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Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35753.89 +261.19 (0.74%)
Nasdaq 15521.88 +180.81 (1.18%)
SP 500 4696.56 +47.33 (1.02%)
10-yr Note +7/32 1.457
NYSE Adv 2442 Dec 843 Vol 715.4 mln
Nasdaq Adv 2748 Dec 1805 Vol 3.99 bln
Industry Watch
Strong: Consumer Discretionary, Technology, Real Estate, Communication Services, Materials
Weak: Consumer Staples, Utilities, Industrials
Moving the Market
Q3 GDP revised up to 2.3% from 2.1% in final estimate
Discretionary sector paces early advance
Gains in most global markets reflect improved sentiment
Nasdaq Paces Wednesday Rally
22-Dec-21 16:15 ET
Dow +261.19 at 35753.89, Nasdaq +180.81 at 15521.88, S&P +47.33 at 4696.56
[BRIEFING.COM] The stock market ended Wednesday on a firmly higher note with the Nasdaq (+1.2%) finishing ahead of the S&P 500 (+1.0%) and Dow (+0.7%).
The Wednesday advance unfolded in steady fashion, and it followed a positive showing from global equity markets. Reports from Washington remained focused on the administration's fiscal spending plans, which are expected to face continued resistance from Senator Manchin, who indicated that he would like to see spending proposals go through the reconciliation process.
All eleven sectors finished the day in positive territory with the consumer discretionary sector (+1.7%) ending in the lead while eight of the remaining ten groups recorded gains of under 1.0%. Top-weighted technology (+1.3%) finished behind the discretionary sector while industrials (+0.3%) and utilities (+0.4%) finished at the bottom of the leaderboard.
The discretionary sector drew support from gains in most components, though Tesla (TSLA 1008.87, +70.34, +7.5%) was a big driver of the outperformance, rallying back toward its 50-day moving average (1032.61) after CEO Musk said that he has "sold enough stock." Tesla's outperformance masked relative weakness in Amazon (AMZN 3420.74, +12.40, +0.4%) while CarMax (KMX 127.87, -9.12, -6.7%) fell past its 200-day moving average (132.46) to its lowest level since early October after its Q3 beat was marred by contracting margins.
As for technology, the influential group received support from gains in its largest components like Apple (AAPL 175.64, +2.65, +1.5%), Microsoft (MSFT 333.20, +5.91, +1.8%), Visa (V 217.96, +2.58, +1.2%), and Mastercard (MA 357.48, +6.74, +1.9%), which masked relative weakness among chipmakers. However, the PHLX Semiconductor Index (+0.9%) rallied into the close, narrowing its performance gap.
The health care sector (+1.2%) also finished among the leaders thanks to gains in all but six of its components. Pfizer (PFE 59.55, +0.60, +1.0%) climbed toward its record high from Monday after the FDA issued an emergency use authorization for the company's antiviral coronavirus treatment.
The industrials sector (+0.3%) finished at the bottom of the leaderboard, due in part to underperformance from transport stocks that kept the Dow Jones Transportation Average near its unchanged level into the close.
Treasuries climbed with the 10-yr yield slipping three basis points to 1.46%. WTI crude rose $1.66, or 2.3%, to $72.77/bbl, revisiting its high from last week.
Reviewing today's economic data:
The third estimate for Q3 GDP showed an upward revision to 2.3% (Briefing.com consensus 2.1%) from the second estimate of 2.1%. The GDP Price Deflator was revised to 6.0% (Briefing.com consensus 5.9%) from the second estimate of 5.9%.
The key takeaway from the report is that the growth had a lot to do with the change in private inventories. Real final sales of domestic product, which excludes the change in private inventories, were up 0.1%.
The Conference Board's Consumer Confidence Index increased to 115.8 in December (Briefing.com consensus 111.5) from an upwardly revised 111.9 (from 109.5) in November.
The key takeaway from the report is that the pickup in the short-term outlook, despite inflation pressures and the arrival of the Omicron variant, suggests consumer spending should remain a positive GDP growth driver.
Existing home sales increased 1.9% m/m in November to a seasonally adjusted annual rate of 6.46 million (Briefing.com consensus 6.50 million). Total sales in November were down 2.0% from a year ago.
The key takeaway from the report is that inventory remains extremely tight. That is leading to hefty price increases and crimping sales growth in the existing home market because of the limited supply and affordability pressures for prospective buyers.
The weekly MBA Mortgage Index fell 0.6% to follow last week's 4.0% decrease. The Purchase Index fell 3.3% while the Refinance Index rose 2.2%.
The market will receive a full slate of data tomorrow, starting with November Personal Income (Briefing.com consensus 0.5%; prior 0.5%), Personal Spending (Briefing.com consensus 0.6%; prior 1.3%), PCE Prices (prior 0.6%), Core PCE Prices (Briefing.com consensus 0.4%; prior 0.6%), weekly Initial Claims (Briefing.com consensus 206,000; prior 206,000), Continuing Claims (prior 1.845 mln), November Durable Orders (Briefing.com consensus 1.5%; prior -0.5%), and Durable Orders -ex transportation (Briefing.com consensus 0.6%; prior 0.5%) at 8:30 ET, followed by November New Home Sales (Briefing.com consensus 770,000; prior 745,000) and the final December University of Michigan Consumer Sentiment survey (Briefing.com consensus 70.4; prior 70.4) at 10:00 ET.
S&P 500 +25.0% YTD
Nasdaq Composite +20.4% YTD
Dow Jones Industrial Average +16.8% YTD
Russell 2000 +12.5% YTD
Crude Oil Nears Recent High
22-Dec-21 15:30 ET
Dow +207.34 at 35700.04, Nasdaq +129.28 at 15470.35, S&P +35.70 at 4684.93
[BRIEFING.COM] The S&P 500 trades higher by 0.8% with 30 minutes remaining in today's session. The benchmark index is now up 1.4% for the week and up 2.6% since the end of November.
All eleven sectors continue holding gains going into the home stretch, including the energy sector (+0.6%), which made a brief appearance among the leaders in early trade. The sector has climbed 2.2% this week, trading only behind the technology sector (+1.0%; +2.3% week-to-date) on this week's leaderboard.
The energy sector received support from a rising price of oil, as WTI crude climbed $1.66, or 2.3%, to $72.77/bbl, revisiting its high from last week.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35492.70 +560.54 (1.60%)
Nasdaq 15341.07 +360.14 (2.40%)
SP 500 4649.23 +81.21 (1.78%)
10-yr Note -5/32 1.484
NYSE Adv 2682 Dec 583 Vol 961.1 mln
Nasdaq Adv 3360 Dec 1144 Vol 4.5 bln
Industry Watch
Strong: Energy, Information Technology, Consumer Discretionary, Financials
Weak: Consumer Staples, Utilities
Moving the Market
-- Rebound-minded action permeates market
-- A belief that the market was oversold on a short-term basis and was due for a rebound
-- Nike (NKE) and Micron (MU) beat earnings expectations
-- S&P 500 reclaims 50-day moving average (4614)
Rebound bias permeates the market
21-Dec-21 16:20 ET
Dow +560.54 at 35492.70, Nasdaq +360.14 at 15341.07, S&P +81.21 at 4649.23
[BRIEFING.COM] The S&P 500 rallied 1.8% on Tuesday, bouncing back from a three-day skid amid a buy-the-dip mindset. The Dow Jones Industrial Average rose 1.6% while the Nasdaq Composite and Russell 2000 outperformed with 2.4% and 3.0% gains, respectively.
Nine of the 11 S&P 500 sectors closed higher, paced by the energy (+2.9%), information technology (+2.6%), consumer discretionary (+2.5%), and financials (+2.0%) sectors with 2-3% gains. The defensive-oriented utilities (-0.2%) and consumer staples (-0.1%) sectors were the exceptions.
There was a shift in sentiment, precipitated by a belief that the market had gotten oversold on a short-term basis and was due for a rebound. Conviction in buying efforts increased as the S&P 500 reclaimed its 50-day moving average (4614) after closing below the key technical level yesterday.
The mega-caps solidified the rally effort later in the day after a slow start to the session. The Vanguard Mega Cap Growth ETF (MGK 255.18, +5.77, +2.3%) advanced 2.3% after being up just 0.1% at its session low.
To be fair, there were some positive-sounding news in the mix. President Biden said the U.S. is "absolutely not" going back to March 2020 in terms of lockdowns and having to worry about serious infection. Separately, reports suggested that the door is still open for Senator Manchin (D-WV) to get on board with the Build Back Better Act.
Nike (NKE 166.63, +9.65, +6.2%) and Micron (MU 90.68, +8.65, +10.5%) supported their own causes with better-than-expected earnings reports, and the positive reactions carried over to the retail and semiconductor spaces. The SPDR S&P Retail ETF (XRT 87.77, +2.62) gained 3.1%. The Philadelphia Semiconductor Index gained 3.4%.
The rebound-minded action extended beyond equities. Briefly, Treasury yields settled higher in a curve-steepening trade, WTI crude futures rose 3.6%, or $2.45, to $71.11/bbl, copper futures rose 1.2% to $4.347/lb, and even cryptocurrencies saw some relief.
The 2-yr yield rose five basis points to 0.67%, and the 10-yr yield rose seven basis points to 1.49%. The U.S. Dollar Index decreased 0.1% to 96.49. The CBOE Volatility Index dropped 8.1% to 21.01, as hedging interest waned with the bullish price action in the major indices.
Reviewing Tuesday's economic data:
The Current Account Balance for the third quarter totaled $214.8 billion (Briefing.com consensus -$204.8 billion). The second quarter deficit was upwardly revised to $198.3 billion from $190.3 billion.
Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for December, Existing Home Sales for November, the third estimate for Q3 GDP, and the weekly MBA Mortgage Applications Index on Wednesday.
S&P 500 +23.8% YTD
Nasdaq Composite +19.0% YTD
Dow Jones Industrial Average +16.0% YTD
Russell 2000 +11.6% YTD
Crude futures rebound alongside equities
21-Dec-21 15:30 ET
Dow +541.27 at 35473.43, Nasdaq +321.68 at 15302.61, S&P +75.47 at 4643.49
[BRIEFING.COM] The S&P 500 is up 1.6% while the Russell 2000 is up 2.8%.
One last look at the sectors shows energy (+3.0%), information technology (+2.3%), and consumer discretionary (+2.2%) up more than 2.0%, while the utilities (-0.2%) and consumer staples (-0.1%) sectors remain in negative territory.
WTI crude futures settled higher by 3.6%, or $2.45, to $71.11/bbl amid the rebound-minded bias in the broader market.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34932.16 -433.28 (-1.23%)
Nasdaq 14980.93 -188.74 (-1.24%)
SP 500 4568.02 -52.62 (-1.14%)
10-yr Note +3/32 1.380
NYSE Adv 636 Dec 2634 Vol 1.1 bln
Nasdaq Adv 1267 Dec 3258 Vol 4.4 bln
Industry Watch
Strong: Consumer Staples, Utilities
Weak: Financials, Materials, Consumer Discretionary, Industrials
Moving the Market
-- Sharp losses amid growth concerns, although market closes off intraday lows
-- Europe tightens economic restrictions, Senator Manchin (D-WV) rejects Build Back Better Act
-- S&P 500 closes below 50-day moving average (4608)
Major indices decline sharply but off lows
20-Dec-21 16:20 ET
Dow -433.28 at 34932.16, Nasdaq -188.74 at 14980.93, S&P -52.62 at 4568.02
[BRIEFING.COM] The S&P 500 fell 1.1% on Monday amid pestering growth concerns, although the benchmark index was down as much as 1.9% intraday. The Nasdaq Composite (-1.2%) and Dow Jones Industrial Average (-1.2%) both declined 1.2% while the Russell 2000 lagged with a 1.6% decline.
Growth concerns were driven by new COVID restrictions in Europe, word from Senator Manchin (D-WV) that he won't support the $1.75 trillion Build Back Better Act, and a view that the Fed could be tightening policy at an inopportune time next year.
Sellers maintained control of the market until shortly after the close of European markets (11:30 a.m. ET). Buyers stepped in, spying a good entry point with the S&P 500 trading below its 50-day moving average (4608) and down as much as 4.3% from its intraday high last Thursday.
The S&P 500 still closed below that key technical level, but two of its 11 sectors did sneak into positive territory, namely utilities (+0.1%) and consumer staples (+0.04%). The cyclical financials (-1.9%), materials (-1.8%), industrials (-1.7%), and consumer discretionary (-1.7%) sectors closed sharply lower.
Moderna (MRNA 276.38, -18.42, -6.3%) fumbled a 9% gain, and closed lower by 6%, even though the company announced encouraging preliminary data for its COVID-19 booster shots. Oracle (ORCL 91.64, -4.98, -5.2%) fell 5% on confirmation of its acquisition of Cerner (CERN 90.49, +0.72, +0.8%) for $95.00/share in cash, or approximately $28.3 billion in equity value.
Elsewhere, a steepened Treasury yield curve signaled a more constructive perspective. The 10-yr yield increased two basis points to 1.42% after trading at 1.35% overnight. The 2-yr yield decreased two basis points to 0.62% amid a view that the Fed could still lean cautiously next year given the economic uncertainty of the Omicron variant.
WTI crude futures fell 3% ($68.66/bbl, -2.27, -3.2%) on expectations for weaker demand amid tighter economic restrictions. The U.S. Dollar Index decreased 0.1% to 96.51. The CBOE Volatility Index closed higher by 6.0% at 22.87 after topping 27.00 intraday.
Monday's economic data was limited to the Conference Board's Leading Economic Index (LEI), which increased 1.1% in November (Briefing.com consensus 1.0%) following a 0.9% increase in October. Looking ahead, investors will receive the Currant Account Balance for the third quarter on Tuesday.
S&P 500 +21.6% YTD
Nasdaq Composite +16.2% YTD
Dow Jones Industrial Average +14.1% YTD
Russell 2000 +8.3% YTD
Crude futures settle sharply lower amid demand concerns
20-Dec-21 15:30 ET
Dow -505.17 at 34860.27, Nasdaq -189.24 at 14980.43, S&P -59.54 at 4561.10
[BRIEFING.COM] The S&P 500 continues to trade lower by 1.3% amid losses in all 11 sectors.
One last look at the sectors shows financials (-2.3%), materials (-2.0%), industrials (-1.8%), and consumer discretionary (-1.8%) underperforming with sharp losses while the consumer staples (-0.1%) and utilities (-0.2%) sectors are down just 0.1-0.2%.
WTI crude futures settled lower by 3.2%, or $2.27, to $68.66/bbl amid demand concerns attributed to new COVID restrictions in Europe.
Market Snapshot
briefing.com
Dow 35365.44 -532.20 (-1.48%)
Nasdaq 15169.67 -10.75 (-0.07%)
SP 500 4620.64 -48.03 (-1.03%)
10-yr Note +3/32 1.388
NYSE Adv 1366 Dec 1889 Vol 3.5 bln
Nasdaq Adv 2407 Dec 1991 Vol 7.4 bln
Industry Watch
Strong: Real Estate
Weak: Financials, Energy, Industrials, Consumer Staples, Utilities
Moving the Market
-- Large-cap indices close lower amid growth concerns, technical factors
-- S&P 500 found technical support at 50-day moving average (4604)
-- Treasury yield curve flattens
S&P 500 falls 1% in broad-based decline
17-Dec-21 16:20 ET
Dow -532.20 at 35365.44, Nasdaq -10.75 at 15169.67, S&P -48.03 at 4620.64
[BRIEFING.COM] The S&P 500 fell 1.0% on this quadruple witching-options expiration Friday, as the market was influenced by growth concerns and technical factors. The Dow Jones Industrial Average fell 1.5%, while the Nasdaq Composite decreased just 0.1% and the Russell 2000 gained 1.0%.
The COVID-19 situation seemed to weigh on the market with sporting events continuing to get postponed, President Biden warning of "winter of severe illness and death" for those unvaccinated against COVID-19, and former FDA Commissioner Gottlieb suggesting that businesses in New York might voluntarily close for a few weeks due to surging cases.
All 11 S&P 500 sectors closed lower, led by the cyclical financials (-2.3%), energy (-2.3%), and industrials (-1.7%) sectors; the Treasury yield curve flattened amid increased demand for longer-dated maturities; and oil prices ($70.93, -1.43, -2.0%) settled sharply lower. The real estate sector (-0.3%) declined the least.
Technical factors were most evident in the S&P 500, which found support at its 50-day moving average (4604) after it dipped below the level in the morning. The mega-caps lifted the benchmark index off those lows, as investors presumably saw their recent declines as a good buying opportunity.
Similarly, small-caps and retail stocks saw some relief after lagging in recent weeks, benefiting from rotation-minded activity. The Russell 2000 and SPDR S&P Retail ETF (XRT 87.99, +0.45, +0.5%) both entered the session in correction territory, or down more than 10.0% from recent highs.
Oracle (ORCL 96.61, -6.61, -6.4%) saw no relief after The Wall Street Journal reported that the company is in discussions to acquire Cerner (CERN 89.77, +10.28, +12.9%) for as much as $30 billion. ORCL shares fell 6% while CERN shares rose 13%.
Rivian (RIVN 97.70, -11.17, -10.3%) dropped 10% after missing EPS estimates while FedEx (FDX 250.32, +11.80, +5.0%) rose 5% on pleasing earnings news. FedEx also authorized a new $5 billion share repurchase program.
Recapping the price action in the Treasury market, the 2-yr yield increased three basis points to 0.64% while the 10-yr yield decreased two basis points to 1.40%. The U.S. Dollar Index gained 0.7% to 96.68.
Investors did not receive any economic data on Friday. Looking ahead, the Conference Board will release its Leading Economic Index for November on Monday.
S&P 500 +23.0% YTD
Nasdaq Composite +17.7% YTD
Dow Jones Industrial Average +15.6% YTD
Russell 2000 +10.1% YTD
Crude futures fall 2%
17-Dec-21 15:30 ET
Dow -419.25 at 35478.39, Nasdaq +19.88 at 15200.30, S&P -33.17 at 4635.50
[BRIEFING.COM] The S&P 500 is down 0.7% and on track to end the week with a 1.6% decline.
One last look at the sectors shows financials (-1.9%), materials (-1.9%), and industrials (-1.1%) down more than 1.0% while the real estate sector (+0.2%) is the only sector trading higher.
WTI crude futures settled lower by 2.0%, or $1.43, to $70.93/bbl.
Market Snapshot
https://stockcharts.com/def/servlet/ScanUI
Dow 35897.64 -29.79 (-0.08%)
Nasdaq 15180.42 -385.15 (-2.47%)
SP 500 4668.67 -41.18 (-0.87%)
10-yr Note +3/32 1.424
NYSE Adv 1494 Dec 1775 Vol 1.1 bln
Nasdaq Adv 1557 Dec 2890 Vol 4.8 bln
Industry Watch
Strong: Energy, Materials, Financials, Health Care, Consumer Staples
Weak: Information Technology, Consumer Discretionary
Moving the Market
-- Mega-caps/growth stocks fumble post-FOMC gains while value stocks rise
-- Adobe (ADBE) sinks on disappointing earnings news
-- 2-yr yield drops, outpaces decline in 10-yr yield
Mega-caps reverse course and drag market lower
16-Dec-21 16:15 ET
Dow -29.79 at 35897.64, Nasdaq -385.15 at 15180.42, S&P -41.18 at 4668.67
[BRIEFING.COM] The S&P 500 fell 0.9% on Thursday, as the mega-caps fumbled their post-FOMC gains and dragged the benchmark index lower in a steady retreat. The Nasdaq Composite (-2.5%) and Russell 2000 (-2.0%) saw steeper declines, while the Dow Jones Industrial Average outperformed on a relative basis with a 0.1% decline.
The market had a bullish tone in the pre-market session, but that started to unwind after Adobe (ADBE 566.09, -64.24, -10.2%) issued downside guidance for fiscal Q1 and FY22. ADBE shares dropped 10%, and the lack of dip-buying efforts appeared to weigh on sentiment and other growth stocks with high valuations.
Moreover, the pace and ease at which the growth stocks retreated supported suspicions that yesterday's rally was fueled by short-covering activity. The heavily-weighted S&P 500 information technology (-2.9%) and consumer discretionary (-2.2%) sectors tumbled 3% and 2%, respectively.
The value-oriented stocks, though, extended gains. It's just that the mega-cap losses diminished their positive influence. Eight of the 11 S&P 500 sectors, including financials (+1.2%), materials (+1.0%), and energy (+0.7%), closed higher. The Russell 1000 Value Index gained 0.5%.
The financials sector drew support from the curve-steepening activity in the Treasury market, driven by a steeper decline in shorter-dated yields versus longer-dated yields. The 2-yr yield decreased six basis points to 0.61%, and the 10-yr yield decreased four basis points to 1.42%. The U.S. Dollar Index fell 0.6% to 95.98.
The gains in the cyclical sectors, the curve-steepening activity, and even an increase in oil prices ($72.36/bbl, +1.47, +2.1%) indicated that growth concerns weren't a driving force in today's index declines.
On a related note, housing starts and building permits for November were better than expected, and while weekly initial claims were higher than expected (206,000), the four-week moving average (203,750) declined to its lowest level since Nov. 15, 1969.
In light of the Fed's decision yesterday, other central bank meetings received additional attention. The Bank of England increased its bank rate by 15 basis points to 0.25% in a surprise move while the European Central Bank left rates unchanged, as expected, and announced a further tapering of asset purchases.
Reviewing Thursday's economic data:
Housing starts in November increased 11.8% month-over-month to a seasonally adjusted annual rate of 1.679 million units (Briefing.com consensus 1.570 million) while building permits rose 3.6% to 1.712 million (Briefing.com consensus 1.670 million).
The key takeaway from this report was the strength seen in single-unit activity for both starts (+11.3%) and permits (+2.7%), as new supply is greatly needed in a tight and increasingly cost-prohibitive housing market.
Initial jobless claims for the week ending December 11 were a bit higher than expected, increasing by 18,000 to 206,000 (Briefing.com consensus 195,000), but still holding at a relatively low and encouraging level. Continuing claims for the week ending December 4 decreased by 154,000 to 1.845 million, which is the lowest since March 14, 2020.
The key takeaway from the report is the understanding that the four-week moving average for initial claims (203,750) is the lowest since November 15, 1969.
Total industrial production increased 0.5% in November (Briefing.com consensus +0.8%) following an upwardly revised 1.7% increase (from 1.6%) in October. The capacity utilization rate rose to 76.8% (Briefing.com consensus 76.8%) from an upwardly revised 76.5% (from 76.4%) in October.
The key takeaway from the report is that it points to plenty of latent growth potential when the semiconductor supply shortage, and other supply chain issues, can get worked out.
The Philadelphia Fed Index for December dropped to 15.4 (Briefing.com consensus 30.0) from 39.0 in November.
The preliminary IHS Markit Services PMI decreased to 57.5 from the final reading of 58.0 in November. The preliminary IHS Markit Manufacturing PMI decreased to 57.8 from the final reading of 58.3 in November.
There is no economic data scheduled for Friday.
S&P 500 +24.3% YTD
Nasdaq Composite +17.8% YTD
Dow Jones Industrial Average +17.3% YTD
Russell 2000 +9.0% YTD
WTI crude futures settle higher by 2%
16-Dec-21 15:30 ET
Dow +36.03 at 35963.46, Nasdaq -356.51 at 15209.06, S&P -33.22 at 4676.63
[BRIEFING.COM] The S&P 500 is down 0.7% to trade off prior lows (-1.2%).
One last look at the sectors shows information technology (-2.8%), consumer discretionary (-1.8%), and communication services (-0.3%) as the only sectors trading lower. The financials (+1.4%) and materials (+1.1%) are atop the standings with gains over 1.0%.
WTI crude futures settled higher by 2.1%, or $1.47, to $72.36/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35927.56 +383.38 (1.08%)
Nasdaq 15565.57 +327.94 (2.15%)
SP 500 4709.84 +75.75 (1.63%)
10-yr Note -1/32 1.457
NYSE Adv 2135 Dec 1141 Vol 1.1 bln
Nasdaq Adv 2725 Dec 1601 Vol 5.2 bln
Industry Watch
Strong: Health Care, Information Technology, Utilities, Real Estate
Weak: Materials, Consumer Discretionary, Energy
Moving the Market
-- Positive reaction to the FOMC statement and economic/rate projections
-- Fed funds rate left near zero and most Fed members see at least three rate hikes in 2022
-- Fed Chair Powell talks positively on the labor market and the consumer
-- Retail sales for November miss expectations
Stocks rally after Fed does the expected
15-Dec-21 16:20 ET
Dow +383.38 at 35927.56, Nasdaq +327.94 at 15565.57, S&P +75.75 at 4709.84
[BRIEFING.COM] The S&P 500 rallied 1.6% on Wednesday, ending a two-day skid as the market reacted positively to the Fed's policy decision and Fed Chair Powell's press conference. The Dow Jones Industrial Average (+1.1%), Nasdaq Composite (+2.2%), and Russell 2000 (+1.7%) also closed sharply higher.
As anticipated, the Fed left the target range for the fed funds rate unchanged at 0.00-0.25%, said it will double the reduction of asset purchases to $30 billion per month ($20 billion for Treasuries and $10 billion for agency MBS), and signaled three rate hikes in 2022 amid expectations for continued inflation pressures.
The market was pleased to hear Fed Chair Powell talk positively on the labor market and the consumer, even as the Omicron variant poses a risk to the economy. He argued the Fed will tighten policy in a gradual, yet accommodative, way because of robust economic activity that is driving inflation higher. That was an optimistic point of view for the market.
Investors swiftly bought the dip in the mega-caps, which were dragging the S&P 500 lower by 0.3% prior to the Fed announcement. The heavily-weighted S&P 500 information technology sector went from a 0.7% intraday decline to a sector-leading 2.8% gain by the close.
The health care (+2.1%), utilities (+1.7%), real estate (+1.5%), and consumer staples (+1.2%) sectors were strong all session. The energy sector (-0.4%), on the other hand, was the only sector that closed lower despite higher oil prices ($70.89, +0.32, +0.5%).
Strikingly, the fed-funds-sensitive 2-yr yield settled higher by just one basis point to 0.67% after hitting 0.72% in the wake of the FOMC statement. With three rate hikes forecasted for next year, the 2-yr yield might have already priced in the Fed's near-term path. The 10-yr yield rose three basis points to 1.46%. The U.S. Dollar Index lost 0.2% to 96.37.
Short-covering activity might have contributed to today's price action. The CBOE Volatility Index was up 7.2% intraday amid increased hedging interest but ended the session lower by 11.9% to 19.29.
In corporate news, Eli Lilly (LLY 275.12, +25.90, +10.4%) climbed 10% after the company provided upbeat FY21 and FY22 EPS guidance. Lowe's (LOW 257.56, +5.10, +2.0%) overcame a negative start attributed to relatively disappointing guidance. Nucor (NUE 108.22, -10.20, -8.6%) wasn't as lucky, with shares losing 8.6% following its downbeat guidance.
Reviewing Wednesday's economic data:
Total retail sales were up 0.3% month-over-month (Briefing.com consensus +0.8%) as were retail sales, excluding autos (Briefing.com consensus +0.9%). On a year-over-year basis, total retail sales were up 18.2% and up 19.5% excluding autos.
The key takeaway from the report is that it likely reflects the push to make holiday purchases early given all the reports about supply chain bottlenecks, meaning it might not be as disappointing as it appears at first blush. Tellingly, nonstore retailer sales were flat after increasing 4.1% in October and electronics and appliance store sales were down 4.6% after increasing 3.1% in October.
Import prices increased 0.7% in November after increasing 1.5% in October. Excluding oil, import prices increased 0.5% after increasing 0.5% in October. Export prices increased 1.0% after increasing 1.6% in October. Excluding agriculture, export prices increased 1.0% after increasing 1.7% in October.
The Empire State Manufacturing Survey increased to 31.9 in December (Briefing.com consensus 25.0) from 30.9 in November.
The NAHB Housing Market Index increased to 84.0 in December (Briefing.com consensus 84.0) from 83.0 in November.
Business inventories increased 1.2% m/m in October (Briefing.com consensus 1.0%) following a revised 0.8% increase (from 0.7%) in September.
The weekly MBA Mortgage Applications Index decreased 4.0% following a 2.0% increase in the prior week.
Looking ahead to Thursday, investors will receive weekly Initial and Continuing Claims, Housing Starts and Building Permits for November, Industrial Production and Capacity Utilization for November, the Philadelphia Fed Index for December, and the preliminary IHS Markit Manufacturing and Services PMIs for December.
S&P 500 +25.4% YTD
Nasdaq Composite +20.8% YTD
Dow Jones Industrial Average +17.4% YTD
Russell 2000 +11.2% YTD
Crude futures settle higher
15-Dec-21 15:30 ET
Dow +371.81 at 35915.99, Nasdaq +274.19 at 15511.82, S&P +66.21 at 4700.30
[BRIEFING.COM] The S&P 500 is trading at session highs with a 1.3% gain, as Fed Chair Powell talks positively on the labor market and the consumer. He also also argued that he doesn't think the Fed isn't "behind the curve" on inflation.
One last look at the sectors shows ten sectors trading higher and one -- energy (-0.1%) -- trading lower. The information technology sector (+2.1%) has claimed the top spot after being down 0.7% earlier today.
WTI crude futures settled higher 0.5%, or $0.32, to $70.89/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35545.56 -105.39 (-0.30%)
Nasdaq 15237.63 -175.64 (-1.14%)
SP 500 4634.23 -34.74 (-0.74%)
10-yr Note -3/32 1.441
NYSE Adv 970 Dec 2334 Vol 1.0 bln
Nasdaq Adv 1272 Dec 3298 Vol 4.7 bln
Industry Watch
Strong: Financials
Weak: Information Technology, Real Estate, Industrials
Moving the Market
-- Major indices trade lower but off session lows
-- PPI data for November was hotter than expected
-- Lingering growth/coronavirus concerns
Stocks close lower following hot PPI data
14-Dec-21 16:20 ET
Dow -105.39 at 35545.56, Nasdaq -175.64 at 15237.63, S&P -34.74 at 4634.23
[BRIEFING.COM] The S&P 500 fell 0.8% on Tuesday, as concerns about inflation and economic growth weighed on sentiment during an important Fed policy meeting. The Nasdaq Composite (-1.1%) and Russell 2000 (-1.0%) both underperformed the benchmark index, while the Dow Jones Industrial Average declined just 0.3%.
Prior to the open, the Producer Price Index for November came in hotter than expected, with the index for final demand up 0.8% month-over-month (Briefing.com consensus 0.5%) and up 9.6% year-over-year. The hot inflation report may have put additional pressure on the Fed to announce a faster tapering plan and signal a more hawkish rate path tomorrow.
The market appeared concerned about the implications a more aggressive Fed would have on global growth with COVID-19 still disrupting supply chains and contributing to restrictive policies. Reports indicated that companies in a manufacturing hub in China suspended operations because of an outbreak in cases.
While the market eased off intraday lows in the afternoon, ten of the 11 S&P 500 sectors still closed lower. The information technology sector (-1.6%) led the retreat and featured influential weakness in Apple (AAPL 174.33, -1.41, -0.8%), Microsoft (MSFT 328.34, -11.06, -3.3%) and Adobe (ADBE 614.86, -43.44, -6.6%).
Apple, like Microsoft, succumbed to profit-taking interest, even though BofA Securities upgraded AAPL to Buy from Neutral. ADBE was downgraded to Neutral from Overweight at JP Morgan.
The financials sector (+0.6%) escaped with a respectable gain amid an uptick in Treasury yields. The 2-yr yield increased two basis points to 0.66%, and the 10-yr yield increased one basis point to 1.44%. The U.S. Dollar Index rose 0.3% to 96.58. WTI crude futures fell 0.9%, or $0.67, to $70.57/bbl.
The modest reaction in the Treasury market to the hot inflation data was an interesting development. Selling interest may have been capped by growth concerns and/or a view that a more aggressive Fed could rein in inflation pressures next year.
Separately, Pfizer (PFE 55.54, +0.34, +0.6%) specified its COVID-19 oral antiviral reduced the risk of hospitalization or death in high-risk patients by 89% when taken within three days of symptom onset. PFE shares rose to an all-time high.
Reviewing Tuesday's economic data:
The November Producer Price Index showed that the index for final demand increased 0.8% month-over-month (Briefing.com consensus 0.5%) while the index for final demand, less foods and energy, increased 0.7% (Briefing.com consensus 0.4%). That left the year-over-year increases on an unadjusted basis at 9.6% and 7.7%, respectively.
The key takeaway from the report is that it is another sign that inflation pressures are persisting in an unacceptable manner and it will likely force the Fed into an uncomfortable position of taking a more aggressive policy path at a time when the market also has festering concerns about a slowdown in growth.
The NFIB Small Business Optimism Index increased to 98.4 in November from 98.2 in October.
Looking ahead to Wednesday,, investors can expect the FOMC Rate Decision, Retail Sales for November, the NAHB Housing Market Index for December, Import and Export Prices for November, the Empire State Manufacturing Index for December, Business Inventories for October, and Net Long-Term TIC Flows for October.
S&P 500 +23.4% YTD
Nasdaq Composite +18.2% YTD
Dow Jones Industrial Average +16.1% YTD
Russell 2000 +9.4% YTD
Crude futures settle lower
14-Dec-21 15:30 ET
Dow -48.51 at 35602.44, Nasdaq -144.90 at 15268.37, S&P -27.30 at 4641.67
[BRIEFING.COM] The S&P 500 is down 0.7% after being down 1.3% earlier today.
One last look at the sectors shows ten of the 11 groups still trading lower. The information technology sector (-1.6%) is the weakest link, while the financials sector (+0.9%) outperforms with a 0.9% gain.
WTI crude futures settled lower by 0.9%, or $0.67, to $70.57/bbl. On a related note, the IEA lowered its global demand outlook for the rest of the year and 2022 because of the coronavirus.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35650.95 -320.04 (-0.89%)
Nasdaq 15413.27 -217.32 (-1.39%)
SP 500 4668.97 -43.05 (-0.91%)
10-yr Note +27/32 1.423
NYSE Adv 1015 Dec 2284 Vol 1.0 bln
Nasdaq Adv 1262 Dec 3142 Vol 4.4 bln
Industry Watch
Strong: Real Estate, Utilities, Consumer Staples, Health Care
Weak: Energy, Financials, Consumer Discretionary, Information Technology
Moving the Market
-- Major indices struggle in defensive session
-- Omicron variant hits UK policy and sentiment
-- Hesitation on the part of buyers in front of the FOMC policy meeting this week
-- Cyclical stocks underperformed, but so did the growth stocks
Major indices struggle in defensive session
13-Dec-21 16:20 ET
Dow -320.04 at 35650.95, Nasdaq -217.32 at 15413.27, S&P -43.05 at 4668.97
[BRIEFING.COM] The S&P 500 fell 0.9% on Monday in a defensive session, as investors digested the latest Omicron news and waited for the Fed's policy decision this week. The Dow Jones Industrial Average also declined 0.9%, while the Nasdaq Composite (-1.4%) and Russell 2000 (-1.4%) both declined 1.4%.
Risk sentiment was pressured by lingering growth concerns after UK Prime Minister Johnson warned of an impending "tidal wave" of new coronavirus cases and the British government upped its COVID-19 alert level. Cyclical stocks, including travel names, were among the weakest performers today.
The cyclical S&P 500 energy (-2.8%), consumer discretionary (-2.4%), and financials (-1.2%) sectors underperformed alongside the information technology sector (-1.6%). Accordingly, investors leaned defensively into the real estate (+1.3%), utilities (+1.2%), consumer staples (+1.2%), and health care (+0.9%) sectors.
After a record-setting rally last week, it's also plausible that investors saw the news as a convenient excuse to take profits and withhold buying conviction until the FOMC concludes its policy meeting on Wednesday. That's loosely based on the underperformance of the tech sector and growth stocks.
Apple (AAPL 175.74, -3.71, -2.1%) nearly reached a $3.0 trillion market capitalization after JP Morgan raised its price target on AAPL to a Street-high of $210. The firm also reiterated the stock with an Overweight rating and a "top pick into 2022." AAPL shares closed lower alongside the other mega-caps, even though long-term interest rates declined in their favor.
The Vanguard Mega Cap Growth ETF (MGK 258.09, -3.65, -1.4%) fell 1.4%, which was twice the decline of the Invesco S&P 500 Equal Weight ETF (RSP 158.58, -1.16, -0.7%).
Specifying the moves in the Treasury market, the 10-yr yield declined seven basis points to 1.42% while the 2-yr yield declined two basis points to 0.64% -- flattening the curve and corroborating growth concerns. The U.S. Dollar Index rose 0.3% to 96.36. WTI crude futures decreased 0.6%, or $0.46, to $71.24/bbl.
Pfizer (PFE 55.22, +2.44, +4.6%) was an individual standout with a 4.6% gain after agreeing to acquire Arena Pharma (ARNA 90.08, +40.14, +80.4%) for $6.7 billion, or $100 per share, in cash. The deal represented a 100% premium over ARNA's closing price from last Friday.
Investors did not receive any economic data on Monday. Looking ahead, investors will receive the Producer Price Index for November and the NFIB Small Business Optimism Index for November on Tuesday.
S&P 500 +24.3% YTD
Nasdaq Composite +19.6% YTD
Dow Jones Industrial Average +16.5% YTD
Russell 2000 +10.4% YTD
Crude futures settle lower
13-Dec-21 15:30 ET
Dow -221.28 at 35749.71, Nasdaq -147.44 at 15483.15, S&P -28.24 at 4683.78
[BRIEFING.COM] The S&P 500 is down 0.6% amid losses in seven of its 11 sectors.
One last look at the S&P 500 sectors shows energy (-2.3%), consumer discretionary (-2.1%), information technology (-1.0%), and financials (-1.0%) leading the retreat with losses between 1-2%. The health care (+1.0%), consumer staples (+1.4%), utilities (+1.5%), and real estate (+1.4%) sectors are each up at least 1.0%.
WTI crude futures settled lower by 0.6%, or $0.46, to $71.24/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35970.99 +216.30 (0.60%)
Nasdaq 15630.59 +113.23 (0.73%)
SP 500 4712.02 +44.57 (0.95%)
10-yr Note +26/32 1.458
NYSE Adv 1551 Dec 1733 Vol 827.5 mln
Nasdaq Adv 1849 Dec 2713 Vol 4.3 bln
Industry Watch
Strong: Information Technology, Consumer Staples
Weak: Financials
Moving the Market
-- S&P 500 closes at a record high following hot CPI data for November
-- Total CPI increased 0.8% m/m (Briefing.com consensus 0.6%), leaving it up 6.8% yr/yr
-- Treasury market held its ground
-- Oracle (ORCL), Broadcom (AVGO), and Costco (COST) rally on positive earnings news
-- Small-caps and micro-caps struggled to attract buying interest
S&P 500 notches record close following hot CPI data
10-Dec-21 16:20 ET
Dow +216.30 at 35970.99, Nasdaq +113.23 at 15630.59, S&P +44.57 at 4712.02
[BRIEFING.COM] The S&P 500 rose 1.0% on Friday, and closed at a record high, following a hot Consumer Price Index (CPI) report for November. The Nasdaq Composite (+0.7%) and Dow Jones Industrial Average (+0.6%) also posted decent gains, and like the S&P 500, ended the week with gains over 3.5%.
All 11 S&P 500 sectors closed higher, with the information technology sector (+2.1%) being the biggest and most influential gainer. The financials sector (+0.1%) underperformed on a relative basis with a 0.1% gain.
Not all stocks reacted positively to the CPI report, though. The small-cap Russell 2000 (-0.4%) and the iShares Micro-Cap ETF (IWC 138.77, -1.12, -0.8%) both closed lower. Declining issues outpaced advancing issues at both the NYSE and Nasdaq.
Specifying the data, total CPI increased 0.8% m/m in November (Briefing.com consensus 0.6%), leaving it up 6.8% yr/yr -- its highest level since 1982. Core CPI, which excludes food and energy, increased 0.5% m/m, as expected, and was up 4.9% yr/yr.
The report wasn't too surprising given all the commentary about increased inflation pressures and the in-line core CPI print. Some investors took the data at face value: inflation is a byproduct of economic growth and offers companies pricing power for greater earnings potential.
As an aside, Oracle (ORCL 102.63, +13.86, +15.6%), Broadcom (AVGO 631.68, +48.26, +8.3%), and Costco (COST 558.82, +34.49, +6.6%) each rallied noticeably on pleasing earnings results, with ORCL and AVGO also announcing plans to repurchase $10 billion worth of stock.
Separately, based on the counter-intuitive price action in Treasuries, there was a tolerance for the view that inflation pressures could be peaking, which was espoused by the White House yesterday. Treasury yields were mixed and little changed, which was seen as a source of comfort for the stock market.
The 10-yr yield settled unchanged at 1.49% after trading at 1.51% prior to the CPI data. The 2-yr yield decreased two basis points to 0.66%, even though the report not only supported the case for the Fed be more aggressive with its tapering plan but also to think about hiking rates three times next year.
The U.S. Dollar Index decreased 0.2% to 96.06. WTI crude futures rose 1.2%, or $0.83, to $71.70/bbl.
Reviewing Friday's economic data, which featured the Consumer Price Index for November:
The latest Consumer Price Index (CPI) showed total CPI increased 0.8% month-over-month in November (Briefing.com consensus 0.6%) while core CPI, which excludes food and energy, increased 0.5%, as expected. On a year-over-year basis, total CPI was up 6.8%, versus 6.2% in October, and was the highest it has been since June 1982. Core CPI was up 4.9% year-over-year, versus 4.6% in October.
There isn't just one key takeaway from this report. There are many:
The Fed totally missed the mark with its transitory inflation view.
The inflation data make it clear that the Fed is going to announce a more aggressive tapering path at next week's FOMC meeting.
These data should stir concerns about a third rate hike being in the mix for 2022.
Inflation pressures are broad based.
Nominal wage gains will be undercut by inflation that will limit real spending growth potential.
The elevated inflation print will stand as a political pressure point.
The preliminary December University of Michigan Index of Consumer Sentiment increased to 70.4 (Briefing.com consensus 68.0) from the final November reading of 67.4.
The key takeaway from the report is the finding that inflation, versus unemployment, was seen as the more serious risk to the economy across all income, age, education, region, and political subgroups.
The U.S. Treasury reported a $191.3 bln deficit for November to follow last month's $165.06 bln deficit. The deficit one year ago was $145.27 bln.
There is no economic data scheduled for Monday.
S&P 500 +25.5% YTD
Nasdaq Composite +21.3% YTD
Dow Jones Industrial Average +17.5% YTD
Russell 2000 +12.0% YTD
Crude futures settle higher
10-Dec-21 15:30 ET
Dow +147.88 at 35902.57, Nasdaq +56.89 at 15574.25, S&P +31.06 at 4698.51
[BRIEFING.COM] The S&P 500 is up 0.7% and is vying for a record close, which is about six points higher than the current level.
One last look at the sectors shows information technology (+1.6%) and consumer staples (+1.9%) leading the advance with gains over 1.5%. The communication services (-0.1%) and financials (-0.1%) sectors trade lower.
WTI crude futures settled higher by 1.2%, or $0.83, to $71.70/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35754.69 -0.06 (0.00%)
Nasdaq 15517.36 -269.62 (-1.71%)
SP 500 4667.45 -33.76 (-0.72%)
10-yr Note +4/32 1.488
NYSE Adv 810 Dec 2467 Vol 819.9 mln
Nasdaq Adv 1153 Dec 3464 Vol 4.4 bln
Industry Watch
Strong: Health Care, Consumer Staples
Weak: Consumer Discretionary, Information Technology, Real Estate
Moving the Market
-- Market closes lower in consolidation trade
-- Fatigue and a sense of caution in front of CPI report tomorrow
-- Relative strength in the Dow, weakness in growth stocks
Market closes lower in consolidation trade
09-Dec-21 16:20 ET
Dow -0.06 at 35754.69, Nasdaq -269.62 at 15517.36, S&P -33.76 at 4667.45
[BRIEFING.COM] The S&P 500 declined 0.7% on Thursday, as the market consolidated its gains from the prior three days. The Nasdaq Composite (-1.7%) and Russell 2000 (-2.3%) struggled with steeper losses, while the Dow Jones Industrial Average (unch) closed flat after being down 0.5% intraday.
Nine of the 11 S&P 500 sectors closed lower, including the consumer discretionary (-1.7%), information technology (-1.1%), and real estate (-1.4%) sectors with losses over 1.0%. The defensive-oriented health care (+0.3%) and consumer staples (+0.1%) sectors closed higher.
Fatigue seemed to reign in the market on the recognition that the S&P 500 gained 3.6% over the past three days and Apple (AAPL 174.56, -0.52, -0.3%) gained 11.2% over the same period. Apple lost 0.3% today, even though Morgan Stanley named the stock a Top Pick for 2022 with a Street-high price target of $200.
The biggest gainers between Monday and Wednesday were the biggest losers today, and those were typically the risker stocks in the Nasdaq and Russell 2000. The ARK Innovation ETF (ARKK 97.73, -5.49, -5.3%), which entered the session up 10% for the week, declined 5% today.
In addition, there was a sense of caution in front of the Consumer Price Index report for November, which will be released tomorrow morning. Longer-dated Treasuries edged higher, the CBOE Volatility Index rose 8.4% to 21.58, and the U.S. Dollar Index rose 0.4% to 96.23.
The 10-yr yield decreased two basis points to 1.49% despite weekly initial claims falling to their lowest level (184,000) since Sept. 6, 1969. The 2-yr yield was unchanged at 0.68%. WTI crude futures fell 2.2%, or $1.56, to $70.87/bbl.
In other developments, the Senate passed a procedural bill to allow the debt ceiling to be raised by a fixed amount, and the FDA expanded the eligibility for the Pfizer (PFE 52.08, +0.68, +1.3%)-BioNTech (BNTX 284.21, -7.73, -2.7%) COVID-19 booster shot to 16- and 17-year-olds.
CVS Health (CVS 97.31, +4.21, +4.5%) was an individual standout after providing upbeat guidance and authorizing a $10 billion share repurchase program.
Reviewing Thursday's economic data:
Initial claims for the week ending December 4 dropped by 43,000 to 184,000 (Briefing.com consensus 228,000). That is the lowest level since September 6, 1969. Continuing claims for the week ending November 27 increased by 38,000 to 1.992 million.
The key takeaway from the report is that seasonal factors had a lot to do with the sizable drop in initial claims. On an unadjusted basis, initial claims increased by 63,680 to 280,665.
Wholesale inventories increased 2.3% m/m in October (Briefing.com consensus 2.2%) following a 1.4% increase in September.
Looking ahead, investors will receive the Consumer Price Index for November, the preliminary University of Michigan Index of Consumer Sentiment for December, and the Treasury Budget for November on Friday.
S&P 500 +24.3% YTD
Nasdaq Composite +20.4% YTD
Dow Jones Industrial Average +16.8% YTD
Russell 2000 +12.4% YTD
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35754.75 +35.32 (0.10%)
Nasdaq 15786.98 +100.07 (0.64%)
SP 500 4701.21 +14.46 (0.31%)
10-yr Note -26/32 1.520
NYSE Adv 2020 Dec 1258 Vol 877.3 mln
Nasdaq Adv 3051 Dec 1563 Vol 4.6 bln
Industry Watch
Strong: Communication Services, Materials, Real Estate
Weak: Consumer Staples, Financials
Moving the Market
-- Major indices stave off selling interest after a two-day rally
-- Pfizer (PFE) says a third dose of its vaccine neutralizes the Omicron variant, according to preliminary data
-- Treasury yield curve steepens
Market stays committed to the rebound rally amid Pfizer news
08-Dec-21 16:15 ET
Dow +35.32 at 35754.75, Nasdaq +100.07 at 15786.98, S&P +14.46 at 4701.21
[BRIEFING.COM] The stock market closed higher for the third straight day on Wednesday, albeit at a more modest pace. The S&P 500 gained 0.3% and came up short of a closing record high, while the Nasdaq Composite (+0.6%) and Russell 2000 (+0.8%) outperformed in percentage terms. The Dow Jones Industrial Average increased just 0.1%.
Eight of the 11 S&P 500 sectors finished in positive territory, although no sector gained more than 1.0%. The communication services sector led the advance with a 0.8% gain, while the financials (-0.5%), consumer staples (-0.4%) and utilities (-0.1%) sectors closed lower.
Concerns about the Omicron variant were further allayed after Pfizer (PFE 51.40, -0.32, -0.6%) and BioNTech (BNTX 291.94, -10.75, -3.6%) said preliminary data suggested that three doses of their current vaccine neutralize the Omicron variant and that two doses protect against severe disease.
The market's rally in the prior two days was attributed to optimism on the Omicron variant, so the ability for the market to hold steady on good Omicron news today was an encouraging development for buyers. What's more, news that lawmakers are moving closer to raising the debt ceiling tempered another area of concern.
Travel stocks like airlines and cruise lines were among the biggest gainers in the S&P 500, but Apple (AAPL 175.08, +3.90, +2.3%), Tesla (TSLA 1068.96, +17.21, +1.6%), and Meta Platforms (FB 330.56, +7.75, +2.4%) were among the more influential gainers. AAPL set an all-time high.
Improved expectations for the economy were also manifested in higher prices for WTI crude ($72.43/bbl, +0.48, +0.7%) and copper ($4.395/lb, +0.05, +1.3%), as well as curve-steepening activity in the Treasury market.
The 10-yr yield rose three basis points to 1.51% after dipping below 1.43% prior to the Pfizer-BioNTech news. The 2-yr yield decreased one basis point to 0.68%, even though the vaccine news supported the case for the Fed to consider a faster taper plan. The U.S. Dollar Index fell 0.5% to 95.91.
The CBOE Volatility Index dropped below the 20.00 level (19.90, -1.99, -9.1%), as the continued resiliency in the market staved off hedging interest.
Reviewing Wednesday's economic data:
Job openings increased to 11.033 million in October from a revised 10.602 million (from 10.438 million) in September.
The weekly MBA Mortgage Applications Index increased 2.0% following a 7.2% decline in the prior week.
Weekly crude oil inventories decreased by 240,000 barrels after decreasing by 910,000 barrels during the previous week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report and Wholesale Inventories for October on Thursday.
S&P 500 +25.2% YTD
Nasdaq Composite +22.5% YTD
Dow Jones Industrial Average +16.8% YTD
Russell 2000 +15.0% YTD
Crude futures settle higher
08-Dec-21 15:30 ET
Dow +33.55 at 35752.98, Nasdaq +83.49 at 15770.40, S&P +12.16 at 4698.91
[BRIEFING.COM] The S&P 500 is trading at session highs with a 0.3% gain. It's trading about five points below its closing record high (4704.54).
One last look at the S&P 500 sectors shows communication services (+0.7%) and real estate (+0.6%) outperforming with modest gains, while the financials (-0.2%) and consumer staples (-0.4%) sectors are the only sectors trading lower.
WTI crude futures settled higher by 0.7%, or $0.48, to $72.43/bbl. On a related note, weekly crude oil inventories decreased by 240,000 barrels after decreasing by 910,000 barrels during the previous week.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35719.43 +492.40 (1.40%)
Nasdaq 15686.91 +461.76 (3.03%)
SP 500 4686.75 +95.08 (2.07%)
10-yr Note -10/32 1.480
NYSE Adv 2590 Dec 690 Vol 1.02 bln
Nasdaq Adv 3433 Dec 1121 Vol 5.00 bln
Industry Watch
Strong: Technology, Financials, Energy, Consumer Discretionary
Weak: Consumer Staples, Utilities
Moving the Market
Stocks extend Monday's rebound
Crude oil nearing last week's high
Rebound Rally Accelerates
07-Dec-21 16:10 ET
Dow +492.40 at 35719.43, Nasdaq +461.76 at 15686.91, S&P +95.08 at 4686.75
[BRIEFING.COM] The major averages built on their gains from Monday with the S&P 500 (+2.1%) jumping to within 60 points of its record high from two weeks ago. The Nasdaq (+3.0%) outperformed after lagging yesterday while the Dow (+1.4%) finished behind the benchmark index after showing relative strength on Monday.
The bulk of the Tuesday rally unfolded at the open, as stocks jumped out of the gate after an upbeat session in global equity markets. The S&P 500 reached its best level of the session just after 11:00 ET, drifting just below that high into the close. The benchmark index finished at its best level since November 24 while the Dow and Nasdaq reclaimed their respective 50-day moving averages.
All eleven sectors ended in the green with nine groups recording gains of 1.0% or more. Top-weighted technology (+3.5%) held the lead throughout the day while energy (+2.3%) and consumer discretionary (+2.4%) finished in the next two spots.
The technology sector rallied behind chipmakers, as the PHLX Semiconductor Index rose 5.0%. Top component NVIDIA (NVDA 324.27, +23.90, +8.0%) was the best performer in the group while Intel (INTC 52.57, +1.58, +3.1%) rallied back above its 50-day moving average (51.33) after confirming plans for a spin-off of its Mobileye unit, which is valued at about $50 bln.
All but six components of the tech sector finished in the green while Western Union (WU 17.35, -0.50, -2.8%) was the weakest performer, giving back yesterday's gain.
Like technology, the energy sector spent the session near the top of the leaderboard thanks to a rally in crude oil, which rose $2.36, or 3.4%, to $71.95/bbl, climbing past its 200-day moving average (69.98). Oil backpedaled from its midday high after a brief push past last Monday's high (72.93).
The consumer discretionary sector was the only other group to gain 2.0% or more with leadership from AutoZone (AZO 2023.57, +143.58, +7.6%) after the company beat Q1 expectations. The stock rallied to a fresh record, as did seven other components of the discretionary sector.
The Dow Jones Transportation Average (+0.2%) was one of few soft spots today as airline stocks pulled back from yesterday's rally, masking gains in more than half of the remaining DJTA components.
In Washington, House Speaker Pelosi said that her chamber will vote today evening on a plan to increase the debt limit. Meanwhile, Senate Minority Leader McConnell said that a "solution" to the debt ceiling issue has been reached. President Biden spoke with Russian President Putin, warning that the U.S. and allies would "respond with strong economic and other measures in the event of military escalation" in Ukraine, according to a statement from the White House.
Treasuries retreated, sending the 10-yr yield higher by five basis points to 1.48% with its 200-day moving average (1.493%) looming just above.
Reviewing today's economic data:
The October Trade Balance Report showed a narrowing in the deficit to $67.1 billion (Briefing.com consensus -$66.8 billion) from a downwardly revised $81.4 billion (from $80.9 billion) in September, with exports up $16.8 billion and imports up $2.5 billion from September levels.
The key takeaway from the report is the uptick in both exports and imports, which is a good sign of increased economic activity on a global basis. Exports to China increased $2.8 billion and exports to the European Union increased $1.6 billion.
The revised Q3 Productivity and Unit Labor Costs report showed productivity being revised down to -5.2% (Briefing.com consensus -4.9%) from the advance estimate of -5.0%. That is the largest decline in productivity since the second quarter of 1960. Unit labor costs were revised up to 9.6% (Briefing.com consensus 8.2%) from 8.3%.
The key takeaway from the report is the connection between weakening productivity and rising costs, which isn't a good combination for company profits.
Consumer credit increased by $16.9 bln in October after increasing a downwardly revised $27.8 bln (from $29.9 bln) in September.
Tomorrow, the weekly MBA Mortgage Index (prior -7.2%) will be released at 7:00 ET, followed by JOLTS -- Job Openings (prior 10.438 mln) at 10:00 ET.
S&P 500 +24.8% YTD
Nasdaq Composite +21.7% YTD
Dow Jones Industrial Average +16.7% YTD
Russell 2000 +14.1% YTD
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35719.43 +492.40 (1.40%)
Nasdaq 15686.91 +461.76 (3.03%)
SP 500 4686.75 +95.08 (2.07%)
10-yr Note -10/32 1.480
NYSE Adv 2590 Dec 690 Vol 1.02 bln
Nasdaq Adv 3433 Dec 1121 Vol 5.00 bln
Industry Watch
Strong: Technology, Financials, Energy, Consumer Discretionary
Weak: Consumer Staples, Utilities
Moving the Market
Stocks extend Monday's rebound
Crude oil nearing last week's high
Rebound Rally Accelerates
07-Dec-21 16:10 ET
Dow +492.40 at 35719.43, Nasdaq +461.76 at 15686.91, S&P +95.08 at 4686.75
[BRIEFING.COM] The major averages built on their gains from Monday with the S&P 500 (+2.1%) jumping to within 60 points of its record high from two weeks ago. The Nasdaq (+3.0%) outperformed after lagging yesterday while the Dow (+1.4%) finished behind the benchmark index after showing relative strength on Monday.
The bulk of the Tuesday rally unfolded at the open, as stocks jumped out of the gate after an upbeat session in global equity markets. The S&P 500 reached its best level of the session just after 11:00 ET, drifting just below that high into the close. The benchmark index finished at its best level since November 24 while the Dow and Nasdaq reclaimed their respective 50-day moving averages.
All eleven sectors ended in the green with nine groups recording gains of 1.0% or more. Top-weighted technology (+3.5%) held the lead throughout the day while energy (+2.3%) and consumer discretionary (+2.4%) finished in the next two spots.
The technology sector rallied behind chipmakers, as the PHLX Semiconductor Index rose 5.0%. Top component NVIDIA (NVDA 324.27, +23.90, +8.0%) was the best performer in the group while Intel (INTC 52.57, +1.58, +3.1%) rallied back above its 50-day moving average (51.33) after confirming plans for a spin-off of its Mobileye unit, which is valued at about $50 bln.
All but six components of the tech sector finished in the green while Western Union (WU 17.35, -0.50, -2.8%) was the weakest performer, giving back yesterday's gain.
Like technology, the energy sector spent the session near the top of the leaderboard thanks to a rally in crude oil, which rose $2.36, or 3.4%, to $71.95/bbl, climbing past its 200-day moving average (69.98). Oil backpedaled from its midday high after a brief push past last Monday's high (72.93).
The consumer discretionary sector was the only other group to gain 2.0% or more with leadership from AutoZone (AZO 2023.57, +143.58, +7.6%) after the company beat Q1 expectations. The stock rallied to a fresh record, as did seven other components of the discretionary sector.
The Dow Jones Transportation Average (+0.2%) was one of few soft spots today as airline stocks pulled back from yesterday's rally, masking gains in more than half of the remaining DJTA components.
In Washington, House Speaker Pelosi said that her chamber will vote today evening on a plan to increase the debt limit. Meanwhile, Senate Minority Leader McConnell said that a "solution" to the debt ceiling issue has been reached. President Biden spoke with Russian President Putin, warning that the U.S. and allies would "respond with strong economic and other measures in the event of military escalation" in Ukraine, according to a statement from the White House.
Treasuries retreated, sending the 10-yr yield higher by five basis points to 1.48% with its 200-day moving average (1.493%) looming just above.
Reviewing today's economic data:
The October Trade Balance Report showed a narrowing in the deficit to $67.1 billion (Briefing.com consensus -$66.8 billion) from a downwardly revised $81.4 billion (from $80.9 billion) in September, with exports up $16.8 billion and imports up $2.5 billion from September levels.
The key takeaway from the report is the uptick in both exports and imports, which is a good sign of increased economic activity on a global basis. Exports to China increased $2.8 billion and exports to the European Union increased $1.6 billion.
The revised Q3 Productivity and Unit Labor Costs report showed productivity being revised down to -5.2% (Briefing.com consensus -4.9%) from the advance estimate of -5.0%. That is the largest decline in productivity since the second quarter of 1960. Unit labor costs were revised up to 9.6% (Briefing.com consensus 8.2%) from 8.3%.
The key takeaway from the report is the connection between weakening productivity and rising costs, which isn't a good combination for company profits.
Consumer credit increased by $16.9 bln in October after increasing a downwardly revised $27.8 bln (from $29.9 bln) in September.
Tomorrow, the weekly MBA Mortgage Index (prior -7.2%) will be released at 7:00 ET, followed by JOLTS -- Job Openings (prior 10.438 mln) at 10:00 ET.
S&P 500 +24.8% YTD
Nasdaq Composite +21.7% YTD
Dow Jones Industrial Average +16.7% YTD
Russell 2000 +14.1% YTD
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35227.03 +646.95 (1.87%)
Nasdaq 15225.15 +139.68 (0.93%)
SP 500 4591.67 +53.24 (1.17%)
10-yr Note -25/32 1.434
NYSE Adv 2425 Dec 839 Vol 1.05 bln
Nasdaq Adv 2889 Dec 1666 Vol 5.05 bln
Industry Watch
Strong: Energy, Consumer Staples, Real Estate, Utilities, Financials, Industrials
Weak: Health Care, Technology
Moving the Market
Stocks bounce as Omicron-related concerns recede
Crude oil rebounding toward 200-day moving average (69.92)
Dow and S&P 500 Reclaim Friday Losses
06-Dec-21 16:20 ET
Dow +646.95 at 35227.03, Nasdaq +139.68 at 15225.15, S&P +53.24 at 4591.67
[BRIEFING.COM] The stock market began the week on a strong note with the S&P 500 (+1.2%) reclaiming its entire loss from Friday. The Dow (+1.9%) fared even better, rising to a one-week high, while the Nasdaq (+0.9%) managed a firmly higher close after revisiting Friday's low in early trade.
Equities benefited from an improvement in sentiment after the weekend went by without any ominous reports related to the Omicron variant of the coronavirus. This opened the door to a rebound in areas that faced the most pressure in recent days with the S&P 500 reclaiming its 50-day moving average.
All eleven sectors ended the day in positive territory with nine groups gaining at least 1.0%. The energy sector (+1.5%) finished near the top of the leaderboard thanks to a daylong rally in crude oil. WTI crude climbed $3.21, or 4.84%, to $69.59/bbl, finishing the pit session just below its 200-day moving average (69.93), which offered resistance over the past week.
The rebound in crude did not get in the way of a rally in airline stocks, as they extended their bounce off last week's lows on a receding probability of additional travel restrictions. United Airlines (UAL 43.99, +3.38, +8.3%), American Airlines (AAL 17.93, +1.31, +7.9%), and Delta Air Lines (DAL 38.14, +2.16, +6.0%) were the top performers in the industrials sector (+1.6%), which finished atop today's leaderboard. The outperformance in airline stocks had a bigger impact on the Dow Jones Transportation Average (+2.3%), lifting the group to a one-week high.
Other growth-sensitive sectors like financials (+1.4%) and materials (+1.5%) also finished ahead of the broader market while top-weighted technology (+1.0%) underperformed throughout the day, but still ended firmly in the green.
The tech sector recovered from a weak start that was owed to notable losses among chipmakers, but the PHLX Semiconductor Index ended lower by just 0.1% after being down more than 3.0% at the open. Roughly half of the group's components ended in the red while Intel (INTC 50.99, +1.74, +3.5%) was the top performer, rallying toward its 50-day moving average (51.38). The chip giant confirmed plans to hold a press conference at the Consumer Electronics Show on January 4, while competitor AMD (AMD 139.06, -4.95, -3.4%) is also planning a press conference for January 4, but its event will not be an official part of CES, inviting speculation that the company is not yet ready to unveil a response to Intel's recently-launched 12th generation of CPUs.
The health care sector (+0.5%) was the weakest performer, spending the bulk of the day at the bottom of the leaderboard. Most components finished in the green, but their gains were largely offset by a loss in Pfizer (PFE 51.48, -2.79, -5.1%) as the stock deepened its pullback from a record high.
Treasuries finished near their lows with the 10-yr yield rising nine basis points to 1.43%.
In Washington, President Biden is expected to speak with Russian President Putin amid reports of the intelligence community's concern that Russia will escalate its conflict with Ukraine in the coming months.
Tomorrow's economic data will include October Trade Balance (Briefing.com consensus -$66.80 bln; prior -$80.90 bln), revised Q3 Productivity (Briefing.com consensus -4.9%; prior -5.0%), and revised Q3 Unit Labor Costs (Briefing.com consensus 8.2%; prior 8.3%) at 8:30 ET, followed by October Consumer Credit (prior $29.90 bln) at 15:00 ET.
S&P 500 +22.3% YTD
Nasdaq Composite +18.1% YTD
Dow Jones Industrial Average +15.1% YTD
Russell 2000 +11.6% YTD
Crude Oil Nears 200-Day Average
06-Dec-21 15:35 ET
Dow +638.60 at 35218.68, Nasdaq +145.89 at 15231.36, S&P +53.89 at 4592.32
[BRIEFING.COM] The S&P 500 trades higher by 1.2% with 30 minutes remaining in the session. The benchmark index currently hovers just few points above its opening level from Friday after briefly overtaking Friday's high in midday trade.
All eleven sectors continue trading higher with ten groups up 1.0% or more. However, only the energy sector (+2.0%) is currently up more than 1.8%.
The energy sector rallied to a fresh high as crude oil padded its gain ahead of the pit close. The energy component gained $3.21, or 4.8%, rising to $69.59/bbl with its 200-day moving average (69.93) looming just above.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34580.08 -59.71 (-0.17%)
Nasdaq 15085.47 -295.85 (-1.92%)
SP 500 4538.43 -38.67 (-0.84%)
10-yr Note +23/32 1.343
NYSE Adv 877 Dec 2340 Vol 1.10 bln
Nasdaq Adv 1006 Dec 3461 Vol 5.81 bln
Industry Watch
Strong: Energy, Consumer Staples, Materials
Weak: Financials, Technology, Consumer Discretionary, Communication Services
Moving the Market
November jobs report misses headline estimates
Congress passes another short-term funding bill
Oil rising toward its 200-day moving average (69.90)
Down Week Ends on Lower Note
03-Dec-21 16:15 ET
Dow -59.71 at 34580.08, Nasdaq -295.85 at 15085.47, S&P -38.67 at 4538.43
[BRIEFING.COM] The major averages finished the week on an uninspiring note with the Nasdaq (-1.9%) pacing a daylong retreat while the S&P 500 (-0.8%) and Dow (-0.2%) recorded slimmer losses. The three indices lost a respective 2.6%, 1.2%, and 0.9% for the week.
Small caps fared even worse with the Russell 2000 (-2.1%) falling 3.9% for the week.
The sharply lower finish represented a turn from the market's higher open, which followed the release of the Employment Situation report for November. The report missed headline estimates but also contained some positive elements like upward revisions to October figures and a drop in the unemployment rate.
The headline miss in the jobs report opened the door to an argument against accelerating the Fed's taper, but the market will need to see more before reversing its expectations for tighter policy in 2022, as the implied likelihood of a rate hike in June ticked up to 73.0% from 69.9% yesterday and 62.3% one week ago.
Eight sectors ended the day in negative territory with three losing 1.0% or more. The consumer discretionary sector (-1.8%) finished at the bottom of the leaderboard, right behind technology (-1.7%) and financials (-1.5%).
Growth stocks were among today's big losers with the likes of Microsoft (MSFT 323.01, -6.48, -2.0%), NVIDIA (NVDA 306.93, -14.33, -4.5%), Amazon (AMZN 3389.79, -47.57, -1.4%), and Tesla (TSLA 1014.97, -69.63, -6.4%) falling between 1.4% and 6.4%. NVIDIA's underperformance followed news that the FTC sued to block the company from completing its $40 bln acquisition of Arm Holdings.
Besides NVIDIA, roughly 2/3 of the components of the PHLX Semiconductor Index (-0.2%) finished in the red, but the but the index outperformed thanks to a spike to a fresh record in Marvell (MRVL 83.59, +12.56, +17.7%). The stock rallied after the company beat Q3 expectations and issued above-consensus guidance for Q4.
In other earnings, DocuSign (DOCU 135.09, -98.73, -42.2%) dove to its lowest level since mid-2020 after its Q3 beat was overshadowed by weak revenue guidance for Q4.
Treasuries faced some selling during the first hour of trade, but they reversed higher as stocks surrendered their starting gains. The 10-yr yield fell 11 basis points to 1.34%, reaching its lowest level since late September.
In commodities, crude oil fell $0.26, or 0.4%, to $66.38/bbl, surrendering $1.79, or 2.6% for the week.
Reviewing today's economic data:
November nonfarm payrolls increased by 210,000 (Briefing.com consensus 525,000). The 3-month average for total nonfarm payrolls decreased to 378,000 from 469,000 in October. October nonfarm payrolls revised to 546,000 from 531,000. September nonfarm payrolls revised to 379,000 from 312,000
November private sector payrolls increased by 235,000 (Briefing.com consensus 500,000). October private sector payrolls revised to 628,000 from 604,000. September private sector payrolls revised to 424,000 from 365,000
November unemployment rate was 4.2% (Briefing.com consensus 4.5%), versus 4.6% in October. Persons unemployed for 27 weeks or more accounted for 32.1% of the unemployed versus 31.6% in October. The U6 unemployment rate, which accounts for unemployed and underemployed workers, was 7.8%, versus 8.3% in October
November average hourly earnings increased 0.3% (Briefing.com consensus 0.4%) versus a 0.4% increase in October. Over the last 12 months, average hourly earnings have risen 4.8%, versus 4.8% for the 12 months ending in October
The average workweek in November was 34.8 hours (Briefing.com consensus 34.7), versus 34.7 hours in October. Manufacturing workweek increased 0.1 hours to 40.4 hours. Factory overtime was unchanged at 3.2 hours
The labor force participation rate increased to 61.8% from 61.6%. o The employment-population ratio increased to 59.2% from 58.8% in October.
The ISM Non-Manufacturing Index for November increased to a record high 69.1% (Briefing.com consensus 65.0%) from 66.7% in October. The dividing line between expansion and contraction is 50.0%. The November reading marks the 18th straight month of growth for the services sector
The key takeaway from the report is the understanding that demand shows no signs of slowing and services sector activity, which comprises the largest swath of economic activity, continues to run at a record pace even with the constraints of labor shortages, logistics problems, and difficulty in obtaining materials
The IHS Markit Services PMI rose to 58.0 in the final reading for November from 57.0 in the preliminary reading but was down from October's final reading of 58.7
Factory orders for manufactured goods increased 1.0% m/m in October (Briefing.com consensus +0.4%) following an upwardly revised 0.5% increase (from 0.2%) in September. Shipments of manufactured goods jumped 2.0% after increasing 1.0% in September
The key takeaway from the report is that the pace of order growth remained positive for nondefense capital goods, excluding aircraft -- a proxy for business spending
The market will not receive any notable data on Monday.
S&P 500 +20.8% YTD
Nasdaq Composite +17.1% YTD
Dow Jones Industrial Average +13.0% YTD
Russell 2000 +9.3% YTD
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34639.79 +617.75 (1.82%)
Nasdaq 15381.34 +127.27 (0.83%)
SP 500 4577.10 +64.06 (1.42%)
10-yr Note -3/32 1.435
NYSE Adv 2434 Dec 836 Vol 1.1 bln
Nasdaq Adv 2800 Dec 1585 Vol 5.3 bln
Industry Watch
Strong: Energy, Financials, Industrials, Real Estate, Materials
Weak: Health Care
Moving the Market
-- Stocks try to rebound again with value stocks outperforming growth stocks
-- Apple (AAPL) tells suppliers it's seeing less demand for the iPhone 13, according to Bloomberg
-- S&P 500 reclaims 50-day moving average (4543)
-- Omicron concerns tempered
Stocks close higher in cyclically-led rebound
02-Dec-21 16:20 ET
Dow +617.75 at 34639.79, Nasdaq +127.27 at 15381.34, S&P +64.06 at 4577.10
[BRIEFING.COM] The S&P 500 rose 1.4% on Thursday, bouncing back from two days of sharp losses. The Dow Jones Industrial Average (+1.8%) and Russell 2000 (+2.7%) outperformed the benchmark index, while the Nasdaq Composite underperformed on a relative basis with a 0.8% gain.
Supportive factors included 1) a bargain-hunting mindset amid an increasing number of stocks trading near 52-week lows, 2) a view that the Omicron variant might not be as bad as feared after the second reported case in the U.S. produced mild symptoms in a vaccinated person like the first case, and 3) a recognition that the S&P 500 reclaimed its 50-day moving average (4543).
All 11 S&P 500 sectors closed higher, featuring leadership positions from the cyclical industrials (+2.9%), energy (+2.9%), financials (+2.8%), and materials (+2.0%) sectors. The information technology (+0.8%), consumer staples (+0.8%), and health care (+0.4%) sectors trailed with more modest gains.
The relative underperformance of the Nasdaq was due to softness in Apple (AAPL 163.76, -1.01, -0.6%), Microsoft (MSFT 329.49, -0.59, -0.2%), Amazon.com (AMZN 3437.36, -6.36, -0.2%), Tesla (TSLA 1084.60, -10.40, -1.0%), and Facebook (FB 310.39, -0.21, -0.1%).
Apple was pressured by a report from Bloomberg indicating that the company told suppliers that demand for the iPhone 13 has weakened. AAPL shares declined 0.6%, but they were down as much as 4.2% shortly after the open.
Boeing (BA 202.38, +14.19, +7.5%) stood out with a 7.5% gain on news that China may soon allow the 737 MAX to return to flight. Snowflake (SNOW 360.38, +49.28, +15.9%) and Kroger (KR 44.65, +4.44, +11.0%) rallied noticeably following their earnings reports.
Elsewhere, the Treasury yield curve experienced some flattening activity amid a rise in shorter-dated rates. The 2-yr yield increased five basis points to 0.61%, and the 10-yr yield increased one basis point to 1.45%. The U.S. Dollar Index increased 0.1% to 96.14. WTI crude futures settled higher by 1.6%, or $1.03, to $66.64/bbl.
Strikingly, WTI crude futures were down more than 4.0% immediately after it was reported that OPEC+ agreed to stick to its planned production schedule for January. There was some speculation that the ministers would adjust production because of the Omicron variant and the U.S.-led effort for nations to tap into their oil reserves.
Reviewing Thursday's economic data:
For the week ending November 27, initial jobless claims increased by 28,000 to 222,000 (Briefing.com consensus 255,000). Continuing claims for the week ending November 20 decreased by 107,000 to 1.956 million.
The key takeaway from the report is that initial jobless claims are firming up at lower levels seen before the start of the pandemic.
Looking ahead to Friday, investors will receive the Employment Situation Report for November, the ISM Non-Manufacturing Index for November, Factory Orders for October, and the final IHS Markit Services PMI for November.
S&P 500 +21.9% YTD
Nasdaq Composite +19.3% YTD
Dow Jones Industrial Average +13.2% YTD
Russell 2000 +11.7% YTD
FTC sues to block NVIDIA's acquisition of Arm Holdings
02-Dec-21 15:30 ET
Dow +664.06 at 34686.10, Nasdaq +128.51 at 15382.58, S&P +69.36 at 4582.40
[BRIEFING.COM] The S&P 500 continues to trade higher by 1.5% and is on track to close above its 50-day moving average (4543).
The FTC recently announced that it's suing to block NVIDIA's (NVDA 320.29, +5.93, +1.9%) $40 billion acquisition of Arm Holdings for anti-competitive reasons. NVIDA shares have pared gains but are still up 2% despite the news.
WTI crude futures settled higher by 1.6%, or $1.03, to $66.64/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34022.04 -461.68 (-1.34%)
Nasdaq 15254.07 -283.64 (-1.83%)
SP 500 4513.04 -53.96 (-1.18%)
10-yr Note +3/32 1.420
NYSE Adv 912 Dec 2365 Vol 1.1 bln
Nasdaq Adv 1014 Dec 3302 Vol 6.2 bln
Industry Watch
Strong: Utilities
Weak: Consumer Discretionary, Communication Services, Information Technology
Moving the Market
-- Major indices fade early rally effort
-- First case of the Omicron variant in the U.S. is detected
-- salesforce.com (CRM) holds back Dow on disappointing guidance
-- Relatively encouraging economic data
Stocks close sharply lower in disappointing session
01-Dec-21 16:20 ET
Dow -461.68 at 34022.04, Nasdaq -283.64 at 15254.07, S&P -53.96 at 4513.04
[BRIEFING.COM] The S&P 500 fell 1.2% on Wednesday after being up 1.9% intraday, as momentum faded and news of the first reported case of the Omicron variant in the U.S. weighed on sentiment. Stocks closed at session lows amid a wave of selling interest in the final minutes of the session.
The Dow Jones Industrial Average fell 1.3%, the Nasdaq Composite fell 1.8%, and Russell 2000 lost 2.3%.
The major indices were up as much as 1.5-2.5% intraday, purportedly as concerns about the Omicron variant and the Fed's policy course were set aside and investors put new money to work on the first day of the month. There were suspicions, though, if the market's rally had a firm foundation for sustained gains given the recent volatility.
All 11 S&P 500 sectors were trading higher, but only one escaped with a gain. The consumer discretionary (-1.9%) and communication services (-2.0%) sectors led the retreat with 2% declines, while the utilities sector (+0.2%) managed to close higher.
High-beta growth stocks were among the weakest performers, receiving little support from a decline in long-term interest rates. The 10-yr yield declined one basis point to 1.43% after hitting 1.50% overnight.
The ARK Innovation ETF (ARKK 98.60, -7.09, -6.7%), which contains many high-growth story stocks, fell 6.7% as investors shied away from riskier equities. Dow component salesforce.com (CRM 251.50, -33.46, -11.7%) struggled all session and closed lower by 11.7% after providing disappointing guidance.
Value stocks outperformed on a relative basis, but it probably wasn't because of the better-than-expected November ADP Employment Change report and ISM Manufacturing Index since cyclical stocks struggled. Instead, many of the defensive value stocks in the health care and consumer staples industries did okay today.
The 2-yr yield rose four basis points to 0.56% as the market continued to signal expectations for the Fed to tighten policy more quickly. The U.S. Dollar Index increased 0.1% to 96.08. WTI crude futures fell 0.8%, or $0.53, to $65.61/bbl after being up more than 4.0% early in the session.
Reviewing Wednesday's economic data:
The November ISM Manufacturing Index checked in at 61.1% (Briefing.com consensus 61.0%), up slightly from 60.8% in October. A number above 50.0% is indicative of expansion. November marked the 18th straight month of expansion for the manufacturing sector.
The key takeaway from the report is that manufacturing activity is still running at a good clip despite supply chain, transportation, and labor constraints; meanwhile, it was noted that manufacturers' sentiment remains strongly optimistic.
Total construction spending increased 0.2% month-over-month in October (Briefing.com consensus +0.4%) following a downwardly revised 0.1% decline (from 0.0%) in September. Total private construction declined 0.2% month-over-month while total public construction spending increased 1.8%.
The key takeaway from the report is the decline seen in new single family and multifamily construction. That is most likely the consequence of ongoing supply chain pressures, labor constraints, and higher costs for builders that are standing in the way of building more affordable homes.
The ADP Employment Change report estimated 534,000 jobs were added to private-sector payrolls in November (Briefing.com consensus 515,000). The increase in October was downwardly revised to 570,000 from 571,000.
The final IHS Market Manufacturing PMI for November checked in at 58.3, down from 59.1 in the preliminary reading.
The weekly MBA Mortgage Applications Index fell 7.2% following a 1.8% increase in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report on Thursday.
S&P 500 +20.2% YTD
Nasdaq Composite +18.4% YTD
Dow Jones Industrial Average +11.2% YTD
Russell 2000 +8.7% YTD
Crude futures also fade early gain
01-Dec-21 15:30 ET
Dow -205.00 at 34278.72, Nasdaq -177.94 at 15359.77, S&P -18.76 at 4548.24
[BRIEFING.COM] The S&P 500 is down 0.4% to trade at session lows. The Russell 2000 is underperforms with a 1.2% decline.
Looking at the sectors shows consumer discretionary (-1.2%) and communication services (-1.2%) leading the decline with losses over 1.0%. The health care (+0.5%), consumer staples (+0.5%), and utilities (+1.0%) sectors are the only sectors trading higher.
WTI crude futures settled lower by 0.8%, or $0.53, to $65.61/bbl after being up more than 4.0% early in the session.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34483.33 -652.61 (-1.86%)
Nasdaq 15537.71 -245.14 (-1.55%)
SP 500 4567.00 -88.27 (-1.90%)
10-yr Note +28/32 1.432
NYSE Adv 687 Dec 2646 Vol 2.0 bln
Nasdaq Adv 1404 Dec 2974 Vol 6.4 bln
Industry Watch
Strong: Information Technology
Weak: Communication Services, Utilities, Financials
Moving the Market
-- Market closes sharply lower on comments from Fed Chair Powell and Moderna (MRNA)
-- Fed Chair Powell says it's a good time to retire the word "transitory" and suggests its appropriate to taper more quickly
-- Moderna expects current vaccines to be materially less effective against the Omicron variant
Tough day for stocks amid comments from Powell and Moderna
30-Nov-21 16:20 ET
Dow -652.61 at 34483.33, Nasdaq -245.14 at 15537.71, S&P -88.27 at 4567.00
[BRIEFING.COM] The stock market fell sharply on Tuesday, as risk sentiment was first pressured by the Omicron variant and then by commentary from Fed Chair Powell about inflation and monetary policy. The S&P 500 (-1.9%), Dow Jones Industrial Average (-1.9%), and Russell 2000 (-1.9%) each declined 1.9% while the Nasdaq Composite lost 1.6%.
All 11 S&P 500 sectors closed lower with losses ranging from 1.0% (information technology) to 3.0% (communication services). The relative outperformance of the tech sector was due to a 3% gain in Apple (AAPL 165.30, +5.06, +3.2%) amid some defensive positioning, which was further evident in a nine-basis-point decline in the 10-yr yield (1.44%).
The session started modestly lower reportedly after Moderna's (MRNA 352.43, -16.08, -4.4%) CEO told the Financial Times that he expects current vaccines to be materially less effective against the Omicron variant. Notwithstanding similar comments he made to CNBC yesterday, and reports suggesting that vaccines are likely to protect against severe disease, the uncertainty upset the market.
The real weakness, however, came after Fed Chair Powell said it's time to retire the word "transitory" when describing inflation and that it's appropriate to discuss at the next policy meeting about wrapping up the taper more quickly. Mr. Powell testified on the Coronavirus and CARES Act before the Senate Banking Committee.
Investors were caught off guard because there was a thought that the Omicron variant would presumably encourage the Fed to be more patient with tapering. Instead, the Fed chair suggested he was more concerned about tailoring policy to keep inflation pressures in check.
Of course, a speedier taper plan means the Fed could hike rates sooner than previously expected. The CME FedWatch Tool increased the probabilities for a rate hike in May 2022 (44.4%) and June 2022 (69.2%) to levels seen last week.
The fed-funds-sensitive 2-yr yield went from 0.43% to 0.56% during Fed Chair Powell's Q&A session. It eventually settled unchanged at 0.52%. The U.S. Dollar Index fell 0.5% to 95.85. WTI crude futures dropped 5.3%, or $3.70, to $66.14/bbl. The CBOE Volatility Index (27.19, +4.23, +18.4%) jumped above 27.00.
Reviewing Tuesday's economic data:
The Conference Board's Consumer Confidence Index dropped to 109.5 in November (Briefing.com consensus 111.0) from a downwardly revised 111.6 (from 113.8) in October. That is the lowest reading since February 2021.
The key takeaway from the report is that concerns about rising prices and the Delta variant were the drivers of the decline in confidence. With the omicron variant now on the scene and not part of the equation for the November report, one has reason to think that consumer confidence will continue to skew to the cautious side of things.
The Chicago PMI dropped to 61.8 in November (Briefing.com consensus 67.0) from 68.4 in October.
The FHFA Housing Price Index increased 0.9% m/m in September following an unrevised 1.0% increase in August. The S&P Case-Shiller Home Price Index increased 19.1% yr/yr in September (Briefing.com consensus 19.3%) following a revised 19.6% (from 19.7%) increase in August.
Looking ahead to Wednesday, investors will receive the ISM Manufacturing Index for November, Construction Spending for October, the ADP Employment Change report for November, the Fed's Beige Book for December, the weekly MBA Mortgage Applications Index, and the final IHS Markit Manufacturing PMI for November.
S&P 500 +21.6% YTD
Nasdaq Composite +20.6% YTD
Dow Jones Industrial Average +12.7% YTD
Russell 2000 +11.4% YTD
WTI crude futures drop more than 5%
30-Nov-21 15:30 ET
Dow -627.28 at 34508.66, Nasdaq -251.62 at 15531.23, S&P -83.00 at 4572.27
[BRIEFING.COM] The S&P 500 is down 1.8%, in-line with the Dow (-1.8%), amid a dearth of buying interest.
One last look at the sectors shows red across the board with losses ranging from 1.1% (information technology) to 2.7% (communication services).
WTI crude futures settled sharply lower by 5.3%, or $3.70, to $66.14/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35135.94 +236.60 (0.68%)
Nasdaq 15782.85 +291.18 (1.88%)
SP 500 4655.27 +60.65 (1.32%)
10-yr Note -2/32 1.530
NYSE Adv 1787 Dec 1513 Vol 990.6 mln
Nasdaq Adv 1975 Dec 2636 Vol 4.73 bln
Industry Watch
Strong: Energy, Technology, Consumer Discretionary, Utilities, Real Estate
Weak: Consumer Staples, Materials, Industrials, Financials
Moving the Market
Global equities and oil bounce from Friday's slide
Retailers in focus as holiday shopping season begins
Nasdaq Paces Monday Rebound
29-Nov-21 16:15 ET
Dow +236.60 at 35135.94, Nasdaq +291.18 at 15782.85, S&P +60.65 at 4655.27
[BRIEFING.COM] The stock market began the week on a strong note with the Nasdaq (+1.9%) recovering the bulk of its loss from Friday. The S&P 500 (+1.3%) and Dow (+0.7%) recorded slimmer gains, finishing near their opening levels from Friday.
Stocks rallied out of the gate as fears about the omicron coronavirus variant receded since there are no indications that this variant is more dangerous or more transmissible. In addition, the return of participants who were away on Friday contributed to the rebound.
All eleven sectors finished the day with gains. Five sectors added more than 1.0% with technology (+2.6%), consumer discretionary (+1.6%), and utilities (+1.6%) finishing in the lead.
The technology sector built on its gain as the day went on with chipmakers leading the way. The PHLX Semiconductor Index climbed 4.1% with all components rising at least 1.0%. Lam Research (LRCX 680.54, +38.56, +6.0%) was the best performer, rallying to a fresh record high.
Elsewhere in the tech sector, Microsoft (MSFT 336.63, +6.95, +2.1%) recovered its loss from Friday while Twitter (TWTR 45.78, -1.29, -2.7%) rallied out of the gate, but slid back to last week's low as the day went on. The volatility took place after Twitter CEO Dorsey announced his resignation. He will be replaced by the company's current CTO.
The consumer discretionary sector benefited from a strong showing in Tesla (TSLA 1136.99, +55.07, +5.1%) and a rebound in travel-related names like Expedia (EXPE 166.50, +6.70, +4.2%), Marriott (MAR 150.77, +3.33, +2.3%), and Royal Caribbean (RCL 69.89, +1.91, +2.8%). Retail stocks did well, though the SPDR S&P Retail ETF (XRT 96.62, -0.56, -0.6%) ended in the red due to a weak showing from a few of its top components. CNBC reported that retail store traffic on Friday was up nearly 50.0% from last year's levels but down 28.3% from 2019.
Today's rebound rally also boosted the energy sector (+0.6%) and oil, but crude spent the day in a pullback from its morning high while the energy sector followed. Crude oil ended the pit session higher by $1.67, or 2.5%, at $69.84/bbl, sliding back below its 200-day moving average (69.76) after overtaking that mark in the early morning.
The health care sector (+0.4%) finished near the bottom of the leaderboard with Pfizer (PFE 52.40, -1.60, -3.0%) reversing from a record high. The company, alongside Moderna (MRNA 368.51, +38.88, +11.8%), indicated that it can modify its vaccine formulation in a short timeframe, if necessary.
Treasuries ended in the red, but above their opening levels with the 10-yr yield rising five basis points to 1.53%.
Today's economic data was limited to the Pending Home Sales report for October, which showed a 7.5% increase (Briefing.com consensus 0.7%) while the September decrease was revised down to 2.4% from -2.3%.
The September FHFA Housing Price Index (prior 1.0%) and September S&P Case-Shiller Home Price Index (Briefing.com consensus 19.3%; prior 19.7%) will be released tomorrow at 9:00 ET, followed by November Chicago PMI (Briefing.com consensus 67.0; prior 68.4) at 9:45 ET and November Consumer Confidence (Briefing.com consensus 111.0; prior 113.8) at 10:00 ET.
S&P 500 +23.9% YTD
Nasdaq Composite +22.5% YTD
Dow Jones Industrial Average +14.8% YTD
Russell 2000 +13.5% YTD
Crude Oil Trims Intraday Gain
29-Nov-21 15:25 ET
Dow +291.47 at 35190.81, Nasdaq +316.86 at 15808.53, S&P +70.98 at 4665.60
[BRIEFING.COM] The S&P 500 trades higher by 1.6% with 30 minutes remaining in today's session.
All eleven sectors trade firmly higher going into the home stretch with six groups up at least 1.0%. The energy sector (+1.4%) was the best performer at the start, but it has slipped from the top spot as the price of crude retreated from its overnight high.
Crude oil ended the pit session higher by $1.67, or 2.5%, at $69.84/bbl. The energy component rallied past its 200-day moving average (69.76) overnight but slid back below that mark as the day went on.
Chipmakers Ahead
29-Nov-21 14:55 ET
Dow +286.32 at 35185.66, Nasdaq +308.57 at 15800.24, S&P +69.40 at 4664.02
[BRIEFING.COM] The S&P 500 (+1.5%) trades several points below its session high but it also remains several points above its opening high. The Dow (+0.8%) remains behind, sitting about a hundred points below its starting high.
The top-weighted technology sector has extended its gain to 2.7% with the PHLX Semiconductor Index now up 3.6%. Lam Research (LRCX 675.87, +33.69, +5.3%) is the best performer in the group, rallying to a fresh record, while Xilinx (XLNX 232.13, +8.18, +3.6%) is also climbing to a fresh record high.
Elsewhere, Treasuries have ticked down from intraday highs with the 10-yr yield up five basis points at 1.53% after touching 1.51% in the late morning.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34899.34 -905.04 (-2.53%)
Nasdaq 15491.67 -353.57 (-2.23%)
SP 500 4594.62 -106.84 (-2.27%)
10-yr Note +13/32 1.494
NYSE Adv 453 Dec 2769 Vol 741.3 mln
Nasdaq Adv 953 Dec 3399 Vol 3.4 bln
Industry Watch
Strong: Health Care
Weak: Energy, Financials, Industrials, Real Estate, Consumer Discretionary
Moving the Market
-- Omicron variant catalyzes risk-off trade in shortened session
-- Stocks, Treasury yields, and oil prices drop noticeably
-- Strength in vaccine makers and stay-at-home stocks
Omicron variant catalyzes sell-off in shortened session
26-Nov-21 13:20 ET
Dow -905.04 at 34899.34, Nasdaq -353.57 at 15491.67, S&P -106.84 at 4594.62
[BRIEFING.COM] The major indices dropped more than 2.0% on Friday, as investors sold risk assets after the discovery of a highly-mutated variant of COVID-19 in South Africa. The S&P 500 fell 2.3%, the Nasdaq Composite fell 2.2%, and the Dow Jones Industrial Average fell 2.5%. The small-cap Russell 2000 underperformed with a 3.7% decline.
The visceral reaction was linked to uncertainty if the variant (Omicron) is resistant to current vaccines and concerns that it could slow down the global recovery effort. Investors, many of whom were caught off guard, de-risked first and waited for answers later. On a related note, the World Health Organization designated Omicron a "variant of concern."
All 11 S&P 500 sectors closed in negative territory, ten of which fell between 1.4% (consumer staples) and 4.0% (energy). The 10-yr yield was down 16 basis points to 1.49% ahead of the bond market close at 2:00 p.m. ET. WTI crude futures fell 12.3% (-$9.57) to $68.80/bbl. The CBOE Volatility Index popped 54% to 28.62.
The health care sector outperformed on a relative basis with a 0.5% decline due to strength in vaccine makers likes Pfizer (PFE 54.00, +3.11, +6.1%) and Moderna (MRNA 329.63, +56.24, +20.6%). Stay-at-home stocks like Zoom Video (ZM 220.21, +11.91, +5.7%) also posted decent gains.
Notably, rate-hike expectations were dialed back today. According to the CME FedWatch Tool, the probability for a rate hike in May 2022 decreased to 36.4% from 55.3% on Wednesday, and the probability for a rate hike in June 2022 decreased to 61.8% from 82.1% on Wednesday.
Appropriately, the fed-funds-sensitive 2-yr yield was down 12 basis points to 0.52% after rising 13 basis points over the prior three sessions. The U.S. Dollar Index fell 0.7% to 96.11.
The Omicron news overshadowed the typical news coverage of Black Friday, which Macy's (M 30.48, -1.66, -5.2%) said was off to a great start. It was also a bad day for Merck (MRK 79.16, -3.12, -3.8%) to announce that its COVID-19 oral antiviral reduced the risk of hospitalization or death by 30%, according to a late-stage study, versus 48% in interim data.
Investors did not receive any economic data on Friday. Looking ahead, investors will receive Pending Home Sales for October on Monday.
S&P 500 +22.3% YTD
Nasdaq Composite +20.2% YTD
Dow Jones Industrial Average +14.0% YTD
Russell 2000 +13.7% YTD
Crude futures down over 11%
26-Nov-21 12:30 ET
Dow -876.87 at 34927.51, Nasdaq -304.41 at 15540.83, S&P -34.85 at 4666.61
[BRIEFING.COM] The S&P 500 is down 2.1%, and the Russell 2000 is down 4.3%.
One last look at the sectors shows energy (-4.7%), financials (-3.5%), and industrials (-2.9%) still leading the retreat with losses between 3-5%. The health care sector (-0.2%) has slipped lower with a modest 0.2% decline.
WTI crude futures are trading lower by 11.5%, or $9.01, to $69.40/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35804.38 -9.42 (-0.03%)
Nasdaq 15845.24 +70.09 (0.44%)
SP 500 4701.46 +10.76 (0.23%)
10-yr Note +2/32 1.651
NYSE Adv 1796 Dec 1441 Vol 750.2 mln
Nasdaq Adv 2733 Dec 1770 Vol 4.1 bln
Industry Watch
Strong: Energy, Real Estate, Information Technology
Weak: Materials, Consumer Staples, Financials
Moving the Market
-- Stocks close mixed but near session highs
-- FOMC Minutes, lowest level of initial claims since 1969, hot PCE data feed into expectations for more aggressive Fed
-- Growth stocks key off an intraday turnaround in the 10-yr yield
Stocks close mixed with the Fed in mind
24-Nov-21 16:15 ET
Dow -9.42 at 35804.38, Nasdaq +70.09 at 15845.24, S&P +10.76 at 4701.46
[BRIEFING.COM] The S&P 500 gained 0.2% on Wednesday, overcoming an early 0.7% decline, as the market adjusted to the thought of the Fed tightening policy more aggressively. The Nasdaq Composite (+0.4%) and Russell 2000 (+0.2%) also completed their own comebacks, while the Dow Jones Industrial Average (-0.03%) closed fractionally lower.
Six of the 11 S&P 500 sectors closed lower while five closed higher. The real estate (+1.3%) and energy (+1.0%) sectors outperformed in positive territory. The materials (-0.7%) and consumer staples (-0.3%) sectors underperformed with modest declines.
Expectations for a more aggressive Fed were corroborated by the latest economic data and Fed commentary: the FOMC Minutes from the November meeting noted that "some participants preferred a somewhat faster pace of reductions that would result in an earlier conclusion to net purchases." Weekly initial claims (199,000) fell to their lowest level since Nov. 15, 1969. The Fed's preferred inflation gauge in the PCE Price Index was up 5.0% yr/yr in October.
The market had already been pricing in this thinking, but it's worth noting that the probability for a rate hike in May 2022 increased to 54.9%, versus 45.4% yesterday, according to the CME FedWatch Tool. The fed-funds-sensitive 2-yr yield rose three basis points to 0.64%, leaving it up 13 basis points since Friday.
Strikingly, the 10-yr yield declined two basis points to 1.65% after brushing up against 1.70% in the morning. The U.S. Dollar Index rose 0.3% to 96.82. WTI crude futures were unchanged at $78.37/bbl.
This retracement happened not only in spite of the unemployment and inflation data, but a host of other data that increased on a sequential basis like personal income and spending for October, new homes sales for October, the second estimate for Q3 GDP, and the final November reading for the University of Michigan Index of Consumer Sentiment.
Nevertheless, the turnaround in the 10-yr yield was cited as a supportive factor for the rebound in the growth stocks, and in turn, the major indices.
Separately, Nordstrom (JWN 22.66, -9.27, -29.0%) and Gap (GPS 17.84, -5.67, -24.1%) were punished for reporting disappointing earnings results. Deere (DE 367.86, +18.58, +5.3%), HP Inc. (HPQ 35.44, +3.25, +10.1%), and Dell (DELL 57.30, +2.63, +4.8%), on the other hand, pulled through for shareholders.
Reviewing Wednesday's economic data:
Initial jobless claims for the week ending November 20 plunged by 71,000 to 199,000 (Briefing.com consensus 265,000), which is the lowest level of initial claims since November 15, 1969. Continuing jobless claims for the week ending November 13 decreased by 60,000 to 2.049 million.
The key takeaway from the report is that, with initial claims hitting their lowest mark since 1969, it will play into the burgeoning narrative that the Fed is going to need to be more aggressive with its tapering plans.
Personal income increased 0.5% month-over-month in October (Briefing.com consensus +0.2%) while personal spending increased 1.3% (Briefing.com consensus +1.0%). The PCE Price Index jumped 0.6%, as expected, and the core PCE Price Index, which excludes food and energy, rose 0.4%, also as expected.
The key takeaway from the report is that prices increased at a pace faster than income, stealing the purchasing power of those income gains and leading to more spending out of savings. Real disposable personal income declined 0.3% month-over-month while the personal savings rate, as a percentage of disposable personal income, fell to 7.3% from 8.2%.
New home sales increased 0.4% month-over-month in October to a seasonally adjusted annual rate of 745,000 (Briefing.com consensus 800,000) from a downwardly revised 742,000 (from 800,000) in September. On a year-over-year basis, new home sales were down 23.1%.
The key takeaway from the report is that the growth in new home sales is concentrated in higher-priced homes, as inflation pressures, exacerbated by supply constraints and labor shortages, are curtailing the building of lower-priced homes and pinching affordability for lower-income buyers.
The final November University of Michigan Index of Consumer Sentiment increased to 67.4 (Briefing.com consensus 66.8) from the preliminary reading of 66.8. The final reading for October was 71.7.
The key takeaway from the report is that the Index of Consumer Expectations has been pressured to its lowest level in a decade due to rapidly accelerating inflation and little belief that steps are being taken to mitigate rising prices. Roughly 25% of respondents said that inflation eroded their living standards in November.
The second estimate for Q3 GDP showed an upward revision to 2.1% (Briefing.com consensus 2.2%) from 2.0%. The GDP Price Deflator was revised to 5.9% (Briefing.com consensus 5.7%) from 5.7%.
The key takeaway from the report is the understanding that the change in private inventories fueled the Q3 GDP increase. Real final sales of domestic product, which excludes the change in private inventories, were flat, slightly better than 0.1% decline reported with the first estimate.
The Advance report for International Trade in Goods for October showed a deficit of $82.9 billion, versus a revised $97.0 billion (from $96.3 billion) in September. The Advance report for Retail Inventories for October decreased 0.1%, while the Advance report for Wholesale Inventories for October increased 2.2%.
The Weekly MBA Mortgage Applications Index increased 1.8% following a 2.8% decline in the prior week.
As a reminder, the market will be closed tomorrow for Thanksgiving Day and will reopen on Friday with a 1:00 p.m. ET closure.
S&P 500 +25.2% YTD
Nasdaq Composite +22.9% YTD
Russell 2000 +18.1% YTD
Dow Jones Industrial Average +17.0% YTD
Crude futures settle unchanged
24-Nov-21 15:25 ET
Dow -8.97 at 35804.83, Nasdaq +65.24 at 15840.39, S&P +10.54 at 4701.24
[BRIEFING.COM] The S&P 500 is trading at session highs with a 0.2% gain after being down 0.7% shortly after the open.
One last look at the sectors shows real estate (+1.1%) and energy (+1.0%) still in the lead with 1% gains, while the materials (-0.7%) and consumer staples (-0.3%) sectors underperform with modest losses.
WTI crude futures settled unchanged at $78.37/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35813.80 +194.55 (0.55%)
Nasdaq 15775.15 -79.62 (-0.50%)
SP 500 4690.70 +7.76 (0.17%)
10-yr Note -3/32 1.666
NYSE Adv 1543 Dec 1797 Vol 896.0 mln
Nasdaq Adv 1919 Dec 2627 Vol 5.3 bln
Industry Watch
Strong: Energy, Financials, Real Estate, Consumer Staples
Weak: Information Technology, Communication Services, Consumer Discretionary
Moving the Market
-- Second day of rotation out of growth into value
-- U.S. plans to release 50 million barrels of oil from Strategic Petroleum Reserve in concert with other countries, including China and the UK
-- Energy stocks lead the way amid higher oil prices
-- Interest rates edge higher
Value stocks lift S&P 500
23-Nov-21 16:20 ET
Dow +194.55 at 35813.80, Nasdaq -79.62 at 15775.15, S&P +7.76 at 4690.70
[BRIEFING.COM] The S&P 500 increased 0.2% on Tuesday, overcoming an early 0.7% decline, as investors continued to rotate out of growth stocks into value stocks. The Dow Jones Industrial Average rose 0.5%, while the Nasdaq Composite (-0.5%) and Russell 2000 (-0.2%) closed lower but off session lows.
The underperformance of the small-cap Russell 2000 indicated the rotation was predominately in the large-caps. The S&P 500 energy (+3.0%), financials (+1.6%), and real estate (+1.1%) sectors rose between 1-3%, while the information technology (-0.2%), consumer discretionary (-0.6%), and communication services (-0.4%) sectors closed lower.
Growth stocks were pressured by another increase in long-term interest rates and by a disappointing earnings reaction in Zoom Video (ZM 206.64, -35.64, -14.7%), which fell nearly 15.0%. The Russell 1000 Growth Index declined 0.4% (-1.7% in two days), versus a 0.6% gain in the Russell 1000 Value Index (+1.1% in two days).
The 10-yr yield increased four basis points to 1.67% (+13 bps in two days), and the 2-yr yield also increased four basis points to 0.61% after flirting with 0.66% intraday. The U.S. Dollar Index fell 0.1% to 96.48.
Higher oil prices ($78.38, +1.61, +2.1%) provided the fuel for the energy stocks after the U.S. announced plans to release 50 million barrels of oil from the Strategic Petroleum Reserve over several months. China, India, Japan, South Korea, and the UK are also expected to tap into their oil reserves.
WTI crude futures initially fell on the news, but quickly rebounded on the recognition that Bloomberg reported yesterday that the U.S. was planning to announce this today and that OPEC+ warned it could reconsider output increases as a response. Oil prices were also down 10% since Nov. 10, further signaling the news was already priced in.
In other earnings news, Best Buy (BBY 121.01, -16.99, -12.3%), Dick's Sporting Goods (DKS 134.55, -5.73, -4.1%), Urban Outfitters (URBN 33.80, -3.47, -9.3%), and Abercrombie & Fitch (ANF 41.12, -5.92, -12.6%) also posted sizable losses despite beating EPS estimates.
Dollar Tree (DLTR 144.71, +12.15, +9.2%) and Burlington Stores (BURL 285.55, +22.55, +8.6%) were earnings outliers.
Reviewing Tuesday's economic data:
The preliminary IHS Markit Manufacturing PMI for November increased to 59.1 from 58.4 in October. The preliminary IHS Markit Services PMI for November decreased to 57.0 from 58.7 in October.
Looking ahead, investors will receive a huge batch of economic data on Wednesday, including weekly Initial Claims, Personal Income and Spending for October, New Home Sales for October, and the final University of Michigan Index of Consumer Sentiment for November.
S&P 500 +24.9% YTD
Nasdaq Composite +22.4% YTD
Russell 2000 +17.9% YTD
Dow Jones Industrial Average +17.0% YTD
WTI crude futures rise on oil-release announcement
23-Nov-21 15:30 ET
Dow +146.81 at 35766.06, Nasdaq -123.25 at 15731.52, S&P -0.30 at 4682.64
[BRIEFING.COM] The S&P 500 is trading back at its flat line a resilient session.
One last look at the sectors shows energy (+2.7%), financials (+1.4%), and real estate (+1.2%) outperforming with 1-3% gains, while the information technology (-0.5%), consumer discretionary (-0.9%), and communication services (-0.4%) sectors trade lower.
WTI crude futures settled higher by 2.1%, or $1.61, to $78.38/bbl after the U.S. confirmed it will release 50 million barrels of oil from the Strategic Petroleum Reserve in concert with other nations.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35619.25 +17.27 (0.05%)
Nasdaq 15854.77 -202.68 (-1.26%)
SP 500 4682.94 -15.02 (-0.32%)
10-yr Note -27/32 1.601
NYSE Adv 1485 Dec 1841 Vol 943.9 mln
Nasdaq Adv 1648 Dec 2976 Vol 5.4 bln
Industry Watch
Strong: Energy, Financials, Consumer Staples, Utilities
Weak: Communication Services, Information Technology, Consumer Discretionary
Moving the Market
-- President Biden to nominate Fed Chair Powell for a second term and Lael Brainard as Vice Chair
-- Market fades renomination rally into the close amid weakness in the large growth stocks
-- Strength in financial and energy stocks amid higher Treasury yields and oil prices
Market fades renomination rally
22-Nov-21 16:25 ET
Dow +17.27 at 35619.25, Nasdaq -202.68 at 15854.77, S&P -15.02 at 4682.94
[BRIEFING.COM] The S&P 500 advanced as much as 1.0% on Monday after President Biden announced he will nominate Jerome Powell for a second term as Fed Chair and nominate Lael Brainard for Vice Chair of the Board of Governors. The benchmark index hit a record high but ended the session with a 0.3% decline amid a wave of selling interest into the close.
Selling interest was concentrated in the large growths, which disproportionately affected the Nasdaq Composite (-1.3%) after it also tagged a record high with an early 1.0% gain. The Russell 2000 fell 0.5%, while the Dow Jones Industrial Average (+0.1%) eked out a gain.
Early on, the market was presumably relieved to hear of Fed Chair Powell's renomination because he was the consensus candidate, maintaining an order of continuity with an easier confirmation process, too. Moreover, Ms. Brainard not being named Vice Chair for Supervision was well-received in the banking sector, as she was mentioned as someone who would espouse stricter regulation.
Accordingly, the S&P 500 financials sector (+1.4%) was an influential leader, further supported by higher Treasury yields. The energy sector (+1.8%) was the top performer, though, rising 1.8% amid a modest rebound in oil prices ($79.77/bbl, +0.66, +0.9%).
Influential weakness came from the mega-caps within the information technology (-1.1%), communication services (-1.2%), and consumer discretionary (-0.5%) sectors, as investors took profits in a rotation-minded trade. The Vanguard Mega Cap Growth ETF (MGK 260.55, -3.28) fell 1.2% after rising 2.2% last week.
The 10-yr yield rose nine basis points to 1.63%, which was also blamed for the growth-stock weakness, although the rise wasn't a hindrance early in the day as the Nasdaq was rallying to record highs. Nevertheless, the sustained rise in long-term rates was still conducive for the rotation into value stocks.
Interestingly, the 2-yr yield jumped six basis points to 1.57%, signaling increased expectations for the Fed to speed up its tapering plan and possibly hike rates sooner than expected. A weak $58 billion 2-yr note auction might have also contributed to the selling interest. The U.S. Dollar Index rose 0.5% to 96.53.
Reviewing Monday's economic data:
Existing home sales increased 0.8% m/m in October to a seasonally adjusted annual rate of 6.34 million (Briefing.com consensus 6.20 million). Total sales in October were down 5.8% from a year ago.
The key takeaway from the report is that prices remain high as inventory remains tight, crimping sales growth in the existing home market as affordability pressures build for prospective buyers.
Looking ahead, investors will receive the preliminary IHS Markit Manufacturing and Services PMIs for November on Tuesday.
S&P 500 +24.7% YTD
Nasdaq Composite +23.0% YTD
Russell 2000 +23.0% YTD
Dow Jones Industrial Average +16.4% YTD
Crude futures rebound modestly
22-Nov-21 15:25 ET
Dow +272.86 at 35874.84, Nasdaq -36.63 at 16020.82, S&P +24.94 at 4722.90
[BRIEFING.COM] The S&P 500 is up 0.6% and is on pace to close at a record high.
One last look at the sectors shows energy (+3.1%) and financials (+2.2%) leading the advance with 2-3% gains, while the communication services sector (-0.5%) remains the lone holdout with a 0.5% decline.
WTI crude futures rose 0.9%, or $0.66, to $76.77/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35601.98 -268.97 (-0.75%)
Nasdaq 16057.45 +63.73 (0.40%)
SP 500 4697.96 -6.58 (-0.14%)
10-yr Note +5/32 1.539
NYSE Adv 1142 Dec 2148 Vol 947.2 mln
Nasdaq Adv 1741 Dec 2871 Vol 4.8 bln
Industry Watch
Strong: Information Technology, Utilities, Consumer Discretionary
Weak: Energy, Financials, Health Care, Real Estate
Moving the Market
-- Nasdaq sets intraday and closing record highs amid mega-cap strength
-- Austria announces COVID lockdown
-- House passes $1.75 trillion Build Back Better Act
-- 10-yr yield drops along with oil prices
Nasdaq closes at record high amid COVID concerns
19-Nov-21 16:20 ET
Dow -268.97 at 35601.98, Nasdaq +63.73 at 16057.45, S&P -6.58 at 4697.96
[BRIEFING.COM] The S&P 500 lost 0.1% on Friday, while the Nasdaq Composite (+0.4%) set intraday and closing record highs as investors continued to bid up the mega-caps amid COVID-19 concerns. The Dow Jones Industrial Average (-0.8%) and Russell 2000 (-0.9%) declined closer to 1.0%.
Faced with rising COVID-19 cases and hospitalizations, Austria announced a nationwide lockdown, starting Monday and lasting for a minimum of ten days. Reports suggested Germany could follow suit with similar measures, exacerbating concerns about slower growth and giving some investors an excuse to avoid cyclical stocks.
Accordingly, investors assumed a defensive mindset that permeated the market: Apple (AAPL 160.55, +2.68, +1.7%) and other mega-caps set record highs, the 10-yr yield dropped five basis points to 1.54%, the U.S. Dollar Index (96.03, +0.49, +0.5%) rose 0.5%, and the S&P 500 information technology sector (+0.8%) finished atop the leaderboard.
Likewise, oil prices ($76.11, -2.81, -3.6%) extended recent losses on the prospects for softer demand and increased supply if countries tap into their oil reserves as speculated. That took a toll on the energy sector (-3.9%), which led all sectors in losses with a 4% decline.
Outside the energy space, the financials sector (-1.1%) was really the only other weak spot with the curve-flattening activity in Treasuries -- the 2-yr yield increased one basis point to 0.51%, narrowing the 2s-10s spread by six basis points. No other sector fell more than 0.7%.
Supportive considerations included the House passing the $1.75 trillion Build Back Better Act and a CDC advisory committee recommending in a unanimous vote for all adults to get COVID-19 booster shots from Pfizer (PFE 50.80, -0.61, -1.2%) or Moderna (MRNA 263.78, +12.37, +4.9%) six months after the second dose.
On a related note, the CBO estimated that the Build Back Better Act would add approximately $160 billion to the budget deficit over ten years when accounting for the revenue from increased tax enforcement. The bill heads over to the Senate, where it will likely be amended, according to media reports.
Shares of Intuit (INTU 692.34, +63.40, +10.1%) rose 10% after providing positive earnings results and upbeat guidance. Applied Materials (AMAT 150.03, -8.71, -5.5%), Workday (WDAY 286.60, -12.49, -4.2%), and Ross Stores (ROST 112.78, -6.74, -5.6%), however, fell between 4-6% following their earnings reports.
Investors did not receive any economic data on Friday. Looking ahead to Monday, investors can expect the Existing Home Sales report for October.
S&P 500 +25.1% YTD
Nasdaq Composite +24.6% YTD
Russell 2000 +18.7% YTD
Dow Jones Industrial Average +16.3% YTD
Crude futures extend losses
19-Nov-21 15:30 ET
Dow -271.19 at 35599.76, Nasdaq +69.57 at 16063.29, S&P -5.16 at 4699.38
[BRIEFING.COM] The S&P 500 is down 0.1%, and the Russell 2000 is down 0.7%.
One last look at the sectors shows energy getting clobbered with a 3.9% decline while the financials sector trades lower by 1.1%. The information technology (+0.8%), utilities (+0.6%), and consumer discretionary (+0.5%) sectors are the only sectors trading higher.
WTI crude futures settled sharply lower by 3.6%, or $2.81, to $76.11/bbl amid growth/supply concerns.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35870.95 -60.10 (-0.17%)
Nasdaq 15993.72 +72.14 (0.45%)
SP 500 4704.54 +15.87 (0.34%)
10-yr Note -23/32 1.603
NYSE Adv 1147 Dec 2133 Vol 868.2 mln
Nasdaq Adv 1456 Dec 3091 Vol 5.3 bln
Industry Watch
Strong: Consumer Discretionary, Information Technology
Weak: Energy, Utilities, Financials, Materials, Consumer Staples
Moving the Market
-- S&P 500 and Nasdaq close at record highs amid mega-cap strength
-- NVIDIA (NVDA) jumps 8% on pleasing earnings news/guidance, while Cisco (CSCO) falls 5.5% on disappointing revenue guidance
-- Strong showing from the retailers following earnings reports
-- Lingering growth concerns
S&P 500 and Nasdaq close at record highs
18-Nov-21 16:15 ET
Dow -60.10 at 35870.95, Nasdaq +72.14 at 15993.72, S&P +15.87 at 4704.54
[BRIEFING.COM] The S&P 500 (+0.3%) and Nasdaq Composite (+0.5%) closed at record highs on Thursday, largely due to strength in the mega-cap stocks. The Dow Jones Industrial Average (-0.2%) and Russell 2000 (-0.6%), however, closed lower.
The set-up today was looking decent: NVIDIA (NVDA 316.75, +24.14, +8.3%) reported positive earnings results with upbeat Q4 revenue guidance, a bunch of retailers including Macy's (M 37.37, +6.53, +21.2%) and Kohl's (KSS 62.49, +6.01, +10.6%) also provided pleasing earnings news, and weekly jobless claims showed continued improvement.
The broader market, however, didn't really key off the good news. Leadership narrowed to NVIDIA and other mega-caps like Apple (AAPL 157.87, +4.38, +2.9%), Amazon.com (AMZN 3696.06, +147.06, +4.1%), and Alphabet (GOOG 3014.18, +32.94, +1.1%), while the rest of the market struggled with modest losses.
Declining issues outpaced advancing issues by roughly 2:1 margins at the NYSE and Nasdaq. The Invesco S&P 500 Equal Weight ETF (RSP 160.69, -0.59, -0.4%) fell 0.4%. Seven of the 11 S&P 500 sectors closed lower with losses ranging between 0.2% (communication services) and 0.5% (energy).
The information technology (+1.0%) and consumer discretionary (+1.5%) sectors rightfully finished atop the leaderboard with solid gains. The technology sector would have risen more if it weren't for weakness in Cisco (CSCO 53.63, -3.13, -5.5%), which issued disappointing revenue guidance due to ongoing supply issues.
Growth concerns lingered amid the Cisco warning, reported upticks in COVID-19 cases, and rising inflation pressures that could eat into profit margins. Risk sentiment was further restrained by extended weakness in speculative pockets of the market and by a wait-and-see mindset for a Fed Chair nomination and a complete CBO scoring of the Build Back Better Act.
Longer-dated Treasuries settled on a higher note, signaling a defensive bias. The 10-yr yield decreased two basis points to 1.59% while the 2-yr yield was unchanged at 0.50%. The U.S. Dollar Index fell 0.3% to 95.53. WTI crude futures ($78.92, +0.61, +0.8%) rebounded modestly from yesterday's 3% decline.
Reviewing Thursday's economic data:
Initial jobless claims for the week ending November 13 decreased by 1,000 to 268,000 (Briefing.com consensus 260,000), which was the lowest level since March 14, 2020. Continuing jobless claims for the week ending November 6 decreased by 129,000 to 2.080 million, also the lowest level since March 14, 2020.
The key takeaway from the report is that the low level of initial claims should help set expectations for another nice pickup in hiring activity since it covers the week in which the survey for the November Employment Situation Report was conducted.
The Philadelphia Fed Index for November increased to 39.0 (Briefing.com consensus 22.0) from 23.8 in October.
The Conference Board's Leading Economic Index for October increased 0.9% (Briefing.com consensus 0.8%) following a revised 0.1% increase (+0.2%) in September.
There is no economic data scheduled for Friday.
S&P 500 +25.3% YTD
Nasdaq Composite +24.1% YTD
Russell 2000 +19.7% YTD
Dow Jones Industrial Average +17.2% YTD
Crude futures rebound modestly
18-Nov-21 15:30 ET
Dow -34.26 at 35896.79, Nasdaq +62.62 at 15984.20, S&P +16.99 at 4705.66
[BRIEFING.COM] The S&P 500 is up 0.4% and will have another shot at closing at a record high. The benchmark index came up short yesterday amid increased selling interest into the close.
One last look at the sectors shows information technology (+1.0%) and consumer discretionary (+1.3%) still leading the advance with gains of at least 1.0%. Conversely, the utilities (-0.6%), consumer staples (-0.4%), and materials (-0.4%) sectors underperform with modest losses.
WTI crude futures settled higher by 0.8%, or $0.61, to $78.92/bbl after falling 3% yesterday.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35931.05 -211.17 (-0.58%)
Nasdaq 15921.58 -52.28 (-0.33%)
SP 500 4688.67 -12.23 (-0.26%)
10-yr Note -1/32 1.627
NYSE Adv 1089 Dec 2190 Vol 806.7 mln
Nasdaq Adv 1458 Dec 3145 Vol 5.0 bln
Industry Watch
Strong: Consumer Discretionary, Real Estate, Health Care, Utilities
Weak: Financials, Energy, Industrials, Materials
Moving the Market
-- Major indices close lower in defensive session
-- Target (TGT) plans to absorb some inflation pressures to keep prices down
-- Amazon.com (AMZN) plans to stop accepting Visa (V) credit cards in the UK because of high transaction costs
-- Price action reflected consolidation activity
Down day for the major indices
17-Nov-21 16:20 ET
Dow -211.17 at 35931.05, Nasdaq -52.28 at 15921.58, S&P -12.23 at 4688.67
[BRIEFING.COM] The S&P 500 declined 0.3% on Wednesday in a defensive session. The Nasdaq Composite (-0.3%) and Dow Jones Industrial Average (-0.6%) also fell modestly, while the Russell 2000 (-1.2%) underperformed amid weakness in its cyclical components.
Declining issues outpaced advancing issues by better than a 2:1 margin at the NYSE and Nasdaq, and seven of the 11 S&P 500 sectors closed in negative territory. The energy (-1.7%), financials (-1.1%), materials (-0.6%), and industrials (-0.6%) sectors underperformed.
The index losses, however, were minimized by gains in Apple (AAPL 153.49, +2.49, +1.7%), Microsoft (MSFT 339.12, +0.23, +0.1%), Amazon.com (AMZN 3549.00, +8.30, +0.2%), and Tesla (TSLA 1089.01, +34.28, +3.3%). The consumer discretionary sector (+0.6%), which is home to AMZN and TSLA, rose 0.6%.
The defensive-oriented real estate (+0.7%), health care (+0.2%), and utilities (+0.1%) sectors also closed in positive territory. Pfizer (PFE 50.87, +1.27, +2.6%) aided the health care sector amid news that its COVID-19 booster shot could be available for all adults as soon as this weekend.
Target (TGT 253.80, -12.59, -4.7%), meanwhile, stoked profit-margin concerns after saying it will absorb some inflation pressures to keep prices down -- echoing Walmart (WMT 141.94, -1.23, -0.9%) yesterday. Fellow retailers Lowe's (LOW 245.75, +0.97, +0.4%) and TJX Cos. (TJX 73.55, +4.05, +5.8%) closed higher following their earnings reports.
Lower interest rates and weaker oil prices ($78.31, -2.46, -3.1%) specifically weighed on the financial and energy stocks. The 2-yr yield decreased two basis points to 0.50%, and the 10-yr yield decreased three basis points to 1.60%. The U.S. Dollar Index declined 0.1% to 95.79.
Separately, shares of Visa (V 205.06, -10.12, -4.7%) fell 5% on news that Amazon plans to stop accepting UK-issued Visa credit cards due to high transaction fees, although The Wall Street Journal reported that Visa is trying to mend the relationship. MasterCard (MA 359.17, -10.39, -2.8%) fell 3% in sympathy.
Also noteworthy, shares of Rivian (RIVN 146.07, -25.94, -15.1%) and Lucid Motors (LCID 52.55, -2.97, -5.4%) finally calmed down after a stretch of ridiculous gains. Their retracements represented a pause in the market's speculative energy.
Reviewing Wednesday's economic data:
October housing starts declined 0.7% month-over-month to a seasonally adjusted annual rate of 1.52 million units (Briefing.com consensus 1.59 million) from a downwardly revised 1.53 million (from 1.55 million) in September. Building permits, though, provided a positive surprise, rising 4.0% to 1.65 million (Briefing.com consensus 1.64 million) from a downwardly revised 1.586 million (from 1.589 million) in September.
The key takeaway from the report is that there was strength in permits -- a leading indicator -- for single units and multi-family units in all regions. Single-unit permits were up 2.7% month-over-month, led by gains in all regions except the West (-0.4%).
The weekly MBA Mortgage Applications Index decreased 2.8% following a 5.5% increase in the prior week.
Looking ahead, investors will receive weekly Initial and Continuing Claims, the Philadelphia Fed Index for November, and the Conference Board's Leading Economic Index for October on Thursday.
S&P 500 +24.8% YTD
Nasdaq Composite +23.5% YTD
Russell 2000 +20.4% YTD
Dow Jones Industrial Average +17.4% YTD
Crude futures drop 3%
17-Nov-21 15:30 ET
Dow -155.62 at 35986.60, Nasdaq -39.78 at 15934.08, S&P -7.71 at 4693.19
[BRIEFING.COM] The S&P 500 is down 0.2% and has done so for nearly the entire session.
One last look at the sectors shows energy (-1.8%), financials (-1.0%), and industrials (-0.5%) underperforming the benchmark index, while the consumer discretionary (+0.7%), health care (+0.4%), and real estate (+0.5%) sectors outperform in the green.
WTI crude futures settled lower by 3.1%, or $2.46, to $78.31/bbl. In related news, President Biden asked the FTC to "further examine what is happening with oil and gas markets," and the EIA reported an unexpected draw in weekly crude inventories.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 36142.22 +54.77 (0.15%)
Nasdaq 15973.86 +120.01 (0.76%)
SP 500 4700.90 +18.10 (0.39%)
10-yr Note -1/32 1.627
NYSE Adv 1477 Dec 1750 Vol 787.2 mln
Nasdaq Adv 2099 Dec 2485 Vol 5.4 bln
Industry Watch
Strong: Consumer Discretionary, Information Technology
Weak: Real Estate, Consumer Staples, Utilities, Communication Services
Moving the Market
-- Better-than-expected economic data, including retail sales for October
-- Walmart (WMT) and Home Depot (HD) reported better-than-expected earnings results, but WMT shares closed lower
-- Credit Suisse assumed coverage on Microsoft (MSFT) and other software stocks with Outperform ratings
S&P 500 closes shy of a record high
16-Nov-21 16:20 ET
Dow +54.77 at 36142.22, Nasdaq +120.01 at 15973.86, S&P +18.10 at 4700.90
[BRIEFING.COM] The S&P 500 gained 0.4% on Tuesday, and just missed closing at a record high, amid a host of positive-sounding developments. The Nasdaq Composite outperformed with a 0.8% gain, while the Dow Jones Industrial Average (+0.2%) and Russell 2000 (+0.2%) both increased just 0.2%.
The heavily-weighted information technology (+1.1%) and consumer discretionary (+1.4%) sectors provided steady leadership with gains over 1.0%, but the broader market slipped into the close on no specific news.
Seven of the 11 S&P 500 sectors closed lower, including real estate (-0.7%), consumer staples (-0.6%), and utilities (-0.6%) as laggards. Declining issues outnumbered advancing issues at the NYSE and Nasdaq. Evidently, the index gains belied a negative-leaning session.
At its high, the S&P 500 was up 0.7% in part due to today's economic data: retail sales for October, industrial production and capacity utilization for October, and the NAHB Housing Market Index for November were each better than expected. Total retail sales were up 1.7% m/m in October (Briefing.com consensus +1.2%).
In addition, Walmart (WMT 143.17, -3.74, -2.6%) and Home Depot (HD 392.33, +21.25, +5.7%) reported better-than-expected earnings results, Microsoft (MSFT 339.51, +3.44, +1.0%) and other software stocks were assumed with Outperformed ratings at Credit Suisse, and Qualcomm (QCOM 181.81, +13.30, +7.9%) provided pleasing updates on its Investor Day.
Interestingly, shares of Walmart fell 2.6% despite the good news, perhaps due to some disappointment that the company plans to eat some of the higher costs in order to keep prices low.
Separately, President Biden said he will nominate a Fed Chair in "about four days." On a related note, San Francisco Fed President Daly (2021 voting member) reiterated expectations for a moderation in price pressures as the pandemic recedes.
The Treasury market held steady, even as import and export prices stayed hot in October. The 2-yr yield was unchanged at 0.52%, and the 10-yr yield increased one basis point to 1.63%. The U.S. Dollar Index advanced 0.6% to 95.96. WTI crude futures decreased 0.1%, or $0.08, to $80.77/bbl.
Reviewing Tuesday's economic data:
Total retail sales increased 1.7% month-over-month in October (Briefing.com consensus +1.2%) on top of an upwardly revised 0.8% increase (from 0.7%) in September. Excluding autos, retail sales also rose 1.7% (Briefing.com consensus +0.9%) following a downwardly revised 0.7% increase (from 0.8%) in September.
The key takeaway from the report is that spending picked up across most retail categories, reflecting the dissipating impact of the Delta variant. The lone exceptions were health and personal care stores (-0.6%) and clothing and clothing accessories stores (-0.7%).
Total industrial production increased 1.6% in October (Briefing.com consensus +0.8%) following an unrevised 1.3% decline in September. The capacity utilization rate rose to 76.4% (Briefing.com consensus 75.9%) from an unrevised 75.2% in September. That was the highest capacity utilization rate since January 2019.
The key takeaway from the report is that it points to a lot of latent growth potential when the semiconductor supply shortage, and other supply chain issues, can get worked out.
The NAHB Housing Market Index increased to 83.0 in November (Briefing.com consensus 80.0) from 80.0 in October.
Business inventories increased 0.7% m/m in September (Briefing.com consensus 0.6%) following an upwardly revised 0.8% increase (from +0.6%) in August.
Import prices jumped 1.2% month-over-month and export prices increased 1.5%. On a year-over-year basis, import prices were up 10.7% (+5.5% excluding fuel) and export prices were up 18.0% (+17.2% excluding agricultural exports).
Looking ahead, investors will receive Housing Starts and Building Permits for October and the weekly MBA Mortgage Applications Index on Wednesday.
S&P 500 +25.2% YTD
Nasdaq Composite +23.9% YTD
Russell 2000 +21.8% YTD
Dow Jones Industrial Average +18.1% YTD
Crude futures settle fractionally lower
16-Nov-21 15:30 ET
Dow +117.00 at 36204.45, Nasdaq +120.96 at 15974.81, S&P +24.20 at 4707.00
[BRIEFING.COM] The S&P 500 continues to trade higher by 0.5% and is on pace to close at a record high.
One last look at the sectors shows information technology (+1.1%) and consumer discretionary (+1.3%) setting the pace with gains over 1.0%. Conversely, the real estate (-0.6%), consumer staples (+0.4%), communication services (-0.3%), and utilities (-0.3%) sectors underperform in the red.
WTI crude futures settled lower by 0.1%, or $0.08, to $80.77/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 36087.45 -12.86 (-0.04%)
Nasdaq 15853.85 -7.11 (-0.04%)
SP 500 4682.80 -0.05 (0.00%)
10-yr Note -27/32 1.620
NYSE Adv 1510 Dec 1769 Vol 764.2 mln
Nasdaq Adv 2079 Dec 2500 Vol 4.9 bln
Industry Watch
Strong: Energy, Utilities, Consumer Staples, Real Estate
Weak: Materials, Information Technology, Consumer Discretionary
Moving the Market
-- Large-cap indices close flat in lackluster session
-- Consolidation activity
-- Treasury yield curve steepened
Flat finish for the large-cap indices
15-Nov-21 16:15 ET
Dow -12.86 at 36087.45, Nasdaq -7.11 at 15853.85, S&P -0.05 at 4682.80
[BRIEFING.COM] The S&P 500 (unch) finished flat on Monday as the market continued to consolidate near record highs. The Nasdaq Composite (unch) and Dow Jones Industrial Average (unch) also closed little changed, while the Russell 2000 fell 0.5%.
Seven of the 11 S&P 500 sectors closed higher, led by the lightly-weighted utilities (+1.3%) and energy (+0.8%) sectors. Conversely, the health care (-0.6%), materials (-0.5%), and information technology (-0.1%) sectors underperformed in negative territory.
There wasn't any specific catalyst driving the action, although there was some curve-steepening activity in Treasuries following the release of the Empire State Manufacturing Survey, which jumped to 30.9 in November (Briefing.com consensus 20.3) from 19.8 in October.
The 2-yr yield decreased one basis point to 0.52%, while the 10-yr yield rose four basis points to 1.62%. The U.S. Dollar Index rose 0.4% to 95.54. WTI crude futures were unchanged at $80.85/bbl.
The manufacturing survey was a warm-up for tomorrow's release of the Retail Sales report for October. Later in the week, reports indicated that President Biden could nominate a Fed chair and that the CBO plans to release a complete cost estimate for the Build Back Better Act by Friday.
On a related note, President Biden was preparing to sign the $1.2 trillion bipartisan infrastructure bill after the market close.
Shares of Boeing (BA 233.09, +12.13, +5.5%), meanwhile, rose 5.5% after the company received an order for two Boeing 777 freighters from Emirates. Rivian (RIVN 149.36, +19.41, +14.9%) stayed hot and extended its post-IPO gain to over 90%.
Looking ahead, investors will receive Retail Sales for October, Industrial Production and Capacity Utilization, the NAHB Housing Market Index for November, Import and Export Prices for October, Business Inventories for September, and Net Long-Term TIC Flows for September.
S&P 500 +24.7% YTD
Nasdaq Composite +23.0% YTD
Russell 2000 +21.6% YTD
Dow Jones Industrial Average +17.9% YTD
Crude futures settle unchanged
15-Nov-21 15:25 ET
Dow -15.70 at 36084.61, Nasdaq -1.93 at 15859.03, S&P +0.62 at 4683.47
[BRIEFING.COM] The S&P 500 continues to trade flat despite gains in eight of its 11 sectors.
One last look at the sector performances shows energy (+1.0%) and utilities (+1.0%) both up 1.0%, while the health care (-0.6%), materials (-0.5%), and information technology (-0.2%) sectors trade lower.
WTI crude futures settled unchanged at $80.85/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 36100.31 +179.08 (0.50%)
Nasdaq 15860.96 +156.68 (1.00%)
SP 500 4682.85 +33.58 (0.72%)
10-yr Note -2/32 1.572
NYSE Adv 1760 Dec 1553 Vol 767.1 mln
Nasdaq Adv 2467 Dec 2140 Vol 5.3 bln
Industry Watch
Strong: Information Technology, Communication Services
Weak: Utilities, Energy, Financials
Moving the Market
-- Mega-caps lift S&P 500, Nasdaq, and Dow to decent gains
-- Johnson & Johnson (JNJ) announces it will separate its Consumer Health Business into a publicly traded company within two years
-- Weak consumer sentiment report amid inflation concerns
Mega-caps lead market higher
12-Nov-21 16:15 ET
Dow +179.08 at 36100.31, Nasdaq +156.68 at 15860.96, S&P +33.58 at 4682.85
[BRIEFING.COM] The large-cap indices posted decent gains on Friday, recouping some weekly losses, thanks to strong leadership from the mega-cap stocks. The S&P 500 gained 0.7%, the Nasdaq Composite gained 1.0%, and the Dow Jones Industrial Average gained 0.5%. The small-cap Russell 2000 increased just 0.1%.
Each of the FAANG stocks plus Microsoft (MSFT 336.72, +4.29, +1.3%) rose between 1-4% on no specific catalysts other than a buy-the-dip sentiment. The broader market performed fairly well, too, as nine of the 11 S&P 500 sectors closed higher, and the Invesco S&P 500 Equal Weight ETF (RSP 161.65, +0.78) rose a respectable 0.5%.
The mega-caps carried the S&P 500 information technology (+1.2%) and communication services (+1.7%) sectors to the top of the leaderboard. Conversely, the energy (-0.3%) and utilities (-0.2%) sectors were the only groups that ended the day in negative territory.
Johnson & Johnson (JNJ 165.01, +1.95, +1.2%) was another heavyweight that outperformed after announcing plans to spin off its Consumer Health segment into a publicly traded company within 18-24 months. Tesla (TSLA 1033.42, -30.09, -2.8%) bucked the trend after CEO Elon Musk continued to sell shares as part of an online commitment to sell 10% of his stake.
Separately, the preliminary University of Michigan Index of Consumer Sentiment for November dropped to 66.8 (Briefing.com consensus 71.7) from 71.7 in October. The November reading was the lowest level for the index since November 2012 amid burgeoning concerns about rising inflation and reduced living standards.
The response in the Treasury market to the inflation takeaway was delayed. The 10-yr declined to 1.54% soon after the report's release, then rebounded back to 1.58%, or two basis points above Wednesday's settlement. The 2-yr yield increased two basis points to 0.52% after flirting with 0.55% overnight.
The U.S. Dollar Index declined 0.1% to 95.09. WTI crude futures fell 0.7%, or $0.54, to $80.83/bbl. The CBOE Volatility Index (16.29, -1.37, -7.8%) dropped below 16.50.
Reviewing Friday's economic data:
The preliminary November University of Michigan Index of Consumer Sentiment dropped to 66.8 (Briefing.com consensus 71.7) from the final reading of 71.7 for October. It is the lowest reading for the index since November 2012.
The key takeaway from the report is the reporting that escalating inflation is negatively affecting consumer attitudes due to reduced living standards and a growing belief that effective policies are not being developed to reduce the damage from surging inflation.
Job openings decreased to 10.438 million in September from a revised 10.629 million (from 10.439 million) in August.
Looking ahead, investors will receive the Empire State Manufacturing Survey for November on Monday.
S&P 500 +24.7% YTD
Nasdaq Composite +23.1% YTD
Russell 2000 +22.1% YTD
Dow Jones Industrial Average +18.0% YTD
WTI crude futures settle modestly lower
12-Nov-21 15:30 ET
Dow +170.80 at 36092.03, Nasdaq +152.63 at 15856.91, S&P +32.62 at 4681.89
[BRIEFING.COM] The S&P 500 is up 0.7% and on track to end the week with a 0.3% decline. That would snap a five-week winning streak.
One last look at the S&P 500 sectors shows information technology (+1.2%) and communication services (+1.6%) outperforming with gains over 1.0%, while the energy (+0.5%) and utilities (-0.1%) sectors are the only sectors trading lower.
WTI crude futures settled lower by 0.7%, or $0.54, to $80.83/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35921.23 -158.71 (-0.44%)
Nasdaq 15704.28 +81.58 (0.52%)
SP 500 4649.27 +2.56 (0.06%)
10-yr Note 0/32 1.554
NYSE Adv 1879 Dec 1405 Vol 762.4 mln
Nasdaq Adv 2718 Dec 1814 Vol 4.5 bln
Industry Watch
Strong: Information Technology, Materials
Weak: Communication Services, Utilities, Industrials
Moving the Market
-- S&P 500 closes little changed in tight-ranged session
-- Walt Disney (DIS) held back the Dow with a 7% decline on relatively disappointing earnings news
-- Treasury market closed for Veterans Day
S&P 500 closes little changed in lackluster session
11-Nov-21 16:15 ET
Dow -158.71 at 35921.23, Nasdaq +81.58 at 15704.28, S&P +2.56 at 4649.27
[BRIEFING.COM] The S&P 500 increased 0.1% on Thursday in a tight-ranged session. The Nasdaq Composite (+0.5%) and Russell 2000 (+0.8%) outperformed the benchmark index with decent gains, while the Dow Jones Industrial Average fell 0.4%.
Walt Disney (DIS 162.09, -12.36, -7.1%) was a heavy drag on the Dow, falling 7% after missing earnings expectations amid a sharper-than-expected slowdown in Disney+ streaming subscriptions. As for the broader market, there was a meager attempt to rebound from recent losses.
That was partly due to the lack of guidance from the Treasury market (closed for Veterans Day), the absence of economic data, an intraday turnaround in Amazon.com (AMZN 3472.50, -9.55, -0.3%), hawkish Fed expectations for next year, and a sense that the market was still overextended and needed more time to cool off.
Six of the 11 S&P 500 sectors closed higher, while five closed lower. The materials (+0.9%) and information technology (+0.5%) sectors finished atop the standings with modest gains, while the communication services (-0.5%) and utilities (-0.6%) sectors underperformed. No sector gained or lost more than 1.0%.
The Philadelphia Semiconductor Index (+1.9%), however, did put forth a strong rebound-minded performance with a 2% gain.
Rivian (RIVN 122.99, +22.26, +22.1%), meanwhile, stayed hot with a 22% gain following its strong IPO yesterday. Fellow growth stocks Affirm Holdings (AFRM 151.83, +18.30, +13.7%), SoFi Technologies (SOFI 22.97, +2.55, +12.5%), and Opendoor Technologies (OPEN 22.56, +3.04, +15.6%) rallied on pleasing earnings news.
Beyond Meat (BYND 81.93, -12.55, -13.3%) and Bumble (BMBL 38.56, -9.19, -19.3%), on the other hand, fell sharply following their earnings reports.
Outside equities, the U.S. Dollar Index advanced 0.4% to 95.18. -- its highest level since July 2020. WTI crude futures ($81.37/bbl, +0.20, +0.3%) inched higher after falling 3.5% yesterday.
Looking ahead, investors will receive the preliminary University of Michigan Index of Consumer Sentiment for November and the JOLTS - Job Opening report for September on Friday.
S&P 500 +23.8% YTD
Nasdaq Composite +21.9% YTD
Russell 2000 +22.0% YTD
Dow Jones Industrial Average +17.4% YTD
WTI crude futures inch higher after bad day
11-Nov-21 15:30 ET
Dow -124.07 at 35955.87, Nasdaq +88.87 at 15711.57, S&P +6.67 at 4653.38
[BRIEFING.COM] The S&P 500 is up 0.2% while the Russell 2000 continues to outperform with a 0.8% gain.
One last look at the sectors shows materials (+1.0%), financials (+0.6%), energy (+0.5%), and information technology (+0.5%) outperforming the S&P 500 with decent gains, while the utilities (-0.6%) and industrials (-0.4%) sectors lag with modest losses.
WTI crude futures settled higher by 0.3%, or $0.20, to $81.37/bbl after falling 3.5% yesterday.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 36079.94 -240.04 (-0.66%)
Nasdaq 15622.70 -263.84 (-1.66%)
SP 500 4646.71 -38.54 (-0.82%)
10-yr Note -18/32 1.564
NYSE Adv 1036 Dec 2252 Vol 894.9 mln
Nasdaq Adv 1318 Dec 3201 Vol 5.2 bln
Industry Watch
Strong: Consumer Staples, Utilities, Health Care
Weak: Information Technology, Energy, Communication Services
Moving the Market
-- CPI data for October hotter than expected
-- Treasury yields across the curve rise noticeably
-- Expectations for Fed to hike rates in June 2022 increased to nearly 70%, according to the CME Fed Watch Tool
-- Huge Rivian (RIVN) IPO
Hot CPI data cools off market
10-Nov-21 16:20 ET
Dow -240.04 at 36079.94, Nasdaq -263.84 at 15622.70, S&P -38.54 at 4646.71
[BRIEFING.COM] The S&P 500 fell 0.8% on Wednesday, as the market cooled off amid hot CPI data for October and a corresponding pop in Treasury yields. The Nasdaq Composite (-1.7%) and Russell 2000 (-1.6%) declined more than 1.5%, while the Dow Jones Industrial Average fell 0.7%.
The information technology (-1.7%), communication services (-1.3%), and energy (-3.0%) sectors were the weakest sectors in the S&P 500 with losses between 1-3%. The defensive-oriented utilities (+0.7%), health care (+0.3%), and consumer staples (+0.3%) sectors were the only sectors that closed higher.
Specifying the data, the Consumer Price Index report showed total CPI was up 0.9% m/m (Briefing.com consensus +0.6%) and up 6.2% yr/yr -- the largest 12-month increase since November 1990. Core CPI, which excludes food and energy, rose 0.6% m/m (Briefing.com consensus +0.4%) and was up 4.6% yr/yr.
The Treasury market, which was already sniffing a hot report in the wake of hot inflation data out of China and Germany, weakened further intraday on the prospect for the Fed to aggressively tighten policy next year. According to the CME Fed Watch Tool, the probability for a rate hike in June 2022 increased to 67.9%, versus 50.9% yesterday.
What's more, the $25 bln 30-yr bond auction saw weak demand in the afternoon, further contributing to the selling in Treasuries. The 2-yr yield settled higher by ten basis points to 0.50%, and the 10-yr yield settled higher by 13 points to 1.56%. WTI crude futures fell 3.5%, or $2.93, to $81.23/bbl amid bearish inventory data.
Note, the 10-yr yield remained below recent highs, so it was the speedy move that curtailed risk appetite, particularly for the growth stocks and other high-beta names. The Vanguard Mega Cap Growth ETF (MGK 254.95, -3.61) fell 1.4%, and the ARK Innovation ETF (ARKK 116.64, -3.93) fell 3.3%.
Elsewhere, the excess speculation emanating from the huge Rivian (RIVN 100.73, +22.73, +29.1%) IPO served as another excuse for investors to take profits, or at the very least step away from the market. RIVN closed below its opening price of $106.75 but still finished 29% above its IPO price.
Coinbase Global (COIN 328.60, -28.79, -8.1%) was a high-profile laggard, additionally pressured by disappointing earnings news and a fade in cryptocurrencies. DoorDash (DASH 214.24, +22.23, +11.6%) bucked the growth-stock trend with a nice gain following its earnings report.
Reviewing Wednesday's economic data:
Total CPI jumped 0.9% month-over-month in October (Briefing.com consensus +0.6%) and was up 6.2% year-over-year. That was the largest 12-month increase since November 1990. Core CPI, which excludes food and energy, rose 0.6% month-over-month (Briefing.com consensus +0.4%) and was up 4.6% year-over-year, which the BLS said was the largest 12-month increase since August 1991.
The key takeaway from the report -- aside from the roughly 30-year highs in total CPI and core CPI -- is the acknowledgment that most component indexes increased over the month, which reflects a broadening of the inflation pressures.
Total jobless claims for the week ending November 6 decreased by 4,000 to 267,000 (Briefing.com consensus 265,000), which is the lowest since March 14, 2020. Continuing claims for the week ending October 30 increased by 59,000 to 2.160 million.
The key takeaway from this report is the ongoing improvement in initial claims, which matches the corporate narrative that it has been difficult to find workers in a strong demand environment.
The Treasury Budget saw a $165.1 bln deficit in October, versus a $284.1 bln deficit in the same period a year ago. The budget data is not seasonally adjusted, so the October deficit cannot be compared to the September deficit of $61.6 bln.
October, which marks the start of the new fiscal year for the government, marked the 25th consecutive month that the Treasury has seen a budget deficit. The budget deficit over the last 12 months is $2.65 trln versus a deficit of $2.77 bln in September.
Wholesale inventories increased 1.4% m/m in September (Briefing.com consensus 1.1%) following a 1.2% increase in the prior week.
Weekly crude oil inventories increased by 1.00 mln barrels after increasing by 3.29 mln barrels during the previous week.
The weekly MBA Mortgage Applications Index rose 5.5% following a 3.3% decline in the prior week.
There is no economic data scheduled for Thursday. As a reminder, the Treasury market will be closed tomorrow for Veterans Day.
S&P 500 +23.7% YTD
Nasdaq Composite +21.2% YTD
Russell 2000 +21.0% YTD
Dow Jones Industrial Average +17.9% YTD
Crude futures settle lower amid bearish data
10-Nov-21 15:30 ET
Dow -208.67 at 36111.31, Nasdaq -256.42 at 15630.12, S&P -36.25 at 4649.00
[BRIEFING.COM] The S&P 500 is down 0.8% to trade off prior lows. Eight of the 11 S&P 500 sectors are contributing to the decline.
The energy sector (-2.8%) is the weakest performer with a 2.8% decline, followed by the information technology (-1.6%) and communication services (-1.3%) sectors with losses over 1.0%. The utilities (+0.6%), health care (+0.3%), and consumer staples (+0.2%) sectors trade higher.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 36319.98 -112.24 (-0.31%)
Nasdaq 15886.54 -95.81 (-0.60%)
SP 500 4685.25 -16.45 (-0.35%)
10-yr Note +26/32 1.442
NYSE Adv 1512 Dec 1719 Vol 834.4 mln
Nasdaq Adv 1854 Dec 2696 Vol 5.4 bln
Industry Watch
Strong: Utilities, Real Estate, Consumer Staples, Energy, Materials, Industrials
Weak: Consumer Discretionary, Financials
Moving the Market
-- S&P 500 and Nasdaq snap winning streaks
-- Tesla (TSLA) fell 12% amid profit-taking interest, PayPal (PYPL) fell 10.5% after reporting earnings
-- Treasury yields declined despite hot PPI report for October and soft 10-yr note auction
Winning streak snapped
09-Nov-21 16:20 ET
Dow -112.24 at 36319.98, Nasdaq -95.81 at 15886.54, S&P -16.45 at 4685.25
[BRIEFING.COM] The S&P 500 declined 0.4% on Tuesday, snapping an eight-session winning streak amid profit-taking interest and another decline in Treasury yields. The Nasdaq Composite snapped an 11-session winning streak with a 0.6% decline. The Russell 2000 also fell 0.6% while the Dow Jones Industrial Average fell 0.3%.
Tesla (TSLA 1023.50, -139.44, -12.0%) was the prime recipient of profit taking, as the stock fell 12% today and extended its two-day decline to 16%. Entering the week, the stock was up more than 55% in a month. Accordingly, TSLA dragged the S&P 500 consumer discretionary sector (-1.4%) to the bottom of the sector standings.
The information technology (-0.4%), financials (-0.6%), health care (-0.4%), and communication services (-0.3%) sectors closed modestly lower, while the six other sectors in the S&P 500 provided offsetting support with 0.3-0.4% gains. The utilities sector (+0.4%) eked out the top spot.
PayPal (PYPL 205.42, -24.00, -10.5%) held back the technology sector with a 10.5% decline following its earnings report. Elsewhere, peculiar curve-flattening activity in the Treasury market weighed on the financials sector.
The price action in Treasuries was counter-intuitive because yields settled lower despite the elevated inflation pressures depicted in the Producer Price Index (PPI) report for October and the lukewarm demand in the $39 billion 10-yr Treasury note auction. Total PPI increased 0.6% month-over-month, in-line with the Briefing.com consensus, and held steady at 8.6% year-over-year.
The 2-yr yield fell five basis points to 0.40%, and the 10-yr yield fell seven basis points to 1.43%. The U.S. Dollar Index declined 0.1% to 93.97. WTI crude futures rose 2.7%, or $2.20, to $84.16/bbl.
Presumably, Treasuries were propped up by defensive positioning from investors cautious on equities, by peak inflation expectations, and by an understanding that the Fed isn't in a hurry to hike rates.
Separately, shares of Roblox (RBLX 109.52, +32.52, +42.2%) soared 42% after the company pleased investors with its earnings report. General Electric (GE 111.29, +2.87, +2.7%) rose nearly 3.0% after announcing plans to form three public companies focused on aviation, healthcare, and energy.
Reviewing Tuesday's economic data:
The Producer Price Index for final demand increased 0.6% month-over-month in October (Briefing.com consensus +0.6%) and the index for final demand, less foods and energy, increased 0.4% (Briefing.com consensus +0.4%).
The key takeaway from the report is that the year-over-year readings for total PPI and core PPI were unchanged from September, which will contribute to the notion that the inflation experienced by producers is at, or near, peak levels.
The NFIB Small Business Optimism Index for October decreased to 98.2 from 99.1 in September.
Looking ahead, investors will receive the the Consumer Price Index for October, weekly Initial and Continuing Claims, the Treasury Budget for October, and Wholesale Inventories for September on Wednesday.
S&P 500 +24.7% YTD
Nasdaq Composite +23.3% YTD
Russell 2000 +22.9% YTD
Dow Jones Industrial Average +18.7% YTD
WTI crude futures rally nearly 3%
09-Nov-21 15:30 ET
Dow -169.86 at 36262.36, Nasdaq -114.13 at 15868.22, S&P -22.05 at 4679.65
[BRIEFING.COM] The S&P 500 is down 0.5% and on track to snap its eight-session winning streak.
One last look at the S&P 500 sectors shows six sectors in the green and five sectors in the red. Consumer discretionary (-1.5%) is the weakest link with a 1.5% decline, while the utilities sector (+0.5%) outperforms with a 0.5% gain.
WTI crude futures rose 2.7%, or $2.20, to $84.16/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 36432.22 +104.27 (0.29%)
Nasdaq 15982.35 +10.77 (0.07%)
SP 500 4701.70 +4.17 (0.09%)
10-yr Note -18/32 1.497
NYSE Adv 1818 Dec 1502 Vol 859.3 mln
Nasdaq Adv 2562 Dec 2052 Vol 5.41 bln
Industry Watch
Strong: Energy, Materials, Financials, Industrials, Technology
Weak: Utilities, Real Estate, Consumer Staples, Consumer Discretionary
Moving the Market
House passes $550 bln in new fiscal spending, aiming to approve another $1.75 trln by Thanksgiving
Infrastructure-related names outperform
Crude oil rising toward last week's high
Quiet Start to New Week
08-Nov-21 16:10 ET
Dow +104.27 at 36432.22, Nasdaq +10.77 at 15982.35, S&P +4.17 at 4701.70
[BRIEFING.COM] The stock market began the week on a quiet note with the S&P 500 (+0.1%) inching toward its intraday record from Friday. The benchmark index climbed for the eighth consecutive day while the Dow (+0.3%) outperformed slightly.
The S&P 500 hit its best level of the day during the opening minutes before slowly retreating toward the unchanged level. However, it bounced out of the red in the late morning, inching back toward its opening mark as the day went on.
Growth-sensitive sectors like energy (+0.9%) and materials (+1.2%) got out to an early lead where they remained until the close. The energy sector was boosted by crude oil, which climbed $0.71, or 0.9%, to $81.96/bbl, rising toward its high from Thursday (83.42). Meanwhile, the materials sector benefited from the weekend passage of $550 bln in new infrastructure spending. Copper miner Freeport-McMoRan (FCX 39.43, +2.39, +6.5%) was a standout performer in the materials sector, bouncing toward its October high, while fertilizer producer, CF Industries (CF 62.54, +3.34, +5.6%), and building materials provider, Vulcan Materials (VMC 205.76, +9.70, +5.0%), followed.
Gains in heavily weighted sectors like health care (+0.5%) and financials (+0.5%) kept the S&P 500 from finishing in the red while the top-weighted technology sector (+0.6%) also finished ahead of the broader market. Chipmakers were a significant source of strength with AMD (AMD 150.16, +13.82, +10.1%) rallying more than 10% to a fresh record. The company unveiled a couple new products and announced an order from a large customer.
On the downside, the utilities sector (-1.5%) finished just behind the consumer discretionary space (-1.4%). The utilities sector widened its month-to-date loss to 1.0%, which leaves the group at the bottom of the November leaderboard, while the discretionary sector narrowed its November gain to 3.5%. The sector was pressured by losses among half of its components with Tesla (TSLA 1162.00, -60.09, -4.9%) falling toward its low from the middle of last week after CEO Musk indicated that he will abide by the results of a poll that suggested he should sell 10% of his stock.
Treasuries finished the day on a mostly lower note with the 10-yr yield rising four basis points to 1.50%.
In Fed news, Governor and vice chair for supervision Quarles has resigned, planning to depart at the end of the year.
The October NFIB Small Business Optimism (prior 99.1) will be released tomorrow at 6:00 ET, followed by October PPI (Briefing.com consensus 0.6%; prior 0.5%) and Core PPI (Briefing.com consensus 0.4%; prior 0.2%) at 8:30 ET.
S&P 500 +25.2% YTD
Russell 2000 +23.7% YTD
Dow Jones Industrial Average +19.0% YTD
Nasdaq Composite +19.0% YTD
Maintaining Slight Gains
08-Nov-21 15:30 ET
Dow +89.63 at 36417.58, Nasdaq +27.78 at 15999.36, S&P +4.96 at 4702.49
[BRIEFING.COM] The S&P 500 trades higher by 0.1% with 30 minutes remaining in today's session.
Seven sectors trade in positive territory going into the home stretch with materials (+1.2%) maintaining their lead after the passage of $550 mln in new infrastructure spending. Meanwhile, the energy sector has narrowed its gain to 0.7% after leading through the first half of today's session.
On a related note, crude oil climbed $0.71, or 0.9%, to $81.96/bbl, rising toward its high from Thursday (83.42).
Technology Outperforms
08-Nov-21 15:00 ET
Dow +123.94 at 36451.89, Nasdaq +41.62 at 16013.20, S&P +9.23 at 4706.76
[BRIEFING.COM] The major averages are hanging onto slim gains after bouncing off their late-morning lows. The S&P 500 (+0.2%) hovers near the midpoint of today's range with its record high looming about 15 points above.
The materials sector (+1.1%) has overtaken energy (+0.8%) for the lead while the top-weighted technology sector (+0.7%) has added to its gain. Chipmakers have also added to their gains with the PHLX Semiconductor Index now up 1.6% and AMD (AMD 151.57, +15.23, +11.2%) extending its gain to nearly 12.0% after announcing a new product and new product deals.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 36327.95 +203.72 (0.56%)
Nasdaq 15971.58 +31.28 (0.20%)
SP 500 4697.53 +17.47 (0.37%)
10-yr Note +28/32 1.460
NYSE Adv 2112 Dec 1101 Vol 897.9 mln
Nasdaq Adv 2408 Dec 2077 Vol 5.5 bln
Industry Watch
Strong: Industrials, Energy, Utilities, Materials, Consumer Discretionary
Weak: Health Care, Financials
Moving the Market
-- Stronger-than-expected October employment report
-- Pfizer (PFE) announces positive data for its COVID-19 oral antiviral
-- Pleasing earnings news, including commentary about strong travel demand
-- Long-term interest rates extend retreat
Each of the major indices close at record highs (again)
05-Nov-21 16:15 ET
Dow +203.72 at 36327.95, Nasdaq +31.28 at 15971.58, S&P +17.47 at 4697.53
[BRIEFING.COM] Each of the major indices set intraday and closing record highs on Friday, supported by a stronger-than-expected October employment report, encouraging COVID-19 antiviral news from Pfizer (PFE 48.62, +4.77, +10.9%), pleasing earnings news, and another retreat in long-term interest rates.
The market, however, closed off session highs. The S&P 500 (+0.4%), Nasdaq Composite (+0.2%), and Dow Jones Industrial Average (+0.6%) rose between 0.2-0.6% after being up 0.7-1.0% early in the session. The Russell 2000 outperformed with a 1.4% gain.
Ten of the 11 S&P 500 sectors contributed to the advance. The energy (+1.4%) and industrials (+1.0%) sectors finished atop the standings with gains of at least 1.0%, while the health care sector (-1.0%) fell 1%, ironically due to the success of Pfizer.
Prior to the open, Pfizer announced its COVID-19 oral antiviral reduced the risk of hospitalization or death by 89% in interim data. The news undercut shares of Merck (MRK 81.61, -8.93, -9.9%), which has a competing treatment, and shares of other vaccine makers like Moderna (MRNA 236.99, -47.03, -16.6%). MRK fell 10%, and MRNA fell 17%.
As for the jobs data, nonfarm payrolls increased by 531,000 (Briefing.com consensus 400,000), the unemployment rate improved to 4.6% (Briefing.com consensus 4.7%) from 4.8% in September, and average hourly earnings increased 0.4% m/m (Briefing.com consensus 0.4%).
Despite the wage inflation, the 10-yr yield fell seven basis points to 1.45% in a move that signaled easing inflation concerns. The 2-yr yield decreased two basis points to 0.39%. The U.S. Dollar Index decreased 0.2% to 94.20.
This retracement in long-term rates was a supportive factor for the growth stocks for valuation reasons, although the value stocks outperformed today. The Russell 1000 Growth Index increased 0.2%. The Russell 1000 Value Index increased 0.5%.
In addition to the Pfizer and jobs news, travel-related stocks in particular keyed off earnings results and/or guidance from Airbnb (ABNB 201.62, +23.17, +13.0%), Uber (UBER 47.19, +1.92, +4.2%), and Expedia (EXPE 182.17, +24.62, +15.6%). Airbnb spoke positively about travel, saying it expects strong demand to extend well into 2022.
The U.S. Global Jets ETF (JETS 24.63, +1.48, +6.4%) jumped 6.4%, undeterred by the 3% rebound in oil prices ($81.25, +2.48, +3.2%).
Reviewing Friday's economic data:
Nonfarm and nonfarm private payroll growth in October were much stronger than expected and there was a further boost in nice upward revisions for prior months. At the same time, though, this report brought additional wage inflation, as average hourly earnings increased 4.9% year-over-year, versus 4.6% in September.
October nonfarm payrolls increased by 531,000 (Briefing.com consensus 400,000). The 3-month average for total nonfarm payrolls decreased to 442,000 from 629,000 in September. September nonfarm payrolls revised to 312,000 from 194,000. August nonfarm payrolls revised to 483,000 from 366,000.
October private sector payrolls increased by 604,000 (Briefing.com consensus 390,000). September private sector payrolls revised to 365,000 from 317,000. August private sector payrolls revised to 504,000 from 332,000.
October unemployment rate was 4.6% (Briefing.com consensus 4.7%), versus 4.8% in September. Persons unemployed for 27 weeks or more accounted for 31.6% of the unemployed versus 34.5% in September. The U6 unemployment rate, which accounts for unemployed and underemployed workers, was 8.3%, versus 8.5% in September.
October average hourly earnings increased 0.4% (Briefing.com consensus 0.4%) versus a 0.6% increase in September. Over the last 12 months, average hourly earnings have risen 4.9%, versus 4.6% for the 12 months ending in September.
The average workweek in October was 34.7 hours (Briefing.com consensus 34.8), versus 34.8 hours in September. Manufacturing workweek dipped 0.1 hours to 40.3 hours. Factory overtime dipped 0.1 hours to 3.2 hours.
The key takeaway from the employment report is the broad-based pickup in hiring activity across the private sector, as that will be interpreted as being a byproduct of dissipating Delta issues and employers seeing a favorable demand backdrop.
Consumer credit increased by $29.9 bln in September (Briefing.com consensus $17.0 bln) after increasing a revised $13.8 bln (from $14.4 bln) in August.
The key takeaway from the report is that consumer credit expanded for the eighth consecutive month, reflecting continued demand for goods and services.
There is no economic data of note scheduled for Monday.
S&P 500 +25.1% YTD
Nasdaq Composite +23.9% YTD
Russell 2000 +23.4% YTD
Dow Jones Industrial Average +18.7% YTD
Crude futures bounce back over $80 per barrel
05-Nov-21 15:35 ET
Dow +188.48 at 36312.71, Nasdaq +10.70 at 15951.00, S&P +14.01 at 4694.07
[BRIEFING.COM] The S&P 500 is up 0.3% and on track to close at a record high.
One last look at the sectors shows industrials (+1.1%) and energy (+1.5%) in the lead with gains over 1.0%. The health care sector (-1.3%) remains at the bottom while the financials sector (-0.02%) has just slipped into negative territory amid the decline in Treasury yields.
WTI crude futures bounced back from recent losses and settled higher by 3.2%, or $2.48, to $81.25/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 36124.23 -33.35 (-0.09%)
Nasdaq 15940.30 +128.72 (0.81%)
SP 500 4680.06 +19.49 (0.42%)
10-yr Note +29/32 1.522
NYSE Adv 1438 Dec 1779 Vol 905.4 mln
Nasdaq Adv 2021 Dec 2486 Vol 5.2 bln
Industry Watch
Strong: Information Technology and Consumer Discretionary
Weak: Financials, Health Care, Real Estate
Moving the Market
-- S&P 500 and Nasdaq extend post-FOMC gains
-- Qualcomm (QCOM) provides positive earnings report and upbeat guidance
-- Treasury yields drop as market digests yesterday's Fed commentary
-- Strength in the large growth stocks, weakness in the value stocks
Nasdaq 100 comes out on top in record session
04-Nov-21 16:15 ET
Dow -33.35 at 36124.23, Nasdaq +128.72 at 15940.30, S&P +19.49 at 4680.06
[BRIEFING.COM] The S&P 500 gained 0.4% on Thursday, setting intraday and closing record highs, as strength in the large growth stocks outweighed weakness in the value stocks. The Nasdaq 100, which is heavily exposed to mega-cap growth, rallied 1.3% to outdo the record-setting advance in the Nasdaq Composite (+0.8%).
The Dow Jones Industrial Average (-0.1%) and Russell 2000 (-0.1%) closed slightly lower, burdened by the losses in value stocks. The Russell 1000 Value Index fell 0.4%.
Two factors that catalyzed the outperformance of the Nasdaq 100 were noticeable drops in interest rates and positive earnings results and guidance from Qualcomm (QCOM 156.11, +17.63, +12.7%). The former was rooted in tempered rate-hike/inflation expectations after the FOMC meeting yesterday. The latter helped drive NVIDIA (NVDA 298.01, +32.03, +12.0%) to a 12% gain.
Accordingly, the S&P 500 information technology sector, which is home to the semiconductor stocks, rose 1.5%. The consumer discretionary sector (+1.5%) tied for the lead amid strength in Amazon.com (AMZN 3477.00, +93.00, +2.8%) and Tesla (TSLA 1229.91, +16.05, +1.3%).
The broader market, however, didn't look so hot with the ratio of advancing to declining issues favoring the latter at the NYSE and Nasdaq. Laggards were found in the financials (-1.3%), real estate (-1.1%), and health care (-0.8%) sectors.
Investors shied away from the rate-sensitive financial stocks amid the decline in Treasury yields: the 2-yr yield fell six basis points to 0.41%, and the 10-yr yield fell six basis points to 1.52%. The U.S. Dollar Index rose 0.5% to 94.32.
Moderna (MRNA 284.02, -61.90, -17.9%) held back the health care sector, and even the Nasdaq 100, with an 18% decline following some disappointing earnings news. Roku (ROKU 289.39, -24.27, -7.7%) was another high-profile earnings loser.
In other developments, WTI crude futures ($78.77, -2.04, -2.5%) extended their pullback below $80/bbl after OPEC+ agreed to maintain its current production schedule for December. The Joint Committee on Taxation said the Build Back Better Act will raise $1.5 trillion over 10 years in new taxes. Weekly jobless claims continued to trend in the right direction.
Reviewing Thursday's economic data:
Initial jobless claims for the week ending October 30 decreased by 14,000 to 269,000 (Briefing.com consensus 277,000). Continuing claims for the week ending October 23 decreased by 134,000 to 2.105 million.
The key takeaway from the report is that the declining level of initial claims fits the script of a labor market that is reportedly brimming with job openings.
Third quarter productivity decreased 5.0% (Briefing.com consensus -1.5%) after increasing an upwardly revised 2.4% (from 2.1%) in the second quarter. Unit labor costs surged at an annual rate of 8.3% (Briefing.com consensus +5.8%) after increasing a downwardly revised 1.1% (from 1.3%) in the second quarter.
The key takeaway from the report is that it was the lowest level of productivity since the second quarter of 1981 and reflects the labor cost pressures that are building with the weak productivity.
The September trade deficit was worse than expected, hitting a record high $80.9 billion (Briefing.com consensus $71.0 billion) after an upwardly revised $72.8 billion deficit (from $73.3 billion) in August.
The key takeaway from the report is the connection that supply chain issues, transportation bottlenecks, and COVID prevention measures have detracted from global trading activity.
Looking ahead, investors will receive the Employment Situation Report for October and Consumer Credit for September on Friday.
S&P 500 +24.6% YTD
Nasdaq Composite +23.7% YTD
Russell 2000 +21.7% YTD
Dow Jones Industrial Average +18.0% YTD
Crude futures extend pullback after OPEC+ decision
04-Nov-21 15:30 ET
Dow -124.13 at 36033.45, Nasdaq +123.43 at 15935.01, S&P +11.51 at 4672.08
[BRIEFING.COM] The S&P 500 is up 0.3% and on track to close at a record high.
One last look at the S&P 500 sectors shows consumer discretionary (+1.6%), and information technology (+1.6%) sharing the lead with 1.6% gains amid strength in the mega-caps. The financials (-1.8%), health care (-1.4%), and real estate (-1.2%) sectors, though, are down over 1.0%.
WTI crude futures settled sharply lower by 2.5%, or $2.04, to $78.77/bbl after OPEC+ agreed to maintain its production output plan for December. OPEC+ will increase production by 400,000 barrels per day.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 36157.58 +104.95 (0.29%)
Nasdaq 15811.58 +161.98 (1.04%)
SP 500 4660.57 +29.92 (0.65%)
10-yr Note +1/32 1.557
NYSE Adv 2157 Dec 1098 Vol 908.3 mln
Nasdaq Adv 3009 Dec 1475 Vol 5.2 bln
Industry Watch
Strong: Consumer Discretionary, Materials
Weak: Industrials, Information Technology, Health Care
Moving the Market
-- Market notches fresh record highs
-- Fed keeps rates unchanged and announces taper plan
-- Fed Chair Powell talks down rake-hike questions
-- Service-sector activity accelerates in October
Market closes at record highs following Fed decision
03-Nov-21 16:20 ET
Dow +104.95 at 36157.58, Nasdaq +161.98 at 15811.58, S&P +29.92 at 4660.57
[BRIEFING.COM] Each of the major indices set intraday and closing record highs on Wednesday, as the market reacted positively to the Fed's taper announcement and Fed Chair Powell's press conference. The Russell 2000 was the biggest winner with a 1.8% gain, followed by the Nasdaq Composite (+1.0%), S&P 500 (+0.7%), and Dow Jones Industrial Average (+0.3%).
Eight of the 11 S&P 500 sectors closed higher, led by the consumer discretionary (+1.8%) and materials (+1.1%) sectors with gains over 1.0%. The energy (-0.8%), utilities (-0.3%), and industrials (-0.2%) sectors closed lower. Small-caps were strong all day, and the larger stocks gained traction following the Fed's policy decision.
As expected, the Fed left the target range for the fed funds rate near zero and said it would reduce net asset purchases by a total of $15 billion this month ($10 billion for Treasury securities and $5 billion for agency mortgage-backed securities). The central bank went one step further and said it would taper by another $15 billion in December.
Fed Chair Powell talked down rate-hike questions with an observation that it'll still take some time to reach maximum employment (perhaps by the second half of 2022) and that inflation should be less of an issue by the second or third quarters of next year. He emphasized that policy will be adaptive to the data.
The 2-yr yield, which is sensitive to expectations surrounding the fed funds rate, settled two basis points higher at 0.46% after hitting 0.51% during the start of Mr. Powell's press conference. The 10-yr yield settled three basis points higher at 1.58%. The U.S. Dollar Index fell 0.2% to 93.90.
Prior to the Fed, the market was drawing support from several factors: 1) the October ISM Non-Manufacturing Index, the October ADP Employment Change report, and Factory Orders for September each exceeded expectations, 2) oil prices ($80.81/bbl, -3.05, -3.6%) continued to cool off, and 3) a lot of companies continued to beat EPS estimates.
T-Mobile US (TMUS 121.94, +6.14, +5.3%), CVS Health (CVS 96.34, +5.19, +5.7%), and Lyft (LYFT 49.03, +3.71, +8.2%) were some of the notable earnings winners. Activision Blizzard (ATVI 66.75, -10.92, -14.1%) and Zillow Group (ZG 65.86, -19.62, -23.0%), however, were two eyesores following their earnings reports.
Investors appeared on board with riding the market higher, with hedging interest continuing to decline. The CBOE Volatility Index (15.10, -0.93, -5.8%) closed near 15.00.
Reviewing Wednesday's economic data:
The ISM Non-Manufacturing Index for October increased to a record high 66.7% (Briefing.com consensus 60.0%) from 61.9% in September. The dividing line between expansion and contraction is 50.0%. The October reading marks the 17th straight month of growth for the services sector.
The key takeaway from the report is the acknowledgment that demand shows no signs of slowing and services sector activity is running at a record pace even with the constraints of labor shortages, logistics problems, and difficulty in obtaining materials.
Factory orders for manufactured goods increased 0.2% m/m in September (Briefing.com consensus -0.1%) following a downwardly revised 1.0% increase (from 1.2%) in August. Shipments of manufactured goods were up 0.6% after increasing 0.1% in August.
The key takeaway from the report is that the pace of order growth remained positive for nondefense capital goods, excluding aircraft -- a proxy for business spending -- demonstrating that manufacturing demand remained sturdy in spite of the pressures related to the Delta variant.
The ADP Employment Change report estimated 571,000 jobs were added to private-sector payrolls in October (Briefing.com consensus 370,000). The increase in September was downwardly revised to 523,000 from 568,000.
The IHS Markit Services PMI increased to 58.7 in the final reading for October from 58.2 in the preliminary reading and 54.9 in the final reading for September.
The weekly MBA Mortgage Applications Index decreased 3.3% following a 0.3% increase in the prior week.
Weekly crude oil inventories increased by 3.29 mln barrels after increasing by 4.27 mln barrels during the previous week.
Looking ahead, investors will receive weekly Initial and Continuing Claims, preliminary Productivity and Unit Labor Costs for the third quarter, and the Trade Balance for September on Thursday.
S&P 500 +24.1% YTD
Nasdaq Composite +22.7% YTD
Russell 2000 +21.7% YTD
Dow Jones Industrial Average +18.1% YTD
Crude futures settle sharply lower amid bearish data
03-Nov-21 15:30 ET
Dow +69.93 at 36122.56, Nasdaq +131.00 at 15780.60, S&P +23.11 at 4653.76
[BRIEFING.COM] The S&P 500 is up 0.5%, and the Russell 2000 is up 2.0%.
One last look at the sector performances shows consumer discretionary (+1.6%) and materials (+1.4%) sectors leading the advance with gains over 1.0%, while the energy (-0.6%), utilities (-0.7%), and industrials (-0.4%) sectors are the only sectors trading lower.
WTI crude futures settled sharply lower by by 3.6%, or $3.05, to $80.81/bbl amid bearish inventory data out of the EIA, which reported the fifth weekly build in six weeks.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 36052.63 +138.79 (0.39%)
Nasdaq 15649.60 +53.69 (0.34%)
SP 500 4630.65 +16.98 (0.37%)
10-yr Note +1/32 1.557
NYSE Adv 1523 Dec 1759 Vol 832.0 mln
Nasdaq Adv 2327 Dec 2250 Vol 5.0 bln
Industry Watch
Strong: Materials, Real Estate, Information Technology
Weak: Consumer Discretionary, Energy
Moving the Market
-- S&P 500, Dow, Nasdaq, and Russell 2000 set intraday and closing record highs
-- Better-than-expected earnings reports, catalyzing a host of bullish reactions
-- Mega-cap support, positive momentum
Record closes for each of the major indices
02-Nov-21 16:20 ET
Dow +138.79 at 36052.63, Nasdaq +53.69 at 15649.60, S&P +16.98 at 4630.65
[BRIEFING.COM] The S&P 500 (+0.4%), Dow Jones Industrial Average (+0.5%), Nasdaq Composite (+0.3%), and Russell 2000 (+0.2%) set intraday and closing record highs on Tuesday. The market drew support from bullish earnings reactions, positive momentum, and some mega-cap support.
Avis Budget (CAR 357.17, +185.71, +108.3%) stole the earnings show, with the stock more than doubling in a short squeeze after the company beat top and bottom-line estimates. Avis shares were up as much as 218%, exemplifying the intense spirit of this bull market, and the intraday retracement didn't deter overall risk sentiment.
To be fair, the breadth of the market was more mixed in front of the FOMC policy announcement tomorrow. While nine of the 11 S&P 500 sectors closed higher, declining issues outpaced advancing issues at the NYSE and were roughly even at the Nasdaq.
The materials sector (+1.1%) was the only sector that gained more than 1.0%, but Apple (AAPL 150.02, +1.06, +0.7%), Microsoft (MSFT 333.13, +3.76, +1.1%), Alphabet (GOOG 2917.26, +41.78, +1.5%), and NVIDIA (NVDA 264.01, +5.74, +2.2%) provided individual leadership.
Conversely, the energy (-1.0%) and consumer discretionary (-0.6%) sectors lower. Tesla (TSLA 1171.97, -36.62, -3.0%) held back the latter after CEO Elon Musk said there has yet to be a signed contract with Hertz Global (HTZZ 35.06, +0.91, +2.7%) and that the deal would have no economic impact on Tesla.
Back to earnings, Pfizer (PFE 45.45, +1.81, +4.2%), Estee Lauder (EL 338.62, +13.47, +4.1%), Arista Networks (ANET 491.87, +83.30, +20.4%), Zebra Technologies (ZBRA 585.55, +42.96, +7.9%), and Under Armour (UA 21.68, +2.65, +13.9%) also saw sizable gains following their earnings reports, although not to the same extent as Avis Budget.
Elsewhere, Treasuries saw increased demand ahead of the Fed decision tomorrow, driving yields lower in a curve-steepening trade. The 2-yr yield fell six basis points to 0.45%, and the 10-yr yield fell three basis points to 1.55%. The U.S. Dollar Index gained 0.2% to 94.10. WTI crude futures decreased 0.2%, or $0.19, to $83.86/bbl.
Hedging interest remained muted amid the resolve in the major indices. The CBOE Volatility Index (16.03, -0.38, -2.3%) closed near the 16.00 level.
Investors did not receive any economic data on Tuesday. Looking ahead to Wednesday, investors will receive the ISM Non-Manufacturing Index for October, the ADP Employment Change report for October, Factory Orders for September, the weekly MBA Mortgage Applications Index, and the final IHS Markit Serfices PMI for October.
S&P 500 +23.3% YTD
Nasdaq Composite +21.4% YTD
Russell 2000 +19.5% YTD
Dow Jones Industrial Average +17.8% YTD
Crude futures settle slightly lower
02-Nov-21 15:25 ET
Dow +132.15 at 36045.99, Nasdaq +31.76 at 15627.67, S&P +14.81 at 4628.48
[BRIEFING.COM] The S&P 500 is up 0.3% and on track to close at another record high.
One last look at the sectors shows materials (+1.2%) as the only sector up more than 1.0%, while the energy (-1.0%), consumer discretionary (-0.6%), and utilities (-0.2%) sectors are the only groups trading lower.
WTI crude futures settled lower by 0.2%, or $0.19, to $83.86/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35913.84 +94.28 (0.26%)
Nasdaq 15595.91 +97.53 (0.63%)
SP 500 4613.67 +8.29 (0.18%)
10-yr Note -25/32 1.595
NYSE Adv 2486 Dec 857 Vol 828.4 mln
Nasdaq Adv 3378 Dec 1192 Vol 5.2 bln
Industry Watch
Strong: Energy, Consumer Discretionary
Weak: Information Technology, Utilities, Real Estate
Moving the Market
-- Major indices set fresh all-time highs with modest gains
-- Notable strength in the small-caps and micro-caps
-- Tesla (TSL) rises another 6% amid parabolic momentum
November begins with a trio of record closes
01-Nov-21 16:20 ET
Dow +94.28 at 35913.84, Nasdaq +97.53 at 15595.91, S&P +8.29 at 4613.67
[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.6%), and Dow Jones Industrial Average (+0.3%) rose modestly on Monday and each set intraday and closing record highs. The small-cap Russell 2000 (+2.7%) and iShares Micro-Cap ETF (IWC 151.65, +4.11, +2.8%) played catch-up with gains over 2.5%.
The muted price action in the S&P 500 was largely due to weakness in Apple (AAPL 148.96, -0.84, -0.6%), Microsoft (MSFT 329.37, -2.25, -0.7%), Amazon.com (AMZN 3318.11, -54.32, -1.6%), and Alphabet (GOOG 2875.48, -89.93, -3.0%), which account for approximately 20.5% of the S&P 500's market capitalization.
The broader market looked better, not only evident from the big gains in small-caps and micro-caps, but also the 0.8% gain in the Invesco S&P 500 Equal Weight ETF (RSP 159.02, +1.26, +0.8%). Eight of the 11 S&P 500 sectors closed higher as new money got put to work on the first day of the month.
The consumer discretionary (+1.5%) and energy (+1.6%) sectors outperformed amid an 8.5% gain in Tesla (TSLA 1208.92, +94.92, +8.5%) on no specific news and higher oil prices ($84.05/bbl, +0.52, +0.6%). The communication services, (-0.7%), information technology (-0.1%), and health care (-0.1%) sectors closed lower.
Semiconductor stocks mitigated the decline in the tech sector following On Semiconductor's (ON 54.96, +6.89, +14.3%) better-than-expected earnings report. The Philadelphia Semiconductor Index rose 1.6%.
In Washington, Congressional Progressive Caucus leader Jayapal (D-WA) said progressives will support both infrastructure bills with the addition of several other items, but Senator Manchin (D-WV) said he won't support the budget reconciliation bill without further clarity on its economic impacts.
Treasury Secretary Yellen hinted at the possibility of removing some China tariffs, and the U.S. and EU agreed to ease tariffs on steel and aluminum imports. Harley-Davidson (HOG 39.80, +3.31, +9.1%) was a beneficiary of the U.S.-EU agreement.
Separately, there wasn't a noticeable reaction to the October ISM Manufacturing Index, which decelerated modestly to 60.8% (Briefing.com consensus 60.5%) from 61.1% in September. The report continued to depict robust demand along with ongoing struggles to meet that demand due to supply chain issues.
The 2-yr yield increased two basis points to 0.51%, and the 10-yr yield increased two basis points to 1.58%. The U.S. Dollar Index fell 0.3% to 93.86.
Reviewing Monday's economic data:
The October ISM Manufacturing Index checked in at 60.8% (Briefing.com consensus 60.5%), down from 61.1% in September. A number above 50.0% is indicative of expansion. October marked the 17th straight month of expansion for the manufacturing sector.
The key takeaway from the report is still the same. Demand is strong, but manufacturers and suppliers continue to struggle to meet increasing demand levels due to a range of factors that includes record-long raw material lead times, shortages of basic materials, transportation difficulties, worker absenteeism, and difficulty filling positions.
Total construction spending declined 0.5% month-over-month in September (Briefing.com consensus +0.5%) following an upwardly revised 0.1% increase (from 0.0%) in August. Total private construction declined 0.5% month-over-month while total public construction spending decreased 0.7%.
The key takeaway from the report is the continued decline seen in new single family and multifamily construction. That is most likely the consequence of ongoing supply chain pressures and higher costs for builders that are standing in the way of building more affordable homes.
The final IHS Market Manufacturing PMI for September checked in at 58.4, down from 60.7 in the preliminary reading.
There are is no economic data of note scheduled for Tuesday.
S&P 500 +22.8% YTD
Nasdaq Composite +21.0% YTD
Russell 2000 +19.4% YTD
Dow Jones Industrial Average +17.3% YTD
Crude futures settle higher
01-Nov-21 15:30 ET
Dow +45.14 at 35864.70, Nasdaq +56.78 at 15555.16, S&P +1.42 at 4606.80
[BRIEFING.COM] The S&P 500 is up 0.1% ad on track to close at a record high.
One last look at the sector performances shows energy (+1.8%) and consumer discretionary (+0.9%) still outperforming the benchmark index amid higher oil prices and a 6.6% gain in Tesla (TSLA 1187.24, +73.69, +6.6%). The information technology (-0.3%) and communication services (-0.6%) sectors lag.
WTI crude futures settled higher by 0.6%, or $0.52, to $84.05/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35819.56 +89.08 (0.25%)
Nasdaq 15498.38 +50.27 (0.33%)
SP 500 4605.38 +8.96 (0.19%)
10-yr Note -23/32 1.597
NYSE Adv 1590 Dec 1684 Vol 1.1 bln
Nasdaq Adv 2276 Dec 2238 Vol 5.2 bln
Industry Watch
Strong: Health Care, Communication Services, Information Technology
Weak: Real Estate, Energy, Utilities, Materials
Moving the Market
-- S&P 500, Nasdaq, and Dow close at record highs in resilient, yet defensive, session
-- Apple (AAPL) and Amazon.com (AMZN) decline about 2% following earnings reports
-- The other mega-caps provided offsetting support
-- PCE inflation increased modestly in September, in-line with expectations
Large-cap indices end week at record highs
29-Oct-21 16:20 ET
Dow +89.08 at 35819.56, Nasdaq +50.27 at 15498.38, S&P +8.96 at 4605.38
[BRIEFING.COM] The S&P 500 (+0.2%) and Nasdaq Composite (+0.3%) set intraday and closing record highs on Friday in a resilient, yet defensive, session. The Dow Jones Industrial Average (+0.3%) also closed at a record high with a comparable 0.3% gain, while the Russell 2000 (-0.03%) closed fractionally lower.
The session was resilient in that the S&P 500 recouped an early 0.6% decline while weathering relatively disappointing earnings news from Apple (AAPL 149.81, -2.76, -1.8%) and Amazon.com (AMZN 3372.41, -74.16, -2.2%). Both companies missed revenue estimates and issued cautious outlooks due to persisting supply chain issues.
At the same time, a defensive mindset was manifested by notable strength in the mega-caps not named Apple or Amazon, the outperformance of the S&P 500 health care sector (+1.0%), renewed buying interest in Treasuries, and a 0.8% gain in the U.S. Dollar Index (94.11, +0.77).
The information technology (+0.4%) and communication services (+0.8%) sectors also closed higher, propped up by Microsoft (MSFT 331.62, +7.27, +2.2%), Alphabet (GOOG 2965.41, +42.83, +1.5%), Facebook (FB 323.54, +6.62, +2.1%), NVIDIA (NVDA 255.67, +6.26, +2.5%), and Netflix (NFLX 690.31, +16.26, +2.4%).
The mega-cap gains helped mitigate the negative influence from seven of the 11 S&P 500 sectors. The real estate sector (-1.2%) underperformed and was the only sector that lost more than 1.0%.
Starbucks (SBUX 106.07, -7.13, -6.3%) was another earnings loser with a 6% decline, while Dow component Chevron (CVX 114.49, +1.37, +1.2%) gained 1% after beating top and bottom-line estimates.
Treasuries saw increased demand despite the PCE Price Index being up 4.4% yr/yr in September, versus 4.2% in August. To be fair, the 0.3% m/m increase was in-line with expectations, as was the 0.2% m/m increase in the core-PCE Price Index. The latter was up 3.6% yr/yr for the fourth straight month, which supported the narrative that inflation rates could be peaking.
The 10-yr yield decreased one basis point to 1.56% after flirting with 1.63% in the wake of the PCE data. The 2-yr yield decreased one basis point to 0.49% after flirting with 0.56% intraday. WTI crude futures rose 0.9%, or $0.73, to $83.52/bbl.
Separately, the FDA authorized the Pfizer (PFE 43.74, +0.56, +1.3%)-BioNTech (BNTX 278.96, -5.02, -1.8%) COVID-19 vaccine for emergency use in children 5-11 years of age. This was the expected outcome after an FDA Advisory panel recommended the vaccine for this age group earlier this week.
Reviewing Friday's economic data:
Personal income declined 1.0% month-over-month in September (Briefing.com consensus -0.2%) with the expiration of unemployment benefits and decreases in general in government social benefits. Personal spending was up 0.6% month-over-month (Briefing.com consensus +0.4%). The PCE Price Index increased 0.3% month-over-month, as expected, and the core-PCE Price Index increased 0.2%, also in-line with estimates. On a year-over-year basis, the PCE Price Index was up 4.4%, versus 4.2% in August, and the core-PCE Price Index was up 3.6% for the fourth straight month, exuding some stickiness in inflation pressures.
The key takeaway from the report was the stickiness in inflation pressures and the recognition that the drop in income prompted consumers to spend out of savings to meet their needs and wants. The personal savings rate as a percentage of disposable personal income fell to 7.5% from 9.2%.
The final October University of Michigan Index of Consumer Sentiment increased to 71.7 (Briefing.com consensus 71.4) from the preliminary reading of 71.4. The final reading for September was 72.8.
The key takeaway from the report is the disclosure that consumers feel the most uncertainty about the year-ahead inflation rate than anytime in nearly 40 years.
The Q3 Employment Cost Index was up 1.3% (Briefing.com consensus +0.8%) following a 0.7% increase in the second quarter. Wages and salaries, which account for about 70% of compensation costs, increased 1.5%, while benefit costs, which make up the remainder of compensation costs, increased 0.9%.
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 5.3% increase in the PCE Price Index seen in the advance Q3 GDP report.
The Chicago PMI increased to 68.4 in October (Briefing.com consensus 63.1) from 64.7 in September.
Looking ahead, investors will receive the ISM Manufacturing Index for October, Construction Spending for September, and the final IHS Markit Manufacturing PMI for October on Monday.
S&P 500 +22.6% YTD
Nasdaq Composite +20.3% YTD
Dow Jones Industrial Average +17.0% YTD
Russell 2000 +16.3% YTD
FDA approves Pfizer Covid vaccine for 5-11 year-olds
29-Oct-21 15:30 ET
Dow -1.07 at 35729.41, Nasdaq -5.32 at 15442.79, S&P -4.90 at 4591.52
[BRIEFING.COM] The S&P 500 is down 0.1% and is seeing a loss of price momentum from earlier today.
A short time ago, the FDA authorized the Pfizer (PFE 43.50, +0.33, +0.8%)-BioNTech (BNTX 278.11, -5.87, -2.0%) COVID-19 vaccine for emergency use in children 5 through 11 years of age. This was the expected outcome after an FDA advisory panel recommended the vaccine earlier this week.
WTI crude futures, meanwhile, settled higher by 0.9%, or $0.73, to $83.52/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35730.48 +239.79 (0.68%)
Nasdaq 15448.11 +212.28 (1.39%)
SP 500 4596.42 +44.74 (0.98%)
10-yr Note -1/32 1.556
NYSE Adv 2241 Dec 1030 Vol 875.3 mln
Nasdaq Adv 3153 Dec 1318 Vol 5.6 bln
Industry Watch
Strong: Real Estate, Consumer Discretionary, Industrials
Weak: Communication Services
Moving the Market
-- S&P 500 and Nasdaq Composite close at record highs
-- Good earnings news rubbed off on Apple (AAPL) and Amazon.com (AMZN) in front of their earnings reports after the close
-- Infrastructure optimism
-- Weekly jobless claims declined to new post-pandemic low, while advance Q3 GDP missed expectations
S&P 500 and Nasdaq close at record highs
28-Oct-21 16:20 ET
Dow +239.79 at 35730.48, Nasdaq +212.28 at 15448.11, S&P +44.74 at 4596.42
[BRIEFING.COM] The S&P 500 (+1.0%) and Nasdaq Composite (+1.4%) rallied to record closes on Thursday, bolstered by better-than-expected earnings reports, mega-cap strength, and infrastructure optimism. The Dow Jones Industrial Average gained 0.7% while the Russell 2000 rose 2.0%. The Nasdaq also set an intraday record high.
Most companies continued to exceed expectations for the third quarter, and the good news seemed to rub off on Apple (AAPL 152.57, +3.72, +2.5%) and Amazon.com (AMZN 3446.57, +54.08, +1.6%) in front of their earnings reports after the close. Unlike yesterday, the gains were distributed beyond the mega-caps.
All 11 S&P 500 sectors closed higher with gains ranging from 0.3% (communication services) to 1.5% (real estate). The Invesco S&P 500 Equal Weight ETF (RSP 158.04, +1.59) gained 1.0% after falling 1.3% yesterday. Advancing issues outpaced declining issues by more than a 2:1 margin at the NYSE.
Dow components Merck (MRK 86.55, +5.01, +6.1%) and Caterpillar (CAT 204.09, +7.96, +4.1%) were two earnings standouts along with Ford Motor (F 16.86, +1.35, +8.7%). MasterCard (MA 333.03, -2.69, -0.8%) and Comcast (CMCSA 51.90, -0.54, -1.0%), however, failed to excite shareholders with their EPS beats.
Separately, Facebook (FB 316.92, +4.70, +1.5%) confirmed a name change to "Meta" and a ticker change to "MVRS," starting Dec. 1.
On infrastructure, President Biden announced the framework for the $1.75 trillion budget reconciliation bill that he urged Congress to support. While Democrats remained divided on the bill, investors were hopeful that an agreement could happen soon so that the House could vote on the $1 trillion bipartisan infrastructure bill.
The market also reacted positively to mixed economic data: real GDP increased at an annual rate of 2.0% in the third quarter (Briefing.com consensus 2.4%), according to the advance estimate, while initial claims were 281,000 (Briefing.com consensus 291,000) for a new post-pandemic low.
Underscoring the slowdown in the third quarter, real final sales of domestic product, which exclude the change in private inventories, were down 0.1% after increasing 8.1% in the second quarter. The silver lining, however, was that headline print was better than feared by some accounts and the news was backwards-looking.
The 2-yr yield increased two basis points to 0.50% after peaking at 1.56% overnight, and the 10-yr yield increased four basis points to 1.57%. The U.S. Dollar Index fell 0.5% to 93.37. WTI crude futures ($82.79/bbl, +0.11, +0.1%) settled little changed.
Reviewing Thursday's economic data:
The Advance Q3 GDP report indicated real GDP increased at an annual rate of 2.0% (Briefing.com consensus 2.4%), down noticeably from the 6.7% growth rate reported for the second quarter, as personal spending growth decelerated to just 1.6% from 12.0% in the second quarter. The GDP Price Deflator was up 5.7% (Briefing.com consensus 5.5%) after increasing 6.1% in the second quarter.
The key takeaway from the report is that it was weaker than meets the eye. Real final sales of domestic product, which exclude the change in private inventories, were down 0.1% after increasing 8.1% in the second quarter. That was the weakest showing since the second quarter of 2020.
For the week ending October 23, initial claims declined by 10,000 to 281,000 (Briefing.com consensus 291,000), marking the lowest level for initial claims since March 14, 2020. Continuing claims for the week ending October 16 decreased by 237,000 to 2.243 million, which was also the lowest level since March 14, 2020.
The key takeaway from the report rests in the improving trend in jobless claims, which is what should be seen when taking into account the massive number of job openings and the recurring acknowledgment of labor constraints heard from companies reporting earnings.
Pending home sales decreased 2.3% m/m in September (Briefing.com consensus 1.0%) following an unrevised 8.1% increase in August.
Looking ahead to Friday, investors will receive Personal Income and Spending for September, PCE Prices for September, the final University of Michigan Index of Consumer Sentiment for October, the Employment Cost Index for the third quarter, and the Chicago PMI for October.
S&P 500 +22.4% YTD
Nasdaq Composite +19.9% YTD
Dow Jones Industrial Average +16.7% YTD
Russell 2000 +16.4% YTD
Crude futures settle fractionally higher
28-Oct-21 15:30 ET
Dow +134.23 at 35624.92, Nasdaq +183.41 at 15419.24, S&P +33.88 at 4585.56
[BRIEFING.COM] The S&P 500 is up 0.8% and on track to close at a record high. The Russell 2000 outperforms with a 1.8% gain.
Looking at the S&P 500 sectors shows green across the board. The consumer discretionary (+1.2%), financials (+0.9%), and industrials (+0.9%) sectors are up around 1%, while the utilities (+0.1%) and consumer staples (+0.1%) sectors are up just 0.1%.
WTI crude futures settled higher by 0.1%, or $0.11, to $82.79/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35490.69 -266.19 (-0.74%)
Nasdaq 15235.83 +0.12 (0.00%)
SP 500 4551.68 -23.11 (-0.51%)
10-yr Note +25/32 1.569
NYSE Adv 925 Dec 2326 Vol 870.3 mln
Nasdaq Adv 1325 Dec 3157 Vol 6.0 bln
Industry Watch
Strong: Communication Services, Consumer Discretionary
Weak: Financials, Energy, Industrials, Materials
Moving the Market
-- Market closes lower amid growth concerns, profit-taking activity, and flush of selling interest into the close
-- Microsoft (MSFT) and Alphabet (GOOG) provided offsetting support following their earnings reports
-- Treasury yield curve flattened considerably
Stocks slump into the close
27-Oct-21 16:15 ET
Dow -266.19 at 35490.69, Nasdaq +0.12 at 15235.83, S&P -23.11 at 4551.68
[BRIEFING.COM] The S&P 500 fell 0.5% on Wednesday, pressured by growth concerns, profit-taking activity, and a flush of selling interest into the close. Microsoft (MSFT 323.17, +13.06, +4.2%) and Alphabet (GOOG 2928.55, +135.11, +4.8%) mitigated the decline with strong gains following their earnings reports.
The Nasdaq Composite (unch) was relatively unchanged, while the Dow Jones Industrial Average (-0.7%) and Russell 2000 (-1.9%) closed lower.
For a more accurate representation of the market, the Invesco S&P 500 Equal Weight ETF (RSP 156.45, -2.11) fell 1.3%, nine of the 11 S&P 500 sectors closed lower with energy (-2.9%) being the weakest link, and declining issues outpaced advancing issues by more than a 2:1 margin at the NYSE and Nasdaq.
The communication services (+1.0%) and consumer discretionary (+0.2%) sectors closed higher, largely due to Alphabet, Amazon.com (AMZN 3392.49, +16.42, +0.5%), and Tesla (TSLA 1037.86, +19.43, +1.9%).
While the S&P 500 traded flat for most of the day, growth concerns were burgeoning in the Treasury market in the form of startling curve-flattening activity. The 2-yr yield increased three basis points to 0.48% while the 10-yr yield dropped nine basis points to 1.53%. The U.S. Dollar Index declined 0.1% to 93.89.
The increase in the 2-yr yield suggested that investors continued to increase bets that the Fed would hike rates sooner than expected due to inflation. In turn, fears that the economy could be adversely affected by a policy mistake likely contributed to the price action in longer-dated yields, further exacerbated by short-covering activity.
This narrative wasn't kind to the cyclical stocks, especially bank stocks with the compression in yields. The SPDR S&P Bank ETF (KBE 54.79, -1.85) fell 3.3%, versus the 1.7% decline in the S&P 500 financials sector. Oil prices ($82.68, -1.97, -2.3%) were further pressured by bearish inventory data.
Aside from the two mega-caps, Dow components Visa (V 215.78, -16.04, -6.9%), Coca-Cola (KO 55.52, +1.05, +1.9%), McDonald's (MCD 242.73, +6.31, +2.7%), and Boeing (BA 206.61, -3.20, -1.5%) also reported earnings. V and BA closed lower, while KO and MCD closed higher.
Separately, lawmakers continued to disagree on the contents of a spending package while an FDA Advisory panel recommended the Pfizer (PFE 42.97, -0.59, -1.4%)-BioNTech (BNTX 278.77, -13.62, -4.7%) COVID-19 vaccine for children 5-11 years old.
Reviewing Wednesday's economic data:
Total durable goods orders declined 0.4% month-over-month in September (Briefing.com consensus -0.8%) and orders, excluding transportation, rose 0.4% (Briefing.com consensus +0.5%). On a year-over-year basis, total durable goods orders were up 23.4%. Excluding transportation, they were up 17.3%.
The key takeaway from the report is embedded in the line for nondefense capital goods orders, excluding aircraft, which is a proxy for business spending. That line showed a 0.8% increase on top of a 0.5% increase in August, underscoring that there was a pickup in business spending activity in September.
The Advance report for International Trade in Goods for August showed a deficit of $96.3 billion, versus a revised $88.2 billion (from $87.6 billion) in August. The Advance report for Retail Inventories for September decreased 0.2%, while the Advance report for Wholesale Inventories for September increased 1.1%.
Weekly crude oil inventories increased by 4.27 mln barrels after decreasing by 431,000 barrels during the previous week.
Looking ahead, investors will receive the advance estimate for Q3 GDP, weekly Initial and Continuing Claims, and Pending Home Sales for September on Thursday.
S&P 500 +21.2% YTD
Nasdaq Composite +18.2% YTD
Dow Jones Industrial Average +16.0% YTD
Russell 2000 +14.1% YTD
Crude futures fall amid bearish inventory data, growth concerns
27-Oct-21 15:30 ET
Dow -171.08 at 35585.80, Nasdaq +51.04 at 15286.75, S&P -9.29 at 4565.50
[BRIEFING.COM] The S&P 500 is down 0.2% to trade at session lows. On an intraday basis, the price action looks startling, but the decline is still small on an absolute basis.
One last look at the sector standings shows energy (-2.8%), financials (-1.3%), and materials (-1.3%) underperforming with losses between 1-3%, while the communication services (+1.4%), consumer discretionary (+0.4%), and information technology (+0.2%) are still trading higher.
WTI crude futures fell 2.3%, or $1.97, to $82.68/bbl amid a larger-than-expected build in weekly crude inventories (4.27 million barrels).
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35741.15 +64.13 (0.18%)
Nasdaq 15226.70 +136.51 (0.90%)
SP 500 4566.48 +21.58 (0.47%)
10-yr Note 0/32 1.632
NYSE Adv 2083 Dec 1222 Vol 805.5 mln
Nasdaq Adv 2917 Dec 1683 Vol 5.6 bln
Industry Watch
Strong: Consumer Discretionary, Materials, Energy
Weak: Financials
Moving the Market
-- S&P 500 and Dow hit all-time highs
-- Infrastructure optimism
-- Tesla (TSLA) soars 14% to over $1.0 trillion market capitalization
-- Calmer Treasury market
Market grinds out new record highs
25-Oct-21 16:20 ET
Dow +64.13 at 35741.15, Nasdaq +136.51 at 15226.70, S&P +21.58 at 4566.48
[BRIEFING.COM] The S&P 500 (+0.5%) and Dow Jones Industrial Average (+0.2%) set intraday and closing record highs on Monday, as the market continued to benefit from positive momentum in front of a big week for earnings. The Nasdaq Composite (+0.9%) and Russell 2000 (+0.9%) outperformed with roughly 1% gains.
Risk sentiment today was aided by news that Democrats could reach an agreement on their social spending package this week (setting up a vote on the $1 trillion bipartisan infrastructure bill), Tesla (TSLA 1024.86, +115.18, +12.7%) reaching a $1 trillion market capitalization on bullish news, and a calmer Treasury market.
After a shaky start, the S&P 500 ground higher throughout the day, leaving nine of the 11 S&P 500 sectors in positive territory on a closing basis. The consumer discretionary (+2.1%) and energy (+1.5%) led the advance with solid gains, while the financials (-0.1%) and utilities (-0.4%) sectors closed slightly lower.
Back to Tesla, the stock rose 13% amid the following developments: 1) Hertz Global (HTZZ 27.17, +2.48, +10.0%) announced an agreement to purchase 100,000 Tesla vehicles, 2) reports indicated that the Long Range versions of its Model X and S cars have increased by $5,000, and 3) Morgan Stanley raised its price target on the stock to $1200 from $900.
In other inflation news, Kimberly-Clark (KMB 130.05, -2.99, -2.3%) said it would continue to pass higher costs to customers, and Walt Disney (DIS 172.14, +2.59, +1.5%) is reportedly raising ticket prices for Disneyland. Kimberly-Clark lowered its full-year guidance, which weighed on its stock price.
WTI crude futures, meanwhile, tagged $85.00 per barrel early in the day before turning around and settling lower by 0.1%, or $0.04, to $83.73/bbl. Natural gas futures jumped 12.0% to $5.88/MMBtu.
In the Treasury market, shorter-dated Treasury yields paced the decline. The 2-yr yield decreased four basis points to 0.43%, and the 10-yr yield decreased two basis points to 1.64%. The U.S. Dollar Index increased 0.2% to 93.83.
Separately, PayPal (PYPL 246.88, +6.48, +2.7%) said it's not pursuing an acquisition of Pinterest (PINS 50.68, -7.38, -12.7%) right now. Facebook (FB 328.69, +4.08, +1.3%) increased 1% in front of its earnings report after the close.
Investors did not receive any economic data on Monday. Looking ahead to Tuesday, investors will receive the Conference Board's Consumer Confidence Index for October, New Home Sales for September, the FHFA Housing Price Index for August, and the S&P Case-Shiller Home Price Index for August.
S&P 500 +21.6% YTD
Nasdaq Composite +18.1% YTD
Russell 2000 +17.1% YTD
Dow Jones Industrial Average +16.8% YTD
Crude futures tag $85 then turn around
25-Oct-21 15:25 ET
Dow +44.24 at 35721.26, Nasdaq +142.14 at 15232.33, S&P +20.30 at 4565.20
[BRIEFING.COM] The S&P 500 is up 0.4% to trade slightly off prior highs but is still on track to close at a record high.
One last look at the sector perspectives shows consumer discretionary (+2.0%), energy (+1.4%), and materials (+1.1%) outperforming with gains over 1.0%. The utilities (-0.4%), financials (-0.2%), and consumer staples (-0.1%) sectors underperform with modest declines.
WTI crude futures settled lower by 0.1%, or $0.04, to $83.73/bbl after trading above $85.00 per barrel earlier in the day.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35677.02 +73.94 (0.21%)
Nasdaq 15090.19 -125.50 (-0.82%)
SP 500 4544.90 -4.88 (-0.11%)
10-yr Note +25/32 1.664
NYSE Adv 1624 Dec 1601 Vol 763.4 mln
Nasdaq Adv 1944 Dec 2540 Vol 5.6 bln
Industry Watch
Strong: Financials, Energy, Consumer Staples, Real Estate
Weak: Communication Services, Information Technology, Consumer Discretionary
Moving the Market
-- S&P 500 and Dow set all-time highs but only the Dow closes at a record high
-- American Express (AXP) carries the financials sector following its earnings report
-- Snap (SNAP) drops 27% after earnings, weighs on communication services sector
S&P 500 snaps lengthy winning streak
22-Oct-21 16:20 ET
Dow +73.94 at 35677.02, Nasdaq -125.50 at 15090.19, S&P -4.88 at 4544.90
[BRIEFING.COM] The S&P 500 eked out an intraday record high on Friday, but it closed lower by 0.1% and snapped a seven-session winning streak. The Dow Jones Industrial Average (+0.2%) set intraday and closing record highs with a modest gain, while the Nasdaq Composite (-0.8%) and Russell 2000 (-0.2%) closed lower.
The broader market looked like the Dow, as the Invesco S&P 500 Equal Weight ETF (RSP 158.51, +0.45) rose 0.3% to record highs. Seven of the 11 S&P 500 sectors closed higher, led by financials (+1.3%) with some earnings help from American Express (AXP 187.08, +9.61, +5.4%).
The communication services sector (-2.3%) was the big loser in response to Snap's (SNAP 55.14, -19.97, -26.6%) disappointing earnings report/guidance. The latter was attributed to Apple's (AAPL 148.69, -0.79, -0.5%) privacy changes and supply chain issues affecting Snap's advertising partners.
Alphabet (GOOG 2772.50, -83.11, -2.9%), Facebook (FB 324.61, -17.27, -5.1%), and to a lesser extent, Amazon.com (AMZN 3335.55, -99.46, -2.9%) were pressured by Snap's commentary. These mega-cap losses largely accounted for the underperformance of the Nasdaq.
Amazon also held back the consumer discretionary sector (-0.3%) while Intel (INTC 49.46, -6.54, -11.7%) held back the information technology sector (-0.3%) following its earnings report. INTC shares dropped nearly 12.0% amid disappointing margin guidance.
Honeywell (HON 217.40, -7.12, -3.2%), V.F. Corp (VFC 70.74, -3.33, -4.5%), and Beyond Meat (BYND 95.80, -12.82, -11.8%), among others also highlighted supply chain challenges. Honeywell and Beyond Meat provided disappointing revenue guidance.
The stock market for the most part was unfazed by the challenging economic environment. Today's action mirrored consolidation activity with investors possibly more fearful of missing out on further gains. Growth concerns were mainly manifested in Treasury market, which saw some curve-flattening activity.
The 2-yr yield rose four basis points to 0.47% amid increased expectations for the Fed to hike rates sooner than expected due to inflation. The 10-yr yield decreased two basis points to 1.66%. The U.S. Dollar Index decreased 0.2% to 93.62. WTI crude futures rose 1.6%, or $1.28, to $83.77/bbl.
Reviewing Friday's economic data:
The preliminary IHS Markit Manufacturing PMI decreased to 59.2 in October from 60.7 in September. The preliminary IHS Markit Services PMI increased to 58.2 in October from 54.9 in September.
There is no economic data scheduled for Monday.
S&P 500 +21.0% YTD
Nasdaq Composite +17.1% YTD
Dow Jones Industrial Average +16.6% YTD
Russell 2000 +16.0% YTD
WTI crude futures settle higher
22-Oct-21 15:30 ET
Dow +53.46 at 35656.54, Nasdaq -137.98 at 15077.71, S&P -8.24 at 4541.54
[BRIEFING.COM] The S&P 500 is trading lower by 0.2% and on track to snap its lengthy winning streak. Still plenty of time left, though.
One last look at the S&P 500 sectors shows financials (+1.3%), consumer staples (+0.8%), and energy (+0.7%) leading the market in gains, while the communication services (-2.4%), consumer discretionary (-0.7%), and materials (-0.1%) sectors trade lower.
WTI crude futures settled higher higher by 1.6%, or $1.28, to $83.77/bbl, reflecting persistent inflation pressures.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35603.08 -6.26 (-0.02%)
Nasdaq 15215.69 +94.02 (0.62%)
SP 500 4549.78 +13.59 (0.30%)
10-yr Note -2/32 1.684
NYSE Adv 1506 Dec 1701 Vol 829.1 mln
Nasdaq Adv 2245 Dec 2185 Vol 4.8 bln
Industry Watch
Strong: Consumer Discretionary, Information Technology, Health Care
Weak: Energy, Materials, Financials, Consumer Staples
Moving the Market
-- S&P 500 ekes out intraday and closing record highs
-- Mega-cap strength, including from Tesla (TSLA) following its earnings report
-- IBM (IBM) drops nearly 10.0% after missing revenue estimates
-- Treasury yields rise amid encouraging weekly initial and continuing claims report
S&P 500 sets intraday and closing record highs
21-Oct-21 16:20 ET
Dow -6.26 at 35603.08, Nasdaq +94.02 at 15215.69, S&P +13.59 at 4549.78
[BRIEFING.COM] There was no quit in the stock market on Thursday, as the S&P 500 (+0.3%) eked out intraday and closing record highs and extended its win streak to seven straight sessions. The Nasdaq Composite gained 0.6%, and the Russell 2000 gained 0.3%. The Dow Jones Industrial Average (-0.02%), however, closed flat.
The mega-caps were the difference makers today, featuring an earnings-driven gain in Tesla (TSLA 894.00, +28.20, +3.3%), even as interest rates moved higher. The Vanguard Mega Cap Growth ETF (MGK 249.02, +1.76) rose 0.7%, and for comparison, the Invesco S&P 500 Equal Weight ETF (RSP 158.06, +0.19) increased just 0.1%.
Tesla overcame an initial negative reaction and led the S&P 500 consumer discretionary sector (+1.4%) to a first-place finish. Every other sector, except energy (-1.8%), finished closer to their flat lines. Energy stocks followed oil prices ($82.49/bbl, -1.76, -2.1%) lower.
Shares of IBM (IBM 128.33, -13.57, -9.6%) dropped nearly 10.0% after missing revenue estimates on flat year-over-year growth. IBM dragged on the Dow, and to a lesser extent, so did Dow Inc. (DOW 59.26, -0.63, -1.1%) following its earnings report. Earnings reactions were generally mixed.
It's worth noting that the broad market firmed up into the close, as investors looked past those mixed earnings reactions, calls that the market was overextended on a short-term basis, and reports highlighting continued disagreement on infrastructure. Presumably, there were fears of missing out on a break-out rally in the S&P 500.
Demand for shorter-term and longer-term Treasuries waned, as investors digested the implications from weekly initial and continuing claims declining to their lowest levels since the start of the pandemic. Initial jobless claims were 290,000 (Briefing.com consensus 303,000), coming in below 300,000 for the second straight week.
The 2-yr yield rose five basis points to 0.43% amid increased expectations for the Fed to hike rates sooner than forecasted. The 10-yr yield rose four basis points to 1.68% amid expectations for improved economic growth. The U.S. Dollar Index increased 0.2% to 93.78.
Reviewing Thursday's economic data:
Initial claims for the week ending October 16 decreased by 6,000 to 290,000 (Briefing.com consensus 303,000). That is the second straight week they have been below 300,000 and it is the lowest level of initial claims since March 14, 2020. Continuing claims for the week ending October 9 decreased by 122,000 to 2.481 million, and that, too, was the lowest level for continuing claims since March 14, 2020.
The key takeaway from the report is that it is apt to spur elevated expectations for October nonfarm payrolls since the data for initial claims coincides with the week in which the household survey is completed for the Employment Situation Report.
Existing home sales increased 7.0% m/m in September to a seasonally adjusted annual rate of 6.29 million (Briefing.com consensus 6.05 million). Total sales in September were down 2.3% from a year ago.
The key takeaway from the report is that the median price increase was the lowest since December 2020, but even so, it continues to exceed income growth. The bottom line is that prices remain high, inventory remains tight, and first-time buyers continue to get squeezed by that dynamic.
The Conference Board's Leading Economic Index (LEI) increased 0.2% in September (Briefing.com consensus +0.5%) after increasing a downwardly revised 0.8% (from 0.9%) in August.
The Philadelphia Fed Index for October decreased to 23.8 (Briefing.com consensus 24.5) from 30.7 in September.
Looking ahead, investors will receive the preliminary IHS Markit Manufacturing and Services PMIs for October on Friday.
S&P 500 +21.1% YTD
Nasdaq Composite +18.1% YTD
Dow Jones Industrial Average +16.3% YTD
Russell 2000 +16.3% YTD
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35609.34 +152.03 (0.43%)
Nasdaq 15121.67 -7.41 (-0.05%)
SP 500 4536.19 +16.56 (0.37%)
10-yr Note 0/32 1.638
NYSE Adv 2189 Dec 1016 Vol 738.1 mln
Nasdaq Adv 2568 Dec 1862 Vol 4.1 bln
Industry Watch
Strong: Health Care, Utilities, Real Estate
Weak: Information Technology, Communication Services
Moving the Market
-- Dow hits all-time high
-- Earnings reports remain mostly better than expected
-- Strength in the value stocks, while the mega-caps consolidate
S&P 500 and Dow close just below record highs
20-Oct-21 16:20 ET
Dow +152.03 at 35609.34, Nasdaq -7.41 at 15121.67, S&P +16.56 at 4536.19
[BRIEFING.COM] The S&P 500 (+0.5%) and Dow Jones Industrial Average (+0.4%) closed just below record highs on Wednesday, with the benchmark index rising for the sixth straight day and the Dow setting an intraday record high. The Nasdaq Composite (-0.1%) declined modestly, while the Russell 2000 rose 0.6%.
Value stocks saw increased buying interest following better-than-expected earnings reports from the likes of Verizon (VZ 53.61, +1.26, +2.4%), Abbott Labs (ABT 123.31, +3.97, +3.3%), Anthem (ANTM 424.05, +30.30, +7.7%), and United Airlines (UAL 45.95, -0.27, -0.6%). UAL shares closed lower, though.
The Russell 1000 Value Index advanced 1.0% with a counter-cyclical bias, which was evident in the leadership positions from the S&P 500 health care (+1.5%), utilities (+1.6%), and real estate (+1.6%) sectors.
Conversely, the heavily-weighted information technology (-0.3%), consumer discretionary (-0.2%), and communication services (-0.2%) sectors were the only sectors that closed lower, largely due to relative weakness in the mega-cap growth stocks. The Vanguard Mega Cap Growth ETF (MGK 247.26, -0.63) fell 0.3%.
The underperformance of the mega-caps was a byproduct of some consolidation activity and relatively disappointing Q4 guidance from Netflix (NFLX 625.14, -13.86, -2.2%) and Dutch semiconductor company ASML (ASML 767.70, -33.26, -4.2%). Note, the MGK ETF entered the session up 6.8% since Oct. 4.
PayPal (PYPL 258.36, -13.34, -4.9%) was another heavily-weighted laggard following reports that the company is in talks to acquire Pinterest (PINS 62.68, +7.10, +12.8%) for $70 per share. PayPal shares fell 5%. Pinterest shares rose 13%.
Separately, the Fed's Beige Book for October harped on supply chain disruptions, labor shortages, and higher input costs affecting economic growth. On a related note, Brinker Intl. (EAT 44.21, -4.74, -9.7%) was one of the latest companies to blame higher input costs for its downside guidance.
The Treasury market was relatively quiet amid a scarcity of economic data. The 2-yr yield decreased one basis point to 0.38%, and the 10-yr yield was unchanged at 1.64%. The U.S. Dollar Index decreased 0.1% to 93.60. WTI crude futures rose 1.5%, or $1.24, to $84.25/bbl amid an unexpected draw in weekly crude inventories (431,000).
Reviewing Wednesday's economic data:
The weekly MBA Mortgage Applications Index fell 6.3% following a 0.2% increase in the prior week.
Weekly crude oil inventories decreased by 431,000 barrels after increasing by 6.09 mln barrels during the previous week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report, Existing Home Sales for September, the Philadelphia Fed Index for October, and the Conference Board's Leading Economic Index for September on Thursday.
S&P 500 +20.8% YTD
Nasdaq Composite +17.3% YTD
Dow Jones Industrial Average +16.4% YTD
Russell 2000 +16.0% YTD
Crude futures rise amid weekly inventory draw
20-Oct-21 15:30 ET
Dow +141.70 at 35599.01, Nasdaq -10.50 at 15118.58, S&P +15.20 at 4534.83
[BRIEFING.COM] The S&P 500 continues to trade higher by 0.4% amid strength in the value/counter-cyclical stocks.
One last look at the sectors shows health care (+1.5%), utilities (+1.5%), and real estate (+1.2%) leading today's advance with gains over 1.0%. Conversely, the information technology (-0.3%), consumer discretionary (-0.2%), and communication services (-0.2%) sectors trade lower amid relative weakness in the mega-caps.
WTI crude futures settled higher by 1.5%, or $1.24, to $84.25/bbl amid an unexpected draw in weekly crude inventories (431,000).
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35457.31 +198.70 (0.56%)
Nasdaq 15129.08 +107.28 (0.71%)
SP 500 4519.63 +33.17 (0.74%)
10-yr Note -1/32 1.607
NYSE Adv 1834 Dec 1372 Vol 695.0 mln
Nasdaq Adv 2706 Dec 1711 Vol 4.4 bln
Industry Watch
Strong: Health Care, Energy, Utilities
Weak: Consumer Staples, Consumer Discretionary
Moving the Market
-- S&P 500 and Nasdaq up for the fifth straight day
-- Diversified batch of earnings news
-- Mega-cap support
-- Oil prices and 10-yr yield flirting with yesterday's highs
-- Procter & Gamble (PG) warns about higher commodity and freight costs
Market extends winning streak
19-Oct-21 16:25 ET
Dow +198.70 at 35457.31, Nasdaq +107.28 at 15129.08, S&P +33.17 at 4519.63
[BRIEFING.COM] The S&P 500 (+0.7%) and Nasdaq Composite (+0.7%) both advanced 0.7% on Tuesday and extended their winning streaks to five sessions. Risk sentiment was supported by better-than-expected earnings reports from a diversified group of companies while the market continued to weather supply chain challenges.
The Dow Jones Industrial Average increased 0.6%, and the Russell 2000 increased 0.4%.
The earnings lineup included EPS beats from Johnson & Johnson (JNJ 163.87, +3.75, +2.3%), Procter & Gamble (PG 140.66, -1.68, -1.2%), Travelers (TRV 155.39, +2.51, +1.6%), Dover (DOV 167.91, +1.12, +0.7%), and Steel Dynamics (STLD 63.50, +1.08, +1.7%). P&G, however, warned about higher commodity and freight costs this fiscal year.
P&G's warning pressured shares of the company and fed into the inflation concerns that have been driving oil prices ($83.01/bbl, +0.57, +0.7%) and long-term interest rates higher. The 10-yr yield rose five basis points to 1.64%, while the 2-yr yield fell three basis points to 0.39%.
Buyers in the stock market, however, looked past inflation/supply chain headwinds and took the earnings news at face value. Ten of the 11 S&P 500 sectors closed higher, led by utilities (+1.3%), health care (+1.3%), and energy (+1.2%) with gains over 1.0%.
The consumer discretionary sector (-0.3%) was the lone holdout amid weakness in the retail stocks, including Ulta Beauty (ULTA 363.35, -43.00, -10.6%), which provided disappointing long-term financial targets.
Aside from JNJ, other heavyweights like Apple (AAPL 148.76, +2.21, +1.5%), Facebook (FB 339.99, +4.64, +1.4%), and Walmart (WMT 144.69, +3.01, +2.1%) also provided key leadership. Walmart was added the Conviction Buy List at Goldman Sachs.
Separately, the market overlooked a disappointing housing starts and building permits report for September. The report featured a 7.7% m/m decline in building permits to a seasonally adjusted annual rate of 1.555 million units (Briefing.com consensus 1.620 million).
As highlighted earlier, the Treasury yield curve steepened amid selling interest in longer-dated maturities. Bank stocks, though, underperformed on a relative basis despite the potential benefit for net interest margins. The SPDR S&P Bank ETF (KBE 55.60, +0.14, +0.3%) increased just 0.3%. The U.S. Dollar Index fell 0.2% to 93.77.
Reviewing Tuesday's economic data:
Housing starts declined 1.6% month-over-month in September to a seasonally adjusted annual rate of 1.555 million units (Briefing.com consensus 1.620 million), but were up 7.4% year-over-year. Building permits were down 7.7% month-over-month to a seasonally adjusted annual rate of 1.589 million (Briefing.com consensus 1.670 million) and were flat year-over-year.
The key takeaway from the report is that it reflects a slowdown in the pace of new construction, which is a byproduct of supply shortages, labor constraints, and high prices.
Looking ahead, investors will receive the Fed's Beige Book for October and the weekly MBA Mortgage Applications Index on Wednesday.
S&P 500 +20.3% YTD
Nasdaq Composite +17.4% YTD
Dow Jones Industrial Average +15.9% YTD
Russell 2000 +15.2% YTD
WTI crude futures settle at $83 per barrel
19-Oct-21 15:30 ET
Dow +162.89 at 35421.50, Nasdaq +102.65 at 15124.45, S&P +30.40 at 4516.86
[BRIEFING.COM] The S&P 500 is up 0.7% to trade back at session highs. The benchmark index is on pace to close higher for the fifth straight day.
One last look at the S&P 500 sectors shows health care (+1.3%), utilities (+1.3%), and energy (+1.0%) up at least 1.0%, while the consumer discretionary (-0.2%) and consumer staples (-0.01%) sectors continue to trade lower.
WTI crude futures settled higher by 0.7%, or $0.57, to $83.01/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35259.14 -35.62 (-0.10%)
Nasdaq 15021.80 +124.47 (0.84%)
SP 500 4486.48 +15.11 (0.34%)
10-yr Note -23/32 1.587
NYSE Adv 1566 Dec 1669 Vol 779.0 mln
Nasdaq Adv 2003 Dec 2432 Vol 4.1 bln
Industry Watch
Strong: Information Technology, Consumer Discretionary, Communication Services
Weak: Utilities, Health Care, Consumer Staples
Moving the Market
-- Resilient price action
-- Oil prices and interest rates back down from prior highs
-- Strength in the mega-caps
Mega-caps lift S&P 500 to a fourth straight gain
18-Oct-21 16:20 ET
Dow -35.62 at 35259.14, Nasdaq +124.47 at 15021.80, S&P +15.11 at 4486.48
[BRIEFING.COM] The S&P 500 increased 0.3% on Monday, overcoming an early 0.5% decline for its fourth straight gain. The mega-caps did the heavy lifting and drove the outperformance of the Nasdaq Composite (+0.8%). The Dow Jones Industrial Average (-0.1%) and Russell 2000 (+0.1%) finished closer to their flat lines, with the Dow in the red.
Seven of the 11 S&P 500 sectors closed higher, led by the heavily-weighted consumer discretionary (+1.2%), information technology (+0.9%), and communication services (+0.7%) sectors. Conversely, the utilities (-0.7%), health care (-0.7%), consumer staples (-0.5%), and materials (-0.1%) sectors closed lower.
The negative start was attributed to softer-than-expected data out of China (Q3 GDP, industrial production, and fixed asset management), a 1.3% m/m decline in U.S. industrial production for September (Briefing.com consensus +0.2%), and higher interest rates as oil prices broke above $83.00/bbl.
The stock market quickly recouped losses, though, as oil prices and Treasury yields backpedaled from early highs on no specific news. WTI crude futures settled higher by just 0.2%, or $0.18, to $82.44/bbl. The 10-yr yield settled higher by one basis point to 1.58% after flirting with 1.63% intraday.
The retracement in yields was a supportive factor for the growth stocks, especially the mega-caps, which padded gains in the afternoon while the broader market tracked sideways. The Vanguard Mega Cap Growth ETF (MGK 246.21, +2.51) rose 1.0%, while the Invesco S&P 500 Equal Weight ETF (RSP 155.76, +0.06, +0.04%) closed little changed.
Apple (AAPL 146.55, +1.71, +1.2%) seemed to provide an additional boost in the mega-cap trade after unveiling a new MacBook Pro, the third generation of AirPods, and a new subscription tier for Apple Music. AAPL shares rose 1.2% after being up 0.3% right before its product event.
Walt Disney (DIS 171.17, -5.29, -3.0%), however, was an individual drag on the Dow after the stock was downgraded to Equal Weight from Overweight at Barclays. The firm expressed caution in the company achieving its long-term streaming subscription guidance. Disney shares fell 3.0%.
The 2-yr yield increased two basis points to 0.42%. The U.S. Dollar Index was little changed at 93.96.
Reviewing Monday's economic data:
Total industrial production decreased 1.3% in September (Briefing.com consensus +0.2%) following a downwardly revised 0.1% decline in August (from +0.4%). The capacity utilization rate dropped to 75.2% (Briefing.com consensus 76.5%) from a downwardly revised 76.2% in August (from 76.4%).
The key takeaway from the report is that industrial production was weak in September due to the effects of Hurricane Ida and the ongoing semiconductor supply shortage.
The NAHB Housing Market Index increased to 80 in October (Briefing.com consensus 75) from 76 in September.
Looking ahead, investors will receive Housing Starts and Building Permits for September on Tuesday.
S&P 500 +19.5% YTD
Nasdaq Composite +16.6% YTD
Dow Jones Industrial Average +15.2% YTD
Russell 2000 +14.8% YTD
Crude futures pare early gains and settle slightly higher
18-Oct-21 15:30 ET
Dow -55.86 at 35238.90, Nasdaq +116.99 at 15014.32, S&P +12.92 at 4484.29
[BRIEFING.COM] The S&P 500 is up 0.3% and is vying for its fourth straight advance.
One last look at the sector performances shows information technology (+0.8%), consumer discretionary (+1.2%), and communication services (+0.5%) leading the advance amid strength in the mega-caps, while the health care (-0.7%), utilities (-0.7%), and consumer staples (-0.4%)
WTI crude futures settled higher by just 0.2%, or $0.18, to $82.44/bbl after peaking at $83.19/bbl intraday.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35294.76 +382.20 (1.09%)
Nasdaq 14897.33 +73.91 (0.50%)
SP 500 4471.37 +33.11 (0.75%)
10-yr Note -5/32 1.574
NYSE Adv 1561 Dec 1653 Vol 980.0 mln
Nasdaq Adv 1850 Dec 2461 Vol 4.4 bln
Industry Watch
Strong: Consumer Discretionary, Financials, Industrials
Weak: Consumer Staples, Utilities, Communication Services
Moving the Market
-- Upside surprise in the retail sales report for September
-- Better-than-expected earnings reports
-- S&P 500 increases distance above 50-day moving average (4437)
S&P 500 boosted by retail sales data, earnings, technical factors
15-Oct-21 16:15 ET
Dow +382.20 at 35294.76, Nasdaq +73.91 at 14897.33, S&P +33.11 at 4471.37
[BRIEFING.COM] The S&P 500 gained 0.8% on Friday, supported by an upside surprise in the retail sales report for September, better-than-expected earnings news, and improving technical factors. The Dow Jones Industrial Average rose 1.1%, while the Nasdaq Composite increased just 0.5% and the Russell 2000 fell 0.4%.
Briefly, total retail sales in September were up 0.7% m/m (Briefing.com consensus -0.3%), reflecting resilient consumer demand amid higher prices. Amazon.com (AMZN 3409.02, +109.16, +3.3%) took the news in stride, carrying the S&P 500 consumer discretionary sector (+1.8%) to a first-place finish.
The financials sector (+1.5%) was next in line amid higher Treasury yields and earnings-driven gains in Goldman Sachs (GS 406.07, +14.87, +3.8%) and Charles Schwab (SCHW 80.90, +2.79, +3.6%). The industrials sector (+1.0%) benefited from J.B. Hunt Transport's (JBHT 190.55, +15.31, +8.7%) better-than-expected earnings report.
Conversely, the counter-cyclical consumer staples (-0.2%), utilities (-0.2%), and communication services (-0.1%) sectors finished in negative territory. The latter was pressured by Facebook (FB 324.76, -3.77, -1.2%), which was added to the Tactical Underperform List at Evercore ISI.
Notably, the 10-yr yield rose six basis points to 1.58%, but that didn't upset the growth stocks too much presumably because it remained below recent highs. The Russell 1000 Growth Index (+0.8%) outpaced the Russell 1000 Value Index (+0.6%) in percentage terms.
On the technical side, the S&P 500 increased its distance above its 50-day moving average (4437) after closing above the key technical level yesterday. This positive price action was likely viewed as a good indicator among traders.
In vaccine news, an FDA advisory committee unanimously recommended Johnson & Johnson's (JNJ 161.30, +1.19, +0.7%) booster COVID-19 shot for people 18 and older. The FDA, however, is reportedly delaying a decision on Moderna's (MRNA 324.21, -7.67, -2.3%) vaccine for the 12-17 age group to review the risks of a rare heart condition.
The 2-yr yield rose five basis points to 0.40%. The U.S. Dollar Index finished little changed at 93.94. WTI crude futures rose 1.2%, or $0.98, to $82.26/bbl.
Reviewing Friday's economic data, which featured the Retail Sales report for September:
Total retail sales in September were up 0.7% month-over-month (Briefing.com consensus -0.3%) following an upwardly revised 0.9% increase (from 0.7%) in August. Excluding autos, retail sales jumped 0.8% month-over-month (Briefing.com consensus +0.4%) following an upwardly revised 2.0% increase (from 1.8%) in August.
The key takeaway from the report is the recognition that the broad-based sales increases reflect a rebound from some of the Delta-related restraint shown in August and presumably price increases that are a byproduct of supply chain constraints and higher transportation costs.
The preliminary October University of Michigan Index of Consumer Sentiment dropped to 71.4 (Briefing.com consensus 73.5) from the final reading of 72.8 for September, leaving it pinned near the lows that were registered last year following the shutdown of the economy to combat the spread of COVID.
The key takeaway from the report is the finding that confidence in economic policies is fading regardless of political affiliation, as well as across all age, income, and education subgroups.
Business inventories increased 0.6% m/m in August (Briefing.com consensus 0.7%) following an upwardly revised 0.6% increase (from +0.5%) in July.
Import prices increased 0.4% in September after decreasing 0.3% in August. Excluding oil, import prices were flat after decreasing 0.1% in August. Export prices increased 0.1% after increasing 0.4% in August. Excluding agriculture, export prices increased 0.3% after increasing a revised 0.3% (from 0.2%) in August.
Looking ahead, investors will receive Industrial Production and Capacity Utilization for September, the NAHB Housing Market Index for October, and Net Long-Term TIC Flows for August on Monday.
S&P 500 +19.0% YTD
Nasdaq Composite +15.6% YTD
Dow Jones Industrial Average +15.3% YTD
Russell 2000 +14.7% YTD
Crude futures settle above $82 per barrel
15-Oct-21 15:30 ET
Dow +403.38 at 35315.94, Nasdaq +74.77 at 14898.19, S&P +34.19 at 4472.45
[BRIEFING.COM] The S&P 500 is up 0.7% and on track to end the week with a 1.8% gain.
One last look at the sector performances shows financials (+1.7%), consumer discretionary (+1.7%), and industrials (+1.1%) up more than 1.0%, while the consumer staples (-0.4%), utilities (-0.4%), real estate (-0.3%), and communication services (-0.1%) sectors trade lower.
WTI crude futures settled higher by 1.2%, or $0.98, to $82.26/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34912.56 +534.75 (1.56%)
Nasdaq 14823.42 +251.79 (1.73%)
SP 500 4438.26 +74.46 (1.71%)
10-yr Note +2/32 1.515
NYSE Adv 2513 Dec 753 Vol 795.3 mln
Nasdaq Adv 2804 Dec 1498 Vol 4.2 bln
Industry Watch
Strong: Health Care, Information Technology, Materials
Weak: Energy
Moving the Market
-- Strong session amid positive earnings news and economic data
-- Better-than-feared PPI data for September, lower-than-expected weekly claims data
-- 10-yr yield dips
-- Retest of the S&P 500's 50-day moving average (4436)
Stocks rally as market feeds off earnings, data, and lower rates
14-Oct-21 16:15 ET
Dow +534.75 at 34912.56, Nasdaq +251.79 at 14823.42, S&P +74.46 at 4438.26
[BRIEFING.COM] The S&P 500 rallied 1.7% on Thursday, bolstered by positive earnings news, relatively encouraging economic data, and a decline in long-term interest rates. The Nasdaq Composite (+1.7%) and Dow Jones Industrial Average (+1.6%) performed comparably to the benchmark index, while Russell 2000 increased 1.4%.
The advance was steady and broad-based: all 11 S&P 500 sectors closed higher between 1.0% (consumer discretionary) and 2.4% (materials), and the Invesco S&P 500 Equal Weight ETF (RSP 155.17, +2.62) gained 1.7%. Notably, the S&P 500 reclaimed its 50-day moving average (4436) on a closing basis.
Growth stocks particularly benefited from the 10-yr yield declining by three basis points to 1.52%, which was driven by a peak-inflation sentiment following the Producer Price Index (PPI) report for September. While the year-over-year rates for PPI remained notably high, core PPI, which excludes food and energy, increased just 0.2% m/m (Briefing.com consensus +0.5%).
Value stocks drew support from better-than-expected Q3 earnings reports and from the lowest level of weekly jobless claims since the start of the pandemic. Initial jobless claims decreased by 36,000 to 293,000 (Briefing.com consensus 332,000).
The high-profile earnings winners included UnitedHealth (UNH 420.36, +16.81, +4.2%), Bank of America (BAC 45.07, +1.93, +4.5%), Morgan Stanley (MS 101.01, +2.44, +2.5%), Walgreens Boots Alliance (WBA 50.77, +3.51, +7.4%), Citigroup (C 70.80, +0.54, +0.8%), and Taiwan Semi (TSM 112.56, +2.58, +2.4%).
Taiwan Semi also provided upside Q4 revenue guidance, which served as an additional boost for the Philadelphia Semiconductor Index (+3.1%). Wells Fargo (WFC 45.31, -0.74, -1.6%) and U.S. Bancorp (USB 60.08, -1.38, -2.3%), however, struggled with losses despite beating expectations.
Separately, an FDA advisory committee unanimously recommended Moderna's (MRNA 331.88, +10.38, +3.2%) booster shot for adults 65 years and older and other high-risk adults.
The 2-yr yield decreased two basis points to 0.35%. The U.S. Dollar Index decreased 0.1% to 93.99. WTI crude futures rose 1.0%, or $0.77, to $81.28/bbl despite a sizable build in weekly crude inventories (6.09 mln barrels).
Reviewing Thursday's economic data:
The Producer Price Index for September was a bit softer than expected. The index for final demand increased 0.5% month-over-month (Briefing.com consensus +0.6%) and the index for final demand, less foods and energy, increased 0.2% (Briefing.com consensus +0.5%). On a year-over-year basis, the index for final demand was up 8.6%, versus 8.3% in August. That is the largest advance since the 12-month data were first calculated in November 2010.
The key takeaway from the report is in the Treasury market's initial response, which is muted and indicative once again that market participants are sniffing peak inflation. The 10-yr note yield is down two basis points to 1.53% (which is where it was just prior to the release).
The latest weekly initial claims report was the best since March 14, 2020. Initial claims for the week ending October 9 decreased by 36,000 to 293,000 (Briefing.com consensus 332,000). Continuing claims for the week ending October 2 decreased by 134,000 to 2.593 million, which was also the lowest since March 14, 2020.
The key takeaway from the report is that the claims figures are moving in the manner and direction they should be moving given the recurring refrain of labor shortages and the recurring reports showing that there are more than ten million job openings.
Looking ahead to Friday, investors will receive Retail Sales for September, the Empire State Manufacturing Survey for October, Import and Export Prices for September, the preliminary University of Michigan Index of Consumer Sentiment for October, and Business Inventories for August.
S&P 500 +18.2% YTD
Russell 2000 +15.2% YTD
Nasdaq Composite +15.0% YTD
Dow Jones Industrial Average +14.1% YTD
Crude futures settle higher
14-Oct-21 15:30 ET
Dow +511.89 at 34889.70, Nasdaq +242.77 at 14814.40, S&P +71.41 at 4435.21
[BRIEFING.COM] The S&P 500 is up 1.6% and continues to wrestle with its 50-day moving average (4436).
One last look at the S&P 500 sectors shows broad-based gains, led by the materials (+2.3%) and information technology (+2.2%) sectors with gains over 2.0%. The consumer discretionary sector (+0.9%) is the only sector up less than 1.0%.
WTI crude futures settled higher by 1.0%, or $0.77, to $81.28/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34377.81 -0.53 (0.00%)
Nasdaq 14571.63 +105.71 (0.73%)
SP 500 4363.80 +13.15 (0.30%)
10-yr Note +2/32 1.556
NYSE Adv 1973 Dec 1212 Vol 795.0 mln
Nasdaq Adv 2469 Dec 1825 Vol 4.0 bln
Industry Watch
Strong: Utilities, Materials, Consumer Discretionary, Information Technology, Real Estate
Weak: Financials, Energy
Moving the Market
-- Market weathers negative-sounding developments
-- Apple (AAPL) likely to cut iPhone 13 production targets due to the chip shortage, according to Bloomberg
-- Delta Air Lines (DAL) says rising fuel costs will pressure profitability
-- Treasury yield curve flattens, undercutting the financials sector
-- Mixed CPI data for September
Market overcomes negative-sounding developments
13-Oct-21 16:15 ET
Dow -0.53 at 34377.81, Nasdaq +105.71 at 14571.63, S&P +13.15 at 4363.80
[BRIEFING.COM] The S&P 500 increased 0.3% on Wednesday, overcoming an early 0.5% decline in a busy news day. The Nasdaq Composite outperformed with a 0.7% gain amid relative strength in the growth stocks. The Dow Jones Industrial Average (unch) closed flat while the Russell 2000 increased 0.3%.
Briefly, the stock market weathered negative-sounding news out of Apple (AAPL 140.91, -0.60, -0.4%) and Delta Air Lines (DAL 41.03, -2.51, -5.8%), persistent inflation pressures indicated in the Consumer Price Index (CPI) report for September, and weakness in JPMorgan Chase (JPM 161.00, -4.36, -2.6%) following its earnings report.
Nine of the 11 S&P 500 sectors closed higher, led by the utilities (+1.1%), materials (+0.8%), and consumer discretionary (+0.6%) sectors. Heavy individual support came Microsoft (MSFT 296.31, +3.43, +1.2%), Amazon.com (AMZN 3284.28, +36.95, +1.1%), and Alphabet (GOOG 2758.00, +23.74, +0.9%).
The financials (-0.6%) and energy (-0.1%) sectors were the two holdouts amid some curve-flattening activity in Treasuries and lower oil prices ($80.51/bbl, -0.11, -0.1%).
The flattening activity was driven by growth concerns stirred by Apple and Delta. Briefly, Bloomberg reported that Apple is likely to slash its iPhone 13 production target by up to 10 million units because of the chip shortage, while Delta warned that rising fuel costs will pressure its ability to remain profitable in the fourth quarter.
The 10-yr yield decreased three basis points to 1.55%, while the 2-yr yield increased two basis points to 0.37%. The U.S. Dollar Index fell 0.5% to 94.05. Interestingly, the 10-yr yield hit 1.60% in a knee-jerk reaction to the CPI report, then bottomed at 1.53% a few hours later.
Total CPI was up 0.4% m/m in September (Briefing.com consensus +0.3%), which was hotter than expected. Core CPI, which excludes food and energy, was up 0.2% m/m (Briefing.com consensus 0.3%), which was better than feared. On a year-over-year basis, they were up 5.4% and 4.0%, respectively.
Separately, the FOMC Minutes from the September meeting shed some light on how much the Fed would taper asset purchases if begun later this year. Specifically, asset purchases would be reduced on a monthly basis by $15 billion ($10 bln in Treasury securities and $5 bln in agency MBS) until the middle of 2022.
Reviewing Wednesday's economic data:
Total CPI in September was up 0.4% month-over-month (Briefing.com consensus +0.3%) following a 0.3% increase in August, and core CPI, which excludes food and energy, was up 0.2% (Briefing.com consensus +0.3%) following a 0.1% increase in August.
The key takeaway from the CPI report was the year-over-year figures, which showed persistent inflation pressures. Total CPI was up 5.4%, versus 5.3% in August, and core CPI held steady at a lofty 4.0%.
The weekly MBA Mortgage Applications Index increased 0.2% following a 6.9% decline in the prior week.
Looking ahead, investors will receive the Producer Price Index for September and the weekly Initial and Continuing Claims report on Thursday.
S&P 500 +16.2% YTD
Russell 2000 +13.5% YTD
Dow Jones Industrial Average +13.1% YTD
Nasdaq Composite +12.3% YTD
Crude futures settle fractionally lower
13-Oct-21 15:30 ET
Dow -17.57 at 34360.77, Nasdaq +80.55 at 14546.47, S&P +8.06 at 4358.71
[BRIEFING.COM] The S&P 500 is up 0.2% amid gains in ten of its 11 sectors.
No sector is up more than 1.0%, but the leaders right now are the utilities (+0.8%), consumer discretionary (+0.6%), and materials (+0.6%) sectors. The financials sector (-0.8%) remains the only sector trading lower amid the curve-flattening action in Treasuries.
WTI crude futures settled lower by 0.1%, or $0.11, to $80.51/bbl.
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Sector Investing
This board will deal primarily with the use of technical, sentiment and fundamental analysis on the various sectors of the market. It does not matter to me whether an investor is short or long any particular stock.
Charts and discussion of the various sectors will use the excellent charts from StockCharts.com:
http://www.stockcharts.com
I believe Sector Rotation throughout economic cycles as explained here can have a huge impact of stock performance:
http://stockcharts.com/charts/performance/SPSectors.html
Sector Rotation Charts Using ETF's and BP Indices
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Market Breadth Indicators Versus Major Market Charts Especially the SOX
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