Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Stocks snap losing streak, rebound broadly
09-Sep-20 16:15 ET
Dow +439.58 at 27930.47, Nasdaq +293.87 at 11141.57, S&P +67.12 at 3398.96
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 rebounded 2.0% on Wednesday amid gains across all 11 of its sectors, although the market did lose some steam into the close. The Nasdaq Composite rose 2.7% amid strength in technology stocks, while the Dow Jones Industrial Average (+1.6%) and Russell 2000 (+1.5%) underperformed.
Eight sectors advanced more than 1.0%, but the 3.4% gain in the information technology sector was the most influential given its top-weighted position in the S&P 500. Note, it was also the sector that led the market lower yesterday.
The materials (+2.6%) and consumer discretionary (+2.3%) sectors also outpaced the benchmark index, while the energy sector (+0.6%) was today's laggard despite a 3.5% gain in oil prices ($38.05/bbl, +$1.29).
Today's rebound was largely described as a technical bounce following a three-day period in which the S&P 500 fell 7% from its record high and the Nasdaq fell 10% from its record high. There were no fundamental news catalyzing the buying activity, and there were several negative-sounding headlines that the market brushed aside.
To name a few, AstraZeneca (AZN 53.64, -1.07, -2.0%) paused its COVID-19 vaccine trial in the UK due to a serious adverse reaction in a patient, there was some reported pessimism in Washington regarding another coronavirus relief package before the election, and several airlines remained cautious about the travel demand outlook.
Separately, shares of lululemon athletica (LULU 323.93, -25.87, -7.4%) and Slack (WORK 25.24, -4.08, -13.9%) fell 7% and 14%, respectively, despite providing better-than-expected earnings reports.
U.S. Treasuries ended the session mixed. The 2-yr yield declined one basis point to 0.13%, while the 10-yr yield increased two basis points to 0.70%. The U.S. Dollar Index declined 0.2% to 93.24.
Reviewing Wednesday's economic data:
July job openings increased to 6.618 mln from a revised 6.001 mln in June (from 5.889 mln).
The weekly MBA Mortgage Applications Index increased 2.9% following a 2.0% decline in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Producer Price Index for August, and Wholesale Inventories for July on Thursday.
Nasdaq Composite +24.2% YTD
S&P 500 +5.2% YTD
Dow Jones Industrial Average -2.1% YTD
Russell 2000 -8.5% YTD
Market Snapshot
Dow 27930.47 +439.58 (1.60%)
Nasdaq 11141.57 +293.87 (2.71%)
SP 500 3398.96 +67.12 (2.01%)
10-yr Note -2/32 0.698
NYSE Adv 2188 Dec 768 Vol 867.2 mln
Nasdaq Adv 2258 Dec 1058 Vol 3.5 bln
Tough day for stocks, mega-caps led retreat
08-Sep-20 16:10 ET
Dow -632.42 at 27490.89, Nasdaq -465.44 at 10847.70, S&P -95.12 at 3331.84
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 fell 2.8% on Tuesday in a broad-based retreat led by the mega-cap stocks. The Nasdaq Composite underperformed with a 4.1% decline, while the Dow Jones Industrial Average (-2.3%) and Russell 2000 (-2.0%) declined closer to 2.0%.
Today's selling was largely a continuation of last week, but unlike Friday, buyers appeared unwilling to buy the dip. Apple (AAPL 112.82, -8.14, -6.7%) and Tesla (TSLA 330.21, -88.11, -21.1%), which led the market on the way up, led the market lower today, with Tesla shareholders discontent that the S&P 500 Index Committee snubbed the stock from the benchmark index.
Tesla's 21% decline was a drag on the Nasdaq, while Apple's 7% decline pressured the large-cap indices and the S&P 500 information technology sector (-4.6%). The energy (-3.7%) and financials (-2.6%) sectors followed suit amid weaker oil prices ($36.76/bbl, -2.94, -7.4%) and lower Treasury yields, while the utilities sector (-0.6%) declined the least.
Besides concerns that the market's pullback had more room to go, investors had to contend with Democratic leadership rebuffing the Senate's $300 billion coronavirus relief bill, President Trump suggesting disincentives for U.S. companies to outsource jobs to China, and reports that China's largest semiconductor foundry could be added to a trade blacklist.
The prospect of potential retaliation on U.S. semiconductor companies was an additional drag on the Philadelphia Semiconductor Index (-4.7%). Separately, Boeing (BA 161.08, -9.97, -5.8%) provided a disappointing update, saying 787 Dreamliner production problems have slowed the pace of deliveries.
There were some notable winners, though. Nikola (NKLA 50.05, +14.50, +40.8%) and General Motors (GM 32.38, +2.38, +7.9%) formed a strategic partnership that was well-received by investors. Walt Disney (DIS 134.20, +2.21, +1.7%) was upgraded to Buy from Hold at Deutsche Bank.
U.S. Treasuries saw increased buying interest amid the decline in equities but closed off highs. The 2-yr yield declined two basis points to 0.14%, and the 10-yr yield declined four basis points to 0.68%. The U.S. Dollar Index rose 0.8% to 93.46. Oil prices were pressured by Saudi Aramco lowering its prices for buyers in Asia and the U.S. due to sluggish demand.
Reviewing Tuesday's economic data:
Consumer credit increased by $12.3 billion in July (Briefing.com consensus $12.0 billion) after increasing an upwardly revised $11.4 bln (from $8.95 billion) in June.
The key takeaway from the report is that July marked the fifth straight monthly contraction in revolving credit, which is something that hasn't happened since late 2010 - early 2011, underscoring the more restrictive credit stance adopted by lenders in the wake of the COVID shutdown and spike in unemployment.
The NFIB Small Business Optimism Index for August increased to 100.2 from 98.8 in July.
Looking ahead, investors will receive the weekly MBA Mortgage Applications Index and the JOLTS - Job Openings report for July on Wednesday.
Nasdaq Composite +20.9% YTD
S&P 500 +3.1% YTD
Dow Jones Industrial Average -3.6% YTD
Russell 2000 -9.8% YTD
Bull market finds broad participation
02-Sep-20 16:20 ET
Dow +454.84 at 29090.50, Nasdaq +116.78 at 12056.45, S&P +54.19 at 3580.84
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 rose 1.5% on Wednesday for its 22nd record close of the year, as the bull market found strong support from a wide range of equities. The Nasdaq Composite also set new records with a 1.0% gain. The Dow Jones Industrial Average rose 1.6%, and the Russell 2000 rose 0.9%.
Ten of the 11 S&P 500 sectors closed in positive territory, with gains ranging from 0.9% (information technology) to 3.1% (utilities). Only the energy sector (-0.4%) closed lower, largely due to the decline in oil prices ($41.54/bbl, -1.22, -2.9%).
Today was an impressive day not just because of the index gains, but because sentiment wasn't deterred by the profit taking in Apple (AAPL 131.40, -2.78, -2.1%), Tesla (TSLA 447.37, -27.68, -5.8%), and Zoom Video (ZM 423.56, -34.13, -7.5%).
There were no new macro catalysts to explain today's record-setting performance, so one could reasonably assume that a fear of missing out, momentum trading, coronavirus optimism, or the Fed might have continued to play key roles. On a related note, the Fed's Beige Book observed an improvement in activity for most Districts into August.
Street-high analyst calls were other positive factors. BoA Securities raised its price target on NVIDIA (NVDA 573.86, +21.02, +3.8%) to $650 from $600, Cowen raised its price target on Costco (COST 358.86, +7.48, +2.1%) to $410 from $370, and JP Morgan raised its price target on Peloton (PTON 91.06, +7.39, +8.8%) to $105 from $58.
Interestingly, optimism in the growth outlook might not have played a role in today's gains. For instance, the U.S. Treasury curve experienced some curve-flattening activity due to an uptick in longer-dated Treasuries. The 2-yr yield increased two basis points to 0.13%, while the 10-yr yield declined two basis points to 0.65%. The U.S. Dollar Index increased 0.4% to 92.67.
Some might have blamed the relatively underwhelming ADP Employment Change report, which estimated 428,000 jobs were added private-sector payrolls in August, versus the Briefing.com consensus of 1.210 million.
Reviewing Wednesday's economic data:
Factory orders in July increased 6.4% m/m (Briefing.com consensus 5.7%) following an upwardly revised 6.4% increase (from 6.2%) in June. This is the third straight monthly increase in factory orders following a 13.5% decline in April and an 11.0% decline in March.
The key takeaway from the report is the affirmation that business spending picked up in July, evidenced by a 1.9% increase in new orders for nondefense capital goods excluding aircraft that was unchanged from the Advance Durable Goods Orders report.
The ADP Employment Change Report for August showed a slowdown from the pace of rehiring activity seen in May and June. To that end, it was estimated that 428,000 jobs were added to private-sector payrolls.
The weekly MBA Mortgage Applications Index declined 2.0% following a 6.5% decline in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the ISM Non-Manufacturing Index for August, the Trade Balance report for July, and the revised Q2 Productivity and Unit Labor Costs on Thursday.
Nasdaq Composite +34.4% YTD
S&P 500 +10.8% YTD
Dow Jones Industrial Average +2.0% YTD
Russell 2000 -4.6% YTD
Market Snapshot
Dow 29090.50 +454.84 (1.59%)
Nasdaq 12056.45 +116.78 (0.98%)
SP 500 3580.84 +54.19 (1.54%)
10-yr Note +3/32 0.644
NYSE Adv 1920 Dec 1014 Vol 885.5 mln
Nasdaq Adv 1957 Dec 1353 Vol 3.9 bln
S&P 500 and Nasdaq extend record run into September
01-Sep-20 16:15 ET
Dow +215.61 at 28635.66, Nasdaq +164.21 at 11939.67, S&P +26.34 at 3526.65
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.8%) and Nasdaq Composite (+1.4%) rallied to fresh record highs on Tuesday, with the Nasdaq getting an added boost from the momentum in the mega-caps and growth stocks. The wealth spread around to the Russell 2000 (+1.1%) and Dow Jones Industrial Average (+0.8%), too.
Today's key moves were Apple (AAPL 134.18, +5.14, +4.0%) rising 4% after JPMorgan raised its price target on the stock to $150 from $115, and Zoom Video (ZM 457.69, +132.59, +40.8%) surging 40% after it crushed Q2 earnings expectations.
Apple was a major factor in today's index gains given its 7.3% weight in the S&P 500, while Zoom provided the fuel for other growth stocks like Netflix (NFLX 556.55, +26.99, +5.1%) and DocuSign (DOCU 268.80, +45.80, +20.5%). Another supporting factor was the ISM Manufacturing Index for August increasing to 56.0% (Briefing.com consensus 54.5%) from 54.2% in July.
The manufacturing data helped lift the S&P 500 materials (+2.8%) and industrials (+1.0%) sectors into positive territory with the information technology (+1.9%), communication services (+1.0%), and consumer discretionary (+1.1%) sectors. Each advanced at least 1.0%.
Conversely, the utilities (-1.1%), health care (-1.0%), and energy (-0.9%) sectors underperformed and declined around 1.0%.
Recapping some other mega-cap moves, Walmart (WMT 147.59, +8.74, +6.3%) climbed 6% after officially introducing its Walmart+ membership program. Tesla (TSLA 475.05, -23.27, -4.7%), however, was a notable holdout after the company disclosed plans to sell up to $5 billion in stock.
U.S. Treasuries ended the day higher after reclaiming overnight losses. The 2-yr yield declined two basis points to 0.11%, and the 10-yr yield declined two basis points to 0.67%. The U.S. Dollar Index increased 0.2% to 92.34 after being down 0.4% in the morning. WTI crude futures increased 0.3%, or $0.14, to $42.76/bbl.
Reviewing Tuesday's economic data:
The ISM Manufacturing Index for August increased to 56.0% (Briefing.com consensus 54.5%) from 54.2% in July. The dividing line between expansion and contraction is 50.0%. The August reading is the highest level for the index since January 2019.
The key takeaway from the report is that it is a reflection of an encouraging rebound in manufacturing activity following the sharp contraction seen in April and May.
Total construction spending increased 0.1% m/m in July (Briefing.com consensus +1.0%) on the heels of an upwardly revised 0.5% decline (from -0.7%) in June. Total private construction spending rose 0.6% and total public construction spending fell 1.3%.
Looking ahead, investors will receive the ADP Employment Change Report for August, the Fed's Beige Book, Factory Orders for July, and the weekly MBA Mortgage Applications Index, and auto and truck sales for August on Wednesday.
Nasdaq Composite +33.1% YTD
S&P 500 +9.2% YTD
Dow Jones Industrial Average +0.4% YTD
Russell 2000 -5.4% YTD
Mega-cap tech comes out strong in positive day for Nasdaq
31-Aug-20 16:15 ET
Dow -233.82 at 28420.05, Nasdaq +79.82 at 11775.46, S&P -7.70 at 3500.31
https://www.briefing.com/stock-market-update
[BRIEFING.COM] Mega-cap tech powered the Nasdaq Composite to a 0.7% gain and to new record highs on Monday. The S&P 500 set an intraday record high but declined 0.2% amid relative weakness in the broader market. The Dow Jones Industrial Average fell 0.8%, and the Russell 2000 fell 1.0%.
There was an absence of new macro developments, so the same tech-related stocks continued to set the winning pace at the expense of the cyclical stocks within the energy (-2.2%), materials (-1.5%), financials (-1.2%), and industrials (-1.2%) sectors. Declining issues outpaced advancing issues by more than a 2:1 margin at the NYSE.
Apple (AAPL 129.04, +4.23, +3.4%) and Tesla (TSLA 498.32, +55.64, +12.6%) rose 3% and 12%, respectively, as investors continued to bid shares higher following their stock splits today. Amazon (AMZN 3450.96, +49.16, +1.5%) gained 1.5% after its drone delivery unit received FAA certification.
AAPL and AMZN carried the S&P 500 information technology (+0.4%) and consumer discretionary (+0.2%) sectors into the green, but the health care (+0.3%) and utilities (+0.3%) sectors also put in a positive performance.
Interestingly, the CBOE Volatility Index climbed 15.0% to 26.41, as investors assumed some protection against a possible downturn in equities. The popular view is that a modest correction could come in September after a strong two-month performance in the S&P 500. The benchmark index ended August with an impressive 7.0% gain.
Separately, CNBC reported that a TikTok deal could be announced as soon as tomorrow. Front-runners Microsoft (MSFT 225.53, -3.38, -1.5%), Walmart (WMT 138.85, -1.45, -1.0%), and Oracle (ORCL 57.22, -0.66, -1.1%) declined at least 1.0% today.
U.S. Treasuries saw modest gains amid the underlying weakness in the stock market. The 2-yr yield declined two basis points to 0.13%, and the 10-yr yield declined four basis points to 0.69%. The U.S. Dollar Index declined 0.2% to 92.19. WTI crude futures declined 0.8%, or $0.35, to $42.62/bbl.
Investors did not receive any notable economic data on Monday. Looking ahead, investors will receive the ISM Manufacturing Index for August and Construction Spending for July on Tuesday.
Nasdaq Composite +31.2% YTD
S&P 500 +8.3% YTD
Dow Jones Industrial Average -0.4% YTD
Russell 2000 -6.4% YTD
S&P 500 notches sixth straight record high
28-Aug-20 16:15 ET
Dow +161.60 at 28653.87, Nasdaq +70.30 at 11695.64, S&P +23.46 at 3508.01
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 gained 0.7% on Friday for its sixth straight record-setting advance. The Nasdaq Composite gained 0.6% to close at a record high, the Dow Jones Industrial Average gained 0.6%, and the Russell 2000 gained 0.9%.
All 11 S&P 500 sectors closed in positive territory, with energy (+1.9%) and materials (+1.1%) rising more than 1.0%. The information technology sector (+1.0%) was next in line, but it was perhaps the most influential gainer today given its top-weighted position in the S&P 500. The health care sector (+0.2%) lagged.
In the tech space, Workday (WDAY 243.88, +27.25, +12.6%), HP Inc. (HPQ 19.85, +1.15, +6.2%), Dell (DELL 66.21, +3.78, +6.1%), and VMware (VMW 146.09, +3.19, +2.2%) stood out as earnings winners. Semiconductor stocks also chipped in a solid outing, evident by the 2.0% increase in the Philadelphia Semiconductor Index.
There was no one specific catalyst today, but investors did receive another batch of better-than-expected economic data that helped broaden out the gains.
For July, personal income increased 0.4% m/m (Briefing.com consensus -0.2%) and personal spending rose 1.9% m/m (Briefing.com consensus +1.5%). The final University of Michigan Index of Consumer Sentiment for August ticked up to 74.1 (Briefing.com consensus 72.8) from the preliminary reading of 72.8.
The data provided some fuel for the reopening stocks like casinos, airlines, cruise lines, and hotels. Shares of MGM Resorts (MGM 23.86, +1.05, +4.6%) rose nearly 5%, even as the company announced plans to lay off 18,000 furloughed employees as a result of the pandemic.
U.S. Treasuries finished mixed. The 2-yr yield was flat at 0.15%, and the 10-yr yield declined two basis points to 0.73%. The U.S. Dollar Index fell 0.7% to 92.32. WTI crude futures declined 0.1% to $42.97/bbl. The CBOE Volatility Index declined 6.2% to 22.96 after touching 26.30 at its intraday high.
Reviewing Friday's economic data:
Personal income increased 0.4% m/m in July (Briefing.com consensus -0.2%), which was much better than expected, and personal spending rose 1.9% m/m (Briefing.com consensus +1.5%), which was also much better than expected. The PCE Price Index and core-PCE Price Index both increased 0.3% m/m and were weaker than expected increases of 0.4% and 0.5%, respectively. That left the PCE Price Index up 1.0% yr/yr, versus 0.9% in June, and the core PCE Price Index up 1.3% yr/yr, versus 1.1% in June.
The key takeaway from the report is that the income gain was driven by an increase in compensation (+1.3% m/m), which more than offset a 1.7% m/m decrease in personal current transfer receipts. In other words, the income gain was driven by people returning to work as the economy reopened.
The final University of Michigan Index of Consumer Sentiment for August ticked up to 74.1 (Briefing.com consensus 72.8) from the preliminary reading of 72.8. The final reading for July was 72.5.
The key takeaway from the report is that consumer sentiment has been slow to rebound and that the incremental improvement seen has been based simply on the view that things couldn't get worse than they were at the depths of the shutdown period.
The Chicago PMI for August decreased to 51.2 from 51.9 in July.
Wholesale inventories decreased 0.1% in July following a revised 1.3% decline in June (from -1.4%).
Investors will not receive any notable economic data on Monday.
Nasdaq Composite +30.4% YTD
S&P 500 +8.6% YTD
Dow Jones Industrial Average +0.4% YTD
Russell 2000 -5.4% YTD
Market Snapshot
Dow 28653.87 +161.60 (0.57%)
Nasdaq 11695.64 +70.30 (0.60%)
SP 500 3508.01 +23.46 (0.67%)
10-yr Note +2/32 0.737
NYSE Adv 2056 Dec 914 Vol 789.0 mln
Nasdaq Adv 2176 Dec 1105 Vol 3.0 bln
Industry Watch
Strong: Information Technology, Energy, Materials, Industrials
Weak: Health Care
Moving the Market
-- Another record-setting performance
-- Gains broadened out amid better-than-expected economic data
-- Tech sector remained an influential leader
Financial stocks carry S&P 500 to new highs
27-Aug-20 16:15 ET
Dow +160.35 at 28492.27, Nasdaq -39.72 at 11625.34, S&P +5.82 at 3484.55
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 increased 0.2% on Thursday, closing at another record high and touching the 3500 level for the first time in the process. The Dow Jones Industrial Average (+0.6%) and Russell 2000 (+0.3%) performed slightly better, while the Nasdaq Composite declined 0.3% after setting an all-time high earlier in the session.
Financial stocks were among today's biggest winners, benefiting from some curve-steepening activity after Fed Chair Powell outlined a shift towards an average inflation target. Under the new framework, the Fed would allow PCE inflation to run moderately beyond 2.0% over time to make up for years when it ran below 2.0%.
From a sector perspective, the S&P 500 financials sector finished atop the standings with a 1.7% gain, followed by real estate (+1.4%), health care (+0.8%), and consumer staples (+0.6%). The communication services (-1.3%), consumer discretionary (-0.7%), and materials (-0.2%) sectors were the lone holdouts.
Other positive factors today included reports that Microsoft (MSFT 226.58, +5.43, +2.5%) and Walmart (WMT 136.63, +5.93, +4.5%) are teaming up to possibly acquire TikTok US, and Abbott Labs (ABT 111.29, +8.10, +7.9%) receiving emergency use authorization from the FDA for its $5.00, 15-minute COVID-19 antigen test.
Mega-cap growth stocks had a relatively weak outing today after an incredibly strong performance yesterday. Microsoft was an exception, of course, and so was Tesla (TSLA 2238.75, +85.58, +4.0%).
As an aside, Senate Majority Leader McConnell (R-KY) reportedly said stimulus talks remained at a stalemate, which may have been a contributing factor in the market's brief dip into negative territory around 1:00 p.m. ET. The market, however, swiftly rebounded into positive territory.
Recapping the moves in the Treasury market, the 2-yr yield finished flat at 0.16%, while the 10-yr yield increased six basis points to 0.75% as investors sold longer-dated bonds following Fed Chair Powell's speech. The U.S. Dollar Index was little changed at 93.03. WTI crude futures declined 0.8%, or $0.36, to $43.03/bbl.
Reviewing Thursday's economic data:
Initial jobless claims for the week ending August 22 were roughly in-line with expectations, decreasing by 98,000 to 1.006 million (Briefing.com consensus 1.000 million). Continuing claims for the week ending August 15 decreased by 223,000 to 14.535 million.
The key takeaway from the report is that the labor market, while recovering, is still fractured in a big way that is not conducive for strong and sustained economic growth.
The second estimate for Q2 GDP showed output decreased at an annualized rate of 31.7% (Briefing.com consensus -32.9%) versus the advance estimate of -32.9%. The GDP price index was down 2.0% (Briefing.com consensus -1.8%) versus the advance estimate of -1.8%.
The key takeaway from the report is that the upward revision doesn't change the fact that the COVID crisis triggered the biggest downturn for the U.S. economy on record.
Looking ahead, investors will receive the Personal Income and Spending report for July, the final Univ. of Michigan Index of Consumer Sentiment for August, and Wholesale Inventories for July on Friday.
Nasdaq Composite +29.6% YTD
S&P 500 +7.9% YTD
Dow Jones Industrial Average -0.2% YTD
Russell 2000 -6.2% YTD
Market Snapshot
Dow 28492.27 +160.35 (0.57%)
Nasdaq 11625.34 -39.72 (-0.34%)
SP 500 3484.55 +5.82 (0.17%)
10-yr Note -27/32 0.746
NYSE Adv 1648 Dec 1289 Vol 777.9 mln
Nasdaq Adv 1578 Dec 1760 Vol 3.5 bln
Industry Watch
Strong: Financials, Real Estate, Consumer Staples
Weak: Communication Services, Consumer Discretionary, Materials
Moving the Market
-- S&P 500 closes at another record high
-- Fed Chair Powell outlined new policy framework for an average inflation target
-- Treasury curve steepens, financial stocks outperformed
-- Mega-cap growth stocks generally underperformed
WTI crude settles lower
27-Aug-20 15:25 ET
Dow +282.90 at 28614.82, Nasdaq +14.14 at 11679.20, S&P +19.02 at 3497.75
[BRIEFING.COM] The S&P 500 is back near session highs with a 0.6% gain. The Russell 2000 is up 0.5%.
One last glance at the S&P 500 sectors shows nine trading higher and two trading lower. Financials (+2.1%), real estate (+1.6%), and health care (+1.2%) are the only groups trading above 1.0%, while the communication services (-0.9%) and consumer discretionary (-0.3%) sectors trade lower.
WTI crude futures settled lower by 0.8%, or $0.36, to $43.03/bbl.
Another day, another record high as mega-caps power rally
26-Aug-20 16:15 ET
Dow +83.48 at 28331.92, Nasdaq +198.59 at 11665.06, S&P +35.11 at 3478.73
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+1.0%) and Nasdaq Composite (+1.7%) rallied to fresh record highs on Wednesday, propelled higher by some eye-popping gains in the mega-cap stocks. The Dow Jones Industrial Average increased just 0.3%, while the Russell 2000 was left in the dust with a 0.7% decline.
Highlighting a few of the moves: Salesforce (CRM 272.32, +56.27, +26.0%) surged 26% following its earnings report, Facebook (FB 303.91, +23.09, +8.2%) rose 8% on no news, and Netflix (NFLX 547.53, +56.95, +11.6%) rose 11% on no news. Apple (AAPL 506.09, +6.79, +1.4%) and Tesla (TSLA 2153.17, +129.83, +6.4%) were fueled by a pair of Street-high price-target increases.
Consequently, today's leadership came from the S&P 500 communication services (+3.7%), information technology (+2.1%), and consumer discretionary (+1.5%) sectors, which are home to many of the mega-caps. In the afternoon, the gains broadened out to the materials (+1.0%), industrials (+0.1%), and consumer staples (+0.1%) sectors.
Notably, the market internals weren't as bullish. Declining issues outnumbered advancing issues at the NYSE and Nasdaq by a comfortable margin. The biggest laggards were found within the energy (-2.2%), utilities (-1.2%), and real estate (-0.7%) sectors.
In other developments, durable goods orders increased 11.2% m/m in July (Briefing.com consensus +3.9%), and Moderna (MRNA 70.50, +4.25, +6.4%) said its COVID-19 vaccine generated a promising immune response in ten elderly patients.
For some perspective on today's record-setting performance, the S&P 500 finished the day up 58.7% from its March 23 low, up 7.7% for the year, and 13.0% above its 200-day moving average (3079). The latter raises the risk for a technical correction, although the momentum in the market can go on for longer than expected.
U.S. Treasuries finished the day little changed. The 2-yr yield decreased one basis point to 0.15%, and the 10-yr yield increased one basis point to 0.69%. The U.S. Dollar Index declined 0.1% to 92.91. WTI crude futures increased by 0.1% to $43.39/bbl.
Reviewing Wednesday's economic data:
New orders for durable goods increased 11.2% m/m in July (Briefing.com consensus +3.9%) from an upwardly revised 7.7% (from 7.6%) in June. Excluding transportation, new orders jumped 2.4% m/m (Briefing.com consensus +1.8%) following an upwardly revised 4.0% increase (from 3.6%) in June.
The key takeaway from the report is that increased orders were seen across the manufacturing complex (other than nondefense aircraft and parts), underscoring a recovery-minded disposition in the wake of the COVID shutdown period.
The weekly MBA Mortgage Applications Index declined 6.5% following a 3.3% decrease in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the second estimate for Q2 GDP, and Pending Home Sales for July on Thursday.
Nasdaq Composite +30.0% YTD
S&P 500 +7.7% YTD
Dow Jones Industrial Average -0.7% YTD
Russell 2000 -6.5% YTD
Market Snapshot
Dow 28331.92 +83.48 (0.30%)
Nasdaq 11665.06 +198.59 (1.73%)
SP 500 3478.73 +35.11 (1.02%)
10-yr Note -1/32 0.695
NYSE Adv 1158 Dec 1809 Vol 745.0 mln
Nasdaq Adv 1432 Dec 1910 Vol 3.4 bln
Industry Watch
Strong: Information Technology, Communication Services, Consumer Discretionary, Materials
Weak: Energy, Utilities, Real Estate, Financials
Moving the Market
-- S&P 500 and Nasdaq closed at fresh record highs on back of continued mega-cap leadership
-- Upbeat earnings reports, economic data
-- Declining issues outpaced advancing issues at NYSE and Nasdaq by a comfortable margin
Bulls retain control in another record-setting session
25-Aug-20 16:15 ET
Dow -60.02 at 28248.44, Nasdaq +86.75 at 11466.47, S&P +12.34 at 3443.62
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.4%) and Nasdaq Composite (+0.8%) rose to fresh record highs on Tuesday, as the market found continued support in the mega-caps following a disappointing consumer confidence report. The Russell 2000 increased 0.2%, while the Dow Jones Industrial Average declined 0.2%.
Six of the 11 S&P 500 sectors closed higher, while five closed lower. The communication services (+1.0%), health care (+0.7%), information technology (+0.5%), and consumer discretionary (+0.5%) sectors outperformed the benchmark index, while the energy (-1.4%) and utilities (-0.9%) sectors declined the most.
Value-oriented cyclical stocks briefly outperformed growth stocks in a continuation trade from yesterday, but this trade was quickly reversed after the Conference Board's Consumer Confidence Index dropped to 84.8 in August (Briefing.com consensus 93.0) from 91.7 in July for its lowest reading since May 2014.
Presumably, there were some concerns that the decline in consumer confidence would translate to less consumer spending, absent another round of fiscal stimulus. In addition, the report overshadowed new home sales surging 13.9% m/m in July to a seasonally adjusted annual rate of 901,000 (Briefing.com consensus 787,000).
Shares of mega-cap companies like Amazon (AMZN 3346.49, +39.03, +1.2%), Facebook (FB 280.82, +9.43, +3.5%), and Alphabet (GOOG 1608.22, +20.02, +1.3%), which have performed well throughout the pandemic, posted strong gains after a slow start. Apple (AAPL 499.30, -4.13, -0.8%) was a notable exception.
In key stock news, Salesforce (CRM 216.05, +7.59, +3.6%), Amgen (AMGN 248.22, +12.65, +5.4%), and Honeywell (HON 164.53, +5.16, +3.2%) will replace Exxon Mobil (XOM 40.89, -1.33, -3.2%), Pfizer (PFE 38.41, -0.43, -1.1%), and Raytheon Technologies (RTX 60.95, -0.93, -1.5%) in the Dow 30 index prior to the open on Aug. 31.
The new entrants into the Dow saw nice gains, while those leaving declined noticeably. Note, the change was enacted to account for Apple's 4:1 stock split, as its lower price would reduce the price-weighted Dow's exposure to the technology sector.
U.S. Treasuries finished the session mostly lower, with longer-dated maturities seeing a bulk of the losses. The 2-yr yield increased one basis point to 0.16%, and the 10-yr yield increased four basis points to 0.68%. The U.S. Dollar Index declined 0.3% to 93.01. WTI crude futures rose 1.7%, or $0.72, to $43.33/bbl.
Reviewing Tuesday's economic data:
The Conference Board's Consumer Confidence Index declined to 84.8 in August (Briefing.com consensus 93.0) from a downwardly revised 91.7 (from 92.6) in July. The August reading was the lowest reading for the index since May 2014.
The key takeaway from the report is the understanding that consumers' assessment of current conditions and the short-term outlook retrenched, reflecting most likely the real economic impact of the expiration of enhanced unemployment benefits and difficult labor market conditions that will weigh on discretionary spending activity.
New home sales surged 13.9% m/m in July to a seasonally adjusted annual rate of 901,000 (Briefing.com consensus 787,000). That was the strongest pace of sales since December 2006 and noticeably higher than the pre-pandemic pace of 774,000 seen in January.
The S&P Case-Shiller Home Price Index for June increased 3.5% (Briefing.com consensus 3.6%) following a revised 3.6% increase in May (from +3.7%).
The FHFA Housing Price Index for August increased 0.9% following a revised 0.2% decline (from -0.3%).
Looking ahead, investors will receive Durable Goods Orders for July and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +27.8% YTD
S&P 500 +6.6% YTD
Dow Jones Industrial Average -1.0% YTD
Russell 2000 -5.8% YTD
Cyclically-charged Monday rally
24-Aug-20 16:15 ET
Dow +378.13 at 28308.46, Nasdaq +67.92 at 11379.72, S&P +34.12 at 3431.28
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+1.0%) and Nasdaq Composite (+0.6%) rose to new record highs on Monday, as sentiment was boosted by news the FDA approved emergency use authorization for convalescent plasma in hospitalized COVID-19 patients. The Dow Jones Industrial Average gained 1.4%, and the Russell 2000 gained 1.0%.
Cyclical stocks outperformed, as they typically do when there is any positive-sounding coronavirus update due to the prospect for a stronger recovery in these beaten-down spaces. The S&P 500 energy (+2.8%), financials (+2.3%), industrials (+1.8%), and materials (+1.7%) sectors set the performance pace.
The health care sector (-0.5%) was the only S&P 500 sector that closed lower today.
Many of the mega-cap stocks started the day rallying to fresh all-time highs, but a lack of follow-through buying interest in these names tamed the bulls and briefly took the tech-sensitive Nasdaq into negative territory. Investors bought the intraday dip, although these stocks (and the Nasdaq) closed well off session highs.
Apple (AAPL 503.43, +5.95, +1.2%), for example, was up as much as 3.6% but ended the day higher by 1.2%. Nevertheless, it was still a good day for Apple after Morgan Stanley raised its price target to a Street-high $520 from $431. Today was also the record date for the company's 4:1 stock split.
In the energy space, many oil producers temporarily closed oil refineries in the U.S. Golf Coast in anticipation of two tropical storms, one of which is expected to strengthen into a hurricane before making landfall later this week.
WTI crude futures increased 0.7%, or $0.30, to $42.61/bbl. Natural gas futures increased 1.5% to $2.612/MMBtu. Unleaded gasoline futures increased 3.9% to $1.26/gallon.
U.S. Treasuries finished near their flat lines in a muted session, suggesting bond investors were less enthused about the vaccine news. The 2-yr yield was flat at 0.15%, and the 10-yr yield increased one basis point to 0.65%. The U.S. Dollar Index increased 0.1% to 93.30.
Investors did not receive any economic data on Monday. Looking ahead, investors will receive New Home Sales for July, the Consumer Confidence Index for August, the FHFA Housing Price Index for August, and the S&P Case-Shiller Home Price Index for June on Tuesday.
Nasdaq Composite +26.8% YTD
S&P 500 +6.2% YTD
Dow Jones Industrial Average -0.8% YTD
Russell 2000 -6.0% YTD
Market Snapshot
Dow 28308.46 +378.13 (1.35%)
Nasdaq 11379.72 +67.92 (0.60%)
SP 500 3431.28 +34.12 (1.00%)
10-yr Note -2/32 0.653
NYSE Adv 2152 Dec 815 Vol 773.3 mln
Nasdaq Adv 1829 Dec 1508 Vol 3.8 bln
Industry Watch
Strong: Energy, Financials, Materials, Industrials
Weak: Health Care, Real Estate
Moving the Market
-- New highs for S&P 500 and Nasdaq
-- FDA approved emergency use authorization for convalescent plasma in hospitalized COVID-19 patients
-- Cyclical sectors outperformed
WTI crude futures rise, energy stocks follow
24-Aug-20 15:25 ET
Dow +241.47 at 28171.80, Nasdaq +22.15 at 11333.95, S&P +20.49 at 3417.65
[BRIEFING.COM] The S&P 500 is up 0.6% as nine of its 11 sectors continue to trade in the green.
Briefly, the energy (+2.0%), financials (+1.8%), materials (+1.6%), and industrials (+1.4%) sectors are up more than 1.0%, while the health care (-0.8%) and real estate (-0.3%) sectors trade lower.
WTI crude futures settled higher by 0.7%, or $0.30, to $42.61/bbl, which has been an added boost for the energy stocks.
S&P 500 Hits Fresh Record
21-Aug-20 16:15 ET
Dow +190.60 at 27930.33, Nasdaq +46.85 at 11311.80, S&P +11.65 at 3397.16
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market enjoyed another banner week, which ended with the S&P 500 (+0.3%) and Nasdaq Composite (+0.4%) at fresh record highs. The two indices gained 0.7% and 2.7% for the week, respectively. The Dow (+0.7%) outperformed today, ending the week unchanged.
While the Friday session ended on a firmly higher note, the bulk of the trading day saw the S&P 500 oscillate near its flat line. However, the technology sector (+1.2%) continued showing relative strength thanks to a big gain in Apple (AAPL 497.48, +24.38, +5.2%), which offered daylong support to the entire market.
Most of the remaining ten sectors spent the bulk of the day in negative territory, but the continued outperformance in technology emboldened some late buying elsewhere. As a result, only four sectors ended in the red with losses ranging from 0.3% (financials) to 0.6% (energy) while heavily-weighted groups like industrials (+0.3%) and consumer discretionary (+0.3%) recorded gains.
Industrials received a notable boost from Deere (DE 199.50, +8.40, +4.4%) after the company reported better than expected results for Q3 and issued net income guidance for the fiscal year. Transport stocks had a good showing, but the Dow Jones Transportation Average (+0.4%) still shed 0.2% for the week.
The consumer discretionary sector received some assistance from homebuilders after today's release of a stronger than expected Existing Home Sales report for July, which followed better than expected Housing Starts and Building Permits on Tuesday. The iShares U.S. Home Construction ETF (ITB 56.59, +1.20, +2.2%) climbed to a fresh record high.
The energy sector was the day's worst performer, surrendering 6.3% for the week. Crude oil fell $0.31, or 0.7%, to $42.31/bbl, but gained $0.26, or 0.6%, for the week.
Treasuries ended mixed with shorter tenors ending lower while the long bond outperformed. The 10-yr note ended little changed with its yield at 0.64%.
Friday's news flow was limited, as lawmakers in Washington did not get any closer to reaching a fiscal stimulus deal while trade representatives from China and the U.S. will reportedly talk in the near future.
Today's economic data was limited to Existing Home Sales for July, which soared 24.7% m/m to a seasonally adjusted annual rate of 5.86 million (Briefing.com consensus 5.39 million). That is the largest monthly increase on record, eclipsing the prior record seen in June. Total sales in July were up 8.7% from a year ago.
The key takeaway from the report is that it reflects robust demand for existing homes. That is constraining supply even further, which will be a pressure point that feeds higher prices and bolsters the prospects for new home sales.
Nasdaq Composite +26.1% YTD
S&P 500 +5.2% YTD
Dow Jones Industrial Average -2.1% YTD
Russell 2000 -6.9% YTD
Mega-caps power Nasdaq to new record
20-Aug-20 16:20 ET
Dow +46.85 at 27739.73, Nasdaq +118.49 at 11265.03, S&P +10.66 at 3385.51
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The large-cap indices closed higher on Thursday, as the upwards momentum in the mega-caps overshadowed any underlying weakness in the market. The Nasdaq Composite rallied 1.1% for another record close, while the S&P 500 (+0.3%) and Dow Jones Industrial Average (+0.2%) posted smaller gains. The Russell 2000 declined 0.5%.
The session did start on a lower note after weekly initial claims increased by 135,000 to 1.106 million (Briefing.com consensus 990,000), which fueled recovery concerns amid stalled negotiations surrounding the next coronavirus relief bill. That might have explained the clear advantage declining issues had over advancing issues at the NYSE and Nasdaq.
Overall price action, though, has become more intertwined with the constantly growing mega-cap stocks: Apple (AAPL 473.10, +10.27, +2.2%), Microsoft (MSFT 214.58, +4.88, +2.3%), Amazon (AMZN 3297.37, +36.89, +1.1%), Alphabet (GOOG 1581.75, +34.22, +2.2%), and Facebook (FB 269.01, +6.42, +2.4%), which have thrived in the precarious environment.
The big gains in these stocks today carried the information technology (+1.4%), communication services (+1.4%), and consumer discretionary (+0.1%) sectors into positive territory, and the real estate sector (+1.1%) also showed strength after underperforming yesterday.
These were the only sectors that finished higher. The energy sector fell 2.1%, but no other sector lost more than 1.0%.
Separately, Uber (UBER 31.41, +1.99, +6.8%) and Lyft (LYFT 29.76, +1.62, +5.8%) were granted a reprieve in their disputes over driver classification in California, sending shares of both companies higher by 6%. LYFT was down as much as 8.5% after the company previously announced plans to suspend California operations at midnight.
In other corporate news, Intel (INTC 49.17, +0.84, +1.7%) announced a $10 billion accelerate stock repurchase program, NVIDIA (NVDA 485.64, +0.10, unch) reported positive earnings results and upbeat revenue guidance, and Estee Lauder (EL 198.27, -14.23, -6.7%) disappointed investors with its earnings report.
U.S. Treasuries finished the day with modest gains. The 2-yr yield declined two basis points to 0.12%, and the 10-yr yield declined three basis points to 0.64%. The U.S. Dollar Index declined 0.2% to 92.74. WTI crude futures declined 0.6%, or $0.27, to $42.62/bbl.
Reviewing Thursday's economic data:
Initial claims for the week ending August 15 increased by 135,000 to 1.106 million (Briefing.com consensus 990,000). Continuing claims for the week ending August 8 decreased by 636,000 to 14.844 million.
The key takeaway from the report is that it covered the week in which the survey is conducted for the August Employment Situation Report. The jump in initial claims above 1.1 million is going to temper economists' expectations for gains in August nonfarm payrolls.
The Conference Board's Leading Economic Index (LEI) increased 1.4% m/m in July (Briefing.com consensus 1.1%) on the heels of an upwardly revised 3.0% increase (from 2.0%) in June. This was the third straight monthly increase for the index following three straight monthly declines for the February-April period.
The key takeaway from the report is that, despite three straight monthly increases, the July index level of 104.4 remains 6.6% below the 111.8 level seen in February (i.e. the pre-COVID shutdown phase).
The Philadelphia Fed Index decreased to 17.2 in August (Briefing.com consensus 21.0) from 24.1 in July.
Looking ahead, investors will receive Existing Home Sales for July on Friday.
Nasdaq Composite +26.6% YTD
S&P 500 +4.8% YTD
Dow Jones Industrial Average -2.8% YTD
Russell 2000 -6.2% YTD
Market Snapshot
Dow 27739.73 +46.85 (0.17%)
Nasdaq 11265.03 +118.49 (1.06%)
SP 500 3385.51 +10.66 (0.32%)
10-yr Note +3/32 0.652
NYSE Adv 1198 Dec 1761 Vol 706.9 mln
Nasdaq Adv 1301 Dec 1967 Vol 4.1 bln
Industry Watch
Strong: Information Technology, Real Estate, Communication Services, Consumer Discretionary
Weak: Energy, Financials, Utilities, Materials
Moving the Market
-- Mega-cap stocks outperform, while cyclical sectors lag
-- Weekly initial claims increased by 135,000 to 1.106 million (Briefing.com consensus 990,000
WTI crude settles modestly lower
20-Aug-20 15:25 ET
Dow +16.65 at 27709.53, Nasdaq +104.00 at 11250.54, S&P +7.41 at 3382.26
[BRIEFING.COM] The S&P 500 is up 0.2%, while the Nasdaq widens its advantage with a 0.9% gain.
One last look at the S&P 500 sectors shows information technology (+1.3%), communication services (+1.1%), real estate (+1.1%), and consumer discretionary (+0.2%) still trading in the green, while the energy (-1.7%), financials (-1.0%), and utilities (-0.9%) sectors lag in negative territory.
WTI crude futures settled lower by 0.6%, or $0.27, to $42.62/bbl.
Profits taken but Apple hits $2 trillion market cap
19-Aug-20 16:15 ET
Dow -85.19 at 27692.88, Nasdaq -64.38 at 11146.54, S&P -14.93 at 3374.85
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.4% on Wednesday, as investors presumably took some profits after the benchmark index set a new all-time high and Apple (AAPL 462.83, +0.58, +0.1%) reached a $2 trillion market capitalization. The Dow Jones Industrial Average lost 0.3%, and the Nasdaq Composite lost 0.6%. The Russell 2000 gained 0.2%.
All 11 S&P 500 sectors closed in negative territory as selling accelerated into the close. The real estate (-2.0%), energy (-1.2%), consumer staples (-0.7%), and consumer discretionary (-0.7%) sectors weighed on the market, while the financials sector (-0.1%) finished just below its flat line.
The day started in a slow grind higher amid an absence of new macro catalysts, which was good for the positive momentum in Apple and, in effect, the major indices. The S&P 500 was only up 0.3% at its high, and a hair below the 3400 level, before turning negative shortly after the FOMC Minutes were released at 2:00 p.m. ET.
Nothing surprising was stated in the minutes, but officials remained concerned about the economy and possibility of a protracted recovery; members discussing yield caps thought yield caps and targets would provide only modest benefits in the current environment. The latter acknowledgement supported the selling pressure in the Treasury market that left yields little changed.
The 2-yr yield was flat at 0.14%, and the 10-yr yield was flat at 0.67%. The U.S. Dollar Index rebounded 0.8% to 92.99, while gold futures pulled back 2.1% to $1970.10/oz. WTI crude futures were flat at $42.90/bbl.
In retail earnings, Target (TGT 154.22, +17.32, +12.7%) and Lowe's (LOW 158.28, +0.37, +0.2%) reported strong earnings results, but Target's 12% gain set it apart. TJX Cos. (TJX 54.36, -3.09, -5.4%) fell 5% after reporting a larger-than-expected quarterly loss.
Separately, Johnson & Johnson (JNJ 150.39, +0.30, +0.2%) agreed to acquire Momenta Pharma (MNTA 52.12, +21.31, +69.2%) for about $6.5 billion in cash, or a 70% premium to yesterday's closing price.
Wednesday's economic data was limited to the weekly MBA Mortgage Applications Index, which decreased 3.3% following a 6.8% increase in the prior week. Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Conference Board's Leading Economic Index for July, and the Philadelphia Fed Index for August on Thursday.
Nasdaq Composite +24.2% YTD
S&P 500 +4.5% YTD
Dow Jones Industrial Average -3.0% YTD
Russell 2000 -5.8% YTD
Market Snapshot
Dow 27692.88 -85.19 (-0.31%)
Nasdaq 11146.54 -64.38 (-0.57%)
SP 500 3374.85 -14.93 (-0.44%)
10-yr Note -2/32 0.688
NYSE Adv 1202 Dec 1756 Vol 766.0 mln
Nasdaq Adv 1477 Dec 1777 Vol 3.4 bln
Industry Watch
Strong: Financials
Weak: Real Estate, Consumer Staples, Energy, Consumer Discretionary
Moving the Market
-- Investors take profits following release of FOMC Minutes
-- S&P 500 sets new high, Apple (AAPL) hits $2 trillion market cap
-- Target (TGT) jumped 12% on strong earnings
WTI crude futures settled flat
19-Aug-20 15:25 ET
Dow +12.89 at 27790.96, Nasdaq -26.34 at 11184.58, S&P -4.32 at 3385.46
[BRIEFING.COM] The S&P 500 is down 0.1% amid losses in eight of its 11 sectors.
One last look at the S&P 500 sectors shows real estate (-1.7%), energy (-0.8%), and consumer staples (-0.6%) down the most, while the financials sector (+0.4%) is up the most but not by much.
WTI crude futures settled little changed at $42.90/bbl.
New highs for S&P 500 and Nasdaq
18-Aug-20 16:15 ET
Dow -66.84 at 27778.07, Nasdaq +81.12 at 11210.92, S&P +7.79 at 3389.78
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 increased 0.2% on Tuesday, setting new closing and intraday highs for the first time since February in the process. The Nasdaq Composite also set new highs with a 0.7% gain, but the Dow Jones Industrial Average (-0.2%) and Russell 2000 (-1.0%) finished in negative territory.
The new highs were reached shortly after the open on the heels of blowout earnings reports from Walmart (WMT 134.71, -0.89, -0.7%) and Home Depot (HD 285.00, -3.24, -1.1%), better-than-expected housing starts and building permits data for July, and continued upwards momentum from mega-cap stocks like Amazon (AMZN 3312.49, +130.08, +4.1%).
In sell-the-news fashion, the S&P 500, including WMT and HD, quickly descended into negative territory. An intraday rebound, however, did give the S&P 500 an incremental new high in the afternoon as investors gravitated toward mega-cap stocks within the consumer discretionary (+1.5%), communication services (+1.1%), and information technology (+0.4%) sectors.
Conversely, investors generally avoided small-caps and value-oriented stocks within the energy (-1.7%), financials (-0.7%), utilities (-0.5%), and industrials (-0.5%) sectors. Interestingly, the Dow (-0.2%) was a better representation of today's action, as declining issues did outnumber advancing issues at the NYSE and Nasdaq.
Separately, Politico reported that Senate Republicans are aiming to introduce a smaller stimulus package that will provide $300/week in enhanced unemployment, money for the USPS, and more money for small businesses. Additional fiscal support would provide investors some confidence in the large retailers sustaining their strong performances.
In other corporate news, Oracle (ORCL 55.18, +1.19, +2.2%) reportedly joined the list of companies trying to acquire TikTok US. Kohl's (KSS 20.01, -3.44, -14.7%) said it experienced a softer back-to-school selling season. Teva Pharma (TEVA 10.48, -1.11, -9.6%) is reportedly being sued by the U.S. government over alleged kickbacks violating the False Claims Act.
U.S. Treasuries finished the session slightly higher. The 2-yr yield declined one basis point to 0.14%, and the 10-yr yield declined one basis point to 0.67%. The U.S. Dollar Index fell another 0.6% to 92.30, which benefited gold futures ($2013.2/ozt, +14.50, +0.7%). WTI crude futures declined 0.2%, or $0.09, to $42.80/bbl.
Reviewing Tuesday's economic data:
Total housing starts surged 22.6% m/m in July to a seasonally adjusted annual rate of 1.496 million units (Briefing.com consensus 1.230 million) from an upwardly revised 1.220 million (from 1.186 million) in June. Building permits soared 18.8% m/m to 1.495 million (Briefing.com consensus 1.332 million) from an unrevised 1.258 million in June.
Multi-unit starts and permits drove the positive surprises, yet the key takeaway is that there was also strength in single unit starts (+8.2% m/m) and permits (+17.0% m/m), which is a reflection of strong housing demand.
Looking ahead, investors will receive the FOMC Minutes from the July 28-29 meeting and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +25.0% YTD
S&P 500 +4.9% YTD
Dow Jones Industrial Average -2.7% YTD
Russell 2000 -5.9% YTD
Market Snapshot
Dow 27778.07 -66.84 (-0.24%)
Nasdaq 11210.92 +81.12 (0.73%)
SP 500 3389.78 +7.79 (0.23%)
10-yr Note +3/32 0.668
NYSE Adv 1167 Dec 1795 Vol 770.5 mln
Nasdaq Adv 1239 Dec 2066 Vol 3.2 bln
Industry Watch
Strong: Consumer Discretionary, Information Technology, Communication Services
Weak: Energy, Real Estate, Financials, Utilities
Moving the Market
-- S&P 500 sets new all-time high for first time since Feb. 19
-- Another defensive session
-- Relative strength in Amazon (AMZN) following positive batch of retail earnings
-- Housing data better than expected
WTI crude settles slightly lower
18-Aug-20 15:25 ET
Dow -65.53 at 27779.38, Nasdaq +87.26 at 11217.06, S&P +8.97 at 3390.96
[BRIEFING.COM] The S&P 500 is up 0.3% and is on pace to close at a new record high.
One last glance at the S&P 500 sectors shows consumer discretionary (+1.5%), communication services (+1.2%), information technology (+0.4%), and consumer staples (+0.4%) trading higher, while energy (-1.8%), financials (-0.6%), and industrials (-0.5%) lag in negative territory.
WTI crude futures settled lower by 0.2%, or $0.09, to $42.80/bbl.
Nasdaq closes at new high, while S&P 500 comes up short
17-Aug-20 16:15 ET
Dow -86.11 at 27844.91, Nasdaq +110.42 at 11129.80, S&P +9.14 at 3381.99
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 increased 0.3% on Monday but came up short yet again of a record close. The Nasdaq Composite, however, did close at a new record high with a 1.0% gain, while the Dow Jones Industrial Average declined 0.3%. The Russell 2000 increased 0.5%.
While it was generally a positive start to the week, investors leaned defensively amid perceived growth concerns attributed to increased U.S.-China tensions, a lack of progress in coronavirus relief talks, and Warren Buffett's Berkshire Hathaway (BRK.B 206.78, -4.18, -2.0%) reducing positions in several bank stocks.
Illustrating the defensive bias, the S&P 500 consumer discretionary (+1.2%), real estate (+0.9%), information technology (+0.7%), and health care (+0.6%) sectors assumed today's leadership for their exposure to the mega-caps and stable businesses. Gold prices gained 2.4% to $1996.80/ozt, and longer-dated Treasuries saw an uptick in demand.
Conversely, the financials (-1.5%), energy (-0.6%), industrials (-0.5%), and utilities (-0.1%) sectors returned to their usual ways this year by closing in negative territory.
Sentiment in the financial sector was pressured after a 13F filing revealed Berkshire Hathaway decreased positions in JPMorgan Chase (JPM 99.71, -2.70, -2.6%) and Wells Fargo (WFC 24.47, -0.83, -3.3%) in the second quarter. Notably, Berkshire added a new position in Barrick Gold (GOLD 30.13, +3.14, +11.6%).
In U.S.-China news, the U.S. further restricted Huawei's access to U.S. chip technology, and President Trump signed a second executive order requiring TikTok to divest its U.S. operations in 90 days. President Trump also suggested there could still be actions against other Chinese companies, including Alibaba (BABA 256.96, +2.99, +1.2%).
In the mega-cap space, NVIDIA (NVDA 493.48, +30.92, +6.7%), Home Depot (HD 288.24, +7.69, +2.7%), and Walmart (WMT 135.60, +3.00, +2.3%) rallied to fresh all-time highs ahead of their earnings reports this week. Tesla (TSLA 1835.64, +184.93, +11.2%) also climbed to new highs with an 11% gain.
U.S. Treasuries, as previously noted, had a decent outing, particularly on the longer-end of the curve. The 2-yr yield increased two basis points to 0.15%, while the 10-yr yield declined three basis points to 0.68%. The U.S. Dollar Index declined 0.3% to 92.81. WTI crude futures gained 2.2%, or $0.89, to $42.94/bbl.
Reviewing Monday's economic data:
The NAHB Housing Market Index increased to an all-time high of 78 in August (Briefing.com consensus 74), as builders have seen, and continue to see, strong demand for new single-family homes.
The Empire State Manufacturing Survey for August declined to 3.7 (Briefing.com consensus 15.0) following the prior month's reading of 17.2.
Looking ahead, investors will receive Housing Starts and Building Permits for July on Tuesday.
Nasdaq Composite +24.0% YTD
S&P 500 +4.7% YTD
Dow Jones Industrial Average -2.4% YTD
Russell 2000 -5.0% YTD
Market Snapshot
Dow 27844.91 -86.11 (-0.31%)
Nasdaq 11129.80 +110.42 (1.00%)
SP 500 3381.99 +9.14 (0.27%)
10-yr Note +1/32 0.697
NYSE Adv 1513 Dec 1448 Vol 744.6 mln
Nasdaq Adv 1860 Dec 1487 Vol 3.1 bln
Industry Watch
Strong: Consumer Discretionary, Information Technology, Health Care, Consumer Staples
Weak: Financials, Energy, Industrials, Utilities
Moving the Market
-- S&P 500 and Nasdaq lean on positive momentum
-- Relative weakness in financial stocks
-- Defensive mindset amid ongoing U.S.-China tensions, lack of progress in coronavirus relief talks, Warren Buffett's second quarter moves
-- Relatively light trading volume
WTI crude settles higher but energy stocks lag
17-Aug-20 15:25 ET
Dow -88.75 at 27842.27, Nasdaq +115.11 at 11134.49, S&P +9.57 at 3382.42
[BRIEFING.COM] The S&P 500 continues to trade higher by 0.3%, and the Russell 2000 is up 0.4%.
One last look at the S&P 500 sectors shows the market getting solid support from the consumer discretionary (+1.3%), information technology (+0.7%), and health care (+0.6%) sectors. The financials (-1.5%), energy (-0.8%), and industrials (-0.6%) sectors flounder in negative territory.
WTI crude futures settled higher by 2.2%, or $0.89, to $42.94/bbl.
Flat session to end the week
14-Aug-20 16:15 ET
Dow +34.30 at 27931.02, Nasdaq -23.20 at 11019.38, S&P -0.58 at 3372.85
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 finished flat on Friday and traded near its flat line all session. The Dow Jones Industrial Average increased 0.1%, while the Nasdaq Composite (-0.2%) and Russell 2000 (-0.1%) closed marginally lower.
Within the S&P 500, no sector gained or lost more than 1.0%, but the cyclical groups did see modest gains following a batch of mostly positive economic data. The energy (+0.9%), industrials (+0.4%), financials (+0.3%), and materials (+0.2%) sectors outperformed, while the utilities sector declined 0.9%.
Highlighting key economic reports, retail sales increased 1.2% in July (Briefing.com consensus 1.8%) and nonfarm labor productivity jumped 7.3% (Briefing.com consensus 3.5%) in the second quarter.
In the latest coronavirus relief news, President Trump said he was ready to send $105 billion to states for pandemic resources and "additional money" to states to pay government workers. Note, Democrats are looking for $915 billion in funding for state and local governments.
Separately, Reuters reported that Saturday's trade talks between U.S. and China have been delayed due to a scheduling conflict, but both sides are still expected to recommit to a deal. China reportedly increased purchases of U.S. oil shipments.
On the corporate front, McKesson (MCK 158.67, +6.48, +4.3%) partnered with the U.S. government for COVID-19 vaccine distribution, Applied Materials (AMAT 67.62, +2.55, +3.9%) provided positive quarterly results and upbeat guidance, and Tesla (TSLA 1650.71, +29.71, +1.8%) was upgraded to the equivalent of a Hold rating at BofA Securities and Morgan Stanley.
Most U.S. Treasuries finished slightly higher. The 2-yr yield declined three basis points to 0.13%, and the 10-yr yield declined one basis point to 0.71%. The U.S. Dollar Index declined 0.3% to 93.10. WTI crude futures declined 0.5%, or $0.21, to $42.05/bbl.
Reviewing Friday's big batch of economic data:
Retail sales increased 1.2% in July (Briefing.com consensus 1.8%) after increasing a revised 8.4% (from 7.3%) in June. Excluding autos, retail sales rose 1.9% (Briefing.com consensus 1.4%) after increasing a revised 8.3% (from 7.3%) in June.
The key takeaway from the report is that while sales were shy of expectations in July, the upward revision to figures from June makes the report less disappointing on the whole.
Nonfarm business sector labor productivity jumped 7.3% in the second quarter (Briefing.com consensus 3.5%) after a revised 0.3% decrease (from -0.9%) in the first quarter. Unit labor costs increased 12.2% in the second quarter (Briefing.com consensus 5.5%) after increasing a revised 9.8% (from 5.1%) in the first quarter.
The key takeaway from the report is that while productivity improved significantly in Q2, the overall level of activity was sharply lower due to coronavirus-related shutdowns and restrictions. If sustained, the jump in labor costs could lead to some cost-push inflation.
Total industrial production increased 3.0% in July (Briefing.com consensus 2.9%) following a revised 5.7% increase (from 5.4%) in June. The capacity utilization rate improved to 70.6% (Briefing.com consensus 70.0%) from a revised rate of 68.5% (from 68.6%) in June.
The key takeaway from the report is that while total industrial production remains well below levels from a year ago, the production of motor vehicles and parts has largely recovered.
The preliminary University of Michigan Index of Consumer Sentiment for August ticked up to 72.8 (Briefing.com consensus 70.5) from the final reading of 72.5 for July.
The key takeaway from the report is that there was little overall change from the preceding period. The University of Michigan provided a table showing consumer expectations by political affiliation, which showed a stark difference in expectations among those who identify as Republican (97.4) and Democrat (45.0). Expectations of respondents identifying as Independent were essentially in the middle (66.7).
Business inventories decreased 1.1% in June (Briefing.com consensus -1.3%) following an unrevised 2.3% decline in May.
Looking ahead, investors will receive the Empire State Manufacturing Survey for August, the NAHB Housing Market Index for August, and Net Long-Term TIC Flows on Monday.
Nasdaq Composite +22.8% YTD
S&P 500 +4.4% YTD
Dow Jones Industrial Average -2.1% YTD
Russell 2000 -5.4% YTD
Market Snapshot
Dow 27931.02 +34.30 (0.12%)
Nasdaq 11019.38 -23.20 (-0.21%)
SP 500 3372.85 -0.58 (-0.02%)
10-yr Note +1/32 0.712
NYSE Adv 1464 Dec 1446 Vol 715.6 mln
Nasdaq Adv 1539 Dec 1732 Vol 3.4 bln
Industry Watch
Strong: Industrials, Energy, Financials, Materials
Weak: Utilities
Moving the Market
-- Flat session to end the week
-- Relatively positive economic data, cyclical sectors outperformed
-- Lighter-than-usual trading volume
WTI crude settles lower
14-Aug-20 15:25 ET
Dow -56.99 at 27839.73, Nasdaq -59.07 at 10983.51, S&P -9.53 at 3363.90
[BRIEFING.COM] The S&P 500 has slipped to session lows with a 0.3% decline. The Russell 2000 is down 0.2%.
One last look at the S&P 500 sectors shows the utilities sector down 1.0%, but interestingly it is the only sector up or down at least 1.0%. Evidently, there is little conviction among buyers or sellers today outside the utilities space.
WTI crude futures settled lower by 0.5%, or $0.21, to $42.05/bbl.
S&P 500 closes lower, but mega-caps limit decline
13-Aug-20 16:15 ET
Dow -80.12 at 27896.72, Nasdaq +30.27 at 11042.58, S&P -6.92 at 3373.43
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.2% on Thursday, but continued strength in the mega-cap stocks helped limit the decline. The Nasdaq Composite gained 0.3%, while the Dow Jones Industrial Average (-0.3%) and Russell 2000 (-0.2%) performed in-line with the benchmark index.
Apple (AAPL 460.04, +8.00, +1.8%) set a fresh record high in a momentum trade, helping the information technology sector (+0.04%) eke out a gain despite a pullback in the semiconductor stocks and an 11% decline in Cisco (CSCO 42.72, -5.38, -11.2%) following its disappointing quarterly guidance. The Philadelphia Semiconductor Index fell 1.1%.
The communication services sector (+0.4%) also closed higher due to its mega-cap components. Nine sectors closed lower, though, with the energy (-2.0%), real estate (-1.2%), industrials (-0.7%), and financials (-0.6%) sectors declining the most.
In key data, weekly initial claims decreased by 228,000 to 963,000 (Briefing.com consensus 1.150 mln), which was the first time since March that claims checked in below one million. This was a relatively positive development for the market, but some speculated whether it would lessen the pressure for lawmakers to reach a timely coronavirus relief bill.
A report from Politico suggested that there is little hope among negotiators of reaching a deal by September. House Speaker Pelosi (D-CA) said she will only resume talks with White House officials if they are willing to agree to at least a $2 trillion deal.
Interestingly, the S&P 500 grazed above its all-time closing high (3386.15) and matched its high from yesterday at around the 3387 level before facing selling pressure throughout the afternoon. The initial selling, albeit modest, coincided with longer-dated Treasury yields pushing toward session highs.
The 10-yr yield finished higher by five basis points to 0.72% after touching 0.65% at its low in overnight action. The 2-yr yield was flat at 0.16%. The U.S. Dollar Index declined 0.2% to 93.29. WTI crude fell 0.8%, or $0.34, to $42.26/bbl.
Reviewing Thursday's economic data, which included the weekly Initial and Continuing Claims report:
Initial claims for the week ending August 8 decreased by 228,000 to 963,000 (Briefing.com consensus 1.150 mln) from last week's revised reading of 1.191 mln (from 1.186 mln). Continuing claims for the week ending August 1 decreased by 604,000 to 15.486 mln from last week's revised reading of 16.107 mln (from 16.090 mln).
The key takeaway from the report is that it represented the first sub-one million reading in nearly five months. However, at 963,000, weekly initial claims are still about four times as large as what the market had been accustomed to prior to the surge in late March.
Import prices increased 0.7% in July, and prices, excluding oil, increased 0.2%. Export prices increased 0.8% in July, and prices, excluding agriculture, increased 0.7%.
Looking ahead, investors will receive the following reports on Friday: Retail Sales for July, preliminary Q2 productivity and unit labor costs, Industrial Production and Capacity Utilization for July, the preliminary Univ. of Michigan Index of Consumer Sentiment for August, and Business Inventories for June.
Nasdaq Composite +23.1% YTD
S&P 500 +4.4% YTD
Dow Jones Industrial Average -2.3% YTD
Russell 2000 -5.3% YTD
Market Snapshot
Dow 27896.72 -80.12 (-0.29%)
Nasdaq 11042.58 +30.27 (0.27%)
SP 500 3373.43 -6.92 (-0.20%)
10-yr Note -12/32 0.717
NYSE Adv 1204 Dec 1736 Vol 719.1 mln
Nasdaq Adv 1472 Dec 1772 Vol 3.4 bln
Industry Watch
Strong: Communication Services, Information Technology, Consumer Discretionary
Weak: Energy, Financials, Industrials, Real Estate
Moving the Market
-- S&P 500 closes lower, but mega-caps limit decline
-- Weekly initial claims decreased by 228,000 to 963,000 (Briefing.com consensus 1.150 mln) -- first time since March that claims were under one million
-- S&P 500 unable to stay above at its all-time closing high (3386.15)
-- Coronavirus relief talks remained at standstill
WTI crude settles lower, energy stocks lag
13-Aug-20 15:30 ET
Dow -80.57 at 27896.27, Nasdaq +39.33 at 11051.64, S&P -5.31 at 3375.04
[BRIEFING.COM] The S&P 500 is trading lower by 0.2%, and the Russell 2000 is trading lower by 0.4%.
One last look at the S&P 500 sectors shows energy (-1.7%), real estate (-1.0%), and financials (-0.6%) leading today's decline, while the communication services (+0.5%), consumer discretionary (+0.1%), and information technology (+0.1%) sectors trade higher.
WTI crude futures settled lower by 0.8%, or $0.34, to $42.26/bbl. The lower oil prices added pressure to the energy stocks.
Mega-caps find renewed strength, lift market
12-Aug-20 16:20 ET
Dow +289.93 at 27976.84, Nasdaq +229.42 at 11012.31, S&P +46.66 at 3380.35
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 gained 1.4% on Wednesday and came within a few points of closing at a new record high amid renewed strength in the mega-caps. The Nasdaq Composite set the performance pace with a 2.1% gain. The Dow Jones Industrial Average increased 1.1%, and the Russell 2000 increased 0.5%.
After leading yesterday's decline, the mega-caps returned to usual form with a strong rebound. Apple (AAPL 452.04, +14.54, +3.3%) rose 3%; Tesla (TSLA 1554.76, +180.37, +13.1%) surged 13% after announcing a 5:1 stock split; and NVIDIA (NVDA 457.61, +23.61, +5.4%) rose 5% after its price target was raised to a Street-high of $540 from $450 at Cascend Securities.
The mega-cap stocks carried the S&P 500 information technology (+2.3%) and consumer discretionary (+1.7%) sectors into the leadership roles today. The Philadelphia Semiconductor Index also had a strong day, rising 3.4%.
Gains broadened out to the defensive-oriented health care (+1.7%), utilities (+1.5%), real estate (+1.3%), and consumer staples (+1.3%) sectors, too. Interestingly, the financials sector (-0.3%) sat this one out after outperforming in recent sessions as part of the rotation into value and cyclical stocks.
In vaccine news, Moderna (MRNA 69.52, +0.55, +0.8%) reached a $1.525 billion deal with the U.S. government to manufacture and deliver 100 million doses of its COVID-19 vaccine. MRNA shares gained just 0.8%, though, after starting the day with an 11% gain.
Elsewhere, Treasury Secretary Mnuchin reportedly offered to resume coronavirus relief talks but Democratic congressional leadership said that administration officials remained unwilling to budge from their prior stance. The standstill did not deter trading sentiment today.
U.S. Treasuries finished little changed in a quiet session. The 2-yr yield was unchanged at 0.16%, and the 10-yr yield increased one basis point to 0.67%. The U.S. Dollar Index decreased 0.2% to 93.44. WTI crude rose 2.3%, or $0.94, to $42.60/bbl.
Reviewing Wednesday's economic data:
The Consumer Price Index (CPI) for July increased 0.6% m/m (Briefing.com consensus 0.3%) following a 0.6% increase in June. Excluding food and energy, CPI rose 0.6% m/m (Briefing.com consensus 0.2%) after a 0.2% increase in June.
The key takeaway from the report is that while it followed in the footsteps of yesterday's hotter than expected PPI report, it is unlikely to have significant policy implications, since the Fed has made it clear that discussions about a rate hike are not being conducted at this time.
The Treasury Budget showed a $63.0 bln deficit for July. The budget data is not seasonally adjusted, so the July deficit cannot be compared to the June deficit of $864.1 bln. The deficit in July 2019 was $119.7 bln.
The key takeaway from the report is that the delayed tax filing deadline prevented the July statement from showing another big deficit as outlays nearly doubled year-over-year.
The weekly MBA Mortgage Applications Index rose 6.8% following a 5.1% decline in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report and Import and Export Prices for July on Thursday.
Nasdaq Composite +22.7% YTD
S&P 500 +4.6% YTD
Dow Jones Industrial Average -2.0% YTD
Russell 2000 -5.1% YTD
Market Snapshot
Dow 27976.84 +289.93 (1.05%)
Nasdaq 11012.31 +229.42 (2.13%)
SP 500 3380.35 +46.66 (1.40%)
10-yr Note -2/32 0.667
NYSE Adv 1844 Dec 1084 Vol 770.9 mln
Nasdaq Adv 1825 Dec 1426 Vol 3.6 bln
Industry Watch
Strong: Information Technology, Consumer Discretionary, Health Care, Utilities
Weak: Financials, Energy, Industrials
Moving the Market
-- Market rebounds in mostly broad-based advance
-- Mega-caps resumed leadership roles in buy-the-dip trade
-- Value and cyclical stocks underperformed
WTI crude gains 2%
12-Aug-20 15:25 ET
Dow +343.01 at 28029.92, Nasdaq +246.92 at 11029.81, S&P +53.44 at 3387.13
[BRIEFING.COM] The S&P 500 is now up 1.6% and is vying for a new record close.
One last look at the S&P 500 sectors shows ten of the 11 groups contributing to the advance. Information technology (+2.5%), health care (+2.0%), utilities (+1.9%), and consumer discretionary (+1.8%) outperform, while the financials sector (-0.2%) sits this one out.
WTI crude futures settled higher by 2.3% (+$0.94) to $42.60/bbl.
Late selling snaps winning streak in S&P 500 and Dow
11-Aug-20 16:15 ET
Dow -104.53 at 27686.91, Nasdaq -185.53 at 10782.89, S&P -26.78 at 3333.69
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 advanced as much as 0.6% on Tuesday on the back of continued strength in the value and cyclical stocks, but broad-based selling in the last hour of trading left the benchmark index down 0.8% for the session to snap a seven-session winning streak. The Nasdaq Composite underperformed with a 1.7% decline.
The Dow Jones Industrial Average declined 0.4% after rising as much as 1.3% intraday, and the Russell 2000 declined 0.6% after rising as much as 1.2% intraday.
The late-day selling was attributed to comments from Senate Majority Leader McConnell (R-KY), who told Fox News that White House officials have yet to reconvene with congressional Democrats regarding fiscal relief for households and businesses. The news appeared to be a good excuse to tame the market as the S&P 500 came within 0.4% of its all-time high today.
Growth and defensive-oriented stocks saw increased selling that weighed on the S&P 500 information technology (-1.8%), utilities (-2.2%), real estate (-1.9%), and communication services (-1.3%) sectors. Conversely, the financials (+1.3%) and industrials (+0.5%) sectors managed to close higher due to their perceived value.
Notably, U.S. Treasuries and precious metals succumbed to sizable pullbacks. The 2-yr yield increased three basis points to 0.16%, while the 10-yr yield increased eight basis points to 0.66% -- this curve-steepening activity was a boon for the financial stocks. Gold futures fell 4.5% to $1946.90/ozt. The U.S. Dollar Index increased 0.2% to 93.72. WTI crude futures declined 0.7% to $41.66/bbl.
In other macro developments, President Trump floated the idea of cutting taxes on capital gains and middle-income families to further stimulate the economy, and Russia jumped ahead key testing stages to approve a COVID-19 vaccine. Note, it appears unlikely that Congress would approve such legislation or that people would seek out the Russian vaccine.
Separately, Qualcomm (QCOM 108.83, +2.47, +2.3%) shares bucked the negative trend in the tech space after the company reportedly won an appeal in its FTC antitrust case.
Reviewing Tuesday's economic data:
The Producer Price Index for final demand increased 0.6% in July (Briefing.com consensus 0.3%) after decreasing 0.2% in May. Excluding food and energy, the index for final demand rose 0.5% (Briefing.com consensus 0.1%) after decreasing 0.3% in May.
The key takeaway from the report is that inflation pressures at the producer level have increased, but they remain low at this time.
The NFIB Small Business Optimism Index decreased to 98.8 in July from 100.6 in June.
Looking ahead, investors will receive the Consumer Price Index for July, the Treasury Budget for July, and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +20.2% YTD
S&P 500 +3.2% YTD
Dow Jones Industrial Average -3.0% YTD
Russell 2000 -5.6% YTD
Market Snapshot
Dow 27686.91 -104.53 (-0.38%)
Nasdaq 10782.89 -185.53 (-1.69%)
SP 500 3333.69 -26.78 (-0.80%)
10-yr Note -27/32 0.636
NYSE Adv 1473 Dec 1467 Vol 956.0 mln
Nasdaq Adv 1266 Dec 1900 Vol 4.3 bln
Industry Watch
Strong: Financials, Industrials
Weak: Information Technology, Utilities, Real Estate, Communication Services
Moving the Market
-- Late-day selling takes market lower, snapping winning streaks in S&P 500 and Dow
-- Value and cyclical stocks outperformed, growth stocks lagged
-- Treasury yields rose in curve-steepening trade
-- President Trump floated idea of tax cuts on capital gains, middle-income families; Russia approved COVID-19 vaccine
WTI crude settles lower, stock market turns negative
11-Aug-20 15:25 ET
Dow +16.65 at 27808.09, Nasdaq -120.80 at 10847.62, S&P -14.45 at 3346.02
[BRIEFING.COM] The market has succumbed to some late-day selling in the final hour of trading. The S&P 500 is down 0.4%, with some attributing the decline to comments from lawmakers that stimulus talks have yet to resume between both sides.
One last look at the S&P 500 sectors shows information technology (-1.1%), utilities (-1.9%), real estate (-1.5%), and communication services (-0.8%) leading the decline, while the financials (+1.7%), industrials (+0.8%), and energy (+0.3%) sectors still trade higher.
WTI crude futures settled lower by 0.7%, or $0.29, to $41.66/bbl.
Another Strong Day for the mega-caps
06-Aug-20 16:20 ET
Dow +185.46 at 27386.98, Nasdaq +109.67 at 11108.14, S&P +21.41 at 3349.18
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The mega-cap stocks did the heavy lifting on Thursday, powering the Nasdaq Composite (+1.0%) to another record close and leaving the S&P 500 (+0.6%) within 1.5% of its all-time high. The Dow Jones Industrial Average gained 0.7%, while the small-cap Russell 2000 declined 0.1%.
Look no other than to Apple (AAPL 455.61, +15.36, +3.5%), Microsoft (MSFT 216.35, +3.41, +1.6%), Amazon (AMZN 3225.00, +19.97, +0.6%), Alphabet (GOOG 1550.10, +26.49, +1.8%), and Facebook (FB 265.28, +16.16, +6.5%) to explain today's positive bias that obscured the advantage declining issues had over the advancing issues at the NYSE and Nasdaq.
There were no specific catalysts driving the moves in these names, suggesting that investors were simply chasing these stocks higher due to their strong balance sheets, growth prospects, and dominance in their respective markets. These stocks also awakened a flat-trading market in the afternoon.
Unsurprisingly, the S&P 500 communication services (+2.5%), information technology (+1.5%), and consumer discretionary (+0.5%) sectors advanced the most today. On the other end were the energy (-0.7%), health care (-0.6%), materials (-0.4%), and financials (-0.2%) sectors in negative territory.
In other developments, initial claims for the week ending August 1 were better than feared, decreasing by 249,000 to 1.186 million (Briefing.com consensus 1.400 million), and the U.S. lifted its advisory to avoid all international travel. The latter helped put a bid in the airline stocks.
Separately, lawmakers scheduled stimulus talks for later this evening, although it remained uncertain if a deal was going to get done by tomorrow.
Outside equities, U.S. Treasuries finished little changed, oil prices ($41.95/bbl, -0.29, -0.7%) closed lower, and precious metals continued to rally. The 2-yr yield was flat at 0.11%, and the 10-yr yield declined one basis point to 0.54%. The U.S. Dollar Index declined 0.1% to 92.77. Gold futures rose 0.9% to $2068.80/ozt, and silver futures rose 5.5% to $28.37/ozt.
Reviewing Thursday's economic data:
Initial claims for the week ending August 1 decreased by 249,000 to 1.186 million (Briefing.com consensus 1.400 million). Continuing claims for the week ending July 25 decreased by 844,000 to 16.107 million.
The key takeaway from the report is that initial claims were much better than expected, which is eye candy to a stock market moving up on relative terms. The big picture takeaway, however, is that initial claims are still running in excess of 1.1 million. That's not a good thing, as it underscores the continued perilous state of the labor market. In the same week a year ago, initial claims were 214,000.
Looking ahead, investors will receive the Employment Situation Report for July, Consumer Credit for June, and Wholesale Inventories for June on Friday.
Nasdaq Composite +23.8% YTD
S&P 500 +3.7% YTD
Dow Jones Industrial Average -4.0% YTD
Russell 2000 -7.4% YTD
Market Snapshot
Dow 27386.98 +185.46 (0.68%)
Nasdaq 11108.14 +109.67 (1.00%)
SP 500 3349.18 +21.41 (0.64%)
10-yr Note +1/32 0.539
NYSE Adv 1458 Dec 1479 Vol 791.0 mln
Nasdaq Adv 1492 Dec 1765 Vol 4.0 bln
Industry Watch
Strong: Communication Services, Information Technology, Consumer Discretionary
Weak: Health Care, Materials, Financials, Energy
Moving the Market
-- Mega-cap leadership
-- Initial claims for the week ending August 1 decreased by 249,000 to 1.186 million (Briefing.com consensus 1.400 million)
-- Coronavirus relief negotiations will reportedly continue this evening
WTI crude futures settle lower, weigh on energy stocks
06-Aug-20 15:25 ET
Dow +142.80 at 27344.32, Nasdaq +105.10 at 11103.57, S&P +18.31 at 3346.08
[BRIEFING.COM] The S&P 500 is up 0.6% and is less than 2.0% from its all-time high.
One last look at the S&P 500 sectors shows communication services (+2.6%) firmly in the lead, followed by information technology (+1.4%) and consumer discretionary (+0.7%). Conversely, the energy (-0.9%), health care (-0.8%), and financials (-0.2%) sectors lag in negative territory.
WTI crude futures setled lower by $0.29 (-0.7%) to $41.95/bbl.
Stocks keep rally going, cyclical and value stocks outperformed
05-Aug-20 16:20 ET
Dow +373.05 at 27201.52, Nasdaq +57.23 at 10998.47, S&P +21.26 at 3327.77
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 advanced 0.6% on Wednesday, as gains broadened out to many of the cyclical and value-oriented stocks. The Nasdaq Composite increased 0.5% to close at another record high, while the Dow Jones Industrial Average (+1.4%) and Russell 2000 (+1.9%) rose more than 1.0%.
Investors welcomed reports that lawmakers made progress toward the next coronavirus relief bill, a promising-sounding vaccine update from Novavax (NVAX 173.49, +16.32, +10.4%) on a Phase 1/2 trial for healthy adults ages 18-59, and the ISM Non-Manufacturing Index increasing to 58.1% in July (Briefing.com consensus 55.2%) from 57.1% in June.
The news fed into the recovery/reopening optimism that lifted the cyclical S&P 500 industrials (+2.0%), materials (+1.5%), and financials (+1.5%) sectors into the top spots today. The big move in Novavax also kept the spirit alive in other momentum trades like in Amazon (AMZN 3205.03, +66.20, +2.1%), which carried the consumer discretionary sector (+1.4%) higher.
Walt Disney (DIS 127.61, +10.32, +8.8%) was the biggest gainer within the Dow, with shares climbing 9% after impressing shareholders with strong subscriber numbers for its streaming platform. The company also reported a surprise quarterly profit.
Laggards were found primarily in the defensive-oriented utilities (-1.3%), real estate (-0.6%), and consumer staples (-0.2%) sectors. Generally, it was also a tough day for growth stocks, except Square (SQ 146.20, +9.37, +6.9%), which rallied to fresh record highs following its earnings report.
Shares of Teladoc (TDOC 202.01, -47.41, -19.0%) and Livongo Health (LVGO 128.06, -16.47, -11.4%) pulled back sharply after the companies agreed to merge in a $18.5 billion cash-and-stock deal.
U.S. Treasuries retraced a bulk of the moves from Tuesday. The 2-yr yield declined one basis point to 0.11%, while the 10-yr yield increased three basis points to 0.54%. The U.S. Dollar Index fell 0.5% to 92.89. WTI crude futures gained 1.2%, or $0.56, to $42.24/bbl, hitting a five-month high in the process.
Reviewing Wednesday's economic data:
The ISM Non-Manufacturing Index increased to 58.1% in July (Briefing.com consensus 55.2%) from 57.1% in June. This was the third straight monthly improvement and the highest reading for the index since February 2019.
The key takeaway from the report is the recognition that the Employment Index fell even as business activity improved some, which suggests a reticence on the part of employers to bring on new employees given the heightened state of uncertainty about the demand outlook.
The Trade Balance report for June showed a narrowing of the trade deficit to $50.7 billion (Briefing.com consensus -$49.3 billion) from a downwardly revised $54.8 billion (from -$54.6 billion) in May.
The key takeaway from this more dated report is that export and import activity increased in June as economies were reopening following the suppressed activity from March to May.
The ADP Employment Change report for July estimated 167,000 jobs were added private-sector payrolls (Briefing.com consensus 1.600 million), which was well below expectations.
The June trade balance report showed a deficit of $50.7 billion (Briefing.com consensus -$53.0 billion). The May deficit was revised up to $54.8 billion from $54.6 billion.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report on Thursday.
Nasdaq Composite +22.6% YTD
S&P 500 +3.0% YTD
Dow Jones Industrial Average -4.7% YTD
Russell 2000 -7.3% YTD
Market Snapshot
Dow 27201.52 +373.05 (1.39%)
Nasdaq 10998.47 +57.23 (0.52%)
SP 500 3327.77 +21.26 (0.64%)
10-yr Note -26/32 0.552
NYSE Adv 2041 Dec 923 Vol 899.5 mln
Nasdaq Adv 2201 Dec 1070 Vol 4.0 bln
Industry Watch
Strong: Financials, Materials, Industrials, Consumer Discretionary, Energy
Weak: Real Estate, Utilities, Consumer Staples
Moving the Market
-- Cyclical and value-oriented stocks outperformed, leading S&P 500 to fourth straight advance
-- Positive developments on stimulus talks, vaccine progress, earnings reports
-- Walt Disney (DIS) climbs 9% after reporting strong subscriber numbers
-- ISM Non-Manufacturing Index for July increased more than expected
WTI crude hits 5-month high
05-Aug-20 15:30 ET
Dow +316.75 at 27145.22, Nasdaq +47.06 at 10988.30, S&P +18.60 at 3325.11
[BRIEFING.COM] The S&P 500 is up 0.6% and is on pace to close higher for the fourth straight session.
One last look at the S&P 500 sectors shows eight trading higher and three trading lower. Materials (+1.8%), industrials (+1.4%), and financials (+1.6%) remain in the lead as part of the cyclical trade today, while the utilities (-1.2%), real estate (-0.7%), and consumer staples (-0.4%) sectors trade lower.
WTI crude futures hit a 5-month high but settled well off session highs with a 1.2% gain (+$0.56) at $42.24/bbl.
Stocks rise concurrently with longer-dated Treasuries
04-Aug-20 16:20 ET
Dow +164.07 at 26828.47, Nasdaq +38.37 at 10941.24, S&P +11.90 at 3306.51
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 gained 0.4% on Tuesday to close at session highs in a tight-ranged session, even as negotiations surrounding the next coronavirus relief bill remained deadlocked. The Nasdaq Composite (+0.4%) kept pace with the benchmark index to close at a record high, while the Dow Jones Industrial Average (+0.6%) and Russell 2000 (+0.7%) outperformed.
According to media reports, Treasury Secretary Mnuchin said negotiators are no closer to a deal than a week ago while Senator Perdue (R-GA) estimated that stimulus talks could last an additional two weeks. While discouraging, the broad market was not deterred by the news, as nine of the 11 S&P 500 sectors closed higher.
The energy sector rose 2.5% amid higher oil prices ($41.68/bbl, +0.66, +1.6%), followed by gains in the real estate (+1.4%), utilities (+1.4%), and materials (+1.3%) sectors. The health care (-0.5%) and financials (-0.4%) sectors were the lone holdouts.
Financial stocks were pressured by some curve-flattening activity in the Treasury market, which reflected some growth-related angst given that lawmakers remained divided over stimulus talks. The 2-yr yield increased one basis point to 0.12%, while the 10-yr yield fell five basis points to 0.52%.
Within the tech space, Microsoft (MSFT 213.29, -3.25, -1.5%) cooled off from yesterday's TikTok-driven rally, while Advanced Micro Devices (AMD 85.04, +7.37) surged 9.5% to fresh record highs. AMD shot higher after Jefferies raised its price target on the stock to $95 from $86 on a view that it will capitalize on Intel's (INTC 49.13, +0.83, +1.7%) production issues.
Gold futures ($2020.80/ozt, +$33.80, +1.7%) also rallied to new highs above $2000/ozt. The U.S. Dollar Index declined 0.1% to 93.27 after trading higher in the morning.
Tuesday's economic data was limited to the Factory Orders report for June, which increased 6.2% m/m (Briefing.com consensus 5.2%) following a downwardly revised 7.7% increase (from 8.0%) in May.
The key takeaway from the report is the affirmation that business spending picked up in June as economies reopened, evidenced by a 3.4% increase in new orders for nondefense capital goods excluding aircraft that was up slightly from the 3.3% increase noted in the Advance Durable Goods Orders report.
Looking ahead, investors will receive the ADP Employment Change Report for July, the Trade Balance report for June, and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +21.9% YTD
S&P 500 +2.3% YTD
Dow Jones Industrial Average -6.0% YTD
Russell 2000 -9.1% YTD
Market Snapshot
Dow 26828.47 +164.07 (0.62%)
Nasdaq 10941.24 +38.37 (0.35%)
SP 500 3306.51 +11.90 (0.36%)
10-yr Note +27/32 0.504
NYSE Adv 1902 Dec 1057 Vol 863.3 mln
Nasdaq Adv 1938 Dec 1288 Vol 3.9 bln
Industry Watch
Strong: Energy, Utilities, Real Estate, Consumer Discretionary
Weak: Health Care, Financials, Information Technology
Moving the Market
-- Stocks trade mixed, while Treasury market strengthens
-- Little progress on coronavirus relief bill negotiations, according to reports
Energy stocks follow oil prices higher
04-Aug-20 15:25 ET
Dow +110.91 at 26775.31, Nasdaq +1.19 at 10904.06, S&P +4.61 at 3299.22
[BRIEFING.COM] The S&P 500 is up 0.1%, while the Russell 2000 outperforms with a 0.5% gain.
One last look at the S&P 500 sectors shows energy (+2.4%), materials (+1.7%), utilities (+1.7%), and real estate (+1.3%) in the leadership positions, while the financials (-0.6%), health care (-0.7%), and information technology (-0.2%) sectors still trade lower.
WTI crude futures settled higher by 1.6% (+$0.66) to $41.68/bbl.
Apple and Microsoft led growth-oriented advance
03-Aug-20 16:10 ET
Dow +236.08 at 26664.40, Nasdaq +157.52 at 10902.87, S&P +23.49 at 3294.61
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.7%), Nasdaq Composite (+1.5%), and Dow Jones Industrial Average (+0.9%) closed higher on Monday, as Apple (AAPL 435.75, +10.71, +2.5%) and Microsoft (MSFT 216.54, +11.53, +5.6%) plowed ahead with noticeable gains. It was another record close for the Nasdaq, while the Russell 2000 outperformed with a 1.8% gain.
Microsoft rallied on news that it was continuing talks to acquire TikTok while Apple remained hot following its 10.5% earnings-driven gain from Friday. Essentially, today was a growth-oriented trade that also saw the Philadelphia Semiconductor Index rise 1.9% and the iShares NASDAQ Biotechnology ETF (IBB 138.57, +4.20) rise 3.1%.
Consequently, the information technology (+2.5%) and health care (+1.1%) sectors finished atop the sector standings, while the defensive-oriented real estate (-1.5%) and utilities (-1.1%) sectors closed lower by more than 1.0%.
Within the health care space, Goldman Sachs upgraded Merck (MRK 82.56, +2.32, +2.9%) to Buy from Neutral, Eli Lilly (LLY 152.84, +2.55, +1.7%) started a Phase 3 trial for the prevention of COVID-19 at long-term care facilities, and Varian Medical (VAR 174.11, +31.39, +22.0%) agreed to be acquired by Siemens Healthineers for $16.4 billion, or $177.50/share, in cash.
In other deal-making news, Marathon Petroleum (MPC 38.57, +0.37, +1.0%) agreed to sell its Speedway business to 7-Eleven for $21 billion in cash. ADT (ADT 13.48, +4.87, +56.6%) partnered with Alphabet's (GOOG 1474.45, -8.51, -0.6%) Google to develop a next generation smart home and security system. Google will take a 6.6% stake in ADT.
Separately, manufacturing conditions continued to improve, as the ISM Manufacturing Index for July increased to 54.2% (Briefing.com consensus 53.4%) from 52.6% in June. In Washington, lawmakers continued to negotiate the next coronavirus relief bill but did not reach an agreement on Monday.
U.S. Treasuries ended the session slightly lower. The 2-yr yield increased one basis point to 0.11%, and the 10-yr yield increased two basis points to 0.56%. The U.S. Dollar Index advanced 0.3% to 93.60. WTI crude futures rose 1.8%, or $0.72, to $41.02/bbl.
Reviewing Monday's economic data:
The ISM Manufacturing Index for July increased to 54.2% (Briefing.com consensus 53.4%) from 52.6% in June. This was the second straight month the index has been above 50.0% (the demarcation level between expansion and contraction) after cratering to a low of 41.5% in April (the lowest since April 2009).
The key takeaway from the report rests in the understanding that manufacturing conditions are rebounding from the abyss of three straight monthly contractions (March-May). To be sure, manufacturing conditions were better in July than they were in prior months, but it is still a stretch to say that manufacturing activity is robust since uncertainty about the demand outlook remains high.
Total construction spending declined 0.7% m/m in June (Briefing.com consensus +1.3%) on the heels of an upwardly revised 1.7% decline (from -2.1%) in May. Total private construction spending was down 0.7% and total public construction spending was also down 0.7%.
The key takeaway from the report is that total construction spending was up 0.1% yr/yr despite the adverse effects of the pandemic, bolstered by the strength of nonresidential public construction spending (+5.7% yr/yr).
Looking ahead, investors will receive Factory Orders for June on Tuesday.
Nasdaq Composite +21.5% YTD
S&P 500 +2.0% YTD
Dow Jones Industrial Average -6.6% YTD
Russell 2000 -9.7% YTD
Market Snapshot
Dow 26664.40 +236.08 (0.89%)
Nasdaq 10902.87 +157.52 (1.47%)
SP 500 3294.61 +23.49 (0.72%)
10-yr Note -2/32 0.550
NYSE Adv 1868 Dec 1080 Vol 871.5 bln
Nasdaq Adv 2314 Dec 925 Vol 4.1 bln
Industry Watch
Strong: Information Technology, Health Care, Financials
Weak: Utilities, Real Estate, Consumer Staples, Energy
Moving the Market
-- Apple (AAPL) and Microsoft (MSFT) lead market higher
-- Semiconductor and biotech stocks also outperform in growth-oriented trade
-- ISM Manufacturing Index for July improves to 54.2 (Briefing.com consensus 53.4) from 52.6 in June
WTI crude futures gain nearly 2%
03-Aug-20 15:25 ET
Dow +249.49 at 26677.81, Nasdaq +158.16 at 10903.51, S&P +26.29 at 3297.41
[BRIEFING.COM] The S&P 500 is up 0.8%, while the Russell 2000 continues to outperform with a 1.8% gain. CNBC recently reported that coronavirus relief bill negotiations are done for the day; lawmakers will continue tomorrow.
One last look at the S&P 500 sectors shows information technology (+2.4%) and health care (+1.1%) still leading in gains, while the real estate (-1.3%) and utilities (-1.1%) sectors remain down more than 1.0%.
WTI crude futures settled higher by 1.8%, or $0.72, to $41.02/bbl.
Apple, Amazon, and Facebook lead market higher to close out July
31-Jul-20 16:15 ET
Dow +114.67 at 26428.32, Nasdaq +157.46 at 10745.35, S&P +24.90 at 3271.12
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 advanced 0.8% on Friday, closing at session highs amid a 10.5% gain in Apple (AAPL 425.04, +40.28, +10.5%), an 8% gain in Facebook (FB 253.67, +19.17, +8.2%), and a 4% gain in Amazon (AMZN 3164.68, +112.80, +3.7%) following their impressive quarterly results.
The Nasdaq Composite gained 1.5%, and the Dow Jones Industrial Average gained 0.4%. The Russell 2000, however, fell 1.0%.
The overall market was relatively weak on this final day of July, as declining issued outpaced advancing issues at both the NYSE and Nasdaq, but a turnaround in the S&P 500 utilities (+0.2%), materials (+0.1%), and financials (unch) sectors helped contribute to today's strong finish.
The information technology (+2.5%), consumer discretionary (+1.3%), and communication services (+0.8%) sectors were relatively strong all session due to the mega-cap gains, while the energy (-0.7%), health care (-0.6%), and industrials (-0.4%) sectors lagged.
Negative factors that weighed on the market included lawmakers still arguing over the contents of the next coronavirus relief bill, Alphabet (GOOG 1482.96, -48.49, -3.2%) falling 3% after posting its first-ever yr/yr decline in revenue, and the University of Michigan Index of Consumer Sentiment for July being revised lower to 72.5 (Briefing.com consensus 73.0) from 73.2.
Outside the mega-cap gains, Merck (MRK 80.24, +1.25, +1.6%) and Exxon Mobil (XOM 42.08, +0.21, +0.5%) finished higher following their earnings reports while KC Southern (KSU 171.85, +15.16, +9.7%) spiked 10% on news it could be taken private for more than $21 billion, according to The Wall Street Journal.
Chevron (CVX 83.94, -2.33, -2.7%) and Caterpillar (CAT 132.88, -3.84, -2.8%) were some notable earnings laggards.
U.S. Treasuries finished the session little changed. The 2-yr yield declined one basis point to 0.10%, and the 10-yr yield was flat at 0.54%. The U.S. Dollar Index rebounded 0.5% to 93.44. WTI crude futures increased 0.4%, or $0.16, to $40.13/bbl.
Reviewing Friday's economic data:
Personal income declined 1.1% m/m in June (Briefing.com consensus -0.9%) following a downwardly revised 4.4% decline (from -4.2%) in May. Personal spending increased 5.6% m/m (Briefing.com consensus 5.9%) on the heels of an upwardly revised 8.5% increase (from 8.2%) in May. The PCE Price Index rose 0.4% m/m, as expected, while the core-PCE Price Index, which excludes food and energy, jumped 0.2% m/m, which was also in-line with expectations.
The key takeaway from the report is that a 2.2% m/m gain in wages and salaries as the economy reopened was not enough to offset the 8.9% m/m decline in personal current transfer receipts. This consideration highlights the risk to the recovery trajectory that would be exacerbated at this juncture without further government assistance.
The Q2 Employment Cost Index increased 0.5% (Briefing.com consensus 0.6%), seasonally adjusted, for the three-month period ending in June 2020 after increasing 0.8% for the three-month period ending March 2020.
The key takeaway from the report is that employment costs held relatively steady with the same period a year ago.
The final July reading for the University of Michigan Index of Consumer Sentiment slipped to 72.5 from the preliminary reading of 73.2 and the final June reading of 78.1.
The key takeaway from the report is that the Expectations Index fell back to a six-year low, exposing a potential headwind for spending activity that is integral for stronger growth.
The Chicago PMI for July increased to 51.9 (Briefing.com consensus 42.0) from 36.6 in June.
Looking ahead, investors will receive Construction Spending for June and auto and truck sales for July on Monday.
Nasdaq Composite +19.8% YTD
S&P 500 +1.3% YTD
Dow Jones Industrial Average -7.4% YTD
Russell 2000 -11.3% YTD
Market Snapshot
Dow 26428.32 +114.67 (0.44%)
Nasdaq 10745.35 +157.46 (1.49%)
SP 500 3271.12 +24.90 (0.77%)
10-yr Note +2/32 0.538
NYSE Adv 1257 Dec 1676 Vol 1.3 bln
Nasdaq Adv 1138 Dec 2126 Vol 4.4 bln
Industry Watch
Strong: Consumer Discretionary, Information Technology, Communication Services
Weak: Energy, Financials, Health Care
Moving the Market
-- U.S. stocks trade mostly lower
-- Apple (AAPL), Amazon (AMZN), and Facebook (FB) rise after strong earnings reports
-- Alphabet (GOOG) shares fall despite positive quarterly results
-- Uncertainty surrounding next coronavirus relief bill
WTI crude settles higher, but energy stocks lag
31-Jul-20 15:25 ET
Dow -28.75 at 26284.90, Nasdaq +106.06 at 10693.95, S&P +7.65 at 3253.87
[BRIEFING.COM] The S&P 500 is back in positive territory with a 0.2% gain. The Russell 2000 is down 1.5%.
One last look at the S&P 500 sectors shows information technology (+2.0%), consumer discretionary (+1.1%), and communication services (+0.1%) as the only sectors in the green. Conversely, the energy (-1.6%), health care (-1.1%), and real estate (-1.1%) sectors are down more than 1.0%.
WTI crude futures gained 0.4%, or $0.16, to $40.13/bbl.
Mega-caps help market cut losses ahead of earnings
30-Jul-20 16:15 ET
Dow -225.92 at 26313.65, Nasdaq +44.87 at 10587.89, S&P -12.22 at 3246.22
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined as much as 1.7% on Thursday following the release of weak economic data, but a buy-the-dip trade in the mega-cap stocks helped the benchmark index close lower by just 0.4%. The Nasdaq Composite gained 0.4%, while the Dow Jones Industrial Average lost 0.9% and the Russell 2000 lost 0.4%.
Prior to the open, data showed Q2 GDP declined at an annualized rate of 32.9% (Briefing.com consensus -35.0%) and initial and continuing jobless claims increase on a weekly basis. The GDP print reflected the self-imposed lockdown while the unemployment data suggested that the labor market is still struggling to normalize.
The data appeared to take a toll on the cyclical energy (-4.1%), materials (-2.0%), and financials (-1.8%) sectors, but a turnaround in the mega-caps contributed to the gains in the information technology (+0.5%), communication services (+0.3%), and consumer discretionary (+0.1%) sectors.
Shares of Apple (AAPL 384.76, +4.60, +1.2%), Amazon (AMZN 3051.88, +18.35, +0.6%), Alphabet (GOOG 1531.45, +9.43, +0.6%), and Facebook (FB 234.50, +1.21, +0.5%) were down between 1-2% at their lows today as investors braced for their earnings reports after the close, but shareholders gradually embraced a buy-the-dip mindset that sent shares into positive territory.
Procter & Gamble (PG 131.42, +3.11, +2.4%), Qualcomm (QCOM 107.19, +14.16, +15.2%), PayPal (PYPL 192.51, +7.91, +4.3%), and UPS (UPS 141.46, +17.78, +14.4%) set new all-time highs after pleasing investors with their earnings results and/or guidance. Qualcomm also announced a licensing agreement with China's Huawei Technologies.
In other developments, reports indicated that lawmakers are still haggling over the contents of the next coronavirus relief bill, and President Trump suggested that the presidential election should be delayed to prevent mail-in fraud.
U.S. Treasuries finished the day with modest gains amid today's weak data. The 2-yr yield declined two basis points to 0.11%, and the 10-yr yield declined four basis points to 0.54%. The U.S. Dollar Index fell another 0.5% to 92.98. WTI crude futures fell 3.2%, or $1.30, to $39.97/bbl.
Reviewing Thursday's economic data:
Second quarter GDP declined at an annualized rate of 32.9% (Briefing.com consensus -35.0%), which is the worst annualized quarterly decline on record. The GDP Price Deflator declined 1.8% (Briefing.com consensus +0.1%).
The key takeaway from the report is its data-based rendering of just how bad things were in the second quarter amidst a self-imposed lockdown to contain the spread of the coronavirus and just how much ground needs to be made up to get back to pre-pandemic levels.
Initial claims for the week ending July 25 increased by 12,000 to 1.434 million (Briefing.com consensus 1.400 million). Continuing claims for the week ending July 18 surged by 867,000 to 17.018 million.
The key takeaway from this report is that initial claims are moving in the wrong direction (up, not down), signalling that the initial recovery momentum from the depths of the second quarter has slowed.
Looking ahead, investors will receive the Personal Income and Spending report for June, the Chicago PMI for July, the Q2 Employment Cost Index, and the revised University of Michigan Index of Consumer Sentiment for July on Friday.
Nasdaq Composite +18.0% YTD
S&P 500 +0.5% YTD
Dow Jones Industrial Average -7.8% YTD
Russell 2000 -10.4% YTD
Market Snapshot
Dow 26313.65 -225.92 (-0.85%)
Nasdaq 10587.89 +44.87 (0.43%)
SP 500 3246.22 -12.22 (-0.38%)
10-yr Note +3/32 0.548
NYSE Adv 1018 Dec 1923 Vol 826.2 mln
Nasdaq Adv 1446 Dec 1827 Vol 4.0 bln
Industry Watch
Strong: Information Technology, Consumer Discretionary, Communication Services, Consumer Staples
Weak: Energy, Financials, Materials
Moving the Market
-- Buy-the-dip trade in the mega-caps helps market cut losses
-- Adv. Q2 GDP showed 32.9% annualized contraction (Briefing.com consensus -35.0%); weekly initial claims and continuing claims increased versus prior week
-- Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), and Facebook (FB) closed higher in front of their earnings after the close
WTI crude falls back below $40 per barrel
30-Jul-20 15:25 ET
Dow -199.93 at 26339.64, Nasdaq +58.36 at 10601.38, S&P -10.05 at 3248.39
[BRIEFING.COM] The S&P 500 continues to pare losses and is now down 0.3% amid gains in the mega-cap stocks.
One last look at the sector standings shows eight trading lower and three trading higher. Consumer discretionary (+0.7%), information technology (+0.5%), and communication services (+0.4%) are on track to close higher, while energy (-3.6%), financials (-1.9%), and materials (-1.9%) continue to underperform.
WTI crude futures settled the session lower by $1.30 (-3.2%) to $39.97/bbl.
Stocks boosted by dovish Fed comments
29-Jul-20 16:20 ET
Dow +160.29 at 26539.57, Nasdaq +140.85 at 10543.02, S&P +40.00 at 3258.44
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 rallied 1.2% on Wednesday, as investors were pleased with the Fed's latest policy directive and were unconcerned by the House Judiciary Committee's antitrust hearing. The Nasdaq Composite rose 1.4%, and the Russell 2000 rose 2.1%. The Dow Jones Industrial Average underperformed with a 0.6% gain.
It was a steady and broad-based advance that lifted all 11 S&P 500 sectors into positive territory, including seven that rose at least 1.0%. The energy (+2.1%) and financials (+2.0%) sectors advanced the most with 2% gains, while the consumer staples sector lagged with a 0.2% gain.
A bulk of today's gains came prior to the start of the antitrust hearing and the Fed's unanimous decision to leave rates unchanged. The market pushed higher as soon as Fed Chair Powell began his press conference at 2:30 p.m. ET, liking his comment that the Fed is "not even thinking about thinking about thinking about raising rates." (Yes, Mr. Powell said "thinking" three times).
Note, the CEOs of Apple (AAPL 380.16, +7.15, +1.9%), Amazon (AMZN 3033.53, +33.20, +1.1%), Alphabet (GOOG 1522.02, +21.68, +1.5%), and Facebook (FB 233.29, +3.17, +1.4%) were still testifying before the House Judiciary Committee when the market closed for trading. While many lawmakers expressed serious concern about their business practices, shareholders kept their composure.
Earnings remained mixed, but notable standouts included Advanced Micro Devices (AMD 76.09, +8.48, +12.5%), Shopify (SHOP 1053.59, +68.59, +7.0%), and Starbucks (SBUX 77.42, +2.78, +3.7%). Dow component Visa (V 198.58, +1.84, +0.9%) overcame a negative start following its positive report.
On the downside, Boeing (BA 166.00, -4.84, -2.8%) and General Electric (GE 6.59, -0.30, -4.4%) closed sharply lower following their earnings reports. Boeing also said it expects to cut 19,000 jobs and estimated it will take around three years for travel to return to 2019 levels, which weighed on the airline stocks.
U.S. Treasuries edged higher after the release of the July FOMC statement, but the moves were minuscule. The 2-yr yield declined one basis point to 0.13%, and the 10-yr yield was flat at 0.58%. The U.S. Dollar Index fell another 0.4% to 93.35. WTI crude futures gained 0.6%, or $0.23, to $41.27/bbl.
Reviewing Wednesday's economic data:
Pending home sales increased 16.6% in June (Briefing.com consensus +17.0%) after surging an unrevised 44.3% in May.
The advance international trade in goods deficit totaled $70.6 bln in June following a $75.3 bln deficit in May. Advance retail inventories declined 2.6% in June after decreasing 6.2% in May. Advance wholesale inventories declined 2.0% in June after decreasing 1.2% in May.
The weekly MBA Mortgage Applications Index declined 0.8% following a 4.1% increase in the prior week.
Looking ahead, investors will receive the advance estimate for Q2 GDP and the weekly Initial and Continuing Claims report on Thursday.
Nasdaq Composite +17.5% YTD
S&P 500 +0.9% YTD
Dow Jones Industrial Average -7.0% YTD
Russell 2000 -10.1% YTD
Market Snapshot
Dow 26539.57 +160.29 (0.61%)
Nasdaq 10543.02 +140.85 (1.35%)
SP 500 3258.44 +40.00 (1.24%)
10-yr Note +1/32 0.569
NYSE Adv 2387 Dec 574 Vol 861.0 mln
Nasdaq Adv 2176 Dec 1084 Vol 3.9 bln
Industry Watch
Strong: Financials, Energy, Real Estate, Information Technology
Weak: Utilities, Consumer Staples
Moving the Market
-- Stock market closes higher in broad-based advance
-- Fed kept rates unchanged as expected, Fed Chair Powell reiterated dovish policy stance
-- House Judiciary Committee held antitrust hearing, but shareholders did not show concern
-- Mixed earnings
WTI crude gains amid equity rally
29-Jul-20 15:25 ET
Dow +182.56 at 26561.84, Nasdaq +147.12 at 10549.29, S&P +42.11 at 3260.55
[BRIEFING.COM] The S&P 500 is trading at fresh session highs with a 1.3% gain, while the Russell 2000 outperforms with a 1.8% gain.
One last look at the S&P 500 sectors shows green across the board, with nine sectors up at least 1.0%. The financials sector is up the most with a 1.9% gain, while the utilities sector is up the least with a 0.3% gain.
WTI crude futures settled higher by 0.6%, or $0.23, to $41.27/bbl.
Market closes higher as mega-caps lead and dollar weakens
27-Jul-20 16:15 ET
Dow +114.88 at 26584.77, Nasdaq +173.09 at 10536.35, S&P +23.78 at 3239.41
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 advanced 0.7% on Monday in a session that included renewed strength in the mega-cap stocks and continued weakness in the U.S. dollar. The Nasdaq Composite (+1.7%) and Russell 2000 (+1.2%) rose more than 1.0%, while the Dow Jones Industrial Average increased just 0.4%.
Nine of the 11 S&P 500 sectors closed higher, including the information technology (+1.6%), materials (+1.4%), and real estate (+1.1%) sectors at the top of the standings. The utilities (-1.3%) and financials (-0.8%) sectors were the lone holdouts.
Material stocks benefited from higher metal prices, including the continued breakout of gold ($1931.70/ozt, $34.20 +1.8%) amid a weakening U.S. Dollar Index (93.71, -0.72, -0.8%). The tech sector was lifted by mega-cap leadership and strong gains in the semiconductor space. The Philadelphia Semiconductor Index rose 3.2%.
Amazon (AMZN 3055.21, +46.30, +1.5%), Apple (AAPL 379.24, +8.78, +2.4%), Alphabet (GOOG 1530.20, +18.33, +1.2%), and Facebook (FB 233.50, +2.79, +1.2%) outperformed in front of high-profile events this week. Specifically, the CEOs of these companies will testify before lawmakers on Wednesday regarding regulatory concerns, and the companies will report earnings on Thursday.
Taiwan Semi (TSM 83.25, +9.35, +12.7%) stood out with a 12.7% gain amid speculation that Intel (INTC 49.57, -1.02, -2.0%) might order chips from the company to get around its internal production issues.
In other corporate news, Moderna (MRNA 79.91, +6.70, +9.2%) received an additional $472 million from the government to advance its COVID-19 vaccine candidate, Walgreens Boots Alliance (WBA 39.94, -0.67, -1.7%) announced its CEO will step down, and Hasbro (HAS 71.84, -5.75, -7.4%) missed top and bottom-line estimates.
Elsewhere, U.S. Treasuries finished little changed while investors continued to await the details of $1 trillion coronavirus relief bill from Republican Senators. The 2-yr yield was flat at 0.15%, and the 10-yr yield increased one basis point to 0.60%. WTI crude futures increased 0.9%, or $0.38 to $41.68/bbl.
Reviewing Monday's economic data:
Total durable goods orders increased 7.3% m/m in June (Briefing.com consensus 6.4%) following a downwardly revised 15.1% increase (from 15.8%) for May. Excluding transportation, orders jumped 3.3%, as expected, after a downwardly revised 3.6% increase (from 4.0%) for May.
The key takeaway from the report is that business spending picked up in June, evidenced by a 3.3% increase in new orders for nondefense capital goods excluding aircraft. That came on top of a 1.6% increase in May.
Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for July and the S&P Case-Shiller Home Price Index for May on Tuesday.
Nasdaq Composite +17.4% YTD
S&P 500 +0.3% YTD
Dow Jones Industrial Average -6.9% YTD
Russell 2000 -11.0% YTD
Market Snapshot
Dow 26584.77 +114.88 (0.43%)
Nasdaq 10536.35 +173.09 (1.67%)
SP 500 3239.41 +23.78 (0.74%)
10-yr Note -1/32 0.606
NYSE Adv 1769 Dec 1196 Vol 790.0 mln
Nasdaq Adv 1932 Dec 1354 Vol 4.1 bln
Industry Watch
Strong: Information Technology, Consumer Discretionary, Communication Services, Materials
Weak: Financials, Energy, Utilities
Moving the Market
-- Stock market trades higher in front of busy news week
-- U.S. dollar continues to weaken, gold futures keep rallying
-- Strength in semiconductor space
-- Investors await coronavirus relief bill later today
WTI crude settles higher
27-Jul-20 15:25 ET
Dow +93.49 at 26563.38, Nasdaq +174.34 at 10537.60, S&P +23.33 at 3238.96
[BRIEFING.COM] The S&P 500 is trading at session highs with a 0.7% gain.
One last look at the S&P 500 sectors shows information technology (+1.6%), materials (+1.2%), and consumer discretionary (+1.0%) leading the market in gains, while the financials (-1.1%) and utilities (-1.7%) sectors head in the opposite direction.
WTI crude futures settled higher by $0.38 (+0.9%) to $41.68/bbl.
Down day to end the week, Intel disappoints
24-Jul-20 16:20 ET
https://www.briefing.com/stock-market-update
Dow -182.44 at 26469.89, Nasdaq -98.24 at 10363.26, S&P -20.03 at 3215.63
[BRIEFING.COM] The stock market ended the week in negative territory in a mostly broad-based decline. The S&P 500 fell 0.6%, the Dow Jones Industrial Average fell 0.7%, and the Nasdaq Composite fell 0.9%. The small-cap Russell 2000 underperformed with a 1.5% decline.
Ten of the 11 S&P 500 sectors closed lower, but the health care (-1.1%) and information technology (-1.2%) sectors were the only sectors to decline more than 1.0%. Note, the tech sector was down as much as 2.7% intraday, while the consumer discretionary sector gained 0.3% as shares of Amazon (AMZN 3008.91, +22.36, +0.8%) recovered an early 3.3% decline.
Intel (INTC 50.59, -9.81, -16.2%) did very little recovering, with shares falling 16% after the company announced a six-month delay in its next-generation 7nm chip technology. While disappointing for Intel investors, the news was welcomed by investors of Advanced Micro Devices (AMD 69.40, +9.83, +16.5%).
Other negative factors today included China ordering the U.S. to close its consulate in Chengdu in response to the U.S. ordering China to close its consulate in Houston and a delay in the Republican coronavirus relief bill until next week.
On a more positive note, new home sales surged 13.8% m/m in June to a seasonally adjusted annual rate of 776,000 (Briefing.com consensus 680,000). That was the strongest pace of sales since July 2007 and higher than the pre-pandemic pace of 774,000 seen in January.
In other corporate news, Goldman Sachs (GS 201.47, -1.66, -0.8%) settled its 1MDB case for $3.9 billion, Verizon (VZ 56.85, +1.00, +1.8%) beat top and bottom-line estimates, American Express (AXP 95.33, -1.34, -1.4%) reported mixed quarterly results, and Walt Disney (DIS 117.61, -0.51, -0.4%) reportedly delayed several blockbuster movies by a year.
U.S. Treasuries finished little changed. The 2-yr yield declined one basis point to 0.14%, and the 10-yr yield was flat at 0.58%. Gold futures rose 0.4% to $1897.50/ozt -- its highest settlement price ever amid continued weakness in the U.S. Dollar Index (94.39, -0.30, -0.3%). WTI crude futures settled little changed at $41.08/bbl.
Reviewing Friday's economic data:
New home sales surged 13.8% m/m in June to a seasonally adjusted annual rate of 776,000 (Briefing.com consensus 680,000). That was the strongest pace of sales since July 2007 and higher than the pre-pandemic pace of 774,000 seen in January. On a yr/yr basis, new home sales were up 13.7%.
The key takeaway from the report is that sales activity in the new home market is quite healthy given the tight supply of existing homes for sale, low mortgage rates, pent-up demand, and an emerging, coronavirus-driven shift by city dwellers to suburban settings.
Looking ahead, investors will receive Durable Goods Orders for June on Monday.
Nasdaq Composite +15.5% YTD
S&P 500 -0.5% YTD
Dow Jones Industrial Average -7.3% YTD
Russell 2000 -12.0% YTD
Market Snapshot
Dow 26469.89 -182.44 (-0.68%)
Nasdaq 10363.26 -98.24 (-0.94%)
SP 500 3215.63 -20.03 (-0.62%)
10-yr Note 0/32 0.582
NYSE Adv 992 Dec 1937 Vol 711.3 mln
Nasdaq Adv 868 Dec 2356 Vol 4.2 bln
Industry Watch
Strong: Consumer Discretionary, Communication Services
Weak: Information Technology, Health Care
Moving the Market
-- Stocks close lower to end the week
-- Intel (INTC) shares declined 16% after announcing delay in 7nm chip technology and issuing downside Q3 EPS guidance
-- U.S.-China tensions, delay in GOP coronavirus relief bill
WTI crude settles little changed
24-Jul-20 15:25 ET
Dow -193.52 at 26458.81, Nasdaq -102.91 at 10358.59, S&P -23.45 at 3212.21
[BRIEFING.COM] The S&P 500 is down 0.7% and is on pace to end the week lower by 0.4%.
One last look at the S&P 500 sectors shows consumer discretionary (+0.3%) as the only sector trading higher. Laggards remain information technology (-1.2%) and health care (-1.2%), but no other sector is down more than 1.0%.
WTI crude futures settled little changed at $41.08/bbl.
Mega-caps take market lower
23-Jul-20 16:20 ET
Dow -353.51 at 26652.33, Nasdaq -244.71 at 10461.50, S&P -40.36 at 3235.66
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 fell 1.2% on Thursday, as noticeable selling in the mega-cap stocks during the afternoon took the market lower. The Nasdaq Composite fell 2.3%, and the Dow Jones Industrial Average fell 1.3%. The Russell 2000, however, was unscathed with a flat reading.
Eight of the 11 S&P 500 sectors closed lower, including the information technology (-2.6%), consumer discretionary (-2.0%), and communication services (-2.0%) sectors at the bottom of the standings amid the mega-cap declines, while the consumer staples (+0.2%), financials (+0.2%), and utilities (+0.1%) sectors closed higher.
Microsoft (MSFT 202.54, -9.21, -4.4%) and Tesla (TSLA 1513.07, -79.26, -5.0%) both reported better-than-expected earnings results, but the disappointing price action appeared to cause concern about similar reactions in Apple (AAPL 371.38, -17.71, -4.6%), Amazon (AMZN 2986.55, -113.36, -3.7%), Alphabet (GOOG 1515.68, -52.81, -3.4%), and Facebook (FB 232.60, -7.27, -3.0%) when they report.
On a related note, Goldman Sachs reportedly doubled down on its recommendation to "avoid" Apple due to a view that its recent surge won't be sustainable after earnings. That's a controversial view on Wall Street, but it evoked an understanding that many of these mega-cap stocks have had great runs and could be subject to a pullback.
In other developments, weekly initial jobless claims increased by 109,000 to 1.416 million (Briefing.com consensus 1.285 million), China's Global Times editor tweeted that China will likely announce countermeasures on Friday if they are forced to close the consulate in Houston, and Treasury Secretary Mnuchin said the GOP unemployment benefit plan will be based on 70% wage replacement.
Aside from Microsoft and Tesla, the earnings picture was mostly mixed. Dow components Travelers (TRV 118.61, -3.63, -3.0%) and Dow Inc. (DOW 42.82, -1.52, -3.4%) moved lower after earnings, while Twitter (TWTR 38.44, +1.50, +4.1%), Kimberly Clark (KMB 147.33, +3.03, +2.1%), and Cintas (CTAS 303.01, +13.65, +4.7%) moved higher.
U.S. Treasuries finished the session mixed. The 2-yr yield increased two basis points to 0.15%, while the 10-yr yield declined one basis point to 0.59%. The U.S. Dollar Index weakened by another 0.2% to 94.81. WTI crude futures fell 2.0%, or $0.83, to $41.05/bbl.
Reviewing Thursday's economic data, which included the weekly Initial and Continuing Claims report:
Initial jobless claims for the week ending July 18 increased by 109,000 to 1.416 million (Briefing.com consensus 1.285 million), which is the 18th straight week they have exceeded one million. Continuing claims for the week ending July 11 decreased by 1,107,000 to 16.197 million.
The key takeaway from the report is that the jump in initial claims is an early reflection of the adverse impact of states pausing or rolling back their reopening activity due to the rise in coronavirus cases. In turn, it is a reminder that the momentum of initial reopening efforts will slow the progress made in labor market recovery efforts.
The Conference Board's Leading Economic Index increased 2.0% m/m in June (Briefing.com consensus 2.1%) following an upwardly revised 3.2% increase (from 2.8%) in May. At 102.0, the index level is 8.8% below the level it hit in February.
The key takeaway from the report is the recognition that the index decreased 8.4% for the six-month span through June, with only one out of its ten components increasing over that period.
Looking ahead, investors will receive New Home Sales for June on Friday.
Nasdaq Composite +16.6% YTD
S&P 500 +0.2% YTD
Dow Jones Industrial Average -6.6% YTD
Russell 2000 -10.7% YTD
Market Snapshot
Dow 26652.33 -353.51 (-1.31%)
Nasdaq 10461.50 -244.71 (-2.29%)
SP 500 3235.66 -40.36 (-1.23%)
10-yr Note +1/32 0.589
NYSE Adv 1413 Dec 1520 Vol 820.6 mln
Nasdaq Adv 1242 Dec 1978 Vol 4.4 bln
Industry Watch
Strong: Utilities, Consumer Staples, Financials
Weak: Communication Services, Information Technology, Consumer Discretionary
Moving the Market
-- Stock market turned lower in afternoon trade amid selling in the mega-caps
-- Disappointing earnings reactions in Microsoft (MSFT) and Tesla (TSLA)
-- Initial jobless claims for the week ending July 18 increased by 109,000 to 1.416 million (Briefing.com consensus 1.285 million)
-- Lingering U.S.-China tensions
WTI crude futures settle lower by 2%
23-Jul-20 15:25 ET
Dow -375.82 at 26630.02, Nasdaq -238.74 at 10467.47, S&P -41.56 at 3234.46
[BRIEFING.COM] The S&P 500 is down 1.2%, and the Russell 2000 is down 0.1%.
One last look at the S&P 500 sectors shows information technology (-2.6%), communication services (-2.0%), and consumer discretionary (-1.8%) down noticeably, while the financials (+0.04%) and consumer staples (+0.1%) sectors cling onto fractional gains.
WTI crude futures settled lower by $0.83 (-2.0%) to $41.05/bbl.
Stocks close at highs in late-session push
22-Jul-20 16:15 ET
Dow +165.44 at 27005.84, Nasdaq +25.76 at 10706.21, S&P +18.72 at 3276.02
https://www.briefing.com/stock-market-update
[BRIEFING.COM] U.S. stocks closed at session highs on Wednesday, with the S&P 500 and Dow Jones Industrial Average both gaining 0.6%, followed by modest 0.2% gains in the Nasdaq Composite and Russell 2000.
For most of the day, the S&P 500 traded slightly above its flat line, until buyers stepped in late in the session on no specific news catalyst. The S&P 500 utilities (+1.5%) and real estate (+1.3%) sectors strengthened their leadership positions, but the energy (-1.3%) and financials (-0.1%) sectors still closed lower.
In addition, Microsoft (MSFT 211.75, +3.00, +1.4%) and Tesla (TSLA 1592.33, +23.97, +1.5%) padded gains in front of their earnings reports after the close.
Other positive factors beside the gains in MSFT and TSLA included Pfizer (PFE 38.56, +1.87, +5.1%) and BioNTech (BNTX 104.17, +12.57, +13.7%) securing a vaccine supply agreement with the U.S. government for $1.95 billion upon FDA approval and Best Buy (BBY 97.36, +7.08, +7.8%) offering encouraging sales commentary.
The market kept its composure despite the U.S. ordering China to close its consulate in Houston by Friday, President Trump saying he thinks the coronavirus situation will "probably get worse before it gets better," and Texas Instruments (TXN 132.53, -2.95, -2.2%) falling 2% despite reporting upbeat earnings results and guidance.
Separately, Wynn Resorts (WYNN 76.10, -3.09, -3.9%) furloughed some Las Vegas workers amid disappointing demand. Spotify (SPOT 289.62, +13.24, +4.8%) confirmed it reached a new multi-year global license agreement with Universal Music Group.
U.S. Treasuries ended the session slightly higher. The 2-yr yield declined one basis point to 0.13%, and the 10-yr yield declined one basis point to 0.60%. The U.S. Dollar Index declined 0.2% to 94.95. Gold futures increased 1.1% to $1864.30/ozt. WTI crude futures increased 0.3% to $41.88/bbl.
Reviewing Wednesday's economic data:
Existing home sales surged 20.7% m/m in June to a seasonally adjusted annual rate of 4.72 million (Briefing.com consensus 4.70 million). That is the largest monthly increase on record, although the seasonally adjusted annual rate of existing home sales is still 18% lower than where it stood in February.
The key takeaway from the report is that inventory of existing homes continues to be constrained. That is a pressure point that will feed higher prices; but it's also a reality that should bolster the prospects for new home demand.
The FHFA Housing Price Index for July declined 0.3% following a revised 0.1% increase in June (from +0.2%).
The weekly MBA Mortgage Applications Index increased 4.1% following a 5.1% increase in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report and Conference Board's Leading Economic Index for June on Thursday.
Nasdaq Composite +19.3% YTD
S&P 500 +1.4% YTD
Dow Jones Industrial Average -5.4% YTD
Russell 2000 -10.7% YTD
Market Snapshot
Dow 27005.84 +165.44 (0.62%)
Nasdaq 10706.21 +25.76 (0.24%)
SP 500 3276.02 +18.72 (0.57%)
10-yr Note +1/32 0.594
NYSE Adv 1737 Dec 1203 Vol 829.0 mln
Nasdaq Adv 1475 Dec 1784 Vol 4.0 bln
Industry Watch
Strong: Real Estate, Utilities, Materials
Weak: Energy, Financials
Moving the Market
-- Stocks close at highs in late-session push
-- Market withstood lingering U.S.-China tensions, virus concerns
-- Upbeat earnings news
WTI crude futures inch higher
22-Jul-20 15:25 ET
Dow +124.06 at 26964.46, Nasdaq +8.06 at 10688.51, S&P +13.41 at 3270.71
[BRIEFING.COM] The S&P 500 is trading at session highs with a 0.4% gain. CNBC recently reported that Republican leadership is considering a $400/month in extended unemployment benefits through Dec. 31 in the next stimulus package.
One last look at the S&P 500 sectors shows eight of the 11 groups trading in positive territory. The utilities (+1.7%) and real estate (+1.1%) sectors remain in the lead, while the energy (-1.5%), financials (-0.4%), and communication services (-0.1%) sectors trade lower.
WTI crude futures settled higher by $0.12 (+0.3%) to $41.88/bbl.
Nasdaq closes at record high in field day for the mega-caps
20-Jul-20 16:20 ET
Dow +8.92 at 26680.87, Nasdaq +263.90 at 10767.18, S&P +27.11 at 3251.84
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The mega-cap stocks stole the show on Monday, powering the Nasdaq Composite to a 2.5% gain (and record close) and lifting the S&P 500 to a 0.8% gain. The Dow Jones Industrial Average (+0.03%) closed little changed, while the Russell 2000 declined 0.4%.
Amazon (AMZN 3196.84, +234.87, +7.9%) gained 8% after its price target was raised to a Street-high of $3800 at Goldman Sachs and Jefferies. Tesla (TSLA 1643.00, +142.16, +9.5%) and Microsoft (MSFT 21.60, +8.70, +4.3%) rallied ahead of their earnings reports on Wednesday. Alphabet (GOOG 1565.72, +50.17, +3.3%) and Apple (AAPL 393.43, +8.12, +2.1%) rose with the mega-cap trade.
In turn, the S&P 500 consumer discretionary (+3.1%), information technology (+2.6%), and communication services (+1.3%) sectors posted solid gains, but they were the only sectors to close higher today. The Philadelphia Semiconductor Index (+2.0%) also had a great day, reflecting an infatuation for growth stocks after falling out of favor last week.
Conversely, the energy (-1.7%), utilities (-1.4%), industrials (-1.2%), and consumer staples (-1.0%) sectors fell at least 1.0%. The Dow Jones Transportation Average declined 1.6%.
Investors were also provided with positive COVID-19 vaccine data from the U.S. collaboration between Pfizer (PFE 36.50, +0.25, +0.7%) and BioNTech (BNTX 88.20, +2.95, +3.5%) and the UK collaboration between AstraZeneca (AZN 58.68, -2.42, -4.0%) and the University of Oxford.
The broad market did not rally on the news this time around, evidenced by only three S&P 500 sectors closing higher and by declining issues outpacing advancing issues at the NYSE. The S&P 500, however, did finish above its June 8 closing level (3232.39) due to the strength in the mega-caps.
In M&A activity, Noble Energy (NBL 10.18, +0.53, +5.4%) agreed to be acquired by Chevron (CVX 85.27, -1.92, -2.2%) for $5 billion, or $10.38/share, in stock.
U.S. Treasuries finished little changed after trading near their flat lines all session. The 2-yr yield increased one basis point to 0.15%, and the 10-yr yield decreased one basis point to 0.62%. The U.S. Dollar Index declined 0.1% to 98.82. WTI crude futures gained 0.7%, or $0.27, to $40.83/bbl.
Investors did not receive any notable economic data on Monday and will not receive any reports on Tuesday, either.
Nasdaq Composite +20.0% YTD
S&P 500 +0.7% YTD
Dow Jones Industrial Average -6.5% YTD
Russell 2000 -12.0% YTD
Market Snapshot
Dow 26680.87 +8.92 (0.03%)
Nasdaq 10767.18 +263.90 (2.51%)
SP 500 3251.84 +27.11 (0.84%)
10-yr Note +24/32 0.612
NYSE Adv 1280 Dec 1676 Vol 785.4 mln
Nasdaq Adv 1695 Dec 1556 Vol 4.3 bln
Industry Watch
Strong: Consumer Discretionary, Information Technology, Communication Services
Weak: Consumer Staples, Industrials, Utilities, Energy
Moving the Market
-- Mega-caps power Nasdaq to record close, S&P 500 turns positive for the year
-- Amazon (AMZN) shares gained 8% after Goldman Sachs and Jefferies raised their price target on AMZN to a Street-high of $3800
-- More encouraging vaccine news, but broad market did not rally on news this time around
-- Declining issues outpaced advancing issues at NYSE
WTI crude settles higher, but energy stocks lag
20-Jul-20 15:20 ET
Dow +45.73 at 26717.68, Nasdaq +244.26 at 10747.54, S&P +25.72 at 3250.45
[BRIEFING.COM] The S&P 500 is up 0.8% to extend its monthly gain to an impressive 4.8%. The benchmark index is on pace to close above its June 8 closing level (3232.39), which it has not managed to do since then.
One last look at the S&P 500 sectors shows consumer discretionary (+2.9%), information technology (+2.5%), and communication services (+1.0%) as the only sectors trading higher. The utilities (-1.3%), energy (-1.4%), and industrials (-1.1%) sectors are down more than 1.0%.
WTI crude futures settled higher by $0.27 (+0.7%) to $40.83/bbl.
S&P 500 closes higher in defensive-led session
17-Jul-20 16:15 ET
Dow -62.76 at 26671.95, Nasdaq +29.36 at 10503.28, S&P +9.16 at 3224.73
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 eked out a 0.3% gain on Friday in a lackluster session led by the defensive-oriented sectors. The Nasdaq Composite (+0.3%) and Russell 2000 (+0.4%) rose comparably to the benchmark index, while the Dow Jones Industrial Average declined 0.2% amid relative weakness in financial and energy companies.
Negative factors in today's trade included Netflix (NFLX 492.99, -34.40, -6.5%) issuing cautious subscriber guidance, the preliminary University of Michigan Index of Consumer Sentiment for July dropping to 73.2 (Briefing.com consensus 77.6) from 78.1 in June, and the U.S. tallying another daily record in new coronavirus cases.
The lower consumer sentiment reading was closely linked with the resurgence in coronavirus cases, but investors remained willing to stay in the market. Many opted for a defensive stance that lifted the S&P 500 utilities (+2.3%), real estate (+1.4%), and health care (+1.4%) sectors into the leadership spots at the expense of the cyclical energy (-1.5%) and financials (-0.8%) sectors.
Several mega-cap technology stocks continued to underperform, taking note of the disappointing price action in Netflix as a possible precursor if they fail to live up to elevated expectations. Shares of Amazon (AMZN 2961.97, -37.93, -1.3%) fell 7.4% this week, including today's 1.3% decline.
In other earnings news, BlackRock (BLK 587.72, +20.76, +3.7%) and J.B. Hunt Transport (JBHT 136.82, +4.27, +3.2%) were some notable standouts, with the latter helping drive the outperformance of the Dow Jones Transportation Average (+1.1%).
U.S. Treasuries ended the session little changed. The 2-yr yield declined one basis point to 0.14%, and the 10-yr yield increased two basis points to 0.63%. The U.S. Dollar Index declined 0.4% to 95.95. WTI crude futures declined 0.5%, or $0.20, to $40.56/bbl.
Reviewing Friday's economic data:
Total housing starts increased 17.3% m/m in June to a seasonally adjusted annual rate of 1.186 million units (Briefing.com consensus 1.180 million). Building permits rose 2.1% to 1.241 million (Briefing.com consensus 1.290 million).
The key takeaway from the report is that single-unit permits (+11.8%) and starts (+17.2%) were both strong, which is good to see for a housing market that is short on supply.
The preliminary University of Michigan Index of Consumer Sentiment for July dropped to 73.2 (Briefing.com consensus 77.6) from the final reading of 78.1 for June. The July reading, which is just 1.4 points above the April low, slumped in conjunction with the renewed surge in coronavirus cases and moves by some states to pause or roll back reopening efforts.
The key takeaway from the report is the acknowledgment that sentiment is destined to sink further, creating a risk for a longer recession, if Congress fails to come through with another aggressive fiscal policy response that focuses on financial relief for households and state and local governments.
Looking ahead, there are no economic reports scheduled until next Wednesday, which will include Existing Home Sales for June.
Nasdaq Composite +17.1% YTD
S&P 500 -0.2% YTD
Dow Jones Industrial Average -6.5% YTD
Russell 2000 -11.7% YTD
Market Snapshot
Dow 26671.95 -62.76 (-0.23%)
Nasdaq 10503.28 +29.36 (0.28%)
SP 500 3224.73 +9.16 (0.28%)
10-yr Note 0/32 0.623
NYSE Adv 1609 Dec 1318 Vol 869.0 mln
Nasdaq Adv 1935 Dec 1311 Vol 4.5 bln
Industry Watch
Strong: Utilities, Health Care, Real Estate, Materials, Information Technology
Weak: Financials, Energy, Communication Services, Consumer Discretionary
Moving the Market
-- S&P 500 closes slightly higher amid defensive-oriented leadership
-- Netflix (NFLX) shares fall 6.5% on cautious subscriber guidance
-- Preliminary University of Michigan Index of Consumer Sentiment for July dropped to 73.2 (Briefing.com consensus 77.6) from 78.1 in June
-- Relative weakness in financial and energy stocks
WTI crude futures post modest loss
17-Jul-20 15:25 ET
Dow -47.41 at 26687.30, Nasdaq +43.88 at 10517.80, S&P +13.50 at 3229.07
[BRIEFING.COM] The S&P 500 continues to trade higher by 0.4% and is on pace to close the week higher by 1.4%. Trading volume has been lighter than usual at the NYSE.
One last look at the S&P 500 sectors shows utilities (+2.4%), real estate (+1.7%), and health care (+1.6%) continuing to lead in gains, while the energy (-1.6%) and financials (-0.6%) remain today's laggards.
WTI crude futures settled lower by $0.20 (-0.5%) to $40.56/bbl.
Wall Street dragged by technology sector
16-Jul-20 16:20 ET
Dow -135.39 at 26734.71, Nasdaq -76.66 at 10473.92, S&P -10.99 at 3215.57
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.3% on Thursday amid relative weakness in the technology sector, but the market did close near its best levels of the session. The Dow Jones Industrial Average declined 0.5%, the Nasdaq Composite declined 0.7%, and the Russell 2000 declined 0.7%.
Earnings news and economic data were mostly better than expected, but today's price action appeared to be more influenced by unrelated moves in the mega-cap technology stocks. The Nasdaq, for instance, was down as much as 1.8% intraday, but it staged a decent rebound in the afternoon as shares of Amazon (AMZN 2999.90, -8.97, -0.3%) nearly recouped an early 3.0% decline.
The top-weighted S&P 500 information technology sector, however, struggled all session with a 1.2% decline amid a lack of leadership from Apple (AAPL 386.09, -4.81, -1.2%) and Microsoft (MSFT 203.92, -4.12, -2.0%). The utilities (+1.3%), materials (+0.4%), communication services (+0.3%), and consumer staples (+0.2%) sectors closed higher.
Earnings reactions were mixed to better-than-expected results from Bank of America (BAC 23.93, -0.67, -2.7%), Morgan Stanley (MS 52.64, +1.29, +2.5%), Johnson & Johnson (JNJ 149.25, +0.99, +0.7%), and Abbott Labs (ABT 96.40, -0.33, -0.3%).
On the data front, retail sales increased 7.5% m/m in June (Briefing.com consensus 5.2%), and weekly initial jobless claims decreased by 10,000 to 1.300 million (Briefing.com consensus 1.260 million). Market reaction was muted.
In other developments, high-profile accounts on Twitter (TWTR 35.28, -0.39, -1.1%) were compromised in a bitcoin scam, Dell (DELL 59.10, +6.42, +12.2%) confirmed it's exploring a potential spin-off of its stake in VMware (VMW 139.87, +0.17, +0.1%), and American Airlines (AAL 12.45, -0.99, -7.4%) warned it could furlough or lay off up to 25,000 employees.
U.S. Treasuries finished the session mostly higher but closed near their flat lines. The 2-yr yield increased one basis point to 0.15%, while the 10-yr yield declined two basis points to 0.61%. The U.S. Dollar Index increased 0.3% to 96.33. WTI crude futures fell 0.9%, or $0.37, to $40.76/bbl.
Reviewing Thursday's economic data, which included Retail Sales for June and the weekly Initial and Continuing Claims report:
Initial jobless claims for the week ending July 11 decreased by 10,000 to 1,300,000 (Briefing.com consensus 1.260 million). Continuing claims for the week ending July 4 decreased by 422,000 to 17,338,000.
The key takeaway from the report is that initial jobless claims continue to run at extremely high levels relative to where they were before the COVID shutdown period began in March, which is a reminder that the labor market recovery still has a long, long way to go.
Retail sales increased 7.5% m/m in June (Briefing.com consensus 5.2%) following an upwardly revised 18.2% increase (from 17.7%) in May. Excluding autos, retail sales rose 7.3% (Briefing.com consensus 5.0%) on the heels of a downwardly revised 12.1% increase (from 12.4%) in May.
The key takeaway from the report is that the pace of growth slowed in June, which is important knowing that retail sales activity in July will be crimped by efforts to pause or roll back reopening activity in response to a surge in coronavirus case counts. In other words, the good news for June will be offset by an expectation for less good -- or even bad -- retail sales for July.
The NAHB Housing Market Index for July increased to 72 (Briefing.com consensus 58) from 58 in June.
The Philadelphia Fed Index for July decreased to 24.1 (Briefing.com consensus 22.5) from the 27.5 reading in June.
Business inventories declined 2.3% in May, as expected, following a revised 1.4% decline in April (from -1.3%).
Looking ahead, investors will receive Housing Starts and Building Permits for June and the preliminary University of Michigan Index of Consumer Sentiment for July on Friday.
Nasdaq Composite +16.7% YTD
S&P 500 -0.5% YTD
Dow Jones Industrial Average -6.3% YTD
Russell 2000 -12.0% YTD
Market Snapshot
Dow 26734.71 -135.39 (-0.50%)
Nasdaq 10473.92 -76.66 (-0.73%)
SP 500 3215.57 -10.99 (-0.34%)
10-yr Note +23/32 0.615
NYSE Adv 1363 Dec 1572 Vol 776.9 mln
Nasdaq Adv 1334 Dec 1905 Vol 4.2 bln
Industry Watch
Strong: Utilities, Materials, Communication Services, Consumer Staples
Weak: Information Technology, Real Estate, Energy
Moving the Market
-- Wall Street dragged by the information technology sector, but market closes well off session lows
-- Earnings news and economic data were mostly better than expected
-- Retail sales increased 7.5% m/m in June (Briefing.com consensus +5.2%), weekly initial jobless claims decreased by 10,000 to 1.300 million (Briefing.com consensus 1.260 million)
Energy stocks weighed down by lower oil prices
16-Jul-20 15:25 ET
Dow -185.48 at 26684.62, Nasdaq -91.81 at 10458.77, S&P -16.11 at 3210.45
[BRIEFING.COM] The S&P 500 is down 0.5%, while the Russell 2000 is down 1.1%. Updating the prior comment, Texas Governor Abbott denied rumors that he is considering a statewide shutdown of the state.
One last look at the S&P 500 sectors shows losses across most sectors. The information technology (-1.3%) and real estate (-1.1%) sectors are down more than 1.0%, while the utilities (+1.2%) and materials (+0.2%) sectors are the only sectors in the green.
WTI crude futures settled lower by $0.37 (-0.9%) to $40.76/bbl. The lower oil prices have weighed on the energy sector (-0.7%).
Reopening trade lifts market higher on vaccine news
15-Jul-20 16:15 ET
Dow +227.51 at 26870.10, Nasdaq +61.91 at 10550.58, S&P +29.04 at 3226.56
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 gained 0.9% on Wednesday in a choppy trading session following another positive vaccine update. The Dow Jones Industrial Average increased 0.9%, and the Nasdaq Composite increased 0.6%. The Russell 2000 outperformed with a 3.5% gain amid strength in small-cap cyclical stocks.
A reopening trade in which economically-sensitive stocks outperform was catalyzed by news that Moderna's (MRNA 80.22, +5.18, +6.9%) COVID-19 candidate elicited neutralizing antibodies in all 45 participants in a Phase 1 study. MRNA shares closed higher by 7%, although they were up as much as 18% intraday.
Other measures of support included impressive quarterly results from Goldman Sachs (GS 216.90, +2.89, +1.4%), the Fed's July Beige Book observing an increase in consumer spending across all districts, industrial production increasing 5.4% m/m in June (Briefing.com consensus 4.6%), and the Empire State Manufacturing Survey for July jumping to 17.2 (Briefing.com consensus 5.8) from -0.2 in June.
From a sector standpoint, the S&P 500 industrials (+2.6%), energy (+2.0%), financials (+1.9%), and materials (+1.7%) sectors benefited the most from this reopening trade, while the defensive-oriented utilities (-0.4%) and consumer staples (unch) sectors underperformed.
It was also a rotational trade, as cyclical, value, and small-cap stocks outperformed at the expense of mega-cap technology stocks like Amazon (AMZN 3008.87, -75.13, -2.4%). The underperformance of these widely-held names briefly cut the S&P 500's intraday gain to just 0.1%, but a buy-the-dip trade ultimately prevailed.
Some of that intraday selling was also attributed to pestering diplomatic tensions between the U.S. and China and an inability of the S&P 500 to stay above its June 8 closing level (3232.39). UnitedHealth (UNH 304.07, -4.45, -1.4%) was an additional drag following its mixed earnings report.
U.S. Treasuries finished mixed and little changed. The 2-yr yield declined one basis point to 0.14%, while the 10-yr yield increased two basis points to 0.63%. The U.S. Dollar Index declined 0.2% to 96.06. WTI crude increased 2.2%, or $0.89, to $41.13/bbl.
Reviewing Wednesday's economic data:
Total industrial production increased 5.4% m/m in June (Briefing.com consensus 4.6%) following an unrevised 1.4% increase in May. The capacity utilization rate improved to 68.6% (Briefing.com consensus 68.3%) from an upwardly revised 65.1% (from 64.8%) in May.
The key takeaway from the report was the stark disclosure that the index fell 42.6% at an annual rate for the second quarter as a whole, which was the worst downturn since the industrial retrenchment after World War II.
The Empire State Manufacturing Survey for July jumped to 17.2 (Briefing.com consensus 5.8) from -0.2 in June. The dividing line between expansion and contraction for this regional manufacturing survey is 0.0.
Import prices increased 1.4% in June, and prices, excluding oil, increased 0.3%. Export prices increased 1.4% in June, and prices, excluding agriculture, also increased 1.4%.
The weekly MBA Mortgage Applications Index increased 5.1% following a 2.2% increase in the prior week.
Looking ahead to Thursday's economic calendar, investors will receive the weekly Initial and Continuing Claims report, Retail Sales for June, the Philadelphia Fed Index for July, the NAHB Housing Market Index for July, Business Inventories for May, and Net Long-Term TIC Flows for May.
Nasdaq Composite +17.6% YTD
S&P 500 -0.1% YTD
Dow Jones Industrial Average -5.9% YTD
Russell 2000 -11.4% YTD
Market Snapshot
Dow 26870.10 +227.51 (0.85%)
Nasdaq 10550.58 +61.91 (0.59%)
SP 500 3226.56 +29.04 (0.91%)
10-yr Note -1/32 0.636
NYSE Adv 2473 Dec 457 Vol 950.9 mln
Nasdaq Adv 2556 Dec 606 Vol 4.5 bln
Industry Watch
Strong: Energy, Industrials, Financials, Materials
Weak: Utilities, Consumer Staples
Moving the Market
-- Stock market gains on familiar reopening trade, catalyzed by a positive vaccine update from Moderna (MRNA)
-- Encouraging bank earnings and economic data
-- Mega-cap technology stocks undeperformed
WTI crude gains 2% in reopening trade
15-Jul-20 15:30 ET
Dow +127.05 at 26769.64, Nasdaq +28.23 at 10516.90, S&P +20.26 at 3217.78
[BRIEFING.COM] The S&P 500 continues to drift higher by 0.7%. The Russell 2000 stays ahead with a strong 3.5% gain.
One last look at the S&P 500 sectors shows industrials (+2.4%), financials (+1.6%), energy (+1.4%), and materials (+1.3%) in the lead as money continues to flow into cyclical stocks, while the consumer staples (-0.1%) and utilities (-0.3%) sectors trade lower.
WTI crude futures settled higher by $0.89 (+2.2%) to $41.13/bbl.
Stocks rebound in broad-based advance
14-Jul-20 16:15 ET
Dow +556.79 at 26642.59, Nasdaq +97.73 at 10488.67, S&P +42.30 at 3197.52
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 gained 1.3% on Tuesday, recovering yesterday's decline in a mostly broad-based advance. The Dow Jones Industrial Average (+2.1%) and Russell 2000 (+1.8%) had strong performances with roughly 2% gains, while the Nasdaq Composite (+0.9%) underperformed.
The market stumbled out of the gate after JPMorgan Chase (JPM 98.21, +0.56, +0.6%), Citigroup (C 50.15, -2.05, -3.9%), and Wells Fargo (WFC 24.25, -1.16, -4.6%) reported large provisions for credit losses in their Q2 earnings reports. While large provisions reflect a challenging economic environment for the banks, investors were willing to stay in the market.
All 11 S&P 500 sectors closed higher, with the best performers found in the cyclical energy (+3.6%), materials (+2.5%), and industrials (+2.2%) sectors. A strong finish in the market carried the consumer discretionary (+0.6%) and financials (+0.7%) sectors into positive territory.
Shares of Amazon (AMZN 3084.00, -20.00, -0.6%) were down as much as 5.0% in early action alongside many of the mega-cap technology stocks, as money appeared to flow out of these crowded names and into beaten-down stocks. Investors, however, gradually returned to the mega-cap space throughout the day, providing a boost for the major indices and leaving AMZN shares down just 0.6%.
Separately, Delta Air Lines (DAL 26.11, -0.71, -2.7%) missed top and bottom-line estimates and issued a cautious revenue outlook for its September quarter. Travelers (TRV 118.55, +4.31, +3.8%) said it expects a net loss in Q2, primarily due to catastrophic events and civil unrest. TRV shares still closed higher.
In the Treasury market, longer-dated tenors saw increased buying interest following the large credit-loss provisions from the banks. The 2-yr yield declined on basis point to 0.15%, and the 10-yr yield declined three basis points to 0.62%. The U.S. Dollar Index declined 0.2% to 96.29. WTI crude increased 0.4%, or $0.16, to $40.24/bbl.
Reviewing Tuesday's economic data:
The Consumer Price Index (CPI) for June increased 0.6% m/m (Briefing.com consensus 0.5%) following a 0.1% decline in May. Excluding food and energy, CPI rose 0.2% m/m (Briefing.com consensus 0.1%) after a 0.1% decline in May. This was the first increase in core CPI since February.
The key takeaway from the report is that shows inflation at the consumer level remains in a subdued state, evidenced by a 0.6% yr/yr increase in total CPI and a 1.2% yr/yr increase in core CPI.
The NFIB Small Business Optimism for June increased to 100.6 from 94.4 in May.
Looking ahead to Wednesday, investors will receive Industrial Production and Capacity Utilization for June, Export and Import Prices for June, the Empire State Manufacturing Index for July, and the weekly MBA Mortgage Applications Index.
Nasdaq Composite +16.9% YTD
S&P 500 -1.0% YTD
Dow Jones Industrial Average -6.6% YTD
Russell 2000 -14.4% YTD
Market Snapshot
Dow 26642.59 +556.79 (2.13%)
Nasdaq 10488.67 +97.73 (0.94%)
SP 500 3197.52 +42.30 (1.34%)
10-yr Note -23/32 0.629
NYSE Adv 1903 Dec 1009 Vol 908.6 mln
Nasdaq Adv 1920 Dec 1179 Vol 4.3 bln
Industry Watch
Strong: Energy, Industrials, Materials, Health Care
Weak: Consumer Discretionary, Financials
Moving the Market
-- Stocks close at session highs in mostly broad-based advance
-- Beaten-down cyclical stocks outperformed, while mega-cap technology stocks underperformed
-- Treasuries edged higher following large provisions for credit losses from the banks
WTI crude settles higher
14-Jul-20 15:25 ET
Dow +427.72 at 26513.52, Nasdaq +13.07 at 10404.01, S&P +24.02 at 3179.24
[BRIEFING.COM] The S&P 500 is up 0.8%, still well behind the Dow Jones Industrial Average, which is up 1.7%.
One last look at the S&P 500 sectors shows energy (+3.1%), materials (+1.8%), and industrials (+1.7%) still leading the market in gains, while the consumer discretionary (-0.7%), financials (+0.1%), and communication services (+0.1%) sectors lag.
WTI crude futures settled higher by $0.16 (+0.4%) to $40.24/bbl.
Technology stocks drag market lower
13-Jul-20 16:15 ET
Dow +10.50 at 26085.80, Nasdaq -226.50 at 10390.94, S&P -29.82 at 3155.22
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 advanced as much as 1.6% on Monday, but a confluence of negative-sounding headlines caused noticeable profit taking in many of the technology-related stocks that left the benchmark index down 0.9% for the session. The Nasdaq Composite fell 2.1%, and Russell 2000 fell 1.3%. The Dow Jones Industrial Average (+0.04%) eked out a fractional gain.
The S&P 500 information technology (-2.1%), communication services (-2.0%), and consumer discretionary (-1.7%) sectors declined the most, while the health care (+0.5%), industrials (+0.4%), and financials (+0.3%) sectors showed relative strength.
The day started in rally mode with the FAANG stocks hitting fresh all-time highs and health care stocks outperforming after two COVID-19 vaccine candidates from the Pfizer (PFE 35.21, +1.38, +4.1%) and BioNTech (BNTX 77.78, +7.42, +10.6%) collaboration received fast-track designation from the FDA.
After the S&P 500 topped out at the 3235.28 level at around 1:40 p.m. ET, the Treasury Budget for June revealed a record $864.1 billion deficit, the Los Angeles and San Diego Unified School Districts announced that the new school year will start remotely, and Secretary of State Pompeo confirmed the U.S. will strengthen its policy on China's territorial claims in the South China Sea.
Losses accelerated, taking the market into negative territory, after California Governor Newsom announced all counties have to re-close indoor operations in several business sectors due to the coronavirus. In addition, the inability of the S&P 500 to stay above its June 8 closing level (3232.39) likely contributed to the downwards momentum.
Shares of Tesla (TSLA 1497.06, -47.59, -3.1%), which were up as much as 16%, turned negative and encouraged profit taking in many of the other mega-cap technology stocks that some say had gotten overbought. Each of the FAANG stocks closed lower.
In other developments, PepsiCo (PEP 134.94, +0.45, +0.3%) beat top and bottom-line estimates; Analog Devices (ADI 117.25, -7.25, -5.8%) issued upside Q3 guidance and agreed to acquire Maxim Integrated (MXIM 69.29, +5.20, +8.1%) for approximately $21 billion in stock; and Macau lifted its quarantine travel restrictions, boosting many of the casino stocks.
U.S. Treasuries ended the session near their flat lines. The 2-yr yield was flat at 0.16%, and the 10-yr yield increased one basis point to 0.64%. The U.S. Dollar Index decreased 0.1% to 96.54. WTI crude decreased 1.2%, or $0.49, to $40.08/bbl.
Reviewing Monday's economic data:
The Treasury Budget was earmarked with a gaping (and record) $864.1 billion deficit for the month of June. This budget data is not seasonally adjusted, so the June deficit cannot be compared to the May deficit of $398.7 billion other than to say both qualify as massive shortfalls in terms of government finances. The deficit in June 2019 was $8.5 billion.
The key takeaway from the report is that the huge swing in the budget was a function of the tax filing deadline being extended, and government spending surging, due to stimulus measures employed in response to the COVID-19 impact.
Looking ahead, investors will receive the Consumer Price Index for June on Tuesday.
Nasdaq Composite +15.8% YTD
S&P 500 -2.3% YTD
Dow Jones Industrial Average -8.6% YTD
Russell 2000 -15.9% YTD
Market Snapshot
Dow 26085.80 +10.50 (0.04%)
Nasdaq 10390.94 -226.50 (-2.13%)
SP 500 3155.22 -29.82 (-0.94%)
10-yr Note +24/32 0.625
NYSE Adv 1056 Dec 1886 Vol 1.0 bln
Nasdaq Adv 910 Dec 2188 Vol 4.8 bln
Industry Watch
Strong: Health Care, Financials, Industrials, Utilities
Weak: Information Technology, Communication Services, Consumer Discretionary, Real Estate
Moving the Market
-- Market closes at lows amid negative-sounding developments; technology stocks succumbed to profit taking
-- California Governor Newsome announced all counties to re-close indoor operations in several sectors
-- Los Angeles and San Diego Unified School Districts announced that the new school year will start online only
-- June Treasury Budget reveals a huge $864.1 billion deficit; the U.S. plans to oppose certain Chinese territorial claims in the South China Sea
-- Pfizer (PFE) and BioNTech (BNTX) received fast track designation from FDA for two of their COVID-19 vaccine candidates
WTI crude closes lower as stocks trade at lows
13-Jul-20 15:25 ET
Dow +229.30 at 26304.60, Nasdaq -106.04 at 10511.40, S&P -2.77 at 3182.27
[BRIEFING.COM] The S&P 500 is now trading lower by 0.1% after being up as much as 1.6% midday.
One last look at the S&P 500 sectors shows real estate (-1.1%), information technology (-1.0%), communication services (-1.0%), and consumer discretionary (-0.6%) leading the market in losses. Conversely, the financials (+1.1%), health Care (+1.1%), and materials (+0.8%) sectors show relative strength.
WTI crude futures settled the session lower by $0.49 (-1.2%) to $40.08/bbl.
Stocks gain to end the week
10-Jul-20 16:20 ET
Dow +369.21 at 26075.30, Nasdaq +69.69 at 10617.44, S&P +32.99 at 3185.04
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 advanced 1.1% on Friday, as investors rotated back into growth/value stocks following a positive remdesivir update. The Dow Jones Industrial Average (+1.4%) and Russell 2000 (+1.7%) pulled ahead, while the Nasdaq Composite (+0.7%) underperformed but still closed at a record high.
Prior to the open, Gilead Sciences (GILD 76.32, +1.61, +2.2%) said new remdesivir data showed an improvement in clinical recovery for severely-ill COVID-19 patients and a 62% reduction in the risk of mortality compared to the standard of care. The news turned equity index futures positive and caused a rotational trade back into economically-sensitive stocks after the open.
The S&P 500 financials (+3.5%) and energy (+3.3%) sectors rose more than 3.0% amid expectations that these beaten-up sectors would outperform in a recovery. The health care sector (-0.2%) ironically closed lower while the information technology sector (unch) took a breather.
A steady advance gathered momentum late in the day as many of the mega-cap technology stocks turned positive after a sluggish start. The momentum was strong with Tesla (TSLA 1544.65, +150.37, +10.8%), while Netflix (NFLX 548.73, +40.97, +8.1%) and Amazon (AMZN 3200.00, +17.37, +0.6%) benefited from price target increases at brokerage firms.
Carnival (CCL 16.16, +1.58, +10.8%) shares received an additional boost after the company noted an increase in demand for new bookings in 2021, feeding the reopening trade and outweighing its mixed earnings results.
U.S. Treasuries backed off from early morning highs following the remdesivir update, sending yields higher. The 2-yr yield increased one basis point to 0.16%, and the 10-yr yield increased three basis points to 0.63% after touching 0.57% in overnight action. The U.S. Dollar Index declined 0.1% to 96.63. WTI crude rose 2.1%, or $0.94, to $40.57/bbl.
Reviewing Friday's economic data:
The Producer Price Index for final demand, led by a 0.3% decline in prices for final demand services, decreased 0.2% m/m (Briefing.com consensus +0.4%) following a 0.4% increase in May. Excluding food and energy, the index for final demand decreased 0.3% m/m (Briefing.com consensus +0.1%) after declining 0.1% in May.
The key takeaway from the report is that there are few, if any, inflation pressures at the producer level due to generally weak demand.
Looking ahead, investors will not receive any economic data on Monday, but many health care and financial companies will report earnings next week.
Nasdaq Composite +18.3% YTD
S&P 500 -1.4% YTD
Dow Jones Industrial Average -8.6% YTD
Russell 2000 -14.7% YTD
Market Snapshot
Dow 26075.30 +369.21 (1.44%)
Nasdaq 10617.44 +69.69 (0.66%)
SP 500 3185.04 +32.99 (1.05%)
10-yr Note -25/32 0.641
NYSE Adv 2237 Dec 703 Vol 875.8 mln
Nasdaq Adv 1997 Dec 1193 Vol 3.5 bln
Industry Watch
Strong: Financials, Energy, Communication Services, Utilities, Consumer Staples
Weak: Information Technology, Health Care, Real Estate
Moving the Market
-- Cyclical and value stocks lead market higher to end the week
-- Gilead Sciences (GILD) released new data on remdesivir showing an improvement in clinical recovery for patients with COVID-19
-- Relative weakness in the information technology and health care sectors
WTI crude futures gain amid reopening trade
10-Jul-20 15:25 ET
Dow +348.44 at 26054.53, Nasdaq +52.11 at 10599.86, S&P +29.57 at 3181.62
[BRIEFING.COM] The S&P 500 is now trading higher by 0.9%, as most mega-cap technology stocks turn positive.
One last look at the S&P 500 sectors shows financials (+3.3%) out in the lead with a 3.3% gain, followed by energy (+2.6%) and utilities (+2.1%). The health care (-0.2%) and information technology (-0.2) sectors still trade lower.
WTI crude futures settled the session higher by $0.94 (+2.4%) to $40.57/bbl. For the week, crude futures were up just 0.4%.
Nasdaq closes at record high in weak session
09-Jul-20 16:15 ET
Dow -361.19 at 25706.09, Nasdaq +55.25 at 10547.75, S&P -17.89 at 3152.05
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 lost 0.6% on Thursday, but continued strength in the mega-cap technology stocks helped the benchmark index overcome an early 1.7% decline. The Nasdaq Composite, powered by these household names, rose 0.5% to close at a record high. The Dow Jones Industrial Average (-1.4%) and Russell 2000 (-2.0%) underperformed.
Despite the gain in the Nasdaq, today was a weak performance by the market. Declining issues outpaced advancing issues by a 3:1 margin at the NYSE and a 2:1 margin at the Nasdaq, and the cyclical S&P 500 energy (-4.9%), financials (-2.2%), and industrials (-2.1%) sectors succumbed to noticeable losses.
Only the consumer discretionary (+0.8%) and information technology (+0.4%) sectors finished higher, and that was predominately due to record closes in Amazon (AMZN 3182.63, +101.52, +3.3%), Microsoft (MSFT 214.32, +1.49, +0.7%), and Apple (AAPL 382.73, +1.36, +0.4%).
The underperformance of the cyclical sectors, and the curve-flattening activity in the Treasury market, suggested that the reopening trade lost some of its luster. The 2-yr yield declined one basis point to 0.15%, and the 10-yr yield declined five basis points to 0.61%. The U.S. Dollar Index gained 0.4% to 96.78. WTI crude fell 3.1%, or $1.28, to $39.63/bbl.
While there wasn't a confirmed catalyst for today's decline, there were some key developments. Weekly initial claims decreased by 99,000 to 1.314 million (Briefing.com consensus 1.350 million), which was its 14th straight weekly decline but also a persistently high number of claims, and the Supreme Court ruled that a New York Grand Jury may access President Trump's tax returns.
Note, the market did appear to lose some steam in early action after the Supreme Court ruling, but the judges ruled in separate decision against efforts by Democratic-led House Committees to get access to the president's financial records.
Separately, shares of Walgreens Boots Alliance (WBA 39.01, -3.28, -7.8%) fell 8% after the company missed earnings estimates and issued downside FY20 EPS guidance.
Reviewing Thursday's economic data:
initial claims decreased by 99,000 for the week ending July 4 to 1.314 million (Briefing.com consensus 1.350 million). Continuing claims for the week ending June 27 plunged by 698,000 to 18.062 million.
The key takeaway from the report is that it suggests things are less bad on the job loss front, but less bad is clearly still a long way from good for both initial claims and continuing claims.
Wholesale inventories decreased 1.2% in May, as expected, following a revised 0.2% increase in April (from +0.3%).
Looking ahead, investors will receive the Producer Price Index for June on Friday.
Nasdaq Composite +17.6% YTD
S&P 500 -2.4% YTD
Dow Jones Industrial Average -9.9% YTD
Russell 2000 -16.2% YTD
Market Snapshot
Dow 25706.09 -361.19 (-1.39%)
Nasdaq 10547.75 +55.25 (0.53%)
SP 500 3152.05 -17.89 (-0.56%)
10-yr Note +28/32 0.603
NYSE Adv 771 Dec 2125 Vol 972.0 mln
Nasdaq Adv 1016 Dec 2141 Vol 4.0 bln
Industry Watch
Strong: Consumer Discretionary, Information Technology
Weak: Financials, Energy, Industrials
Moving the Market
-- Nasdaq closes higher in weak session
-- Mega-cap technology stocks were among the few bright spots
-- Politically-minded headlines
-- Weekly initial jobless claims declined by 99,000 to 1.314 million (Briefing.com consensus 1.350 million)
WTI crude falls back below $40 per barrel
09-Jul-20 15:25 ET
Dow -353.94 at 25713.36, Nasdaq +45.38 at 10537.88, S&P -17.08 at 3152.73
[BRIEFING.COM] The S&P 500 is trading lower by 0.4%, while the Russell 2000 trades lower by 1.7%.
One last look at the S&P 500 sectors shows the consumer discretionary (+0.8%), information technology (+0.3%), and communication services (+0.03%) sectors trading higher amid strength in their mega-cap components, while the energy (-4.3%), financials (-2.2%), and industrials (-1.8%) sectors are underperforming.
WTI crude futures settled the session lower by $1.28 (-3.1%) to $39.63/bbl.
Mega-cap tech leads market higher
08-Jul-20 16:20 ET
Dow +177.10 at 26067.30, Nasdaq +148.61 at 10492.50, S&P +24.62 at 3169.81
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 advanced 0.8% on Wednesday, recovering some of yesterday's decline, while the Nasdaq Composite advanced 1.4% to close at another record high. The Dow Jones Industrial Average (+0.7%) and Russell 2000 (+0.8%) performed more in-line with the benchmark index.
The market appeared to receive a late-day boost after St. Louis Fed President Bullard (non-FOMC voter) told CNBC that he is optimistic on a recovery, as the economy appears to be tracking very well right now. Prior to Mr. Bullard's comments, the S&P 500 was trading near its flat line in a lackluster session.
Apple (AAPL 381.37, +8.68, +2.3%), Microsoft (MSFT 212.83, +4.58, +2.2%), and Amazon (AMZN 3081.11, +80.99, +2.7%), which were strong all session, each rose more than 2.0% to provide the boost in the information technology (+1.6%) and consumer discretionary (+1.5%) sectors. The materials sector fell 1.5%, but no other sector declined more than 0.3%.
Advancing issues had a modest advantage over declining issues at the NYSE and Nasdaq, reflecting a mixed market, but the continued outperformance of the market's largest technology stocks made a big difference at the index level. New macro developments were lacking today, but there was some notable corporate news.
Biogen (BIIB 280.19, +11.84, +4.4%) submitted its application to the FDA for its Alzheimer's drug, Twitter (TWTR 35.41, +2.42, +7.3%) may reportedly be working on a subscription service, and National General (NGHC 33.84, +13.43, +65.8%) agreed to be acquired by Allstate (ALL 88.22, -4.43, -4.8%) for $4 billion in cash.
U.S. Treasuries finished near their flat lines in a tight-ranged session. The 2-yr yield was unchanged at 0.16%, and the 10-yr yield was unchanged at 0.65%. The U.S. Dollar Index declined 0.4% to 96.47. WTI crude increased 0.8%, or $0.31, to $40.91/bbl, even as the EIA reported an unexpected build in weekly crude inventories.
Reviewing Wednesday's economic data:
Consumer credit contracted by $18.2 billion in May (Briefing.com consensus -$22.0 billion) after declining an downwardly revised $70.2 bln (from -$68.7 billion) in April.
The key takeaway from the report is that May marked the third straight contraction in consumer credit that was led by a decline in revolving credit, which underscores the more restrictive credit stance adopted by lenders in the wake of the COVID shutdown and massive spike in unemployment.
The weekly MBA Mortgage Applications Index increased 2.2% following a 1.8% decline in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report and Wholesale Inventories for May on Thursday.
Nasdaq Composite +16.9% YTD
S&P 500 -1.9% YTD
Dow Jones Industrial Average -8.7% YTD
Russell 2000 -14.5% YTD
Market Snapshot
Dow 26067.30 +177.10 (0.68%)
Nasdaq 10492.50 +148.61 (1.44%)
SP 500 3169.81 +24.62 (0.78%)
10-yr Note -1/32 0.663
NYSE Adv 1727 Dec 1208 Vol 1.0 bln
Nasdaq Adv 1858 Dec 1353 Vol 4.0 bln
Industry Watch
Strong: Information Technology, Consumer Discretionary, Financials, Utilities
Weak: Materials, Consumer Staples, Real Estate
Moving the Market
-- Stock market closes near session highs following positive commentary from St. Louis Fed President Bullard
-- Continued strength in the mega-cap technology stocks, which lifted the Nasdaq to a new record close
-- Choppy price action, reflective of consolidation action
WTI crude futures settle in the green
08-Jul-20 15:25 ET
Dow +155.87 at 26046.07, Nasdaq +125.93 at 10469.82, S&P +21.10 at 3166.29
[BRIEFING.COM] The S&P 500 is now trading higher by 0.6%, just short of its intraday high of 0.8%.
One last look at the S&P 500 sectors shows information technology (+1.4%), consumer discretionary (+1.2%), utilities (+1.1%), and communication services (+1.0%) sectors leading the market higher. The materials (-1.7%) remains today's laggard by a wide margin.
WTI crude futures settled today's session higher by $0.31 (+0.8%) to $40.91/bbl.
Market falters into close, snaps winning streak
07-Jul-20 16:20 ET
Dow -396.85 at 25890.20, Nasdaq -89.76 at 10343.89, S&P -34.40 at 3145.19
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market pulled back from its recent gains on Tuesday, with the S&P 500 (-1.1%), Dow Jones Industrial Average (-1.5%), and Russell 2000 (-1.9%) losing more than 1.0%. The Nasdaq Composite declined 0.9% after setting a new intraday high in the morning.
Early in the session, money continued to flow into the mega-cap technology companies, which briefly lifted the S&P 500 into positive territory. A lack of conviction, however, gradually subsumed the market on the thesis that it had gotten overextended on a short-term basis. The benchmark index had risen for five straight days coming into the session.
Cyclical sectors declined the most, specifically the energy (-3.2%), financials (-2.1%), industrials (-1.9%), and consumer discretionary (-1.7%) sectors. The consumer staples sector (+1.0%), on the other hand, was the only sector that closed higher due to a 7% gain in shares of Walmart (WMT 126.95, +8.06, +6.8%).
Walmart, according to Recode, plans to launch Walmart+ later this month as a competing delivery service to Amazon (AMZN 3000.12, -56.92, -1.9%) prime.
Separately, Atlanta Fed President Bostic cautioned in a Financial Times interview that economic activity appears to be leveling off due to the continued spread of the coronavirus. On Tuesday, the cities of San Francisco and Melbourne, Australia scaled back reopening efforts, joining many other local governments to do so, while Carnival (CCL 14.57, -1.04, -6.7%) canceled some future cruise itineraries.
On a related note, Novavax (NVAX 104.56, +25.12, +31.6%) announced it received a $1.6 billion investment from the federal government to advance its COVID-19 vaccine candidate. NVAX shares surged nearly 32%.
Longer-dated U.S. Treasuries finished higher, causing some curve-flattening activity. The 2-yr yield was unchanged at 0.16%, while the 10-yr yield declined three basis points to 0.65%. The U.S. Dollar Index increased 0.3% to 97.00. WTI crude increased 0.2% to $40.60/bbl.
Tuesday's economic data was limited to the JOLTS - Job Openings report, which showed job openings increase to 5.397 mln in May from a revised 4.996 mln in April (from 5.046 mln). Looking ahead, investors will receive the Consumer Credit Report for May and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +15.3% YTD
S&P 500 -2.7% YTD
Dow Jones Industrial Average -9.3% YTD
Russell 2000 -15.1% YTD
Market Snapshot
Dow 25890.20 -396.85 (-1.51%)
Nasdaq 10343.89 -89.76 (-0.86%)
SP 500 3145.19 -34.40 (-1.08%)
10-yr Note +4/32 0.640
NYSE Adv 707 Dec 2250 Vol 961.2 mln
Nasdaq Adv 904 Dec 2435 Vol 4.2 bln
Industry Watch
Strong: Consumer Staples, Materials
Weak: Financials, Energy, Industrials, Consumer Discretionary
Moving the Market
-- Stock market closes lower after recent stretch of gains, relative weakness in cyclical sectors
-- Walmart (WMT) shares gain 7% on news that the company plans to launch a competing delivery service this month
-- Lingering growth concerns
WTI crude ekes out gain
07-Jul-20 15:25 ET
Dow -277.85 at 26009.20, Nasdaq -38.66 at 10394.99, S&P -20.22 at 3159.37
[BRIEFING.COM] The S&P 500 is now trading at fresh session lows with 0.7% decline.
One last look at the S&P 500 sectors shows consumer staples (+1.5%) bucking the broader trend due to a 7% gain in shares of Walmart (WMT 127.29, +8.40, +7.1%). The energy (-2.5%), financials (-2.1%), industrials (-1.6%), and consumer discretionary (-1.5%) sectors are down noticeably.
WTI crude futures settled today's session higher by $0.09 (+0.2%) to $40.60/bbl.