vol 975.6 bln
Nasdaq Adv 2401 Dec 1987 Vol 4.5 bln

Industry Watch
Strong: Energy, Financials, Real Estate, Materials
Weak: Consumer Staples, Consumer Discretionary

Moving the Market

-- Value stocks outperform growth stocks

-- 10-yr yield backs down from 3.00%

-- Waiting for the Fed decision tomorrow

Value stocks lead market higher
03-May-22 16:15 ET
Dow +67.29 at 33128.79, Nasdaq +27.74 at 12563.75, S&P +20.10 at 4175.48

[BRIEFING.COM] The S&P 500 gained 0.5% on Tuesday in a session driven by the value stocks. The Dow Jones Industrial Average (+0.2%) and Nasdaq Composite (+0.2%) both increased 0.2% while the Russell 2000 outperformed with a 0.9% gain.

Nine of the 11 S&P 500 sectors closed higher, paced by the energy (+2.9%), financials (+1.3%), real estate (+1.2%), and materials (+1.1%) sectors with gains over 1.0%. The consumer staples (-0.3%) and consumer discretionary (-0.3%) sectors were the two holdouts, and both declined 0.3%.

It was encouraging to see buyers follow though, albeit tentatively, on yesterday's efforts ahead of the Fed's highly-anticipated policy decision tomorrow. The rebound-minded action helped suppress hedging interest, as shown by the 9.6% decline in the CBOE Volatility Index (29.25, -3.09, -9.6%).

Other supportive factors included a four-basis-point decline in the 10-yr yield (2.96%), a 2% decline in oil prices ($102.86, -2.31, -2.2%), and a better-than-expected 2.2% m/m increase in factory orders for March (Briefing.com consensus 1.0%).

Growth stocks, however, did underperform in the wake of the 30% plunge in Chegg (CHGG 17.42, -7.56, -30.3%) following its disappointing revenue guidance. The Russell 3000 Growth Index closed flat, versus a 0.9% increase for the Russell 3000 Value Index.

Estee Lauder (EL 245.52, -15.11, -5.8%), Expedia Group (EXPE 150.31, -24.50, -14.0%), and Rockwell Automation (ROK 213.80, -36.24, -14.5%) were other earnings losers. Conversely, Pfizer (PFE 49.29, +0.95, +2.0%) and Avis Budget (CAR 285.28, +4.72, +1.7%) came out as earnings winners even though Pfizer issued downside FY22 guidance.

The 2-yr yield increased three basis points to 2.76% in a curve-flattening trade that didn't deter the bank stocks. The U.S. Dollar Index decreased 0.3% to 103.46.

Reviewing Tuesday's economic data:

Factory orders for manufactured goods increased 2.2% m/m in March (Briefing.com consensus +1.0%) following an upwardly revised 0.1% increase (from -0.5%) in February. Shipments of manufactured goods jumped 2.3% after increasing 1.1% in February.
The key takeaway from the report is that it supports the view that the slowdown in factory orders in February was temporary and that orders rebounded smartly in March as activity picked up with the effects of the Omicron variant fading.
Job openings increased to 11.549 million in March from a revised 11.344 million (from 11.266 million) in February.

Looking ahead to Wednesday, in addition to the FOMC Rate Decision, investors will receive the ADP Employment Change report for April, the ISM Non-Manufacturing Index for April, the the Trade Balance for March, and the weekly MBA Mortgage Applications Index.

Dow Jones Industrial Average -8.8% YTD
S&P 500 -12.4% YTD
Russell 2000 -15.4% YTD
Nasdaq Composite -19.7% YTD

Crude futures settle lower by 2%
03-May-22 15:30 ET
Dow +91.81 at 33153.31, Nasdaq +29.41 at 12565.42, S&P +21.61 at 4176.99

[BRIEFING.COM] The S&P 500 is up 0.5%, and the Russell 2000 is up 1.2%.

One last look at the S&P 500 sectors shows energy (+3.0%), financials (+1.6%), and materials (+1.3%) leading the advance, while the consumer discretionary (-0.5%) and consumer staples (-0.4%) sectors remain the only two sectors trading lower.

WTI crude futures settled lower by $2.43 (-2.3%) to $102.68/barrel.
Energy stocks rallying despite lower oil prices
03-May-22 14:55 ET
Dow +77.60 at 33139.10, Nasdaq +28.69 at 12564.70, S&P +22.84 at 4178.22

[BRIEFING.COM] The S&P 500 is up 0.5% after briefly returning to its flat line earlier this hour.

Impressively, energy stocks are among today's top-performing equities despite the 2% decline in oil prices ($102.90/bbl, -2.26, -2.2%). The S&P 500 energy sector is currently up 2.8% amid the broader trend into "value" stocks.

Looking ahead, Advanced Micro Devices (AMD 91.09, +1.28, +1.4%), Airbnb (ABNB 145.24, -7.46, -4.9%), Starbucks (SBUX 74.19, -1.16, -1.6%), and Lyft (LYFT 31.16, -0.35, -1.1%) are some notable companies that will report earnings after the close.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 33061.50 +84.29 (0.26%)
Nasdaq 12536.01 +201.38 (1.63%)
SP 500 4155.38 +23.45 (0.57%)
10-yr Note -27/32 2.997
NYSE Adv 1319 Dec 1743 Vol 1.1 bln
Nasdaq Adv 2306 Dec 1977 Vol 4.8 bln

Industry Watch
Strong: Communication Services, Information Technology, Consumer Discretionary, Energy
Weak: Real Estate, Consumer Staples, Utilities, Health Care, Materials

Moving the Market

-- Major indices recoup intraday declines and close higher

-- 10-yr yield hits 3.00% for first time since December 2018

-- April ISM Manufacturing Index misses expectations

Major indices reclaim intraday losses and some
02-May-22 16:20 ET
Dow +84.29 at 33061.50, Nasdaq +201.38 at 12536.01, S&P +23.45 at 4155.38

[BRIEFING.COM] The S&P 500 advanced 0.6% on Monday, overcoming a late 1.7% decline, even as the 10-yr yield reached 3.00% for the first time since December 2018. The Nasdaq Composite gained 1.6%, the Russell 2000 gained 1.0%, and the Dow Jones Industrial Average gained 0.3%.

The first trading day of the month had picked up where April left off: the path of least resistance remained to the downside as investors fretted over the negative price action, rising rates, growth prospects, and the Fed's policy decision this week.

The market, however, turned it around in the last 75 minutes of action without a specific catalyst to account for the move. Sentiment might have simply gotten too bearish, or the buying opportunities might have been too good, with the S&P 500 falling to its lowest level since last May.

A bargain-hunting mindset lifted the S&P 500 information technology (+1.6%), communication services (+2.4%), and consumer discretionary (+1.4%) sectors to the top of the standings, accompanied by the high-flying energy sector (+1.4%).

The real estate (-2.6%), consumer staples (-1.3%), utilities (-1.0%), health care (-0.7%), and materials (-0.3%) sectors were the weakest performers.

The growth stocks performed fairly well despite the rise in the 10-yr yield, which did settle at 3.00% (up 11 basis points). More surprisingly, the Treasury yield curve steepened (2-yr yield rose 4 bps to 2.73%) despite relatively disappointing manufacturing data out of the U.S. and China.

Briefly, the April ISM Manufacturing Index decreased to 55.4% (Briefing.com consensus 57.9%) from 57.1% in March. China's Manufacturing PMI (47.4) fell deeper into contraction territory amid the COVID-19 outbreaks. On a related note, Beijing reportedly tightened coronavirus restrictions on Sunday.

Apple (AAPL 157.96, +0.31, +0.2%) and Amazon.com (AMZN 2490.00, +4.37, +0.2%), however, both increased just 0.2%, tempering the 1.3% gain in the Vanguard Mega Cap Growth ETF (MGK 206.88, +2.59, +1.3%). Recall, both stocks sold off following their earnings reports last week.

In related news, Apple received a notice from the European Commission of its preliminary view that the company abused its dominant position in markets for mobile wallets on iOS devices. Amazon was removed from the Best Ideas List at Wedbush.

WTI crude futures increased 0.1%, or $0.08, to $105.11/bbl. The U.S. Dollar Index increased 0.7% to 103.65.

Reviewing Monday's economic data:

The April ISM Manufacturing Index decreased to 55.4% (Briefing.com consensus 57.9%) from 57.1% in March. A number above 50.0% is indicative of expansion. April marked the 23rd consecutive month of expansion in the manufacturing sector, although the April reading is the lowest since July 2020.
The key takeaway from the report is that manufacturing activity is being held back by COVID issues abroad, ongoing supply chain problems, inflation pressures, and labor constraints that have made it challenging to satisfy demand and which have also detracted from demand.
Total construction spending increased 0.1% month-over-month in March (Briefing.com consensus 0.8%) following a 0.5% increase in February. Total private construction increased 0.2% month-over-month while total public construction decreased 0.2%. On a year-over-year basis, total construction spending was up 11.7%.
The key takeaway from the report is that, other than residential spending, there wasn't much strength in spending activity in either the private or public sectors.
The final IHS Markit Manufacturing PMI for April decreased to 59.2 from 59.7 in the preliminary reading.

Looking ahead, investors will receive Factory Orders for March and the JOLTs - Job Openings report for March on Tuesday.

Dow Jones Industrial Average -9.0% YTD
S&P 500 -12.8% YTD
Russell 2000 -16.1% YTD
Nasdaq Composite -19.9% YTD

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Market Snapshot

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Dow 32977.21 -939.18 (-2.77%)
Nasdaq 12334.63 -536.89 (-4.17%)
SP 500 4131.93 -155.57 (-3.63%)
10-yr Note -7/32 2.908
NYSE Adv 635 Dec 2457 Vol 1.4 bln
Nasdaq Adv 1301 Dec 3145 Vol 4.7 bln

Industry Watch
Strong: None
Weak: Consumer Discretionary, Real Estate, Information Technology

Moving the Market

-- Stocks sell off to close out disappointing month

-- Amazon.com (AMZN) drops 14% on disappointing guidance

-- Apple (AAPL) warns of higher supply chain costs

-- Lingering concerns about the Fed's tightening plans amid persistent inflation pressures and slower growth prospects

Stocks sell off to close out a disappointing month
29-Apr-22 16:15 ET
Dow -939.18 at 32977.21, Nasdaq -536.89 at 12334.63, S&P -155.57 at 4131.93

[BRIEFING.COM] The S&P 500 dropped 3.6% on Friday in an orderly retreat fueled by disappointing earnings news and sticky inflation pressures. The Dow Jones Industrial Average (-2.8%) and Russell 2000 (-2.9%) both declined 2.8% while the Nasdaq Composite underperformed with a 4.2% decline.

The losses were widespread: all 11 S&P 500 sectors closed lower with losses ranging from 2.0% (materials) to 5.9% (consumer discretionary); 28 of the 30 Dow components closed lower; and declining issues outnumbered advancing issues by a 4:1 margin at the NYSE and a 5:2 margin at the Nasdaq.

Amazon.com (AMZN 2485.63, -406.30, -14.1%) was the biggest drag on the market, falling 14% on downside revenue and operating income guidance for the second quarter. The disappointing guidance reminded investors about the slower growth prospects in an inflationary environment.

Pricing pressures were further illustrated by Apple's (AAPL 157.65, -5.99, -3.7%) warning of higher supply chain costs for fiscal Q3, the 6.6% year-over-year increase in the PCE Price Index for March, and the 1.4% increase in the Q1 Employment Cost Index (Briefing.com consensus 1.1%). Note, Apple topped earnings expectations.

Intel (INTC 43.59, -3.25, -6.9%), Chevron (CVX 156.67, -5.12, -3.2%), and Exxon Mobil (XOM 85.15, -2.05, -2.4%) also fell sharply following their earnings reports, while Honeywell (HON 193.51, +3.59, +1.9%) closed higher after providing pleasing earnings results and guidance.

More relevantly, the inflation data reinforced expectations for the Fed to shift to a tighter policy stance with the intent to rein in inflation pressures. The CME FedWatch Tool was pricing in an 88.4% probability for a 75-basis-point rate hike in June in addition to a 50-basis-point hike next week.

These expectations were also evident in the Treasury market, where the 2-yr yield increased five basis points to 2.69% and the 10-yr yield increased two basis points to 2.89%. The U.S. Dollar Index decreased 0.4% to 103.20. WTI crude futures decreased 0.3%, or $0.28, to $105.03/bbl.

Separately, Elon Musk said he had no plans to sell more shares of Tesla (TSLA 870.76, -6.75, -0.8%) after selling over $8 billion worth of stock this week.

Reviewing Friday's economic data:

Personal income increased 0.5% month-over-month (Briefing.com consensus 0.4%) following an upwardly revised 0.7% increase (from 0.5%) in February. Personal spending jumped 1.1% month-over-month (Briefing.com consensus 0.6%) following an upwardly revised 0.6% increase (from 0.2%) in February. The PCE Price Index surged 0.9% month-over-month, which took the year-over-year rate to 6.6% from 6.3% in February. The core PCE Price Index, which excludes food and energy, was up a more modest 0.3%, as expected, leaving the year-over-year increase at 5.2% versus 5.3% in February.
The key takeaway from the report is that real disposable personal income declined 0.4% in March, which helps explain why the personal savings rate, as a percentage of disposable personal income, dipped to 6.2% from 6.8%. In other words, consumers were spending out of savings presumably to maintain their standard of living in the face of higher costs.
The Q1 Employment Cost Index increased 1.4% (Briefing.com consensus 1.1%) on a seasonally adjusted basis for the three-month period ending in March. Wages and salaries, which account for about 70% of compensation costs, increased 1.2% and benefit costs, which make up the remainder of compensation costs, increased 1.8% for civilian workers.
The key takeaway from the report is that wages and salaries for workers were up from the same period a year ago, yet those gains have increasingly been subsumed by inflation, evidenced by the 7.0% increase in the PCE Price Index seen in the advance Q1 GDP report.
The final University of Michigan Index of Consumer Sentiment for April dropped to 65.2 (Briefing.com consensus 65.7) from the preliminary reading of 65.7. The final reading for March was 59.4. The April uptick was nice to see, although the April reading is one of the lowest readings over the last 10 years.
The key takeaway from the report is that the improvement was driven largely by an expectation that gas price increases will moderate significantly, but even so, there wasn't much improvement in the overall sentiment index, which is trolling its worst levels in the past decade.
The Chicago PMI for April decreased to 58.5 (Briefing.com consensus 62.0) from 62.9 in March.

Looking ahead, investors will receive the ISM Manufacturing Index for April and Construction Spending for March on Monday.

Dow Jones Industrial Average -9.3% YTD
S&P 500 -13.3% YTD
Russell 2000 -17.0% YTD
Nasdaq Composite -21.2% YTD

Crude futures settle lower but remain elevated
29-Apr-22 15:30 ET
Dow -750.00 at 33166.39, Nasdaq -454.51 at 12417.01, S&P -134.18 at 4153.32

[BRIEFING.COM] The S&P 500 is now down a steep 3.1% amid a dearth of buying interest.

One last look at the S&P 500 sectors shows ten sectors down at least 2.0%, with consumer discretionary down 5.5%. The materials sector is down the least with a current 1.3% decline.

WTI crude futures settled lower by $0.28 (-0.3%) to $105.03/barrel.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 33916.59 +614.66 (1.85%)
Nasdaq 12871.52 +382.59 (3.06%)
SP 500 4287.62 +103.67 (2.48%)
10-yr Note -2/32 2.853
NYSE Adv 2429 Dec 733 Vol 1.0 bln
Nasdaq Adv 2788 Dec 1769 Vol 5.0 bln

Industry Watch
Strong: Information Technology, Communication Services, Consumer Discretionary, Energy
Weak: None

Moving the Market

-- Earnings provide fuel for dip-buying efforts

-- Meta Platforms (FB) jumps over 17.0% following better-than-feared earnings report

-- Advance Q1 GDP decreased at 1.4% annualized rate (Briefing.com consensus +1.1%); GDP Chain Deflator rose 8.0% (Briefing.com consensus +7.3%).

Earnings fuel dip-buying efforts
28-Apr-22 16:15 ET
Dow +614.66 at 33916.59, Nasdaq +382.59 at 12871.52, S&P +103.67 at 4287.62

[BRIEFING.COM] The S&P 500 rallied 2.5% on Thursday, as earnings reactions helped instill confidence in dip-buying efforts. The Nasdaq Composite rose 3.1%, the Dow Jones Industrial Average rose 1.9%, and the Russell 2000 rose 1.8%.

After a shaky start in which the major indices, except the S&P 500, turned negative, the market kicked into higher gear in the afternoon. All 11 sectors in the S&P 500 closed higher with gains ranging from 1.1% (utilities) to 4.0% (information technology).

Meta Platforms (FB 205.73, +30.78, +17.6%) had sort of a halo effect on the mega-caps, as shares surged 17.6% following its better-than-feared earnings report. Apple (AAPL 163.64, +7.07, +4.5%) and Amazon.com (AMZN 2891.93, +128.59, +4.7%) posted strong gains in front of their earnings reports after the close.

Qualcomm's (QCOM 148.19, +13.09, +9.7%) results and guidance had a similar effect on the Philadelphia Semiconductor Index (+5.6%), while the 11% gain in PayPal (PYPL 92.09, +9.48, +11.5%) despite its downside guidance was viewed as a justification to buy other beaten-down growth stocks -- but not Teladoc (TDOC 33.51, -22.48, -40.2%), which cratered 40% on disappointing guidance.

McDonald's (MCD 254.19, +7.05, +2.9%) and Merck (MRK 88.58, +4.17, +4.9%) also pleased investors with their earnings reports. Fellow Dow components Caterpillar (CAT 212.44, -1.52, -0.7%) and Amgen (AMGN 238.13, -10.66, -4.3%), however, closed lower despite beating EPS estimates.

Of course, the notion that the market was simply due for a bounce from an oversold condition can't be understated. Encouragingly, too, the stock market did not appear fazed by the disappointing Advance Q1 GDP report that had marks of stagflation.

Briefly, real GDP decreased at an annual rate of 1.4% in the first quarter (Briefing.com consensus +1.1%) while the GDP Chain Deflator increased by a larger-than-expected 8.0% (Briefing.com consensus +7.3%).

The Treasury market, however, did react in such a way that maintained expectations for the Fed to prioritize tighter policy to keep inflation pressures in check. The 2-yr yield rose seven basis points to 2.64%, and the 10-yr yield rose five basis points to 2.86%. The U.S. Dollar Index (103.59, +0.64, +0.6%) hit a 20-year high. WTI crude settled above $105 per barrel ($105.31, +3.56, +3.5%).

Reviewing Thursday's economic data:

Real GDP decreased at an annual rate of 1.4% in the first quarter (Briefing.com consensus +1.1%) while the GDP Chain Deflator shot up 8.0% (Briefing.com consensus +7.3%). Real final sales of domestic product, which exclude the change in private inventories, were down 0.6%.
The key takeaway from the report is that it will exacerbate concerns about the U.S. economy being at risk of slipping into an eventual recession at worst or at least entering a stagflation period that will necessitate tighter monetary policy to get inflation under control.
Initial jobless claims for the week ending April 23 decreased by 5,000 to 180,000 (Briefing.com consensus 182,000). Continuing claims for the week ending April 16 decreased by 1,000 to 1.408 million, which is the lowest level since February 7, 1970.
The key takeaway from this report remains the same: jobless claims are near historically low levels, which is indicative of a tight labor market. The tightness in the labor market, though, will continue to fuel concerns about wage-based inflation pressures that can feed into more persistent, and broader, price inflation.

Looking ahead, investors will receive Personal Income and Spending for March, PCE Prices for March, the Q1 Employment Cost Index, the Chicago PMI for April, and the final University of Michigan Index of Consumer Sentiment for April on Friday.

Dow Jones Industrial Average -6.7% YTD
S&P 500 -10.0% YTD
Russell 2000 -14.6% YTD
Nasdaq Composite -17.7% YTD

Crude futures settle above $105 per barrel
28-Apr-22 15:30 ET
Dow +728.84 at 34030.77, Nasdaq +445.53 at 12934.46, S&P +120.90 at 4304.85

[BRIEFING.COM] The S&P 500 is up 2.9% to trade at fresh session highs as investors continue to follow through on dip-buying efforts.

One last look at the sectors shows gains across the board. The information technology sector sits atop with a 4.5% gain while the utilities sector underperforms with a 1.0% gain.

WTI crude futures settled higher by $3.56 (+3.5%) to $105.31/barrel. The higher oil prices has provided an additional boost for the energy sector (+3.9%).

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 33301.93 +61.75 (0.19%)
Nasdaq 12488.93 -1.81 (-0.01%)
SP 500 4183.95 +8.76 (0.21%)
10-yr Note -3/32 2.768
NYSE Adv 1312 Dec 1832 Vol 993.0 mln
Nasdaq Adv 1797 Dec 2657 Vol 4.6 bln

Industry Watch
Strong: Information Technology, Materials, Energy
Weak: Communication Services, Utilities, Real Estate

Moving the Market

-- Major indices close mixed in volatile session

-- Information technology sector provided key leadership

-- Weakness in the communication services sector after Alphabet (GOOG) missed EPS estimates

-- Mixed earnings picture

Volatile session ends mixed and little changed
27-Apr-22 16:20 ET
Dow +61.75 at 33301.93, Nasdaq -1.81 at 12488.93, S&P +8.76 at 4183.95

[BRIEFING.COM] The S&P 500 increased 0.2% on Wednesday in a volatile session in which the benchmark index traded between a 0.3% decline and 1.6% gain. The Nasdaq Composite (unch), Dow Jones Industrial Average (+0.2%), and Russell 2000 (-0.3%) closed mixed and little changed, also fading intraday gains.

Intraday highs were largely mechanical in the sense that the market tried to rally from an oversold condition, although some attributed good earnings news from the likes of Microsoft (MSFT 283.22, +13.00, +4.8%), Visa (V 214.11, +13.01, +6.5%), and T-Mobile US (TMUS 129.84, +4.88, +3.9%) as an influential factor.

The whole earnings picture, when considering reactions and guidance, was somewhat mixed, though. Alphabet (GOOG 2300.41, -89.71, -3.8%) and Boeing (BA 154.46, -12.58, -7.5%) both struggled following their reports while Texas Instruments (TXN 169.39, +0.95, +0.6%) issued downside Q2 guidance.

The S&P 500 communication services sector (-2.6%) was easily the worst-performing sector, as weakness in Alphabet spread over to Meta Platforms (FB 174.95, -6.00, -3.3%) ahead of its earnings report after the close, and the bleeding continued in Netflix (NFLX 188.54, -9.86, -5.0%).

Conversely, the information technology (+1.4%), materials (+1.5%), and energy (+1.5%) sectors each gained roughly 1.5%. The outperformance of the heavily-weighted technology sector overshadowed an underlying negative bias in the broader market: declining issues outpaced advancing issues at both the NYSE and Nasdaq.

Besides the mixed earnings picture, buying conviction was restrained by global growth concerns, the inability for the market to sustain a rebound rally, and weakening technical factors.

Elsewhere, the Treasury market saw modest selling pressure after two days of gains. The 2-yr yield increased two basis points to 2.57%, and the 10-yr yield increased five basis points to 2.82%. The U.S. Dollar Index rose 0.7% to 102.97. WTI crude futures rose 0.3%, or $0.33, to $101.75/bbl.

Reviewing Wednesday's economic data:

The Advance report for International Trade in Goods for March showed a deficit of $125.3 billion, versus a revised $106.4 billion (from $106.6 billion) in February. The Advance report for Retail Inventories for March rose 2.0%, and the Advance report for Wholesale Inventories for March rose 2.3%.
Pending home sales decreased 1.2% m/m in March (Briefing.com consensus -1.5%) following a revised 4.0% decline (from -4.1%) in February.
The weekly MBA Mortgage Applications Index fell 8.3% following a 5.0% decline in the prior week.

Looking ahead, investors will receive the advance estimate for Q1 GDP and the weekly Initial and Continuing Claims report on Thursday.

Dow Jones Industrial Average -8.4% YTD
S&P 500 -12.2% YTD
Russell 2000 -16.1% YTD
Nasdaq Composite -20.2% YTD

Crude futures settle slightly higher
27-Apr-22 15:30 ET
Dow +180.40 at 33420.58, Nasdaq +18.69 at 12509.43, S&P +18.75 at 4193.94

[BRIEFING.COM] The S&P 500 is up 0.5% in a relatively underwhelming session given the inability to hold onto prior gains.

One last look at the S&P 500 sectors shows information technology (+1.6%), energy (+1.7%), and materials (+1.7%) trading higher by more than 1.5%, while the communication services sector (-2.8%) remains a pocket of weakness.

WTI crude futures settled higher by $0.33 (+0.3%) to $101.75/barrel.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 33240.18 -809.28 (-2.38%)
Nasdaq 12490.74 -514.11 (-3.95%)
SP 500 4175.19 -120.92 (-2.81%)
10-yr Note +9/32 2.745
NYSE Adv 585 Dec 2610 Vol 997.0 mln
Nasdaq Adv 859 Dec 3380 Vol 5.0 bln

Industry Watch
Strong: Energy
Weak: Information Technology, Communication Services, Consumer Discretionary

Moving the Market

-- Mega-caps lead market sharply lower in front of earnings reports

-- Lingering growth concerns

-- Mixed reactions to better-than-expected Q1 earnings results

Trepidation sweeps market
26-Apr-22 16:15 ET
Dow -809.28 at 33240.18, Nasdaq -514.11 at 12490.74, S&P -120.92 at 4175.19

[BRIEFING.COM] The S&P 500 fell 2.8% on Tuesday in a relatively broad-based decline led by the growth stocks. The Dow Jones Industrial Average (-4.0%) and Russell 2000 (-3.2%) both underperformed while the Dow Jones Industrial Average fell 2.4%.

The mega-caps were some of the more influential laggards amid trepidation surrounding their earnings reports this week, starting with Microsoft (MSFT 270.22, -10.50, -3.7%) and Alphabet (GOOG 2390.12, -74.88, -3.0%) after the close. The Vanguard Mega-Cap Growth ETF (MGK 205.66, -8.65, -4.0%) fell 4.0%.

Losses broadened out as the day progressed, though, leaving ten of the 11 S&P 500 sectors in negative territory and the taking the S&P 500 below yesterday's intraday low (4200.82) by the close. Investors braced for further downside, evident in the 24% pop in the CBOE Volatility Index (33.52, +6.50, +24.1%).

The consumer discretionary (-5.0%), information technology (-3.7%), and communication services (-3.2%) sectors posted the steepest declines. The former included a 12% drop in Tesla (TSLA 876.42, -121.60, -12.2%) attributed in part to concerns surrounding Elon Musk's ownership of Twitter (TWTR 49.68, -2.02, -3.9%).

The energy sector (+0.04%) was the only sector in the S&P 500 that closed higher, although it couldn't keep pace with the increase in oil prices ($101.42, +2.79, +2.8%), which reclaimed $100 per barrel.

The latest earnings reports continued to have little effect on the market despite the results being mostly better than expected, including those from 3M (MMM 144.22, -4.38, -3.0%), General Electric (GE 80.59, -9.29, -10.3%), UPS (UPS 183.05, -6.59, -3.5%), PepsiCo (PEP 173.30, -0.44, -0.3%), and Sherwin-Williams (SHW 271.37, +23.35, +9.4%).

The mixed reactions added to the uncertainty facing the mega-cap earnings. Growth concerns, meanwhile, persisted and were manifested by another sharp decline in Treasury yields. The 2-yr yield fell eight basis points to 2.55%, and the 10-yr field fell five basis points to 2.77%. The U.S. Dollar Index rose 0.6% to 102.34.

Growth concerns were exacerbated by the threat of lockdowns in Beijing and a warning from Russia's Foreign Minister Lavrov that there is a "considerable" chance of nuclear war if western nations continue to deliver weapons to Ukraine, according to Bloomberg.

Separately, the Senate officially confirmed Fed Governor Brainard as Vice Chair of the Fed.

Reviewing Tuesday's economic data:

Total durable goods orders increased 0.8% month-over-month in March (Briefing.com consensus +1.1%) following an upwardly revised 1.7% decline (from -2.2%) in February. Excluding transportation, durable goods orders increased 1.1% month-over-month (Briefing.com consensus +0.5%) following an upwardly revised 0.5% decline (from -0.6%) in February.
The key takeaway from the report is that it conveyed a nice rebound in order activity after a brief slump in February. Notably, new orders for nondefense capital goods, excluding aircraft -- a proxy for business spending -- jumped 1.0% following a 0.3% decline in February.
New home sales decreased 8.6% month-over-month in March to a seasonally adjusted annual rate of 763,000 units (Briefing.com consensus 770,000) from an upwardly revised 835,000 (from 772,000) in February. On a year-over-year basis, new home sales were down 12.6%.
The key takeaway from the report is that sales of lower-priced homes have lessened as a percentage of overall sales, likely due to less supply resulting from cost and supply chain pressures for builders, and emerging pressures from rising mortgage rates that are reducing affordability for lower-income buyers. That is leading to higher-priced homes accounting for a larger percentage of new homes sold, which is driving up both median and average selling prices.
The Conference Board's Consumer Confidence Index dipped to 107.3 in April (Briefing.com consensus 106.0) from an upwardly revised 107.6 (from 107.2) in March. In the same period a year ago, the index stood at 117.5.
The key takeaway from the report is that consumers' expectations did not worsen in spite of the inflation pressures and the war in Ukraine, although it was noted that purchasing intentions are down overall from recent levels.
The S&P Case-Shiller Home Price Index was up 20.2% year-over-year in February (Briefing.com consensus 18.9%) while the FHFA Housing Price Index increased 2.1% month-over-month in February.

Looking ahead, investors will receive Pending Home Sales for March, Advance Intl Trade in Goods, Retail Inventories, and Wholesale Inventories for March, and the weekly MBA Mortgage Applications Index on Wednesday.

Dow Jones Industrial Average -8.5% YTD
S&P 500 -12.4% YTD
Russell 2000 -15.8% YTD
Nasdaq Composite -20.2% YTD

Crude futures reclaim $100 per barrel
26-Apr-22 15:25 ET
Dow -688.32 at 33361.14, Nasdaq -441.17 at 12563.68, S&P -101.75 at 4194.36

[BRIEFING.COM] The S&P 500 is down 2.4% and has slipped below yesterday's intraday low (4200.82).

One last look at the sector standings shows consumer discretionary (-4.4%), information technology (-3.2%), and communication services (-2.6%) still leading the retreat, while the energy sector (+0.5%) remains the only sector trading higher.

WTI crude futures settled higher by $2.79 (+2.8%) to $101.42/barrel.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 33811.40 -981.36 (-2.82%)
Nasdaq 12839.29 -335.36 (-2.55%)
SP 500 4271.77 -121.88 (-2.77%)
10-yr Note 0/32 2.912

NYSE Adv 487 Dec 2722 Vol 1.0 bln
Nasdaq Adv 1127 Dec 3098 Vol 4.4 bln


Industry Watch
Strong: None

Weak: Health Care, Materials, Financials, Communication Services


Moving the Market
-- Continuation of yesterday's broad-based retreat

-- Rate-hike angst fuels de-risking efforts

-- Underwhelming earnings news from American Express (AXP) and Verizon (VZ)





Ugly end to the week
22-Apr-22 16:15 ET

Dow -981.36 at 33811.40, Nasdaq -335.36 at 12839.29, S&P -121.88 at 4271.77
[BRIEFING.COM] The major indices dropped more than 2.5% on Friday in what was largely a continuation of yesterday's broad-based selling. The S&P 500 fell 2.8%, the Dow Jones Industrial Average fell 2.8%, the Nasdaq Composite fell 2.6%, and the Russell 2000 fell 2.6%.

All 11 S&P 500 sectors closed lower with losses ranging from 1.6% (consumer staples) to 3.7% (materials), and all 30 Dow components closed lower. Growth and value stocks fell together, as did mega-caps with micro-caps.

De-risking efforts persisted amid a weakening technical posture and rate-hike angst in the face of slower economic growth. The S&P 500 fell further below its descending 50-day moving average (4407).

Investors were reminded of slower growth prospects by the slippage in the preliminary IHS Markit Services PMI for April (to 54.7 from 58.0 in March) and a reduced 2022 growth forecast from Germany (to 2.2% from 3.6%).

The fed-funds-sensitive 2-yr yield increased three basis points to 2.72% while the growth-sensitive 10-yr yield decreased one basis point to 2.91% after hitting 2.97% Thursday evening. The U.S. Dollar Index rose 0.6% to 101.16. WTI crude futures fell 1.7%, or $1.79, to $102.00/bbl.

In addition, investors were left underwhelmed by the latest earnings reports from the likes of Verizon (VZ 51.91, -3.10, -5.6%), American Express (AXP 180.54, -5.20, -2.8%), HCA Healthcare (HCA 210.64, -58.80, -21.8%), and Intuitive Surgical (ISRG 252.34, -42.23, -14.3%).

Three earnings standouts, to shed light on some positives, included Kimberly-Clark (KMB 138.51, +10.41, +8.1%), Schlumberger (SLB 41.65, +1.00, +2.5%), and SVB Financial Group (SIVB 541.04, +37.91, +7.5%).

For what it's worth, Cleveland Fed President Mester (FOMC voter) told CNBC that the Fed does not need to raise rates by 75 basis points and that she prefers to get rates to 2.50% by the end of the year.

Friday's economic data was limited to the preliminary IHS Markit Manufacturing and Services PMIs for April. The manufacturing reading increased to 59.7 from 58.8 in March while the services reading decreased to 54.7 from 58.0 in March.

There is no economic data scheduled for Monday.

Dow Jones Industrial Average -7.0% YTD
S&P 500 -10.4% YTD
Russell 2000 -13.6% YTD
Nasdaq Composite -17.9% YTD




Crude futures settle lower
22-Apr-22 15:30 ET

Dow -737.70 at 34055.06, Nasdaq -262.59 at 12912.06, S&P -93.57 at 4300.08
[BRIEFING.COM] The S&P 500 is currently down 2.2%, which would also be its decline for the week.

One last look at the sectors shows materials (-3.4%), health care (-3.1%), and communication services (-2.9%) sectors each down by around 3%, while the utilities (-0.9%) and consumer staples (-0.9%) sectors trade lower by around 1%.

WTI crude futures settled lower by $1.79 (-1.7%) to $102.00/barrel.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34792.76 -368.03 (-1.05%)
Nasdaq 13174.65 -278.41 (-2.07%)
SP 500 4393.65 -65.79 (-1.48%)
10-yr Note -5/32 2.904
NYSE Adv 594 Dec 2602 Vol 956.6 mln
Nasdaq Adv 1029 Dec 3330 Vol 5.1 bln

Industry Watch
Strong: Consumer Staples
Weak: Energy, Communication Services, Materials, Information Technology

Moving the Market

-- S&P 500 unable to stay above 200-day moving average (4497) and falls below 50-day moving average (4413)

-- Pleasing earnings news from diverse batch of companies, including Tesla (TSLA)

-- Fed Chair Powell not ready to declare peak inflation and says Fed could move to tight policy after reaching a neutral rate, if necessary

-- Treasury yields push higher

Stocks fade early gains and close sharply lower
21-Apr-22 16:15 ET
Dow -368.03 at 34792.76, Nasdaq -278.41 at 13174.65, S&P -65.79 at 4393.65

[BRIEFING.COM] The S&P 500 fell 1.5% on Thursday, fading an early 1.2% gain, as technical factors, rising interest rates, and hawkish-sounding Fed commentary overshadowed a batch of pleasing earnings news.

The Nasdaq Composite (-2.1%), Dow Jones Industrial Average (-1.1%), and Russell 2000 (-2.3%) also coughed up early gains and closed sharply lower.

All 11 S&P 500 sectors closed lower in a steady decline with energy (-3.1%) and communication services (-2.4%) taking a brunt of the damage. The consumer staples sector (-0.1%) outperformed on a relative basis with a 0.1% decline.

Tesla (TSLA 1008.78, +31.58, +3.2%) was the main driver in early action, with shares rallying as much as 12% after the company topped earnings estimates and reaffirmed its multi-year growth expectations. Like the broader market, though, TSLA shares cooled off.

Investors seemed to first lose confidence as the S&P 500 couldn't stay above its 200-day moving average (4497) early in the day. The benchmark index ultimately fell below its 50-day moving average (4413) on a closing basis.

Risk sentiment was further pressured as the 10-yr yield flirted with 2.96%, and Fed Chair Powell said he wasn't ready to declare peak inflation, adding that the Fed could move to a tight policy after reaching a neutral rate, if necessary. On a related note, Chicago Fed President Evans (FOMC voter in 2023) plans to retire in early 2023.

The 10-yr yield did calm down a bit, settling eight basis points higher at 2.92%, while the 2-yr yield rose 12 basis points to 2.69%. The U.S. Dollar Index increased 0.2% to 100.60. WTI crude futures rose 1.6%, or $1.62, to $104.02/barrel.

Nevertheless, the upwards trend in rates kept a lid on the growth stocks. The streaming space, meanwhile, couldn't catch a break with an announcement from Warner Bros. Discovery (WBD 21.45, -1.56, -6.8%) that it will shut down CNN+ on April 30.

In other earnings news, AT&T (T 20.21, +0.78, +4.0%), Dow Inc. (DOW 69.51, +1.97, +2.9%), Nucor (NUE 175.59, +6.34, +3.8%), American Airlines (AAL 20.22, +0.74, +3.8%), United Airlines (UAL 50.85, +4.33, +9.3%), and Alaska Air (ALK 58.78, +0.09, +0.2%) each closed higher following their earnings reports.

Reviewing Thursday's economic data:

Initial jobless claims for the week ending April 16 decreased by 2,000 to 184,000 (Briefing.com consensus 195,000). Continuing jobless claims for the week ending April 9 decreased by 58,000 to 1.417 million, which is the lowest level since February 21, 1970.
The key takeaway from the report is that it covered the week in which the survey for the April employment report was conducted. The decidedly low level of initial claims should feed expectations for strong nonfarm payrolls growth in April.
The Philadelphia Fed Index for April decreased to 17.6 (Briefing.com consensus 21.0) from 27.4 in March.
The Conference Board's Leading Economic Index (LEI) increased 0.3% m/m in March (Briefing.com consensus 0.3%) following a revised 0.6% increase (from 0.3%) in February.

Looking ahead, investors will receive the preliminary IHS Markit Manufacturing and Services PMIs for April on Friday.

Dow Jones Industrial Average -4.3% YTD
S&P 500 -7.8% YTD
Russell 2000 -11.3% YTD
Nasdaq Composite -15.8% YTD

Crude futures settle on higher note
21-Apr-22 15:30 ET
Dow -333.49 at 34827.30, Nasdaq -269.44 at 13183.62, S&P -60.62 at 4398.82

[BRIEFING.COM] The S&P 500 is down 1.4%, and the Russell 2000 is down 2.5%.

One last look at the sector performances shows energy (-3.2%) and communication services (-2.4%) down between 2-3%, while the consumer staples sector (+0.1%) clings onto a slim gain.

WTI crude futures settled higher by $1.62 (+1.6%) to $104.02/barrel.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34911.30 +499.61 (1.45%)
Nasdaq 13619.65 +287.30 (2.15%)
SP 500 4462.28 +70.60 (1.61%)
10-yr Note -28/32 2.937
NYSE Adv 2160 Dec 1041 Vol 856.3 mln
Nasdaq Adv 3072 Dec 1321 Vol 4.4 bln

Industry Watch
Strong: Consumer Discretionary, Real Estate, Financials, Industrials
Weak: Energy

Moving the Market

-- Stocks gain steam amid contrarian mindset

-- Treasury yields continue to push higher following better-than-expected housing starts/building permits data for March

-- Oil prices drop

Stocks rally even as rates continue to rise
19-Apr-22 16:15 ET
Dow +499.61 at 34911.30, Nasdaq +287.30 at 13619.65, S&P +70.60 at 4462.28

[BRIEFING.COM] The S&P 500 rose 1.6% on Tuesday in a relatively broad-based advance. The Dow Jones Industrial Average (+1.5%) kept pace with the benchmark index while the Nasdaq Composite (+2.2%) and Russell 2000 (+2.0%) outperformed with roughly 2% gains.

Ten of the 11 S&P 500 sectors closed higher with gains ranging from 0.6% (utilities) to 2.9% (consumer discretionary). The exception was the energy sector (-1.0%) amid pronounced weakness in oil ($102.07/bbl, -6.11, -5.7%) and natural gas ($7.17/MMBtu, -0.63, -8.0%) prices.

The broader gains helped the benchmark index close back above its 50-day moving average (4416) after a flat open.

The muted start transpired amid another increase in interest rates, lackluster reactions to earnings reports, and a view from St. Louis Fed President Bullard (FOMC voter) that the fed funds rate should be at 3.50% by the end of the year.

The fed-funds-sensitive 2-yr yield rose 11 basis points to 2.58% while the 10-yr yield rose five basis points to 2.91% after flirting with 1.93% in the wake of better-than-expected housing starts and building permits data for March. The U.S. Dollar Index increased 0.2% to 101.00.

The stock market had plenty of reasons to stay cautious, but the counterintuitive price action suggested the rally keyed off a contrarian mindset. To be fair, the lower oil prices likely helped, as did less-hawkish commentary from Chicago Fed President Evans and Atlanta Fed President Bostic, both of whom are not FOMC voters this year.

Shares of Johnson & Johnson (JNJ 183.08, +5.42, +3.1%) hit a fresh all-time high, putting the focus on the company's EPS beat instead of its below-consensus FY22 EPS guidance. Fellow Dow component Travelers (TRV 176.16, -9.06, -4.9%) fell 5% despite beating top and bottom-line estimates.

Separately, airline stocks extended their recent outperformance following the removal of the mask mandate for airline travel and public transportation. The U.S. Global Jets ETF (JETS 22.11, +0.60) rose 2.8% today.

Reviewing Tuesday's economic data:

Housing starts increased 0.3% month-over-month in March to a seasonally adjusted annual rate of 1.793 million units (Briefing.com consensus 1.750 million) while permits increased 0.4% month-over-month to a seasonally adjusted annual rate of 1.873 million.
The key takeaway from the report is that the upside was driven entirely by multi-unit activity. Starts for single-family homes and permits for single-family homes were down 1.7% and 4.8% month-over-month, respectively, reflecting the challenges builders are facing with supply chain issues, rising costs for land and labor, and the dent in homebuyer confidence and affordability that has stemmed from rising mortgage rates.

Looking ahead, investors will receive Existing Home Sales for March, the April Beige Book, and the weekly MBA Mortgage Applications Index on Wednesday.

Dow Jones Industrial Average -3.9% YTD
S&P 500 -6.4% YTD
Russell 2000 -9.6% YTD
Nasdaq Composite -13.0% YTD

Crude futures fall nearly 6.0%
19-Apr-22 15:30 ET
Dow +513.68 at 34925.37, Nasdaq +293.87 at 13626.22, S&P +73.79 at 4465.47

[BRIEFING.COM] The S&P 500 has pushed higher and is now up 1.7% on no specific news catalyst.

One last look at the S&P 500 sectors shows consumer discretionary (+3.0%), communication services (+2.2%), and real estate (+2.1%) up between 2-3% while the energy sector (-0.7%) continues to trade lower.

WTI crude futures settled sharply lower by $6.11 (-5.7%) to $102.07/barrel. Profit-taking pressure might have resulted from the IMF lowering its 2022 global growth outlooks for 2022 and 2023 to 3.6% in both years.

[ReturntoSender]

Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34411.69 -39.54 (-0.11%)
Nasdaq 13332.35 -18.72 (-0.14%)
SP 500 4391.68 -0.90 (-0.02%)
10-yr Note -2/32 2.862
NYSE Adv 1209 Dec 2049 Vol 828.5 mln
Nasdaq Adv 1548 Dec 3121 Vol 4.2 bln

Industry Watch
Strong: Energy, Financials, Consumer Discretionary, Information Technology
Weak: Health Care, Consumer Staples, Utilities, Industrials

Moving the Market

-- Lack of conviction in front of diversified batch of Q1 earnings reports

-- Treasury yields, oil prices push higher

-- Technical resistance

Little change at the index level
18-Apr-22 16:15 ET
Dow -39.54 at 34411.69, Nasdaq -18.72 at 13332.35, S&P -0.90 at 4391.68

[BRIEFING.COM] The S&P 500 (unch) closed little changed on Monday in a session that lacked conviction. The Nasdaq Composite (-0.1%) and Dow Jones Industrial Average (-0.1%) both declined 0.1% while the small-cap Russell 2000 fell 0.7%.

Buying interest was restrained by the upwards pressure in interest rates and oil prices ($108.18, +1.24, +1.2%), technical resistance near the underside of the S&P 500's 50-day moving average (4417), and lingering growth concerns attributed to the Fed, China's COVID restrictions, and the Ukraine-Russia situation.

The defensive-oriented S&P 500 health care (-1.1%), consumer staples (-0.8%), utilities (-0.5%), and real estate (-0.3%) sectors were among today's laggards. Conversely, the energy sector (+1.5%) unsurprisingly outperformed given the higher oil prices.

The financials (+0.6%) and information technology (+0.3%) sectors provided key support with the latter benefiting from dip-buying activity in the semiconductor stocks. The Philadelphia Semiconductor Index rose 1.9%.

Separately, there might have been a wait-and-see mindset for the diversified batch of Q1 earnings reports this week. Today, the market heard from more banks.

Bank of America (BAC 38.85, +1.28, +3.4%) stood out with a 3% gain after beating EPS estimates and providing encouraging commentary about a strong recovery in spending trends. Charles Schwab (SCHW 74.94, -7.81, -9.4%) dropped 9% on disappointing results while BNY Mellon (BK 46.21, -1.08, -2.3%) set a 52-week low after reporting in-line results.

Shares of Twitter (TWTR 48.45, +3.37, +7.5%), meanwhile, jumped 7.5% as the company adopted a "poison pill" measure amid takeover pressure.

In the Treasury market, the 2-yr yield increased two basis points to 2.47%, and the 10-yr yield increased three basis points to 2.86% after flirting with 2.88% overnight. The U.S. Dollar Index increased 0.5% to 100.80.

Monday's economic data was limited to the NAHB Housing Market Index for April, which decreased two points to 77, as expected. Looking ahead, investors will receive Housing Starts and Building Permits for March on Tuesday.

Dow Jones Industrial Average -5.3% YTD
S&P 500 -7.9% YTD
Russell 2000 -11.4% YTD
Nasdaq Composite -14.8% YTD

Crude futures settle above $108 per barrel
18-Apr-22 15:25 ET
Dow -70.71 at 34380.52, Nasdaq -33.01 at 13318.06, S&P -6.97 at 4385.61

[BRIEFING.COM] The S&P 500 has slipped back into negative territory with a 0.2% decline on no specific news. The Russell 2000 underperforms with a 0.5% decline.

One last look at the sectors shows mixed results: health care (-1.3%), utilities (-0.8%), and real estate (-0.5%) are down the most, while energy (+1.4%), financials (+0.5%), and consumer discretionary (+0.3%) outperform in positive territory.

WTI crude futures settled higher by $1.24 (+1.2%) to $108.18/barrel.

[ReturntoSender]

Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34451.23 -113.36 (-0.33%)
Nasdaq 13351.07 -292.51 (-2.14%)
SP 500 4392.58 -54.01 (-1.21%)
10-yr Note -11/32 2.830
NYSE Adv 1159 Dec 2042 Vol 919.8 mln
Nasdaq Adv 1517 Dec 3003 Vol 4.5 bln

Industry Watch
Strong: Energy, Utilities
Weak: Information Technology, Consumer Discretionary, Communication Services

Moving the Market

-- Treasury yields bounce back, undercut growth stocks, amid retail sales, unemployment, inflation data

-- S&P 500 closes below 50-day moving average (4418)

-- Mixed earnings reactions

Stocks slump into extended weekend
14-Apr-22 16:15 ET
Dow -113.36 at 34451.23, Nasdaq -292.51 at 13351.07, S&P -54.01 at 4392.58

[BRIEFING.COM] The S&P 500 fell 1.2% on Thursday, slumping into the long weekend as a sharp rebound in Treasury yields weighed heavily on the growth stocks. The Nasdaq Composite underperformed with a 2.1% decline, the Russell 2000 declined 1.0%, and the Dow Jones Industrial Average declined 0.3%.

Influential losses came from the information technology (-2.5%), communication services (-1.8%), and consumer discretionary (-1.6%) sectors, which dragged the S&P 500 below its 50-day moving average (4418) in a steady decline. The energy sector (+0.4%) showed relative strength.

While corporate news captured investors' attention today, the real market driver was the Treasury market in response to the latest economic data. Retail sales, excluding autos, topped expectations with a 1.1% m/m increase in March (Briefing.com consensus 0.9%), weekly jobless claims held near historically low levels, and import/export data for March remained elevated.

The growth/inflation-sensitive 10-yr yield jumped 14 basis points to 2.83% while the fed-funds-sensitive 2-yr yield jumped 11 basis points to 2.45%. The U.S. Dollar Index rose 0.5% to 100.34. Crude futures settled close to $107.00 per barrel ($106.94, +2.69, +2.7%).

The upwards pressure in long-term rates fueled valuation concerns in the mega-cap domain, but to be fair, selling was relatively broad-based. The Vanguard Mega Cap Growth ETF (MGK 220.13, -4.91) fell 2.2%, versus a 0.7% decline for the Invesco S&P 500 Equal Weight ETF (RSP 155.53, -1.07).

Interestingly, the curve-steepening bias in the Treasury market provided little relief for the financials sector, which featured weakness in Wells Fargo (WFC 46.35, -2.19, -4.5%) following its revenue miss.

Fellow banks Morgan Stanley (MS 84.79, +0.66, +0.8%), Goldman Sachs (GS 321.64, -0.33, -0.1%), and Citigroup (C 50.93, +0.79, +1.6%) beat top and bottom-line estimates, as did Dow component UnitedHealth (UNH 534.82, -2.18, -0.4). Earnings reactions were mixed.

Twitter (TWTR 45.08, -0.77, -1.7%), meanwhile, was the most widely-discussed stock today after Elon Musk offered to acquire the company for $54.20 per share in cash. The market, however, didn't believe Twitter would accept the deal, evidenced by the 2% decline in TWTR shares.

Reviewing Thursday's economic data:

Total retail sales increased 0.5% month-over-month in March (Briefing.com consensus 0.6%) following an upwardly revised 0.8% increase (from 0.3%) in February. Excluding autos, retail sales jumped 1.1% (Briefing.com consensus 0.9%) following an upwardly revised 0.6% increase (from 0.2%) in February.
The key takeaway from the report is that retail sales were down in March (-0.3%) excluding gasoline station sales, which suggests high prices at the pump and elsewhere detracted from spending on other goods.
Initial jobless claims increased by 18,000 to 185,000 (Briefing.com consensus 175,000) for the week ending April 9. Continuing jobless claims for the week ending April 2 were down by 48,000 to 1.475 million.
The key takeaway from the report is that jobless claims are still running near historically low levels at a time of historically high job openings, which fits the script of a tight labor market that should keep upward pressure on wages.
The preliminary University of Michigan Index of Consumer Sentiment for April jumped to 65.7 (Briefing.com consensus 58.8) from the final reading of 59.4 for March. It was a nice improvement, although the April reading is still one of the lowest readings over the last 10 years.
The key takeaway from the report is that the improvement was driven almost entirely by the Expectations Index, which jumped on improved wage expectations and a belief that gas price increases will moderate substantially in the year ahead.
Import prices rose 2.6% in March after increasing 1.6% in February. Excluding oil, import prices rose 1.2% after increasing 0.7% in February. Export prices rose 4.5% after increasing 3.0% in February. Excluding agriculture, export prices also rose 4.5% after increasing 3.0% in February.
Business inventories increased 1.5% m/m in February (Briefing.com consensus 1.3%) following a revised 1.3% increase (from -0.2%) in January.

Looking ahead, investors will receive the NAHB Housing Market Index for April when the market reopens for trading on Monday.

Dow Jones Industrial Average -5.2% YTD
S&P 500 -7.8% YTD
Russell 2000 -10.7% YTD
Nasdaq Composite -14.7% YTD

Crude futures top $106 per barrel
14-Apr-22 15:30 ET
Dow -9.70 at 34554.89, Nasdaq -251.44 at 13392.14, S&P -39.12 at 4407.47

[BRIEFING.COM] The S&P 500 is down 0.9% to trade near session lows. The benchmark index is on track to end the week with a 1.9% decline.

One last look at the sectors shows information technology (-2.1%), communication services (-1.7%), and consumer discretionary (-1.3%) sectors down between 1-2% amid the rise in long-term rates, while the energy (+0.8%) and utilities (+0.3%) sectors show relative strength.

WTI crude futures settled higher by $2.69 (+2.6%) to $106.94/barrel.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34564.59 +344.23 (1.01%)
Nasdaq 13643.58 +272.02 (2.03%)
SP 500 4446.59 +49.14 (1.12%)
10-yr Note +3/32 2.698
NYSE Adv 2373 Dec 858 Vol 790.0 mln
Nasdaq Adv 3348 Dec 1222 Vol 4.8 bln

Industry Watch
Strong: Consumer Discretionary, Information Technology, Communication Services
Weak: Financials, Utilities

Moving the Market

-- Not deterred by EPS miss from JPMorgan Chase (JPM) or hotter-than-expected PPI data for March

-- Investors buy the dip

-- Treasury yields decline for second straight day

Undeterred by JPM earnings miss and hot PPI data
13-Apr-22 16:15 ET
Dow +344.23 at 34564.59, Nasdaq +272.02 at 13643.58, S&P +49.14 at 4446.59

[BRIEFING.COM] The S&P 500 rose 1.1% on Wednesday in a relatively broad-based advance led by the growth stocks. The Dow Jones Industrial Average (+1.0%) rose comparably, while the Nasdaq Composite (+2.0%) and Russell 2000 (+1.9%) outperformed with roughly 2% gains.

Investors assumed a dip-buying mindset, undeterred by a larger than expected 1.4% m/m increase in the Producer Price Index (PPI) for March (Briefing.com consensus 1.2%) and an earnings miss from JPMorgan Chase (JPM 127.30, -4.24, -3.2%).

The S&P 500 reclaimed its 50-day moving average (4422) on a closing basis amid gains in nine of its 11 sectors. Six sectors advanced at least 1.0%, including a 2.5% gain for the consumer discretionary sector (+2.5%).

Airline stocks were particularly strong after Delta Air Lines (DAL 41.02, +2.40, +6.2%) beat top and bottom-line estimates and Delta's CEO provided upbeat bookings commentary. The U.S. Global Jets ETF (JETS 21.65, +1.09) rose 5.3%.

Conversely, the financials (-0.1%) and utilities (-0.2%) sectors closed lower, with the former pressured by JPM's disappointing earnings results and a second-straight decline in Treasury yields.

The 2-yr yield decreased five basis points to 2.34%, and the 10-yr yield decreased four basis points to 2.69%. The U.S. Dollar Index fell 0.4% to 99.88.

The decline in rates helped alleviate some of the valuation concerns in the growth stocks, including the mega-caps. The Vanguard Mega Cap Growth ETF (MGK 225.04, +4.02) rose 1.8%, versus a 1.1% gain for the Invesco S&P 500 Equal Weight ETF (RSP 156.60, +1.75).

Demand for Treasuries was presumably influenced by the peak inflation narrative and cautious-sounding commentary from JPM CEO Jamie Dimon about the economic challenges ahead. The PPI report wasn't that surprising, either, after the hot CPI report yesterday, suggesting the report was already priced in.

WTI crude futures, meanwhile, flirted with $105 per barrel ($104.25, +3.56, +3.5%) despite bearish inventory data from the EIA and a downwardly revised 2022 global demand growth forecast from the IEA.

Reviewing Wednesday's economic data:

The Producer Price Index for final demand jumped 1.4% month-over-month in March (Briefing.com consensus 1.2%) following an upwardly revised 0.9% increase (from 0.8%) in February. The index for final demand, less foods and energy, rose 1.0% month-over-month (Briefing.com consensus 0.5%) following an upwardly revised 0.4% increase (from 0.2%) in February. On a year-over-year basis, the index for final demand was up 11.2% while the index for final demand, less foods and energy, was up 9.2%. The accompanying tables for the report show a lengthy list of double-digit percentage increases on a year-over-year basis for many categories.
The key takeaway from the report is that it is a signpost of potential profit margin pressures that are going to intensify if consumers start showing more resistance to price increases. Beyond that, it's another reminder that the Fed needs to get aggressive with its policy to get these rampant inflation pressures in check.
The weekly MBA Mortgage Applications Index decreased 1.3% following a 6.3% decline in the prior week.

Looking ahead to Thursday, investors will receive Retail Sales for March, weekly Initial and Continuing Claims, the preliminary University of Michigan Index of Consumer Sentiment for April, Import and Export Prices for March, and Business Inventories for February.

Dow Jones Industrial Average -4.9% YTD
S&P 500 -6.7% YTD
Russell 2000 -9.8% YTD
Nasdaq Composite -12.8% YTD

Crude futures stay above $100
13-Apr-22 15:30 ET
Dow +329.22 at 34549.58, Nasdaq +283.23 at 13654.79, S&P +49.69 at 4447.14

[BRIEFING.COM] The S&P 500 is up 1.2% and on track to close above its 50-day moving average (4422).

One last look at the S&P 500 sectors shows consumer discretionary (+2.6%), information technology (+1.7%), and communication services (+1.4%) in the top three positions, while the financials (-0.2%) and utilities (-0.3%) underperform with modest losses.

WTI crude futures settled higher by $3.56 (+3.5%) to $104.25/barrel.

[ReturntoSender]

Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34220.36 -87.72 (-0.26%)
Nasdaq 13371.56 -40.38 (-0.30%)
SP 500 4397.45 -15.08 (-0.34%)
10-yr Note +5/32 2.724
NYSE Adv 1588 Dec 1604 Vol 873.0 mln
Nasdaq Adv 1920 Dec 2533 Vol 4.8 bln

Industry Watch
Strong: Energy, Consumer Discretionary
Weak: Health Care, Financials, Communication Services

Moving the Market

-- Stocks fade early gains

-- Better-than-feared CPI report

-- Treasury yields drop

-- S&P 500 falls back below 50-day moving average (4425)

Investors sell early rally effort
12-Apr-22 16:15 ET
Dow -87.72 at 34220.36, Nasdaq -40.38 at 13371.56, S&P -15.08 at 4397.45

[BRIEFING.COM] The S&P 500 declined 0.3% on Tuesday, fading an early 1.3% gain that was rooted in hopes that inflation rates could be peaking. The Nasdaq Composite (-0.3%) and Dow Jones Industrial Average (-0.3%) followed similar price action, while the Russell 2000 (+0.3%) eked out a gain.

Seven of the 11 S&P 500 sectors closed lower after each spent time in positive territory during the day. The financials (-1.1%) and health care (-1.0%) sectors declined at least 1.0%, while the energy (+1.7%), utilities (+0.4%), and consumer discretionary (+0.2%) sectors closed higher.

Early in the day, the Consumer Price Index (CPI) report for March was being construed as a sign of peak inflation and a corresponding excuse to rally. Total CPI rose 1.2% m/m, as expected, while core CPI, which excludes food and energy, increased by just 0.3% (Briefing.com consensus 0.5%).

The fast start for the market was further supported by technical factors as the S&P 500 temporarily reclaimed its 50-day moving average (4424) and short-covering activity among investors caught off guard by the market's positive reaction to the CPI data.

The rally excuse also pertained to the Treasury market, where the 2-yr yield subsequently dropped 11 basis points to 2.39% and the 10-yr yield dropped six basis points to 2.73%. The U.S. Dollar Index topped the 100.00 level (100.31, +0.37, +0.4%) for its ninth-straight advance.

Unfortunately, the stock market proceeded to drift lower the rest of the day amid a lack follow-through buying interest and a violation of the S&P 500's 50-day moving average. The benchmark index closed below the key technical level.

The nervous price action was presumably tied to a recognition that the Fed is poised to hike rates by 50 basis points next month, underlying growth concerns, uncertainty regarding corporate guidance this earnings season, and disappointing earnings reactions in CarMax (KMX 93.33, -9.84, -9.5%) and Albertsons (ACI 31.97, -2.81, -8.1%).

Oil prices reclaimed $100.00 per barrel ($100.69, +6.53, +6.9%), which was cited as an additional drag on sentiment, although the rebound corresponded with the good news that Shanghai started to relax some COVID-19 restrictions.

American Airlines (AAL 17.13, +0.16, +0.9%), meanwhile, provided a lift for the airline industry after raising its Q1 revenue guidance. As a reminder, JPMorgan Chase (JPM 131.54, -1.46, -1.1%) will report earnings prior to Wednesday's open.

Reviewing Tuesday's economic data:

Total CPI increased 1.2% month-over-month in March, as expected, while core CPI, which excludes food and energy, increased a smaller-than-expected 0.3% (Briefing.com consensus 0.5%). That left total CPI up 8.5% year-over-year, the highest 12-month increase since December 1981, and core CPI up 6.5% year-over-year, the highest 12-month increase since August 1982.
The key takeaway from the report is that it is subject to widening interpretations. The popular narrative is that it's hard to believe things will get any worse; therefore, this report is "good" because it must mark peak inflation. The less popular, but practical, narrative is that this report reveals a broadening in inflation pressures that will push the Fed to raise rates by 50 basis points at the next FOMC meeting.
The Treasury Budget showed a $192.7 bln deficit in March versus a $659.6 bln deficit in the same period a year ago. The budget data is not seasonally adjusted, so the March deficit cannot be compared to the February deficit of $216.6 bln.
The budget deficit over the last 12 months is $1.74 trln versus a deficit of $2.20 trln in February.
The NFIB Small Business Optimism Index for March decreased to 93.2 from 95.7 in February.

Looking ahead, investors will receive the Producer Price Index for March and the weekly MBA Mortgage Applications Index on Wednesday.

Dow Jones Industrial Average -5.8% YTD
S&P 500 -7.7% YTD
Russell 2000 -11.5% YTD
Nasdaq Composite -14.5% YTD

Crude futures reclaim $100 per barrel
12-Apr-22 15:30 ET
Dow -188.12 at 34119.96, Nasdaq -84.01 at 13327.93, S&P -29.15 at 4383.38

[BRIEFING.COM] The S&P 500 is trading at session lows with a 0.6% decline while the Russell 2000 trades flat.

Nine of the 11 S&P 500 sectors are trading lower with financials (-1.4%), health care (-1.3%), and communication services (-1.2%) down over 1.0%. The energy (+1.5%) and utilities (+0.2%) sectors, however, are still trading higher.

WTI crude futures settled higher by $6.53 (+6.9%) to $100.69/barrel amid a report from Reuters indicating that Shanghai is relaxing some COVID-19 restrictions.

[ReturntoSender]

Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34308.08 -413.04 (-1.19%)
Nasdaq 13411.94 -299.04 (-2.18%)
SP 500 4412.53 -75.75 (-1.69%)
10-yr Note -4/32 2.752
NYSE Adv 952 Dec 2237 Vol 926.7 mln
Nasdaq Adv 1517 Dec 2948 Vol 4.8 bln

Industry Watch
Strong: Industrials
Weak: Information Technology, Energy, Health Care, Consumer Discretionary

Moving the Market

-- 10-yr yield jumps another seven basis points to 2.78%

-- Growth stocks paced the retreat along with energy stocks

-- S&P 500 closes below 50-day moving average (4427) amid late-day selling

Stocks fall as rates continue to rise
11-Apr-22 16:15 ET
Dow -413.04 at 34308.08, Nasdaq -299.04 at 13411.94, S&P -75.75 at 4412.53

[BRIEFING.COM] The S&P 500 fell 1.7% on Monday, as the market remained pressured by rising rates, technical factors, and growth concerns. The Nasdaq Composite declined 2.2%, the Dow Jones Industrial Average declined 1.2%, and the Russell 2000 declined 0.7%.

The 10-yr yield, specifically, jumped another seven basis points to 2.78% (+45 bps for the month and +127 bps for the year), fueling the valuation-minded selling activity in the growth stocks. Weakening technical factors exacerbated the negative disposition.

The S&P 500 fell further below its 200-day moving average (4493) in early action amid influential weakness in the mega-caps. Moreover, with there being no noticeable interest to buy the dip in front of key CPI data tomorrow, the benchmark index sliced right through its 50-day moving average (4427) late in the session.

The late-day slide took all 11 S&P 500 sectors into negative territory on a closing basis. The information technology (-2.6%), consumer discretionary (-1.9%), and communication services (-1.7%) sectors, which are home to the mega-caps, were influential drags on the market.

The energy sector (-3.1%) was the weakest performer, though, as oil prices dropped below $95.00 per barrel ($94.16/bbl, -4.02, -4.1%), which was attributed to demand/growth concerns resulting from the COVID lockdowns in Shanghai.

The industrials (-0.3%), materials (-0.5%), financials (-0.5%), and consumer staples (-0.5%) sectors outperformed on a relative basis with modest declines.

AT&T (T 19.63, +1.41, +7.7%) was an individual standout, rising 7.7% after completing its planned spin-off of its WarnerMedia segment, The Wall Street Journal reported AT&T is aiming to increase prices and reduce costs, and JP Morgan upgraded the stock to Overweight from Neutral.

The 2-yr yield, meanwhile, decreased two basis points to 2.50%. The U.S. Dollar Index (99.99, +0.20, +0.2%) rose for the eighth straight session. The CBOE Volatility Index jumped 15.0% to 24.34 amid increased hedging interest given the persistent selling pressure in equities.

Investors did not receive any economic on Monday. Looking ahead, the Consumer Price Index for March and the Treasury Budget for March will be released on Tuesday.

Dow Jones Industrial Average -5.6% YTD
S&P 500 -7.4% YTD
Russell 2000 -11.8% YTD
Nasdaq Composite -14.3% YTD

Crude futures fall 4%
11-Apr-22 15:30 ET
Dow -308.48 at 34412.64, Nasdaq -245.64 at 13465.34, S&P -62.13 at 4426.15

[BRIEFING.COM] The S&P 500 is trading at session lows with a 1.4% decline, slipping just below its 50-day moving average (4427).

Ten of the 11 S&P 500 sectors are trading lower, paced by the energy (-2.7%) and information technology (-2.7%) sectors with losses over 2.0%. The industrials sector (+0.1%) is the only sector trading higher -- barely.

WTI crude futures settled sharply lower by $4.02 (-4.1%) to $94.16/barrel.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34721.12 +137.55 (0.40%)
Nasdaq 13710.98 -186.30 (-1.34%)
SP 500 4488.28 -11.93 (-0.27%)
10-yr Note -26/32 2.713
NYSE Adv 1373 Dec 1789 Vol 846.2 mln
Nasdaq Adv 1720 Dec 2684 Vol 4.4 bln

Industry Watch
Strong: Energy, Financials, Health Care, Materials, Consumer Staples
Weak: Information Technology, Consumer Discretionary, Communication Services, Industrials

Moving the Market

-- Value outperforms growth

-- Interest rates continue to creep higher, weighing on the growth stocks

-- S&P 500 closes below 200-day moving average (4493)

Disparate performances in Dow and Nasdaq
08-Apr-22 16:15 ET
Dow +137.55 at 34721.12, Nasdaq -186.30 at 13710.98, S&P -11.93 at 4488.28

[BRIEFING.COM] The S&P 500 declined 0.3% on Friday in a mixed session in which value stocks outperformed at the expense of growth stocks. The growth/value divide was evident in the disparity between the Nasdaq Composite (-1.3%) and Dow Jones Industrial Average (+0.4%). The Russell 2000 lost 0.8%.

Growth stocks remained pressured by valuation concerns as long-term interest rates continued to creep higher: the 10-yr yield rose five basis points to 2.71% (+34 bps for the week). Shorter-dated rates also pushed higher, with the 2-yr yield increasing five basis points to 2.52% (+10 bps for the week).

The mega-caps within the S&P 500 information technology (-1.4%), consumer discretionary (-1.0%), and communication services (-0.7%) sectors were among the heaviest weights on the market. The Vanguard Mega Cap Growth ETF (MGK 227.74, -2.78) fell 1.2%.

Transportation stocks also struggled amid underlying growth concerns and negative-minded analyst recommendations. BofA Securities downgraded both Union Pacific (UNP 241.98, -2.88, -1.2%) and UPS (UPS 191.02, -1.68, -0.9%) to Neutral from Buy. The Dow Jones Transportation Average fell 0.9%.

Conversely, the financials (+1.0%) and energy (+2.8%) sectors were the strongest performers amid the higher rates and higher oil prices ($98.18/bbl, +1.88, +2.0%). The defensive-oriented health care (+0.6%), consumer staples (+0.4%), utilities (+0.3%), and real estate (+0.3%) sectors added to their weekly gains.

Blue-chips like UnitedHealth (UNH 545.96, +9.01, +1.7%), Walmart (WMT 157.41, +0.87, +0.6%), and Coca-Cola (KO 63.83, +0.39, +0.6%) set all-time highs, contributing to the outperformance of the Dow, on no specific news. Note, UNH will be among the first batch of companies to report Q1 earnings next week.

Separately, the S&P 500 wavered around its 200-day moving average (4493) the entire session, ultimately closing below the key technical level amid some slippage activity into the close.

The U.S. Dollar Index (99.84, +0.09, +0.1%), meanwhile, rose for the seventh straight session and briefly topped the 100.00 level.

Friday's economic data was limited to Wholesale Inventories, which increased 2.5% m/m in February (Briefing.com consensus 2.1%) following a revised 1.1% increase (from 0.8% increase) in January. There is no data of note scheduled for Monday.

Dow Jones Industrial Average -4.5% YTD
S&P 500 -5.8% YTD
Russell 2000 -11.2% YTD
Nasdaq Composite -12.4% YTD

Crude futures rise 2%
08-Apr-22 15:30 ET
Dow +226.21 at 34809.78, Nasdaq -133.39 at 13763.89, S&P +2.38 at 4502.59

[BRIEFING.COM] The S&P 500 is trading little changed while the Russell 2000 trades lower by 0.2%.

One last look at the sector performances shows information technology (-1.1%), consumer discretionary (-0.6%), and communication services (-0.4%) still holding back the market. Conversely, the energy (+3.0%) and financials (+1.3%) sectors continue to sport decent gains amid higher Treasury yields and oil prices.

WTI crude futures settled higher by $1.88 (+2.0%) to $98.18/barrel. The 10-yr yield settled higher by five basis points to 2.71%.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34583.57 +87.06 (0.25%)
Nasdaq 13897.28 +8.48 (0.06%)
SP 500 4500.21 +19.06 (0.43%)
10-yr Note -4/32 2.639
NYSE Adv 1491 Dec 1660 Vol 1.0 bln
Nasdaq Adv 1858 Dec 2570 Vol 4.7 bln

Industry Watch
Strong: Health Care, Consumer Staples, Energy
Weak: Real Estate, Utilities, Communication Services, Financials

Moving the Market

-- Large-cap indices close higher, recovering early losses on no specific news

-- S&P 500 reclaims 200-day moving average (4492) on closing basis

-- Longer-dated Treasury yields creep higher, steepening the curve

Large-cap indices close higher, recovering early losses
07-Apr-22 16:20 ET
Dow +87.06 at 34583.57, Nasdaq +8.48 at 13897.28, S&P +19.06 at 4500.21

[BRIEFING.COM] The S&P 500 increased 0.4% on Thursday, overcoming a 0.7% intraday decline on no specific news catalysts. The Nasdaq Composite (+0.1%) and Dow Jones Industrial Average (+0.3%) also recouped intraday losses while the Russell 2000 (-0.4%) still closed lower despite a recovery effort.

Two early headwinds for the market included technical resistance at the S&P 500's 200-day moving average (4492) and upwards pressure in long-term interest rates. The 10-yr yield settled higher by five basis points to 2.66% after trading at 2.56% overnight.

Investors, also cognizant of a hawkish-minded Fed, continued to lean defensively as the market drifted lower throughout the morning. Equities, however, turned around in the afternoon without a news catalyst, perhaps amid a contrarian mindset as sentiment had gotten too bearish.

The S&P 500 reclaimed its 200-day moving average on a closing basis with the help of seven of its 11 sectors. The health care (+1.9%), energy (+1.4%), and consumer staples (+1.2%) sectors led the advance with gains over 1.0%.

Conversely, the real estate (-0.9%), communication services (-0.7%), utilities (-0.3%), and financials (-0.1%) sectors closed lower. The CBOE Volatility Index (21.55, -0.55, -2.5%) did, too, as hedging interest waned amid the rebound-minded action.

In corporate news, shares of Costco (COST 608.05, +23.26, +4.0%) hit an all-time high after the company reported adjusted March comparable sales growth of 12.2% while HP Inc. (HPQ 40.06, +5.15, +14.8%) surged 15% after Warren Buffett's Berkshire Hathaway (BRK.B 346.51, +1.80, +0.5%) disclosed a stake in the company.

Back in the Treasury market, the 2s10s spread increased to 19 basis points from 12 basis points yesterday. The 2-yr yield decreased two basis points to 2.47% while the 10-yr yield, as noted above, settled at 2.66%. The U.S. Dollar Index increased 0.2% to 99.79. WTI crude futures fell 0.3%, or $0.29, to $96.30/bbl.

Reviewing Thursday's economic data:

Initial claims for the week ending April 2 dropped by 5,000 to 166,000 (Briefing.com consensus 200,000). Continuing claims for the week ending March 26 increased by 17,000 to 1.523 million.
The key takeaway from the report is that it was influenced by revisions to seasonal adjustment factors. Still, the low level of initial claims following the revisions remains indicative of a tight labor market.
Consumer credit increased by $41.8 billion in February (Briefing.com consensus $15.5 billion). The prior month saw an upward revision to $8.9 bln from $6.8 bln.
In February, consumer credit increased at a seasonally adjusted annual rate of 11.3%. Revolving credit increased at an annual rate of 20.7%, while nonrevolving credit increased at an annual rate of 8.4%.

Looking ahead, investors will receive the Wholesale Inventories report for February on Friday.

Dow Jones Industrial Average -4.8% YTD
S&P 500 -5.6% YTD
Russell 2000 -10.5% YTD
Nasdaq Composite -11.2% YTD

Crude futures settle slightly lower
07-Apr-22 15:30 ET
Dow +134.68 at 34631.19, Nasdaq +55.70 at 13944.50, S&P +29.33 at 4510.48

[BRIEFING.COM] The S&P 500 is up 0.7% while the Russell 2000 is still stuck in negative territory with a 0.2% decline.

One last look at the sectors shows health care (+2.0%), consumer staples (+1.2%), and energy (+1.1%) up between 1-2%, while the real estate (-0.7%), utilities (-0.5%), and communication services (-0.4%) sectors are the only sectors trading lower.

WTI crude futures settled lower by $0.29 (-0.3%) to $96.30/barrel.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34496.51 -144.67 (-0.42%)
Nasdaq 13888.80 -315.35 (-2.22%)
SP 500 4481.15 -43.97 (-0.97%)
10-yr Note -26/32 1.0 bln
NYSE Adv 904 Dec 2300 Vol 1.1 bln
Nasdaq Adv 1357 Dec 2919 Vol 5.2 bln

Industry Watch
Strong: Utilities, Health Care, Consumer Staples, Real Estate, Energy
Weak: Information Technology, Consumer Discretionary, Communication Services

Moving the Market

-- Lingering concerns about the Fed's hawkish mindset, rising interest rates, and slower economic growth

-- Growth stocks pace retreat for second straight day as Treasury yields hit multi-year highs

-- FOMC Minutes corroborate Fed's intentions to tighten policy more aggressively

Growth stocks pace retreat for second day in a row
06-Apr-22 16:15 ET
Dow -144.67 at 34496.51, Nasdaq -315.35 at 13888.80, S&P -43.97 at 4481.15

[BRIEFING.COM] The S&P 500 fell 1.0% on Wednesday, as concerns about the Fed's hawkish mindset, rising interest rates, and slower economic growth continued to pressure risk sentiment. Growth stocks paced the retreat and accounted for the underperformance of the Nasdaq Composite (-2.2%).

The Russell 2000 struggled with a 1.4% decline while the Dow Jones Industrial Average declined just 0.4%.

Fed Governor Brainard's (FOMC voter) hawkish expectations for monetary policy remained fresh on the market's mind, such that today's trading dynamics were awfully similar to yesterday.

For example, interest rates hit fresh multi-year highs, which worked against the mega-caps within the S&P 500 information technology (-2.6%), consumer discretionary (-2.6%), and communication services (-2.1%) sectors for valuation reasons. The Vanguard Mega Cap Growth ETF (MGK 229.78, -5.89) fell 2.5%.

In addition, investors continued to lean defensively into the utilities (+2.0%), health care (+1.6%), real estate (+1.6%), and consumer staples (+1.4%) sectors. The energy sector (+0.5%), to be fair, also landed in the green despite a 5% decline in oil prices ($96.59/bbl, -4.94, -4.9%).

The S&P 500 fell back below its 200-day moving average (4490), but the benchmark index briefly peaked above the key technical level following the release of the FOMC Minutes for March. The minutes corroborated Ms. Brainard's concerns about inflation and the need to tighten policy more aggressively.

Participants generally agreed it would be appropriate to reduce the balance sheet by $95 billion per month (about $60 billion for Treasury securities and about $35 billion for agency MBS) and that one or more 50 basis point increases in the fed funds rate could be appropriate at future meetings.

Treasury yields, which had backtracked from overnight highs, also saw some volatility following the FOMC Minutes. The 2-yr yield decreased two basis points to 2.49% (topped 2.60% overnight) while the 10-yr yield rose six basis points to 2.61% (topped 2.65% overnight). The U.S. Dollar Index rose 0.1% to 99.61.

A separate story of note was in the airline industry. JetBlue Airways (JBLU 12.45, -1.19, -8.7%) proposed a $3.6 billion, or $33.00/share, cash offer for Spirit Airlines (SAVE 26.28, -0.64, -2.4%), which had previously agreed to merge with Frontier Group (ULCC 10.61, -1.31, -11.0%).

Reviewing Wednesday's economic data:

The weekly MBA Mortgage Applications Index fell 6.3% following a 6.8% decline in the prior week.
Crude oil inventories had a build of 2.42 mln barrels following a draw of 3.45 mln barrels in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report and Consumer Credit for February on Thursday.

Dow Jones Industrial Average -5.1% YTD
S&P 500 -6.0% YTD
Russell 2000 -10.2% YTD
Nasdaq Composite -11.2% YTD

Crude futures fall 5%
06-Apr-22 15:30 ET
Dow -237.68 at 34403.50, Nasdaq -333.22 at 13870.93, S&P -54.03 at 4471.09

[BRIEFING.COM] The S&P 500 is down 1.2% after briefly peaking above its 200-day moving average (4490).

One last look at the S&P 500 sectors shows influential losses in the information technology (-2.6%), consumer discretionary (-2.8%), and communication services (-2.3%) sectors, while the utilities (+1.3%), health care (+1.1%), consumer staples (+1.1%), and real estate (+0.9%) sectors continue to embody a defensive mindset.

WTI crude futures settled lower by $4.94 (-4.9%) to $96.59/barrel amid bearish inventory data and growth concerns.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34921.94 +103.67 (0.30%)
Nasdaq 14532.54 +271.05 (1.90%)
SP 500 4582.64 +36.78 (0.81%)
10-yr Note -1/32 2.407
NYSE Adv 1815 Dec 1479 Vol 917.4 mln
Nasdaq Adv 2831 Dec 1798 Vol 4.5 bln

Industry Watch
Strong: Information Technology, Communication Services, Consumer, Discretionary
Weak: Utilities, Health Care, Financials

Moving the Market

-- Big day for the mega-caps/growth stocks

-- Elon Musk discloses 9.2% passive stake in Twitter (TWTR)

-- Broader market has lackluster day

Big day for the growth stocks
04-Apr-22 16:15 ET
Dow +103.67 at 34921.94, Nasdaq +271.05 at 14532.54, S&P +36.78 at 4582.64

[BRIEFING.COM] The S&P 500 rose 0.8% on Monday, as money flowed back into the mega-caps/growth stocks, which accounted for the outperformance of the Nasdaq Composite (+1.9%). The Dow Jones Industrial Average (+0.3%) and Russell 2000 (+0.2%) rose more modestly.

Growth stocks appeared to draw speculative interest from Elon Musk disclosing a 9.2% passive stake in Twitter (TWTR 49.97, +10.66, +27.1%), which propelled TWTR shares to a 27% gain. The investment, and bullish reaction, seemed to instill confidence for dip-buying activity in the growth-stock space, including the mega-caps.

The Vanguard Mega Cap Growth ETF (MGK 240.27, +4.56, +1.9%) advanced 1.9%, leaving the Invesco S&P 500 Equal Weight ETF (RSP 158.56, +0.34, +0.2%) in the dust with its 0.2% gain.

The S&P 500 information technology (+1.9%), consumer discretionary (+2.3%), and communication services (+2.3%) sectors, which contain the mega-caps, each rose about 2%. The energy sector (+0.1%) eked out a gain, while the other sectors closed lower with utilities (-0.8%) finishing in last place.

One more word related to Elon, Tesla (TSLA 1145.45, +60.86, +5.6%) reported over 310,000 deliveries in the first quarter, representing a 68% yr/yr increase despite ongoing supply chain disruptions. TSLA shares rose 5.6%.

Starbucks (SBUX 88.09, -3.40, -3.7%), meanwhile, fell 4% after interim CEO Howard Shultz suspended the company's share buyback program to invest more into company's people and stores.

Elsewhere, oil prices climbed back above $100 per barrel ($103.34, +3.80, +3.8%) amid no reported progress in peace talks between Russia and Ukraine. Coal prices also hit a 13-year high, exacerbating the inflation narrative that helped drive selling interest in the longer-dated part of the Treasury market.

The 10-yr yield increased three basis points to 2.41% while the 2-yr yield decreased one basis point to 2.42% -- narrowing the inversion to one basis point. The U.S. Dollar Index increased 0.4% to 99.01.

Reviewing Monday's economic data:

Factory orders for manufactured goods declined 0.5% m/m in February (Briefing.com consensus -0.6%) following an upwardly revised 1.5% increase (from +1.4%) in January. Shipments of manufactured goods jumped 0.6% after increasing 1.4% in January.
The key takeaway from the report is that it followed a relatively strong month of order growth in January and likely reflects some delayed influence of the Omicron variant on business activity, making it too early to say if this is the start of a weakening trend for factory orders.

Looking ahead, investors will receive the ISM Non-Manufacturing Index for March and the Trade Balance for February on Tuesday.

Dow Jones Industrial Average -3.9% YTD
S&P 500 -3.9% YTD
Russell 2000 -6.7% YTD
Nasdaq Composite -7.1% YTD

Crude futures climb back above $100
04-Apr-22 15:30 ET
Dow +77.65 at 34895.92, Nasdaq +255.13 at 14516.62, S&P +32.29 at 4578.15

[BRIEFING.COM] The S&P 500 is currently up 0.7% while the Russell 2000 lags with a 0.2% gain.

One last look at the sectors shows information technology (+1.8%), consumer discretionary (+2.1%), and communication services (+2.3%) still trading sharply higher due to the mega-caps. The utilities sector (-0.9%) remains the laggard, but the energy (unch) and materials (unch) sectors have recouped intraday declines.

WTI crude futures settled higher by $3.80 (+3.8%) to $103.34/barrel.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34818.27 +139.92 (0.40%)
Nasdaq 14261.49 +40.98 (0.29%)
SP 500 4545.86 +15.45 (0.34%)
10-yr Note -9/32 2.442
NYSE Adv 2097 Dec 1133 Vol 996.0 mln
Nasdaq Adv 2578 Dec 1747 Vol 4.9 bln

Industry Watch
Strong: Real Estate, Utilities, Consumer Staples, Materials
Weak: Industrials, Information Technology, Financials

Moving the Market

-- March employment report shows solid jobs growth, lower unemployment, and continued wage inflation

-- 2s10s spread inverts again

-- Uptick into the close on no specific news

Stocks close higher despite 2s10s inversion
01-Apr-22 16:15 ET
Dow +139.92 at 34818.27, Nasdaq +40.98 at 14261.49, S&P +15.45 at 4545.86

[BRIEFING.COM] The S&P 500 increased 0.3% on Friday, starting the second quarter on a positive note despite a more inverted Treasury yield curve. The Nasdaq Composite (+0.3%) and Dow Jones Industrial Average (+0.4%) also rose modestly while the Russell 2000 outperformed with a 1.0% gain.

Eight of the 11 S&P 500 sectors closed higher, led by the real estate (+2.0%), utilities (+1.5%), consumer staples (+1.3%), and materials (+1.1%) sectors. Conversely, the information technology (-0.2%), financials (-0.2%), and industrials (-0.7%) sectors underperformed in negative territory.

The tech sector was pressured by valuation concerns, as the 10-yr yield rose five basis points to 2.38%; the financials sector was pressured by an inversion of the 2s10s spread, as the 2-yr yield rose 15 basis points to 2.43%; and the industrials sector was pressured by weakness in its transportation components. The Dow Jones Transportation Average dropped 4.7%.

Treasury yields pushed higher in the wake of the March employment report, which showed decent jobs growth, a lower unemployment rate, and continued wage inflation -- a recipe for the Fed to hike rates by 50 basis points next month.

More specifically, nonfarm payrolls increased by 431,000 (Briefing.com consensus 475,000) on top of an upwardly revised 750,000 (from 678,000) in February. The unemployment rate improved to 3.6% (Briefing.com consensus 3.7%) from 3.8% in February. Average hourly earnings rose 0.4%, as expected.

Transport stocks were weak, supposedly because the employment report also showed a decrease in transportation jobs (-1,000) following large gains in the prior two months.

The 2s10s inversion once again turned the conversation to a potential recession caused by the Fed aggressively hiking rates into slower growth. On the latter, the March ISM Manufacturing Index decelerated to 57.1% (Briefing.com consensus 58.3%) from 58.6% in February.

Separately, oil prices ($99.54, -0.89, -0.9%) were pressured by news that other IEA nations like Europe, Canada, Mexico, Japan, and South Korea will join the U.S. in releasing oil from their reserves. WTI crude ended the week lower by 12.6%. The U.S. Dollar Index increased 0.3% to 98.56.

Reviewing Friday's economic data:

The Employment Situation report for March showed a smaller than expected increase in nonfarm and private payrolls, which masked big upward revisions to readings from the past two months. Average hourly earnings showed an increase that was in-line with expectations, though average workweek decreased slightly.
March nonfarm payrolls increased by 431,000 (Briefing.com consensus 475,000). The 3-month average for total nonfarm payrolls decreased to 562,000 from 614,000. February nonfarm payrolls revised to 750,000 from 678,000. January nonfarm payrolls revised to 504,000 from 481,000.
March private sector payrolls increased by 426,000 (Briefing.com consensus 450,000). February private sector payrolls revised to 739,000 from 654,000. January private sector payrolls revised to 492,000 from 448,000.
March unemployment rate was 3.6% (Briefing.com consensus 3.7%) versus 3.8% in February.
March average hourly earnings increased by 0.4% (Briefing.com consensus 0.4%) after increasing a revised 0.1% (from 0.0%) in February. Over the last 12 months, average hourly earnings have risen 5.6%, versus 5.1% for the 12 months ending in January.
The average workweek in March was 34.6 hours (Briefing.com consensus 34.7) versus 34.7 hours in February.
The labor force participation rate ticked up to 62.4% from 62.3% in February. The employment-population ratio rose to 60.1% from 59.9% in February.
The key takeaway from the report is that while it showed a slowdown in hiring activity, wage growth continued and the unemployment rate returned to a pre-pandemic level, reflecting a tight job market. This combination is unlikely to deter the Fed from staying on what is expected to an aggressive rate hike path.
The March ISM Manufacturing Index decreased to 57.1% (Briefing.com consensus 58.3%) from 58.6% in February. A number above 50.0% is indicative of expansion. March marked the 22nd consecutive month of expansion in the manufacturing sector.
The key takeaway from the report is that activity slowed to its lowest pace since the end of 2020 while prices continued increasing, which suggests that inflation will continue running at a hot pace in the near term.
Total construction spending increased 0.5% month-over-month in February (Briefing.com consensus 1.0%) while the January reading was revised up to 1.6% (from 1.3%).
The key takeaway from the report is that residential spending continued increasing, which was masked by a decrease in most public construction spending.

Looking ahead, investors will receive Factory Orders for February on Monday.

Dow Jones Industrial Average -4.2% YTD
S&P 500 -4.6% YTD
Russell 2000 -6.9% YTD
Nasdaq Composite -8.8% YTD

Crude futures extend weekly losses
01-Apr-22 15:30 ET
Dow +38.27 at 34716.62, Nasdaq -37.92 at 14182.59, S&P -4.27 at 4526.14

[BRIEFING.COM] The S&P 500 is back in the red with a 0.1% decline and is on track to end the week with a 0.4% decline.

One last look at the sectors shows information technology (-0.9%), industrials (-1.0%), and financials (-0.6%) weighing on the market, while the real estate (+1.6%), utilities (+1.0%), and consumer staples (+0.9%) sectors outperform with healthy gains.

WTI crude futures settled the session lower by $0.89 (-0.9%) to $99.54/barrel, ending the week with a 12.6% decline

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34678.35 -550.46 (-1.56%)
Nasdaq 14220.51 -221.76 (-1.54%)
SP 500 4530.41 -72.04 (-1.57%)
10-yr Note +1/32 2.341
NYSE Adv 1317 Dec 1977 Vol 1.2 bln
Nasdaq Adv 1710 Dec 2734 Vol 5.3 bln

Industry Watch
Strong: Utilities, Consumer Staples
Weak: Communication Services, Financials, Consumer Discretionary, Information Technology

Moving the Market

-- Stocks slump into the close

-- Profit-taking interest, quarter-end machinations

-- U.S. plans to release 1 million barrels of oil from strategic reserves per day for the next six months

Stocks slump into quarter's end
31-Mar-22 16:15 ET
Dow -550.46 at 34678.35, Nasdaq -221.76 at 14220.51, S&P -72.04 at 4530.41

[BRIEFING.COM] The S&P 500 fell 1.6% on Thursday, slumping into the close on no specific news catalyst. The Nasdaq Composite (-1.5%) and Dow Jones Industrial Average (-1.6%) fell comparably while the Russell 2000 fell 1.0%.

The weak finish pushed all 11 S&P 500 sectors into the red on a closing basis, with the financials (-2.3%) and communication services (-2.0%) sectors losing at least 2.0%. The utilities (-0.2%) and consumer staples (-0.4%) sectors outperformed on a relative basis with modest declines.

The session was influenced by profit-taking activity after a strong second half of March, quarter-end machinations, and a 7% drop in oil prices ($100.43, -7.24, -6.7%) after the White House laid out plans to release one million barrels of oil per day for the next six months to help alleviate gas prices.

On a related note, OPEC+ agreed to increase its output targets by 432,000 barrels per day in May, according to CNBC. That's slightly more than the 400,000-bpd schedule for April.

Inflation remained on the market's mind after PCE data for February rose in-line with expectations, further crimping real personal disposable income, which decreased 0.2% in February. On a year-over-year basis, the PCE Price Index was up 6.4% while the core PCE Price Index, which excludes food and energy, was up 5.4% -- its highest level since 1983.

The Treasury market didn't react to the inflation data, perhaps because it wasn't surprising or because investors preferred to hide out in bonds amid the negative bias in equities ahead of the employment report tomorrow. The tight spreads continued to weigh on the financials sector for profitability reasons.

The 2-yr yield decreased five basis points to 2.28%, and the 10-yr yield decreased three basis points to 2.33%. The U.S. Dollar Index rose 0.6% to 98.37. The CBOE Volatility Index increased 6.4% to 20.56.

Separately, Walgreens Boots Alliance (WBA 44.77, -2.69, -5.7%) fell 6% despite the Dow component beating top and bottom-line estimates while UiPath (PATH 21.59, -7.45, -25.7%) was the latest growth stock to take a plunge after providing disappointing guidance.

Reviewing Thursday's economic data:

Personal income increased 0.5% month-over-month in February (Briefing.com consensus 0.5%), though real personal disposable income was down 0.2%. Personal spending increased 0.2% (Briefing.com consensus 0.5%) while the personal savings rate as a percentage of disposable income increased to 6.3% from a revised 6.1% (from 6.4%) in January. Real personal spending was down 0.4%. The PCE Price Index was up 0.6% (Briefing.com consensus 0.6%), pushing the year-over-year rate to 6.4% from 6.0%. The core PCE Price Index, which excludes food and energy, was up 0.4% (Briefing.com consensus 0.4%), pushing the year-over-year rate up to 5.4% from 5.2% in January.
The key takeaway from the report is that inflation continues taking a bite out of wage gains, as real personal disposable income decreased 0.2% while the Core PCE Price Index rose to its highest level since 1983.
Initial jobless claims for the week ending March 26, increased by 14,000 to 202,000 (Briefing.com consensus 200,000), rising off their lowest level since September 1969. Continuing jobless claims for the week ending March 19 decreased by 35,000 to 1.307 million, a level not seen since December 27, 1969.
The key takeaway from the report is that with claims hovering at levels not seen since late 1969/early 1970, the labor market remains tight, which can serve as a tailwind to already-high inflation.
The Chicago PMI for March increased to 62.9 (Briefing.com consensus 56.8) from 56.3 in February.

Looking ahead, investors will receive the Employment Situation report for March, the ISM Manufacturing Index for March, and Construction Spending for February on Friday.

Dow Jones Industrial Average -4.6% YTD
S&P 500 -5.0% YTD
Russell 2000 -7.8% YTD
Nasdaq Composite -9.1% YTD

Crude futures fall to $100 per barrel
31-Mar-22 15:30 ET
Dow -288.94 at 34939.87, Nasdaq -100.54 at 14341.73, S&P -33.47 at 4568.98

[BRIEFING.COM] The S&P 500 is trading at session lows with a 0.7% decline on no specific news catalyst.

One last look at the sectors shows financials (-1.4%), communication services (-1.1%), and consumer discretionary (-1.0%) down at least 1.0% while the consumer staples (+0.1%) and utilities (+0.4%) sectors cling onto small gains.

WTI crude futures settled lower by $7.24 (-6.7%) to $100.43/barrel after the White House laid out plans to release one million barrels of oil per day from strategic reserves and OPEC+ agreed to gradually raise output in May.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 35228.81 -65.38 (-0.19%)
Nasdaq 14442.27 -177.36 (-1.21%)
SP 500 4602.45 -29.15 (-0.63%)
10-yr Note +4/32 2.348
NYSE Adv 1388 Dec 1860 Vol 931.1 mln
Nasdaq Adv 1556 Dec 2877 Vol 5.4 bln

Industry Watch
Strong: Energy, Utilities, Health Care, Consumer Staples
Weak: Consumer Discretionary, Information Technology, Financials

Moving the Market

-- Russia refutes breakthrough in peace talks

-- Profit-taking interest after huge rebound rally

-- Treasury yield curve continues to compress

Rebound rally runs into profit-taking interest
30-Mar-22 16:15 ET
Dow -65.38 at 35228.81, Nasdaq -177.36 at 14442.27, S&P -29.15 at 4602.45

[BRIEFING.COM] The S&P 500 fell 0.6% on Wednesday, as the market was pressured by profit-taking interest amid tempered hopes for a timely Russia-Ukraine ceasefire. The Nasdaq Composite (-1.2%) and Russell 2000 (-2.0%) posted steeper declines while the Dow Jones Industrial Average declined just 0.2%.

Briefly, Russia refuted yesterday's reports that described a breakthrough in peace talks and appeared to redirect troops to eastern Ukraine to focus on the Donbas region. The news contributed to a rebound in oil prices ($107.67, +3.34, +3.2%), which were further aided by bullish inventory data out of the EIA.

The news also functioned as an excuse for the stock market to cool off from a big rebound rally in which, entering the session, the S&P 500 was up 11.0% since March 14 and the Nasdaq Composite was up 16.5%.

Losses were concentrated in the S&P 500 information technology (-1.4%), consumer discretionary (-1.5%), and financials (-0.7%) sectors. Conversely, the energy (+1.2%), utilities (+0.8%), health care (+0.2%), and consumer staples (+0.2%) sectors closed in positive territory.

The financials sector was undercut by weakness in the bank stocks amid the compression in interest rates, which continued to signal concerns about a Fed policy mistake. The SPDR S&P Bank ETF (KBE 33.91, -1.07) dropped 3.1%.

The 2-yr yield decreased two basis points to 2.33%, and the 10-yr yield decreased four basis points to 2.36%. The U.S. Dollar Index fell 0.6% to 97.85 amid relative strength in the euro (+0.6%) and yen (+0.9%).

Looking at individual stocks, Micron (MU 79.16, -2.89, -3.5%) coughed up an early 5% gain despite reporting better-than-expected earnings results and guidance, while Five Below (FIVE 160.20, -11.19, -6.5%), Chewy (CHWY 42.79, -8.21, -16.1%), and RH (RH 334.28, -51.41, -13.3%) each provided disappointing guidance.

Lululemon athletica (LULU 376.92, +32.95, +9.6%), on the other hand, stood out with a 10% gain on positive earnings results, upbeat guidance, and a $1 billion share repurchase announcement.

Reviewing Wednesday's economic data:

The third estimate of Q4 GDP showed a downward revision to 6.9% (Briefing.com consensus 7.1%) from the second estimate of 7.0%. The GDP Price Deflator was left unrevised at 7.1% (Briefing.com consensus 7.1%).
The key takeaway from the report is that the downward revision was owed to lower personal consumption expenditures and exports while private inventory investment was revised higher.
The ADP Employment Change report estimated that 455,000 jobs were added to private sector payrolls in March (Briefing.com consensus 440,000). The increase in February was upwardly revised to 486,000 from 475,000.
The weekly MBA Mortgage Applications Index fell 6.8% following an 8.1% decline in the prior week.

Looking ahead, investors will receive Personal Income and Spending for February, PCE Prices for February, weekly Initial and Continuing Claims, and the Chicago PMI for March on Thursday.

S&P 500 -3.4% YTD
Dow Jones Industrial Average -3.1% YTD
Russell 2000 -6.9% YTD
Nasdaq Composite -7.7% YTD

Crude futures settle higher
30-Mar-22 15:30 ET
Dow -184.77 at 35109.42, Nasdaq -215.45 at 14404.18, S&P -43.47 at 4588.13

[BRIEFING.COM] The S&P 500 is down 1.0% to trade at session lows while the Russell 2000 trades lower by 2.0%.

One last look at the sectors shows consumer discretionary (-1.8%), information technology (-1.6%), and financials (-1.1%) down more than 1.0% while the energy (+0.8%) and utilities (+0.5%) sectors are still trading in positive territory.

WTI crude futures settled higher by $3.34 (+3.2%) to $107.67/barrel amid tempered hopes for a ceasefire and bullish inventory data.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 35294.19 +338.30 (0.97%)
Nasdaq 14619.63 +264.73 (1.84%)
SP 500 4631.63 +56.11 (1.23%)
10-yr Note +28/32 2.398
NYSE Adv 2651 Dec 631 Vol 1.0 bln
Nasdaq Adv 3236 Dec 1251 Vol 5.9 bln

Industry Watch
Strong: Real Estate, Information Technology, Consumer Discretionary
Weak: Energy

Moving the Market

-- Ceasefire hopes spur gains

-- Positive momentum

-- 2s10s spread briefly inverts

Another green day for stocks, while recession indicator flashes red
29-Mar-22 16:15 ET
Dow +338.30 at 35294.19, Nasdaq +264.73 at 14619.63, S&P +56.11 at 4631.63

[BRIEFING.COM] The S&P 500 rose 1.2% on Tuesday, as reported progress in peace talks helped keep the positive momentum intact despite a key inversion in the Treasury market. The Nasdaq Composite (+1.8%) and Russell 2000 (+2.7%) outperformed the benchmark index while the Dow Jones Industrial Average rose 1.0%.

The positive start was catalyzed by news that Russia agreed to reduce military operations near Kyiv and that it's willing to speed up the timeline for a meeting between Presidents Putin and Zelensky. President Biden and European leaders were more skeptical, with Mr. Biden saying they were going to wait and see for what Russia does instead of believing its words.

The stock market took the reports at face value, using the news as a good excuse to maintain its rebound-minded intentions. Shares of Apple (AAPL 178.96, +3.36, +1.9%) rose for the 11th straight session, and ten of the 11 S&P 500 sectors finished in positive territory.

The heavily-weighted information technology (+2.1%) and consumer discretionary (+1.5%) sectors were among the top performers behind the real estate sector (+2.9%), while the energy sector (-0.4%) bucked the positive trend amid a decline in oil prices ($104.33, -2.14, -2.0%).

Oil, like other commodities and the dollar (98.41, -0.68, -0.7%), was pressured by the prospects of a ceasefire agreement. The dollar weakened against a stronger euro (+0.9% to 1.1088).

Elsewhere, a widely-followed recession indicator in the Treasury market briefly flashed red for the first time since 2019. Specifically, the 2-yr yield (+1 bps to 2.35%) briefly traded higher than the 10-yr yield (-8 bps to 2.40%), which is typically viewed as a harbinger for a recession between 6-24 months after the inversion.

Bullish investors noted that equities tend to rally in the months between the inversion and recession while others downplayed the significance of the indicator, arguing that the Fed's policy accommodation has distorted the long-end of the curve.

On a related note, Philadelphia Fed President Harker (non-voter in FOMC) told CNBC that an inversion of the yield curve has mixed evidence regarding recession indicators. Former New York Fed President Dudley opined in a Bloomberg piece that a recession is "virtually inevitable" because the Fed is behind the curve.

Reviewing Tuesday's economic data:

The Conference Board's Consumer Confidence Index rose to 107.2 in March (Briefing.com consensus 107.5) from a downwardly revised 105.7 (from 110.5) in February. In the same period a year ago, the index stood at 109.0.
The key takeaway from the report is that consumers benefited from continued growth in late Q1, though expectations for the near future continued weakening, which has the potential to pressure future spending plans.
Job openings decreased to 11.266 million in February from a revised 11.283 million (from 11.263 million) in January.
The FHFA Housing Price Index for February increased 1.6% m/m (Briefing.com consensus 1.3%), and the S&P Case-Shiller Home Price Index for February increased 19.1% yr/yr (Briefing.com consensus 18.7%).

Looking ahead, investors will receive the third estimate for Q4 GDP, the ADP Employment Change report for March, and the weekly MBA Mortgage Applications Index on Wednesday.

S&P 500 -2.8% YTD
Dow Jones Industrial Average -2.9% YTD
Russell 2000 -5.0% YTD
Nasdaq Composite -6.6% YTD

Crude futures settle lower
29-Mar-22 15:30 ET
Dow +307.94 at 35263.83, Nasdaq +272.81 at 14627.71, S&P +54.60 at 4630.12

[BRIEFING.COM] The S&P 500 is up 1.2% to trade at session highs while the Russell 2000 trades higher by 2.6%.

One last look at the sectors shows real estate (+2.8%), information technology (+2.1%), and consumer discretionary (+1.7%) atop the standings, while the energy sector (-0.7%) remains the only sector trading lower.

WTI crude futures settled lower by $2.14 (-2.0%) to $104.33/barrel after briefly dipping below $100.00/barrel intraday.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34955.89 +94.65 (0.27%)
Nasdaq 14354.90 +185.60 (1.31%)
SP 500 4575.52 +32.46 (0.71%)
10-yr Note +2/32 2.457
NYSE Adv 1653 Dec 1654 Vol 857.0 mln
Nasdaq Adv 2159 Dec 2375 Vol 5.0 bln

Industry Watch
Strong: Consumer Discretionary, Real Estate, Information Technology
Weak: Energy, Financials, Materials

Moving the Market

-- Reported progress in ceasefire talks helps spark late-session push

-- Nasdaq outperforms amid quarter-end rebalancing activity

-- Shanghai announces Covid lockdown in two phases

-- Oil prices drop 6%, Treasury yield curve flattens

Stocks shake off slow start and close higher
28-Mar-22 16:20 ET
Dow +94.65 at 34955.89, Nasdaq +185.60 at 14354.90, S&P +32.46 at 4575.52

[BRIEFING.COM] The S&P 500 gained 0.7% on Monday, as positive momentum and a hopeful-sounding geopolitical headline helped outweigh growth concerns. The Nasdaq Composite rose 1.3% while the Dow Jones Industrial Average rose 0.3%. The small-cap Russell 2000 (unch) finished flat.

Eight of the 11 S&P 500 sectors closed higher, led by the consumer discretionary (+2.7%), information technology (+1.2%), and real estate (+1.3%) sectors. The energy (-2.6%), materials (-0.5%), and financials (-0.3%) sectors closed lower.

Early on, the market was slowed down by growth concerns attributed to Shanghai announcing a two-phase Covid lockdown, The Nikkei reporting that Apple (AAPL 175.60, +0.88, +0.5%) plans to cut production of the iPhone SE and AirPods, the White House proposing tax increases in the FY23 budget, and the prolonged Russia-Ukraine situation.

The latter showed some progress in the afternoon after the Financial Times reported that Russia is prepared to allow Ukraine to join the EU as part of ceasefire talks as long as it doesn't join NATO. That report appeared to catalyze a late-session push, further supported by quarter-end rebalancing within the Nasdaq.

While equities reacted positively, the growth concerns didn't necessarily go away. The cyclical sectors (except for the consumer discretionary sector) still underperformed, WTI crude futures still fell 6.5%, or $7.36, to $106.47/bbl, and the Treasury yield curve still flattened.

The 2-yr yield rose five basis points to 2.34%, while the 10-yr yield decreased two basis points to 2.48%. On a related note, the $50 bln 2-yr note auction saw weak demand while the $51 bln 5-yr note auction was met with solid demand.

The U.S. Dollar Index increased 0.4% to 99.14 amid relative weakness in the British pound (-0.7%) and Japanese yen (-1.5%). The yen fell after the Bank of Japan offered to buy an unlimited amount of JGBs at 0.25% as part of its policy to control the yield curve.

Separately, shares of Tesla (TSLA 1091.84, +81.20, +8.0%) jumped 8% after the company said it will ask shareholders for vote at this year’s annual meeting to authorize additional shares to enable a stock split.

Reviewing Monday's economic data:

The Advance report for International Trade in Goods for February showed a deficit of $106.6 billion, versus an unrevised $107.6 billion in January. The Advance report for Retail Inventories for February rose 1.1%, while the Advance report for Wholesale Inventories for February rose 2.1%.

Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for March, the JOLTS - Job Openings report for February, the FHFA Housing Price Index for January, and the S&P Case-Shiller Home Price Index for February on Tuesday.

Dow Jones Industrial Average -3.8% YTD
S&P 500 -4.0% YTD
Russell 2000 -7.5% YTD
Nasdaq Composite -8.3% YTD

Russia prepared to let Ukraine join EU -- Financial Times
28-Mar-22 15:00 ET
Dow -46.59 at 34814.65, Nasdaq +119.26 at 14288.56, S&P +13.92 at 4556.98

[BRIEFING.COM] The S&P 500 is trading near session highs with a 0.3% gain amid strength in the mega-caps. Apple (AAPL 174.91, +0.20, +0.1%) has turned positive after being down 1.6% intraday.

The recent gains have been catalyzed by a Financial Times report indicating that Russia is prepared to allow Ukraine join the EU as part of ceasefire talks as long as it doesn't join NATO.

That has livened up risk sentiment while a speculative fervor is taking shape in the meme stocks like AMC Entertainment (AMC 26.37, +6.14, +30.3%) and GameStop (GME 174.45, +22.45, +14.8%).

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34861.24 +153.30 (0.44%)
Nasdaq 14169.30 -22.54 (-0.16%)
SP 500 4543.06 +22.90 (0.51%)
10-yr Note -1 10/32 2.492
NYSE Adv 1600 Dec 1601 Vol 872.8 mln
Nasdaq Adv 1945 Dec 2592 Vol 5.49 bln

Industry Watch
Strong: Financials, Energy, Utilities, Materials
Weak: Technology, Consumer Discretionary, Communication Services, Health Care

Moving the Market

Rising Treasury yields weigh on growth stocks and homebuilders

Crude oil deepens Thursday pullback

Exports of LNG to Europe to be increased once new infrastructure is built

Solid Week Ends on Bumpy Note
25-Mar-22 16:25 ET
Dow +153.30 at 34861.24, Nasdaq -22.54 at 14169.30, S&P +22.90 at 4543.06

[BRIEFING.COM] The stock market ended a decent week on a shaky note, though a late rally toward morning highs masked a bumpy session. The Nasdaq (-0.2%) finished just below its flat line while the Dow (+0.4%) and S&P 500 (+0.5%) recorded gains. The three indices gained a respective 2.0%, 0.3%, and 1.8% for the week while the Russell 2000 (+0.1%) ended little changed, narrowing this week's loss to 0.4%.

Equities climbed out of the gate, allowing the S&P 500 to touch its best level in almost six weeks in early trade while the Nasdaq underperformed from the start after showing relative strength earlier this week.

The market ran into resistance about an hour after the open as Treasuries widened this week's losses. The selling in Treasuries accelerated after a research note released by Citigroup called for four consecutive 50-bps rate hikes, followed by two 25-bps hikes. Treasuries retreated to fresh lows for the year with the 10-yr yield ending the day at 2.49%, up 15 bps for the day and up 34 bps for the week.

Higher yields put some renewed pressure on growth stocks, resulting in the midday underperformance in the Nasdaq and sectors like technology (-0.1%) and consumer discretionary (-0.1%). Meanwhile, the remining nine groups finished the day in positive territory.

Even with today's loss, the technology sector ended the week ahead of the broader market with a gain of 2.3%. NVIDIA (NVDA 276.92, -4.58, -1.6%) was among today's laggards, as it pulled back from yesterday's surge to its highest level since mid-January.

Homebuilders and improvement store names weighed on the discretionary sector as the ongoing weakness in Treasuries sets the stage for higher mortgage rates. The iShares Dow Jones US Home Construction ETF (ITB 61.31, -0.88, -1.4%) retreated for the third consecutive day, falling toward its February low (60.02).

On the upside, five sectors gained at least 1.0% with energy (+2.3%) spending the bulk of the session in the lead, even when crude oil traded lower in morning action. However, WTI crude turned positive amid reports of an attack on a Saudi oil field. There was more talk about another release from the strategic reserve while Chevron (CVX 169.31, +3.01, +1.8%) received clearance to resume operations in Venezuela. WTI crude climbed $2.59, or 2.3%, to $113.83/bbl, gaining $10.80, or 10.5%, for the week.

Energy was followed by the utilities sector (+1.5%) which benefited from the market's shaky showing, while financials (+1.3%) and real estate (+1.2%) bounced after lagging earlier this week.

The materials sector (+1.1%) finished near the middle of the pack, masking this week's strength. The group gained 4.1% for the week with fertilizer producers Mosaic (MOS 71.34, +2.77, +4.0%) and CF Industries (CF 109.52, +3.12, +2.9%) powering to fresh 52-week highs, alongside steelmaker Nucor (NUE 157.62, +4.10, +2.7%).

Reviewing today's economic data:

Pending Home Sales fell 4.1% in February (Briefing.com consensus 1.2%) after decreasing a revised 5.8% (from -5.7%) in January.
The final March reading for the University of Michigan Consumer Sentiment Index checked in at 59.4 (Briefing.com consensus 59.5) versus the preliminary reading of 59.7. The final reading for February was 62.8. The March reading marks the lowest level for the index since October 2012.
The key takeaway from the report is that rising inflation is eating away at consumer sentiment, as consumers recognize their standard of living has been reduced because their income is not keeping up with inflation. Notably, it was indicated in the report that 32% of consumers expect their overall financial position to worsen in the year ahead, which is the highest level since the survey started in the mid-1940s.

February advance Retail Inventories (prior 1.9%), advance Wholesale Inventories (prior 0.8%), and the advance goods trade deficit (prior -$107.6 bln) will be reported on Monday at 8:30 ET.

Dow Jones Industrial Average -4.1% YTD
S&P 500 -4.7% YTD
Russell 2000 -7.5% YTD
Nasdaq Composite -9.4% YTD

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34707.94 +349.44 (1.02%)
Nasdaq 14191.84 +269.23 (1.93%)
SP 500 4520.16 +63.92 (1.43%)
10-yr Note -11/32 2.341
NYSE Adv 2105 Dec 1148 Vol 836.3 mln
Nasdaq Adv 2916 Dec 1540 Vol 4.93 bln

Industry Watch
Strong: Technology, Materials, Communication Services, Health Care
Weak: Consumer Discretionary, Real Estate, Energy

Moving the Market

S&P 500 remains near 200-day moving average

Crude oil dips

Technology Paces Thursday Rally
24-Mar-22 16:20 ET
Dow +349.44 at 34707.94, Nasdaq +269.23 at 14191.84, S&P +63.92 at 4520.16

[BRIEFING.COM] The stock market ended Thursday on a firmly higher note with the Nasdaq (+1.9%) finishing ahead of the S&P 500 (+1.4%) and Dow (+1.0%).

Equities followed yesterday's weak finish with an opening advance and a daylong extension of the early gains. The S&P 500 clawed back above its 200-day moving average (4476), which has been in focus since Friday, while the Nasdaq continued this week's outperformance.

Nasdaq faced some pressure in early trade, but it took the lead in midday action with chipmakers fueling afternoon gains in the tech-heavy index. The PHLX Semiconductor Index jumped 5.1% with all but one of its component gaining at least 2.0% while NVIDIA (NVDA 281.50, +25.16, +9.8%) and Intel (INTC 51.62, +3.35, +6.9%) finished in the lead. NVIDIA rallied to its best level in ten weeks while Intel overtook its 50-day moving average (48.75), approaching its 200-day moving average (52.04).

The technology sector (+2.7%) was the only group with a gain of more than 2.0% while the materials sector (+2.0%) finished just behind after outperforming throughout the day. Steelmaker Nucor (NUE 153.52, +6.38, +4.3%) and fertilizer producers Mosaic (MOS 68.57, +0.64, +0.9%) and CF Industries (CF 106.40, +2.81, +2.7%) hit fresh 52-week highs as concerns about supply and rising prices persisted.

Crude oil, meanwhile, was a soft spot today, but not before it touched its best level in almost two weeks in overnight trade. It finished today's session with a loss of $4.02, or 3.5%, at $111.24/bbl. However, the energy sector (+0.1%) was able to eke out a slim gain, extending this week's advance to 5.0%.

The consumer discretionary sector (+0.7%) finished near the bottom of today's leaderboard as modest losses in influential components like Home Depot (HD 315.78, -1.27, -0.4%) and Lowe's (LOW 219.17, -1.75, -0.8%) overshadowed gains in most remaining components. HD and LOW retreated after KB Home (KBH 34.38, -1.65, -4.6%) missed Q1 expectations, but reaffirmed its guidance for FY22 revenue.

Elsewhere in the discretionary sector, travel names finished among the leaders with Booking.com (BKNG 2261.99, +102.24, +4.7%) ending in the top spot after Trip.com (TCOM 24.50, +0.48, +2.0%) beat Q4 expectations.

Treasuries slumped out of the gate but rebounded as the day went on. The 30-yr bond turned positive in the afternoon, sending its yield lower by a basis point to 2.51% while the 10-yr note finished with a modest loss, lifting its yield by two basis points to 2.34%.

On the international front, an Axios reporter tweeted that he has been told by the chief of staff to Ukraine's president that some progress has been made in cease-fire negotiations.

Reviewing today's economic data:

Initial jobless claims for the week ending March 19 decreased by 28,000 to 187,000 (Briefing.com consensus 210,000), which is the lowest level since September 6, 1969. Continuing jobless claims for the week ending March 12 decreased by 67,000 to 1.350 million, which is the lowest level since January 3, 1970.
The key takeaway from the report is that it is consistent with a tight labor market; however, the multi-decade low in initial and continuing claims is going to feed into concerns about a pickup in wage-based inflation pressures that might compel the Fed to take a more aggressive approach in removing its policy accommodation.
Durable goods orders for February declined 2.2% month-over-month (Briefing.com consensus -0.5%) after increasing 1.6% in January. Excluding transportation, durable goods orders fell 0.6% month-over-month (Briefing.com consensus +0.5%) after increasing 0.8% in January.
The key takeaway from the report is that the weakness follows on the heels of a solid January report despite the effects of the Omicron variant. The downturn likely reflects some natural slowing, meaning it is too early to tell if this is the start of a weaker trend.
The IHS Markit Manufacturing PMI increased to 58.5 in the preliminary reading for March from February's final reading of 57.3.
The IHS Markit Services PMI increased to 58.9 in the preliminary reading for March from February's final reading of 56.5.
The Current Account deficit narrowed to $217.90 bln in Q4 from a revised deficit of $219.90 bln (from -$214.80 bln) in Q3.

February Pending Home Sales (Briefing.com consensus 1.2%; prior -5.7%) and the final reading of the Michigan Consumer Sentiment survey for March (Briefing.com consensus 59.7; prior 59.7) will be released tomorrow at 10:00 ET.

Dow Jones Industrial Average -4.5% YTD
S&P 500 -5.2% YTD
Russell 2000 -7.6% YTD
Nasdaq Composite -9.3% YTD

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34358.50 -448.96 (-1.29%)
Nasdaq 13922.61 -186.21 (-1.32%)
SP 500 4456.24 -55.37 (-1.23%)
10-yr Note +17/32 2.321
NYSE Adv 1102 Dec 2112 Vol 944.4 mln
Nasdaq Adv 1567 Dec 2821 Vol 4.92 bln

Industry Watch
Strong: Energy, Utilities
Weak: Technology, Health Care, Financials, Communication Services, Consumer Discretionary

Moving the Market

Crude oil rising again

President Biden meeting with European NATO allies

S&P 500 Pulled Back Below 200-Day Average
23-Mar-22 16:15 ET
Dow -448.96 at 34358.50, Nasdaq -186.21 at 13922.61, S&P -55.37 at 4456.24

[BRIEFING.COM] The stock market ended Wednesday on a lower note with the Dow (-1.3%), Nasdaq (-1.3%), and S&P 500 (-1.2%) recording comparable losses while the Russell 2000 (-1.7%) finished behind the large cap indices.

Equities spent the bulk of the session in the red, as the S&P 500 gravitated back below its 200-day moving average (4474), which offered support yesterday, while the Nasdaq made a brief appearance in the green in midday trade before reaching a fresh low ahead of the close.

Crude oil recovered its entire loss from yesterday, rising $5.78, or 5.3%, to $115.26/bbl. The resilience in the commodity weighed on overall sentiment, but it also kept the energy sector (+1.7%) atop today's leaderboard throughout the day. The sector extended this week's gain to 4.9% with ten of its components reaching fresh 52-week highs.

The utilities sector (+0.2%) was the only other advancer, benefiting from the cautious sentiment in the broader market.

On the downside, nine sectors recorded losses with six surrendering at least 1.0%. Financials (-1.8%) and health care (-1.8%) lagged throughout the day due to broad weakness. Wells Fargo (WFC 51.12, -2.27, -4.3%) was the worst performer among financials while ResMed (RMD 233.00, -22.05, -8.7%) was the biggest laggard in health care amid supply chain concerns.

Top-weighted technology (-1.5%) finished near the bottom of the leaderboard even though its largest component—Apple (AAPL 170.17, +1.35, +0.8%)—recorded a solid gain. Chipmakers displayed relative weakness with the PHLX Semiconductor Index sliding 2.5%, while Adobe (ADBE 422.90, -43.55, -9.3%) finished at the bottom of the tech sector after its Q1 beat was overshadowed by below-consensus EPS and revenue guidance for Q2.

In other earnings, General Mills (GIS 64.23, +1.55, +2.5%) beat Q3 EPS expectations and raised its FY22 EPS guidance above consensus. Archer-Daniels (ADM 89.09, +1.53, +1.8%) rallied to a fresh record in sympathy with General Mills, but the consumer staples sector still lost 0.9%.

Treasuries ended the day in positive territory with the 10-yr note reclaiming its loss from yesterday and sending its yield lower by five basis points to 2.32%.

In international news, President Biden traveled to meet with European NATO allies in the coming days.

Reviewing today's economic data:

New home sales decreased 2.0% month-over-month in February to a seasonally adjusted annual rate of 772,000 units (Briefing.com consensus 820,000) from a downwardly revised 788,000 (from 801,000) in January. On a year-over-year basis, new home sales were down 6.2%.
The key takeaway from the report is the recognition that the sale of lower-priced homes has lessened as a percentage of overall sales, likely due to less supply resulting from cost pressures for builders and emerging pressures from rising mortgage rates that are reducing affordability for lower-income buyers. That is leading to higher-priced homes accounting for a larger percentage of new homes sold, which is driving up both median and average selling prices.
The weekly MBA Mortgage Index fell 8.1% after decreasing by 1.2% during the previous week. The Purchase Index fell 1.5% while the Refinance Index fell 14.4%.

Weekly Initial Claims (Briefing.com consensus 210,000; prior 214,000), Continuing Claims (prior 1.419 mln), February Durable Orders (Briefing.com consensus -0.5%; prior 1.6%), Durable Orders ex-transportation (Briefing.com consensus 0.5%; prior 0.7%), and Q4 Current Account Balance (prior -$214.80 bln) will be reported tomorrow at 8:30 ET, followed by the preliminary March IHS Markit Manufacturing PMI (prior 57.3) at 9:45 ET

Dow Jones Industrial Average -5.5% YTD
S&P 500 -6.5% YTD
Russell 2000 -8.6% YTD
Nasdaq Composite -11.0% YTD

Energy Holds Lead
23-Mar-22 15:25 ET
Dow -339.51 at 34467.95, Nasdaq -138.72 at 13970.10, S&P -38.84 at 4472.77

[BRIEFING.COM] The S&P 500 (-0.9%) trades just above its low with 30 minutes remaining in the session. The benchmark index has been pressured back below its 200-day moving average (4474), increasing the likelihood of a volatile finish after the index failed to build on its bounce off morning lows.

Nine sectors remain in the red with five showing losses of 1.0% or more while energy (+2.5%) remains comfortably in the green after crude oil climbed $5.78, or 5.3%, to $115.26/bbl.

Treasuries finished the day near their highs, sending the 10-yr yield lower by five basis points to 2.32%.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34807.46 +254.47 (0.74%)
Nasdaq 14108.82 +270.36 (1.95%)
SP 500 4511.61 +50.43 (1.13%)
10-yr Note -17/32 2.373
NYSE Adv 1946 Dec 1237 Vol 1.07 bln
Nasdaq Adv 3082 Dec 1355 Vol 5.32 bln

Industry Watch
Strong: Financials, Communication Services, Consumer Discretionary, Technology
Weak: Energy, Health Care, Utilities

Moving the Market

St. Louis Fed President Bullard speaks in favor of tighter policy

S&P 500 looking for support near 200-day moving average

Crude oil rally pauses

S&P 500 Reclaims 200-Day Average
22-Mar-22 16:10 ET
Dow +254.47 at 34807.46, Nasdaq +270.36 at 14108.82, S&P +50.43 at 4511.61

[BRIEFING.COM] The stock market ended Tuesday on a firmly higher note with the Nasdaq (+2.0%) pacing a daylong advance while the S&P 500 (+1.1%) and Dow (+0.7%) recorded slimmer gains.

Today's rally lifted the S&P 500 back above its 200-day moving average (4473) after that area offered slight resistance on Monday while the Nasdaq reclaimed its 50-day moving average (13831).

Ten sectors finished the day in positive territory with consumer discretionary (+2.5%) and communication services (+2.0%) holding the lead throughout the day.

The discretionary sector rebounded from yesterday's underperformance with NIKE (NKE 133.09, +2.90, +2.2%), which rallied to its 50-day moving average (139.12) before pulling back. The advance was fueled by above-consensus results for Q3 while top components Amazon (AMZN 3297.78, +67.95, +2.1%) and Tesla (TSLA 993.98, +72.82, +7.9%) also recorded strong gains.

In the communication services sector, top component Alphabet (GOOG 2805.55, +75.98, +2.8%) rallied past its 200-day moving average (2766) to a five-week high while Meta Platforms (FB 216.65, +5.16, +2.4%) reclaimed yesterday's loss.

Other influential sectors like technology (+1.4%) and financials (+1.6%) also spent the day in positive territory with the former benefiting from outperformance in top components like Apple (AAPL 168.82, +3.44, +2.1%) and Microsoft (MSFT 304.06, +4.90, +1.6%) while the latter rallied as Treasury yields continued climbing.

Selling across the curve drove Treasury yields to fresh highs for the year with the 10-yr yield rising six basis points to 2.37%.

On the downside, the energy sector (-0.6%) was the lone decliner, pulling back from Monday's rally. The sector narrowed this week's gain to 3.1% as crude oil fell $0.73, or 0.7%, to $109.48/bbl, snapping a four-day skid. Recent reports about a possible EU embargo on Russian oil were followed by indications that such a ban is unlikely to be implemented.

The market did not receive any data today but tomorrow, the weekly MBA Mortgage Index (prior -1.2%) will be released at 7:00 ET, followed by February New Home Sales (Briefing.com consensus 820,000; prior 801,000) at 10:00 ET.

Dow Jones Industrial Average -4.2% YTD
S&P 500 -5.3% YTD
Russell 2000 -7.0% YTD
Nasdaq Composite -9.8% YTD

Energy Remains Behind
22-Mar-22 15:30 ET
Dow +227.23 at 34780.22, Nasdaq +270.05 at 14108.51, S&P +47.93 at 4509.11

[BRIEFING.COM] The major averages remain near their best levels of the session with the S&P 500 holding a 1.1% gain with 30 minutes remaining in the session.

Most sectors are hanging onto solid gains with consumer discretionary (+2.5%) and communication services (+2.2%) jockeying for the top spot.

Conversely, the energy sector (-0.9%) remains at the bottom of the leaderboard, but even with today's loss, the group is up 7.7% for the month while the second-best performer—health care (-0.1%)—has gained 5.1% in March.

All but two components of the energy sector trade in the green while Pioneer Natural Resources (PXD 251.66, +0.48, +0.2%) hit a fresh record high. Crude oil, meanwhile, fell $0.73, or 0.7%, to $109.48/bbl.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34552.99 -201.94 (-0.58%)
Nasdaq 13838.46 -55.38 (-0.40%)
SP 500 4461.18 -1.94 (-0.04%)
10-yr Note -1 12/32 2.315
NYSE Adv 1279 Dec 1956 Vol 1.10 bln
Nasdaq Adv 1733 Dec 2791 Vol 5.59 bln

Industry Watch
Strong: Energy, Materials, Utilities, Industrials
Weak: Financials, Consumer Discretionary, Communication Services

Moving the Market

S&P 500 finding resistance near 200-day moving average

Crude oil rising again: EU may block imports of Russian oil

S&P 500 Finds Resistance Near 200-Day Average
21-Mar-22 16:15 ET
Dow -201.94 at 34552.99, Nasdaq -55.38 at 13838.46, S&P -1.94 at 4461.18

[BRIEFING.COM] The stock market began the week on a shaky note, causing the S&P 500 (-0.04%) to snap its four-day streak that lifted the benchmark index to a one-month high last week. The S&P 500 ended ahead of the Nasdaq (-0.4%) and Dow (-0.6%).

The S&P 500 flashed a modest gain in early trade that pushed the index above its 200-day moving average (4472), but that area served as resistance today while the 50-day moving average (4428) offered a measure of support to the benchmark index. The S&P returned into negative territory in the early afternoon after Fed Chairman Powell said that the FOMC could raise rates by more than 25 bps on one or multiple occasions this year.

Six sectors finished the day in negative territory with communication services (-0.7%) and consumer discretionary (-0.8%) showing the biggest losses while commodity-linked energy (+3.8%) and materials (+0.9%) outperformed throughout the day.

The communication services sector was pressured by losses in almost all components with Meta Platforms (FB 211.49, -5.00, -2.3%) pacing the weakness after a Russian court charged the company with extremism and banned access to Facebook and Instagram from Russia.

In the discretionary sector, Home Depot (HD 329.37, -11.37, -3.3%) pulled back after recording five consecutive gains while NIKE (NKE 130.19, -1.05, -0.8%) snapped a four-day streak ahead of tonight's release of quarterly results.

On the upside, the energy sector outperformed throughout the day thanks to strong support from crude oil, which climbed $7.18, or 7.0%, to $110.21/bbl amid continued speculation about an EU ban on Russian oil imports.

Steel names contributed to strength in the materials sector after Australia banned exports of aluminum to Russia. Nucor (NUE 142.75, +6.59, +4.8%) rallied to a fresh record while fertilizer stocks also outperformed notably with CF Industries (CF 101.31, +6.06, +6.4%) reaching a new record high.

In other corporate news, Boeing (BA 185.90, -6.93, -3.6%) fell to levels from Wednesday after a 737-800 jet manufactured by the company crashed in China, killing all 132 occupants.

Treasuries retreated throughout the day, sending the 10-yr yield higher by 17 bps to 2.32%, a level not seen since May 2019. The market will not receive any data tomorrow.

Dow Jones Industrial Average -4.9% YTD
S&P 500 -6.4% YTD
Russell 2000 -8.0% YTD
Nasdaq Composite -11.6% YTD

Energy Remains Ahead
21-Mar-22 15:25 ET
Dow -275.45 at 34479.48, Nasdaq -107.31 at 13786.53, S&P -13.17 at 4449.95

[BRIEFING.COM] The S&P 500 trades lower by 0.3% with 30 minutes remaining in the session.

The benchmark index held a modest gain in early trade, but it has not been able to defend that gain, due in part to a warning from Fed Chair Powell that the FOMC could raise rates by more than 25 bps on one or multiple occasions this year.

Eight sectors trade with losses with communication services (-1.2%) and consumer discretionary (-1.0%) leading the retreat. Meanwhile, the energy sector has extended its lead and is now up 4.1%. On a related note, crude oil climbed $7.18, or 7.0%, to $110.21/bbl.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34754.93 +274.17 (0.80%)
Nasdaq 13893.84 +279.06 (2.05%)
SP 500 4463.12 +51.45 (1.17%)
10-yr Note +2/32 2.152
NYSE Adv 2150 Dec 1062 Vol 3.4 bln
Nasdaq Adv 2923 Dec 1395 Vol 8.0 bln

Industry Watch
Strong: Information Technology, Consumer Discretionary, Communication Services
Weak: Utilities

Moving the Market

-- Mega-caps lead S&P 500 and Nasdaq to a fourth straight advance

-- S&P 500 reclaims 50-day moving average (4433)

-- Market unfazed by geopolitics, the Fed, and the curve-flattening activity in the Treasury market

Rebound rally grows legs amid mega-cap strength
18-Mar-22 16:15 ET
Dow +274.17 at 34754.93, Nasdaq +279.06 at 13893.84, S&P +51.45 at 4463.12

[BRIEFING.COM] The S&P 500 rose 1.2% on this quadruple witching-options expiration Friday, as the mega-caps carried the benchmark index to its fourth straight advance. The Nasdaq Composite gained 2.1%, the Dow Jones Industrial Average gained 0.8%, and the Russell 2000 gained 1.0%.

There wasn't a specific catalyst today, suggesting that the market was influenced by the following factors: positive momentum after starting the week at an oversold position, technical factors as the S&P 500 reclaimed its 50-day moving average (4433), and short-covering activity from investors caught on the wrong end of the market direction.

The mega-caps were steady leaders throughout the session, lifting the S&P 500 information technology (+2.2%), consumer discretionary (+2.2%), and communication services (+1.4%) sectors to the top of the standings. No other sectors gained at least 1.0%.

The Vanguard Mega Cap Growth ETF (MGK 229.21, +4.95) rose 2.2%, versus a more modest 0.6% gain for the Invesco S&P 500 Equal Weight ETF (RSP 157.17, +1.00).

Conversely, the utilities sector (-0.9%) was the only sector that closed lower. FedEx (FDX 218.91, -9.07, -4.0%) and U.S. Steel (X 32.96, -1.59, -4.6%) were individual laggards after the former missed EPS estimates and the latter guided Q1 EPS below consensus.

The positive bias overshadowed reports indicating slow progress in ceasefire talks between Russia and Ukraine, an underwhelming phone conversation between President Biden and China's President Xi, commentary from Fed officials reminding the market about the need for policy normalization, and a weaker-than-expected existing home sales report for February.

The stock market also appeared unfazed by the curve-flattening activity in the Treasury market, which signaled underlying growth concerns. The 2s10s spread narrowed by six basis points, with the 2yr yield increasing two basis points to 1.96% and the 10-yr yield decreasing four basis points to 2.15%.

The U.S. Dollar Index increased 0.2% to 98.21. WTI crude futures fell 0.4%, or $0.40, to $103.03/bbl. The CBOE Volatility Index fell 7.0% to 23.87.

Reviewing Friday's economic data:

Existing home sales decreased 7.2% in February to a seasonally adjusted annual rate of 6.02 million (Briefing.com consensus 6.20 million). Total sales in February were down 2.4% from a year ago.
The key takeaway from the report is that higher mortgage rates and rising prices weighed on sales in February, resulting in the slowest pace of sales in six months.
The Conference Board's Leading Economic Index increased 0.3% m/m in February following a revised 0.5% decline (from -0.3%) in January.

There is no economic data scheduled for Monday or Tuesday.

Dow Jones Industrial Average -4.4% YTD
S&P 500 -6.6% YTD
Russell 2000 -7.1% YTD
Nasdaq Composite -11.2% YTD

Crude futures settle slightly lower
18-Mar-22 15:30 ET
Dow +216.86 at 34697.62, Nasdaq +266.47 at 13881.25, S&P +48.39 at 4460.06

[BRIEFING.COM] The S&P 500 is up 1.1% as the market gains steam heading into the close.

One last look at the sectors shows information technology (+2.2%) and consumer discretionary (+1.9%) still leading the sectors in gains, while the energy (-0.01%) and utilities (-0.6%) sectors are the two groups trading lower.

WTI crude futures settled lower by 0.4%, or $0.40, to $103.03/barrel.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34480.76 +417.66 (1.23%)
Nasdaq 13614.78 +178.23 (1.33%)
SP 500 4411.67 +53.81 (1.23%)
10-yr Note +3/32 2.163
NYSE Adv 2525 Dec 667 Vol 1.1 bln
Nasdaq Adv 3280 Dec 1103 Vol 5.5 bln

Industry Watch
Strong: Energy, Materials, Consumer Discretionary, Real Estate
Weak: Utilities

Moving the Market

-- Stocks extend rebound rally to a third straight day

-- Russia refutes reports indicating progress in peace talks, catalyzes 8% rebound in oil prices

-- 10-yr yield rises off overnight lows

Third straight rebound rally
17-Mar-22 16:20 ET
Dow +417.66 at 34480.76, Nasdaq +178.23 at 13614.78, S&P +53.81 at 4411.67

[BRIEFING.COM] The S&P 500 rose 1.2% on Thursday, extending its rebound rally to a third straight day. The Dow Jones Industrial Average (+1.2%) and Nasdaq Composite (+1.3%) kept pace with the benchmark index while the Russell 2000 (+1.7%) pulled ahead its large-cap peers.

All 11 S&P 500 sectors closed in positive territory with gains ranging from 0.5% (utilities) to 3.5% (energy). Advancing issues outpaced declining issues by roughly a 4:1 margin at the NYSE and a 3:1 margin at the Nasdaq.

Strikingly, the stock market was undeterred by an 8% rebound in oil prices ($103.43, +8.01, +8.4%), which was catalyzed by Russia refuting yesterday's reports that described progress in peace talks with Ukraine. Western officials believe that both sides remain far apart on those talks, according to Reuters.

The market, to be fair, did get off to a slow start despite an encouraging round of economic data, including housing starts for February, weekly initial jobless claims, and the Philadelphia Fed Index for March.

Stocks appeared to key off the price action in the 10-yr Treasury note yield, which settled unchanged at 2.19% after dipping below 2.11% overnight. The ability for the 10-yr yield to move higher, undoing some of yesterday's curve-flattening activity, seemed to alleviate some underlying growth concerns.

The 2-yr yield fell four basis points to 1.94%. The U.S. Dollar Index fell 0.7% to 97.97 amid relative strength in the euro, which rose 0.7% against the dollar to 1.1112. The British pound (unch), meanwhile, moved lower in the wake of the Bank of England's decision to hike its key lending rate by 25 basis points to 0.75%.

Whether or not it was the Treasury market that got things going for equities, there was little doubt that positive momentum, which was borne out of a bearish sentiment, was on the market's side.

With today's advance, the S&P 500 finished 5.7% above Monday's close, versus 8.2% and 6.4% gains in the Nasdaq Composite and Russell 2000, respectively. Over the same three-day period, the CBOE Volatility Index (25.67, -1.00, -3.8%) has dropped 19%.

Reviewing Thursday's economic data:

February housing starts increased 6.8% month-over-month to a seasonally adjusted annual rate of 1.769 million (Briefing.com consensus 1.700 million) and building permits slipped 1.9% to a seasonally adjusted annual rate of 1.859 million (Briefing.com consensus 1.860 million).
The key takeaway from the report was that single-family units (+5.7%) drove the strength in starts, yet a 0.5% decline in permits for single units (a leading indicator) tempered some of the enthusiasm for the otherwise encouraging February number.
Initial jobless claims for the week ending March 12 decreased by 15,000 to 214,000 (Briefing.com consensus 224,000) and continuing claims for the week ending March 5 decreased by 71,000 to 1.419 million, hitting their lowest level since February 21, 1970.
The key takeaway from the report is the understanding that the latest week is the week in which the survey for the March employment report was conducted. With the low level of initial claims, expectations for a strong pickup in job growth -- and a continuation of the strong labor market the Fed chair was discussing -- will remain high.
Total industrial production increased 0.5% month-over-month in February (Briefing.com consensus 0.5%) following an unrevised 1.4% increase in January. The capacity utilization rate rose to 77.6% (Briefing.com consensus 77.9%) from a downwardly revised 77.3% (from 77.6%) in January.
The key takeaway from the report is that industrial production is being held back by the output of motor vehicles and parts, which stems from ongoing supply shortages. The output of motor vehicles and parts declined 3.5% in February.
The Philadelphia Fed Index for March increased to 27.4 (Briefing.com consensus 14.0) from 16.0 in February.

Looking ahead, investors will receive Existing Home Sales for February on Friday.

Dow Jones Industrial Average -5.1% YTD
S&P 500 -7.4% YTD
Russell 2000 -8.0% YTD
Nasdaq Composite -13.0% YTD

Crude futures settle higher by 8%
17-Mar-22 15:30 ET
Dow +263.54 at 34326.64, Nasdaq +120.38 at 13556.93, S&P +36.09 at 4393.95

[BRIEFING.COM] The S&P 500 is up 0.8% during this final update before the close.

One last look at the sectors shows gains across the board. The top-weighted information technology is underperforming with a 0.2% gain, while the energy sector (+3.4%) leaps ahead amid the sharp rebound in oil prices.

WTI crude futures settled higher by $8.01 (+8.4%) to $103.43/barrel.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34063.10 +518.76 (1.55%)
Nasdaq 13436.45 +487.83 (3.77%)
SP 500 4357.86 +95.41 (2.24%)
10-yr Note -3/32 2.181
NYSE Adv 2541 Dec 639 Vol 1.4 bln
Nasdaq Adv 3137 Dec 932 Vol 6.4 bln

Industry Watch
Strong: Financials, Consumer Discretionary, Information Technology
Weak: Utilities, Energy, Consumer Staples

Moving the Market

-- S&P 500 coughs up gain post-FOMC decision, then bounces back

-- Fed hikes rates by 25 basis points and signals 7 rate hikes this year

-- Treasury yields spike, more so on the short-end of the curve

-- Continued hope for a ceasefire agreement despite continued Russian strikes

Stocks close at session high after Powell press conference
16-Mar-22 16:25 ET
Dow +518.76 at 34063.10, Nasdaq +487.83 at 13436.45, S&P +95.41 at 4357.86

[BRIEFING.COM] The S&P 500 rose 2.2% on Wednesday, as the market brushed off a hawkish-sounding FOMC decision once Fed Chair Powell started speaking. The Nasdaq Composite (+3.8%) and Russell 2000 (+3.1%) both gained more than 3.0% while the Dow Jones Industrial Average increased 1.6%.

Eight of the 11 S&P 500 sectors closed higher, with the consumer discretionary (+3.4%) and information technology (+3.3%) sectors also rising more than 3.0%. Conversely, the energy (-0.4%) and utilities (-0.2%) sectors closed lower.

Prior to the Fed, the session started with a risk-on mindset, bolstered by huge gains in Chinese markets after Beijing vowed support for the economy and financial markets and reports indicated that Russia and Ukraine continued to make progress in peace talks. The market continued to relish the idea of a ceasefire, even as Ukraine rejected a neutrality plan proposed by Russia.

Regarding the Fed, the central bank raised the target range for the fed funds rate by 25 basis points to 0.25-0.50%, as expected, and signaled six more rate hikes this year with four additional hikes next year. The statement noted that the Fed would begin reducing its balance sheet at an upcoming meeting (possibly in May, according to Fed Chair Powell).

The projections for interest rates were a bit more hawkish than anticipated, stoking concerns about a policy mistake that could hinder economic growth. That view was telegraphed in the Treasury market, as the yield curve flattened via a sharper rise in shorter-dated rates.

The Fed, per usual, produced some volatility in the market. The S&P 500 was up 1.3% prior to the decision (paring early gains), then fell 0.3% into negative territory following the statement. Stocks, however, swiftly recovered during Fed Chair Powell's press conference to close at session highs.

Fed Chair Powell soothed the market with one of his first statements being that he thinks the probability of a recession within the next year is low. He added that the reduced 2022 GDP growth forecast of 2.8% was tied to Russia's invasion of Ukraine instead of the expected impact of the Fed's tightening actions. Mr. Powell acknowledged that monetary policy could weigh on inflation and growth rates in 2023 and 2024.

Treasury yields backtracked from highs, but they still settled on a curve-flattening note. The 2-yr yield increased 13 basis points to 1.97% (hit 1.92% post-settlement), and the 10-yr yield increased two basis points to 1.18%. The U.S. Dollar Index fell 0.8% to 98.34. Crude futures fell 0.8%, or $0.74, to $95.42/bbl.

Reviewing Wednesday's economic data:

The Retail Sales report was not as disappointing as the headlines might suggest. Total retail sales increased 0.3% month-over-month in February (Briefing.com consensus +0.4%), yet they were actually stronger than expected after accounting for the large upward revision to January to +4.9% from +3.8%. The same goes for retail sales, excluding autos. They were up 0.2% month-over-month (Briefing.com consensus +0.8%), yet that followed an upward revision for January to +4.4% from +3.3%.
The key takeaway from the report is that there was a natural slowdown after a huge month of sales in January; however, gasoline station sales (+5.3%) were the difference maker in February. Excluding gasoline stations, retail sales declined 0.2% month-over-month, providing a sign of things to come perhaps as gas prices have moved higher in March.
Import prices rose 1.4% in February after increasing 1.9% in January. Excluding oil, import prices rose 0.8% after increasing 1.3% in January. Export prices rose 3.0% after increasing 2.8% in January. Excluding agriculture, export prices also rose 3.0% after increasing 2.8% in January.
The NAHB Housing Market Index for March decreased to 79 (Briefing.com consensus 81) from a revised reading of 81 (from 82) in February.
Business inventories increased 1.1% m/m in January following a revised 2.4% increase (from 2.1%) in December.
The weekly MBA Mortgage Applications Index declined 1.2% following an 8.5% increase in the prior week.

Looking ahead, investors will receive Housing Starts and Building Permits for February, weekly Initial and Continuing Claims, Industrial Production and Capacity Utilization for February, and the Philadelphia Fed Index for March on Thursday.

Dow Jones Industrial Average -6.3% YTD
S&P 500 -8.6% YTD
Russell 2000 -9.6% YTD
Nasdaq Composite -14.1% YTD

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 33544.34 +599.10 (1.82%)
Nasdaq 12948.62 +367.40 (2.92%)
SP 500 4262.45 +89.34 (2.14%)
10-yr Note 0/32 2.149
NYSE Adv 2232 Dec 998 Vol 1.2 bln
Nasdaq Adv 2554 Dec 1645 Vol 5.3 bln

Industry Watch
Strong: Consumer Discretionary, Information Technology, Utilities, Consumer Staples
Weak: Energy

Moving the Market

-- Stock market rallies, except for energy stocks

-- Oil prices extend pullback by another 6.5%

-- PPI data for February was better than feared

Stocks rally, oil prices extend pullback
15-Mar-22 16:15 ET
Dow +599.10 at 33544.34, Nasdaq +367.40 at 12948.62, S&P +89.34 at 4262.45

[BRIEFING.COM] The S&P 500 rose 2.1% on Tuesday, providing investors relief as oil prices extended their pullback and PPI data for February was better than feared. The Nasdaq Composite gained 2.9%, the Dow Jones Industrial Average gained 1.8%, and the Russell 2000 gained 1.4%.

Stocks that have been the hardest this year saw the biggest gains today, particularly the large growth stocks within the S&P 500 information technology (+3.4%) and consumer discretionary (+3.4%) sectors. The energy sector (-3.7%) was the only sector that closed lower, losing 3.7% amid the drop in oil prices.

Crude futures fell 6.5%, or $6.66, to $96.16/bbl, as growth concerns lingered due to China's recent COVID-19 lockdowns. The stock market, however, overlooked the growth-concern aspect, perhaps because it welcomed the 26% retracement in oil prices since last week's highs, or because it was simply primed for a bounce.

The positive surprises in the inflation data helped, too, while the airline stocks rallied around higher Q1 revenue guidance from Delta (DAL 34.86, +2.79, +8.7%), United (UAL 38.24, +3.22, +9.2%), and Southwest (LUV 42.06, +1.96, +4.9%).

Some caveats include a recognition that the Producer Price Index for final demand was up 10.0% year-over-year -- softening the surprise that it was up 0.8% month-over-month, versus the Briefing.com consensus of 1.0% -- and that the airlines are still expecting revenue below pre-pandemic levels.

Treasury yields dipped in the wake of the PPI data, but they turned positive late in the session as stocks pushed towards session highs. There wasn't any specific catalyst behind the moves, leading some to speculate that the stock market might have been frontrunning a positive reaction to the FOMC decision tomorrow.

The 2-yr yield increased two basis points to 1.86% after touching 1.79% intraday, and the 10-yr yield increased two basis points to 2.16% after touching 2.08% intraday. The U.S. Dollar Index was little changed at 98.99.

On Russia-Ukraine, the headlines didn't seem to get worse, which was a relatively good thing. On a related note, Ukraine President Zelensky will address the U.S. Congress tomorrow at 9:00 a.m. ET, and President Biden will travel to Europe next week to attend a NATO summit on March 24.

Separately, Coupa Software (COUP 72.55, -17.27, -19.2%) was the latest growth stock that suffered a material decline after providing disappointing guidance.

Reviewing Tuesday's economic data:

The Producer Price Index for final demand increased 0.8% month-over-month in February (Briefing.com consensus +1.0%) following an upwardly revised 1.2% increase (from 1.0%) in January. The index for final demand, less foods and energy, rose 0.2% month-over-month (Briefing.com consensus +0.6%) following an upwardly revised 1.0% increase (from 0.8%) in January. On a year-over-year basis, the index for final demand was up 10.0% on an unadjusted basis while the index for final demand, less foods and energy, was up 8.4%.
The key takeaway is that we already know that consumers are being dealt the rising costs for producers; moreover, with the index for processed goods for intermediate demand increasing 1.6% month-over-month in February and the index for unprocessed goods for intermediate demand increasing 14.6% month-over-month, we already know that producers aren't going to see much, if any, cost relief in March.
The Empire State Manufacturing Survey for March dropped to -11.8 (Briefing.com consensus 9.0) from 3.1 in February.

Looking ahead to Wednesday, investors will receive the FOMC Rate Decision, Retail Sales for February, Import/Export Prices for February, the NAHB Housing Market Index for March, Business Inventories for January, and the weekly MBA Mortgage Applications Index.

Dow Jones Industrial Average -7.7% YTD
S&P 500 -10.6% YTD
Russell 2000 -12.3% YTD
Nasdaq Composite -17.2% YTD

Crude futures fall to $96 per barrel
15-Mar-22 15:30 ET
Dow +623.66 at 33568.90, Nasdaq +352.28 at 12933.50, S&P +88.80 at 4261.91

[BRIEFING.COM] The S&P 500 is trading at session highs with a 2.2% gain with the recent bump exuding a fear of missing out. In addition, the market could be frontrunning a positive reaction to the FOMC decision tomorrow.

One last look at the sectors shows consumer discretionary (+3.5%) and information technology (+3.3%) up more than 3.0%, while the energy sector (-3.5%) remains the lone holdout with a 3.5% decline.

WTI crude futures settled lower by $6.66 (-6.5%) to $96.16/barrel.

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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 32945.24 +1.05 (0.00%)
Nasdaq 12581.22 -262.59 (-2.04%)
SP 500 4173.11 -31.20 (-0.74%)
10-yr Note -13/32 2.143
NYSE Adv 847 Dec 2404 Vol 1.2 bln
Nasdaq Adv 1138 Dec 3225 Vol 5.8 bln

Industry Watch
Strong: Financials, Health Care, Consumer Staples, Industrials
Weak: Energy, Information Technology, Consumer Discretionary

Moving the Market

-- Growth stocks pace steady decline, Nasdaq underperforms

-- Oil prices drop 7% and Treasury yields spike

-- Reported progress in Russia-Ukraine talks; China locks down Shenzhen due to COVID-19 outbreak

Down day as higher rates outweigh lower oil prices
14-Mar-22 16:20 ET
Dow +1.05 at 32945.24, Nasdaq -262.59 at 12581.22, S&P -31.20 at 4173.11

[BRIEFING.COM] The S&P 500 lost 0.7% on Monday, as the negative impact to growth stocks following another rise Treasury yields outweighed the benefit of weaker oil prices ($102.82, -6.28, -5.8%). The Nasdaq Composite (-2.0%) and Russell 2000 (-1.9%) both fell about 2%, while the Dow Jones Industrial Average finished flat.

Declining issues outpaced advancing issues by roughly a 3:1 margin at the NYSE and Nasdaq. The S&P 500 information technology (-1.9%), communication services (-1.8%), and consumer discretionary (-%) sectors, which contain the mega-caps, were among the laggards next to the energy sector (-2.9%).

Conversely, the financials sector (+1.3%) followed rates to the top of the leaderboard. The health care (+0.7%), consumer staples (+0.6%), and industrials (+0.3%) sectors posted more modest gains. A handful of stocks within these sectors were responsible for the relative outperformance of the Dow.

Early on, the market appreciated the decline in oil prices, which briefly fell below $100.00 per barrel after Russia and Ukraine reported progress in ceasefire negotiations. Russia's military actions suggested otherwise, but to be fair, both sides paused today's talks to go over technical language tomorrow.

The S&P 500 was up 1.0% intraday even as Treasury yields were on the rise. The higher rates were catalyzed overnight after China locked down Shenzhen, a major technology hub, due to a COVID-19 outbreak. The potential for increased supply disruptions fed into inflation expectations, and in turn, rate-hike expectations.

The growth stocks, unfortunately, coughed up gains and led the market lower as Treasury yields refused to let up. The 2-yr yield settled higher by nine basis points to 1.84%, and the 10-yr yield settled higher by 14 basis points to 2.14%. The U.S. Dollar Index was roughly unchanged at 99.09.

Selling picked up as the S&P 500 was unable to hold onto the psychological 4200 level. Apple (AAPL 150.62, -4.11, -2.7%) was a particular drag, breaking below its 200-day moving average (153.74) amid news that Foxconn halted production at an iPhone factory because of the Chinese lockdown.

Uber (UBER 29.27, -1.49, -4.8%), meanwhile, announced a fuel surcharge for customers, exacerbating concerns that inflation will slow down consumer spending. UBER shares fell 5%.

Investors did not receive any economic data on Monday. Looking ahead, investors will receive the Producer Price Index for February and the Empire State Manufacturing Survey for March on Tuesday.

Dow Jones Industrial Average -9.3% YTD
S&P 500 -12.4% YTD
Russell 2000 -13.5% YTD
Nasdaq Composite -19.6% YTD

Crude futures settle lower by 6%
14-Mar-22 15:30 ET
Dow +16.94 at 32961.13, Nasdaq -235.91 at 12607.90, S&P -28.78 at 4175.53

[BRIEFING.COM] The S&P 500 is down 0.7%, and the Russell 2000 is down 2.0%.

One last look at the sectors shows energy (-3.6%) at the bottom of the standings with a 3.6% decline due to the weaker oil prices. The information technology (-1.5%), consumer discretionary (-1.6%), and communication services (-1.7%) sectors follow suit amid weakness in the mega-caps.

Conversely, the financials (+1.3%), health care (+0.6%), utilities (+0.6%), and industrials (+0.2%) sectors are trading higher.

WTI crude futures settled lower by $6.28 (-5.8%) to $102.82/barrel after briefly falling below $100.00/barrel intraday.