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Nasdaq closes at new record in bullish start to the week
06-Jul-20 16:20 ET
Dow +459.67 at 26287.05, Nasdaq +226.02 at 10433.65, S&P +49.71 at 3179.59
[BRIEFING.COM] The S&P 500 rose 1.6% on Monday in a bullish start to the week, but it was the Nasdaq Composite (+2.2%) and Dow Jones Industrial Average (+1.8%) that gained the advantage today. The Nasdaq closed at another record high, while the Russell 2000 underperformed the large-cap indices with a 0.8% gain.
Ten of the 11 S&P 500 sectors finished in positive territory, including the consumer discretionary (+3.2%), communication services (+2.2%), financials (+2.0%), and information technology (+1.8%) sectors atop the standings. The utilities sector (-1.3%) was the lone holdout with a 1.3% decline.
The positive bias was ignited overseas when a front-page editorial in one of China's state-run news outlets implied that a "healthy bull market" was imminent. China's Shanghai Composite surged 5.7% on Monday. The U.S. stock market saw a noticeable bump after the ISM Non-Manufacturing Index for June returned to expansionary territory with a 57.1% reading (Briefing.com consensus 49.0%).
It was largely a momentum trade rooted in recovery optimism and a fear of missing out, but the market drifted mostly sideways after the ISM report, which was released at 10:00 a.m. ET. The market was supported heavily by mega-cap, and momentum, stocks, including Amazon (AMZN 3057.04, +166.74, +5.8%) and Tesla (TSLA 1371.58, +162.92, +13.5%).
In the energy space, Dominion Energy (D 73.59, -9.10) shares fell 11.0% following a pair of noteworthy actions. The company agreed sell its natural gas assets to Berkshire Hathaway (BRK.B 182.72, +3.89, +2.2%) for $4 billion in cash, which will also assume $5.7 billion in debt, and announced the cancellation of the Atlantic Coast Pipeline that was jointly owned by Duke Energy (DUK 79.81, -2.03, -2.5%).
This was Warren Buffet's first major deal during the pandemic, but it wasn't as alluring as Uber (UBER 32.52, +1.84, +6.0%) agreeing to acquire Postmates for $2.65 billion.
Headlines about the daily record in new coronavirus cases in the U.S. remained in the news, but the market remained steadfast in the view that a growing cooperation in mask-wearing and increased testing would slow the outbreak. On a related note, Regeneron Pharma (REGN 627.25, +4.80, +0.8%) said it started a Phase 3 trial for its COVID-19 antibody treatment.
U.S. Treasuries finished slightly lower in a tight-ranged session. The 2-yr yield increased one basis point to 0.16%, and the 10-yr yield increased two basis points to 0.68%. The U.S. Dollar Index declined 0.4% to 96.75. WTI crude declined 0.2% to $40.51/bbl.
Reviewing Monday's economic data:
The ISM Non-Manufacturing Index for June increased to 57.1% (Briefing.com consensus 49.0%) from 45.4% in May. A reading above 50.0% connotes an expansion in activity. June represented the first month of expanding activity since March.
Survey responses reflect changes, if any, in the current month compared to the previous month. The key takeaway, then, is that the June report can't be taken at face value as a "strong" report so much as it can be taken as a report showing stronger activity relative to the depressed activity in May.
Looking ahead, investors will receive the JOLTS - Job Openings report for May on Tuesday.
Nasdaq Composite +16.3% YTD
S&P 500 -1.6% YTD
Dow Jones Industrial Average -7.9% YTD
Russell 2000 -13.5% YTD
Market Snapshot
Dow 26287.05 +459.67 (1.78%)
Nasdaq 10433.65 +226.02 (2.21%)
SP 500 3179.59 +49.71 (1.59%)
10-yr Note -1/32 0.680
NYSE Adv 2057 Dec 899 Vol 1.1 bln
Nasdaq Adv 2188 Dec 1170 Vol 4.5 bln
Industry Watch
Strong: Communication Services, Consumer Discretionary, Information Technology, Financials
Weak: Utilities, Energy
Moving the Market
-- Tech stocks driving Nasdaq to new records
-- Chinese state media suggested fostering a bull market should be a priority for the Chinese economy
-- ISM Non-Manufacturing Index for June returns into expansionary territory
-- M&A activity
WTI crude ticks lower while stocks gain
06-Jul-20 15:25 ET
Dow +363.92 at 26191.30, Nasdaq +201.26 at 10408.89, S&P +40.53 at 3170.41
[BRIEFING.COM] The S&P 500 is up 1.3% as it continues to drift sideways.
One last look at the S&P 500 sectors shows consumer discretionary (+2.7%), financials (+1.9%), communication services (+1.8%), and information technology (+1.6%) continuing to outperform the benchmark index. The utilities sector (-1.6%) remains an eyesore with a decline nearing 2%.
WTI crude futures decreased $0.07 (-0.2%) to $40.51/bbl.
Stocks gain on positive jobs data, but close near lows
02-Jul-20 16:20 ET
Dow +92.39 at 25827.38, Nasdaq +53.00 at 10207.63, S&P +14.15 at 3129.88
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 increased 0.5% on Thursday amid positive labor market data, although it was up as much as 1.6% in early action. The Nasdaq Composite (+0.5%), Dow Jones Industrial Average (+0.4%), and Russell 2000 (+0.3%) also finished near session lows, but the Nasdaq did notch another record close.
With the market closed on Friday in observation of Independence Day, investors received the Employment Situation Report one day early, and it came in better than expected for the second straight month. It also showed that there was still a lot more re-hiring activity needed to get to where things were before the pandemic.
Briefly, June nonfarm payrolls increased by 4.800 million (Briefing.com consensus 3.50 million), and the unemployment rate improved to 11.1% (Briefing.com consensus 12.6%) from 13.3% in May. Initial jobless claims for the week ending June 27 also decreased slightly to 1.427 million (Briefing.com consensus 1.355 million) for its 13th straight decline.
Every sector in the S&P 500 was on pace to close in positive territory following the data, but a late fade in the market took several sectors into the red. The cyclical materials (+1.9%), energy (+1.1%), and industrials (+0.8%) sectors set the performance pace, while the real estate (-0.3%) and communication services (-0.1%) sectors closed lower.
The late-day selling was likely due to some profit-taking activity in front of the holiday weekend. At today's intraday high, the S&P 500 was up 5.2% for the week.
Tesla (TSLA 1208.66, +89.03, +8.0%), however, showed no signs of slowing down after the company pleased investors with its Q2 delivery data. TSLA shares rose 26% this week, including today's 8% gain.
U.S. Treasuries finished little changed. The 2-yr yield declined one basis point to 0.15%, and the 10-yr yield was unchanged at 0.68%. The U.S. Dollar Index was also little changed at 97.22. WTI crude rose 1.7%, or $0.66, to $40.42/bbl.
Reviewing Thursday's economic data, which featured the Employment Situation Report for June:
June nonfarm payrolls increased by 4.800 million (Briefing.com consensus 3.50 million). June private sector payrolls increased by 4.767 million (Briefing.com consensus 3.00 million). June unemployment rate was 11.1% (Briefing.com consensus 12.6%), versus 13.3% in May. June average hourly earnings declined 1.2% (Briefing.com consensus -1.0%) versus a 1.0% decline in May.
The key takeaway from the report as far as the market is concerned is that it reflects an economy that is bouncing back from the depths of the COVID-19 shutdown period. There are still far too many people unemployed (17.750 million), yet the June numbers are moving in the right direction.
Initial jobless claims for the week ending June 27 decreased by 55,000 to 1.427 million (Briefing.com consensus 1.355 million).
The key takeaway from the report is that initial claims remain at an alarmingly high level and will continue to be a drag on economic activity.
The Trade Balance report for May showed a widening in the deficit to -$54.6 billion (Briefing.com consensus -$53.0 billion) from a downwardly revised $49.8 billion (from -$49.4 billion).
The key takeaway from the report is that exports (-$6.6 billion) and imports (-$1.8 billion) both declined in May, underscoring the adverse impact of the coronavirus on the global economy.
New orders for manufactured goods increased 8.0% m/m in May (Briefing.com consensus 7.2%) following a downwardly revised 13.5% decline (from -13.0%) in April.
The key takeaway from the report is that it reflects a recovery in new order activity following the depths of the COVID-19 shutdown period.
When the market reopens on Monday, investors will receive the ISM Non-Manufacturing Index for June.
Nasdaq Composite +13.8% YTD
S&P 500 -3.1% YTD
Dow Jones Industrial Average -9.5% YTD
Russell 2000 -14.2% YTD
Market Snapshot
Dow 25827.38 +92.39 (0.36%)
Nasdaq 10207.63 +53.00 (0.52%)
SP 500 3129.88 +14.15 (0.45%)
10-yr Note 0/32 0.673
NYSE Adv 1810 Dec 1099 Vol 897.2 mln
Nasdaq Adv 1894 Dec 1417 Vol 4.0 bln
Industry Watch
Strong: Energy, Materials, Industrials
Weak: Real Estate, Communication Services
Moving the Market
-- Stocks close higher but near session lows in front of the holiday weekend
-- Nonfarm payrolls increased by 4.800 million in June (Briefing.com consensus 3.50 million), unemployment rate improved to 11.1% (Briefing.com consensus 12.6%)
-- Late profit-taking activity
WTI crude closes above $40/bbl
02-Jul-20 15:25 ET
Dow +219.73 at 25954.72, Nasdaq +103.43 at 10258.06, S&P +29.26 at 3144.99
[BRIEFING.COM] The market's best levels were in the opening minutes of action, and it has drifting sideways since pulling back in the morning. Currently, the S&P 500 is up 0.9%.
One last look at the S&P 500 sectors shows green across the board. The materials (+1.8%), energy (+1.7%), and industrials (+1.2%) sectors maintain their leadership positions, while the real estate sector (+0.3%) lags with a 0.3% gain.
WTI crude futures settled the session higher by $0.66 (+1.7%) to $40.42/bbl.
Nasdaq closes at record high in mixed session
01-Jul-20 16:20 ET
Dow -77.91 at 25734.99, Nasdaq +95.86 at 10154.63, S&P +15.57 at 3115.73
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.5%) and Nasdaq Composite (+1.0%) finished with decent gains on Wednesday amid positive economic data and upbeat vaccine news. It was also record close for the Nasdaq, but it was a negative day for the Dow Jones Industrial Average (-0.3%) and Russell 2000 (-1.0%).
The S&P 500 real estate (+2.6%), utilities (+2.3%), and communication services (+2.2%) sectors rose more than 2.0%, while the energy (-2.5%), financials (-1.0%), and materials (-0.5%) sectors closed in negative territory.
Each sector had started the day higher after Stat News reported that Pfizer (PFE 33.74, +1.04, +3.2%) and BioNTech (BNTX 64.14, -2.60, -3.9%) made progress on their COVID-19 vaccine candidate, the ISM Manufacturing Index for June returned into expansionary mode with a 52.6% reading (Briefing.com consensus 49.2%), and the ADP Employment Change Report for June showed consecutive gains for private-sector payrolls.
Negative headwinds, however, included an observation that the S&P 500 was already up 3.0% over the prior two days, a report from Bloomberg that the U.S. is preparing global sanctions against China for its abuse of Muslim minorities, and news that Apple (AAPL 364.11, -0.69, -0.2%) will re-close an additional 30 stores tomorrow due to the coronavirus.
Regarding the latter, the market has adopted the idea that preemptive measures will induce short-term pain but will help curb the outbreak, and that any pain will be alleviated by policy support. The FOMC Minutes from the June 9-10 meeting highlighted concerns about a significant rise in coronavirus infections due to early reopening, and that highly accommodative monetary policy will likely be needed to facilitate a recovery.
Considering these developments, it was a mixed session with cyclical sectors underperforming and money continuing to flow into the mega-cap and momentum stocks like Amazon (AMZN 2878.70, +119.88, +4.4%). FedEx (FDX 156.66, +16.44, +11.7%) was another standout with a 12% gain following its earnings report.
U.S. Treasuries finished with modest losses, pushing yields higher across the curve. The 2-yr yield increased two basis points to 0.17%, and the 10-yr yield increased three basis points to 0.68%. The U.S. Dollar Index declined 0.3% to 97.15. WTI crude declined 1.2%, or $0.48, to $39.76/bbl.
Reviewing Wednesday's economic data:
The ISM Manufacturing Index for June rose to 52.6% (Briefing.com consensus 49.2%) from 43.1% in May. This was the first reading above 50.0% in four months and the largest month-over-month increase since August 1980. The dividing line between expansion and contraction is 50.0%.
The key takeaway from the report is that it reflects a clear bounce back from the super depressed conditions seen in April and May. It's a natural rebound so to speak as the economy reopens, but the key is its sustainability, which is still an open question.
Construction spending declined 2.1% m/m in May (Briefing.com consensus +1.1%) on the heels of a downwardly revised 3.5% decline (from -2.9%) in April.
The key takeaway from the report is that total construction spending has decelerated and is now up just 0.3% yr/yr, with a 4.7% yr/yr increase in total public construction spending helping to offset a 1.2% yr/yr decline in total private construction spending.
The ADP Employment Change report for June showed an estimated 2.369 million positions were added to private-sector payrolls. This was less than the Briefing.com consensus of 3.75 million. The data from May was revised higher to 3.065 million from -2.76 million.
Looking ahead to Thursday, investors will receive the Employment Situation Report for June, the weekly Initial and Continuing Claims report, the Trade Balance report for May, and the Factory Orders report for May.
Nasdaq Composite +13.2% YTD
S&P 500 -3.6% YTD
Dow Jones Industrial Average -9.8% YTD
Russell 2000 -14.5% YTD
Market Snapshot
Dow 25734.99 -77.91 (-0.30%)
Nasdaq 10154.63 +95.86 (0.95%)
SP 500 3115.73 +15.57 (0.50%)
10-yr Note -2/32 0.677
NYSE Adv 1515 Dec 1417 Vol 928.7 mln
Nasdaq Adv 1497 Dec 1855 Vol 4.5 bln
Industry Watch
Strong: Utilities, Communication Services, Real Estate
Weak: Energy, Materials, Financials
Moving the Market
-- Market trades mixed to start the third quarter
-- COVID-19 vaccine being developed in part by Pfizer (PFE) reportedly shows promising signs
-- June ISM Manufacturing Index returns to expansionary mode, ADP report shows back-to- back months of private-sector payroll gains
-- Trump administration is preparing global sanctions against China over its treatment of Muslim minorities, according to Bloomberg
WTI crude gains but energy stocks lag
01-Jul-20 15:25 ET
Dow +6.32 at 25819.22, Nasdaq +119.55 at 10178.32, S&P +22.57 at 3122.73
[BRIEFING.COM] The S&P 500 is trading at session highs with a 0.8% gain. The Russell 2000, however, is down 0.7%.
One last look at the S&P 500 sectors shows real estate (+2.7%), utilities (+2.4%), and communication services (+2.4%) up more than 2.0%, while the energy (-2.0%) and financials (-0.9%) sectors lag with noticeable losses.
WTI crude futures rose $0.48 (+1.2%) to $39.76/bbl.
Market wraps up tremendous quarter on positive note
30-Jun-20 16:20 ET
Dow +217.08 at 25812.90, Nasdaq +184.61 at 10058.77, S&P +47.05 at 3100.16
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 gained 1.5% on Tuesday to close out a tremendous second quarter, while the Nasdaq Composite (+1.9%) pulled ahead amid strength in its mega-cap and semiconductor components. The Dow Jones Industrial Average increased 0.9%, and the Russell 2000 increased 1.4%.
The gains were broad, with all 11 S&P 500 sectors closing in positive territory. Eight sectors rose at least 1.0%, including a 2% gain in the energy sector (+2.2%), while the utilities sector (+0.4%) lagged. The most influential gains, though, were found in the mega-cap stocks, including Tesla (TSLA 1079.81, +70.46, +7.0%) and NVIDIA (NVDA 379.91, +11.91, +3.2%).
TSLA shares surged in anticipation of the company's Q2 delivery results this week, while NVDA shares rose alongside the broader semiconductor space after Micron (MU 51.52, +2.38, +4.8%) and Xilinx (XLNX 98.39, +6.43, +7.0%) provided upbeat guidance. Micron also topped quarterly expectations. The Philadelphia Semiconductor Index rose 2.7%.
On the downside, Boeing (BA 183.30, -11.19, -5.8%) was a noticeable drag on the Dow after Norwegian Air and BOC Aviation reportedly canceled plane orders from the company. Note, BA shares did climb 14% on Monday. Wells Fargo (WFC 25.60, -0.10, -0.4%), meanwhile, said it expects to reduce its Q3 dividend following its stress test results.
In M&A activity, Uber (UBER 31.08, +1.45, +4.9%) reportedly started discussions to acquire Postmates for $2.6 billion, while lululemon athletica (LULU 312.01, +17.66, +6.0%) agreed to acquire in-home fitness company MIRROR for $500 million.
Separately, Fed Chair Powell and Treasury Secretary Mnuchin testified before the House Financial Services Committee about the measures taken to support the economy. Market reaction was muted, as nothing new was particularly said.
U.S. Treasuries finished near their starting positions. The 2-yr yield declined one basis point to 0.15%, and the 10-yr yield increased two basis points to 0.65%. The U.S. Dollar Index decreased 0.2% to 97.38. WTI crude declined 1.0%, or $0.39, to $39.28/bbl.
Reviewing Tuesday's economic data:
The Conference Board's Consumer Confidence Index for June increased to 98.1 (Briefing.com consensus 92.0) from a downwardly revised 85.9 (from 86.6) for May.
The improvement is welcome, yet the key takeaway from the report is that the index remains well below the February reading of 132.6, which predated the COVID-19 shutdown effort.
The Chicago PMI for June increased to 36.6 (Briefing.com consensus 45.0) from 32.3 in May.
The S&P Case-Shiller Home Price Index increased 4.0% in April (Briefing.com consensus 4.1%) following a 3.9% increase in March.
Looking ahead to Wednesday, investors will receive the ISM Manufacturing Index for June, the ADP Employment Change report for June, the FOMC Minutes from the June meeting, Construction Spending for May, the weekly MBA Mortgage Applications Index, and auto and truck sales for June.
Nasdaq Composite +12.1% YTD
S&P 500 -4.0% YTD
Dow Jones Industrial Average -9.6% YTD
Russell 2000 -13.6% YTD
Market Snapshot
Dow 25812.90 +217.08 (0.85%)
Nasdaq 10058.77 +184.61 (1.87%)
SP 500 3100.16 +47.05 (1.54%)
10-yr Note -25/32 0.662
NYSE Adv 1898 Dec 1036 Vol 1.2 bln
Nasdaq Adv 2258 Dec 1105 Vol 4.4 bln
Industry Watch
Strong: Energy, Information Technology, Consumer Discretionary, Health Care
Weak: Utilities
Moving the Market
-- Stock market gains in broad-based advance to close out tremendous quarter
-- Mega-caps exert influential leadership while semiconductor stocks rally following some positive earnings-related news
-- Boeing (BA) drags on Dow after reportedly receiving plane order cancellations
WTI crude declines 1%
30-Jun-20 15:25 ET
Dow +76.75 at 25672.57, Nasdaq +148.52 at 10022.68, S&P +32.91 at 3086.02
[BRIEFING.COM] The S&P 500 is up 1.1% and is on track to end the quarter with a 19.4% gain.
One last look at the S&P 500 sectors shows all 11 groups trading higher. The information technology (+1.4%), consumer discretionary (+1.3%), and health care (+1.2%) sectors outperform, while the utilities (+0.1%) and consumer staples (+0.1%) sectors are up just 0.1%.
WTI crude futures settled lower by $0.39 (-1.0%) to $39.28/bbl.
Stocks rebound to start the week
29-Jun-20 16:20 ET
Dow +580.25 at 25595.82, Nasdaq +116.93 at 9874.16, S&P +44.19 at 3053.11
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 increased 1.5% on Monday in a broad-based advance to recoup some of last week's decline. The Dow Jones Industrial Average (+2.3%) and Russell 2000 (+3.1%) outperformed the benchmark index, while the Nasdaq Composite (+1.2%) underperformed.
All 11 S&P 500 sectors finished in positive territory, led by the industrials sector (+3.2%) amid leadership from Boeing (BA 194.49, +24.48, +14.4%), which resumed 737 MAX flights for certification. The health care sector (+0.9%) was the lone sector that rose less than 1.0%.
Value-oriented stocks edged out growth stocks today after data showed pending home sales rebound 44.3% m/m in May (Briefing.com consensus +18.0%), which extended a trend of data depicting a rebound in the economy. The market pushed toward session highs after its 10:00 a.m. ET release and proceeded to drift higher the rest of the session.
In other corporate news, more companies halted ad spending from Facebook (FB 220.64, +4.56, +2.1%) due to concerns about insufficient efforts to police misinformation and hateful content. FB shares still finished higher after being down as much as 4.2% early in the session.
Microsoft (MSFT 198.44, +2.11, 1.0%) and PepsiCo (PEP 131.08, +2.15, +1.7%) reportedly targeted only Facebook's platforms, while Starbucks (SBUX 73.48, +1.91, +2.7%) and Coca-Cola (KO 44.36, +0.79, +1.8%) paused all social media spending.
Given the positive bias in stocks, the coronavirus resurgence was less in focus today even as New Jersey and parts of California scaled back reopening efforts. The Treasury market appeared more in tune with the threat of reduced economic activity, as bonds held firm throughout the session.
The 2-yr yield was unchanged at 0.16%, and the 10-yr yield was unchanged at 0.64%. The U.S. Dollar Index increased 0.1% to 97.51. WTI crude rose 3.1%, or $1.18, to $39.67/bbl.
Looking ahead to Tuesday's economic calendar, investors will receive the Conference Board's Consumer Confidence Index for June, the Chicago PMI for June, and the S&P Case-Shiller Home Price Index for April.
Nasdaq Composite +10.1% YTD
S&P 500 -5.5% YTD
Dow Jones Industrial Average -10.3% YTD
Russell 2000 -14.8% YTD
Market Snapshot
Dow 25595.82 +580.25 (2.32%)
Nasdaq 9874.16 +116.93 (1.20%)
SP 500 3053.11 +44.19 (1.47%)
10-yr Note +1/32 0.633
NYSE Adv 2227 Dec 711 Vol 965.2 mln
Nasdaq Adv 2235 Dec 1147 Vol 4.3 bln
Industry Watch
Strong: Industrials, Communication Services, Materials
Weak: Health Care
Moving the Market
-- Stocks close at session highs, recoup some of last week's decline
-- Boeing (BA) shares rose 14% on news that it resumed 737 MAX flights for certification
-- Pending home sales rebound 44.3% m/m in May (Briefing.com consensus +18.0%)
WTI crude closes just below $40/bbl
29-Jun-20 15:30 ET
Dow +449.75 at 25465.32, Nasdaq +64.07 at 9821.30, S&P +29.32 at 3038.24
[BRIEFING.COM] The S&P 500 is up 1.0% to trade slightly below session highs (+1.4%).
One last look at the S&P 500 sectors shows industrials (+2.7%) up nearly 3% and firmly atop the standings while six other sectors are up at least 1.0%. The health care (+0.4%), financials (+0.5%), and information technology (+0.5%) sectors underperform.
WTI crude futures settled higher by $1.18 (+3.1%) to $39.67/bbl.
Market stung by multiple thorns
26-Jun-20 16:20 ET
Dow -730.05 at 25015.57, Nasdaq -259.78 at 9757.23, S&P -74.71 at 3008.92
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 dropped 2.4% on Friday in a risk-off session amid the continued rise in new coronavirus cases and industry-specific issues for the banks and social media companies. The Dow Jones Industrial Average (-2.8%), Nasdaq Composite (-2.6%), and Russell 2000 (-2.4%) also fell more than 2.0%.
All 11 S&P 500 sectors closed in negative territory, with the financials (-4.3%) and communication services (-4.5%) sectors falling more than 4%. The utilities sector declined the least with a 1.0% decline.
The U.S. hit another daily record for new coronavirus cases, prompting hotspots like Texas and Florida to scale back their reopening efforts. The reduced reopening activity threatens to undermine consumer sentiment and personal spending, the latter of which rebounded 8.2% m/m in May (Briefing.com consensus +7.0%).
Unfortunately, the market was also burdened by other developments. Banks were pressured by the Fed's decision to require them to suspend share repurchases and cap dividend payments in the third quarter (out of an abundance of caution), while more companies suspended ad spending on Facebook (FB 216.08, -19.60, -8.3%).
Verizon (VZ 53.16, -1.12, -2.1%), Unilever (UN 54.51, -0.32, -0.6%), and Honda Motor (HMC 25.33, -0.92, -3.5%) joined the growing list of companies that paused spending, which was a wake-up call for companies that derive revenue from advertising in how they handle misconduct within their platforms.
Facebook shares fell 8%, but Alphabet (GOOG 1359.90, -81.43, -5.7%) and Twitter (TWTR 29.05, -2.32, -7.4%) also took it on the chin.
In other developments, Nike (NKE 93.67, -7.73, -7.6%) missed top and bottom-line estimates, Cisco (CSCO 46.31, +1.09, +2.4%) was the lone Dow component to close higher amid news that the Trump administration is thinking about helping the company in 5G development, and the yearly rebalancing of the FTSE Russell indices happened at the close.
Quarter-end rebalancing might have played a part in today's decline, too, as investors re-allocated money into bonds. The 2-yr yield was unchanged at 0.16%, while the 10-yr yield declined four basis points to 0.64%. The U.S. Dollar Index was little changed at 97.45. WTI crude declined 0.7%, or $0.26, to $38.49/bbl.
Reviewing Friday's economic data:
Personal income declined 4.2% m/m in May (Briefing.com consensus -6.0%) following a 10.8% increase in April while personal spending surged 8.2% (Briefing.com consensus 7.0%) after declining 12.6% in April. The PCE Price Index and core-PCE Price Index, which excludes food and energy, were both up 0.1% and slightly ahead of consensus estimates.
The key takeaway from the report is that the personal savings rate, as a percentage of disposable income, remains exceptionally high at 23.2%. Granted that's down from 32.2% in April, but a high savings rate means less spending activity, which means less economic growth.
The final University of Michigan Index of Consumer Sentiment for June slipped to 78.1 (Briefing.com consensus 78.8) from the preliminary reading of 78.9. The final reading for May was 72.3, so the sentiment level is still higher than the prior month.
The key takeaway from the report is the contention that consumer attitudes and demand will be influenced by the progress -- or lack thereof -- against the coronavirus.
Looking ahead, investors will receive the Pending Home Sales report for May on Monday.
Nasdaq Composite +8.7% YTD
S&P 500 -6.9% YTD
Dow Jones Industrial Average -12.3% YTD
Russell 2000 -17.4% YTD
Market Snapshot
Dow 25015.57 -730.05 (-2.84%)
Nasdaq 9757.23 -259.78 (-2.59%)
SP 500 3008.92 -74.71 (-2.42%)
10-yr Note +4/32 0.649
NYSE Adv 559 Dec 2319 Vol 3.2 bln
Nasdaq Adv 732 Dec 2600 Vol 6.8 bln
Industry Watch
Strong: Utilities
Weak: Financials, Communication Services, Energy
Moving the Market
-- Market loses nearly 3%, stung by multiple thorns
-- U.S. tallies another daily record in new coronavirus cases, Texas and Florida scale back reopening efforts
-- Fed will require banks to suspend share repurchases and cap dividend payments in the third quarter to retain resiliency
-- More companies suspend ad spending on Facebook (FB)
WTI crude posts modest decline amid equity weakness
26-Jun-20 15:30 ET
Dow -741.62 at 25004.00, Nasdaq -230.29 at 9786.72, S&P -73.68 at 3009.95
[BRIEFING.COM] The S&P 500 is down 2.4% to trade at session lows.
One last look at the S&P 500 sectors shows red across the board with every sector down more than 1%. The financials (-4.5%) and communication services (-4.2%) are down more than 4%, while the real estate sector (-1.4%) is down the least with a 1.4% decline.
WTI crude futures settled lower by $0.26 (-0.7%) to $38.49/bbl.
Market closes at session highs, led by financials
25-Jun-20 16:15 ET
Dow +299.66 at 25745.62, Nasdaq +107.84 at 10017.01, S&P +33.43 at 3083.63
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 gained 1.1% on Thursday, recouping some of yesterday's decline, amid solid leadership from the financials sector (+2.7%). The Dow Jones Industrial Average (+1.2%) and Nasdaq Composite (+1.1%) kept pace with the benchmark index, while the Russell 2000 (+1.7%) outperformed.
The session started on a lower note following news that the U.S. tallied a daily record for new coronavirus cases on Wednesday. The S&P 500 fell 0.9%, but it quickly bounced back into positive territory after nearly touching its 200-day moving average (3021) and was led higher by shares of financial companies after regulators eased restrictions on the Volcker Rule for banking institutions.
Financials stocks took the news in stride, as the modification allows banks to increase their investments in a broad set of venture capital funds, but the major indices proceeded to drift near their flat lines for a good portion of the day. The market, however, broke out late in the session and carried nearly every sector into positive territory, except the utilities sector (-1.2%).
There was no news item that contributed to the breakout, but it might have been fueled by some short covering activity from investors anticipating more weakness in the market due to the negative coronavirus headlines.
Notably, Texas and Florida announced a temporary pause of additional reopening phases, CDC officials told reporters that COVID-19 cases in the U.S. might be ten times higher than currently reported, and Walt Disney (DIS 111.36, -0.71, -0.6%) delayed its reopening date of Disneyland past July 17.
Weekly jobless claims also remained high, decreasing by just 60,000 to 1.480 million (Briefing.com consensus 1.250 million) for the week ending June 20. The good news was that continuing claims declined noticeably by 767,000 to 19.522 million.
In other corporate news, Boeing (BA 174.88, -1.81, -1.0%) was downgraded to Sell from Hold at Berenberg, and KB Home (KBH 29.38, -3.95, -11.9%) disappointed investors with its quarterly results.
U.S. Treasuries posted modest gains for the second straight session. The 2-yr yield declined two basis points to 0.16%, and the 10-yr yield declined one basis point to 0.67%. The U.S. Dollar Index increased 0.2% to 97.35. WTI crude increased 2.0%, or $0.75, to $38.75/bbl.
Reviewing Thursday's economic data:
Initial claims for the week ending June 20 decreased 60,000 to a still-high 1.480 million (Briefing.com consensus 1.250 million). Continuing claims for the week ending June 13 plunged by 767,000 to 19.522 million.
The key takeaway from the report is that, while it was nice to see the big drop in continuing claims, it remains alarming still to see such high levels of initial claims, particularly since the reacceleration in coronavirus case counts and a rethink of reopening efforts are going to trigger worries about another wave of layoffs.
Durable Goods Orders for May increased 15.8% (Briefing.com consensus 11.6%) on the heels of a downwardly revised 18.1% decline (from -17.7%) in April. Excluding transportation, orders rose 4.0% (Briefing.com consensus 2.1%) following a downwardly revised 8.2% decline (from -7.7%) in April.
The key takeaway from the report is that order activity clearly rebounded in May, yet new order levels year to date are 13.6% lower than the same period a year ago on a not seasonally adjusted basis.
The third estimate for Q1 GDP was unchanged at -5.0% (Briefing.com consensus -5.0%) while the GDP Price Deflator was unchanged at 1.4% (Briefing.com consensus 1.4%).
The key takeaway from this report is that it is insignificant for the market given its dated nature.Personal consumption expenditures growth was unchanged from the second estimate at -6.8%.
The advance goods trade deficit totaled $74.3 bln in May following a $70.7 bln deficit in April. Advance retail inventories declined 6.1% in May after decreasing 3.8% in April. Advance wholesale inventories decreased 1.2% in May after increasing 0.2% in April.
Looking ahead, investors will receive the Personal Income and Spending report for May and the revised University of Michigan Index of Consumer Sentiment for June on Friday.
Nasdaq Composite +11.6% YTD
S&P 500 -4.6% YTD
Dow Jones Industrial Average -9.8% YTD
Russell 2000 -15.3% YTD
Market Snapshot
Dow 25745.62 +299.66 (1.18%)
Nasdaq 10017.01 +107.84 (1.09%)
SP 500 3083.63 +33.43 (1.10%)
10-yr Note 0/32 0.683
NYSE Adv 1876 Dec 1037 Vol 966.8 mln
Nasdaq Adv 2252 Dec 1071 Vol 4.6 bln
Industry Watch
Strong: Financials, Energy, Information Technology, Materials
Weak: Utilities, Consumer Discretionary
Moving the Market
-- Stock market breaks out to session highs late in the day on no specific news item
-- Volcker rule relaxed, financial stocks rally
-- S&P 500 found support at 200-day moving average (3021)
-- Coronavirus concerns muted
WTI crude gains 2%
25-Jun-20 15:25 ET
Dow +235.45 at 25681.41, Nasdaq +71.54 at 9980.71, S&P +26.51 at 3076.71
[BRIEFING.COM] The S&P 500 is now up 0.9% to trade at session highs.
One last look at the S&P 500 sectors shows financials (+2.6%) firmly in the lead with a 2.6% gain, followed by the energy sector (+1.5%). The utilities (-1.3%) and consumer discretionary (unch) sectors underperform.
WTI crude futures settled today's session higher by $0.75 (+2.0%) to $38.75/bbl.
Stock market retreats on renewed coronavirus fears
24-Jun-20 16:15 ET
Dow -710.16 at 25445.96, Nasdaq -222.20 at 9909.17, S&P -80.96 at 3050.20
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The major indices fell more than 2% on Wednesday amid renewed concerns about the coronavirus and its potential impact on reopening activity. The S&P 500 lost 2.6%, the Dow Jones Industrial Average lost 2.7%, the Nasdaq Composite lost 2.2%, and the Russell 2000 lost 3.5%.
All 11 S&P 500 sectors closed lower, and all 30 Dow components closed lower. The energy (-5.5%), industrials (-3.5%), and financials (-3.5%) sectors were hit the hardest, while the utilities sector (-0.9%) was the lone sector that declined less than 1.0%.
Several states, including Texas and California, continued to report daily records in new coronavirus cases and hospitalizations, which forced governments, companies, and citizens to react in preemptive manners that the market feared would slow down the pace of a recovery.
Notably, the S&P 500 fell to session lows (-3.2%) shortly after New York Governor Cuomo announced that the tri-state area will be imposing a 14-day quarantine on travelers coming from coronavirus hotspots. The EU was also reported to be considering its own restrictions on U.S. travelers, banning them from entering when it relaxes its border restrictions on July 1.
It could be argued that the extent of today's decline was exacerbated by the market's overextended set-up. The Nasdaq was up for eight straight days, rising 6.7% to record highs in the process, while the S&P 500 was up in six of the prior eight sessions despite similar reports of the rising rate of coronavirus in several states.
While there were positive developments, such as rebounding economic data, during that stretch, there were few upbeat reports today.
Other negative-sounding news from today included the U.S. considering $3.1 billion in new export tariffs on European goods, the EU planning to proceed with its digital tax, Apple (AAPL 360.06, -6.47, -1.8%) planning to re-close seven stores in Houston, and Walt Disney (DIS 112.07, -4.52, -3.9%) employees reportedly petitioning the company to delay its Florida reopening.
U.S. Treasuries finished with modest gains amid the weakness in equities. The 2-yr yield declined one basis point to 0.18%, and the 10-yr yield declined two basis points to 0.69%. The U.S. Dollar Index rose 0.6% to 97.21. WTI crude fell 6.2%, or $2.50, to $37.88/bbl.
Reviewing Wednesday's economic data:
The FHFA Housing Price Index for April increased 0.2% following a 0.1% increase in March.
The weekly MBA Mortgage Applications Index fell 8.7% following an 8.0% spike in the prior week.
Looking ahead to Thursday, investors will receive the weekly Initial and Continuing Claims report, Durable Goods Orders for May, the third estimate for Q1 GDP, and the advance May reports for International Trade in Goods, Retail Inventories, and Wholesale Inventories.
Nasdaq Composite +10.4% YTD
S&P 500 -5.6% YTD
Dow Jones Industrial Average -10.8% YTD
Russell 2000 -16.7% YTD
Market Snapshot
Dow 25445.96 -710.16 (-2.72%)
Nasdaq 9909.17 -222.20 (-2.19%)
SP 500 3050.20 -80.96 (-2.59%)
10-yr Note +2/32 0.695
NYSE Adv 343 Dec 2558 Vol 1.1 bln
Nasdaq Adv 601 Dec 2753 Vol 5.5 bln
Industry Watch
Strong: Consumer Staples, Utilities
Weak: Financials, Energy, Industrials, Real Estate
Moving the Market
-- Stock market declines more than 2% amid renewed coronavirus/recovery concerns
-- Several states continued to report daily records in new coronavirus cases and hospitalizations
-- New York tri-state area to enforce a 14-day quarantine on travelers coming from coronavirus hotspots
WTI crude falls more than 6%
24-Jun-20 15:25 ET
Dow -597.06 at 25559.06, Nasdaq -193.86 at 9937.51, S&P -70.36 at 3060.80
[BRIEFING.COM] The S&P 500 is trading lower by 2.2%, which is better than the 3.2% decline from its session low.
One last look at the S&P 500 sectors shows the energy (-4.7%), real estate (-3.1%), financials (-2.9%), and industrials (-2.9%) sectors bearing the brunt of the damage, while the utilities sector is down just 0.7%.
WTI crude futures settled lower by $2.50 (-6.2%) to $37.88/bbl.
Nasdaq rises for eighth straight day
23-Jun-20 16:20 ET
Dow +131.14 at 26156.12, Nasdaq +74.89 at 10131.37, S&P +13.43 at 3131.16
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 gained 0.4% on Tuesday amid more indications of an economic recovery, while the Nasdaq Composite (+0.7%) pulled ahead to close at another record high for its eighth straight advance. The Dow Jones Industrial Average (+0.5%) and Russell 2000 (+0.4%) also posted modest gains, but the market did close near session lows.
All 11 S&P 500 sectors started the session sharply higher after President Trump clarified that the U.S.-China trade deal was still intact and June flash Manufacturing PMIs out of Europe improved more than expected. There was brief weakness in the overnight futures market after trade advisor Navarro said the trade deal with China was over, which he later said was taken out of context.
Shortly after the open, data showed new home sales in the U.S. rebound 16.6% m/m in May to a seasonally adjusted annual rate of 676,000 (Briefing.com consensus 635,000), which supported the market's expectations for an economic recovery. There was a lack of follow-through buying interest, though, as the market traded sideways for most of the day.
Within the S&P 500, the consumer discretionary (+1.0%), information technology (+0.7%), and communication services (+0.6%) sectors advanced the most amid noticeable, and persistent, gains in its mega-cap components, including Apple (AAPL 366.53, +7.66, +2.1%) and Amazon (AMZN 2764.41, +50.50, +1.9%).
Conversely, the utilities (-1.1%) and real estate (-0.4%) sectors closed lower after slipping into negative territory in early action, while the consumer staples (-0.1%) and industrials (unch) sectors squandered gains amid some late selling in the broader market.
There was no confirmed catalyst for the minor slippage, but it appeared to be rooted in part to a lack of conviction from buyers given the narrow leadership in the mega-caps. Others pointed to Treasury Secretary Mnuchin warning that decoupling from China is possible if their trading relationship remains uneven.
Elsewhere, U.S. Treasuries finished near their flat lines in another lackluster session in the bond market, while gold futures rose 0.9% to $1782.00/ozt. The 2-yr yield was unchanged at 0.19%, and the 10-yr yield increased one basis point to 0.71%. The U.S. Dollar Index declined 0.3% to 96.72. WTI crude declined 0.5% to $40.38/bbl.
Reviewing Tuesday's economic data:
New home sales increased sharply in May, rising 16.6% m/m to a seasonally adjusted annual rate of 676,000 (Briefing.com consensus 635,000). The increase came on the heels of a sharp downward revision for April to 580,000 from 623,000.
The key takeaway from the report is that sales activity bounced back smartly in May, reflecting a welcome pickup in contract signings as COVID-19 shutdown pressures lessened. This understanding should foster expectations that sales activity will continue to improve in coming months given the tight supply of existing homes for sale, low mortgage rates, and pent-up demand.
Looking ahead, investors will receive the FHFA Housing Price Index for June and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +12.9% YTD
S&P 500 -3.1% YTD
Dow Jones Industrial Average -8.4% YTD
Russell 2000 -13.7% YTD
Market Snapshot
Dow 26156.12 +131.14 (0.50%)
Nasdaq 10131.37 +74.89 (0.74%)
SP 500 3131.16 +13.43 (0.43%)
10-yr Note -2/32 0.721
NYSE Adv 1677 Dec 1232 Vol 1.0 bln
Nasdaq Adv 1807 Dec 1516 Vol 5.6 bln
Industry Watch
Strong: Consumer Discretionary, Information Technology, Communication Services
Weak: Utilities, Real Estate, Consumer Staples
Moving the Market
-- Stock market closes higher but near session lows; Nasdaq sets new record high
-- President Trump reaffirms that U.S.-China trade deal is still intact, clarifying a previous comment from trade advisor Navarro
-- June flash manufacturing PMIs out of Europe and new home sales for May in the U.S. rebound more than expected
WTI crude gives up intraday gain, closes lower
23-Jun-20 15:25 ET
Dow +185.82 at 26210.80, Nasdaq +90.84 at 10147.32, S&P +20.51 at 3138.24
[BRIEFING.COM] The S&P 500 is up 0.7%, while the Nasdaq trades higher by 1.0% as it vies for its eight straight day of gains.
One last look at the S&P 500 sectors shows consumer discretionary (+1.4%), information technology (+1.1%), and communication services (+1.0%) trading higher by at least 1.0%. The utilities (-1.1%) and real estate (-0.1%) sectors still trade lower.
WTI crude futures settled today's session lower by $0.22 (-0.5%) to $40.38/bbl, giving up an intraday gain.
Mega-cap tech powers Nasdaq to another record close
22-Jun-20 16:20 ET
Dow +153.50 at 26024.98, Nasdaq +110.35 at 10056.48, S&P +20.12 at 3117.73
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 gained 0.7% on Monday, but it was the Nasdaq Composite (+1.1%) that continued to steal the spotlight. The tech-sensitive index closed at another record high and rose for the seventh straight day amid strength in the mega-cap technology stocks. The Dow Jones Industrial Average increased 0.6%, and the Russell 2000 increased 1.1%.
Notably, Apple (AAPL 358.87, +9.15, +2.6%) and Microsoft (MSFT 200.57, +5.42, +2.8%) gained more than 2.5%, hit fresh all-time highs, and boosted the top-weighted S&P 500 information technology sector (+1.9%) to the top spot today. The utilities sector (+1.3%) followed suit, while the health care (-0.4%) and financials (-0.5%) sectors lagged.
Apple received a lot of attention today due to its annual Worldwide Developers Conference, although most of the stock's gains came prior to the widely-watched event. On a related note, Cowen raised its price target on AAPL to $400 from $335 before the open. Microsoft and other tech giants rose on no specific news catalysts.
As for the coronavirus situation, the U.S. exceeded 30,000 new cases on Saturday for its highest daily level since May, but some of the hotspots in the country did report a lower count on Sunday. Vice President Pence also called attention to the increasing rate of infections among younger people, according to ABC News.
In other developments, Nike (NKE 99.51, +3.73, +3.9%) received a price target increase to $112 from $96 at Piper Sandler, American Airlines (AAL 14.92, -1.08, -6.8%) announced plans to raise $3.5 billion in capital through stock and bond sales, and Virgin Galactic (SPCE 17.39, +2.39, +15.9%) partnered with NASA for a private orbital astronaut readiness program.
U.S. Treasuries finished little changed after starting the session with small gains. The 2-yr yield was unchanged at 0.19%, and the 10-yr yield increased one basis point to 0.71%. The U.S. Dollar Index declined 0.6% to 97.09. WTI crude futures rose 2.2%, or $0.86, to $40.60/bbl.
Monday's economic data was limited to the Existing Home Sales report for May:
Existing home sales declined 9.7% m/m in May to a seasonally adjusted annual rate of 3.91 million (Briefing.com consensus 3.98 million). May marked the third straight month of a decline in sales.
The key takeaway from the report is that closed sales in May reflect most contract signings completed in March and April, which is when the brunt of the COVID-19 shutdown effects were felt. Accordingly, the disappointment over weak sales in May should be mitigated by a belief that coming months will feature stronger sales activity.
Looking ahead, investors will receive the New Home Sales report for May on Tuesday.
Nasdaq Composite +1.1% YTD
S&P 500 -3.5% YTD
Dow Jones Industrial Average -8.8% YTD
Russell 2000 -14.1% YTD
Market Snapshot
Dow 26024.98 +153.50 (0.59%)
Nasdaq 10056.48 +110.35 (1.11%)
SP 500 3117.73 +20.12 (0.65%)
10-yr Note -1/32 0.705
NYSE Adv 1532 Dec 1372 Vol 1.1 bln
Nasdaq Adv 1847 Dec 1482 Vol 4.4 bln
Industry Watch
Strong: Information Technology, Utilities, Consumer Discretionary
Weak: Health Care, Financials, Real Estate, Consumer Staples
Moving the Market
-- Mega-cap technology stocks boost Nasdaq to new record close
-- Apple's (AAPL) Worldwide Developers Conference received plenty of attention
-- Market remained level-headed about the coronavirus situation
WTI crude futures close above $40/bbl
22-Jun-20 15:25 ET
Dow +85.01 at 25956.49, Nasdaq +76.24 at 10022.37, S&P +12.11 at 3109.72
[BRIEFING.COM] The S&P 500 has come down slightly from session highs with a current 0.4% gain. Vice President Pence warned that young people are catching COVID-19 at an increasing rate, according to ABC News, although it's unclear if that caused the recent slippage since this occurrence was already in the news.
One last look at the S&P 500 sectors shows information technology (+1.5%) and utilities (+1.0%) up the most, while the real estate (-0.6%), financials (-0.6%), and consumer staples (-0.5%) sectors weigh on the benchmark index.
WTI crude futures settled today's session higher by $0.86 (+2.2%) to $40.60/bbl.
S&P 500 trims weekly gain, but not Nasdaq
19-Jun-20 16:15 ET
Dow -208.64 at 25871.48, Nasdaq +3.07 at 9946.13, S&P -17.60 at 3097.61
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.6% on this quadruple-witching expiration Friday, as renewed concerns about a recovery and the coronavirus tempered the market's early enthusiasm. The Dow Jones Industrial Average lost 0.8%, and the Russell 2000 lost 0.6%. The Nasdaq Composite (+0.03%), however, eked out an incremental gain.
Today's price action was relatively volatile. The S&P 500 gained as much as 1.3% shortly after the open but then declined as much as 1.0% into negative territory by the afternoon. The following coronavirus-related developments were attributed to the intraday decline:
Apple (AAPL 349.72, -2.01, -0.6%) will reportedly re-close some stores in four states due to COVID risks. Arizona, Florida, and California reported noticeable increases in daily coronavirus cases. Boston Fed President Rosengren said a second-half economic rebound will likely be slower than initially hoped due to the continued spread of the coronavirus.
The market closed off its lows, but most sectors still finished lower, including the S&P 500 utilities (-3.1%) and energy (-1.7%) sectors at the bottom of the standings. The health care sector (+0.9%) was the lone sector in the green amid gains in its biotech components. The iShares NASDAQ Biotechnology ETF (IBB 137.85, +4.36) rose 3.3%.
CarMax (KMX 91.78, -6.13, -6.3%) was among the weakest performers in the S&P 500 after the company provided mixed earnings results. Shares initially traded higher after the company said sales have progressively improved since hitting a trough in early April.
U.S. Treasuries ended the session near their flat lines after trading lower in early action. The 2-yr yield and the 10-yield remained unchanged at 0.19% and 0.70%, respectively. The U.S. Dollar Index increased 0.3% to 97.67. WTI crude rose 2.5% (+$0.95) to $39.74/bbl.
Friday's economic data was limited to the Current Account Balance for the first quarter, which narrowed to $104.2 billion (Briefing.com consensus -$99.8 billion) from $109.8 billion in the fourth quarter of 2019. Looking ahead, investors will receive the Existing Home Sales report for May on Monday.
Nasdaq Composite +10.9% YTD
S&P 500 -4.1% YTD
Dow Jones Industrial Average -9.4% YTD
Russell 2000 -15.0% YTD
Market Snapshot
Dow 25871.48 -208.64 (-0.80%)
Nasdaq 9946.13 +3.07 (0.03%)
SP 500 3097.61 -17.60 (-0.56%)
10-yr Note +1/32 0.695
NYSE Adv 990 Dec 1868 Vol 3.5 bln
Nasdaq Adv 1548 Dec 1792 Vol 6.0 bln
Industry Watch
Strong: Health Care
Weak: Utilities, Industrials, Real Estate, Energy
Moving the Market
-- Market tamed by coronavirus/recovery concerns
-- Arizona, Florida, and California report noticeable increases in COVID-19 cases
-- Apple (AAPL) reportedly planning to temporarily re-close some stores again due to COVID risks
-- Boston Fed President Rosengren offers cautious outlook on economy
WTI crude rises toward $40 per barrel
19-Jun-20 15:25 ET
Dow -40.19 at 26039.93, Nasdaq +17.72 at 9960.78, S&P -1.75 at 3113.46
[BRIEFING.COM] The S&P 500 has battled back to its flat line, as investors buy the intraday dip.
One last look at the S&P 500 sectors before the close shows health care (+1.0%), materials (+0.3%), and consumer discretionary (+0.2%) trading higher, while the industrials (-0.6%), utilities (-0.6%), and financials (-0.5%) sectors lag.
WTI crude settled today's session higher by $0.95 (+2.5%) to $39.74/bbl.
Stock Market Update
Major indices, except Nasdaq, close lower
17-Jun-20 16:20 ET
Dow -170.37 at 26119.63, Nasdaq +14.66 at 9910.54, S&P -11.25 at 3113.36
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.4% on Wednesday, falling for the first time in four sessions amid lingering angst about a U.S. recovery and equity valuations. The Dow Jones Industrial Average lost 0.7%, and the Russell 2000 lost 1.8%. The Nasdaq Composite, however, increased 0.2%.
It was a relatively benign decline for the benchmark index considering that eight of the 11 S&P 500 sectors finished in negative territory. The energy (-3.3%) and financials (-1.4%) sectors declined noticeably, while the communication services (+0.1%), consumer discretionary (+0.1%), and information technology (+0.03%) sectors barely finished higher.
The market's recovery optimism was kept in check after several states (and Beijing) continued to report an uptick in COVID-19 cases, Oracle (ORCL 51.52, -3.07, -5.6%) disclosed that customers within some of its hardest hit verticals postponed some orders, and Norwegian Cruise Line (NCLH 19.20, -1.76, -8.4%) extended its suspension of cruise voyages through Sept. 30.
The S&P 500 was trading higher in the afternoon despite any growth concerns but notably slipped to session lows (-0.5%) shortly after Jeremy Grantham, a closely-followed market pundit, told CNBC that the goal number for equity exposure in the U.S. is zero due to the market's bubble-like characteristics.
It's one man's view, but one that some investors wouldn't disagree with given the grim economic environment. Domestically-oriented small-caps underperformed amid the recovery angst, but losses were mitigated by a recognition that the Fed will continue to aggressively support financial conditions. Investors siding with Mr. Grantham will likely have to bet against the Fed.
On a related note, Fed Chair Powell concluded his semiannual monetary policy testimony on Wednesday. Mr. Powell reminded lawmakers of their spending powers, reiterating that Congress should do more to support the economy. Market reaction was muted.
U.S. Treasuries ended the session slightly higher after trading in a narrow range. The 2-yr yield declined two basis points to 0.19%, and the 10-yr yield declined two basis points to 0.73%. The U.S. Dollar Index increased 0.2% to 97.13. WTI crude declined 0.9% to $37.93/bbl amid an unexpected increase in weekly crude inventories.
Reviewing Wednesday's economic data:
Total housing starts increased 4.3% m/m in May to a seasonally adjusted annual rate of 974,000 units. That was well below the Briefing.com consensus estimate of 1.170 million and down 23.2% yr/yr. Total building permits increased 14.4% m/m to a seasonally adjusted annual rate of 1.220 million, which was just shy of the Briefing.com consensus estimate of 1.260 million.
The key takeaway from the report is that permits, which are a leading indicator, increased a solid 11.9% m/m for single-unit dwellings. Single-unit permits increased in all regions, too.
The weekly MBA Mortgage Applications Index rose 8.0% following a 9.3% spike in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report and the Philadelphia Fed Index for June on Thursday.
Nasdaq Composite +10.5% YTD
S&P 500 -3.6% YTD
Dow Jones Industrial Average -8.5% YTD
Russell 2000 -14.5% YTD
Market Snapshot
Dow 26119.63 -170.37 (-0.65%)
Nasdaq 9910.54 +14.66 (0.15%)
SP 500 3113.36 -11.25 (-0.36%)
10-yr Note +25/32 0.725
NYSE Adv 966 Dec 1945 Vol 1.0 bln
Nasdaq Adv 1252 Dec 2084 Vol 4.2 bln
Industry Watch
Strong: Consumer Discretionary, Information Technology, Communication Services
Weak: Energy, Financials, Real Estate
Moving the Market
-- Major indices, except Nasdaq, close lower
-- Lingering angst pertaining to a recovery and valuations
-- Relative weakness in small-caps and the energy and financials sectors
-- Aggressive policy support from the Fed remained a positive consideration; Fed Chair Powell reminded Congress of their spending powers
WTI crude settles lower
17-Jun-20 15:30 ET
Dow -142.87 at 26147.13, Nasdaq +16.37 at 9912.25, S&P -10.50 at 3114.11
[BRIEFING.COM] The S&P 500 is down 0.3%, returning into negative territory for the first time since this morning.
One last look at the S&P 500 sectors shows the energy sector (-2.7%) down noticeably, followed by the financials (-1.1%) and real estate (-0.9%) sectors. The consumer discretionary (+0.1%), information technology (+0.1%), and communication services (unch) sectors trade near their flat lines.
WTI crude futures settled today's session lower by $0.33 (-0.9%) to $37.93/bbl. On a relate note, weekly crude inventories showed an unexpected build, according to data from the EIA.
Stock rally aided by positive by media reports, retail sales data
16-Jun-20 16:15 ET
Dow +526.82 at 26290.00, Nasdaq +169.84 at 9895.88, S&P +58.15 at 3124.61
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 gained 1.9% on Tuesday, paced higher by all 11 of its sectors amid positive-sounding media reports and encouraging retail sales data. The Dow Jones Industrial Average (+2.0%) and Nasdaq Composite (+1.8%) performed comparably to the benchmark index, while the Russell 2000 (+2.3%) outperformed.
The session started in risk-on mode after retail sales rebounded 17.7% m/m in May (Briefing.com consensus 9.0%), Bloomberg reported that President Trump was preparing a $1 trillion infrastructure proposal, and the BBC reported on a COVID-19 steroidal treatment in the UK that reduced deaths in severely ill patients.
All 11 S&P 500 sectors were up big. The benchmark index, however, went from being up as much as 2.8% intraday (and up 6.3% from Monday's intraday low) to being up just 0.3% during Fed Chair Powell's semiannual monetary policy testimony before the Senate Banking Committee.
Mr. Powell told lawmakers he thinks there will be long road to a recovery, but the Fed will continue to be proactive in supporting financial markets, adding that the central bank would think about capping yields if rates go up too much on certain parts of the curve. The S&P 500 financials sector (+1.4%) turned negative shortly after this acknowledgement.
The broader market was weaker, though, as recovery hopes were further pressured by news that Texas reported a new high for COVID-19 hospitalizations and that Beijing raised its COVID emergency response level and closed its schools. Investors bought the dip (again), sending the S&P 500 back above the 3100 level on a closing basis.
Five sectors increased by at least 2.0%, including the energy (+2.8%) and health care (+2.4%) sectors at the top. The utilities sector (+0.5%) lagged. In the health care space, Eli Lilly (LLY 163.71, +22.19, +15.7%) shares surged 15.7% after the company announced its breast cancer therapy met its primary endpoint and its insulin drug received FDA approval.
U.S. Treasuries ended the session with losses that caused some curve-steepening activity. The 2-yr yield increased two basis points to 0.21%, and the 10-yr yield increased five basis points to 0.76%. The U.S. Dollar Index increased 0.4% to 97.05. WTI crude rose 3.2%, or $1.20, to $38.56/bbl.
Reviewing Tuesday's economic data:
Retail sales for May in the U.S. surged 17.7% m/m (Briefing.com consensus 9.0%) following an upwardly revised 14.7% decline in April (from -16.4%). Excluding autos, retail sales jumped 12.4% m/m (Briefing.com consensus 5.2%) following an upwardly revised 15.2% decline for April (from -17.2%).
The key takeaway from the Retail Sales report is that it reflects pent-up demand that was unleashed as reopening efforts took root. Granted the April base was severely depressed and sales were still down 6.1% yr/yr, yet this market is thriving right now on hopeful sequential comparisons; hence, this was seen as very encouraging news.
Total industrial production increased 1.4% m/m in May (Briefing.com consensus 3.0%) on the heels of a downwardly revised 12.5% decline (from -11.2%) in April. The capacity utilization rate was 64.8% (Briefing.com consensus 67.9%) versus a downwardly revised 64.0% (from 64.9%) in April.
The key takeaway from the report is that the improvement was all manufacturing-based thanks largely to an uptick in the output of motor vehicles and parts.
The NAHB Housing Market Index for June increased to 58 (Briefing.com consensus 45) from 37 in May.
Business Inventories declined 1.3% in April (Briefing.com consensus -0.4%) following a revised 0.3% decline in March (from -0.2%).
Looking ahead, investors will receive Housing Starts and Building Permits for May and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +10.3% YTD
S&P 500 -3.3% YTD
Dow Jones Industrial Average -7.9% YTD
Russell 2000 -13.0% YTD
Market Snapshot
Dow 26290.00 +526.82 (2.04%)
Nasdaq 9895.88 +169.84 (1.75%)
SP 500 3124.61 +58.15 (1.90%)
10-yr Note -24/32 0.750
NYSE Adv 2361 Dec 522 Vol 1.3 bln
Nasdaq Adv 2496 Dec 819 Vol 4.6 bln
Industry Watch
Strong: Energy, Materials, Health Care, Information Technology, Consumer Discretionary
Weak: Utilities
Moving the Market
-- Stock rally aided by positive-sounding media reports, encouraging retail sales data
-- President Trump working on $1 trillion infrastructure proposal; news of steroidal treatment in the UK that reduced deaths in severely ill COVID-19 patients
-- Retail sales rebounded 17.7% m/m in May (Briefing.com consensus 9.0%)
-- Volatility following Fed Chair's Powell semiannual monetary policy testimony
WTI crude gains amid IEA rebound forecast
16-Jun-20 15:25 ET
Dow +464.44 at 26227.62, Nasdaq +145.56 at 9871.60, S&P +50.70 at 3117.16
[BRIEFING.COM] The S&P 500 is currently up 1.7%, although it was up as much as 2.8% early in the session.
One last look at the S&P 500 sectors still shows green across the board. The energy (+2.5%), health care (+2.2%), and materials (+2.2%) sectors are up at least 2.0%, while the utilities sector (+0.6%) underperforms.
WTI crude futures settled today's session up $1.20 (+3.2%) to $38.56/bbl. On a related note, the IEA forecast a record rebound in oil demand in 2021.
Stocks rebound with a little help from the Fed
15-Jun-20 16:20 ET
Dow +157.62 at 25763.18, Nasdaq +137.21 at 9726.04, S&P +25.28 at 3066.46
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 gained 0.8% on Monday to overcome an early 2.5% decline, as the market brushed aside coronavirus concerns and welcomed another aggressive policy update from the Fed. The Dow Jones Industrial Average swung nearly 1000 points from its bottom to close 0.6% higher. The Nasdaq Composite (+1.4%) and Russell 2000 (+2.3%) outperformed.
The early weakness was attributed to reports about increasing rates of coronavirus cases and hospitalizations in several U.S. states and even an outbreak at a food market in Beijing. Underwhelming industrial production and retail sales data for May out of China also weighed on recovery sentiment.
All 11 S&P 500 sectors traded sharply lower, but buyers gradually returned to buy the dip, which contributed to a steady rebound off early lows. Then, at 2:00 p.m. ET, the rebounding market received a noticeable pop into positive territory after the Fed announced it will start buying individual corporate bonds through its Secondary Market Corporate Credit Facility.
The move was unexpected, but it reminded the market that the Fed can, and will, expand its policy tools to support the market at any time during this recovery. All 11 S&P 500 sectors ended the session in positive territory.
The financials sector (+1.4%) outperformed, even as banks noted a steady pace of net credit losses in May, followed by the consumer staples sector (+1.1%). The health care (+0.2%) and energy (+0.1%) sectors eked out small gains.
Stay-at-home stocks continued to outperform the broader market amid the threat of a second wave of coronavirus infections. Shopify (SHOP 805.47, +62.89, +8.5%) was a notable standout after announcing a new partnership with Walmart (WMT 118.08, +0.34, +0.3%).
U.S. Treasuries exhibited an early flight-to-safety trade, which then unraveled with the rebound in equities. The 2-yr yield and the 10-yr yield ended the session unchanged at 0.18% and 0.70%, respectively. The U.S. Dollar Index declined 0.6% to 96.71. WTI crude futures rose 1.9%, or $0.68, to $36.94/bbl.
Monday's economic data was limited to the Empire State Manufacturing Survey for June, which improved to -0.2 (Briefing.com consensus -25.0) from -48.5 in May.
Looking ahead to Tuesday, investors will receive Retail Sales for May, Capacity Utilization and Industrial Production for May, Business Inventories for May, and the NAHB Housing Market Index for June. In addition, Fed Chair Powell will provide his semiannual monetary policy testimony.
Nasdaq Composite +8.4% YTD
S&P 500 -5.1% YTD
Dow Jones Industrial Average -9.7% YTD
Russell 2000 -14.9% YTD
Market Snapshot
Dow 25763.18 +157.62 (0.62%)
Nasdaq 9726.04 +137.21 (1.43%)
SP 500 3066.46 +25.28 (0.83%)
10-yr Note -1/32 0.711
NYSE Adv 1925 Dec 943 Vol 1.2 bln
Nasdaq Adv 2380 Dec 934 Vol 4.4 bln
Industry Watch
Strong: Financials, Consumer Staples, Communication Services, Real Estate
Weak: Health Care, Energy
Moving the Market
-- Market closes higher in buy-the-dip trade
-- Fed said it will start buying individual corporate bonds
-- Early weakness attributed to reports of increasing rates of coronavirus cases and hospitalizations in several states
WTI crude rises 2%
15-Jun-20 15:20 ET
Dow +131.57 at 25737.13, Nasdaq +125.50 at 9714.33, S&P +22.36 at 3063.54
[BRIEFING.COM] The S&P 500 is up 0.6%, while the Russell 2000 trades higher by 2.1%.
One last look at the S&P 500 sectors shows financials (+1.2%), real estate (+0.9%), and materials (+0.9%) leading in gains, while the health care sector (-0.1%) dips just below its flat line.
WTI crude futures settled the session up $0.68 (+1.9%) to $36.94/bbl.
Stocks close higher, trim weekly losses
12-Jun-20 16:15 ET
Dow +477.37 at 25605.56, Nasdaq +96.08 at 9588.83, S&P +39.21 at 3041.18
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 gained 1.3% on Friday to reclaim some of yesterday's sharp decline, although it was up as much as 2.9% early in the session. The Dow Jones Industrial Average (+1.9%), Nasdaq Composite (+1.0%), and Russell 2000 (+2.3%) also bounced back but closed off session highs.
While yesterday's decline was orderly in nature, today's session was characterized by an inclination to sell into strength. Every time the market attempted to rebound, sellers would regain control and take the market back down. At one point in the afternoon, the S&P 500 was down 0.6% before buyers gradually returned to buy the dip.
The S&P 500 sectors were able to finish mostly higher, with cyclical sectors assuming the leadership. The financials (+3.0%), energy (+2.7%), and industrials (+2.0%) sectors rose at least 2.0%, but it was the real estate sector (+3.2%) that advanced the most. The utilities (-0.2%) and consumer staples (-0.2%) sectors closed lower.
Adobe (ADBE 406.54, +18.87, +4.9%) was an individual standout following its earnings report, while lululemon athletica (LULU 296.36, -11.76, -3.8%) failed to generate much excitement with its results. Tesla (TSLA 935.28, -37.56, -3.9%) was pressured by Goldman Sachs downgrading the stock to Neutral from Buy.
Interestingly, shares of bankrupt Hertz (HTZ 2.83, +0.77, +37.4%) were reawakened today with a 37% gain. The company reportedly asked a bankruptcy judge if it could sell $1 billion worth of common stock to capitalize on the trading frenzy that has buoyed its stock.
U.S. Treasuries finished on a lower note, pushing yields higher across the curve. The 2-yr yield increased two basis points to 0.18%, and the 10-yr yield increased five basis points to 0.70%. The U.S. Dollar Index increased 0.4% to 97.11. WTI crude declined 0.5%, or $0.17, to $36.24/bbl.
Reviewing Friday's economic data:
The preliminary University of Michigan Index of Consumer Sentiment for June showed an improvement to 78.9 (Briefing.com consensus 75.8) from the final reading of 72.3 for May.
The key takeaway from the report is that the uptick was driven by renewed gains in employment and an expectation for a decline in the unemployment rate; however, most consumers were not anticipating the reestablishment of favorable financial conditions anytime soon.
Import prices increased 1.0% in May, and prices, excluding oil, increased 0.1%. Export prices increased 0.5% in May, and prices, excluding agriculture, increased 0.6%.
Looking ahead, investors will receive the Empire State Manufacturing Survey for June and Net Long-Term TIC Flows for April on Monday.
Nasdaq Composite +6.9% YTD
S&P 500 -5.9% YTD
Dow Jones Industrial Average -10.3% YTD
Russell 2000 -16.8% YTD
Market Snapshot
Dow 25605.56 +477.37 (1.90%)
Nasdaq 9588.83 +96.08 (1.01%)
SP 500 3041.18 +39.21 (1.31%)
10-yr Note -3/32 0.710
NYSE Adv 2289 Dec 635 Vol 1.2 bln
Nasdaq Adv 2485 Dec 832 Vol 4.3 bln
Industry Watch
Strong: Energy, Industrials, Financials, Real Estate
Weak: Consumer Staples, Utilities
Moving the Market
-- Stocks reclaim some losses from Thursday in volatile session
-- There was an inclination to sell into strength
-- Cyclical sectors outperformed
WTI crude settles lower, extends weekly decline
12-Jun-20 15:25 ET
Dow +253.25 at 25381.44, Nasdaq +18.26 at 9511.01, S&P +15.53 at 3017.50
[BRIEFING.COM] The S&P 500 continues to trade higher by 0.5% and is on pace to close the week lower by 5.6%.
One last look at the S&P 500 sectors shows real estate (+2.3%), financials (+1.6%), and energy (+1.2%) outperforming, while the utilities (-0.5%), consumer staples (-0.4%), and consumer discretionary (-0.2%) sectors trade lower.
WTI crude futures declined 0.5% (-$0.17) to $36.24/bbl. The futures contract ended the week down 8.3%.
declined one basis point to 0.16%, while the 10-yr yield declined ten basis points to 0.65% as investors sought some safety in longer-dated maturities. The U.S. Dollar Index rose 0.8% to 96.76.
Notably, the CBOE Volatility Index spiked 48.0% to 40.79, which reflected increased hedging interest against further equity weakness. The S&P 500 did end the session below its 200-day moving average (3013), which is a key technical level many traders observe.
In corporate news, Regeneron Pharma (REGN 596.16, -10.43, -1.7%) said it started clinical trials for its COVID-19 antibody treatment. GrubHub (GRUB 61.79, +2.74, +4.6%) agreed to be acquired by Just Eat Takeaway (TKAYY 9.30, -0.70, -7.0%) for $75.15/share in an all-stock deal.
Reviewing Thursday's economic data:
Initial jobless claims for the week ending June 6 decreased by 355,000 to a still-high 1.542 million (Briefing.com consensus 1.525 million) while continuing claims for the week ending May 30 decreased by 339,000 to a still stunningly high 20.929 million.
The key takeaway from this report is that, notwithstanding the hiring activity in May, it shows the labor market remains a long, long way from being back.
The Producer Price Index for final demand increased 0.4% m/m in May (Briefing.com consensus +0.1%). The index for final demand, excluding food and energy, declined 0.1% (Briefing.com consensus 0.0%). Those readings left the yr/yr rates at -0.8% and 0.3%, respectively.
The key takeaway from this report is that it shows why the Fed isn't thinking about raising rates anytime soon.
Looking ahead, investors will receive the preliminary University of Michigan Index of Consumer Sentiment for June and Export and Import Prices for May on Friday.
Nasdaq Composite +5.8% YTD
S&P 500 -7.1% YTD
Dow Jones Industrial Average -12.0% YTD
Russell 2000 -18.7% YTD
Market Snapshot
Dow 25128.19 -1861.80 (-6.90%)
Nasdaq 9492.75 -527.62 (-5.27%)
SP 500 3001.97 -188.04 (-5.89%)
10-yr Note +6/32 0.663
NYSE Adv 86 Dec 2859 Vol 1.3 bln
Nasdaq Adv 240 Dec 3130 Vol 5.2 bln
Industry Watch
Strong: None
Weak: Energy, Financials, Industrials, Materials
Moving the Market
-- Market pulls back about 5%, cooling down from overheated condition
-- Value and cyclical stocks lag, especially those in the energy sector amid a sharp pullback in oil prices
-- Decline is ostensibly based on cautious outlook from Fed and reports of increasing rates of coronavirus cases
WTI crude pulls back 8%
11-Jun-20 15:25 ET
Dow -1806.50 at 25183.49, Nasdaq -491.35 at 9529.02, S&P -179.92 at 3010.09
[BRIEFING.COM] The S&P 500 is down 5.7%, and the Russell 2000 is down 6.9%.
One last look at the S&P 500 sectors shows big losses across the board. The energy sector is down the most with a 8.9% decline, while the consumer staples sector is down the least with a 3.5% decline.
WTI crude futures dropped 7.9%, or $3.13, to $36.41/bbl as oil prices pulled back alongside stocks.
Mega-caps power Nasdaq to new record high after FOMC statement
10-Jun-20 16:20 ET
Dow -282.31 at 26989.99, Nasdaq +66.59 at 10020.37, S&P -17.04 at 3190.01
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.5% on Wednesday in a volatile session following the June FOMC statement, while the Nasdaq Composite rose 0.7% to close at another record high. The Dow Jones Industrial Average (-1.0%) and Russell 2000 (-2.6%) continued to pull back from recent gains.
The Fed kept the target range for the fed funds rate unchanged at 0.00-0.25%, and its dot plot signaled rates will remain near zero through at least 2022. The Fed's economic projections called for a 6.5% contraction in 2020 GDP, followed by 5.0% growth in 2021. Core PCE inflation is expected to remain below the Fed's 2.0% target through 2020.
After the release of the policy directive, the S&P 500 erased prior losses and gained as much as 0.5%, but stocks quickly retraced those gains during Fed Chair Powell's press conference. Mr. Powell didn't say anything particularly new, reiterating the Fed's commitment to supporting the economy, but he did subtly urge Congress to do more.
Neither the statement nor the press conference altered today's trading theme, though. Like yesterday, continued strength in the mega-cap stocks provided major support at the index level. Within the S&P 500 sectors, the information technology sector was in a league of its own, rising 1.7% while no other sector finished higher.
The energy (-4.9%) and financials (-3.8%) sectors were hit relatively hard, with the financials space pressured by the Fed's acknowledgement of low rates for a while longer.
Notably, shares of Apple (AAPL 352.84, +8.85, +2.6%), Microsoft (MSFT 196.84, +7.04, +3.7%), Amazon (AMZN 2647.45, +46.59, +1.8%), Tesla (TSLA 1025.05, +84.38, +9.0%), and NVIDIA (NVDA 374.67, +12.83, +3.6%) rallied to new all-time highs. Several brokerage firms raised their price targets on AAPL, AMZN, and TSLA.
Separately, Starbucks (SBUX 79.01, -3.36, -4.1%) said it expects quarterly sales to decline as much as $3.2 billion and operating income to decline as much as $2.2 billion due to the coronavirus. SBUX shares fell 4%.
In the Treasury market, longer-dated maturities saw greater demand following the FOMC statement. The 2-yr yield declined three basis points to 0.17%, and the 10-yr yield declined eight basis points to 0.75%. The U.S. Dollar Index declined 0.3% to 96.02. WTI crude gained 1.6%, or $0.62, to $39.54/bbl.
Reviewing Wednesday's economic data, which included the Consumer Price Index for May:
The Consumer Price Index for May declined 0.1% m/m (Briefing.com consensus 0.0%) following a 0.8% decline in April. Core CPI, which excludes food and energy, also declined 0.1% (Briefing.com consensus 0.0%). That was the third straight monthly decline in core CPI, which is something that has never happened before.
The key takeaway from the report is that it shows a trend of disinflation that will keep the Fed favoring easy monetary policy and asset purchases for some time.
The weekly MBA Mortgage Applications Index rose 9.3% following a 3.9% decline in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report and the Producer Price Index for May on Thursday.
Nasdaq Composite +11.7% YTD
S&P 500 -1.3% YTD
Dow Jones Industrial Average -5.4% YTD
Russell 2000 -12.1% YTD
Market Snapshot
Dow 26989.99 -282.31 (-1.04%)
Nasdaq 10020.37 +66.59 (0.67%)
SP 500 3190.01 -17.04 (-0.53%)
10-yr Note +32/32 0.726
NYSE Adv 790 Dec 2103 Vol 1.2 bln
Nasdaq Adv 1211 Dec 2141 Vol 5.1 bln
Industry Watch
Strong: Information Technology
Weak: Energy, Financials, Industrials, Real Estate
Moving the Market
-- Mega-caps power Nasdaq to another record close, while the rest of the market continued to struggle
-- Fed kept fed funds rate unchanged and signaled rates will stay near zero at least through 2022, Fed Chair Powell subtly urges Congress to do more
-- Relative weakness in the cyclical sectors
WTI crude settles higher, extends gains
10-Jun-20 15:25 ET
Dow -189.17 at 27083.13, Nasdaq +97.71 at 10051.49, S&P -5.55 at 3201.50
[BRIEFING.COM] The S&P 500 is trading lower by 0.2%, while the Russell 2000 continues to underperform with a 2.2% decline.
One last look at the S&P 500 sectors shows the information technology sector (+2.0%) way in the lead with a 2% gain, while the energy (-3.8%), financials (-3.2%), and industrials (-1.9%) sectors flounder in negative territory.
WTI crude futures settled today's session higher by $0.62 (+1.6%) to $39.54/bbl.
S&P 500 closes lower, while Nasdaq closes at new high
09-Jun-20 16:20 ET
Dow -300.14 at 27272.30, Nasdaq +29.01 at 9953.78, S&P -25.21 at 3207.05
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.8% on Tuesday, but strength in the mega-cap technology stocks limited its decline and drove the Nasdaq Composite up 0.3% to close at a record high. The Dow Jones Industrial Average (-1.1%) and Russell 2000 (-1.9%) fell more than 1% after a recent streak of outperformance.
Apple (AAPL 343.99, +10.53, +3.2%), Amazon (AMZN 2600.86, +76.80, +3.0%), Microsoft (MSFT 189.80, +1.44, +0.8%), Alphabet (GOOG 146.16, +9.55, +0.7%), and Facebook (FB 238.67, +7.27, +3.1%) -- which represent approximately 20% of the S&P 500's market weight -- posted solid gains, as money appeared to rotate out of cyclical sectors and back into these tech behemoths.
Those cyclical sectors included the energy (-3.6%), industrials (-2.5%), and financials (-2.1%) sectors, which remain this month's leaders. Conversely, the information technology (+0.5%), communication services (+0.2%), and consumer discretionary (unch) sectors performed relatively well amid gains in the aforementioned stocks.
The rotation was a balancing act between taking profits and parking money in the mega-caps for their perceived safety. There was no strong inclination to sell the broader market, though, especially with the Fed set to announce its latest policy decision on Wednesday.
Within the transportation space, profit-taking interest cooled down the airline stocks. The U.S. Global Jets ETF (JETS 20.45, -1.27, -6.8%) declined nearly 7% after rallying 45% over the prior six sessions. The Dow Jones Transportation Average fell 2.3%.
U.S. Treasuries ended the session on a higher note, driving yields lower across the curve. The 2-yr yield declined two basis points to 0.20%, and the 10-yr yield declined six basis points to 0.83%. The U.S. Dollar Index declined 0.2% to 96.42. WTI crude gained 1.8%, or $0.68, to $38.92/bbl.
Reviewing Tuesday's economic data:
The NFIB Small Business Optimism Index for May increased to 94.9 from 90.9 in April.
April job openings decreased to 5.046 mln from a revised 6.011 mln in March (from 6.191 mln).
Wholesale inventories increased 0.3% in April (Briefing.com consensus +0.4%) following a revised 1.1% decline in March (from -0.8%).
Looking ahead, investors will receive the FOMC Rate Decision, the Consumer Price Index for May, and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +10.9% YTD
S&P 500 -0.7% YTD
Dow Jones Industrial Average -4.4% YTD
Russell 2000 -9.7% YTD
Market Snapshot
Dow 27272.30 -300.14 (-1.09%)
Nasdaq 9953.78 +29.01 (0.29%)
SP 500 3207.05 -25.21 (-0.78%)
10-yr Note +27/32 0.830
NYSE Adv 620 Dec 2282 Vol 1.2 bln
Nasdaq Adv 1159 Dec 2161 Vol 5.2 bln
Industry Watch
Strong: Information Technology, Communication Services, Consumer Discretionary
Weak: Energy, Financials, Industrials, Utilities
Moving the Market
-- S&P 500, Dow, Russell 2000 eased back from recent gains, while Nasdaq closed at another record high
-- Strength in the mega-cap technology stocks
-- Relative weakness in value and cyclical stocks, which had outperformed this month
WTI crude settles 2% higher
09-Jun-20 15:25 ET
Dow -170.07 at 27402.37, Nasdaq +65.76 at 9990.53, S&P -11.98 at 3220.28
[BRIEFING.COM] The S&P 500 is trading near session highs with a 0.4% decline.
One last look inside the benchmark index shows the information technology (+0.8%), communication services (+0.4%), and consumer discretionary (+0.3%) sectors leading the rebound attempt, while the energy (-3.0%), industrials (-2.0%), and utilities (-2.1%) sectors continue to lag.
WTI crude futures settled today's session up $0.68 (+1.8%) to $38.92/bbl.
S&P 500 turns positive for the year
08-Jun-20 16:15 ET
Dow +461.46 at 27572.44, Nasdaq +110.66 at 9924.77, S&P +38.46 at 3232.26
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 rose 1.2% on Monday, turning positive for the year amid continued strength in value and cyclical stocks. The Nasdaq Composite (+1.1%) closed at a new all-time high, while the Dow Jones Industrial Average (+1.7%) and Russell 2000 (+2.0%) pulled ahead.
There were few macro developments to alter the market's bullish trend, allowing investors to continue to pile into beaten-up stocks that have more upside potential with a ramp-up in economic activity. Boeing (BA 230.50, +25.07, +12.2%) was one such name, including others within the airline, cruise line, energy, and retail industries.
All 11 S&P 500 sectors closed higher. The energy sector set the performance pace with a 4.3% gain, followed by the utilities (+2.6%) and real estate (+2.2%) sectors. The materials sector (+0.1%) eked out a last-minute gain as the broader market rallied into the close. The information technology sector (+0.5%) overcame an early 1.2% decline.
The market's persistent gains since the March 23 low appeared to engender a sense of trading complacency. Hertz (HTZ 5.53, +2.96, +115.2%), for example, filed for Chapter 11 bankruptcy protection on May 26, but the stock finished the session up 888% since its May 26 closing price, including today's 115% gain.
The Fed's loose monetary policy has played a large role in the stock market's V-shaped recovery. On Monday, the central bank expanded its Main Street Lending Program to allow more small and medium-sized businesses to receive financial support.
Separately, Amazon (AMZN 2524.06, +41.06, +1.7%) shares hit a new all-time high, benefiting from RBC Capital Mkts raising its price target to $3300 from $2700.
U.S. Treasuries ended the session mixed. The 2-yr yield increased one basis point to 0.22%, while the 10-yr yield declined two basis points to 0.88%. The U.S. Dollar Index declined 0.3% to 96.67. WTI crude declined 3.2%, or $1.26, to $38.24/bbl. On a related note, OPEC+ agreed to extend the 9.7 mbpd production output cut through the end of July.
Investors did not receive any economic data on Monday. Looking ahead to Tuesday, investors will receive the NFIB Small Business Optimism Index for May, the JOLTS - Job Openings report for April, and Wholesale Inventories for April.
Nasdaq Composite +10.6% YTD
S&P 500 +0.1% YTD
Dow Jones Industrial Average -3.4% YTD
Russell 2000 -7.9% YTD
Market Snapshot
Dow 27572.44 +461.46 (1.70%)
Nasdaq 9924.77 +110.66 (1.13%)
SP 500 3232.26 +38.46 (1.20%)
10-yr Note +3/32 0.874
NYSE Adv 2396 Dec 550 Vol 1.4 bln
Nasdaq Adv 2470 Dec 856 Vol 6.1 bln
Industry Watch
Strong: Energy, Industrials, Financials, Real Estate, Utilities
Weak: Information Technology, Communication Services, Materials
Moving the Market
-- S&P 500 extends recovery rally, Nasdaq sets new all-time high
-- Value-oriented and cyclical stocks remain strong; relative weakness in tech stocks
-- Little macro news to deter positive trend
WTI crude gives back 3% to start the week
08-Jun-20 15:25 ET
Dow +320.87 at 27431.85, Nasdaq +76.62 at 9890.73, S&P +24.97 at 3218.77
[BRIEFING.COM] The S&P 500 is up 0.8% and has manged to cut its yearly decline to just 0.4%.
Leading the effort today are the energy (+3.2%), utilities (+2.2%), and real estate (+1.6%) sectors. The materials sector (-0.4%) is the lone sector currently trading in negative territory.
WTI crude futures settled lower by $1.26 (-3.2%) to $38.24/bbl. On a related note, OPEC+ members agreed to extend the 9.7 mbpd production output cut through the end of July.
Stocks rally on surprisingly positive employment report
05-Jun-20 16:20 ET
Dow +829.16 at 27110.98, Nasdaq +198.27 at 9814.11, S&P +81.58 at 3193.80
https://www.briefing.com/stock-market-update
[BRIEFING.COM] U.S. stocks rallied to end a strong week after the May employment report showcased an unexpected increase in payrolls. The S&P 500 rose 2.6%, and the Nasdaq Composite rose 2.1%, setting a new intraday high in the process. The Dow Jones Industrial Average (+3.2%) and Russell 2000 (+3.8%) outperformed again.
Consensus estimates were projecting millions more in job losses in May. Instead, nonfarm payrolls increased by 2.509 million (Briefing.com consensus -8.50 million), and private sector payrolls increased by 3.094 million (Briefing.com consensus -8.8 million). The unemployment rate even ticked lower to 13.3% (Briefing.com consensus 19.9%) from 14.7% in April.
The stock market was already on track for a higher start prior to the report's release, but equity index futures shot higher immediately after the release as the data suggested a recovery was occurring quicker than anticipated. After the open, it was a relatively smooth advance throughout the day.
The S&P 500 energy (+7.5%), financials (+3.9%), and industrials (+3.7%) sectors posted solid gains that lifted each sector above 10% for the week. All sectors finished higher today, but the utilities (+1.4%) and consumer staples (+1.5%) sectors struggled to keep pace with the benchmark index.
Investors continued to pile into value-oriented stocks like Boeing (BA 205.43, +21.13, +11.5%), which rose 41% this week, but also bought heavyweight favorites like Apple (AAPL 331.50, +9.18, +2.9%), which set a new all-time high today.
The continued rise in oil prices ($39.50, +2.08, +5.6%) ahead of an OPEC+ meeting this weekend continued to attract buyers into the energy sector. In the semiconductor space, Broadcom (AVGO 317.08, +8.19, +2.7%) satisfied investors with its earnings report and in-line guidance. The Philadelphia Semiconductor Index (+2.6%) closed at a record high.
U.S. Treasuries ended the session with losses, especially on the longer-end of the curve. The 2-yr yield increased two basis points to 0.21%, while the 10-yr yield increased eight basis points to 0.90% -- its highest level since March 20. The U.S. Dollar Index increased 0.3% to 97.00.
Reviewing Friday's economic data, which featured the Employment Situation Report for May:
May nonfarm payrolls increased by 2.509 million (Briefing.com consensus -8.50 million). May private sector payrolls increased by 3.094 million (Briefing.com consensus -8.8 million). May unemployment rate was 13.3% (Briefing.com consensus 19.9%), versus 14.7% in April.
The key takeaway from the report is that the surprising increase in nonfarm payrolls and nonfarm private payrolls reflects an economy getting back to work even sooner than the market itself was anticipating, which is why equity index futures shot higher and bond prices shot lower immediately following the release.
Consumer credit contracted by $68.7 billion in April (Briefing.com consensus -$42.0 billion) after declining an upwardly revised $6.9 bln (from -$12.1 billion) in March.
The key takeaway from the report is that it shows how banks and finance companies grew more restrictive in extending credit to individuals in April as job losses, and concerns about repayment capabilities, mounted.
Investors will not receive any notable economic data on Monday.
Nasdaq Composite +9.4% YTD
S&P 500 -1.1% YTD
Dow Jones Industrial Average -5.0% YTD
Russell 2000 -9.7% YTD
Market Snapshot
Dow 27110.98 +829.16 (3.15%)
Nasdaq 9814.11 +198.27 (2.06%)
SP 500 3193.80 +81.58 (2.62%)
10-yr Note -28/32 0.888
NYSE Adv 2488 Dec 439 Vol 1.5 bln
Nasdaq Adv 2503 Dec 802 Vol 6.5 bln
Industry Watch
Strong: Energy, Financials, Industrials, Real Estate
Weak: Consumer Staples, Utilities
Moving the Market
-- Stocks rally after surprisingly positive employment report for May, Nasdaq sets new intraday high
-- May nonfarm payrolls increased by 2.509 million (Briefing.com consensus -8.50 million), unemployment rate ticks lower to 13.3% (Briefing.com consensus 19.9%) from 14.7% in April.
-- Broad-based advance led by the cyclical sectors
-- 10-yr yield (0.90%) rises to March levels
WTI crude rises more than 5% ahead of OPEC+ meeting
05-Jun-20 15:30 ET
Dow +870.58 at 27152.40, Nasdaq +216.88 at 9832.72, S&P +87.50 at 3199.72
[BRIEFING.COM] The S&P 500 is up 2.8% and on pace to end the week higher by 5.1%.
One last look into the S&P 500 sector standings shows energy (+7.0%) setting the performance pace with a 7.0% gain. The financials (+4.0%) and industrials (+3.8%) sectors follow suit, while the consumer staples sector (+1.7%) underperforms.
WTI crude futures settled the session higher by $2.08 (+5.6%) to $39.50/bbl ahead of the OPEC+ production cut meeting on Saturday.
S&P 500 snaps winning streak, but Dow closes higher
04-Jun-20 16:20 ET
Dow +11.93 at 26281.82, Nasdaq -67.10 at 9615.84, S&P -10.52 at 3112.22
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.3% on Thursday in a mixed session to snap a four-session winning streak. The Dow Jones Industrial Average eked out a 0.1% gain, the Nasdaq Composite declined 0.7%, and the Russell 2000 closed flat.
Early in the session, the S&P 500 overcame a negative start, but failed to break above the 3130 level, which was yesterday's high and the high from March 4. The Nasdaq 100 (-0.8%) even set a new all-time high before retracing gains alongside the broader market. Technical factors, then, appeared to have a role in calming this market down.
The information technology (-0.8%) and health care (-0.8%) sectors were influential laggards, but the rate-sensitive real estate (-1.8%) and utilities (-2.0%) sectors declined the most amid an increase in longer-dated Treasury yields. The 10-yr yield rose six basis points to 0.82%, while the 2-yr yield was flat at 0.19%.
There were pockets of relative strength, though, specifically in the S&P 500 financials (+2.0%) and industrials (+1.1%) sectors, the Philadelphia Semiconductor Index (+0.8%), and in many of the travel-related industries. The battered travel stocks exhibited huge gains today.
The latter were boosted by American Airlines (AAL 16.74, +4.89, +41.3%) announcing plans to increase its domestic flying schedule for the summer travel season due to improving demand. AAL shares surged 41% while Boeing (BA 184.30, +11.14, +6.4%) shares rose 6%.
In other developments, weekly initial claims remained elevated at 1.877 million (Briefing.com consensus 1.800 million), continuing claims increased by 649,000 to 21.487 million, and the ECB increased its pandemic emergency purchase program by EUR600 billion to a total of EUR1.350 trillion. The ECB extended this program until at least the end of June 2021.
The aggressive stimulus from the ECB fueled optimism about a recovery in Europe, which could be on the verge of a stronger fiscal union. The euro continued to rise against the dollar, contributing to another 0.5% decline in the U.S. Dollar Index (96.82).
Reviewing Thursday's economic data:
Initial claims for the week ending May 30 decreased by 249,000 to 1.877 million (Briefing.com consensus 1.800 million). Continuing claims for the week ending May 23 increased by 649,000 to 21.487 million.
The key takeaway from the report is twofold: (1) initial claims are still extremely high and (2) continuing claims didn't continue to improve, denoting some slowness in rehiring activity.
A revision reported by the BLS indicated nonfarm business sector labor productivity decreased 0.9% (Briefing.com consensus -2.6%) in the first quarter versus an originally reported decrease of 2.5%. Unit labor costs, meanwhile, increased 5.1% versus an originally reported 4.8% increase.
The key takeaway from the report is that productivity was better than expected in the first quarter, but it was still weak all the same.
The U.S. trade deficit widened to $49.4 billion in April (Briefing.com consensus -$49.8 billion) from an upwardly revised $42.3 billion (from -$44.4 billion) in March.
The key takeaway from the report is that it was accented by a sizable decline in both exports and imports, which was a byproduct of reduced demand due to shutdown measures implemented around the globe to help contain the spread of COVID-19.
Looking ahead, investors will receive the Employment Situation Report for May and Consumer Credit for April on Friday.
Nasdaq Composite +7.2% YTD
S&P 500 -3.7% YTD
Dow Jones Industrial Average -7.9% YTD
Russell 2000 -13.0% YTD
Market Snapshot
Dow 26281.82 +11.93 (0.05%)
Nasdaq 9615.84 -67.10 (-0.69%)
SP 500 3112.22 -10.52 (-0.34%)
10-yr Note -7/32 0.821
NYSE Adv 1610 Dec 1296 Vol 1.2 bln
Nasdaq Adv 1689 Dec 1589 Vol 6.0 bln
Industry Watch
Strong: Financials, Industrials, Materials
Weak: Utilities, Real Estate, Health Care, Information Technology
Moving the Market
-- Stocks close mixed, S&P 500 snaps four-session winning streak while Dow closes higher
-- Travel-related stocks boosted by positive update from American Airlines (AAL)
-- Weekly initial claims decreased by 323,000 to 2.123 million (Briefing.com consensus 1.950 million), while continuing claims increased 21.487 million
-- ECB increased its pandemic emergency purchase program by EUR600 billion to a total of EUR1.350 trillion
WTI crude ekes out gain
04-Jun-20 15:30 ET
Dow -116.10 at 26153.79, Nasdaq -95.91 at 9587.03, S&P -23.86 at 3098.88
[BRIEFING.COM] The S&P 500 is trading lower by 0.8% and is on pace to close lower for the first time in five sessions.
One last look at the S&P 500 sectors shows utilities (-3.0%) and real estate (-2.4%) continuing to feel the burden of the increase in longer-dated Treasuries, while the financials (+1.3%) and industrials (+0.6%) sectors continue to sport solid gains.
WTI crude futures settled today's session higher by $0.14 (+0.4%) to $37.42/bbl.
Recovery rally sends S&P 500 back above 3100
03-Jun-20 16:15 ET
Dow +527.24 at 26269.89, Nasdaq +74.54 at 9682.94, S&P +42.05 at 3122.74
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 extended its recovery rally by 1.4% on Wednesday, as the latest data continued to depict signs of a turnaround in the economy. The Dow Jones Industrial Average (+2.1%) and Russell 2000 (+2.4%) rose more than 2.0%, while the Nasdaq Composite (+0.8%) struggled to keep pace.
Specifically, the ADP Employment Change Report estimated 2.76 million private-sector jobs were lost in May versus consensus estimates that were closer to 9.0 million. The ISM Non-Manufacturing Index rebounded to 45.4% in May (Briefing.com consensus 44.0%) from 41.8% in April, which indicated a decelerating pace of contraction.
Those weren't good numbers, but they corroborated the market's thinking that things will improve as the economy continues to reopen. This outlook continued to fuel the big rebounds in the beaten-down cyclical sectors, as well as foreign equities, some of which have also been aided by talks of fiscal stimulus.
Within the S&P 500, the industrials (+3.9%), financials (+3.8%), and energy (+3.1%) sectors advanced the most and carried the benchmark index back above the 3100 level. The continued rise in oil prices ($37.56/bbl, +0.46, +1.3%) following an unexpected decline in weekly crude inventories was an added benefit for energy stocks. The health care sector (-0.2%) closed lower.
In corporate news, Lyft (LYFT 34.44, +2.76, +8.7%) said rides were up 20% in May versus April (but down 70% yr/yr), while Zoom Video (ZM 223.87, +15.79, +7.6%) provided impressive quarterly results and guidance.
Safe-haven assets were out of favor amid the bullish bias in stocks. Gold futures declined 1.7% to $1704.90/ozt, the U.S. Dollar Index declined 0.4% to 97.28, and the 10-yr yield rose eight basis points to 0.76%. The 2-yr yield increased three basis points to 0.19%.
Separately, an interesting report from The Wall Street Journal indicated that several executives from the poultry industry were indicted on allegations of price fixing. Shares of Tyson Foods (TSN 60.10, -2.40, -3.8%) fell into negative territory following the report.
Reviewing Wednesday's economic data:
The ISM Non-Manufacturing Index rebounded to 45.4% in May (Briefing.com consensus 44.0%) from 41.8% in April. The dividing line between expansion and contraction is 50.0%.
The key takeaway from the report is that the pace of contraction in the non-manufacturing sector decelerated in May. Things still aren't good in terms of business activity, but they were evidently considered by respondents to be less bad than what was seen in April.
The ADP Employment Change Report estimated 2.76 million private-sector jobs were lost in May versus consensus estimates that were closer to 9.0 million.
New orders for manufactured goods declined 13.0% m/m in April, as expected, following a downwardly revised 11.0% decline (from -10.3%) in March.
The key takeaway from the report is that the weakness was driven by durable goods orders, which declined 17.7%, hurt by a 48.3% decline in transportation equipment orders.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report, revised Q1 figures for Productivity and Unit Labor Costs, and the Trade Balance report for April on Thursday.
Nasdaq Composite +7.9% YTD
S&P 500 -3.3% YTD
Dow Jones Industrial Average -8.0% YTD
Russell 2000 -13.0% YTD
Market Snapshot
Dow 26269.89 +527.24 (2.05%)
Nasdaq 9682.94 +74.54 (0.78%)
SP 500 3122.74 +42.05 (1.36%)
10-yr Note -29/32 0.755
NYSE Adv 2342 Dec 556 Vol 1.1 bln
Nasdaq Adv 2248 Dec 1031 Vol 4.6 bln
Industry Watch
Strong: Financials, Energy, Industrials
Weak: Health Care
Moving the Market
-- Recovery rally lifts S&P 500 back above the 3100 level
-- Relative strength in the cyclical sectors
-- Better-than-feared economic data regarding the labor market and services sector
WTI crude gains amid decline in weekly inventories
03-Jun-20 15:25 ET
Dow +525.44 at 26268.09, Nasdaq +82.08 at 9690.48, S&P +43.44 at 3124.13
[BRIEFING.COM] The S&P 500 continues to trade at session highs with a current 1.4% gain. For the week, it is now up 2.6%.
One last look at the S&P 500 sectors shows financials (+3.9%), industrials (+3.7%), and energy (+2.9%) continuing to lead in gains, while the health care sector (-0.3%) is the lone holdout.
WTI crude futures rose $0.46 (+1.3%) to $37.26/bbl. On a related note, weekly crude oil inventories decreased by 2.1 mln barrels after increasing by 7.93 mln during the previous week.
Stocks extend rally in pain trade to the upside
02-Jun-20 16:20 ET
Dow +267.63 at 25742.65, Nasdaq +56.33 at 9608.40, S&P +25.09 at 3080.69
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 increased 0.8% on Tuesday, paced higher by all 11 of its sectors in a "pain trade" to the upside. The Dow Jones Industrial Average increased 1.1%, the Nasdaq Composite increased 0.6%, and the Russell 2000 increased 0.9%.
Cyclical sectors that stand to benefit directly from an increase in economic activity, such as the S&P 500 energy (+2.7%), materials (+1.8%), and industrials (+1.3%) sectors, saw the biggest gains today. A strong finish into the close also lifted the consumer staples (+0.2%) and communication services (+0.5%) sectors into positive territory.
Some attributed the strong finish to a report from Sputnik News, which indicated that a limited COVID-19 vaccine could come by the end of the year, according to a U.S. Army medical researcher.
The gains above reflected the persistent reopening enthusiasm, but the price action was described as a "pain trade" due to underallocated investors, awaiting a pullback, presumably giving in to chase the market higher. That's what it felt like, at least, as many have been awestruck by the market's furious rally off its March 23 low.
Visa (V 193.36, +2.01, +1.0%) and Western Union (WU 23.05, +2.34, +11.3%) were among the latest companies noting stabilizing/improving conditions in May, providing some assurance for bullish investors.
Visa, specifically, saw total U.S. payments volume decline just 5% yr/yr in May versus an 18% decline in April. Western Union shares were also boosted by news that it's seeking to acquire smaller rival MoneyGram (MGI 3.36, +0.77, +29.7%), according to Bloomberg Law.
Separately, Goldman Sachs (GS 204.14, +4.21, +2.1%) and Microsoft (MSFT 184.91, +2.08, +1.1%) received price-target increases to $230 and $250, respectively, at Wells Fargo. The turnaround in MSFT shares, which were down nearly 1% intraday, helped support the broader market in afternoon trade.
U.S. Treasuries ended the session on a lower note, pushing yields slightly higher. The 2-yr yield increased two basis points to 0.16%, and the 10-yr yield increased two basis points to 0.68%. The U.S. Dollar Index declined 0.1% to 97.72. WTI crude rose 3.8%, or $1.35, to $36.80/bbl.
Investors did not receive any notable economic reports on Tuesday. Looking ahead, investors will receive the ADP Employment Change report for May, the ISM Non-Manufacturing Index for May, Factory Orders for April, and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +7.1% YTD
S&P 500 -4.6% YTD
Dow Jones Industrial Average -9.8% YTD
Russell 2000 -15.0% YTD
Market Snapshot
Dow 25742.65 +267.63 (1.05%)
Nasdaq 9608.40 +56.33 (0.59%)
SP 500 3080.69 +25.09 (0.82%)
10-yr Note -2/32 0.678
NYSE Adv 2146 Dec 753 Vol 1.0 bln
Nasdaq Adv 2017 Dec 1240 Vol 3.9 bln
Industry Watch
Strong: Energy, Materials, Industrials
Weak: Consumer Staples
Moving the Market
-- Stock market closes near session highs in "pain trade"
-- Continued optimism about an economic recovery; cyclical sectors outperformed
-- Turnaround in mega-cap stocks supported the market's strong finish
WTI crude gains nearly 4%
02-Jun-20 15:30 ET
Dow +103.23 at 25578.25, Nasdaq -1.78 at 9550.29, S&P +5.56 at 3061.16
[BRIEFING.COM] The S&P 500 continues to pare gains and is now up just 0.2%.
One last look at the S&P 500 sectors shows nine of the 11 sectors trading in positive territory. The energy (+2.0%), materials (+1.6%), and industrials (+1.1%) remain in the lead, while the consumer staples (-0.4%) and communication services (-0.1%) sectors tick lower.
WTI crude futures settled today's session up $1.35 (+3.8%) to $36.80/bbl.
Stock market posts modest gains to start the week
01-Jun-20 16:15 ET
Dow +91.91 at 25475.02, Nasdaq +62.18 at 9552.07, S&P +11.42 at 3055.60
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The major indices posted modest gains on Monday, as the market remained resilient to selling pressure and enthused by reopening prospects. The S&P 500 (+0.4%) and Nasdaq Composite (+0.4%) both increased 0.4%, while the Russell 2000 (+0.8%) and Dow Jones Industrial Average (+0.7%) pulled ahead.
Early in the day, investors showed little conviction following the nationwide protests over the death of George Floyd and a Bloomberg report that suggested Chinese officials instructed major state-run agricultural companies to pause their purchases of some U.S. agricultural products. Despite the negative backdrop, reopening optimism slowly pushed stocks higher.
Shares of beaten-down small-caps, banks, airlines, cruise lines, and energy companies were among the biggest gainers. At the same time, investors assumed some defensive positioning within the mega-caps and the S&P 500 real estate (+2.1%) and utilities (+1.0%) sectors, which outperformed alongside the financials (+1.2%) and energy (+1.7%) sectors.
Today's sector laggards were the health care (-1.0%) and information technology (unch) sectors. Pfizer (PFE 35.46, -2.73, -7.2%) was a noticeable drag on the health care space after the company provided a disappointing update for its Phase 3 breast cancer trial.
On a related note, Eli Lilly (LLY 152.45, -0.50, -0.3%) initiated the first study of a potential COVID-19 antibody treatment in humans. LLY shares, however, closed lower amid the intraday weakness in the sector.
Separately, reports indicated that OPEC moved up its production meeting to June 4 and that it's close to reaching an agreement with Russia to extend production cuts by another two months. WTI crude futures declined 0.6%, or $0.21, to $35.28/bbl despite the news.
U.S. Treasuries ended the session little changed. The 2-yr yield and the 10-yr yield were flat at 0.15% and 0.65%, respectively. The U.S. Dollar Index declined another 0.5% to 97.82, as reopening optimism increased demand for foreign currencies.
Reviewing Monday's economic data, which included the ISM Manufacturing Index for May:
The ISM Manufacturing Index for May ticked up to 43.1% (Briefing.com consensus 44.0%) from 41.5% in April. This the third straight reading below 50.0%, which is the dividing line between expansion and contraction.
The key takeaway from the report is that upticks were seen in the key measures of new orders, production, employment, prices, backlog of orders, and new export orders. All were still below 50.0%, yet they corroborate the view that the downturn in manufacturing activity wasn't as bad as the downturn seen in April.
Construction spending declined 2.9% m/m in April (Briefing.com consensus -6.0%) on the heels of a downwardly revised flat reading (from +0.9%) for March. Total residential spending was down 4.5% while total nonresidential spending decreased 1.8%.
The key takeaway from the report is that total construction spending is still up 3.0% yr/yr, underpinned by a 3.8% yr/yr increase in total private construction spending and a 0.8% yr/yr increase in total public construction spending.
Looking ahead, investors will receive auto and truck sales throughout the day on Tuesday.
Nasdaq Composite +6.5% YTD
S&P 500 -5.4% YTD
Dow Jones Industrial Average -10.7% YTD
Russell 2000 -15.8% YTD
Market Snapshot
Dow 25475.02 +91.91 (0.36%)
Nasdaq 9552.07 +62.18 (0.66%)
SP 500 3055.60 +11.42 (0.38%)
10-yr Note -1/32 0.666
NYSE Adv 2222 Dec 719 Vol 903.9 mln
Nasdaq Adv 1944 Dec 1311 Vol 3.8 bln
Industry Watch
Strong: Financials, Energy, Real Estate, Utilities
Weak: Health Care, Information Technology
Moving the Market
-- Reopening enthusiasm carried stock market higher despite weekend protests, simmering U.S.-China tensions
-- Small-caps, financials, airlines, cruise lines, and energy stocks among biggest gainers; mega-caps outperformed, too
-- Relative weakness in the health care space
WTI crude settles slightly lower
01-Jun-20 15:25 ET
Dow +104.81 at 25487.92, Nasdaq +70.00 at 9559.89, S&P +14.36 at 3058.54
[BRIEFING.COM] The S&P 500 is trading near session highs with a 0.5% gain.
One last look at the S&P 500 sectors shows real estate (+2.6%), energy (+1.9%), utilities (+1.5%), and financials (+1.3%) sectors leading in gains. The health care sector (-0.9%) struggles in negative territory, while the information technology sector (+0.1%) clings onto a small gain.
WTI crude futures settled down $0.21 (-0.6%) to $35.28/bbl. Related news included OPEC moving its production to June 4, and OPEC and its allies are close to extending oil production cuts by another two months.
Stocks give up intraday gains on China uncertainty
28-May-20 16:20 ET
Dow -147.63 at 25400.64, Nasdaq -43.37 at 9369.01, S&P -6.40 at 3029.60
https://www.briefing.com/stock-market-update
[BRIEFING.COM] U.S. stocks trimmed weekly gains on Thursday, as headline uncertainty related to China caused the major indices to falter into the close. The S&P 500 (-0.2%), Dow Jones Industrial Average (-0.6%), and Nasdaq Composite (-0.5%) finished slightly lower. The Russell 2000, which traded lower for most of the session, declined 2.5%.
The market started the session little changed, catching its breath after a strong two-day rally, but also after China approved legislation to tighten its control over Hong Kong, weekly initial jobless claims totaled 2.123 million (Briefing.com consensus 1.950 million), and Q1 GDP was revised down to -5.0% (Briefing.com consensus -4.8%) from -4.8% in the advance estimate.
Investors, at first, didn't feel inclined to sell given the fear of missing out on further gains amid growing signs of an economic recovery. Buyers, instead, concentrated their efforts toward the defensive-oriented segments of the market, such as the leading S&P 500 utilities (+3.0%), health care (+1.3%), and real estate (+1.2%) sectors.
Sellers later took control after President Trump said late in the session that he will hold a press event about China on Friday. Reports indicated that the president could unveil sanctions on Chinese officials in response to the Hong Kong national security law, threatening to exacerbate U.S.-China tensions.
The S&P 500 energy (-2.9%) and financials (-1.6%) sectors accelerated intraday losses following the headline negativity, while the consumer discretionary (-1.1%), industrials (-1.0%), and communication services (-1.0%) sectors fell into negative territory.
Shares of Facebook (FB 225.46, -3.68, -1.6%) and Twitter (TWTR 31.60, -1.47, -4.5%), meanwhile, were pressured by President Trump's executive-order plans to limit legal protections for social media companies that unfairly stifle free speech.
Separately, Workday (WDAY 182.56, +12.18, +7.2%) and Dollar Tree (DLTR 97.64, +10.11, +11.6%) stood out after pleasing investors with their earnings reports, while HP Inc. (HPQ 15.01, -2.11, -12.3%) disappointed investors with its results.
U.S. Treasuries ended the session mixed. The 2-yr yield was unchanged at 0.17%, while the 10-yr yield increased three basis points to 0.71%. The U.S. Dollar Index declined 0.6% to 98.50. WTI crude futures rose 2.7%, or $0.89, to $33.68/bbl.
Reviewing Thursday's batch of economic data:
Initial claims for the week ending May 23 decreased by 323,000 to 2.123 million (Briefing.com consensus 1.950 million). Continuing claims for the week ending May 16 decreased by 3,860,000 to 21.052 million.
The key takeaway from the report will be the downturn in continuing claims, which will feed into the market's upbeat view about reopening prospects.
New orders for durable goods declined 17.2% m/m in April (Briefing.com consensus -17.0%) following a downwardly revised 16.6% decline (from -14.4%) in March. Excluding transportation, new orders for durable goods declined 7.4% m/m (Briefing.com consensus -8.4%) following a downwardly revised 1.7% decline (from -0.2%) in March.
The key takeaway from the report is that it wasn't much of a surprise as activity in April seized up with the shutdown measures employed to contain the spread of the coronavirus.
The second estimate for Q1 GDP showed a downward revision to -5.0% (Briefing.com consensus -4.8%) from the 4.8% decline seen in the advance estimate. The GDP Price Deflator was revised up to 1.4% (Briefing.com consensus 1.3%) from 1.3%.
The key takeaway from the report is that it's old news for a market that is clearly locked on the idea that economic activity is going to be rebounding in coming months.
Pending Home Sales dropped 21.8% in April (Briefing.com consensus -4.8%) after declining an unrevised 20.8% in March.
Looking ahead to Friday, investors will receive the Personal Income and Spending report for April, the revised University of Michigan Index of Consumer Sentiment for May, the Chicago PMI for May, and the Advance International Trade in Goods, Retail Inventories, and Wholesale Goods reports for April.
Nasdaq Composite +4.4% YTD
S&P 500 -6.2% YTD
Dow Jones Industrial Average -11.0% YTD
Russell 2000 -16.1% YTD
Market Snapshot
Dow 25400.64 -147.63 (-0.58%)
Nasdaq 9369.01 -43.37 (-0.46%)
SP 500 3029.60 -6.40 (-0.21%)
10-yr Note -1/32 0.700
NYSE Adv 1220 Dec 1665 Vol 1.0 bln
Nasdaq Adv 1107 Dec 2135 Vol 4.0 bln
Industry Watch
Strong: Health Care, Utilities, Real Estate
Weak: Financials, Energy, Consumer Discretionary, Industrials, Communication Services
Moving the Market
-- President Trump said he will hold a press event about China on Friday, headline uncertainty causes stocks to give up intraday gains
-- Weekly initial jobless claims totaled 2.123 million (Briefing.com consensus 1.950 million)
-- Defensive-minded session
WTI crude gains nearly 3%
28-May-20 15:30 ET
Dow +29.50 at 25577.77, Nasdaq +32.35 at 9444.73, S&P +13.70 at 3049.70
[BRIEFING.COM] The S&P 500 is losing some gains and is currently up 0.5%.
Looking at the S&P 500 sectors shows mixed results. The utilities (+3.1%), health care (+1.9%), and materials (+1.4%) sectors remain today's leaders, while the energy (-1.6%), financials (-0.6%), and consumer discretionary (-0.3%) sectors lag.
WTI crude futures settled today's session up $0.89 (+2.7%) to $33.68/bbl.
Value stocks lead market higher
27-May-20 16:25 ET
Dow +553.16 at 25548.27, Nasdaq +72.14 at 9412.38, S&P +44.36 at 3036.00
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 advanced 1.5% on Wednesday in a broad-based advance led by many of the value-oriented stocks. The Dow Jones Industrial Average (+2.2%) and Russell 2000 (+3.1%) outperformed the benchmark index, while the Nasdaq Composite increased 0.8%.
From a sector perspective, the S&P 500 financials (+4.3%) and industrials (+3.3%) sectors benefited the most from this value trade, which was based the speculation that these beaten-down cyclical groups will outperform in an economic recovery that is being priced in the stock market. The information technology sector (+0.5%) was today's sector laggard.
Today's price action was notable in the sense that investors continued to buy the intraday dip (S&P 500 was down 0.7% in the morning), which then progressed into a steady advance throughout the day. A strong finish helped the S&P 500 close firmly above its 200 day-moving average (3000) for the first time since March 4.
Signals out of Washington, meanwhile, were mixed. Senate Majority Leader McConnell said Senate discussions for a fifth COVID-19 relief bill will start in June, while Secretary of State Pompeo said he reported to Congress that Hong Kong is no longer autonomous from China.
The possibility for more fiscal stimulus was regarded as positive news, while the threat of increased U.S.-China tensions remained something to consider but nothing to worry about. President Trump, meanwhile, threatened "big action" against Twitter (TWTR 33.07, -0.94, -2.8%) after the company issued fact-checking labels on two of his tweets.
Separately, the Fed's Beige Book noted a sharp decrease in economic activity in all districts based on information collected on or before May 18. This was regarded as "old" news, though, with many businesses continuing to reopen, including a "green shoots" observation from Boeing (BA 149.52, +4.79, +3.3%).
U.S. Treasuries finished mixed and little changed. The 2-yr yield was unchanged at 0.17%, and the 10-yr yield declined two basis points to 0.68%. The U.S. Dollar Index increased 0.1% to 99.01. WTI crude declined 1.1% (-$0.38) to $33.98/bbl.
Wednesday's economic data was limited to the weekly MBA Mortgage Applications Index, which increased 2.7% following a 2.6% decline in the prior week. Looking ahead to Thursday, investors will receive the weekly Initial and Continuing Claims report, Durable Goods Orders for April, the second estimate for Q1 GDP, and Pending Home Sales for April.
Nasdaq Composite +4.9% YTD
S&P 500 -6.0% YTD
Dow Jones Industrial Average -10.5% YTD
Russell 2000 -13.9% YTD
Market Snapshot
Dow 25548.27 +553.16 (2.21%)
Nasdaq 9412.38 +72.14 (0.77%)
SP 500 3036.00 +44.36 (1.48%)
10-yr Note +1/32 0.688
NYSE Adv 2361 Dec 537 Vol 1.1 bln
Nasdaq Adv 2196 Dec 1087 Vol 4.4 bln
Industry Watch
Strong: Financials, Industrials, Real Estate
Weak: Information Technology
Moving the Market
-- Value stocks lead market higher and lift S&P 500 back above its 200-day moving average (3000)
-- Senate will discuss the next COVID-19 relief bill in June, European Commission proposed a EUR750 billion recovery fund
-- Bullish trend prevails on recovery optimism
WTI crude settles modestly lower
27-May-20 15:25 ET
Dow +358.26 at 25353.37, Nasdaq +34.77 at 9375.01, S&P +27.60 at 3019.24
[BRIEFING.COM] The S&P 500 is up 0.9% to extend its weekly gain to 2.2%.
One last look at the S&P 500 sectors shows all 11 sectors now trading higher. The financials (+3.6%) and industrials (+2.6%) sectors remain on top, while the information technology (+0.1%) sector clings onto a slim gain.
WTI crude settled today's session down $0.38 (-1.1%) to $33.98/bbl.
Stocks rise to start the week
26-May-20 16:20 ET
Dow +529.95 at 24995.11, S&P +36.32 at 2991.64
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 rallied as much as 2.2% on Tuesday on a familiar reopening trade, but some weakness into the close left the benchmark index up 1.2% for the session. The Dow Jones Industrial Average (+2.2%), Russell 2000 (+2.8%), and S&P MidCap 400 (+3.4%) outperformed, while the Nasdaq Composite increased just 0.2%.
Some attributed today's late selling to a Bloomberg report that indicated the Trump administration was considering sanctions on Chinese officials, businesses, and financial institutions in response to Beijing's plans to tighten control over Hong Kong. The news wasn't exactly "new," but the negative-sounding headline helped take the S&P 500 below its 200-day moving average (3000) on a closing basis.
Nevertheless, stocks remained supported by a multitude of factors, namely favorable monetary and fiscal policy; reopening efforts; vaccine progress; and a bullish trend that has pulled in reluctant investors fearful of missing out on further gains. Over the extended weekend, many more businesses continued to reopen as the rate of new coronavirus cases and deaths continued to flatten or decline.
The reopening trade was still manifested in the leadership from the financials (+5.0%) and industrials (+4.2%) sectors, and in the higher oil prices ($34.36/bbl, +$1.11, +3.3%). The heavily-weighted information technology (-0.1%) and health care (-0.2%) sectors, however, slipped into negative territory.
Deemed as an early catalyst today, Merck (MRK 77.26, +0.89, +1.2%) and Novavax (NVAX 48.17, +2.06, +4.5%) joined the race for a COVID-19 vaccine. Separately, JPMorgan Chase (JPM 95.82, +6.35, +7.1%) CEO Jamie Dimon expressed confidence in his company as well as hope in an economic recovery.
Elsewhere, airline stocks were among today's biggest gainers, evident by the 11.8% gain in the U.S. Global Jets ETF (JETS 15.31, +1.61, +11.8%).
The U.S. Treasury curve continued to experience curve-steepening activity amid the market's upbeat economic outlook. The 2-yr yield was unchanged at 0.17%, while the 10-yr yield increased four basis points to 0.70%. The U.S. Dollar Index declined 0.9% to 98.97.
Reviewing Tuesday's economic data, which was mostly better-than expected:
New home sales increased 0.6% m/m to a seasonally adjusted annual rate of 623,000 (Briefing.com consensus 485,000) from a downwardly revised 619,000 (from 627,000). On a yr/yr basis, new home sales were down 6.2%.
The key takeaway from the report is that the strength in sales was fortified by lower selling prices.
The Conference Board's Consumer Confidence Index checked in at 86.6 for May (Briefing.com consensus 88.5) versus a downwardly revised 85.7 (from 86.9) for April.
The key takeaway from the report is that attitudes about the short-term outlook increased some, reflecting some budding optimism about reopening efforts.
The FHFA Housing Price Index for May increased 0.1% following an upwardly revised 0.8% in April (from +0.7%).
The S&P Case-Shiller Home Price Index increased 3.9% yr/yr in March (Briefing.com consensus 3.8%) following a 3.5% increase in February.
Looking ahead, investors will receive the Fed's Beige Book and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +4.1% YTD
S&P 500 -7.4% YTD
Dow Jones Industrial Average -12.4% YTD
Russell 2000 -16.5% YTD
Market Snapshot
Dow 24995.11 +529.95 (2.17%)
Nasdaq 9340.21 (%)
SP 500 2991.64 +36.32 (1.23%)
10-yr Note -3/32 0.695
NYSE Adv 2455 Dec 461 Vol 1.1 bln
Nasdaq Adv 2299 Dec 970 Vol 4.4 bln
Industry Watch
Strong: Financials, Industrials, Energy
Weak: Health Care, Consumer Staples
Moving the Market
-- Stocks extend bullish trend; S&P 500 trades back above the 3000 level
-- Reopening and vaccine optimism; better-than-expected economic data
-- Broad-based gains
WTI crude futures gain 3%
26-May-20 15:25 ET
Dow +677.17 at 25142.33, Nasdaq +62.40 at 9387.01, S&P +53.86 at 3009.18
[BRIEFING.COM] The S&P 500 continues to trade higher by 1.8% in a relatively tight-ranged session.
One last look at the S&P 500 sectors shows financials (+6.1%), industrials (+5.0%), and energy (+3.8%) continuing to lead the rally, while the information technology (+0.4%) and health care (+0.4%) sectors hold onto modest gains.
WTI crude futures settled today's session higher by $1.11 (+3.3%) to $34.36/bbl.
S&P 500 ekes out gain in front of holiday weekend
22-May-20 16:20 ET
Dow -8.96 at 24465.16, Nasdaq +39.71 at 9324.61, S&P +6.94 at 2955.32
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The major indices closed near session highs on Friday, preserving their weekly gains in front of the Memorial Day weekend. The S&P 500 increased 0.2%, the Nasdaq Composite increased 0.4%, and the Russell 2000 increased 0.6%. The Dow Jones Industrial Average (-0.04%) finished just below its flat line.
From a sector perspective, investors leaned defensively, evident by the positive performances from the S&P 500 real estate (+2.2%), utilities (+1.1%), and consumer staples (+0.3%) sectors. The information technology (+0.4%) and communication services (+0.5%) sectors also closed higher.
The tech sector was perked up by shares of NVIDIA (NVDA 361.05, +10.04, +2.9%) after the company reported positive quarterly results and upbeat guidance. Conversely, many of the cyclical sectors closed lower, including energy (-0.7%) and financials (-0.3%). Energy stocks were clipped by the decline in oil prices ($33.25, -0.71, -2.1%).
The price action was relatively muted throughout the day, with the broader market barely reacting to positive or negative news. The S&P 500 traded lower for most of the day, so the positive finish was good to see for the bulls.
Today's negative news came out of China as reports indicated it was going to implement national security laws on Hong Kong to tighten its control over the region. The Hang Seng Index declined 5.6% on Friday, while shares of Alibaba (BABA 199.70, -12.46, -5.9%) declined 6% despite beating quarterly estimates.
Separately, NIAID Director Fauci told media outlets that he was "cautiously optimistic" about Moderna's (MRNA 69.00, +1.95, +2.9%) COVID-19 vaccine candidate and that it was possible to develop a vaccine by the end of the year.
U.S. Treasuries closed mixed. The 2-yr yield increased two basis points to 0.17%, while the 10-yr yield decreased two basis points to 0.66%. The U.S. Dollar Index increased 0.4% to 99.77.
Investors did not receive any economic data on Friday and will not receive any on Monday due to the market's closure for Memorial Day.
Nasdaq Composite +3.9% YTD
S&P 500 -8.5% YTD
Dow Jones Industrial Average -14.3% YTD
Russell 2000 -18.8% YTD
Market Snapshot
Dow 24465.16 -8.96 (-0.04%)
Nasdaq 9324.61 +39.71 (0.43%)
SP 500 2955.32 +6.94 (0.24%)
10-yr Note +1/32 0.661
NYSE Adv 1640 Dec 1246 Vol 719.7 mln
Nasdaq Adv 1845 Dec 1357 Vol 3.6 bln
Industry Watch
Strong: Real Estate, Utilities, Information Technology, Communication Services
Weak: Energy, Financials
Moving the Market
-- S&P 500 ekes out gain in front of the Memorial Day weekend
-- Defensive-oriented sectors outperformed
-- China withdraws 2020 GDP growth target, says it will implement national security laws on Hong Kong
WTI crude caps strong week on lower note
22-May-20 15:25 ET
Dow -93.92 at 24380.20, Nasdaq +10.47 at 9295.37, S&P -3.09 at 2945.29
[BRIEFING.COM] The S&P 500 has slipped back below its flat line with 30 minutes left to go in the session. The Russell 2000 is up 0.3%, extending its weekly gain to 7.6%.
One last peak into the S&P 500 sectors shows energy (-1.2%) and financials (-0.6%) weighing on the broader market, while support is coming from the real estate (+1.5%), utilities (+0.4%), and communication services (+0.2%) sectors.
WTI crude futures settled down $0.71 (-2.1%) to $33.25/bbl but still ended the week higher by 13.2%.
S&P 500 closes at highest level since March 6
20-May-20 16:15 ET
Dow +369.04 at 24575.90, Nasdaq +190.67 at 9375.80, S&P +48.67 at 2971.48
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 gained 1.7% on Wednesday in a broad-based advance to close at its highest level since March 6. The Nasdaq Composite (+2.1%) and Russell 2000 (+3.0%) increased more than the benchmark index, while the Dow Jones Industrial Average rose 1.5%.
Stocks reclaimed the prior day's losses at the open and proceeded to drift higher throughout the day. The market remained resilient with little news to meaningfully deter its bullish mindset or economic recovery hopes. All 11 S&P 500 sectors contributed to the advance.
The energy sector (+3.8%) followed oil prices ($33.51, +1.21, +3.8%) higher after EIA data showed an unexpected weekly decline in crude inventories. The financials (+2.2%) and communication services (+2.7%) sectors followed suit, with the latter benefiting from a 6.0% gain in shares of Facebook (FB 229.97, +13.09). The health care sector (+0.1%) eked out a small gain.
In Washington, the Senate passed the Holding Foreign Companies Accountable Act, which requires certain foreign companies listed in the U.S. to certify that they are not owned or controlled by a foreign government. Failure to provide appropriate certification could result in de-listing.
The increased scrutiny on Chinese companies pressured shares of Alibaba (BABA 216.79, -0.41, -0.2%) and Baidu (BIDU 108.52, -1.23, -1.1%), while the broader U.S. market was barely bothered by the bill's potential to worsen U.S.-China tensions.
Shares of Target (TGT 119.63, -3.53, -2.9%) and Lowe's (LOW 116.99, +0.12, +0.1%) struggled throughout the session despite beating top and bottom-line estimates. TGT shares fell 3%, while LOW shares squandered an early 5% gain. Analog Devices (ADI 114.57, +8.24, +7.8%) was an earnings standout.
Separately, the FOMC Minutes from the April meeting revealed that policymakers discussed targeting yields on shorter tenors and considered changes to how forward guidance is expressed. The 2-yr yield declined two basis points to 0.16%, and the 10-yr yield declined three basis points to 0.68%. The U.S. Dollar Index declined 0.2% to 99.14.
Wednesday's economic data was limited to the weekly MBA Mortgage Applications Index, which decreased 2.6% following a 0.3% increase in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report, Existing Home Sales for April, the Philadelphia Fed Index for May, and the Conference Board's Leading Economic Index for April on Thursday.
Nasdaq Composite +4.5% YTD
S&P 500 -8.0% YTD
Dow Jones Industrial Average -13.9% YTD
Russell 2000 -19.3% YTD
Market Snapshot
Dow 24575.90 +369.04 (1.52%)
Nasdaq 9375.80 +190.67 (2.08%)
SP 500 2971.48 +48.67 (1.67%)
10-yr Note +1/32 0.685
NYSE Adv 2312 Dec 589 Vol 921.0 mln
Nasdaq Adv 2558 Dec 696 Vol 4.2 bln
Industry Watch
Strong: Energy, Financials, Communication Services, Industrials
Weak: Health Care, Utilities
Moving the Market
-- S&P 500 closes at highest level since March 6
-- Broad-based advance, relative strength in energy, financials, and communication services sectors
-- Little news to deter market's bullish mindset, recovery hopes
WTI crude extends rally by 4%
20-May-20 15:25 ET
Dow +361.64 at 24568.50, Nasdaq +183.16 at 9368.29, S&P +48.13 at 2970.94
[BRIEFING.COM] The S&P 500 continues to sport a solid 1.7% gain.
One last look at the S&P 500 sectors shows all 11 sectors still trading in positive territory. The energy (+3.7%), communication services (+2.7%), and financials (+2.4%) sectors set the performance pace, while the health care sector (+0.2%) sectors clings onto a slim gain.
WTI crude futures settled today's session higher by $1.21 (+3.8%) to $33.51/bbl.
Stocks succumb to late-day selling
19-May-20 16:15 ET
Dow -390.51 at 24206.86, Nasdaq -49.72 at 9185.13, S&P -30.97 at 2922.81
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 pulled back 1.1% on Tuesday, as stocks succumbed to late-day selling following a negative-sounding vaccine headline. The Dow Jones Industrial Average (-1.6%) and Russell 2000 (-2.0%) declined more than the benchmark index, while the Nasdaq Composite (-0.5%) fared slightly better.
For most of the session, the S&P 500 wavered around its flat line, supported by relative strength in the technology stocks. As the S&P 500 traded at session highs (+0.4%) late in the session, Stat News published a report in which vaccine experts cautioned about Moderna's (MRNA 71.67, -8.33, -10.4%) COVID-19 vaccine candidate due to a lack of critical data provided.
Recall, stocks rallied on Monday after the company said a Phase 1 trial yielded positive results. The negative-sounding headline, then, provided a good excuse for investors to take some profits given the uncertainty that remains.
All 11 S&P 500 sectors finished in negative territory, most notably the financials (-2.5%) and energy (-2.9%) sectors. The consumer discretionary (-0.1%), information technology (-0.4%), and communication services (-0.4%) sectors gave up gains as selling accelerated into the close.
In Washington, Fed Chair Powell and Treasury Secretary Mnuchin testified before the Senate Banking Committee regarding the government response to COVID-19. Mr. Powell reiterated the Fed's commitment to using its full range of tools to support the economy, and Mr. Mnuchin said he's prepared to increase risk and lend more money.
The testimony was not a market-moving event, while several stocks did react to specific corporate news. For example, Dow components Walmart (WMT 124.95, -2.71, -2.1%) and Home Depot (HD 238.10, -7.25, -3.0%) finished lower following their earnings reports.
Separately, Facebook (FB 216.88, +3.69, +1.7%) introduced "Facebook Shops" and "Instagram Shop" to help more businesses go online. Spotify (SPOT 175.03, +13.60, +8.4%) shares climbed 8% after the company reached a deal to exclusively host the Joe Rogan Experience podcast.
U.S. Treasuries ended the session with small gains. The 2-yr yield declined one basis point to 0.18%, and the 10-yr yield declined three basis points to 0.71%. The U.S. Dollar Index declined 0.1% to 99.55. WTI crude rose another 1.5%, or $0.48, to $32.30/bbl.
Reviewing Tuesday's economic data:
Housing starts fell 30.2% m/m in April to a seasonally adjusted annual rate of 891,000 (Briefing.com consensus 950,000). Building permits were down 20.8% m/m to a seasonally adjusted annual rate of 1.074 million (Briefing.com consensus 1.000 mln).
The key takeaway from the report is that while building permits exceeded expectations, permits for single-family dwellings decreased 24.3% m/m to 669,000, which points to a slowing market.
Looking ahead, investors will receive the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +2.4% YTD
S&P 500 -9.5% YTD
Dow Jones Industrial Average -15.2% YTD
Russell 2000 -21.6% YTD
Stocks bolstered by positive vaccine update
18-May-20 16:15 ET
Dow +911.95 at 24597.37, Nasdaq +220.27 at 9234.85, S&P +90.21 at 2953.78
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 rallied 3.2% on Monday, as reopening hopes were fueled by a positive vaccine update from Moderna (MRNA 80.00, +13.31, +20.0%). The small-cap Russell 2000 outperformed with a 6.1% gain, followed by the Dow Jones Industrial Average (+3.9%) and Nasdaq Composite (+2.4%).
Prior to the open, Moderna announced that a Phase 1 study for its COVID-19 vaccine candidate yielded positive interim clinical results. The company was hopeful that a Phase 3 trial could begin earlier than expected in July, and it started scaling up its manufacturing capacity so it can produce as much vaccine as possible if approved.
The news provided an added boost to the market, which was already trading higher following Fed Chair Powell's "60 Minutes" interview with CBS. Mr. Powell assured the market that the Fed is still not out of ammunition and suggested Congress should do more. Mr. Powell also said that a full economic recovery could take more than a year and will likely require a vaccine.
The timely vaccine update, then, coupled with the Fed's support and an increase in nationwide reopening efforts, helped ignite a cyclically-charged rally.
All 11 S&P 500 sectors finished higher, including leadership from the energy (+7.6%), industrials (+6.6%), and financials (+5.3%) sectors. Oil prices climbed 8.3%, or $2.44, to $31.82/bbl. Treasuries sold off, driving yields higher in a curve-steepening trade. The CBOE Volatility Index declined 8.0% to 29.33.
Apple (AAPL 314.96, +7.25, +2.4%), Walt Disney (DIS 116.85, +7.80, +7.2%), and Delta Air Lines (DAL 21.86, +2.67, +13.9%) were among the latest companies announcing plans to ramp up their reopening efforts.
Uber (UBER 33.62, +1.15, +3.5%), on the other hand, said it plans to reduce its workforce by an additional 3,000 employees and scale back its non-core businesses due to economic challenges caused by COVID-19. Shares were up nearly 11% following the news but retraced gains to close higher by 3.5%.
As mentioned, Treasury yields increased as safe-haven demand waned amid today's bullish mindset. The 2-yr yield increased four basis points to 0.19%, and the 10-yr yield increased ten basis points to 0.74%. The U.S. Dollar Index declined 0.8% to 99.60.
Monday's economic data was limited to the NAHB Housing Market Index for May, which increased to 37 (Briefing.com consensus 34) from 30 in April. Looking ahead, investors will receive Housing Starts and Building Permits for April on Tuesday.
Nasdaq Composite +2.9% YTD
S&P 500 -8.6% YTD
Dow Jones Industrial Average -13.8% YTD
Russell 2000 -20.1% YTD
Market Snapshot
Dow 24597.37 +911.95 (3.85%)
Nasdaq 9234.85 +220.27 (2.44%)
SP 500 2953.78 +90.21 (3.15%)
10-yr Note -8/32 0.726
NYSE Adv 2601 Dec 313 Vol 1.2 bln
Nasdaq Adv 2674 Dec 593 Vol 4.3 bln
Industry Watch
Strong: Energy, Industrials, Financials, Real Estate
Weak: Health Care, Consumer Staples
Moving the Market
-- Stocks rallied following positive vaccine update from Moderna (MRNA), fueled reopening enthusiasm
-- Fed Chair Powell said central bank is not out of ammunition, suggests Congress should do more
-- Broad-based equity gains; oil prices climbed 8%, Treasuries decline in curve-steepening trade
WTI crude futures rise 8%
18-May-20 15:25 ET
Dow +922.90 at 24608.32, Nasdaq +221.90 at 9236.48, S&P +95.48 at 2959.05
[BRIEFING.COM] The S&P 500 continues to trade near session highs with a 3.3% gain.
One last look at the S&P 500 sectors shows the energy (+7.7%), industrials (+6.7%), and financials (+5.5%) sectors leading in gains. The health care (+1.3%) and consumer staples (+1.3%) sectors underperform, likely due to their defensive-oriented nature.
WTI crude futures settled today's session higher by $2.44 (+8.3%) to $31.82/bbl.
Stocks close higher despite headline negativity
15-May-20 16:20 ET
Dow +60.08 at 23685.42, Nasdaq +70.84 at 9014.58, S&P +11.20 at 2863.57
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.4%), Dow Jones Industrial Average (+0.3%), and Nasdaq Composite (+0.8%) ended Friday's session modestly higher, recovering from early declines that followed more weak economic data and increased U.S.-China tensions. The Russell 2000 outperformed with a 1.6% gain after a rough week for the small-cap index.
The communication services (+1.3%), consumer discretionary (+1.1%), and materials (+1.0%) sectors led today's gains, helping the S&P 500 rebound from an early 1.3% decline. The utilities (-1.4%) and financials (-0.7%) sectors were Friday's laggards.
Early in the day, economic data showed total retail sales decline a record 16.4% m/m in April (Briefing.com consensus -11.9%) and industrial production decline 11.2% m/m in April (Briefing.com consensus -12.1%). The market wasn't visibly upset by the data, though, likely due to the prevailing view that it can't get any worse.
Instead, there was a negative reaction to news that the Trump administration moved to block semiconductor shipments to China's Huawei Technologies. With relations already strained because of the coronavirus outbreak, the move renewed worries about potential Chinese retaliation against U.S. companies.
Investors bought buy the dip, though, except in the semiconductor space given the headline negativity. The Philadelphia Semiconductor Index declined 2.2%, which included an earnings-related decline in Applied Materials (AMAT 52.04, -2.39, -4.4%).
Outside the semiconductor space, oil prices capped a strong week with another solid performance. WTI crude futures rose 7.1%, or $1.94, to $29.38/bbl today to extend its weekly advance to 18.8%.
DraftKings (DKNG 29.23, +3.92, +15.5%) was an individual standout after the sports betting company topped EPS estimates and provided positive commentary regarding its outlook.
U.S. Treasuries ended the week with modest losses. The 2-yr yield increased one basis point to 0.15%, and the 10-yr yield increased two basis points to 0.64%. The U.S. Dollar Index declined 0.1% to 100.38.
Reviewing Friday's economic data:
Total retail sales declined a record 16.4% m/m in April (Briefing.com consensus -11.9%) while retail sales, excluding autos, declined 17.2% m/m (Briefing.com consensus -8.2%).
The key takeaway from the report is that the broad-based weakness is a representation of the adverse spending shock that resulted from shutdown measures, announced pay cuts, and the massive jump in unemployment.
Industrial production declined 11.2% m/m in April (Briefing.com consensus -12.1%), which was the largest monthly drop in the 101-year history of the index. The capacity utilization rate fell from 73.2% to 64.9% (Briefing.com consensus 64.0%), which is 14.9 percentage points below its long-run average and a record-low in a series that dates back to 1967.
The key takeaway from the report is that it is a reflection of how industrial production cratered amid shutdown orders designed to contain the spread of COVID-19. On a yr/yr basis, industrial production was down 15.0%.
The University of Michigan's Index of Consumer Sentiment rose to 73.7 in the preliminary reading for May (Briefing.com consensus 67.4) from 71.8 in April.
The key takeaway from the report is that attitudes about current conditions improved while sentiment surrounding the outlook continued to deteriorate, pinched by concerns about financial prospects that were most notable among upper income households. That is apt to be a headwind for a pickup in consumer spending.
The Empire State Manufacturing Survey for May checked in at -48.5 (Briefing.com consensus -58.0) following the prior month's reading of -78.2.
March job openings decreased to 6.191 mln from a revised 7.004 mln in February (from 6.882 mln).
Business inventories decreased 0.2% in March, while the February reading was revised down to -0.5% from -0.4%.
Looking ahead, investors will receive the NAHB Housing Market Index for May on Monday.
Nasdaq Composite +0.5% YTD
S&P 500 -11.4% YTD
Dow Jones Industrial Average -17.0% YTD
Russell 2000 -24.7% YTD
Market Snapshot
Dow 23685.42 +60.08 (0.25%)
Nasdaq 9014.58 +70.84 (0.79%)
SP 500 2863.57 +11.20 (0.39%)
10-yr Note -25/32 0.650
NYSE Adv 1625 Dec 1217 Vol 1.4 bln
Nasdaq Adv 1985 Dec 1235 Vol 4.2 bln
Industry Watch
Strong: Communication Services, Consumer Discretionary, Materials
Weak: Utilities, Financials
Moving the Market
-- Stocks recoup early losses to lift major indices into positive territory
-- Increased tensions with China; Retail sales and industrial production were noticeably weak in April
-- Relative weakness in the semiconductor space after Trump administration moves to block semiconductor shipments to Huawei
WTI crude caps strong week with another x% gain
15-May-20 15:30 ET
Dow +50.00 at 23675.34, Nasdaq +50.58 at 8994.32, S&P +5.82 at 2858.19
[BRIEFING.COM] The S&P 500 continues to drift higher with a 0.2% gain. The Russell 2000 outperforms with a 1.5% gain to reduce its weekly decline to 5.6%.
One last look inside the S&P 500 sectors shows most trading higher now. The communication services (+1.1%) and consumer discretionary (+1.0%) sectors lead, while the utilities (-2.5%) and real estate (-1.1%) sectors lag.
WTI crude futures settled today's session higher by $1.94 (+7.1%) to $29.38/bbl. For the week, oil was up 18.8%.
Stocks close higher in turnaround trade led by financials
14-May-20 16:20 ET
Dow +377.37 at 23625.34, Nasdaq +80.55 at 8943.74, S&P +32.50 at 2852.37
https://stockcharts.com/def/servlet/ScanUI
[BRIEFING.COM] The S&P 500 advanced 1.2% on Thursday in a turnaround trade led by the beaten-up financials sector. The benchmark index was down as much as 1.9% in early action following a relatively disappointing weekly jobless claims report.
The Dow Jones Industrial Average increased 1.6%, and the Nasdaq Composite increased 0.9%. The Russell 2000 underperformed with a 0.4% gain.
Total jobless claims for the week ending May 9 totaled 2.981 million (Briefing.com consensus 2.475 million) while continuing claims for the week ending May 2 totaled 22.833 million. The elevated figures raised doubts on a timely economic recovery, but the data might have prodded lawmakers to act more quickly for additional fiscal stimulus.
Reports followed that the White House was interested in a bipartisan, fourth coronavirus relief bill (although not the $3 trillion bill proposed by House Democrats). The possibility for more stimulus, coupled with a view that the recent weakness in the market provided a good entry point, helped ignite a buy-the-dip mindset.
The S&P 500 financials sector (+2.6%) set the rebound pace amid strength in the bank stocks, including Wells Fargo (WFC 24.06, +1.53, +6.8%) amid speculation that it could merge with Goldman Sachs (GS 174.45, +2.65, +1.5%). The consumer staples sector (-0.3%) was the only sector without a gain today.
Sentiment might have also been boosted by an IEA report suggesting oil demand has been a little stronger than expected, The Wall Street Journal reporting that Taiwan Semi (TSM 52.10, +1.18, +2.3%) will announce plans to build an advanced chip factory in Arizona, and news that Connecticut overstated its weekly initial claims count by more than 200,000.
The IEA report likely contributed to the 8.3% gain in WTI crude futures ($27.44/bbl, +2.10). Separately, Cisco (CSCO 43.85, +1.90, +4.5%) was an earnings standout after the company issued positive quarterly results and guidance.
U.S. Treasuries finished mixed and little changed. The 2-yr yield increased one basis point to 0.16%%, while the 10-yr yield declined two basis points to 0.63%. The U.S. Dollar Index increased 0.1% to 100.31.
Reviewing Thursday's economic data, which featured the weekly jobless claims report:
Total jobless claims for the week ending May 9 were 2,981,000 (Briefing.com consensus 2.475 million). That was a decrease of 195,000 from the prior week, but still an exceedingly high number all things considered. Continuing claims for the week ending May 2 increased by 456,000 to 22.833 million, which is yet another record high.
The key takeaway from the report is that the alarmingly high level of initial and continuing claims paints a risk of a slower recovery due to weaker consumer spending activity and the rising potential that temporary job losses become permanent job losses in an elongated recovery process.
Import prices declined 2.6% in April, and prices, excluding oil, declined 0.5%. Export prices declined 3.3% in April, and prices, excluding agriculture, also declined 3.3%.
Looking ahead, investors will receive a big batch of data on Friday: Retail Sales for April, the Empire State Manufacturing Survey for May, Industrial Production and Capacity Utilization for April, Business Inventories for March, the JOLTS report for March, and Net Long-Term TIC Flows for March.
Nasdaq Composite -0.3% YTD
S&P 500 -11.7% YTD
Dow Jones Industrial Average -17.2% YTD
Russell 2000 -25.8% YTD
Market Snapshot
Dow 23625.34 +377.37 (1.62%)
Nasdaq 8943.74 +80.55 (0.91%)
SP 500 2852.37 +32.50 (1.15%)
10-yr Note +2/32 0.628
NYSE Adv 1585 Dec 1309 Vol 1.1 bln
Nasdaq Adv 1608 Dec 1653 Vol 3.9 bln
Industry Watch
Strong: Financials, Energy
Weak: Industrials, Consumer Staples, Real Estate
Moving the Market
-- Stocks stage rebound attempt led by the bank and energy stocks
-- Total jobless claims for the week ending May 9 were 2,981,000 (Briefing.com consensus 2.475 million).
-- White House reportedly interested in phase four stimulus bill
WTI crude rises 8%
14-May-20 15:30 ET
Dow +291.36 at 23539.33, Nasdaq +33.03 at 8896.22, S&P +19.90 at 2839.77
[BRIEFING.COM] The S&P 500 is trading at session highs with a 0.8% gain.
Most sectors have turned positive with the financials sector now an impressive 2.5%. The defensive-oriented real estate (-0.4%) and consumer staples (-0.2%) sectors are the lone holdouts.
WTI crude settled today's session higher by $2.10 (+8.3%) to $27.44/bbl.
Stocks close lower following cautious comments from Fed Chair Powell
13-May-20 16:20 ET
Dow -516.81 at 23247.97, Nasdaq -139.38 at 8863.19, S&P -50.12 at 2819.87
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 lost 1.8% on Wednesday in a broad-based decline, as investors respected some cautious commentary from Fed Chair Powell. The Dow Jones Industrial Average declined 2.2%, the Nasdaq Composite declined 1.6%, and the Russell 2000 declined 3.3%.
In his speech prior to the open, Fed Chair Powell said the economic outlook remained highly uncertain and subject to significant downside risks, adding that a recovery may take some time to gather momentum. Mr. Powell also said the Fed can do more to help the financial system but dismissed the notion of implementing negative interest rates.
The S&P 500 did trade in positive territory for a moment after the open, but sellers quickly regained control with losses broadening out to all 11 S&P 500 sectors. The energy (-4.4%) and financials (-3.0%) sectors took the biggest hits, while the consumer staples (-0.9%) and utilities (-0.9%) sectors declined less than 1.0%.
Investors were reminded today that part of the economic uncertainty referenced by Fed Chair Powell included U.S-China tensions and hurdles in COVID-19 testing. The latter was noted by a New York University study that suggested Abbott Lab's (ABT 92.16, -1.64, -1.8%) COVID-19 test is prone to false negatives.
Adding to U.S.-China tensions, the FBI confirmed that China-affiliated cyber actors have targeted U.S. organizations conducting COVID-19-related research. Also, a report out of China indicated that Beijing is mulling punitive countermeasure on the U.S. as a result of lawsuits that are seeking COVID-19-related damages.
Separately, valuation concerns were voiced by a couple of influential names. Legendary investor Stanley Druckenmiller said the risk-reward for equity is maybe as bad as he's seen it in his career. Appaloosa Management's David Tepper told CNBC that he hasn't seen the market this overvalued since 1999.
U.S. Treasuries ended the session slightly higher. The 2-yr yield declined one basis point to 0.15%, and the 10-yr yield declined three basis points to 0.65%. The U.S. Dollar Index increased 0.3% to 100.25. WTI crude declined 1.6%, or $0.42, to $25.34/bbl.
Reviewing Wednesday's economic data:
The Producer Price Index for final demand declined 1.3% m/m in April (Briefing.com consensus -0.5%), marking its biggest decrease since records began in December 2009. Most of that decline was attributed to a 3.3% drop in prices for final demand goods.
The Producer Price Index for April may not be convincing enough to the Fed to go down the negative interest rate road, yet the key takeaway is that it will certainly keep it on the path at the lower bound.
The weekly MBA Mortgage Applications Index increased 0.3% following a 0.1% increase in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report and Export and Import Prices for April on Thursday.
Nasdaq Composite -1.2% YTD
S&P 500 -12.7% YTD
Dow Jones Industrial Average -18.5% YTD
Russell 2000 -26.1% YTD
Market Snapshot
Dow 23247.97 -516.81 (-2.17%)
Nasdaq 8863.19 -139.38 (-1.55%)
SP 500 2819.87 -50.12 (-1.75%)
10-yr Note -4/32 0.653
NYSE Adv 325 Dec 2594 Vol 1.1 bln
Nasdaq Adv 623 Dec 2620 Vol 4.2 bln
Industry Watch
Strong: Consumer Staples, Utilities
Weak: Financials, Energy, Industrials
Moving the Market
-- Stocks close lower following cautious commentary from Fed Chair Powell
-- Powell cautions about prolonged economic recovery, suggests more stimulus may be needed
-- Broad-based decline with weakness in the energy and financials sectors
-- Valuation concerns, U.S.-China tensions, COVID-19 testing not perfect
WTI crude settles modestly lower
13-May-20 15:25 ET
Dow -671.69 at 23093.09, Nasdaq -232.15 at 8770.42, S&P -74.37 at 2795.62
[BRIEFING.COM] The S&P 500 is down 2.5% to extend its weekly decline to 4.6%.
One last look at the S&P 500 sector shows all sectors down more than 1%. Energy (-4.8%), financials (-3.3%), and industrials (-3.2%) lead the decline, while the consumer staples sector (-1.4%) sector is the down the least.
WTI crude futures settled down $0.42 (-1.6%) to $25.34/bbl.
Stocks accelerate losses into close
12-May-20 16:20 ET
Dow -457.21 at 23764.78, Nasdaq -189.79 at 9002.57, S&P -60.20 at 2869.99
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 fell 2.1% on Tuesday, with a bulk of losses coming in afternoon trade and into the close. The Dow Jones Industrial Average (-1.9%) and Nasdaq Composite (-2.1%) declined comparably to the benchmark index, while the Russell 2000 underperformed with a 3.5% decline.
There wasn't one specific catalyst driving stocks lower, but profit-taking interest might have been fueled by legislation put forth by Senate Republicans to impose sanctions on China and by Los Angeles reportedly planning to extend the county's stay-at-home order for another three months.
News of the Senate proposal did seem to initiate the selling in the market, which had been trading flat beforehand. The LA news also coincided with the late-day selling, as it paid heed to NIAID Director Fauci's Senate testimony in which he cautioned about reopening the economy too soon.
It's unclear if the market was truly perturbed by the news or if it provided a good excuse for some overdue selling. In either case, all 11 S&P 500 sectors closed in negative territory, led lower by the real estate (-4.3%), industrials (-2.8%), and financials (-2.7%) sectors. The consumer staples (-0.9%) and utilities (-0.9%) sectors declined the least.
Bank and airline stocks were among today's the weakest performers, which was made evident in sharp declines in the SPDR S&P Bank ETF (KBE 27.51, -1.45, -5.0%) and the U.S. Global Jets ETF (JETS 12.68, -0.57, -4.3%).
Bank stocks were pressured by a modest decline in Treasury yields and by President Trump rehashing calls for negative interest rates. Airline stocks were pressured by Boeing (BA 125.22, -3.69, -2.9%) CEO Calhoun telling NBC's "Today" show that a major U.S. airline could go bankrupt because of COVID-19 disruptions.
Conversely, shares of Uber (UBER 32.40, +0.76, +2.4%) and GrubHub (GRUB 60.39, +13.60, +29.1%) exhibited strength after it was reported that Uber made a bid to acquire GrubHub.
As previously noted, U.S. Treasury yields declined amid an uptick in demand for the safe-haven asset. The 2-yr yield declined two basis points to 0.16%, and the 10-yr yield declined five basis points to 0.68%. The U.S. Dollar Index declined 0.3% to 99.97. WTI crude rose 5.3%, or $1.30, to $25.76/bbl.
Reviewing Tuesday's economic data:
The Consumer Price Index declined 0.8% m/m in April, as expected, while core CPI, which excludes food and energy, declined 0.4% (Briefing.com consensus -0.2%). That was the largest drop in total CPI since December 2008 and the largest drop on record going back to 1957 for core CPI.
The key takeaway from the report is that it is a telltale reminder that the Federal Reserve isn't moving off the zero bound anytime soon.
The Treasury Budget for April showed a deficit of $737.85 billion versus a surplus of $160.3 billion in the same period a year ago.
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.
The NFIB Small Business Optimism Index for April declined to 90.9 from 96.4 in March.
Looking ahead, investors will receive the Producer Price Index for April and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +0.3% YTD
S&P 500 -11.2% YTD
Dow Jones Industrial Average -16.7% YTD
Russell 2000 -23.6% YTD
Market Snapshot
Dow 23764.78 -457.21 (-1.89%)
Nasdaq 9002.57 -189.79 (-2.06%)
SP 500 2869.99 -60.20 (-2.05%)
10-yr Note +4/32 0.671
NYSE Adv 686 Dec 2172 Vol 939.5 mln
Nasdaq Adv 947 Dec 2301 Vol 4.3 bln
Industry Watch
Strong: Consumer Staples, Health Care
Weak: Real Estate, Financials, Industrials
Moving the Market
-- Stock market closes lower, losses accelerated into the close
-- Senate Republicans put forth legislation to impose sanctions on China, LA county will reportedly extend stay-at-home order for three months
-- Bank and airline stocks were among laggards
Stocks extend losses, WTI crude gains 5%
12-May-20 15:25 ET
Dow -205.57 at 24016.42, Nasdaq -79.93 at 9112.43, S&P -30.33 at 2899.86
[BRIEFING.COM] The S&P 500 has extended losses and is now down 1.1%. All 11 S&P 500 sectors are now trading lower.
Reopening the U.S. economy has proved to be an uneven path despite what the stock market has been telegraphing over the few weeks. Earlier, it was reported that Los Angeles county's stay at home order will be extended for the next three months.
WTI crude settled today's session up $1.30 (+5.3%) to $25.76/bbl.
S&P 500 recoups early decline and closes flat
11-May-20 16:20 ET
Dow -109.33 at 24221.99, Nasdaq +71.02 at 9192.36, S&P +0.39 at 2930.19
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 finished flat on Monday in a resilient session that started with the benchmark index down 0.9%. The Nasdaq Composite, powered by its mega-cap components, rose 0.8% while the Dow Jones Industrial Average (-0.5%) and Russell 2000 (-0.6%) closed lower.
Monday's lower start was seemingly rooted in pestering worries that reopening the economy too soon could cause additional outbreaks of COVID-19, especially after reports pointed to an uptick in cases in Germany and South Korea. The market quickly disavowed this view, which was likely a good excuse to take a breather, and it returned to positive territory by the afternoon.
Positive news today included New York Governor Cuomo saying he will end state-wide restrictions this Friday, allowing for the re-opening of some low-risk businesses, and Quidel (QDEL 208.95, +50.35, +31.8%) receiving FDA approval for its antigen test for COVID-19. The resiliency in the market likely pulled in under-allocated investors fearful of missing out on further gains.
Health care stocks saw the biggest gains following the antigen news, evidenced by the 1.7% advance in the S&P 500 health care sector. The most influential gains, though, came from the mega-cap technology stocks within the information technology (+0.7%), communication services (+0.1%), and consumer discretionary (+0.1%) sectors.
The S&P 500, which was nearing its April high (2954.86), did falter into the close, pressured by widening losses in the growth-oriented financials (-1.9%), energy (-1.7%), materials (-1.5%), and industrials (-1.3%) sectors.
Separately, shares of NVIDIA (NVDA 322.62, +10.12, +3.2%) set a new all-time high after its price target was raised to $350 from $270 at Needham.
U.S. Treasuries started the session little changed but steadily declined during the rebound in stocks. The 2-yr yield increased four basis points to 0.18%, and the 10-yr yield increased four basis points to 0.72%. The U.S. Dollar Index advanced 0.5% to 100.19. WTI crude lost 1.1%, or $0.25, to $24.46/bbl despite news that Saudi Arabia is planning to cut June production by an additional 1 mln barrels per day.
Investors did not receive any economic data on Monday. On Tuesday, investors will receive the Consumer Price Index for April, the NFIB Small Business Optimism Index for April, and the Treasury Budget for April.
Nasdaq Composite +2.5% YTD
S&P 500 -9.3% YTD
Dow Jones Industrial Average -15.1% YTD
Russell 2000 -20.7% YTD
Market Snapshot
Dow 24221.99 -109.33 (-0.45%)
Nasdaq 9192.36 +71.02 (0.78%)
SP 500 2930.19 +0.39 (0.01%)
10-yr Note -2/32 0.707
NYSE Adv 1003 Dec 1844 Vol 1.0 bln
Nasdaq Adv 1442 Dec 1801 Vol 3.9 bln
Industry Watch
Strong: Health Care, Consumer Staples, Information Technology
Weak: Financials, Materials, Energy
Moving the Market
-- S&P 500 recoups early losses in resilient trade
-- Defensive tone with mega-cap and health care stocks outperfo
Stocks close higher, Nasdaq turns positive for the year
07-May-20 16:20 ET
Dow +211.25 at 23875.89, Nasdaq +125.27 at 8979.68, S&P +32.77 at 2881.19
https://www.briefing.com/stock-market-update
[BRIEFING.COM] Cyclical sectors led the S&P 500 to a 1.2% gain on Thursday, while mega-cap technology stocks carried the Nasdaq Composite to a 1.4% gain and into positive territory for the year. The Dow Jones Industrial Average rose 0.9%, and the Russell 2000 rose 1.6%.
The day started with investors receiving economic data that the market construed as relatively good: weekly initial jobless claims totaled 3.169 million (Briefing.com consensus 2.900 million), but it was encouraging that it reflected another 677,000 decline from the prior week. Likewise, China's imports fell more than expected in April, but an increase in exports was a nice surprise.
Weekly claims are a leading indicator, so the declining trend appeared to endorse the market's reopening/recovery enthusiasm, which was made apparent in the outperformance of the cyclical energy (+2.5%), financials (+2.2%), and materials (+2.1%) sectors.
The S&P 500 peaked at around the 2900 level before gradually paring gains throughout the afternoon. The defensive-oriented consumer staples (-0.4%) and health care (-0.1%) sectors closed in negative territory.
It was still a good day with many stocks receiving earnings-related boosts, including PayPal (PYPL 146.29, +17.98, +14.0%), T-Mobile US (TMUS 95.29, +8.70, +10.1%), Lyft (LYFT 31.78, +5.66, +21.7%), and Twilio (TWLO 170.89, +48.49, +39.6%). Investors were especially pleased to hear PayPal and Lyft noting improved/stabilizing conditions in April.
Moderna (MRNA 53.19, +4.24, +8.7%) was another story stock after announcing it received FDA approval to proceed to a Phase 2 trial for its COVID-19 vaccine candidate.
It wasn't a true risk-on day, though, as U.S. Treasuries padded gains throughout the session and WTI crude futures ($23.65/bbl, -0.30, -1.3%) gave up an intraday gain. The advance in Treasuries drove the 2-yr yield down six basis points to 0.11% and the 10-yr yield down eight basis points to 0.63%. The U.S. Dollar Index declined 0.2% to 99.88.
Reviewing Thursday's economic data:
Initial claims for the week ending May 2 decreased by 677,000 to 3.169 million (Briefing.com consensus 2.900 mln). Continuing claims for the week ending April 25 surged by 4,636,000 to 22.647 million, which is a record high.
The market, in its current frame of mind, is apt to see the decline in initial claims as relatively good news, yet the key takeaway from the report is that the massive influx of initial claims is just bad in an absolute sense for economic activity because those jobs won't be recovered nearly as quickly as they have been lost.
Nonfarm business sector labor productivity decreased 2.5% in the first quarter (Briefing.com consensus -6.0%) following a 1.2% increase in the fourth quarter. Unit labor costs increased 4.8% (Briefing.com consensus +2.9%) after increasing 0.9% in the fourth quarter.
The key takeaway from the report is that productivity was weak, which is a headwind to an increased standard of living. That headwind should be even stronger in the second quarter.
Consumer credit contracted by $12.1 bln in March (Briefing.com consenus $7.5 bln) after increasing a downwardly revised $20.0bln (from $22.3 bln) in February.
The key takeaway from the report is that it shows how banks and finance companies grew more restrictive in extending revolving credit to individuals in March.
Looking ahead, investors will receive the Employment Situation Report for April and Wholesale Inventories for March on Friday.
Nasdaq Composite +0.1% YTD
S&P 500 -10.8% YTD
Dow Jones Industrial Average -16.3% YTD
Russell 2000 -23.1% YTD
Market Snapshot
Dow 23875.89 +211.25 (0.89%)
Nasdaq 8979.68 +125.27 (1.41%)
SP 500 2881.19 +32.77 (1.15%)
10-yr Note +29/32 0.638
NYSE Adv 2090 Dec 767 Vol 955.3 mlnb
Nasdaq Adv 2228 Dec 964 Vol 3.7 bln
Industry Watch
Strong: Energy, Financials, Materials
Weak: Consumer Staples, Health Care
Moving the Market
-- Stocks close higher, Nasdaq turns positive for the year
-- Cyclical sectors outperform, led by financials and energy
-- Weekly jobless claims declined by 677,000 to 3.169 million (Briefing.com consensus 2.900 million)
-- Treasuries advance despite gains in stock market
WTI crude fades gains, settles lower
07-May-20 15:25 ET
Dow +216.44 at 23881.08, Nasdaq +120.54 at 8974.95, S&P +34.28 at 2882.70
[BRIEFING.COM] The S&P 500 is up 1.2%. Given the late-session fades over the past two sessions, the last 30 minutes of action will be interesting to watch.
Earlier, the Consumer Credit report for March showed consumer credit contract by $12.1 bln in March (Briefing.com consensus $7.5 bln) after increasing a downwardly revised $20.0 bln (from $22.3.0 billion) in February.
WTI crude futures settled down $0.30 (-1.3%) to $23.65/bbl.
Stocks advance on reopening hopes, but pare gains into close
05-May-20 16:20 ET
Dow +133.33 at 23883.09, Nasdaq +98.41 at 8809.14, S&P +25.70 at 2868.44
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 rallied as much as 2.0% on Tuesday, as investors continued to buy into the reopening narrative, but stocks pared gains late in the day to leave the benchmark index up 0.9% for the session. The Nasdaq Composite increased 1.1%, the Dow Jones Industrial Average increased 0.6%, and the Russell 2000 increased 0.8%.
Positive reopening news included California announcing plans to reopen parts of its economy as early as Friday, joining a growing list of U.S. states to have already opened or outlined plans. Starbucks (SBUX 72.90, +1.01, +1.4%) said it expects to have 85% of its U.S. stores open again by the end of the week, excluding dine-in service.
The market might have gotten ahead of itself, though, as the news flow didn't provide it any new revelations. Neither did a CNBC interview with Fed Chair Clarida, but the market lost steam shortly after the interview, perhaps reminded of the relatively high asset prices given the uncertainty still facing an economic recovery/reopening.
The S&P 500 financials sector (-0.1%) slipped into negative territory amid the late-session decline, while the health care sector (+2.2%) was minimally affected. The reopening enthusiasm still buoyed oil prices ($24.53/bbl, +4.16, +20.4%) by 20% amid expectations for a demand recovery.
The health care space received a sentiment boost by news that Pfizer (PFE 38.51, +0.89, +2.4%) and BioNTech SE (BNTX 50.00, +4.22, +9.2%) dosed their first U.S. patients in a clinical trial of a potential COVID-19 vaccine.
The market, conversely, continued to dismiss the dose of bad news, presumably due to a view that it's old news and more good news will follow with increased reopening efforts.
Notably, the ISM Non-Manufacturing Index for April fell into contraction territory with a 41.8% reading (Briefing.com consensus 38.5%), United Airlines (UAL 24.12, -1.14, -4.5%) warned it will likely cut 30% of its management and administrative staff in October, and Norwegian Cruise Line Holdings (NCLH 11.18, -3.26, -22.6%) expressed "substantial doubt" about its future.
U.S. Treasuries ended the session little changed. The 2-yr yield was unchanged at 0.17%, and the 10-yr yield increased two basis points to 0.66%. The U.S. Dollar Index increased 0.3% to 99.78.
Reviewing Tuesday's economic data:
The ISM Non-Manufacturing Index for April dropped to 41.8% (Briefing.com consensus 38.5%) from 52.5% in March. A number below 50.0% is indicative of contraction. The April reading was the lowest reading for the index since March 2009.
The key takeaway from the report is that, like the ISM Manufacturing Index, it was not as "good" as the headline number suggests given that there was a spike in the Supplier Deliveries Index (to all-time high 78.3% from 62.1%), which is largely indicative of supply problems due to the COVID-19 impact.
The Trade Balance report for March showed a widening in the deficit to $44.4 billion (Briefing.com consensus -$44.2 billion) from an upwardly revised $39.8 billion (from -$39.9 billion) for February. Exports were down $20.0 billion from February while imports were down $15.4 billion.
The widening in the deficit was the result of exports declining more than imports, yet the key takeaway is that the large declines in both reflect weak trade activity in the wake of COVID-19 shutdown issues that only got worse in April.
Looking ahead, investors will receive the ADP Employment Change Report for April and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite -1.8% YTD
S&P 500 -11.2% YTD
Dow Jones Industrial Average -16.3% YTD
Russell 2000 -23.7% YTD
Market Snapshot
Dow 23883.09 +133.33 (0.56%)
Nasdaq 8809.14 +98.41 (1.13%)
SP 500 2868.44 +25.70 (0.90%)
10-yr Note -24/32 0.659
NYSE Adv 1626 Dec 1274 Vol 927.1 mln
Nasdaq Adv 1736 Dec 1472 Vol 3.9 bln
Industry Watch
Strong: Energy, Health Care, Information Technology
Weak: Consumer Staples
Moving the Market
-- Stock markets trades sharply higher amid reopening momentum
-- Oil prices rise 20% amid expectations for higher demand as states continue to reopen
-- Continued dismissal of bad news
WTI crude rises 20% on reopening optimism
05-May-20 15:25 ET
Dow +294.62 at 24044.38, Nasdaq +161.67 at 8872.40, S&P +43.14 at 2885.88
[BRIEFING.COM] The S&P 500 is up 1.5%, down slightly from session highs.
One last look at the S&P 500 sectors still shows broad-based gains ranging from 0.5% (financials) and 2.6% (health care). The financials sector had been an early leader in today's session.
WTI crude settled up $4.16 (+20.4%) to $24.53/bbl, fueled by expectations that reopening the economy will help demand recover.
Stocks close lower, erase weekly gains
01-May-20 16:15 ET
Dow -622.03 at 23723.69, Nasdaq -284.60 at 8604.96, S&P -81.72 at 2830.71
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 2.8% on Friday, as investors increased profit-taking efforts after Amazon (AMZN 2286.04, -187.96, -7.6%) underwhelmed investors with its earnings report and U.S.-China tensions appeared to escalate. The Dow Jones Industrial Average lost 2.6%, the Nasdaq Composite lost 3.2%, and the Russell 2000 lost 3.8%.
Amazon warned that coronavirus-related expenses would likely wipe out its expected $4 billion operating income in Q2, providing investors a good excuse to take some profits after a 50% rally off its March low. The notion that stocks have come too far, too fast was bluntly put by Tesla (TSLA 701.32, -80.56, -10.3%) CEO Elon Musk tweeting that Tesla's stock price is too high.
As for the broader market, investors had to contend with President Trump threatening new tariffs on China for its handling of the coronavirus outbreak, as well as the ISM Manufacturing Index for April declining to its lowest level since 2009 with a 41.5% reading (Briefing.com consensus 39.0%). The latter wasn't too shocking for investors.
All 11 S&P 500 sectors opened and closed in negative territory. The energy (-6.0%) and consumer discretionary (-4.6%) sectors took the biggest hits, while the consumer staples sector (-1.2%) declined the least.
Aside from Amazon, Apple (AAPL 289.07, -4.73, -1.6%), Exxon Mobil (XOM 43.14, -33.33, -7.2%), Chevron (CVX 89.44, -2.56, -2.8%), and Visa (V 175.57, -3.15, -1.8%) also succumbed to losses after reporting earnings. Note, Apple shares still rose 2.1% this week.
Separately, the FDA approved Gilead Sciences' (GILD 79.95, -4.05, -4.8%) remdesivir for emergency use in treating COVID-19. Shares recouped some losses after the news.
U.S. Treasuries saw modest selling pressure despite the weakness in equities. The 2-yr yield and the 10-yr yield increased two basis points each to 0.20% and 0.64%, respectively. The U.S. Dollar Index finished little changed at 99.03. WTI crude increased 6.4%, or $1.19, to $19.77/bbl.
Reviewing Friday's economic data, which featured the ISM Manufacturing Index for April:
The ISM Manufacturing index for April registered a 41.5% reading (Briefing.com consensus 39.0%), marking the lowest level since April 2009. The headline number was better than expected, but when you look within the report, it was mostly bad.
The key takeaway from the report is that the better-than-expected reading was a function of a sizable uptick in the index for supplier deliveries (to 76.0% from 65.0%) that is the result of supply chain disruptions and an uptick in the index for inventories (to 49.7% from 46.9%), which is really an indication of weak demand as inventory is sitting around longer because of weak demand.
Total construction spending increased 0.9% m/m in March (Briefing.com consensus -3.5%) on the heels of a downwardly revised 2.5% decline (from -1.3%) in February. Residential spending was up 2.3% m/m while nonresidential spending declined 0.1% m/m.
The key takeaway from the report is that it is dated. It's nice to see that things held up reasonably well in March, but the enthusiasm for the increase in construction spending should be mitigated by the expectation that it is unlikely to be repeated in April.
Looking ahead, investors will receive Factory Orders for March on Monday.
Nasdaq Composite -4.1% YTD
S&P 500 -12.4% YTD
Dow Jones Industrial Average -16.9% YTD
Russell 2000 -24.5% YTD
Market Snapshot
Dow 23723.69 -622.03 (-2.55%)
Nasdaq 8604.96 -284.60 (-3.20%)
SP 500 2830.71 -81.72 (-2.81%)
10-yr Note +1/32 0.630
NYSE Adv 434 Dec 2483 Vol 923.3 mln
Nasdaq Adv 563 Dec 2670 Vol 3.7 bln
Industry Watch
Strong: Consumer Staples
Weak: Consumer Discretionary, Energy
Moving the Market
-- Stocks close lower in broad-based retreat, erase weekly gains
-- Amazon (AMZN) falls 7.6% after reporting earnings
-- President Trump threatens new tariffs on China for its handling of the coronavirus outbreak
WTI crude gains 6%
01-May-20 15:25 ET
Dow -584.61 at 23761.11, Nasdaq -272.00 at 8617.56, S&P -79.04 at 2833.39
[BRIEFING.COM] The S&P 500 is down 2.7% and is on pace to end the weekly marginally lower.
One last look at the S&P 500 sectors shows energy (-5.8^) and consumer discretionary (-4.4%) leading the retreat, while the consumer staples sector (-0.9%) remains the lone sector down less than 1.0%.
WTi crude settled up $1.19 (+6.4%) to $19.77/bbl. For the week, it was up 16.1%.
Stock rally driven by positive remdesivir update
29-Apr-20 16:20 ET
Dow +532.31 at 24633.86, Nasdaq +306.98 at 8914.72, S&P +76.12 at 2939.51
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 climbed 2.7% on Wednesday, primarily driven by positive remdesivir news and aided by better-than-feared earnings reports and a market-friendly reminder from the Fed. The Nasdaq Composite rose 3.6%, the Dow Jones Industrial Average rose 2.2%, and the Russell 2000 rose 4.8%.
The day started with Gilead Sciences (GILD 83.14, +4.47, +5.7%) affirming that remdesivir, an antiviral treatment for COVID-19, met its primary endpoint in an NIAID placebo-controlled study. The news helped the market open noticeably higher, as it fueled reopening hopes and overshadowed data depicting Q1 GDP contracting at a 4.8% annualized rate (Briefing.com consensus -4.3%).
The ensuing advance in stocks was paced by the S&P 500 energy (+7.4%), communication services (+5.1%), and information technology (+4.2%) sectors, while the defensive-oriented consumer staples (-0.4%) and utilities (-0.9%) sectors were left out of the rally.
Alphabet (GOOG 1341.48, +107.81, +8.7%), MasterCard (MA 283.69, +19.09, +7.2%), and Boeing (BA 139.00, +7.70, +5.9%) contributed to the bullish price action following their earnings reports. Energy stocks received an added boost from the 22% spike in oil prices ($15.13/bbl, +2.76, +22.3%).
Later in the day, the Fed unanimously voted to maintain the target range for the fed funds rate at 0.00-0.25%, as was expected, and said rates will remain there until the economy is on track to achieve the Fed's goals of full employment and price stability. The inference is that rates will stay there for much longer, as the record unemployment isn't expected to return to normal anytime soon.
Fed Chair Powell acknowledged that low rates alone won't revive economic activity and reiterated the Fed's commitment to using its full range of policy tools. Mr. Powell also said legislators should embrace policies that protect against avoidable insolvencies. Market reaction was relatively muted to the policy directive and the Fed Chair's comments.
While most stocks finished the day higher, notable holdouts included Starbucks (SBUX 76.86, -1.83, -2.3%), Advanced Micro Devices (AMD 53.66, -1.85, -3.3%), and General Electric (GE 6.58, -0.22, -3.2%) following their earnings reports.
Small-cap companies Hertz Global (HTZ 4.00, -1.00, -20.0%) and Chesapeake Energy (CHK 26.85, -2.33, -8.0%) sold off on news of potential bankruptcy filings.
U.S. Treasuries were relatively unchanged throughout the session, as bond investors were unfazed by the equity rally given the weak GDP data and precarious economic environment. The 2-yr yield declined one basis point to 0.19%, while the 10-yr yield increased two basis points to 0.63%. The U.S. Dollar Index declined 0.3% to 99.53.
Reviewing Wednesday's economic data:
First quarter GDP declined at an annualized rate of 4.8% (Briefing.com consensus -4.3%) while the GDP Price Deflator was 1.3% (Briefing.com consensus 1.1%). This was the largest decline in GDP since the fourth quarter of 2008.
The key takeaway from the report is that it hints at how ugly the Advance Q2 GDP report will be given that shutdown measures in the U.S. didn't start to gain steam until the latter half of March.
Pending Home Sales dropped 20.8% in March after increasing a revised 2.3% in February (from +2.4%).
The weekly Mortgage Applications Index declined 3.3% following a 0.3% decline in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report, Personal Income and Spending for March, the Q1 Employment Cost Index and the Chicago PMI for April on Thursday.
Nasdaq Composite -0.7% YTD
S&P 500 -9.0% YTD
Dow Jones Industrial Average -13.7% YTD
Russell 2000 -18.4% YTD
Market Snapshot
Dow 24633.86 +532.31 (2.21%)
Nasdaq 8914.72 +306.98 (3.57%)
SP 500 2939.51 +76.12 (2.66%)
10-yr Note -1/32 0.622
NYSE Adv 2562 Dec 350 Vol 1.2 bln
Nasdaq Adv 2644 Dec 596 Vol 4.3 bln
Industry Watch
Strong: Communication Services, Information Technology, Energy
Weak: Consumer Staples, Utilities
Moving the Market
-- Stock market rallies, closes at highest level since early March
-- Gilead Sciences' (GILD) remdesivir drug meets primary endpoint in NIAID study
-- Alphabet (GOOG) shares climb on better-than-feared quarterly results
-- Fed keeps rates unchanged, commits to market-friendly policy
-- WTI crude futures rises 22%
WTI crude gains 22%
29-Apr-20 15:25 ET
Dow +626.52 at 24728.07, Nasdaq +337.29 at 8945.03, S&P +89.10 at 2952.49
[BRIEFING.COM] The S&P 500 is up 3.1%, and the Russell 2000 is up 5.6%.
One last look at the S&P 500 sectors shows energy (+6.9%), communication services (+5.8%), and information technology (+4.4%) firmly in the lead, while the utilities (+0.1%) and consumer staples (+0.2%) sectors cling onto small gains.
WTI crude futures settled higher by $2.76 (+22.3%) to $15.13/bbl.