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Stock market falls 4% and enters correction territory on coronavirus anxiety
27-Feb-20 16:25 ET
Dow -1190.90 at 25766.61, Nasdaq -414.29 at 8566.52, S&P -137.63 at 2978.76
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market extended its recent sell-off by more than 4% on Thursday in a volatile session, as the widening spread of the coronavirus heightened pessimism among investors. The S&P 500 dropped as much as 3.5% shortly after the open, then cut its losses to 0.6% by midday, but ultimately closed at session lows with a 4.4% decline.
The Dow Jones Industrial Average (-4.4%), Nasdaq Composite (-4.6%), and Russell 2000 (-3.5%) experienced similar price action. Each of the major indices fell into correction territory, which is often defined as a decline of at least 10% from a recent high, and today's drop sent the S&P 500 well below its 200-day moving average (3046.58) amid heavy selling into the close.
From a sector perspective, all 11 S&P 500 sectors fell between 3.3% (health care) and 5.6% (real estate). Other notable moves included WTI crude falling 3.0% to $47.24/bbl to extend its weekly decline to 12.1% and the CBOE Volatility Index surging 42.1% to 39.16 in a protection trade against further equity weakness.
Regarding COVID-19, the CDC acknowledged the first coronavirus case of "unknown origin" in the U.S., which raised concerns about a community spread of the virus. California's governor fueled concerns by saying 28 people have tested positive and another 8,400 people are being monitored because of their travel.
The impact to global supply chains or consumer spending remains uncertain, but Goldman Sachs warned there could be no U.S. earnings growth in 2020 if the virus becomes widespread. Microsoft (MSFT 158.18, -11.99, -7.1%), meanwhile, was the latest high-profile company to issue a quarterly revenue warning, specifically for its More Personal Computing segment.
Current, and past, Fed officials offered their views on the matter. In an opinion piece for The Wall Street Journal, former Fed Governor Kevin Warsh argued that the Fed and other central banks should cut rates due to the coronavirus, while Chicago Fed President Evans reiterated the Fed's stance that it's still premature to provide guidance without more data.
Besides the coronavirus news, equity investors appeared to be taking cues from the Treasury market. For instance, the S&P 500's early morning low coincided with the high in the Treasury market. At session's end, the 2-yr yield declined five basis points to 1.10%, and the 10-yr yield declined one basis point to 1.30%. The U.S. Dollar Index fell 0.5% to 98.48.
Not all stocks closed lower, though. 3M (MMM 150.16, +1.20, +0.8%) and Clorox (CLX 168.70, +0.67, +0.4%) managed to eke out small gains amid speculation that demand for some of their products will increase due to the coronavirus.
Reviewing Thursday's batch of economic data, which barely drew attention during this volatile day of trading:
January durable goods orders declined 0.2% (Briefing.com consensus -1.6%). Excluding transportation, durable goods orders were up 0.9% (Briefing.com consensus +0.2%).
The key takeaway from the report is that it showed a nice pickup in business spending in January, evidenced by the 1.1% increase in nondefense capital goods orders excluding aircraft. Still, concerns about a slowdown in spending will persist since the spread of the coronavirus, and responses to control its spread, has intensified in February.
Initial claims for the week ending February 22 increased by 8,000 to 219,000 (Briefing.com consensus 212,000). Continuing claims for the week ending February 15 decreased by 9,000 to 1.724 million.
The key takeaway from the report is that the four-week moving average of 209,750 for initial claims remains at an encouragingly low level in terms of the labor market outlook.
The second estimate for Q4 GDP was unchanged at 2.1% (Briefing.com consensus 2.2%) while the GDP Price Deflator (Briefing.com consensus 1.4%) was revised down to 1.3% from 1.4%.
The key takeaway from the report is that it is backward-looking and can be easily dismissed in light of the more current growth problems related to the coronavirus.
Pending Home Sales rose 5.2% in January (Briefing.com consensus +2.0%). Today's reading follows a revised 4.3 decline in December (from -4.9%).
Looking ahead, investors will receive the following data on Friday: Personal Income and Spending reports for January, PCE Prices for January, the revised University of Michigan Index of Consumer Sentiment for February, and the Advance reports for International Trade in Goods, Retail Inventories, and Wholesale Inventories.
Nasdaq Composite -4.5% YTD
S&P 500 -7.8% YTD
Dow Jones Industrial Average -9.7% YTD
Russell 2000 -10.2% YTD
Market Snapshot
Dow 25766.61 -1190.90 (-4.42%)
Nasdaq 8566.52 -414.29 (-4.61%)
SP 500 2978.76 -137.63 (-4.42%)
10-yr Note +28/32 1.273
NYSE Adv 308 Dec 2472 Vol 1.8 bln
Nasdaq Adv 490 Dec 2743 Vol 4.5 bln
Industry Watch
Strong: Health Care
Weak: Real Estate, Energy, Utilities, Materials
Moving the Market
-- Stock market sells off 4% in volatile session on coronavirus anxiety
-- Broad-based selling, S&P 500 closes below 200-day moving average (3046.58), CBOE Volatility Index surges 40%
-- Treasury market maintained strong disposition
WTI crude drops another 3%, extends weekly decline to 12%
27-Feb-20 15:25 ET
Dow -775.01 at 26182.50, Nasdaq -272.20 at 8708.61, S&P -86.73 at 3029.66
[BRIEFING.COM] The S&P 500 is currently down 2.8% and back below its 200-day moving average (3046.88).
One last look at the S&P 500 sectors shows all 11 sectors trading lower between 1.9% (health care) and 4.0% (energy). The health care sector briefly traded in positive territory in midday action.
WTI crude settled lower by $1.46 (-3.0%) to $47.24/bbl. For the week, crude is now down 12.1%.
S&P 500 closes slightly lower after failed rebound effort
26-Feb-20 16:15 ET
Dow -123.77 at 26957.51, Nasdaq +15.16 at 8980.81, S&P -11.82 at 3116.39
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 advanced as much as 1.7% on Wednesday, as investors tried to buy an oversold market, but pestering worries about the coronavirus left the benchmark index down 0.4% for the session. The Nasdaq Composite (+0.2%) eked out a slim gain, while the Dow Jones Industrial Average (-0.5%) and Russell 2000 (-1.2%) joined the S&P 500 in negative territory.
Early on, it looked like sellers were taking an off-day after the S&P 500 dropped 7.6% over the prior four sessions, but the market continued to be inundated with negative updates on the coronavirus. For instance, Germany's health minister said Germany is at the beginning of an epidemic, and it was reported that 83 people in New York were being monitored for exposure to the virus.
All 11 S&P 500 sectors had traded in the green, but only the information technology sector (+0.4%) was able to finish in positive territory thanks to strength in Apple (AAPL 292.65, +4.57, +1.6%) and Microsoft (MSFT 170.17, +2.10, +1.3%). The energy sector dropped 3.0% amid continued weakness in oil prices ($48.70, -1.19, -2.4%).
Fortunately, losses didn't accelerate, and the broader market drifted slightly lower throughout the afternoon. A wait-and-see mindset may have taken fold ahead of President Trump's coronavirus news conference at 6:30 p.m. ET.
Walt Disney (DIS 123.40, -4.79, -3.7%), Toll Brothers (TOL 37.82, -6.47, -14.6%), and Lowe's (LOW 113.32, -5.20, -4.4%) were among today's notable laggards. Disney announced Bob Iger stepped down as CEO, Toll Brothers missed earnings expectations, and Lowe's issued downside FY21 guidance.
Although not market-moving, economic data showed new home sales for January climb to their highest level since July 2007. In addition, TJX Companies (TJX 63.99, +4.27, +7.2%) reported solid quarterly results.
U.S. Treasuries were less in focus today, but the continued gains in the bond market weren't conducive for risk sentiment. The 2-yr yield declined five basis points to 1.15%, and the 10-yr yield declined two basis points to 1.31%. The U.S. Dollar Index increased 0.2% to 99.13.
Reviewing Wednesday's economic data, which featured New Home Sales for January:
New home sales increased 7.9% m/m in January to a seasonally adjusted annual rate of 764,000 units (Briefing.com consensus 720,000) from an upwardly revised 708,000 (from 694,000) in December.
The key takeaway from the report is that new home sales were also strong on a year-over-year basis (+18.6%), benefiting from the drop in mortgage rates and the extremely tight supply of existing homes for sale.
The weekly MBA Mortgage Applications Index increased 1.5% following a 6.4% decline in the prior week.
Looking ahead, investors will receive Durable Goods Orders for January, the second estimate for Q4 GDP, Pending Home Sales for January, and the weekly Initial and Continuing Claims report on Thursday.
Nasdaq Composite +0.1% YTD
S&P 500 -3.5% YTD
Dow Jones Industrial Average -5.5% YTD
Russell 2000 -6.9% YTD
Market Snapshot
Dow 26957.51 -123.77 (-0.46%)
Nasdaq 8980.81 +15.16 (0.17%)
SP 500 3116.39 -11.82 (-0.38%)
10-yr Note +1/32 1.340
NYSE Adv 940 Dec 1861 Vol 1.3 bln
Nasdaq Adv 1174 Dec 2010 Vol 3.5 bln
Industry Watch
Strong: Information Technology
Weak: Energy
Moving the Market
-- S&P 500 closes lower as rebound effort fails
-- Relative strength in the information technology sector
-- Treasury yields continued to decline
-- New home sales for January rose to highest level since July 2007
WTI crude drops another 2%
26-Feb-20 15:25 ET
Dow -73.08 at 27008.20, Nasdaq +39.04 at 9004.69, S&P -2.42 at 3125.79
[BRIEFING.COM] The S&P 500 is trading at its flat line. It was up 1.7% at its high and down 0.6% at its low.
One last look at the S&P 500 sectors shows information technology (+0.7%), communication services (+0.2%), and health care (+0.1%) trading in positive territory, while the energy sector (-2.6%) is the only sector down more than 1%.
WTI crude settled lower by $1.19 (-2.4%) to $48.70/bbl, as expectations for oil demand remained weakened by the coronavirus.
Stock market drops another 3% in orderly retreat
25-Feb-20 16:20 ET
Dow -879.44 at 27081.28, Nasdaq -255.67 at 8965.65, S&P -97.68 at 3128.21
https://www.briefing.com/stock-market-update
[BRIEFING.COM] U.S. stocks sold off again on Tuesday, as the global spread of the coronavirus continued to undermine growth expectations and exacerbate the flight for safety in Treasuries. The Nasdaq Composite (-2.8%) turned negative for the year while the S&P 500 (-3.0%), Dow Jones Industrial Average (-3.2%), and Russell 2000 (-3.5%) dropped at least 3.0%.
The day started in positive territory amid a half-hearted effort to buy yesterday's drop, even though the coronavirus continued to afflict countries outside China and spread to new parts within Europe. The subsequent, orderly retreat in equities, however, suggested that the market started to get worried about the outbreak escalating in the U.S.
All 11 S&P 500 sectors finished with steep losses ranging from 1.8% (consumer staples) to 4.3% (energy). Investors decided to sell first and ask questions later as they listened to updates from several organizations and companies.
CDC officials warned that the spread of the coronavirus in the U.S. appears inevitable, but the HHS said the immediate risk is low. NEC Director Kudlow tried to ease nerves by telling CNBC that the U.S. has contained the virus "pretty close to air-tight," but the market didn't care much for optimistic views today.
Fed Vice Chair Clarida provided a pragmatic view, reiterating that it's still too early to assess the growth impact from the coronavirus, or whether it will lead to a material change in its outlook, but the market didn't care for pragmatism, either. Companies, after all, continued to provide warnings due to the virus, leading investors to believe the impact could be worse than expected.
MasterCard (MA 302.89, -21.78, -6.7%), United Airlines (UAL 70.57, -4.90, -6.5%), and Macy's (M 14.60, -0.85, -5.5%) joined the growing list of U.S. companies to do so. Home Depot (HD 237.38, -2.32, -1.0%) beat earnings estimates, but shares barely stood a chance given today's market conditions.
Elsewhere, the rally in U.S. Treasuries persisted amid the underlying growth concerns. The 2-yr yield fell six basis points to 1.20%, and the 10-yr yield fell five basis points 1.33% after setting a record low at 1.31%. The U.S. Dollar Index fell 0.4% to 98.96. WTI crude fell back below $50 per barrel, closing the session down 2.7%, or $1.36, at $49.89/bbl.
Reviewing Tuesday's economic data, which included reports on the housing sector and the U.S. consumer:
The Conference Board's Consumer Confidence Index increased to 130.7 in February (Briefing.com consensus 132.0) from a revised 130.4 (from 131.6) in January.
The key takeaway from the report is that it did not show a significant change in sentiment when factoring in the revision to the January reading.
The S&P Case-Shiller Home Price Index increased 2.9% in December (Briefing.com consensus 3.2%).
The FHFA Housing Price Index increased 0.6% in December.
Looking ahead, investors will receive New Home Sales for January and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite -0.1% YTD
S&P 500 -3.2% YTD
Dow Jones Industrial Average -5.1% YTD
Russell 2000 -5.8% YTD
Market Snapshot
Dow 27081.28 -879.44 (-3.15%)
Nasdaq 8965.65 -255.67 (-2.77%)
SP 500 3128.21 -97.68 (-3.03%)
10-yr Note +3/32 1.345
NYSE Adv 278 Dec 2538 Vol 1.4 bln
Nasdaq Adv 476 Dec 2749 Vol 3.5 bln
Industry Watch
Strong: Consumer Staples
Weak: Energy, Materials, Industrials
Moving the Market
-- Stock market drops another 3% on coronavirus fears
-- Rally in Treasury market strengthened, driving 10-yr yield to all-time low
-- Coronavirus cases continued to spread outside China, adding to angst that outbreak will escalate in the U.S.
WTI crude falls back below $50 per barrel
25-Feb-20 15:25 ET
Dow -858.51 at 27102.21, Nasdaq -243.25 at 8978.07, S&P -95.44 at 3130.45
[BRIEFING.COM] The S&P 500 has descended back to session lows with a 2.9% decline.
One last look at the S&P 500 sectors shows energy (-4.5%) and materials (-4.1%) leading the sell-off, and today's "best" performer, consumer staples (-1.1%), is down more than 1%.
WTI crude fell back below $50 per barrel, settling lower by $1.36 (-2.7%) to $49.89/bbl.
Stock market sells off more than 3% on widening spread of coronavirus
24-Feb-20 16:20 ET
Dow -1031.60 at 27960.72, Nasdaq -355.31 at 9221.32, S&P -111.86 at 3225.89
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market sold off more than 3% on Monday following a surge in coronavirus cases outside China, including South Korea, Italy, and Iran. The Dow Jones Industrial Average (-3.6%), S&P 500 (-3.4%), and Russell 2000 (-3.0%) each turned negative for the year, while the Nasdaq Composite (-3.7%) gave up most of its monthly gains.
Governments took swift action to help contain the outbreak, such as closing public spaces, but weakness in foreign equity markets reflected concerns about the possibility of a global pandemic. South Korea's Kospi fell 3.9%, and Italy's MIB fell 5.4%. China's Shanghai Composite declined just 0.3% amid reports that the rate of new coronavirus cases may have peaked in the region.
The World Health Organization (WHO) said that the drop in infections in China is "real" due to Beijing's aggressive approach. It remained unclear, however, if the virus would continue to worsen in a way that further impedes economic activity that consequently hurts earnings prospects.
In turn, de-risking efforts were widespread with all 11 S&P 500 sectors finishing in negative territory, including seven that dropped at least 3.0%. The energy (-4.7%), information technology (-4.2%), and consumer discretionary (-3.5%) sectors led the retreat, while the utilities sector (-1.2%) declined the least.
Technology and travel stocks, such as Advanced Micro Devices (AMD 49.12, -4.16, -7.8%) and American Airlines (AAL 25.45, -2.37, -8.5%), sold off on concerns that their businesses would be hurt by the coronavirus. Many health care names like UnitedHealth (UNH 277.79, -23.64, -7.8%) were additionally pressured by Senator Bernie Sanders (I-VT) decisively winning the Nevada caucuses.
Away from equities, investors continued to seek safety in gold ($1676.70/ozt, +27.80, +1.7%) and U.S. Treasuries given the growth concerns and weakness in stocks. Hedging interest against further downside was also on full display by the 46.6% surge in the CBOE Volatility Index (25.03, +7.95).
The 2-yr yield and the 10-yr yield fell nine basis points each to 1.26% and 1.38%, respectively. The U.S. Dollar Index finished flat at 99.30. WTI crude dropped 3.9%, or $2.09, to $51.25/bbl.
Separately, Newmont Goldcorp (NEM 50.26, +0.82, +1.7%) and Gilead Sciences (GILD 72.90, +3.20, +4.6%) exhibited relative strength throughout the day. Newmont set a 52-week high amid the continued strength in gold prices, while Gilead benefited from an acknowledgement from WHO that its Remdesivir drug is the only drug that appears to be effective in treating the coronavirus.
Investors did not receive any economic data on Monday. Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for February, the FHFA Housing Price Index for February, and the S&P Case-Shiller Home Price Index for December on Tuesday.
Nasdaq Composite +2.8% YTD
S&P 500 -0.2% YTD
Dow Jones Industrial Average -2.0% YTD
Russell 2000 -2.4% YTD
Market Snapshot
Dow 27960.72 -1031.60 (-3.56%)
Nasdaq 9221.32 -355.31 (-3.71%)
SP 500 3225.89 -111.86 (-3.35%)
10-yr Note +32/32 1.367
NYSE Adv 290 Dec 2607 Vol 1.2 bln
Nasdaq Adv 459 Dec 2781 Vol 3.1 bln
Industry Watch
Strong: Utilities
Weak: Energy, Information Technology, Consumer Discretionary
Moving the Market
-- Stock market drops more than 3% as coronavirus cases surge outside China, including South Korea, Italy, and Iran
-- Weakness in technology and travel stocks
-- Treasuries and gold rally in flight to safety; 10-yr yield nears all-time low from 2016
WTI crude erases monthly gain
24-Feb-20 15:25 ET
Dow -823.75 at 28168.57, Nasdaq -291.06 at 9285.57, S&P -90.11 at 3247.64
[BRIEFING.COM] The S&P 500 is currently down 2.8%, reducing its yearly gain to 0.5%.
One last look at the S&P 500 sectors shows all 11 groups trading with losses. The energy sector (-4.0%) continues to lead the retreat with a huge loss, while the utilities sector (-0.6%) is down modestly given its defensive-oriented, and rate-sensitive, bias.
WTI crude fell 3.9% (-$2.09) to $51.25/bbl to give up its monthly gain.
Stocks sell off to end week, while gold and bonds gain
21-Feb-20 16:15 ET
Dow -227.57 at 28992.32, Nasdaq -174.37 at 9576.63, S&P -35.48 at 3337.75
https://www.briefing.com/stock-market-update
[BRIEFING.COM] U.S. stocks sold off to end the week, while investors continued to buy less risky assets, amid pestering concerns about the coronavirus and valuation. The Nasdaq Composite led the retreat with a 1.8% decline, followed by the S&P 500 (-1.1%), Russell 2000 (-1.0%), and Dow Jones Industrial Average (-0.8%).
Reported cases of the coronavirus continued to climb in China, but that wasn't new information for the market -- or investors who were buying yesterday's dip. Arguably, the bigger story was the continued flight-to-safety in gold ($1648.90/ozt, +28.90, +1.8%) and U.S. Treasuries (30-yr yield set a new all-time low at 1.89%).
The defensive positioning was attributed not only to the coronavirus fostering growth concerns, but also to the record run in U.S. stocks despite the coronavirus. The latter bolstered calls that the market had gotten overextended and was due for a pullback. The Markit flash services PMI for February, which fell into contraction territory, didn't help sentiment, either.
The top-weighted S&P 500 information technology sector (-2.3%) was today's outright laggard amid broad-based selling. The gains in the real estate (+0.4%) and consumer staples (+0.3%) sectors reflected the market's defensive posture and helped limit the broader decline.
Apple (AAPL 313.05, -7.25, -2.3%), Amazon (AMZN 2095.97, -57.13, -2.7%), Alphabet (GOOG 1485.11, -33.04, -2.2%), and Microsoft (MSFT 178.59, -5.83, -3.2%) -- four widely-held, and crowded, stocks largely responsible for the market's record run -- dropped more than 2% on Friday.
Deere (DE 177.43, +11.60, +7.0%) was among the few bright spots in the market after the company reported solid quarterly results.
U.S. Treasuries, as previously stated, continued to post gains. The 2-yr yield declined four basis points to 1.35%, and the 10-yr yield declined five basis points to 1.47%. The U.S. Dollar Index fell 0.5% to 99.32. WTI crude declined 0.7%, or $0.40, to $53.34/bbl.
Reviewing Friday's economic data, which featured the Existing Home Sales report for January:
Existing home sales decreased 1.3% m/m in January to a seasonally adjusted annual rate of 5.46 million units (Briefing.com consensus 5.42 million) from a downwardly revised 5.53 million (from 5.54 million) in December. Total sales were up 9.6% year-over-year.
The key takeaway from the report is that the housing inventory for January was at its lowest level since 1999, demonstrating that there are serious inventory constraints in the existing home sales market, which is driving up prices and underscoring the importance of mortgage rates staying low for affordability purposes.
Investors will not receive any notable economic data on Monday.
Nasdaq Composite +6.7% YTD
S&P 500 +3.3% YTD
Dow Jones Industrial Average +1.6% YTD
Russell 2000 +0.6% YTD
Market Snapshot
Dow 28992.32 -227.57 (-0.78%)
Nasdaq 9576.63 -174.37 (-1.79%)
SP 500 3337.75 -35.48 (-1.05%)
10-yr Note +27/32 1.469
NYSE Adv 852 Dec 1999 Vol 1.1 bln
Nasdaq Adv 985 Dec 2161 Vol 2.7 bln
Industry Watch
Strong: Information Technology, Consumer Discretionary, Communication Services
Weak: Consumer Staples, Real Estate, Health Care
Moving the Market
-- Stocks sell off amid coronavirus and valuation concerns
-- Weakness in the cyclical sectors, especially information technology; relative strength in bond proxies
-- U.S. Treasuries and gold post decent gains; 30-yr yield sets new all-time low (1.89%)
WTI crude closes lower but still ends week noticeably higher
21-Feb-20 15:25 ET
Dow -268.91 at 28950.98, Nasdaq -195.71 at 9555.29, S&P -39.92 at 3333.31
[BRIEFING.COM] The S&P 500 is down 1.2% and is on pace to end the week with a loss greater than 1.4%.
One last look inside the benchmark index shows eight of the 11 sectors trading in the red. The top-weighted information technology sector (-2.6%) is today's outright laggard amid broad-based selling, while the consumer staples (+0.3%), real estate (+0.3%), and utilities (+0.2%) sectors trade higher.
WTI crude declined 0.7%, or $0.40, to $53.34/bbl but still finished the week up 2.8%.
Stocks take sharp drop but close well off lows
20-Feb-20 16:10 ET
Dow -128.05 at 29219.89, Nasdaq -66.21 at 9751.00, S&P -12.92 at 3373.23
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 took a precipitous 1.3% decline during Thursday's session as stocks pulled back from record highs, but opportunistic investors stepped in to buy the intraday dip. The benchmark index closed lower by just 0.4%, while the Russell 2000 gained 0.2%. The Dow Jones Industrial Average (-0.5%) and Nasdaq Composite (-0.7%) also closed off lows.
Losses were made most prevalent in the heavily-weighted S&P 500 information technology sector (-1.0%). The defensive-oriented, and rate-sensitive, real estate (+1.2%) and utilities (+0.3%) sectors outperformed amid lower Treasury yields.
The 2-yr yield declined three basis points to 1.39%, and the 10-yr yield declined five basis points to 1.53%. The U.S. Dollar Index increased 0.2% to 99.87. WTI crude rose 0.8%, or $0.45, to $53.77/bbl.
Interestingly, U.S. Treasuries had already been on the advance well before losses in the stock market started to accelerate around 11:00 a.m. ET. The defensive positioning came despite weekly jobless claims remaining at low levels and the Philadelphia Fed Index surging to 36.7 in February (Briefing.com consensus 10.7) from 17.0 in January.
One could point to the growing number of coronavirus cases in China for the skittishness, but it seems more reasonable to draw attention to the stock market's overextended posture. Indiscriminate selling in shares of mega-cap technology companies reflected some unwinding of crowded positions.
Unsurprisingly, though, investors' willingness to buy any weakness in the market prevailed. Probable reasons included low interest rates, decent economic data, and accommodative monetary policy (China cut its one-year loan prime rate to 4.05% from 4.15% on Thursday). Fed Vice Chair Clarida, however, said he doesn't think most market participants expect a rate cut.
In corporate news, E*Trade (ETFC 54.73, +9.80, +21.8%) agreed to be acquired by Morgan Stanley (MS 43.75, -2.56, -4.6%) for $13 billion in stock. ViacomCBS (VIAC 29.29, -6.38, -17.9%) was the biggest laggard in the S&P 500 after issuing disappointing earnings results and guidance.
Reviewing Thursday's economic data:
Initial claims for the week ending February 15 increased by 4,000 to a still-low 210,000 (Briefing.com consensus 211,000). Continuing claims for the week ending February 8 increased by 25,000 to 1.726 million.
The key takeaway from the report is that it covers the week in which the survey is taken for the February employment report, and with initial claims still at low levels, this data point will reinforce expectations for another solid increase in nonfarm payrolls.
The Conference Board's Leading Economic Index (LEI) increased 0.8% in January (Briefing.com consensus 0.4%) after decreasing 0.3% in December.
The key takeaway from the report is that it showed positive contributions from almost all components after the headline reading decreased in four out of the last five months.
The Philadelphia Fed Index for February catapulted to 36.7 (Briefing.com consensus 10.7) from 17.0 in January.
Looking ahead, investors will receive Existing Home Sales for January on Friday.
Nasdaq Composite +8.7% YTD
S&P 500 +4.4% YTD
Dow Jones Industrial Average +2.4% YTD
Russell 2000 +1.7% YTD
Market Snapshot
Dow 29219.89 -128.05 (-0.44%)
Nasdaq 9751.00 -66.21 (-0.67%)
SP 500 3373.23 -12.92 (-0.38%)
10-yr Note +5/32 1.518
NYSE Adv 1774 Dec 1098 Vol 926.3 mln
Nasdaq Adv 1733 Dec 1431 Vol 2.7 bln
Industry Watch
Strong: Real Estate, Utilities
Weak: Information Technology, Health Care, Communication Services
Moving the Market
-- Stocks take sharp drop but close well off session lows
-- U.S. Treasuries continued to gain despite better-than-expected economic data
-- Relative strength in bond proxies amid the lower yields
WTI crude extends gains
20-Feb-20 15:25 ET
Dow -151.09 at 29196.85, Nasdaq -77.54 at 9739.67, S&P -15.87 at 3370.28
[BRIEFING.COM] The S&P 500 currently trades lower by 0.5%, while the Russell 2000 trades higher by 0.1%.
Looking at the S&P 500 sectors shows the information technology (-1.0%) and communication services (-0.6%) sectors underperforming the market, while the utilities (+0.6%) and utilities (+0.1%) sectors hold modest gains amid the decline in Treasury yields.
WTI crude settled up $0.45 (+0.8%) to $53.77/bbl. On a related note, weekly crude inventories increased much less than expected, according to data released by the EIA.
S&P 500 and Nasdaq close in record territory
19-Feb-20 16:15 ET
Dow +115.84 at 29347.94, Nasdaq +84.44 at 9817.21, S&P +15.86 at 3386.15
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.5%) and Nasdaq Composite (+0.9%) closed at fresh record highs on Wednesday, as investors remained optimistic about the global economic outlook despite the coronavirus. The Dow Jones Industrial Average increased 0.4%, and the Russell 2000 increased 0.5%.
In the U.S., building permits climbed to a near 13-year high in January, while China signaled further support for businesses affected by the coronavirus. In addition, the FOMC minutes from the January meeting didn't alter the market's favorable outlook for monetary policy, which is to say that policy could be adjusted if the coronavirus situation doesn't improve.
Although the stock market did lose some steam into the close, the S&P 500 energy (+1.3%) and information technology (+1.1%) sectors still rose more than 1.0%. Energy stocks benefited from a sharp increase in oil prices ($53.32/bbl, +1.22, +2.3%). The defensive-oriented real estate (-1.4%) and utilities (-1.1%) sectors closed noticeably lower.
Apple (AAPL 323.62, +4.62, +1.5%) provided influential leadership for the market while momentum stock like Tesla (TSLA 917.42, +59.02, +6.9%) and Virgin Galactic (SPCE 37.35, +7.05, +23.3%) stayed hot.
Apple's advance today was a testament to the market's view that the coronavirus is a transitory event. Shares recouped most of yesterday's losses following the company's quarterly revenue warning due to the virus. Regarding Tesla, its price target was raised to $928 from $729 at Piper Sandler.
The Philadelphia Semiconductor Index rose 2.6%, thanks to strength in NVIDIA (NVDA 314.70, +18.13, +6.1%), which was upgraded to Outperform from Mkt Perform at Bernstein, and Analog Devices (ADI 123.89, +5.32, +4.5%), which beat earnings estimates.
U.S. Treasuries traded within a narrow range and closed slightly lower. The 2-yr yield increased two basis points to 1.42%, and the 10-yr yield increased one basis point to 1.57%. The U.S. Dollar Index advanced 0.2% to 99.59.
Reviewing Wednesday's economic data:
The Producer Price Index for January was up 0.5% m/m (Briefing.com consensus +0.1%) and core PPI, which excludes food and energy, was also up 0.5% (Briefing.com consensus +0.1%).
Notwithstanding the large m/m increases, the key takeaway from the report is that producer prices remain relatively tame on a yr/yr basis, up 2.1% for total PPI and up 1.7% for core PPI. Also, with the Consumer Price Index released last week, it is clear today that there wasn't much bleed-through in January to the consumer side of things from the uptick in producer prices.
Granted total housing starts declined 3.6% m/m in January to a seasonally adjusted annual rate of 1.567 million (Briefing.com consensus 1.390 million), but that was well above expectations and marked a 21.4% yr/yr increase. Building permits -- a leading indicator -- increased 9.2% m/m to 1.551 million (Briefing.com consensus 1.460 million) and were up 17.9% yr/yr.
The key takeaway from the report is the recognition that the three-month moving average for starts (1.525 mln) is the highest since January 2007.
The weekly MBA Mortgage Applications Index fell 6.4% following a 1.1% increase in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Philadelphia Fed Index for February, and the Conference Board's Leading Economic Index for January on Thursday.
Nasdaq Composite +9.4% YTD
S&P 500 +4.8% YTD
Dow Jones Industrial Average +2.8% YTD
Russell 2000 +1.4% YTD
Market Snapshot
Dow 29347.94 +115.84 (0.40%)
Nasdaq 9817.21 +84.44 (0.87%)
SP 500 3386.15 +15.86 (0.47%)
10-yr Note 0/32 1.569
NYSE Adv 1540 Dec 1334 Vol 828.7 mln
Nasdaq Adv 1913 Dec 1260 Vol 2.4 bln
Industry Watch
Strong: Energy, Information Technology
Weak: Utilities, Real Estate
Moving the Market
-- S&P 500 and Nasdaq close at new highs
-- Strength in the semiconductor and energy spaces
-- Building permits rise more than expected, climb to near 13-year high in January
WTI crude gains more than 2%
19-Feb-20 15:25 ET
Dow +140.03 at 29372.13, Nasdaq +92.98 at 9825.75, S&P +18.88 at 3389.17
[BRIEFING.COM] The S&P 500 continues to trade higher by 0.6% and is on pace to close in record territory.
One last look at the S&P 500 sectors shows energy (+1.5%) and information technology (+1.1%) up more than 1%, while utilities (-0.9%) and real estate (-1.0%) are down about 1%. No other sector is trading lower today.
WTI crude rose $1.22 (+2.3%) to $53.32/bbl.
S&P 500 closes lower after Apple issues revenue warning
18-Feb-20 16:15 ET
Dow -165.89 at 29232.10, Nasdaq +1.57 at 9732.77, S&P -9.87 at 3370.29
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined as much as 0.7% on Tuesday after Apple (AAPL 319.00, -5.95, -1.8%) provided a revenue warning due to the coronavirus. The market resiliently cut its losses during the afternoon, though, leaving the S&P 500 down 0.3% for the session.
The Nasdaq Composite (+0.02%) eked out a closing record, while the Dow Jones Industrial Average (-0.6%) and Russell 2000 (-0.2%) still finished lower.
Apple specifically said it doesn't expect to meet its revenue guidance for the March quarter due to the coronavirus restraining its supply chain and impacting consumer demand in China. The news didn't come as a surprise given similar warnings previously issued by companies, and investors presumably viewed the situation as temporary and China-specific.
Investors, however, did assume some defensive positioning, evident by the gains in bonds, gold futures ($1590.00, +$19.00, +1.2%), and the CBOE Volatility Index (14.83, +1.15, +8.4%). The resulting decline in Treasury yields undercut the financials sector (-0.9%), while it benefited the utilities sector (+0.8%).
The 2-yr yield declined two basis points to 1.40%, and the 10-yr yield declined three basis points to 1.56%. The U.S. Dollar Index rose 0.4% to 99.43. WTI crude inched up 0.1% (+$0.05) to $52.10/bbl, recouping its intraday losses.
Microsoft (MSFT 187.23, +1.88, +1.0%) and Amazon (AMZN 2155.67, +20.80, +1.0%), which have a combined market cap of nearly $2.5 trillion, helped offset the weakness in Apple with 1% gains of their own. Both stocks extended their yearly gains to 18.7% and 16.6%, respectively, while Apple trimmed its yearly gain to 8.6%.
Walmart (WMT 119.63, +1.74, +1.5%) also outperformed despite missing profit estimates. Tesla (TSLA 858.40, +58.37, +7.3%) resumed its parabolic advance after its price target was raised at Bernstein and Morgan Stanley, although both targets were well below TSLA's closing price.
Reviewing Tuesday's economic data, which included the Empire State Manufacturing Survey and NAHB Housing Market Index:
The Empire State Manufacturing Survey for February increased to 12.9 (Briefing.com consensus 6.3) from the prior month's reading of 4.8.
The NAHB Housing Market Index for February declined to 74 (Briefing.com consensus 75) from 75 in January.
Looking ahead, investors will receive the Producer Price Index for January, Housing Starts and Building Permits for January and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +8.5% YTD
S&P 500 +4.3% YTD
Dow Jones Industrial Average +2.4% YTD
Russell 2000 +0.9% YTD
Market Snapshot
Dow 29232.10 -165.89 (-0.56%)
Nasdaq 9732.77 +1.57 (0.02%)
SP 500 3370.29 -9.87 (-0.29%)
10-yr Note +3/32 1.561
NYSE Adv 1190 Dec 1685 Vol 916.4 mln
Nasdaq Adv 1455 Dec 1758 Vol 2.2 bln
Industry Watch
Strong: Utilities, Communication Services, Consumer Discretionary
Weak: Financials, Energy, Industrials
Moving the Market
-- Apple (AAPL) issued revenue warning for the March quarter due to the coronavirus
-- S&P 500 closed lower, while Nasdaq eked out closing record
-- Investors assumed some defensive positioning: Treasuries, gold, and the VIX all posted gains
WTI crude recoups losses and ekes out gain
18-Feb-20 15:25 ET
Dow -147.19 at 29250.80, Nasdaq +6.09 at 9737.29, S&P -7.64 at 3372.52
[BRIEFING.COM] The S&P 500 and Russell 2000 are both down 0.2%.
One last look inside the S&P 500 sectors shows energy (-0.8%) and financials (-0.8%) continuing to lead the market in losses, while utilities (+07%), communication services (+0.6%), and consumer discretionary (+0.2%) trade in the green.
WTI crude settled up $0.05 (+0.1%) to $52.10/bbl.
Stocks close little changed, preserve weekly gains
14-Feb-20 16:10 ET
Dow -25.23 at 29397.99, Nasdaq +19.21 at 9731.20, S&P +6.22 at 3380.16
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market wavered between modest gains and losses on Friday, ultimately closing little changed to preserve the week's solid gains. The S&P 500 (+0.2%) and Nasdaq Composite (+0.2%) eked out small gains, while the Dow Jones Industrial Average (-0.1%) and Russell 2000 (-0.4%) edged lower.
There was little conviction among investors ahead of the three-day weekend, and the mostly in-line economic data released today didn't generate much buzz. Retail sales increased 0.3% m/m in January, as expected, continuing a trend of modest discretionary spending.
Investors did lean defensively, though, evidenced by the gains in the Treasury market and the leadership from the S&P 500 real estate (+1.1%) and utilities (+0.7%) sectors. The defensive posture could have been attributed to some precaution in front of the long weekend considering that the market is sitting on handsome gains this month despite the coronavirus.
Cyclical sectors showed relative weakness with the energy sector (-0.8%) declining the most today.
NVIDIA (NVDA 289.79, +19.01, +7.0%) and Expedia Group (EXPE 122.80, +12.21, +11.0%) stood out with huge gains after reporting solid earnings results. Roku (ROKU 130.25, -8.80, -6.3%) was up as much as 8.7% following its results, but shares sold off and closed lower by 6.3%.
Separately, the White House is considering tax incentives for middle-class Americans to purchase stocks, according to CNBC. The package could be unveiled in early fall prior to the presidential election.
U.S. Treasuries, as previously stated, had a good session, driving yields lower across the curve. The 2-yr yield declined five basis points to 1.42%, and the 10-yr yield declined three basis points to 1.58%. The U.S. Dollar Index increased 0.1% to 99.12. WTI crude rose 1.0%, or $0.53, to $51.93/bbl.
Reviewing Friday's economic data, which featured the Retail Sales report for January:
Total retail sales increased 0.3% m/m in January, as did retail sales, excluding autos. Both were in-line with expectations. There were slight downward revisions to the December data.
The key takeaway from the report is that discretionary spending was modest in January, which will contribute to a sense that Q1 GDP growth was apt to be modest even without any impact from the coronavirus.
Import prices were flat month-over-month in January and were up 0.2% excluding fuel. Export prices were up 0.7%, which was also the case excluding agricultural products. On a year-over-year basis, import prices were up 0.3%, and down 0.9% excluding fuel. Export prices were up 0.5%, and up only 0.2% excluding agricultural products.
The key takeaway from the report is that there were no inflation alarm bells in it for the Federal Reserve.
Industrial production declined 0.3% m/m in January, as expected, following a downwardly revised 0.4% decline (from -0.3%) in December. Total capacity utilization was 76.8%, as expected, following an upwardly revised 77.1% (from 77.0%) in December.
The key takeaway from the report is that the weakness in production stemmed largely from a drop in production at Boeing and warmer-than-normal temperatures that reduced heating demand and weighed on the output of utilities.
The preliminary University of Michigan Index of Consumer Sentiment for February increased to 100.9 (Briefing.com consensus 99.2) from the final reading of 99.8 for January. That was just shy of the expansion peak of 101.4 seen in March 2018.
The key takeaway is that positive consumer attitudes continue to be underpinned by a favorable move of the outlook, which is tied in large part to feeling of job security and income growth prospects.
Business inventories increased 0.1% in December, as expected, while the November reading was unrevised at -0.2%.
As a reminder, the market will be closed on Monday for Washington's Birthday.
Nasdaq Composite +8.5% YTD
S&P 500 +4.6% YTD
Dow Jones Industrial Average +3.0% YTD
Russell 2000 +1.2% YTD
Market Snapshot
Dow 29397.99 -25.23 (-0.09%)
Nasdaq 9731.20 +19.21 (0.20%)
SP 500 3380.16 +6.22 (0.18%)
10-yr Note +24/32 1.587
NYSE Adv 1479 Dec 1371 Vol 844.3 mln
Nasdaq Adv 1423 Dec 1732 Vol 2.2 bln
Industry Watch
Strong: Real Estate, Utilities
Weak: Energy, Consumer Discretionary
Moving the Market
-- Stock market closes mixed and little changed, preserves weekly gains
-- Mostly in-line batch of economic data, including 0.3% increase in January retail sales
-- U.S. Treasuries advanced in front of three-day weekend
WTI crude gains 1% to end week
14-Feb-20 15:25 ET
Dow -104.79 at 29318.43, Nasdaq -5.47 at 9706.52, S&P -2.64 at 3371.30
[BRIEFING.COM] The S&P 500 continues to trade down by 0.1% in this tight-ranged session.
One last look at the S&P 500 sectors shows energy (-1.2%) and consumer discretionary (-0.4%) underperforming the broader market, while real estate (+0.7%) outperforms with a comfortable gain.
WTI crude settled up $0.53 (+1.0%) to $51.93/bbl.
Stocks slip from record highs following spike in reported coronavirus cases
13-Feb-20 16:15 ET
Dow -128.11 at 29423.22, Nasdaq -13.99 at 9711.99, S&P -5.51 at 3373.94
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market slipped from record highs on Thursday following a spike in reported coronavirus cases in China, but it did close well off session lows. The S&P 500 lost 0.2%, the Dow Jones Industrial Average lost 0.4%, and the Nasdaq Composite lost 0.1%. The Russell 2000, however, increased 0.3%.
The news was particularly disappointing because reports over the past few days had indicated that the rate of new cases was slowing down. The surge may have been due to a new diagnostic procedure, but White House officials reportedly remained skeptical of China's information, thinking Beijing is still underreporting cases.
The S&P 500, which was already up 4.8% in February, only declined as much as 0.6% today. This wasn't a move that suggested investors were fearful, but instead reflected a subdued risk sentiment given how far the market had come in a short period of time. Of course, the coronavirus remains a risk, especially for U.S. companies with Chinese exposure.
Given its resiliency, though, investors turned defensive and boosted demand for stocks within the S&P 500 utilities (+1.0%), consumer staples (+0.6%), and real estate (+0.5%) sectors. The industrials (-0.7%) and health care (-0.5%) sectors underperformed.
Cisco Systems (CSCO 47.32, -2.61, -5.2%) was a notable laggard following its earnings report, while PepsiCo (PEP 146.47, +0.39, +0.3%) and Applied Materials (AMAT 67.37, +2.00, +3.1%) closed at record highs following their results. Tesla (TSLA 804.00, +36.71, +4.8%) outperformed after announcing a $2 billion common stock offering.
In other news, the Federal Reserve Bank of New York will reduce the size of its overnight and term repurchase operations, according to Bloomberg. A judge reportedly placed a temporary block on Microsoft's (MSFT 183.71, -1.00, -0.5%) Pentagon cloud contract award following a lawsuit from Amazon (AMZN 2149.87, -10.13, -0.5%).
U.S. Treasuries finished mixed and little changed. The 2-yr yield increased one basis point to 1.45%, while the 10-yr yield declined one basis point to 1.62%. The U.S. Dollar Index increased 0.1% to 99.10. WTI crude rose 0.5%, or $0.23, to $51.40/bbl.
Reviewing Thursday's economic data:
According to the BLS, the Consumer Price Index (CPI) increased just 0.1% m/m in January (Briefing.com consensus +0.2%) while core CPI, which excludes food and energy, increased 0.2%, as expected. The monthly increases left total CPI up 2.5% yr/yr, versus 2.3% in December. That is the largest yr/yr increase since October 2018. Core CPI was up 2.3% yr/yr for the fourth straight month.
The key takeaway from this report is that it won't spark any undue inflation/rate-hike concerns in the market given the stability of core CPI and the Fed's seeming willingness to let inflation run a little hot to prevent inflation expectations from slipping too much.
For the week ending February 8, initial claims increased by 2,000 to 205,000 (Briefing.com consensus 212,000). Continuing claims for the week ending February 1 decreased by 61,000 to 1.698 million.
The key takeaway from the report is that it shows U.S. employers still aren't anticipating any lasting demand shocks related to the coronavirus; otherwise, one might be seeing a spike in initial claims -- a leading indicator -- along with the spike in diagnosed cases.
Looking ahead, investors will receive the following reports on Friday: Retail Sales for January, Industrial Production and Capacity Utilization for January, Import and Export Prices for January, Business Inventories for December, and the preliminary University of Michigan Index of Consumer Sentiment for February.
Nasdaq Composite +8.2% YTD
S&P 500 +4.4% YTD
Dow Jones Industrial Average +3.1% YTD
Russell 2000 +1.5% YTD
Market Snapshot
Dow 29423.22 -128.11 (-0.43%)
Nasdaq 9711.99 -13.99 (-0.14%)
SP 500 3373.94 -5.51 (-0.16%)
10-yr Note +1/32 1.609
NYSE Adv 1426 Dec 1444 Vol 816.7 mln
Nasdaq Adv 1669 Dec 1540 Vol 2.2 bln
Industry Watch
Strong: Utilities, Consumer Staples, Real Estate
Weak: Industrials, Health Care, Energy
Moving the Market
-- China reported large spike in new coronavirus cases; market recouped a bulk of opening losses, though
-- Relative strength in the defensive-oriented sectors
-- An appreciation for the fact that the S&P 500 was up 4.8% over the last eight trading sessions
WTI crude posts modest gain
13-Feb-20 15:25 ET
Dow -77.81 at 29473.52, Nasdaq -1.58 at 9724.40, S&P -0.52 at 3378.93
[BRIEFING.COM] The S&P 500 is trading just below its flat line, while the Russell 2000 trades higher by 0.3%.
One last look at the S&P 500 sectors shows mixed results. The utilities (+1.0%), consumer staples (+0.6%), and real estate (+0.5%) sectors sport decent gains, while the industrials (-0.5%) and energy (-0.4%) sectors hold modest losses.
WTI crude settled up $0.23 (+0.5%) to $51.40/bbl to follow up yesterday's 2.3% gain.
Stock market extends rally to new highs
12-Feb-20 16:15 ET
Dow +275.08 at 29551.33, Nasdaq +87.02 at 9725.98, S&P +21.70 at 3379.45
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.7%), Dow Jones Industrial Average (+0.9%), and Nasdaq Composite (+0.9%) extended their winning ways on Wednesday and closed at new record highs. The Russell 2000 kept pace with a 0.7% gain.
The narratives driving stocks higher remained unchanged. Reports continued to indicate the slowing pace of the coronavirus, Fed Chair Powell's congressional testimony assured investors that monetary policy will remain favorable, and the positive bias in stocks (including foreign ones) continued to fuel risk sentiment.
Ten of the 11 S&P 500 sectors contributed to the advance with the energy (+1.4%) and information technology (+1.1%) sectors taking the top spots today. Energy stocks received extra support from a 2.3% gain in WTI crude ($51.17/bbl, +1.16). The consumer staples sector (-0.04%) sat this one out with a marginal loss.
Apple (AAPL 327.20, +7.59, +2.4%) remained an influential force in the market, while smaller companies Micron (MU 59.27, +2.02, +3.5%), Las Vegas Sands (LVS 71.13, +2.28, +3.3%), and Wynn Resorts (WYNN 136.82, +4.83, +3.7%) benefited from analyst upgrades. Bank of America/Merrill Lynch liked the risk-reward ratios for LVS and WYNN given the improving coronavirus situation.
On the downside, shares of Lyft (LYFT 48.46, -5.48, -10.2%), Western Union (WU 26.13, -2.11, -7.5%), and Bed Bath & Beyond (BBBY 11.79, -3.06, -20.6%) were among today's biggest laggards in response to earnings results.
U.S. Treasuries remained out of favor amid the bullish bias in stocks. The 2-yr yield increased two basis points to 1.44%, and the 10-yr yield increased four basis points to 1.63%. The U.S. Dollar Index remained strong, closing 0.3% higher at 99.00.
Separately, the CBOE Volatility Index fell 9.5% to 13.74, returning to levels seen before the coronavirus started to hit stocks last month.
Reviewing Wednesday's economic data:
The Treasury Budget for January showed a deficit of $32.6 billion versus a surplus of $8.7 billion in the same period a year ago. This budget data is not seasonally adjusted, so the January deficit cannot be compared to the deficit of $13.3 billion for December.
The budget deficit over the last 12 months is $1.063 trillion versus $1.022 trillion in December. The fiscal year-to-date deficit is $389.2 billion versus $310.3 for the same period a year ago.
The weekly MBA Mortgage Applications Index increased 1.1% following a 5.0% increase in the prior week.
Looking ahead, investors will receive the Consumer Price Index for January and the weekly Initial and Continuing Claims report on Thursday.
Nasdaq Composite +8.4% YTD
S&P 500 +4.6% YTD
Dow Jones Industrial Average +3.6% YTD
Russell 2000 +1.3% YTD
Market Snapshot
Dow 29551.33 +275.08 (0.94%)
Nasdaq 9725.98 +87.02 (0.90%)
SP 500 3379.45 +21.70 (0.65%)
10-yr Note -2/32 1.632
NYSE Adv 1744 Dec 1147 Vol 929.2 mln
Nasdaq Adv 1924 Dec 1250 Vol 2.3 bln
Industry Watch
Strong: Energy, Information Technology
Weak: Consumer Staples
Moving the Market
-- Stock market extends rally to new highs in mostly broad-based advance
-- Positive views regarding the coronavirus, the economy, and monetary policy
-- Defensive-oriented stocks underperformed
WTI crude climbs 2% in risk-on session
12-Feb-20 15:25 ET
Dow +248.98 at 29525.23, Nasdaq +74.10 at 9713.06, S&P +19.44 at 3377.19
[BRIEFING.COM] The S&P 500 is currently up 0.6%, and the Russell 2000 is up 0.7%.
One last look inside the S&P 500 shows the energy (+1.3%) and communication services (+1.0%) sectors leading the market in gains, while the consumer staples sector (-0.1%) sits this one out with a modest decline.
WTI crude settled up $1.16 (+2.3%) to $51.17/bbl.
S&P 500 and Nasdaq extend winning ways with small gains
11-Feb-20 16:15 ET
Dow -0.48 at 29276.25, Nasdaq +10.55 at 9638.96, S&P +5.66 at 3357.75
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The large-cap indices started Tuesday's session hitting intraday highs, but stocks steadily pulled back throughout the day amid a lack of follow-though buying interest. The S&P 500 (+0.2%) and Nasdaq Composite (+0.1%) still eked out closing records, while the Dow Jones Industrial Average (unch) finished flat. The Russell 2000 rose 0.6%.
The initial boost in the market was attributed to reports indicating that the rate of new coronavirus cases was slowing down and a view that monetary policy will remain favorable given the risks that remain due to the virus. Fed Chair Powell told the House Financial Services Committee today that the Fed is "closely monitoring" the situation.
The S&P 500 real estate (+1.2%) and energy (+1.0%) sectors advanced at least 1.0%. The communication services (-0.4%), consumer staples (-0.3%), and information technology (-0.3%) sectors underperformed, with the former pressured by Facebook (FB 207.19, -5.87, -2.8%) after it was downgraded to Sell from Hold at Pivotal Research.
The ratio of advancers to decliners in the NYSE was more than 2:1, but today's advance was slim given the missing leadership from the mega-cap technology stocks. On a related note, the FTC said it will be examining small acquisitions made by Apple (AAPL 319.61, -1.94, -0.6%), Microsoft (MSFT 184.44, -4.26, -2.3%), Alphabet (GOOG 1508.79, +0.11, unch), Amazon (AMZN 2150.80, +16.89, +0.8%), and Facebook (FB).
Separately, the merger agreement between Sprint (S 8.52, +3.72, +77.5%) and T-Mobile US (TMUS 94.49, +9.96, +11.8%) was finally approved by a federal court in New York. Shares of Sprint surged more than 75% in response.
In earnings news, Under Armour (UAA 16.59, -3.86, -18.9%) and Goodyear Tire (GT 11.56, -1.63, -12.4%) disappointed investors with results and/or guidance and both mentioned the negative impact caused by the coronavirus. Burlington Stores (BURL 243.45, +14.95, +6.5%) outperformed after raising guidance.
U.S. Treasuries finished on a lower note and barely moved during Fed Chair Powell's congressional testimony. The 2-yr yield increased four basis points to 1.42%, and the 10-yr yield increased four basis points to 1.42%. The U.S. Dollar Index declined 0.1% to 98.75. WTI crude rose 0.9%, or $0.44, to $50.01/bbl.
Reviewing Tuesday's economic data:
The NFIB Small Business Optimism Index for January increased to 104.3 from 102.7 in December.
The December Job Openings and Labor Turnover Survey showed job openings decline to 6.423 million from a revised 6.787 million in November (from 6.800 million).
Looking ahead, investors will receive the weekly MBA Mortgage Applications Index and the Treasury Budget for January on Wednesday.
Nasdaq Composite +7.4% YTD
S&P 500 +3.9% YTD
Dow Jones Industrial Average +2.6% YTD
Russell 2000 +0.5% YTD
Market Snapshot
Dow 29276.25 -0.48 (0.00%)
Nasdaq 9638.96 +10.55 (0.11%)
SP 500 3357.75 +5.66 (0.17%)
10-yr Note -2/32 1.594
NYSE Adv 1987 Dec 906 Vol 835.3 mln
Nasdaq Adv 1965 Dec 1192 Vol 2.4 bln
Industry Watch
Strong: Real Estate, Energy
Weak: Communication Services, Consumer Staples, Information Technology
Moving the Market
-- S&P 500 and Nasdaq eke out closing records in lackluster session
-- Fed Chair Powell testifies before Congress, says closely monitoring the coronavirus
-- Rate of new cases is reportedly slowing down
-- Relative strength in the real estate space
WTI crude closes back above $50 per barrel
11-Feb-20 15:25 ET
Dow -45.51 at 29231.22, Nasdaq -5.43 at 9622.98, S&P +3.04 at 3355.13
[BRIEFING.COM] The S&P 500 is clinging onto a slim 0.1% gain, while the Dow (-0.1%) and Nasdaq (-0.1%) slip lower.
One last look at the S&P 500 sector shows real estate (+1.1%), materials (+1.0%), and consumer discretionary (+1.0%) providing support for the broader market, while the communication services (-0.4%) and consumer staples (-0.3%) sectors trade lower.
WTI crude settled up $0.44 (+0.9%) to $50.01/bbl.
Stock market lifted by mega-cap tech
10-Feb-20 16:15 ET
Dow +174.31 at 29276.73, Nasdaq +107.88 at 9628.41, S&P +24.38 at 3352.09
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market finished strong on Monday, with shares of mega-cap technology companies propelling the S&P 500 (+0.7%) and Nasdaq Composite (+1.1%) to new closing records. The Dow Jones Industrial Average (+0.6%) and Russell 2000 (+0.7%) performed in-line with the S&P 500.
Three names largely behind today's advance were Amazon (AMZN 2133.91, +54.63, +2.6%), Microsoft (MSFT 188.70, +4.81, +2.6%), and Alphabet (GOOG 1508.68, +29.45, +2.0%), which each rose at least 2.0%. Investors presumably remained assured that these tech giants offered a good mix of growth and safety, especially amid the coronavirus outbreak.
In turn, the consumer discretionary (+1.3%) and information technology (+1.4%) sectors were among the sector leaders, as well as the defensive-oriented real estate sector (+1.2%). The energy sector (-0.8%) continued to underperform, as WTI crude ($49.57/bbl, -0.78, -1.6%) fell back below $50/bbl amid lingering concerns about end-demand due to the coronavirus.
Advanced Micro Devices (AMD 52.26, +2.53, +5.1%) outperformed following a speculative report that Apple (AAPL 321.55, +1.52, +0.5%) could use its chips instead of Intel's (INTC 66.39, +0.37, +0.6%) in future Macs. IBM (IBM 154.43, +1.02, +0.7%) will reportedly deploy Slack's (WORK 26.57, +3.58, +15.6%) platform for all its employees.
In M&A activity, Taubman Centers (TCO 53.12, +18.45, +53.2%) agreed to be acquired by Simon Property (SPG 143.06, +2.04, +1.5%) for $52.50/share in cash. Xerox (XRX 37.69, +0.52, +1.4%) increased its offer to acquire HP Inc. (HPQ 21.90, +0.17, +0.8%) by $2.00 to $24.00/share in cash and stock.
U.S. Treasuries posted modest gains, pushing yields lower across the curve. The 2-yr yield declined one basis point to 1.38%, and the 10-yr yield declined three basis points to 1.55%. The U.S. Dollar Index increased 0.2% to 98.85.
Investors did not receive any notable economic data on Monday. Looking ahead, the NFIB Small Business Optimism Index for January and the JOLTS - Job Openings report for December will be released on Tuesday.
Nasdaq Composite +7.3% YTD
S&P 500 +3.8% YTD
Dow Jones Industrial Average +2.6% YTD
Russell 2000 -0.1% YTD
Market Snapshot
Dow 29276.73 +174.31 (0.60%)
Nasdaq 9628.41 +107.88 (1.13%)
SP 500 3352.09 +24.38 (0.73%)
10-yr Note +2/32 1.565
NYSE Adv 1694 Dec 1181 Vol 846.6 mln
Nasdaq Adv 1952 Dec 1238 Vol 2.2 bln
Industry Watch
Strong: Consumer Discretionary, Information Technology, Real Estate
Weak: Energy
Moving the Market
-- S&P 500 and Nasdaq close at new highs
-- Stock market finishes strong, thanks to strength in the mega-cap technology stocks
-- Continued weakness in energy stocks amid another decline in oil prices
WTI crude falls back below $50 per barrel
10-Feb-20 15:25 ET
Dow +120.16 at 29222.58, Nasdaq +87.12 at 9607.65, S&P +17.94 at 3345.65
[BRIEFING.COM] The S&P 500 is up 0.6%, and the Russell 2000 is up 0.5%.
One last look at the S&P 500 sectors shows consumer discretionary (+1.0%), real estate (+0.8%), and information technology (+0.7%) leading in gains. Conversely, the energy (-1.4%) and financials (-0.2%) sectors lag.
WTI crude fell $0.78 (-1.6%) to $49.57/bbl.
Stocks end strong week on lower note despite decent jobs report
07-Feb-20 16:15 ET
Dow -277.26 at 29102.42, Nasdaq -51.64 at 9520.53, S&P -18.07 at 3327.71
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 pulled back 0.5% on Friday, unable to generate follow-through buying interest after the better-than-expected employment report for January. The Nasdaq Composite (-0.5%) fell in-line with the benchmark index, while the Dow Jones Industrial Average (-0.9%) and Russell 2000 (-1.2%) underperformed.
Nonfarm payrolls grew by 225,000 in January, beating the Briefing.com consensus of 164,000 and corroborating prior reports from this week that U.S. hiring activity remained strong. Average hourly earnings increased 0.3%, as expected, while the unemployment rate increased to 3.6% (Briefing.com consensus 3.5%) from 3.5%.
The employment report capped a series of good reports this week, but it wasn't enough to warrant more gains on Friday. The S&P 500, after all, entered the session up 3.7% for the week in part due to data showing strength in the labor market.
The S&P 500 information technology sector (-1.5%) was an influential weight on the market amid broad-based weakness. Apple (AAPL 320.03, -4.41, -1.4%) was pressured by news that it extended the closure of its China stores through Feb. 15. The defensive-oriented consumer staples sector (+0.2%) outperformed.
Notable gainers included Uber (UBER 40.63, +3.54, +9.5%), AbbVie (ABBV 92.29, +5.11, +5.9%), and T-Mobile US (TMUS 85.44, +2.67, +3.2%) following their earnings reports. Take-Two Interactive (TTWO 112.60, -15.14, -11.9%), on the other hand, was the biggest laggard in the S&P 500 following its report.
In other corporate news, FedEx (FDX 155.66, +7.03, +4.7%) said it is optimizing last-mile residential deliveries that will drive costs lower. Intercontinental Exchange (ICE 92.63, +2.52, +2.8%) said it will no longer explore strategic opportunities with eBay (EBAY 36.20, -1.80, -4.7%).
U.S. Treasuries finished on a higher note amid the negative bias in the stock market. The 2-yr yield declined six basis points to 1.39%, and the 10-yr yield declined seven basis points to 1.58%. The U.S. Dollar Index increased 0.2% to 98.69. WTI crude fell 1.2%, or $0.62, to $50.35/bbl.
Reviewing Friday's economic data:
Nonfarm payrolls, bolstered by a nice 44,000 increase in construction jobs, were better than expected in January; average hourly earnings were up; and the labor force participation rate improved with annual adjustments to population controls giving it some ballast. January nonfarm payrolls increased by 225,000 (Briefing.com consensus 164,000).
The key takeaway from the report is that employment conditions remain in that sweet spot of being encouraging on the hiring front and encouraging on the inflation front in that average hourly earnings growth isn't accelerating sharply enough to provoke imminent rate-hike concerns.
Wholesale inventories declined 0.2% in December (Briefing.com consensus -0.1%) following a revised 0.1% increase (from -0.1%) in November
Consumer credit increased by $22.0 bln in November (Briefing.com consensus $17.5 bln) after increasing a downwardly revised $11.9 bln (from $12.5 billion) in November.
The key takeaway from the report is that the increase in December was led by a jump in revolving credit.
Investors will not receive any notable economic data on Monday.
Nasdaq Composite +6.1% YTD
S&P 500 +3.0% YTD
Dow Jones Industrial Average +2.0% YTD
Russell 2000 -0.7% YTD
Market Snapshot
Dow 29102.42 -277.26 (-0.94%)
Nasdaq 9520.53 -51.64 (-0.54%)
SP 500 3327.71 -18.07 (-0.54%)
10-yr Note +27/32 1.586
NYSE Adv 1009 Dec 1829 Vol 859.9 mln
Nasdaq Adv 973 Dec 2211 Vol 2.2 bln
Industry Watch
Strong: Consumer Staples, Real Estate, Communication Services
Weak: Information Technology, Materials
Moving the Market
-- Stock market closed lower but still finished the week sharply higher
-- Economy added 225,000 jobs to nonfarm payrolls in January (Briefing.com consensus 164,000)
-- Relative weakness in the information technology sector, while defensive-oriented sectors outperformed
WTI crude extends losses
07-Feb-20 15:30 ET
Dow -273.18 at 29106.50, Nasdaq -17.53 at 9554.64, S&P -17.31 at 3328.47
[BRIEFING.COM] The S&P 500 is on pace to end a great week on lower note. Currently, the benchmark index is down 0.5%.
One last look inside the S&P 500 shows materials (-1.5%) and information technology (-1.0%) down at least 1.0%, while consumer staples (+0.2%), communication services (+0.1%), and real estate (+0.1%) trade higher.
WTI crude fell $0.62 (-1.2%) to $50.35/bbl.
Major indices extend weekly gains, close at new highs
06-Feb-20 16:10 ET
Dow +88.92 at 29379.68, Nasdaq +63.47 at 9572.17, S&P +11.09 at 3345.78
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.7%), and Dow Jones Industrial Average (+0.3%) added to their strong weekly gains and closed at fresh record highs on Thursday. The small-cap Russell 2000 (-0.3%) struggled to keep pace and closed lower.
The lead news item today was China announcing it will cut tariffs on $75 billion of U.S. imports by 50% on Feb. 14. This should not only help Beijing fulfill its pledges from the Phase One trade deal, but also provide additional economic stimulus. In the U.S., weekly jobless claims falling to their lowest level in nine months was another good sign for the economy.
Mega-cap technology stocks did the heavy lifting today, helping the S&P 500 communication services (+1.1%) and information technology (+0.9%) sectors outpace the broader market. The S&P 500, however, drifted with modest gains throughout the session, as investors presumably exercised some caution after a big week with the January employment report still due tomorrow.
The energy sector (-1.0%) was today's outright laggard after a rare outperformance yesterday.
Earnings were mixed and, keeping with recent trend, reactions were isolated to reporting companies. Twitter (TWTR 38.41, +5.02, +15.0%) and Cardinal Health (CAH 58.26, +5.58, +10.6%) stood out with impressive post-earnings gains, while Becton Dickinson (BDX 252.25, -33.74, -11.8%) and Kellogg (K 63.46, -5.90, -8.5%) were some of the laggards.
Separately, Boeing (BA 341.43, +11.88, +3.6%) shares outperformed on reports that the FAA will approve the company's design fixes to the 737 MAX. New software flaws were discovered but the goal to return to service by mid-year remained intact, according to Bloomberg.
U.S. Treasuries finished a quiet session little changed. The 2-yr yield was unchanged at 1.45%, and the 10-yr yield declined one basis point to 1.64%. The U.S. Dollar Index increased 0.2% to 98.49. WTI crude increased 0.2% to $50.97/bbl.
Reviewing Thursday's economic data:
Initial claims for the week ending February 1 decreased by 15,000 to 202,000 (Briefing.com consensus 218,000), which is a nine-month low. Continuing claims for the week ending January 25 increased by 48,000 to 1.751 million.
The key takeaway from the report is that the low level of initial claims, which are a leading indicator, is indicative of employers maintaining a positive view of the demand outlook.
The BLS reported that nonfarm business sector labor productivity increased 1.4% in the fourth quarter (Briefing.com consensus 1.7%). Unit labor costs were also up 1.4% (Briefing.com consensus 1.2%).
The key takeaway from the report is that productivity is still running below the long-term average from 1947 to 2019 (2.1%); however, the 1.7% growth in nonfarm business sector productivity in 2019 was the strongest since 2010 and above the 1.3% average for the period 2007-2019.
Looking ahead, investors will receive the Employment Situation Report for January, the Wholesale Inventories report for December, and the Consumer Credit report for December on Friday.
Nasdaq Composite +6.7% YTD
S&P 500 +3.6% YTD
Dow Jones Industrial Average +3.0% YTD
Russell 2000 +0.5% YTD
Market Snapshot
Dow 29379.68 +88.92 (0.30%)
Nasdaq 9572.17 +63.47 (0.67%)
SP 500 3345.78 +11.09 (0.33%)
10-yr Note +1/32 1.642
NYSE Adv 1359 Dec 1502 Vol 950.0 mln
Nasdaq Adv 1459 Dec 1703 Vol 2.3 bln
Industry Watch
Strong: Communication Services, Information Technology
Weak: Energy, Materials, Financials
Moving the Market
-- Stock market extends weekly gains and closes at new record highs
-- China said it will cut tariffs on $75 billion of U.S. imports by 50%
-- Weekly jobless claims drop below expectations to nine-month low
WTI crude inches higher
06-Feb-20 15:25 ET
Dow +40.17 at 29330.93, Nasdaq +44.87 at 9553.57, S&P +6.92 at 3341.61
[BRIEFING.COM] The S&P 500 is down from prior highs and is up just 0.2%.
One last look at the S&P 500 sectors before the close shows mixed results. Communication services (+1.1%) and information technology (+0.8%) outperform amid strength in the mega-cap technology stocks, while energy (-0.9%) and materials (-0.3%) underperform.
WTI crude increased $0.12 (+0.2%) to $50.97/bbl.
S&P 500 and Nasdaq close at new highs, virus concerns wane
05-Feb-20 16:15 ET
Dow +483.22 at 29290.76, Nasdaq +40.71 at 9508.70, S&P +37.10 at 3334.69
[BRIEFING.COM] The S&P 500 rose 1.1% on Wednesday to recoup all losses related to the coronavirus and close at a record high. The Dow Jones Industrial Average (+1.7%) and Russell 2000 (+1.5%) outperformed the benchmark index. The Nasdaq Composite (+0.4%) underperformed in a rare outing, although it still closed at a new high.
Ten of the 11 S&P 500 sectors contributed to the advance, especially the energy sector (+3.8%) after weeks of underperformance and a nice rebound in oil prices ($50.85, +1.24, +2.5%). The real estate sector (-0.1%) was the lone holdout today.
The bullish price action was driven mostly by optimism, particularly tied to the prevailing view that the economy is fine and any negative impact resulting from the coronavirus will be minimal. Aiding this sentiment were reports that progress is being made in developing a vaccine and economic data depicting a healthy labor market and services sector.
Specifically, the ISM Non-Manufacturing Index for January increased to 55.5% (Briefing.com consensus 55.0%) from 54.9% in December. The ADP Employment Change report showed an estimated 291,000 jobs were added to private-sector payrolls in January (Briefing.com consensus 160,000).
That's not to say that the coronavirus is behind the market, though. For instance, Walt Disney (DIS 141.37, -3.36, -2.3%), Nike (NKE 100.54, -0.84, -0.8%), and Capri Holdings (CPRI 33.31, +2.55, +8.3%) formally stated that the coronavirus will have a negative impact on financial results. The market is simply viewing the situation through a positive lens.
In earnings news, Merck (MRK 85.83, -2.53, -2.9%) fell despite beating profit estimates. Ford Motor (F 8.31, -0.87, -9.5%) and General Motors (GM 35.03, +0.66, +1.9%) trended in opposite directions following their results
Other story stocks included Tesla (TSLA 734.70, -152.36, -17.2%), which pulled back from its parabolic rise, and Biogen (BIIB 332.87, +49.58, +17.5%), which was awarded a favorable patent decision for a multiple sclerosis drug.
U.S. Treasuries succumbed to selling interest for the second straight session. The 2-yr yield increased four basis points to 1.45%, and the 10-yr yield increased five basis points to 1.65%. The U.S. Dollar Index increased 0.3% to 98.28.
Reviewing Wednesday's economic data:
The ISM Non-Manufacturing Index for January registered a 55.5% reading (Briefing.com consensus 55.0%) versus a downwardly revised 54.9% (from 55.0%) in December. The January reading eclipsed the December reading as the fastest pace of expansion since August 2019.
The key takeaway from the report is that it marked the second straight month of accelerating activity in the services sector, which is an encouraging sign that the U.S. economic expansion is poised to continue.
The Trade Balance report for December showed a widening in the deficit to $48.9 billion (Briefing.com consensus -$48.2 billion) from a downwardly revised -$43.7 billion (from -$43.1 billion). Exports were $1.6 billion more than November exports while imports were $6.8 billion more than November imports.
The key takeaway from the report is that the goods deficit with China decreased by $73.9 billion in 2019 to $345.6 billion, as tariff measures contributed to a $13.5 billion decrease in exports and an $87.4 billion decrease in imports.
The ADP Employment Change report showed an estimated 291,000 jobs were added to private-sector payrolls in January (Briefing.com consensus 160,000), with healthy gains across small, midsized, and large employers. In turn, there was a nice pickup in jobs added on the goods-producing side of the economy (+54,000).
The weekly MBA Mortgage Applications Index rose 5.0% following a 7.2% increase in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report and preliminary Q4 readings for Productivity and Unit Labor Costs on Thursday.
Nasdaq Composite +6.0% YTD
S&P 500 +3.2% YTD
Dow Jones Industrial Average +2.6% YTD
Russell 2000 +0.8% YTD
Market Snapshot
Dow 29290.76 +483.22 (1.68%)
Nasdaq 9508.70 +40.71 (0.43%)
SP 500 3334.69 +37.10 (1.13%)
10-yr Note -27/32 1.655
NYSE Adv 2203 Dec 668 Vol 994.3 mln
Nasdaq Adv 2207 Dec 981 Vol 2.4 bln
Industry Watch
Strong: Energy, Health Care, Financials
Weak: Real Estate, Communication Services
Moving the Market
-- S&P 500 and Nasdaq close at new highs
-- Renewed strength in the energy sector and oil prices after weeks of underperformance
-- Upbeat economic data for the labor market and services sector
-- Reports that progress is being made for a coronavirus vaccine
WTI crude rebounds 2.5%
05-Feb-20 15:25 ET
Dow +494.31 at 29301.85, Nasdaq +52.94 at 9520.93, S&P +39.11 at 3336.70
[BRIEFING.COM] The S&P 500 is on pace to close at a record high as it now trades higher by 1.2%.
One last look at the S&P 500 sectors shows ten sectors trading higher. Energy (+3.7%) remains in the lead, while the real estate sector (-0.1%) is the lone holdout amid the rise in Treasury yields. The 10-yr yield is up five basis points to 1.65%.
WTI crude settled up $1.24 (+2.5%) to $50.85/bbl in a strong rebound trade.
Stocks rally, Nasdaq closes at new high
04-Feb-20 16:15 ET
Dow +407.82 at 28807.54, Nasdaq +194.57 at 9467.99, S&P +48.67 at 3297.59
https://www.briefing.com/stock-market-update
[BRIEFING.COM] U.S. stocks rallied on Tuesday in a risk-on trade that lifted the Nasdaq Composite (+2.1%) to a new closing record. The S&P 500 (+1.5%), Dow Jones Industrial Average (+1.4%), and Russell 2000 (+1.5%) followed suit with gains of about 1.5%.
Cyclical sectors did most of the heavy lifting, especially the information technology sector (+2.6%), as the market glanced past a revenue miss from Alphabet (GOOG 1447.07, -38.87, -2.6%). The rate-sensitive utilities sector (-1.0%) was the lone holdout, as the selling in the Treasury market drove yields higher.
The 2-yr yield rose six basis points to 1.41%, and the 10-yr yield rose eight basis points to 1.60%. The U.S. Dollar Index advanced 0.1% to 97.94. Gold futures fell 1.7% to $1555.70/ozt.
China helped instill the bullish bias overnight when it stabilized its markets by injecting more liquidity into the system. The People's Bank of China will also reportedly issue cuts to its key lending rate and reserve requirement ratios for banks to help offset the negative economic impact resulting from the coronavirus.
Easy monetary policy usually bodes well for equities on the presumption that greater economic growth, and earnings growth, will follow. Whether that plays out or not, the bullish price action in the market likely fueled the rally amid a fear of missing out on further gains.
Tesla (TSLA 887.06, +107.06, +13.7%) was undoubtedly the stock of the day, clouding Alphabet and its earnings results. Shares were up more than 24% today in a short squeeze beyond belief that had some fearing out on more gains and others starting to believe in the story. Shares did lose steam into the close but still finished up 13.7%.
In M&A news, eBay (EBAY 37.41, +3.02, +8.8%) shares rose nearly 9% after The Wall Street Journal reported that Intercontinental Exchange (ICE 92.59, -7.45, -7.5%) offered to acquire the company in a deal that would value it at more than $30 billion.
Interestingly, WTI crude gave up a 2.9% intraday gain and fell deeper into bear market territory with a loss of 0.9%, or $0.44, to $49.61/bbl. Prices remained hampered by poor sentiment and lowered expectations for oil demand.
Tuesday's economic data was limited to the Factory Orders report for December:
Factory Orders increased 1.8% m/m in December (Briefing.com consensus +1.1%) following a downwardly revised 1.2% decrease (from -0.7%) in November.
The key takeaway from the report is that it reflects generally weak levels of business spending, evidenced by the 0.8% decline in nondefense capital goods orders excluding aircraft.
Looking ahead, investors will receive the ISM Non-Manufacturing Index for January, the ADP Employment Change report for January, the Trade Balance report for December, and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +5.5% YTD
S&P 500 +2.1% YTD
Dow Jones Industrial Average +0.9% YTD
Russell 2000 -0.7% YTD
Market Snapshot
Dow 28807.54 +407.82 (1.44%)
Nasdaq 9467.99 +194.57 (2.10%)
SP 500 3297.59 +48.67 (1.50%)
10-yr Note -6/32 1.596
NYSE Adv 2058 Dec 822 Vol 933.6 mln
Nasdaq Adv 2230 Dec 956 Vol 2.4 bln
Industry Watch
Strong: Information Technology, Industrials, Consumer Discretionary
Weak: Utilities, Energy
Moving the Market
-- Stocks rally in risk-on trade, Nasdaq closes at new high
-- China injects more liquidity into market, reportedly plans more stimulus measures
-- Alphabet (GOOG) falls on revenue miss
WTI crude gives up gains, closes lower
04-Feb-20 15:25 ET
Dow +472.00 at 28871.72, Nasdaq +207.73 at 9481.15, S&P +55.63 at 3304.55
[BRIEFING.COM] The S&P 500 continues to trade higher by 1.7%. The benchmark index is on pace to close back above the 3300 level.
Looking at the S&P 500 sectors shows information technology (+2.6%), materials (+2.2%), and consumer discretionary (+2.1%) leading the rally. The utilities sector (-0.5%) has traded places with the communication services sector (+0.7%) as today's laggard amid the sharp increase in yields today.
WTI crude settled down $0.44 (-0.9%) to $49.61/bbl, giving up a 2.9% intraday gain. Prices remained hampered by dampened spirits or expectations for oil demand.
Stocks rebound to start the week
03-Feb-20 16:10 ET
Dow +143.78 at 28399.72, Nasdaq +122.47 at 9273.42, S&P +23.40 at 3248.92
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 advanced 0.7% on Monday, as investors presumably viewed last week's drop as a good opportunity to buy the dip. The Nasdaq Composite (+1.3%) and Russell 2000 (+1.1%) outperformed, while the Dow Jones Industrial Average (+0.5%) trailed its peers.
Eight of the 11 S&P 500 sectors posted gains, including the materials (+2.1%), information technology (+1.3%), and communication services (+1.3%) sectors. The latter was aided by shares of Alphabet (GOOG 1485.94, +51.71), which rose 3.6% in front of the company's earnings report after the close.
The energy sector (-1.3%) remained hampered by falling oil prices ($50.05, -1.53, -3.0%) amid pestering concerns that the coronavirus outbreak will undercut demand for oil. Prices barely reacted to reports that Saudi Arabia will try to convince OPEC+ to agree to large production cuts.
Good news included the ISM Manufacturing Index returning into expansion mode in January, although market reaction was muted. The index checked in at 50.9% (Briefing.com consensus 48.1%) after five straight months of below-50% readings. In addition, news that Gilead Sciences (GILD 66.36, +3.16, +5.0%) will be testing a treatment for the coronavirus was encouraging to hear.
Despite the positive bias in the market, coronavirus concerns didn't just go away. Negative news related to the outbreak included more cases being reported in other countries, including the U.S.; China's Shanghai Composite dropping 7.7% in its first trading session since Jan. 23; and Apple (AAPL 308.66, -0.85, -0.3%) closing its China stores through Feb. 9.
Separately, today's session included some bullish analyst recommendations. Nike (NKE 99.27, +2.97, +3.1%) was upgraded to Buy from Neutral at UBS and added to JPMorgan's Analyst Focus List. Tesla (TSLA 780.00, +129.43, +19.9%) had its price target raised to $808 from $556 at Argus. Uber (UBER 37.59, +1.30, +3.6%) was added to Wedbush's Best Ideas List.
U.S. Treasuries started the day on a lower note but spent a bulk of intraday action rebounding from session lows. The 2-yr yield increased three basis points to 1.35%, and the 10-yr yield was unchanged at 1.52%. The U.S. Dollar Index rose 0.5% to 97.84.
Reviewing Monday's economic data, which included the ISM Manufacturing Index for January and the Construction Spending report for December:
The ISM Manufacturing Index for January jumped to 50.9% (Briefing.com consensus 48.1%) from an upwardly revised 47.8% (from 47.2%) in December. January marked the first reading above 50% in six months.
The key takeaway from the report is that the manufacturing sector went back into an expansion mode in January, aided by a jump in new orders, production, and new export orders.
Total construction spending decreased 0.2% m/m in December (Briefing.com consensus +0.5%) on the heels of an upwardly revised 0.7% increase (from +0.6%) in November. Residential spending was up 1.4% m/m and nonresidential spending was down 1.2% m/m.
The key takeaway from the report is that there was continued strength in new single-family construction (+2.7%), which was the main driver of the pickup in residential spending.
Looking ahead, investors will receive Factory Orders for December on Tuesday.
Nasdaq Composite +3.4% YTD
S&P 500 +0.6% YTD
Dow Jones Industrial Average -0.5% YTD
Russell 2000 -2.2% YTD
Market Snapshot
Dow 28399.72 +143.78 (0.51%)
Nasdaq 9273.42 +122.47 (1.34%)
SP 500 3248.92 +23.40 (0.73%)
10-yr Note -2/32 1.526
NYSE Adv 1877 Dec 996 Vol 793.8 mln
Nasdaq Adv 2070 Dec 1116 Vol 2.4 bln
Industry Watch
Strong: Materials, Information Technology, Communication Services
Weak: Energy, Industrials, Consumer Staples
Moving the Market
-- Stocks rebound in buy-the-dip trade
-- ISM Manufacturing Index for January returns to expansionary territory
-- Continued weakness in the energy stocks and oil prices
WTI crude loses 3% in continued downtrend
03-Feb-20 15:25 ET
Dow +207.22 at 28463.16, Nasdaq +128.46 at 9279.41, S&P +28.67 at 3254.19
[BRIEFING.COM] The S&P 500 is up 0.9%, and the Russell 2000 is up 0.9%.
One last look inside the benchmark index shows the materials sector (+2.4%) comfortably in the lead, followed by the information technology (+1.3%), communication services (+1.1%), and consumer discretionary (+1.1%) sectors. The energy sector (-1.3%) is down more than 1.0%, coinciding with another sharp decline in oil.
WTI crude dropped $1.53 (-3.0%) to $50.05/bbl amid growing expectations that oil demand will be weaker due to the coronavirus outbreak. Prices received little support from news that Saudi Arabia plans to pitch to OPEC+ to agree to large production cuts.
Stocks sell off to end the week on coronavirus angst
31-Jan-20 16:20 ET
Dow -603.41 at 28255.94, Nasdaq -148.00 at 9150.95, S&P -58.14 at 3225.52
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market sold off to end the week, and month, on growing concerns about the coronavirus and the negative effect it could have on economic growth. The Dow Jones Industrial Average (-2.1%) and Russell 2000 (-2.1%) led the retreat, followed by the S&P 500 (-1.8%) and Nasdaq Composite (-1.6%).
Ten of the 11 S&P 500 sectors finished lower, including six that lost at least 2.0%. The energy sector (-3.2%) bore the brunt of the damage amid the continued weakness in oil prices ($51.58/bbl, -0.60, -1.2%) and the earnings disappointments in Exxon Mobil (XOM 62.12, -2.67, -4.1%) and Chevron (CVX 107.14, -4.26, -3.8%).
The 7% gain in shares of Amazon (AMZN 2008.72, +138.04, +7.4%) following its blowout quarterly results masked the widespread selling in the consumer discretionary sector (+0.8%). IBM (IBM 143.73, +6.96, +5.1%) also bucked the broader trend after it announced a CEO leadership change.
The coronavirus angst was exacerbated by increasing reports of worldwide cases; Delta Air Lines (DAL 55.74, -1.36, -2.4%), United Airlines (UAL 74.80, -2.95, -3.8%), and American Airlines (AAL 26.84, -0.88, -3.2%) suspending U.S.-China flights; and the White House declaring a public health emergency in addition to announcing some travel restrictions.
Fueling de-risking efforts were the disappointing earnings results and/or guidance from Caterpillar (CAT 131.35, -4.02, -3.0%) and Visa (V 198.87, -9.24, -4.4%). Economic data wasn't too great, either. Preliminary GDP data for the eurozone continued to depict a sluggish economy, and the Chicago PMI fell to its lowest level since December 2015 (42.9).
Interestingly, the orderly retreat in the market didn't reflect the panic selling normally attributed with a sharp decline like today. Instead, it reflected an aversion to jump into the market that had gotten a bit overextended and had the potential to fall deeper on more coronavirus headlines.
Unsurprisingly, U.S. Treasuries remained on the advance amid the perceived growth concerns that rattled equities. The 2-yr yield fell seven basis points to 1.32%, and the 10-yr yield fell four basis points to 1.52%. The U.S. Dollar Index fell 0.5% to 97.38.
Reviewing Friday's batch of economic data:
Personal income was up 0.2% m/m in December (Briefing.com consensus +0.3%) while personal spending was up 0.3%, as expected. The PCE Price Index was up 0.3% (Briefing.com consensus +0.2%). That left the yr/yr change at 1.6% versus 1.4% in November. The core PCE Price Index was up 0.2%, as expected. That left the yr/yr change at 1.6% versus 1.5% in November.
he key takeaway from the report is that inflation is still running comfortably below the Fed's longer-run inflation target of 2.0%, making it clear that the market need not fear a rate hike anytime soon.
The Q4 Employment Cost Index increased 0.7%, as expected, seasonally adjusted, for the three-month period ending in December 2019 after increasing 0.7% for the three-month period ending in September 2019.
The key takeaway from the report is that it shows a continuation of moderate growth in compensation costs.
The final reading for the January University of Michigan Index of Consumer Sentiment showed an upward revision to 99.8 (Briefing.com consensus 99.1) from the preliminary reading of 99.1. The final reading for December was 99.3.
The key takeaway from the report is that consumer attitudes remained resilient despite a spate of disconcerting items, such as the geopolitical conflict with Iran, the impeachment trial, and the onset of the coronavirus, underscoring that attitudes about employment and income potential are integral to consumer sentiment.
The Chicago PMI for January fell to 42.9 (Briefing.com consensus 48.7) from a downwardly revised 48.2 reading in January (from 48.9). This was its lowest level since December 2015.
Looking ahead, investors will receive the ISM Manufacturing Index for January, the Construction Spending report for December, and auto and truck sales for January on Monday.
Nasdaq Composite +2.0% YTD
S&P 500 -0.2% YTD
Dow Jones Industrial Average -1.0% YTD
Russell 2000 -3.3% YTD
Market Snapshot
Dow 28255.94 -603.41 (-2.09%)
Nasdaq 9150.95 -148.00 (-1.59%)
SP 500 3225.52 -58.14 (-1.77%)
10-yr Note +30/32 1.501
NYSE Adv 613 Dec 2254 Vol 1.3 bln
Nasdaq Adv 749 Dec 2446 Vol 2.7 bln
Industry Watch
Strong: Consumer Discretionary
Weak: Energy, Industrials, Information Technology
Moving the Market
-- Stock market sells off on pestering growth concerns attributed to coronavirus
-- Amazon (AMZN) rose 7% after reporting blowout quarterly results
-- Heavy selling in the energy sector amid weaker oil prices and earnings disappointments
-- Disappointing Chicago PMI for January, soft GDP data out of the eurozone
WTI crude closes down 1%
31-Jan-20 15:25 ET
Dow -607.26 at 28252.09, Nasdaq -142.26 at 9156.69, S&P -58.69 at 3224.97
[BRIEFING.COM] The S&P 500 is back down at session lows with a 1.8% decline. The Russell 2000 is down 1.8%.
One last look at the S&P 500 sectors shows the energy (-3.4%), information technology (-2.6%), industrials (-2.4%), and materials (-2.2%) sectors down with heavy losses. The consumer discretionary sector (+1.0%) remains the lone sector in the green solely because of Amazon (AMZN 2014.50, +143.68, +7.7%).
WTI crude settled down $0.60 (-1.2%) to $51.58/bbl. For the month, crude futures sold off more than 15%.
Stocks rebound after WHO does not recommend travel restrictions
30-Jan-20 16:25 ET
Dow +124.99 at 28859.35, Nasdaq +23.77 at 9298.95, S&P +10.26 at 3283.66
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 was down as much as 0.9% on Thursday on pestering growth concerns attributed to the coronavirus outbreak. Stocks rebounded throughout the afternoon, however, after WHO declared a global health emergency but did not recommend restricting the movement of people and goods. The S&P 500 ended the session up 0.3%.
The Dow Jones Industrial Average (+0.4%) and Nasdaq Composite (+0.3%) also managed to close higher, while the Russell 2000 (-0.1%) still finished lower.
The coronavirus remained in focus amid numerous reports about the rising death toll in China, the reduced economic activity in the region, and even the first confirmed case of a person-to-person transmission of the virus in the U.S. There was some angst that the economic restrictions enacted in China would carry over to the U.S., which wouldn't be good for the earnings expectations that elevated stock valuations are based on.
The WHO decision, however, helped dispel some of these worries and a relief rally soon followed, most notably in the travel-related stocks and the S&P 500 financials (+1.3%) and energy (+0.9%) sectors. The consumer staples (+1.1%) and utilities (+0.9%) sectors also outperformed, while the health care (-0.8%) and communication services (-0.8%) sectors lagged.
Individual standouts following earnings included Microsoft (MSFT 172.78, +4.74, +2.8%), Coca-Cola (KO 58.86, +1.85, +3.3%), Tesla (TSLA 640.81, +59.82, +10.3%), Eli Lilly (LLY 142.67, +2.75, +2.0%), Mondelez (MDLZ 58.80, +4.24, +7.8%), and ServiceNow (NOW 341.62, +28.69, +9.2%).
Earnings-related laggards included Facebook (FB 209.53, -13.70, -6.1%), Thermo Fisher (TMO 319.86, -14.03, -4.2%), DuPont (DD 52.72, -4.97, -8.6%), UPS (UPS 108.00, -7.76, -6.7%), and Verizon (VZ 59.36, -0.17, -0.3%). Facebook missed earnings estimates, largely due to slower U.S. growth and higher costs.
U.S. Treasuries posted modest gains, although they did begin to lose traction toward the end of the session. The 2-yield declined three basis points to 1.39%, and the 10-yr yield declined four basis points to 1.56%. The U.S. Dollar Index declined 0.1% to 97.86. WTI crude fell 2.2%, or $1.18, to $52.18/bbl.
Reviewing Thursday's economic data:
Real GDP increased at a seasonally adjusted annual rate of 2.1% in the fourth quarter (Briefing.com consensus 1.8%), which was unchanged from the third quarter. The GDP Price Deflator was up just 1.4% (Briefing.com consensus 1.8%) after increasing 1.8% in the third quarter.
All in all, the Advance Q4 GDP estimate painted a picture of an economy running at a moderate growth pace with subdued inflation.
For the week ending January 25, initial claims decreased by 7,000 to 216,000 (Briefing.com consensus 215,000). Continuing claims for the week ending January 18 decreased by 44,000 to 1.703 million.
The key takeaway from the report is that initial claims, which are a leading indicator, are sticking to a line that supports a continuation of the economic expansion.
Looking ahead, investors will receive the following reports on Friday: Personal Income and Spending for December, the Chicago PMI for January, the Employment Cost Index for the fourth quarter, and the final University of Michigan Index of Consumer Sentiment for January.
Nasdaq Composite +3.6% YTD
S&P 500 +1.6% YTD
Dow Jones Industrial Average +1.1% YTD
Russell 2000 -1.2% YTD
Market Snapshot
Dow 28859.35 +124.99 (0.43%)
Nasdaq 9298.95 +23.77 (0.26%)
SP 500 3283.66 +10.26 (0.31%)
10-yr Note 0/32 1.588
NYSE Adv 1487 Dec 1334 Vol 880.0 mln
Nasdaq Adv 1308 Dec 1877 Vol 2.3 bln
Industry Watch
Strong: Financials, Utilities, Consumer Staples
Weak: Communication Services, Health Care, Materials
Moving the Market
-- Stocks recoup losses after WHO declares coronavirus a global health emergency but does not recommend travel or trade restrictions
-- There were pestering growth concerns attributed to the coronavirus outbreak and reduced economic activity in China
-- Mixed earnings: Facebook (FB) disappoints, while Microsoft (MFST), Coca-Cola (KO), and Tesla (TSLA) among gainers
WTI crude settles down 2%
30-Jan-20 15:30 ET
Dow +9.06 at 28743.42, Nasdaq -3.74 at 9271.44, S&P -2.37 at 3271.03
[BRIEFING.COM] The S&P 500 is now trading at its flat line, as investors react positively to WHO saying it will not recommend travel restrictions amid the coronavirus outbreak.
One last look at the S&P 500 sectors shows the communication services (-1.1%), health care (-1.1%), and materials (-1.0%) sectors continuing to underperform the market, while the financials (+0.8%) and consumer staples (+0.7%) sectors sport decent gains.
WTI crude settled lower by $1.18 (-2.2%) to $52.18/bbl.
Stock market closes flat; Apple gains, Fed keeps rates unchanged
29-Jan-20 16:25 ET
Dow +11.60 at 28734.36, Nasdaq +5.48 at 9275.18, S&P -2.84 at 3273.40
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 stumbled into the close on Wednesday, losing 0.1% in a session highlighted by Apple's (AAPL 324.34, +6.65, +2.1%) strong earnings report and the Fed's unchanged policy decision. The Dow Jones Industrial Average (+0.04%) and Nasdaq Composite (+0.1%) eked out gains, while the Russell 2000 (-0.6%) underperformed amid weakness in the energy stocks.
It was an eventful session that could be broken down into halves. The first half was guided by Apple reporting record revenue results and by the earnings-driven gains in Boeing (BA 322.02, +5.46, +1.7%), General Electric (GE 12.94, +1.21, +10.3%), Dow Inc (DOW 49.67, +2.51, +5.3%), and McDonald's (MCD 214.44, +4.05, +1.9%).
The second half, which saw the market begin to pare gains, focused on the Fed. The central bank left the target for the fed funds rate unchanged at 1.50-1.75% and extended repurchase operations to April from January. Fed Chair Powell reiterated that monetary policy is appropriate and will remain so until something changes to alter the macroeconomic outlook.
Aside from the repo extension, there were few surprises from the Fed, which may have contributed to the lack of enthusiasm that followed. The S&P 500 energy (-1.1%), real estate (-0.6%), and communication services (-0.4%) sectors lagged, with the latter pressured by lackluster earnings results from AT&T (T 37.05, -1.53, -4.0%).
The industrials sector (+0.6%) was today's leader, thanks to gains in Boeing, General Electric, and the transport stocks. The transportation space drew support from Norfolk Southern (NSC 214.83, +10.07, +4.9%) after it beat earnings estimates.
The Philadelphia Semiconductor Index, meanwhile, pulled back 1.8% after AMD (AMD 47.51, -3.02, -6.0%) and Xilinx (XLNX 88.06, -10.55, -10.7%) issued disappointing revenue guidance.
Separately, the coronavirus was mentioned by both Fed Chair Powell and Starbucks (SBUX 86.72, -1.88, -2.1%), which will temporarily close half of its stores in China amid the outbreak. Mr. Powell said the Fed is closely monitoring the situation but said it's still too early to assess its impact on global economies.
Demand for Treasuries steadily increased after the Fed's policy directive. The 2-yr yield declined four basis points to 1.42%, and the 10-yr yield declined five basis points to 1.59%. The U.S. Dollar Index increased 0.1% to 98.11. WTI crude declined 0.1% to $53.36/bbl.
Reviewing Wednesday's economic data:
Pending Home Sales unexpectedly fell 4.9% in December (Briefing.com consensus +1.0%). Today's reading follows an unrevised 1.2% increase in November.
The Advance report for International Trade in Goods for December showed a deficit of $68.3 billion versus $63.2 billion in November. Meanwhile, the Advance report for Retail Inventories for December was unchanged, and the Advance report for Wholesale Inventories for December declined 0.1%.
The weekly MBA Mortgage Applications Index rose 7.2% following a 1.2% decline in the prior week.
Looking ahead, investors will receive the advance estimate for Q4 GDP and the weekly Initial and Continuing Claims report on Thursday.
Nasdaq Composite +3.4% YTD
S&P 500 +1.3% YTD
Dow Jones Industrial Average +0.7% YTD
Russell 2000 -1.2% YTD
Market Snapshot
Dow 28734.36 +11.60 (0.04%)
Nasdaq 9275.18 +5.48 (0.06%)
SP 500 3273.40 -2.84 (-0.09%)
10-yr Note +28/32 1.588
NYSE Adv 1433 Dec 1429 Vol 826.2 mln
Nasdaq Adv 1244 Dec 1935 Vol 2.2 bln
Industry Watch
Strong: Industrials, Materials, Utilities
Weak: Real Estate, Communication Services, Energy
Moving the Market
-- Apple (AAPL) reports record revenue, issues upside guidance
-- Fed left rates unchanged as expected and extended repo operations to April from January
-- Strength in the industrials sector thanks to General Electric (GE), Boeing (BA), and the transport stocks
-- Relative weakness in the semiconductor space amid disappointing revenue guidance from AMD (AMD) and Xilinx (XLNX)
WTI crude closes little changed
29-Jan-20 15:30 ET
Dow +90.72 at 28813.48, Nasdaq +30.11 at 9299.81, S&P +5.20 at 3281.44
[BRIEFING.COM] The S&P 500 has pared gains and is now up 0.2% on no specific catalyst. Fed Chair Powell's press conference is now over.
One last look inside the S&P 500 sectors shows the industrials (+0.8%) and information technology (+0.6%) sectors outperforming the broader market, while the energy (-0.9%) and real estate (-0.6%) sectors underperform.
WTI crude settled down $0.04 (-0.1%) to $53.36/bbl.
Stocks rebound on waning virus concerns
28-Jan-20 16:20 ET
Dow +187.05 at 28722.76, Nasdaq +130.37 at 9269.70, S&P +32.61 at 3276.24
https://www.briefing.com/stock-market-update
[BRIEFING.COM] U.S. stocks bounced back on Tuesday, recovering a bulk of yesterday's losses as investors bought the dip amid waning coronavirus concerns. The Nasdaq Composite led the rebound with a 1.4% gain, while the S&P 500 (+1.0%), Dow Jones Industrial Average (+0.7%), and Russell 2000 (+0.9%) followed behind.
The day began with modest gains, as the market looked past disappointing earnings reports from 3M (MMM 165.56, -10.07, -5.7%) and Pfizer (PFE 38.10, -2.06, -5.1%), then stocks climbed higher soon after the Conference Board released its Consumer Confidence Index for January. That index rose to 131.6 (Briefing.com consensus 128.0) from 128.2 in December.
All 11 S&P 500 sectors contributed to the rally, including five that rose at least 1.0%. The information technology sector (+1.9%) led the charge on the back of Apple (AAPL 317.69, +8.74, +2.8%), which was set to release its earnings report after the close. Shares got an added lift on reports Apple asked suppliers to raise iPhone production levels by more than 10% over the last year.
The Philadelphia Semiconductor Index, which was among yesterday's worst-performing groups, rose 2.4%. The consumer staples sector, which was yesterday's best-performing S&P 500 sector, increased just 0.1%.
As for the coronavirus, there weren't too many positive developments on the situation, as more cases and deaths were confirmed in China with additional travel restrictions enacted. Investors, however, appeared placated by the fact that it remained under control in the U.S. Any negative impact to earnings growth, thus, might be transitory or minimal.
In other earnings news, United Technologies (UTX 152.86, +1.83, +1.2%) and Lockheed Martin (LMT 437.17, +4.79, +1.1%) were some of the more notable companies today that beat top and bottom-line estimates.
U.S. Treasuries gave back some of their recent gains, sending yields modestly higher. The 2-yr yield increased three basis points to 1.46%, and the 10-yr yield increased four basis points to 1.64%. The U.S. Dollar Index finished flat at 97.98. WTI crude rose 0.7%, or $0.39, to $53.40/bbl.
Reviewing Tuesday's economic data:
The Conference Board's Consumer Confidence Index rose to 131.6 in January (Briefing.com consensus 128.0) from an upwardly revised 128.2 (from 126.5) in December.
The key takeaway from the report is that the survey group remains optimistic about the overall situation, as nearly 41% of respondents described business conditions as good while 49% of respondents believed that jobs are plentiful.
Total durable goods orders rose 2.4% m/m in December (Briefing.com consensus +0.5%) following a downwardly revised 3.1% decline (from -2.0%) in November. Excluding transportation, durable goods orders slipped 0.1% (Briefing.com consensus +0.3%) on the heels of a downwardly revised 0.4% decline (from 0.0%) in November.
The key takeaway from the report is that nondefense capital goods orders, excluding aircraft -- a proxy for business spending -- declined 0.9% after increasing just 0.1% in November. Shipments of these goods, which factor into GDP computations, were down 0.4% following a 0.3% decline in November.
The S&P Case-Shiller Home Price Index increased 2.6% yr/yr in November (Briefing.com consensus 2.5%) following a 2.2% yr/yr increase in December.
Looking ahead, investors will receive the following on Wednesday: an FOMC Rate Decision, Pending Home Sales for December, the weekly MBA Mortgage Applications Index, and the Advance reports for Wholesale Inventories, Retail Inventories, and Trade in Goods.
Nasdaq Composite +3.3% YTD
S&P 500 +1.4% YTD
Dow Jones Industrial Average +0.7% YTD
Russell 2000 -0.6% YTD
Market Snapshot
Dow 28722.76 +187.05 (0.66%)
Nasdaq 9269.70 +130.37 (1.43%)
SP 500 3276.24 +32.61 (1.01%)
10-yr Note -25/32 1.649
NYSE Adv 1990 Dec 885 Vol 832.6 mln
Nasdaq Adv 2156 Dec 971 Vol 2.1 bln
Industry Watch
Strong: Information Technology, Financials, Communication Services
Weak: Consumer Staples
Moving the Market
-- Investors buying the coronavirus dip, S&P 500 up around 1%
-- Broad-based advance led by the technology stocks
-- 3M (MMM) and Pfizer (PFE) disappoint with earnings and/or guidance.
WTI crude posts modest gain
28-Jan-20 15:25 ET
Dow +247.64 at 28783.35, Nasdaq +145.79 at 9285.12, S&P +39.60 at 3283.23
[BRIEFING.COM] The S&P 500 is up 1.2% and is on pace to recoup most of its losses from yesterday.
One last look inside the S&P 500 shows the information technology sector leading the charge with a 2.0% gain. At the other end is the consumer staples sector with a small 0.3% gain.
WTI crude settled higher by $0.39 (+0.7%) to $53.40/bbl. The commodity is still down more than 12% this month, though.
Stock market loses more than 1.5% as coronavirus outbreak worsens
27-Jan-20 16:20 ET
Dow -453.93 at 28535.71, Nasdaq -175.60 at 9139.33, S&P -51.84 at 3243.63
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The large-cap indices retreated more than 1.5% on Monday, as the continued outbreak of the coronavirus triggered more profit taking and some overdue selling. The S&P 500 lost 1.6%, the Dow Jones Industrial Average lost 1.6%, and the Nasdaq Composite lost 1.9%. The Russell 2000 declined 1.1%.
Most of today's decline transpired at the open after the coronavirus death toll increased to more than 80 in China with five confirmed cases of the virus in the U.S. The CDC said the health risk to the U.S. remains low, but the fact that the outbreak worsened over the weekend fostered a risk-off sentiment throughout the session.
There was no follow-through selling, but all 11 S&P 500 sectors did finish in negative territory. The energy (-2.8%) and information technology (-2.4%) sectors were hit the hardest, while the defensive-oriented consumer staples (-0.3%) and utilities (-0.3%) sectors posted modest losses. Energy stocks were undercut by another 2.2% drop in WTI crude ($53.01/bbl, -1.20).
The underlying view was that earnings growth, particularly for companies with Chinese exposure, may not be as strong as had hoped due to the coronavirus reducing economic activity. In turn, Apple (AAPL 308.95, -9.36, -2.9%), Wynn Resorts (WYNN 123.89, -10.86, -8.1%), and those within the Philadelphia Semiconductor Index (-3.9%) took huge losses today.
Investors might appreciate the fact that the market's positive trend remained intact, though, as the S&P 500 closed well above its ascending 50-day moving average (3199). D.R. Horton (DHI 59.67, +1.16, +2.0%) shareholders, meanwhile, were pleased to hear that the company beat top and bottom-line estimates and raised its FY20 guidance.
Still, a view that the selling may not be over contributed to a 25.2% spike in the CBOE Volatility Index (18.23, +3.67), as investors scrambled for protection, while others rushed for safety in U.S. Treasuries. The 2-yr yield fell five basis points to 1.43%, and the 10-yr yield fell eight basis points to 1.61%. The U.S. Dollar Index increased 0.1% to 97.94.
Monday's lone economic report was the New Home Sales report for December, which failed to stir much enthusiasm in the market:
New home sales decreased 0.4% m/m in December to a seasonally adjusted annual rate of 694,000 units (Briefing.com consensus 725,000) from a downwardly revised 697,000 (from 719,000) in November.
The key takeaway from the report is that new home sales were still strong on a year-over-year basis (+23.0%), benefiting from the drop in mortgage rates and the extremely tight supply of existing homes for sale.
Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for January, the Durable Goods Orders report for December, and the S&P Case-Shiller Home Price Index for November on Tuesday.
Nasdaq Composite +1.9% YTD
S&P 500 +0.4% YTD
Dow Jones Industrial Average unch YTD
Russell 2000 -1.5% YTD
Market Snapshot
Dow 28535.71 -453.93 (-1.57%)
Nasdaq 9139.33 -175.60 (-1.89%)
SP 500 3243.63 -51.84 (-1.57%)
10-yr Note +30/32 1.602
NYSE Adv 623 Dec 2255 Vol 977.6 mln
Nasdaq Adv 757 Dec 2436 Vol 2.6 bln
Industry Watch
Strong: Utilities, Consumer Staples
Weak: Information Technology, Energy, Materials
Moving the Market
-- Stocks drop in broad-based retreat as coronavirus outbreak worsens
-- Triggers profit taking, overdue selling
-- Yields drop, oil prices drop
WTI crude drops more than 2%
27-Jan-20 15:25 ET
Dow -377.26 at 28612.38, Nasdaq -150.92 at 9164.01, S&P -42.94 at 3252.53
[BRIEFING.COM] The S&P 500 is currently down 1.3%.
One last look at the S&P 500 sectors shows energy (-2.7%) and information technology (-2.1%) down more than 2%, while the defensive-oriented consumer staples (unch) and utilities (unch) sectors are trading at their flat lines.
WTI crude fell $1.20 (-2.2%) to $53.01/bbl, as expectations for oil demand remained weak amid the Wuhan coronavirus outbreak.
Stocks retreat on renewed coronavirus concerns
24-Jan-20 16:10 ET
Dow -170.36 at 28989.64, Nasdaq -87.57 at 9314.93, S&P -30.07 at 3295.47
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 lost 0.9% on Friday in a steady decline from opening levels, as risk sentiment was dampened by the CDC confirming the second case of coronavirus in the U.S. The Nasdaq Composite lost 0.9%, the Dow Jones Industrial Average lost 0.6%, and the Russell 2000 lost 1.4%.
The day started in positive territory, with the Nasdaq even setting a new intraday high, after Intel (INTC 68.47, +5.15, +8.1%) and American Express (AXP 135.11, +3.74, +2.9%) impressed investors with earnings and guidance. The early lead dissipated amid a view that the coronavirus could impinge discretionary spending and earnings growth.
The orderly retreat throughout the day, however, suggested that the news was a good excuse to withdraw, or take profits, from an overbought market. The S&P 500 health care (-1.7%), financials (-1.4%), and consumer discretionary (-1.3%) sectors led the decline, while the utilities sector (+0.3%) was the lone holdout, as increased demand for Treasuries drove yields lower.
The 2-yr yield declined four basis points to 1.48%, and the 10-yr yield declined six basis points to 1.68%. The U.S. Dollar Index increased 0.2% to 97.86. WTI crude dropped 2.5% (-$1.40) to $54.21/bbl, as expectations for oil demand continued to weaken amid the spread of the coronavirus.
Shares of Boeing (BA 323.05, +5.26, +1.7%) were volatile following another series of headlines. Shares initially fell on news it was considering cutting production for its 787 Dreamliner, but then rallied on reports that the FAA is telling airlines it could approve the 737 MAX before mid-2020.
In other corporate news, Broadcom (AVGO 324.00, +4.35, +1.4%) secured two, separate multi-year agreements with Apple (AAPL 318.31, -0.92, -0.3%) to supply high-performance wireless components and modules.
On a related note, investors were dismayed to hear Skyworks Solutions (SWKS 122.31, -5.88, -4.6%) and Qorvo (QRVO 113.39, -5.29, -4.5%) may seek bids to acquire Broadcom's wireless chip unit, which could sell for $10 billion, according to Bloomberg.
Investors did not receive any notable economic data on Friday. Looking ahead, the New Home Sales report for December will released on Monday.
Nasdaq Composite +3.8% YTD
S&P 500 +2.0% YTD
Dow Jones Industrial Average +1.6% YTD
Russell 2000 -0.4% YTD
Market Snapshot
Dow 28989.64 -170.36 (-0.58%)
Nasdaq 9314.93 -87.57 (-0.93%)
SP 500 3295.47 -30.07 (-0.90%)
10-yr Note +4/32 1.687
NYSE Adv 861 Dec 2003 Vol 871.0 mln
Nasdaq Adv 827 Dec 2341 Vol 2.5 bln
Industry Watch
Strong: Utilities
Weak: Health Care, Financials, Consumer Discretionary
Moving the Market
-- Stock market retreats after second confirmed case of coronavirus in the U.S.
-- Intel (INTC) and American Express (AXP) rise on strong earnings, encouraging guidance
-- Continued weakness in energy stocks and oil prices
WTI crude drops 2.5% amid weaker demand expectations
24-Jan-20 15:25 ET
Dow -130.16 at 29029.84, Nasdaq -73.01 at 9329.49, S&P -27.04 at 3298.50
[BRIEFING.COM] The S&P 500 is off session lows and now trades lower by 0.8%. The Russell 2000 is down 1.4%.
One last look inside the S&P 500 shows ten sectors trading lower, including health care (-1.6%), financials (-1.4%), energy (-1.2%), and consumer discretionary (-1.2%). The utilities sector (+0.3%) remains the lone holdout amid the decline in yields.
WTI crude settled lower by $1.40 (-2.5%) to $54.21/bbl, as weaker expectations for oil demand due to the coronavirus continued to undercut prices.
S&P 500 and Nasdaq eke out gains as WHO eases virus worries
23-Jan-20 16:15 ET
Dow -26.18 at 29160.00, Nasdaq +18.71 at 9402.50, S&P +3.79 at 3325.54
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 lost as much as 0.6% on Thursday amid concerns about growth and valuation, but an intraday rebound gathered steam after the World Health Organization declined to declare an international virus alert or public health emergency for the coronavirus. The benchmark index finished the session up 0.1%.
The Nasdaq Composite (+0.2%) closed at a record high, and the Russell 2000 (+0.03%) eked out a slim gain. The Dow Jones Industrial Average (-0.1%) edged lower amid negative reactions to earnings reports from Travelers (TRV 134.19, -7.15, -5.1%) and Procter & Gamble (PG 124.99, -0.57, -0.5%).
China unnerved the market after it locked down several cities to contain the spreading of the coronavirus ahead of the Lunar New Year festivities. The swift decision rekindled concerns that economic activity would slow down and possibly affect the earnings prospects that current stock valuations are based on.
These growth concerns were manifested in the continued depreciation of oil ($55.61, -1.07, -1.9%) and the flattening activity in the U.S. Treasury yield curve, although the steady advance in the S&P 500 industrials sector (+1.1%) somewhat undermined the slower growth narrative. The real estate (+1.0%) and utilities (+0.9%) sectors benefited from lower yields.
The industrial sector outperformed amid gains in Union Pacific (UNP 187.19, +6.26, +3.5%), which released a well-received earnings report, and General Electric (GE 11.77, +0.40, +3.5%), which was upgraded to Overweight from Equal-Weight at Morgan Stanley. A rebound in Boeing (BA 317.79, +8.79, +2.8%) also helped.
Sectors steadily cut losses throughout the afternoon, partly due to the idea that the coronavirus is not yet something to fear and that actions are being taken to mitigate its effects. Ironically, the health care sector (-0.5%) was today's laggard.
Separately, Comcast (CMCSA 45.65, -1.79, -3.8%) beat earnings estimates, but shares still finished lower. Comcast said it expects video subscriber losses to increase in 2020, which contributed to the 7% rebound in shares of Netflix (NFLX 349.60, +23.60, +7.2%).
As previously stated, the U.S. Treasury market experienced some curve-flattening activity. The 2-yr yield increased one basis point to 1.52%, while the 10-yr yield declined three basis points to 1.74%. The U.S. Dollar Index increased 0.2% to 97.68.
Reviewing Thursday's economic data:
Initial claims for the week ending January 18 increased by 6,000 to 211,000 (Briefing.com consensus 215,000). Continuing claims for the week ending January 11 decreased by 37,000 to 1.731 million.
The key takeaway from the report is that it covered the period in which the survey for the January employment report is conducted. The low level of initial claims, then, should forge expectations for another decent gain in nonfarm payrolls.
The Conference Board's Leading Economic Index (LEI) declined 0.3% m/m in December (Briefing.com consensus -0.2%) following an upwardly revised 0.1% increase (from 0.0%) in November. December was the fourth time in the last five months that the LEI declined.
The key takeaway from the report is the Conference Board's indication that weaknesses among the leading indicators have become slightly more widespread than the strengths.
Investors will not receive any notable economic data on Friday.
Nasdaq Composite +4.8% YTD
S&P 500 +2.9% YTD
Dow Jones Industrial Average +2.2% YTD
Russell 2000 +1.0% YTD
Market Snapshot
Dow 29160.00 -26.18 (-0.09%)
Nasdaq 9402.50 +18.71 (0.20%)
SP 500 3325.54 +3.79 (0.11%)
10-yr Note +26/32 1.730
NYSE Adv 1425 Dec 1402 Vol 948.5 mln
Nasdaq Adv 1415 Dec 1760 Vol 2.5 bln
Industry Watch
Strong: Industrials, Utilities, Real Estate
Weak: Health Care, Energy
Moving the Market
-- Stocks cut intraday losses, Nasdaq closes at record high
-- World Health Organization declined to declare an international virus alert or public health emergency for the coronavirus
-- Relative strength in the industrials sector
-- Oil prices continued to fall amid weaker expectations for demand
WTI crude falls 2% on demand concerns
23-Jan-20 15:25 ET
Dow -20.22 at 29165.96, Nasdaq -18.48 at 9365.31, S&P +2.89 at 3324.64
[BRIEFING.COM] The S&P 500 currently trades higher by 0.1%, while the Dow trades lower by 0.1%.
One last look inside the S&P 500 sectors shows industrials (+1.0%), real estate (+0.8%), and utilities (+0.7%) outperforming, while health care (-0.7%) and communication services (-0.3%) underperform.
WTI crude fell $1.07 (-1.9%) to $55.61/bbl, although this settlement price was well above its intraday 3.4% decline.
Stock market sets new highs but closes flat
22-Jan-20 16:20 ET
Dow -9.77 at 29186.18, Nasdaq +12.96 at 9383.79, S&P +0.96 at 3321.75
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market hit new highs on Wednesday in an early advance led by IBM (IBM 143.89, +4.72, +3.4%) and the technology sector, but stocks steadily pulled back during the day. The S&P 500 (+0.03%) and Nasdaq Composite (+0.1%) eked out slim gains, while the Dow Jones Industrial Average (-0.03%) and Russell 2000 (-0.1%) dipped lower.
IBM beat earnings estimates and issued upside FY20 EPS guidance, but the resilience in Apple (AAPL 317.70, +1.13, +0.4%) and the semiconductor space should not be overlooked. Bloomberg reported that Apple will begin producing low-cost iPhones next month and asked Taiwan Semi (TSM 58.35, +0.11, +0.2%) to increase its chip supply to meet strong iPhone demand.
The S&P 500 information technology sector rose as much as 1.1% but ended the session up just 0.4%. This was still good for today's leadership position. The pullback presumably coincided with an underlying view that an overbought market had gotten too ahead of itself.
Losses were made most pronounced in the energy sector (-0.9%), which was hit by a 2.2% decline in WTI crude ($56.68, -1.28), and the industrials sector (-0.6%), which was dragged lower by another decline in Boeing (BA 309.00, -4.27, -1.4%). BA was downgraded to Hold from Buy at Vertical Research.
Sellers were unable to exert that much influence on the broader market, though. Factors that might have explained this included 1) better-than-expected existing home sales for December, 2) an assertion from JPMorgan Chase (JPM 136.68, -0.16, -0.1%) CEO Jamie Dimon that high stock prices are justified by the growing economy, and 3) actions taken by China to control the coronavirus.
Separately, Netflix (NFLX 326.00, -12.11, -3.6%), United Airlines (UAL 83.34, -2.45, -2.9%), and Johnson & Johnson (JNJ 148.25, -1.02, -0.7%) finished lower, as investors reacted negatively to their earnings reports. Tesla (TSLA 569.56, +22.36, +4.1%) rose as much as 8.6% after Wedbush raised its price target to $550 from $370, but gains were cut in half.
U.S. Treasuries finished little changed in a muted session. The 2-yr yield declined one basis point to 1.51%, and the 10-yr yield was unchanged at 1.77%. The U.S. Dollar Index finished flat at 97.52.
Reviewing Wednesday's economic data, which shed some light on the housing sector:
Existing home sales increased 3.6% m/m in December to a seasonally adjusted annual rate of 5.54 million units (Briefing.com consensus 5.42 million) from 5.35 million in November. Total sales were up 10.8% year-over-year.
The key takeaway from the report is that there are serious inventory constraints in the existing home sales market, which is driving up prices and underscoring the importance of mortgage rates staying low.
The FHFA Housing Price Index increased 0.2% in January after increasing 0.2% in December.
The weekly MBA Mortgage Applications declined 1.2% following a 30.2% surge in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report and the Conference Board's Leading Economic Index for December on Thursday.
Nasdaq Composite +4.6% YTD
S&P 500 +2.8% YTD
Dow Jones Industrial Average +2.3% YTD
Russell 2000 +1.0% YTD
Market Snapshot
Dow 29186.18 -9.77 (-0.03%)
Nasdaq 9383.79 +12.96 (0.14%)
SP 500 3321.75 +0.96 (0.03%)
10-yr Note +1/32 1.763
NYSE Adv 1424 Dec 1431 Vol 864.0 mln
Nasdaq Adv 1568 Dec 1595 Vol 2.7 bln
Industry Watch
Strong: Information Technology, Utilities
Weak: Energy, Industrials, Real Estate
Moving the Market
-- Stock market hit new highs in early action, but stocks lost steam throughout the day
-- Relative strength in the tech sector after IBM (IBM) provided positive earnings, guidance
-- Relative weakness in energy sector amid weaker oil prices
-- Better-than-expected existing homes sales report for December
Stock market closes lower on virus news, Boeing weakness
21-Jan-20 16:15 ET
Dow -152.06 at 29195.95, Nasdaq -18.14 at 9370.83, S&P -8.83 at 3320.79
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.3% on Tuesday, as headlines about the coronavirus outbreak helped provide a convenient excuse to take some profits, while a delay in Boeing's (BA 313.37, -10.78, -3.3%) 737 MAX timeline to mid-2020 further pressured the Dow Jones Industrial Average (-0.5%). The Nasdaq Composite lost 0.2%, and the Russell 2000 lost 0.8%.
Asian equities were hit the hardest on Tuesday, as the outbreak originated in China, while the initial selling in the U.S. stock market was modest. The virus, which can be transmitted between people and has no current vaccine, fostered a narrative that economic activity could be slowed down by people deciding to refrain from public spheres like travel and shopping.
Investors didn't appear too concerned about the outbreak, though, as the S&P 500 erased its losses, and the Nasdaq hit an intraday high, by the afternoon. The market, however, did reverse course on news of the first reported case of the coronavirus in the U.S., presumably feeding into the slower growth narrative that pulled the market from overbought territory.
Cyclical sectors were among today's laggards, particularly the S&P 500 energy (-1.9%), materials (-1.1%), and industrials (-1.1%) sectors. The latter was weighed by the disappointment in top-weighted Boeing. The rate-sensitive real estate (+1.1%) and utilities (+0.8%) sectors outperformed, as demand for Treasuries drove yields lower.
The 2-yr yield fell four basis points to 1.52%, and the 10-yr yield fell seven basis points to 1.77%. The U.S. Dollar Index finished flat at 97.58. WTI crude declined 0.5%, $0.30, to $58.25/bbl.
Other notable areas included the Dow Jones Transportation Average, which fell 1.8% amid weakness in the airline stocks, and the iShares U.S. Home Construction ETF (ITB 47.80, +0.60), which rose 1.3% on the idea that the lower Treasury yields will drive mortgage rates lower.
Separately, Tesla (TSLA 547.20, +36.70, +7.2%), Costco (COST 313.26, +8.58, +2.8%), Visa (V 207.29, +2.59, +1.3%), and Intel (INTC 60.55, +0.95, +1.6%) benefited from positive-minded analyst recommendations. Uber (UBER 37.60, +2.47, +7.0%) hit a five-month high after the company sold its food delivery business in India.
Investors did not receive any economic data on Tuesday. Looking ahead, investors will receive Existing Home Sales for December, the FHFA Housing Price index for January, and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +4.4% YTD
S&P 500 +2.8% YTD
Dow Jones Industrial Average +2.3% YTD
Russell 2000 +1.0% YTD
Market Snapshot
Dow 29195.95 -152.06 (-0.52%)
Nasdaq 9370.83 -18.14 (-0.19%)
SP 500 3320.79 -8.83 (-0.27%)
10-yr Note +5/32 1.770
NYSE Adv 1152 Dec 1743 Vol 1.1 bln
Nasdaq Adv 1235 Dec 1974 Vol 2.5 bln
Industry Watch
Strong: Real Estate, Utilities, Consumer Staples
Weak: Materials, Energy, Industrials
Moving the Market
-- Stock market closes lower on coronavirus outbreak headlines, Boeing (BA) weakness
-- Narrative that coronavirus will slow down economic activity; relative weakness in the transportation space
-- Boeing said it isn't expecting to get regulatory approval for 737 MAX until mid-2020
WTI crude posts modest loss
21-Jan-20 15:25 ET
Dow -134.60 at 29213.41, Nasdaq -11.13 at 9377.84, S&P -5.84 at 3323.78
[BRIEFING.COM] The S&P 500 continues to trade slightly lower by 0.2%, while the Russell 2000 underperforms with a 0.6% decline.
One last look inside the sector standings shows the energy (-1.6%), industrials (-1.0%), and materials (-1.0%) sectors down at least 1.0%, while the real estate (+1.0%) and utilities (+0.7%) sectors sport comfortable gains.
WTI crude settled down $0.30 (-0.5%) to $58.25/bbl amid general growth concerns pertaining to the coronavirus outbreak.
Wall Street extends rally on solid economic data
17-Jan-20 16:20 ET
Dow +50.46 at 29348.01, Nasdaq +31.81 at 9388.97, S&P +12.81 at 3329.62
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 advanced 0.4% on Friday, as upbeat economic data helped extend the market's record run. The Dow Jones Industrial Average (+0.2%) and Nasdaq Composite (+0.3%) also closed at new highs, while the Russell 2000 (-0.3%) finished lower.
Overall, it was a relatively subdued session that seemingly had the potential for even more gains. For instance, housing starts rose to their highest level in 13 years in December, China's industrial production rose more than expected in December, and a couple of influential hedge fund managers told CNBC they were bullish on stocks.
Buyers, however, appeared exhausted after another great week of gains. There were still more buyers than sellers given the amount of positive news in the market, as nine of the 11 S&P 500 sectors finished in the green. The communication services (+0.9%) and utilities (+0.8%) sectors outperformed, while the energy sector (-0.7%) underperformed.
The industrials sector (unch) also included its fair share of laggards. Boeing (BA 324.15, -7.85, -2.4%) extended losses on a report of another software issue, and several transportation stocks fell after issuing relatively disappointing earnings results and/or guidance.
Expeditors International (EXPD 76.82, -4.52, -5.6%), J.B. Hunt (JBHT 114.68, -5.08, -4.2%), and CSX (CSX 76.40, -0.34, -0.4%) let investors down, while KC Southern (KSU 166.52, +4.89, +3.0%) shareholders were able to look past its earnings miss.
Separately, Alphabet (GOOG 1480.39, +28.69, +2.0%) and Apple (AAPL 318.73, +3.49, +1.1%) benefited from a pair of positive analyst recommendations. UBS raised its GOOG price target to $1675 from $1460. Morgan Stanley raised its AAPL price target to $368 from $296.
U.S. Treasuries finished mixed amid some curve-steepening activity. The 2-yr yield declined one basis point to 1.56%, while the 10-yr yield increased three basis points to 1.84%. The U.S. Dollar Index increased 0.3% to 97.62. WTI crude increased 0.1% to $58.55/bbl.
Reviewing Friday's economic data:
Total housing starts surged 16.9% m/m in December to a seasonally adjusted annual rate of 1.608 million (Briefing.com consensus 1.380 million), driven by an 11.2% increase in single-family starts and a 30% increase in multi-unit starts. Building permits, meanwhile, declined 3.9% m/m to 1.416 million (Briefing.com consensus 1.460 million), with single-family permits down 0.5%.
The key takeaway from the report is the huge starts number and the recognition that the largest homebuilding region -- the South -- saw an impressive 11.3% increase in single-family starts. That's a good sign as it relates to potential supply coming online and it's good simply as a positive growth indicator.
Industrial production declined 0.3% in December (Briefing.com consensus +0.1%), pressured by a 5.6% decline in utilities output that stemmed from unseasonably warm weather. The capacity utilization rate fell to 77.0% from an upwardly revised 77.4% (from 77.3%) in November.
The key takeaway from the report is that manufacturing output increased 0.2% despite a large 4.6% drop in the output of motor vehicles and parts. Excluding the motor vehicle sector, factory output increased 0.5%.
The preliminary reading of the University of Michigan's Index of Consumer Sentiment for January declined to 99.1 (Briefing.com consensus 98.9) from 99.3 in November.
Job openings declined to 6.800 million from a revised 7.361 million (from 7.267 million) in November, according to the JOLTS report.
As a reminder, the market will be closed on Monday for Martin Luther King Jr. Day.
Nasdaq Composite +4.6% YTD
S&P 500 +3.1% YTD
Dow Jones Industrial Average +2.8% YTD
Russell 2000 +1.9% YTD
Market Snapshot
Dow 29348.01 +50.46 (0.17%)
Nasdaq 9388.97 +31.81 (0.34%)
SP 500 3329.62 +12.81 (0.39%)
10-yr Note -2/32 1.831
NYSE Adv 1458 Dec 1409 Vol 988.4 mln
Nasdaq Adv 1387 Dec 1751 Vol 2.3 bln
Industry Watch
Strong: Communication Services, Utilities
Weak: Energy, Industrials
Moving the Market
-- Stock market closes at fresh record highs on upbeat economic data
-- Housing starts rise more than expected in December, China reports better-than- expected industrial production for December
-- Relative weakness in the transportation space following earnings/guidance
WTI crude settles little changed
17-Jan-20 15:25 ET
Dow +7.39 at 29304.94, Nasdaq +7.16 at 9364.32, S&P +6.10 at 3322.91
[BRIEFING.COM] The S&P 500 continues to trade higher by 0.2%.
One last look at the S&P 500 sectors shows utilities (+0.7%) and communication services (+0.6%) continuing to outperform, while the energy (-0.8%) and industrials (-0.1%) sectors trade in the red. The energy sector is the only sector trading lower for the week with a 1.2% decline.
WTI crude increased $0.07 (+0.1%) to $58.55/bbl.
S&P 500 rallies past 3300 in risk-on session
16-Jan-20 16:15 ET
Dow +267.42 at 29297.55, Nasdaq +98.44 at 9357.16, S&P +27.52 at 3316.81
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 rose 0.8% on Thursday in a broad-based advance that carried the benchmark index past the 3300 level for the first time. The Dow Jones Industrial Average (+0.9%) and Nasdaq Composite (+1.1%) also closed at record highs, while the Russell 2000 outperformed with a 1.4% gain.
It was a day replete with good news that helped extend the market's bullish momentum and, in turn, bolster risk sentiment. Morgan Stanley (MS 56.44, +3.50, +6.6%) provided strong earnings results, retail sales increased 0.3% in December as expected, weekly jobless claims continued to reverse a modestly rising uptrend, and the USMCA deal was passed in the Senate.
All 11 S&P 500 sectors started and finished in the green, with the broader market rallying into the close. The information technology sector (+1.4%) provided the leadership amid strength in its top-weighted components and the semiconductor stocks, which got a boost from the positive earnings results from Taiwan Semiconductor (TSM 58.75, +0.36, +0.6%).
It didn't end there, though. Charles Schwab (SCHW 49.00, +1.88, +4.0%) beat earnings estimates, Signet Jewelers (SIG 30.13, +8.64, +40.2%) provided upbeat holiday sales results and comparable sales guidance, Spirit Airlines (SAVE 42.65, +2.97, +7.5%) provided upside unit revenue guidance, and XPO Logistics (XPO 95.35, +12.53, +15.1%) said it may sell or spin-off some of its business units.
Altogether, it was enough to subdue valuation concerns for at least one more day. Underlying expectations for positive earnings guidance, persistently low Treasury yields, and modest economic growth without Fed intervention were not meaningfully undermined in today's session.
Notable laggards included BNY Mellon (BK 46.72, -3.97, -7.8%), Tesla (TSLA 513.49, -5.01, -1.0%), PPG Industries (PPG 127.41, -3.33, -2.6%). BNY missed revenue estimates, Tesla was downgraded to Underweight from Equal-Weight at Morgan Stanley, and PPG issued disappointing quarterly results and guidance.
U.S. Treasuries finished on a lower note amid the risk-on mindset in equities. The 2-yr yield increased two basis points to 1.57%, and the 10-yr yield increased two basis points to 1.81%. The U.S. Dollar Index increased 0.1% to 97.30. WTI crude rose 1.1%, or $0.62, to $58.48/bbl.
Reviewing Thursday's economic data, which featured the Retail Sales report for December:
Retail sales increased 0.3% m/m in December following an upwardly revised 0.3% increase (from 0.2%) in November. Retail sales, excluding autos, jumped 0.7% (Briefing.com consensus +0.5%) after a downwardly revised unchanged reading (from 0.1%) in November.
The key takeaway from the report is that the December sales increases were broad based, with the exception of motor vehicles and parts dealers (-1.3%) and department stores (-0.8%), breathing life into the notion that the consumer remains a driving force of growth for the U.S. economy.
Initial claims for the week ending January 11 dropped by 10,000 to 204,000 (Briefing.com consensus 217,000). Continuing claims for the week ending January 4 decreased by 37,000 to 1.767 million.
The key takeaway from the report is that it reflects a tight labor market and has helped squelch a modestly rising uptrend in initial claims.
Import prices for December were up 0.3%. Excluding fuel, they were flat. Export prices were down 0.2%. Excluding agricultural products, they were down 0.1%.
The key takeaway from the report is that there were no inflation pressures embedded in the data. Nonfuel import prices were down 1.4% yr/yr while nonagricultural export prices were down 0.6%.
Total business inventories declined 0.2% month-over-month in November, as expected, following a downwardly revised 0.1% increase (from 0.2%) in October. Total business sales were up 0.7% following a downwardly revised 0.2% decline (from -0.1%) in October.
The key takeaway from the report is that the gap between inventory growth on a yr/yr basis (+2.8%) and sales growth (+1.0%) should help keep prices in check.
The Philadelphia Fed Index for January jumped to 17.0 (Briefing.com consensus 3.0) from the revised 2.4 reading in December (from 0.3).
The NAHB Housing Market Index for January declined to 75 (Briefing.com consensus 74) from 76 in December.
Looking ahead, investors will receive Housing Starts and Building Permits for December, Industrial Production and Capacity Utilization for December, and the preliminary University of Michigan Index of Consumer Sentiment for January on Friday.
Nasdaq Composite +4.3% YTD
S&P 500 +2.7% YTD
Dow Jones Industrial Average +2.7% YTD
Russell 2000 +2.2% YTD
Market Snapshot
Dow 29297.55 +267.42 (0.92%)
Nasdaq 9357.16 +98.44 (1.06%)
SP 500 3316.81 +27.52 (0.84%)
10-yr Note -2/32 1.805
NYSE Adv 2003 Dec 846 Vol 846.2 mln
Nasdaq Adv 2388 Dec 796 Vol 2.4 bln
Industry Watch
Strong: Information Technology, Industrials, Consumer Discretionary
Weak: Energy
Moving the Market
-- S&P 500 rallies past 3300 in risk-on session
-- Broad-based advance led by the technology stocks
-- Morgan Stanley (MS) rises on impressive quarterly results
-- Upbeat economic data, including an expected 0.3% increase in retail sales for December
WTI crude gains 1% in risk-on session
16-Jan-20 15:25 ET
Dow +209.20 at 29239.33, Nasdaq +73.29 at 9332.01, S&P +20.70 at 3309.99
[BRIEFING.COM] The S&P 500 is up 0.9% and is on pace to close at a record high.
One last look at the S&P 500 sectors shows all 11 sectors still trading in the green. The information technology sector (+1.1%) remains on top, while the energy sector (+0.2%) has fallen back to the bottom of the standings.
WTI crude rose $0.62 (+1.1%) to $58.48/bbl.
Dow closes at record high, but loses steam after Phase One signing
15-Jan-20 16:20 ET
Dow +90.55 at 29030.13, Nasdaq +7.37 at 9258.72, S&P +6.14 at 3289.29
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market set new highs in the moments leading up to signing of the Phase One trade deal on Wednesday, but a fade in momentum left the S&P 500 up just 0.2% for the session. The Dow Jones Industrial Average (+0.3%) closed at a record high, the Nasdaq Composite increased 0.1%, and Russell 2000 increased 0.4%.
The USTR released the full text of the agreement after the signing, but the lack of surprising details wasn't conducive for a risk-on mindset, as the news was already priced in. Investors didn't necessarily sell the event, but a cautious view that the stock market is due for a pullback contributed to a defensive mindset.
The defensive-oriented S&P 500 utilities (+1.4%), health care (+0.9%), real estate (+0.8%), and consumer staples (+0.7%) sectors were today's best-performing sectors. Conversely, the energy (-0.7%), financials (-0.6%), and consumer discretionary (-0.3%) sectors finished in the red.
The financials sector was pressured by a modest decline in Treasury yields and by the negative reactions to earnings results from Bank of America (BAC 34.67, -0.65, -1.8%), U.S. Bancorp (USB 54.97, -1.62, -2.9%), and Goldman Sachs (GS 245.21, -0.45, -0.2%). BlackRock (BLK 530.26, +11.94, +2.3%) pleased investors with its results.
Target (TGT 117.00, -8.26, -6.6%) reported relatively disappointing holiday sales results due to softer-than-expected performance in categories such as electronics, toys, and portions of its home businesses. On a related note, the Fed's Beige Book noted that consumer spending expanded at a moderate pace during the last six weeks of 2019.
The Philadelphia Semiconductor Index fell 1.2% amid some profit-taking interest, with shares of Taiwan Semi (TSM 58.39, -1.93, -3.2%) pulling back from record territory in front of its earnings report tomorrow morning.
U.S. Treasuries ended the session on a higher note as part of a defensive-oriented trade. The 2-yr yield and the 10-yr yield declined three basis points each to 1.55% and 1.79%, respectively. The U.S. Dollar Index declined 0.2% to 97.23. WTI crude declined 0.8%, or $0.44, to $57.86/bbl.
Reviewing Wednesday's economic data:
The Producer Price Index for final demand increased 0.1% (Briefing.com consensus +0.2%) and so did the Producer Price index for final demand, excluding food and energy (Briefing.com consensus +0.2%). Those changes left the yr/yr increases at 1.3% and 1.1%, respectively, versus 1.1% and 1.3% in November.
The key takeaway from the report is that it isn't going to convince the Federal Reserve that it needs to raise its policy rate soon.
The Mortgage Bankers Association reported a 30.2% surge in weekly mortgage applications, which included a 16% increase in purchase application volume.
The Empire State Manufacturing Survey for January increased to 4.8 (Briefing.com consensus 2.8) from the prior month's reading of 3.5.
The Federal Reserve's Beige Book for December noted that economic activity during the last six weeks of 2019 continued expanding at a modest pace.
Looking ahead, investors will receive the following reports on Thursday: Retail Sales for December, the Philadelphia Fed Index for January, the NAHB Housing Market Index for January, Business Inventories for November, Import and Export Prices for December, and weekly Initial and Continuing Claims.
Nasdaq Composite +3.2% YTD
S&P 500 +1.8% YTD
Dow Jones Industrial Average +1.7% YTD
Russell 2000 +0.8% YTD
Market Snapshot
Dow 29030.13 +90.55 (0.31%)
Nasdaq 9258.72 +7.37 (0.08%)
SP 500 3289.29 +6.14 (0.19%)
10-yr Note +3/32 1.784
NYSE Adv 1578 Dec 1262 Vol 871.8 mln
Nasdaq Adv 1784 Dec 1378 Vol 2.6 bln
Industry Watch
Strong: Real Estate, Health Care, Utilities
Weak: Financials, Energy
Moving the Market
-- Stock market hits new intraday highs, but currently trades near its lows
-- U.S. and China sign Phase One trade deal
-- Relative strength in the defensive-oriented sectors; weakness in financials sector
-- Producer prices barely increase in December, mortgage applications spike 30%
WTI crude extends losses
15-Jan-20 15:25 ET
Dow +80.50 at 29020.08, Nasdaq -0.68 at 9250.67, S&P +2.49 at 3285.64
[BRIEFING.COM] The S&P 500 continues to trade in the green with a 0.1% gain, although it is trading near session lows.
One last look inside the S&P 500 shows a defensive-oriented tilt, as the utilities (+1.3%), real estate (+0.8%), health care (+0.7%), and consumer staples (+0.5%) sectors outperform the broader market. The energy (-0.8%) and financaisl (-0.8%) sectors underperform.
WTI crude settled down $0.44 (-0.8%) to $57.86/bbl. It is now down 5% this year.
Stock market closes little changed after setting record highs
14-Jan-20 16:15 ET
Dow +32.62 at 28939.58, Nasdaq -22.60 at 9251.35, S&P -4.98 at 3283.15
https://www.briefing.com/stock-market-update
[BRIEFING.COM] Each of the large-cap indices set new intraday highs on Tuesday, but only the Dow Jones Industrial Average (+0.1%) managed to finish higher. The S&P 500 and Nasdaq Composite both declined 0.2%, while the small-cap Russell 2000 rose 0.4%.
The day began with JPMorgan Chase (JPM 138.80, +1.60, +1.2%), Citigroup (C 81.91, +1.26, +1.6%), and Delta Air Lines (DAL 61.45, +1.96, +3.3%) providing investors with better-than-expected earnings results, while Wells Fargo (WFC 49.32, -2.79, -5.4%) missed top and bottom-line estimates due to higher expenses.
The results contributed to noticeable price changes in the stocks, but the price action in the broader market was relatively tight-ranged amid some buyer exhaustion. At its high, the S&P 500 was up just 0.2%, and it was down just 0.3% after Bloomberg reported that existing tariffs on Chinese imports will remain for at least ten months.
From a sector standpoint, the S&P 500 information technology (-0.6%) and real estate (-0.5%) sectors were today's laggards, while the health care (+0.5%) and utilities (+0.3%) sectors finished with modest gains. Apple (AAPL 312.68, -4.28, -1.4%) weighed on the tech sector after shares were downgraded to Underweight from Neutral at Atlantic Equities.
Back to the trade news, selling was modest, as there was never any indication the U.S. would remove tariffs with the signing of a Phase One deal. The report may have been a good excuse to sell a market that is overbought on a short-term basis, but buyers remained a resilient bunch.
In other corporate news, Boston Scientific (BSX 42.66, -2.81, -6.2%) issued downside revenue guidance. A recent study indicated that Walt Disney's (DIS 145.20, +1.32, +0.9%) streaming app may have been downloaded more than 40 million times. Visa (V 196.05, +0.72, +0.4%) agreed to acquire Plaid for $5.3 billion.
U.S. Treasuries finished the quiet session on a mostly higher note. The 2-yr yield was unchanged at 1.58%, and the 10-yr yield declined three basis points to 1.82%. The U.S. Dollar Index finished flat at 97.38. WTI crude increased 0.3%, or $0.18, to $58.30/bbl.
Reviewing Tuesday's economic data, which included the Consumer Price Index for December and the Small Business Optimism Index for December:
The Consumer Price Index for December brought good news in relative terms, as there weren't any overshoots compared to expectations. Total CPI was up 0.2% m/m, as expected, while core CPI, which excludes food and energy, was up a softer-than-expected 0.1% (Briefing.com consensus +0.2%).
The key takeaway from the report is that it won't cause any immediate re-think of the Fed's policy position. Core CPI has been up 2.3% yr/yr for three straight months, so the inflation rate isn't running away from the Fed, which seems to have adopted a willingness to let inflation run above its longer-run goal for a bit before moving on rates; moreover, the CPI data takes a backseat to the PCE price data as the Fed's preferred inflation gauge, and the latest report showed core-PCE inflation up just 1.6% yr/yr.
The NFIB Small Business Optimism Index declined to 102.7 from 104.7.
Looking ahead, investors will receive the Producer Price Index for December, the Empire State Manufacturing Survey for January, the Fed's Beige Book, and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +3.1% YTD
S&P 500 +1.6% YTD
Dow Jones Industrial Average +1.4% YTD
Russell 2000 +0.4% YTD
Market Snapshot
Dow 28939.58 +32.62 (0.11%)
Nasdaq 9251.35 -22.60 (-0.24%)
SP 500 3283.15 -4.98 (-0.15%)
10-yr Note +3/32 1.815
NYSE Adv 1655 Dec 1227 Vol 915.9 mln
Nasdaq Adv 1609 Dec 1578 Vol 2.5 bln
Industry Watch
Strong: Health Care, Utilities
Weak: Information Technology, Real Estate
Moving the Market
-- Stock market sets new intraday highs, but gives back gains during the afternoon
-- JPMorgan Chase (JPM), Citigroup (C), and Delta Air Lines (DAL) gain on positive earnings results
-- Wells Fargo (WFC) disappoints
-- The U.S. will reportedly keep existing tariffs on Chinese imports for at least ten months
WTI crude posts modest gain
14-Jan-20 15:25 ET
Dow +14.84 at 28921.80, Nasdaq -21.33 at 9252.62, S&P -6.55 at 3281.58
[BRIEFING.COM] The S&P 500 is down 0.2%, the Nasdaq is down 0.2%, and the Dow is up 0.1%. Any positive finish for the major indices would denote a record close.
One last look at the S&P 500 sectors shows nine groups trading lower, with real estate (-0.8%) leading the decline. The industrials (+0.1%) and health care (+0.2%) sectors hold slim gains.
WTI crude settled up $0.18 (+0.3%) to $58.30/bbl.
FedEx climbs on reports it can resume shipping for Amazon
S&P 500 and Nasdaq close at record highs in front of earnings season
13-Jan-20 16:15 ET
Dow +83.28 at 28906.96, Nasdaq +95.07 at 9273.95, S&P +22.78 at 3288.13
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.7%) and Nasdaq Composite (+1.0%) closed at record highs on Monday in a continuation trade of the market's bullish momentum. The Dow Jones Industrial Average increased 0.3%, and the Russell 2000 increased 0.7%.
Today's advance could be attributed to several factors: 1) the positive price action buoying sentiment, 2) expectations that the upcoming earnings season will include reassuring guidance, 3) news the U.S. will remove China from its currency manipulator list, thereby improving trade relations and possibly economic growth prospects, and 4) little negative news to derail sentiment.
In turn, ten of the 11 S&P 500 sectors pushed higher, with leadership coming from the materials (+1.4%), information technology (+1.3%), and real estate (+1.2%) sectors. Apple (AAPL 316.96, +6.63, +2.1%) remained an influential force after its price target was raised to $375 from $300 at D.A. Davidson.
High-growth stocks remained in favor, too, particularly Tesla (TSLA 524.86, +46.71, +9.8%), lululemon athletica (LULU 245.18, +10.34, +4.4%), and Beyond Meat (BYND 114.34, +18.27, +19.0%). Tesla had its price target raised to $612 from $385 at Oppenheimer. Lululemon raised its Q4 EPS, revenue, and comparable sales guidance.
The health care sector (-0.4%) was the lone holdout amid disappointing guidance from Abiomed (ABMD 168.10, -20.96, -11.1%), weakness in the insurance stocks after Senator Bernie Sanders (I-VT) took the lead in the latest poll in Iowa, and a relatively quiet first day at the JPMorgan Healthcare Conference.
In M&A activity, Hexcel (HXL 79.89, +6.98, +9.6%) and Woodward (WWD 127.84, +5.88, +4.8%) agreed to merge in a $6.4 billion deal. The bidding war for Anixter (AXE 98.33, -0.46, -0.5%) finally ended after the company agreed to be acquired by Wesco (WCC 56.43, -1.71, -2.9%) in a $4.5 billion deal.
U.S. Treasuries finished slightly lower in a tight-ranged session. The 2-yr yield and the 10-yr yield increased two basis points each to 1.58% and 1.85%, respectively. The U.S. Dollar Index finished flat at 97.36. WTI crude fell 1.5%, or $0.87, to $58.12/bbl.
Monday's economic data was limited to the Treasury Budget for December, which showed a deficit of $13.3 billion (Briefing.com consensus -$15.0 billion) versus a deficit of $13.5 billion in the same period a year ago. The budget deficit over the last 12 months is $1.022 trillion versus $1.022 trillion in November.
Looking ahead, investors will receive the Consumer Price Index for December and the NFIB Small Business Optimism Index for December on Tuesday.
Nasdaq Composite +3.4% YTD
S&P 500 +1.8% YTD
Dow Jones Industrial Average +1.3% YTD
Russell 2000 +0.1% YTD
Market Snapshot
Dow 28906.96 +83.28 (0.29%)
Nasdaq 9273.95 +95.07 (1.04%)
SP 500 3288.13 +22.78 (0.70%)
10-yr Note -2/32 1.843
NYSE Adv 2004 Dec 842 Vol 834.4 mln
Nasdaq Adv 2036 Dec 1161 Vol 2.4 bln
Industry Watch
Strong: Information Technology, Materials, Real Estate
Weak: Health Care, Energy
Moving the Market
-- S&P 500 and Nasdaq close at record highs
-- Bullish momentum persists amid high expectations for earnings season, little negative news to derail sentiment
-- U.S. will remove China from its currency manipulator list
WTI crude extends losses
13-Jan-20 15:25 ET
Dow +46.53 at 28870.21, Nasdaq +76.98 at 9255.86, S&P +17.79 at 3283.14
[BRIEFING.COM] The S&P 500 is up 0.5% and is on pace to end the session at a record high.
One last look at the S&P 500 sectors shows the materials (+1.2%) and information technology (+1.1%) sectors up more than 1.0%. The health care sector (-0.4%) continues to underperform following disappointing guidance from Abiomed (ABMD 168.40, -20.59, -10.9%) and a relatively lackluster day at the JPMorgan Chase Healthcare Conference.
WTI crude fell $0.87 (-1.5%) to $58.12/bbl to extend its recent losses amid the ease in geopolitical tensions.
Investor optimism remains high
13-Jan-20 14:55 ET
Dow +58.40 at 28882.08, Nasdaq +80.95 at 9259.83, S&P +18.63 at 3283.98
[BRIEFING.COM] The S&P 500 continues to trade near session highs with gain of 0.6%. The Russell 2000 is also up 0.6%.
Investor sentiment remains buoyed by the bullish momentum in the stock market and a lack of meaningful negative news today. Expectations for a rebound in fourth-quarter earnings are relatively high, trade optimism remains upbeat, central banks are on the side of equities, and geopolitical tensions with Iran appear to be subsiding.
Looking ahead, JPMorgan Chase (JPM 136.70, +0.63, +0.5%), Wells Fargo (WFC 52.09, -0.42, -0.8%), and Citigroup (C 80.14, +0.88, +1.1%) will kick off the Q4 earnings-reporting season when they report earnings results tomorrow morning.
Dow hits 29,000 before succumbing to profit taking
10-Jan-20 16:15 ET
Dow -133.13 at 28823.68, Nasdaq -24.57 at 9178.88, S&P -9.35 at 3265.35
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market hit new highs on Friday but succumbed to profit taking late in the session, as the December employment report failed to generate much excitement. The Dow Jones Industrial Average (-0.5%) hit 29,000 for the first time early in the session before finishing slightly lower with the S&P 500 (-0.3%), Nasdaq Composite (-0.5%), and Russell 2000 (-0.4%).
Briefly, nonfarm payrolls grew by 145,000 (Briefing.com consensus 160,000), average hourly earnings increased just 0.1% (Briefing.com consensus +0.3%), and the average workweek was reported at 34.3 hours (Briefing.com consensus 34.4). Overall it wasn't a bad report, but the softer-than-expected numbers likely tempered growth expectations for the fourth quarter.
In turn, the momentum that carried the market to record highs gradually transitioned to overdue selling, as cyclical sectors led the decline and selling picked up into the close. The S&P 500 financials (-0.8%), industrials (-0.7%), energy (-0.6%), and consumer discretionary (-0.5%) sectors were today's laggards.
The defensive-oriented real estate (+1.0%), utilities (+0.2%), and health care (+0.04%) sector finished higher.
Boeing (BA 329.92, -6.42, -1.9%) shares were pressured after disparaging employee memos about the 737 MAX situation were released. On a related, Boeing supplier Spirit Aerosystems (SPR 69.70, -3.09, -4.3%) said it will eliminate 2,800 jobs.
Six Flags (SIX 35.96, -7.80, -17.8%), KB Home (KBH 35.86, -1.20, -3.2%), and GrubHub (GRUB 52.38, -3.35, -6.0%) were other negative story stocks after providing disappointing updates. Six Flags issued downside Q4 guidance, KB Home missed revenue estimates, and GrubHub denied reports that it was seeking a sale.
In M&A activity, Dermira (DERM 19.16, +0.82, +4.5%) agreed to be acquired by Eli Lilly (LLY 138.00, +2.08, +1.5%) for $18.75 per share or $1.1 billion in cash.
U.S. Treasuries ended the session on a higher note as part of a defensive-oriented trade. The 2-yr yield declined one basis point to 1.56%, and the 10-yr yield declined three basis points to 1.83%. The U.S. Dollar Index declined 0.1% to 97.36. WTI crude fell 0.9%, or $0.55, to $58.99/bbl.
Reviewing Friday's economic data, which featured the Employment Situation Report for December:
December nonfarm payrolls increased by 145,000 (Briefing.com consensus 160,000), private sector payrolls increased by 139,000 (Briefing.com consensus 157,000), the unemployment rate was 3.5% (Briefing.com consensus 3.5%), and average hourly earnings were up 0.1% (Briefing.com consensus +0.3%).
The key takeaway from the report, which included updates to the seasonal adjustment factors for the labor force series derived from the household survey, was that average hourly earnings and the average workweek were both weaker than expected. That may temper any inflation concerns, but at the same time it is apt to temper consumer spending activity and overall GDP growth expectations for the fourth quarter.
Wholesale inventories decreased 0.1% m/m in November (Briefing.com consensus +0.2%) after increasing 0.1% in October. Wholesale sales surged 1.5% after declining 0.9% in October.
The key takeaway from the report is that sales activity was strong in November, but it will still prove difficult for wholesalers to gain pricing power given that inventory growth remains well ahead of sales growth on a yr/yr basis.
Investors will not receive any notable economic data on Monday.
Nasdaq Composite +2.3% YTD
S&P 500 +1.1% YTD
Dow Jones Industrial Average +1.0% YTD
Russell 2000 -0.7% YTD
Market Snapshot
Dow 28823.68 -133.13 (-0.46%)
Nasdaq 9178.88 -24.57 (-0.27%)
SP 500 3265.35 -9.35 (-0.29%)
10-yr Note +4/32 1.819
NYSE Adv 1351 Dec 1517 Vol 778.6 mln
Nasdaq Adv 1407 Dec 1771 Vol 2.5 bln
Industry Watch
Strong: Real Estate, Utilities, Health Care
Weak: Financials, Industrials, Energy
Moving the Market
-- Stock market closes lower in profit-taking trade
-- Softer-than-expected December employment report
-- Relative strength in the defensive-oriented sectors; weakness in the cyclical sectors
WTI crude extends losses
10-Jan-20 15:25 ET
Dow -104.58 at 28852.23, Nasdaq -21.05 at 9182.40, S&P -6.98 at 3267.72
[BRIEFING.COM] The S&P 500 is down 0.3% but is still on pace to end the week in positive territory. It's up 1.0% for the week.
One last look at the S&P 500 sectors continues to show a defensive tilt, with the real estate (+0.9%), utilities (+0.3%), and health care (+0.1%) sectors up in the green. The cyclical financials (-0.8%), industrials (-0.6%), and energy (-0.5%) sectors underperform.
WTI crude futures settled down $0.55 (-0.9%) to $58.99/bbl.
S&P 500, Nasdaq hit new highs in relief rally
08-Jan-20 16:15 ET
Dow +161.41 at 28745.00, Nasdaq +60.66 at 9129.27, S&P +15.87 at 3253.05
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.5%) set a new intraday high on Wednesday, as investors were relieved to hear that the situation in Iran may not escalate militarily beyond the actions taken by Iran last night. The Nasdaq Composite (+0.7%) closed at a record high, the Dow Jones Industrial Average gained 0.6%, and the Russell 2000 gained 0.3%. Stocks did fade into the close, though.
Iran fired more than a dozen ballistic missiles against U.S. and coalition forces in Iraq, which immediately sent equity futures down more than 1.5%. The reaction was short-lived upon details that it resulted in no American casualties and Tehran said it did not seek escalation or war.
As stocks wavered with modest gains after the open, President Trump told the nation in a press conference that he will be imposing additional sanctions on Iran, implicating that economic countermeasures will be favored over military ones. A mostly broad-based rally ensued, with nine of the 11 S&P 500 sectors finishing with gains.
The information technology (+1.0%) and communication services (+0.7%) sectors outperformed, while the energy sector (-1.7%) fell behind amid a retreat in oil prices ($59.62, -3.06, -4.9%). WTI crude futures dropped below $60/bbl following bearish inventory data and receding concerns about production disruptions.
Stock laggards included Boeing (BA 331.37, -5.91, -1.8%) after a 737-800 jetliner crashed shortly after takeoff in Tehran, killing all 176 passengers on board, and Walgreens Boots Alliance (WBA 55.83, -3.46, -5.8%) after it missed earnings estimates.
Positive corporate news came out of Macy's (M 18.10, +0.43, +2.4%), which reported better than feared holiday sales, and Constellation Brands (STZ 190.29, +6.69, +3.6%), which beat top and bottom-line estimates.
Shares of GrubHub (GRUB 54.75, +6.12, +12.6%) climbed nearly 13% after The Wall Street Journal reported the company is pursuing strategic options, including a possible sale.
U.S. Treasuries declined alongside the advance in equities, driving yields higher across the curve. The 2-yr yield rose four basis points to 1.58%, and the 10-yr yield rose five basis points to 1.87%. The U.S. Dollar Index increased 0.3% to 97.30. Gold futures fell 0.9% to $1560.50/ozt.
Reviewing Wednesday's economic data, which included the ADP Employment Change Report for December and the Consumer Credit report for November:
The ADP Employment Change Report showed an estimated 202,000 positions were added to private sector payrolls in December (Briefing.com consensus 155,000) on top of an upwardly revised 124,000 (from 67,000) in November.
Consumer credit increased by $12.5 bln in November (Briefing.com consensus $17.5 bln) after increasing by $18.9 bln in October.
The key takeaway from the report is that the November increase was driven entirely by nonrevolving credit.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report on Thursday.
Nasdaq Composite +1.8% YTD
S&P 500 +0.7% YTD
Dow Jones Industrial Average +0.7% YTD
Russell 2000 -0.3% YTD
Market Snapshot
Dow 28745.00 +161.41 (0.56%)
Nasdaq 9129.27 +60.66 (0.67%)
SP 500 3253.05 +15.87 (0.49%)
10-yr Note -26/32 1.869
NYSE Adv 1630 Dec 1189 Vol 896.0 mln
Nasdaq Adv 1857 Dec 1328 Vol 2.4 bln
Industry Watch
Strong: Information Technology, Communication Services
Weak: Energy, Utilities
Moving the Market
-- S&P 500, Nasdaq set new highs in relief trade
-- Iran's retaliation caused no American casualties and President Trump implicated economic countermeasures over military ones
-- Relative weakness in energy stocks amid 5% drop in the price of oil
WTI crude drops 5%
08-Jan-20 15:30 ET
Dow +277.04 at 28860.63, Nasdaq +99.58 at 9168.19, S&P +29.70 at 3266.88
[BRIEFING.COM] The S&P 500 is trading at session highs with a gain of 0.9%. The Russell 2000 is up 0.6%.
One last look at the S&P 500 sectors shows ten of the 11 sectors trading with gains. Information technology (+1.5%), communication services (+1.1%), health care (+1.1%), and financials (+1.0%) are setting the pace, while the energy sector (-1.4%) remains the lone sector trading lower.
WTI crude dropped $3.06 (-4.9%) to $59.62/bbl on receding concerns about disruptions to production and bearish inventory data.
S&P 500 closes slightly lower, semiconductors gain
07-Jan-20 16:15 ET
Dow -119.70 at 28583.59, Nasdaq -2.88 at 9068.61, S&P -9.10 at 3237.18
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 wavered with modest losses on Tuesday, losing 0.3% as the current geopolitical uncertainty helped restrain risk sentiment. The Dow Jones Industrial Average (-0.4%) and Russell 2000 (-0.3%) posted comparable declines, while the Nasdaq Composite (unch) fared better amid strength in the semiconductor space.
Iran stepped up its retaliatory threats against the U.S., but the lack of follow-through reassured investors that the situation currently presents little threat to the U.S. economy. Similarly, a pullback in oil prices ($62.68/bbl, -0.58, -0.9%) reflected skepticism that the situation would meaningfully disrupt production.
Within the stock market, all 11 S&P 500 sectors still finished lower in a lackluster session. The real estate sector (-1.2%) was today's weakest performer, followed by the consumer staples (-0.7%) and financials (-0.7%) sectors. A fade into the close pushed the communication services (-0.04%), information technology (-0.1%), and industrials (-0.1%) sectors into negative territory.
Semiconductor stocks were among today's strongest performers after Microchip (MCHP 110.69, +6.96, +6.7%) raised its Q3 revenue guidance and Micron (MU 58.27, +4.71, +8.8%) was upgraded to Outperform from Market Perform at Cowen. The Philadelphia Semiconductor Index rose 1.8%.
Other notable gainers included Apache (APA 32.51, +6.87, +26.8%) after it announced a significant oil discovery off the shore of Suriname and Tesla (TSLA 469.06, +17.52, +3.9%) after it officially opened its Gigafactory 3 in Shanghai.
U.S. Treasuries finished the tight-ranged session little changed. The 2-yr yield remained at 1.54%, the 10-yr yield increased two basis points to 1.83%. The U.S. Dollar Index increased 0.4% to 97.02.
Reviewing Tuesday's economic data, which included the ISM Non-Manufacturing Index for December, the Trade Balance Report for November, and the Factory Orders report for November:
The ISM Non-Manufacturing Index for December registered a 55.0% reading (Briefing.com consensus 54.3%), up from 53.9% in November and the fastest pace since August 2019.
The key takeaway from the report is that it is not as encouraging as it appears at first blush. The pace of new orders, new export orders, and employment all slowed; meanwhile, the backlog of orders contracted at a faster pace than November.
Factory Orders declined 0.7% m/m in November (Briefing.com consensus -0.8%) following a downwardly revised 0.2% increase (from 0.3%) in October. Shipments were up 0.3% following a 0.1% increase in October.
The key takeaway from the report is that it reflects the soft conditions for the manufacturing sector. On a year-to-date basis, orders for durable goods were down 1.3% not seasonally adjusted while orders for nondurable goods were down 0.1%.
The trade deficit narrowed to $43.1 billion in November (Briefing.com consensus -$43.5 billion) from an upwardly revised $46.9 billion (from -$47.2 bln) in October.
The key takeaway from the report is that the real trade deficit of $75.25 billion left the fourth quarter average 9% below the third quarter average, which will be a positive input for Q4 GDP growth forecasts.
Looking ahead, investors will receive the ADP Employment Change Report for December, the Consumer Credit Report for November, and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +1.1% YTD
S&P 500 +0.2% YTD
Dow Jones Industrial Average +0.2% YTD
Russell 2000 -0.6% YTD
Market Snapshot
Dow 28583.59 -119.70 (-0.42%)
Nasdaq 9068.61 -2.88 (-0.03%)
SP 500 3237.18 -9.10 (-0.28%)
10-yr Note -2/32 1.826
NYSE Adv 1256 Dec 1624 Vol 792.2 mln
Nasdaq Adv 1449 Dec 1698 Vol 2.8 bln
Industry Watch
Strong: Communication Services, Information Technology
Weak: Real Estate, Consumer Staples, Financials
Moving the Market
-- Stock market closes slightly lower amid lingering geopolitical uncertainty
-- Semiconductor stocks outperformed
-- Oil prices pulled back
WTI crude gives back nearly 1%
07-Jan-20 15:30 ET
Dow -69.64 at 28633.65, Nasdaq +13.19 at 9084.68, S&P -3.75 at 3242.53
[BRIEFING.COM] The S&P 500 currently trades lower by 0.1%, while the Russell 2000 trades lower by 0.3%.
One last look inside the S&P 500 shows the real estate sector (-1.1%) down more than 1.0%, while the materials sector (+0.5%) is up at least 0.5%. The Philadelphia Semiconductor Index remains today's strongest-performing group with a gain of 2.1%.
WTI crude settled down $0.58 (-0.9%) to $62.68/bbl.
Stocks close at session highs, investors look past Middle East angst
06-Jan-20 16:20 ET
Dow +68.50 at 28703.29, Nasdaq +50.70 at 9071.49, S&P +11.43 at 3246.28
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined as much as 0.6% shortly after Monday's open as tensions escalated in the Middle East, but a rebound led by mega-cap technology stocks helped the benchmark index close at session highs with a 0.4% gain. The Dow Jones Industrial Average gained 0.2%, the Nasdaq Composite gained 0.6%, and the Russell 2000 gained 0.1%.
Rhetoric heated up between the U.S. and Iran over the weekend following Friday's deadly airstrike, but investors viewed the current geopolitical angst as mostly inconsequential for the economy and the earnings prospects of U.S. companies. Supporting this view was the rebound in stocks, the fade in oil prices ($63.26, +0.23, +0.4%), and the sharp reversal in the CBOE Volatility Index (13.89, -0.13, -0.9%).
The S&P 500 communication services sector (+1.2%) was today's sector leader, largely due to the 2.5% gain in shares of Alphabet (GOOG 1394.21, +33.55) after the stock was upgraded to Buy from Hold at Pivotal Research Group.
Fellow tech giants Facebook (FB 212.60, +3.93, +1.9%), Amazon (AMZN 1902.88, +27.91, +1.5%), and Apple (AAPL 299.80, +2.37, +0.8%) also provided influential support for the broader market.
Conversely, the S&P 500 materials (-0.5%), financials (-0.1%), and industrials (-0.03%) sectors finished with modest losses, while the Philadelphia Semiconductor Index (-1.0%) succumbed to some profit-taking interest.
Separately, shares of Salesforce (CRM 173.45, +7.28, +4.4%) hit a new all-time high after the stock was upgraded to Top Pick from Outperform at RBC Capital Mkts. Shares of CrowdStrike (CRWD 55.11, +4.36, +8.6%) climbed nearly 9% as part of a cyber-security play against possible hacking threats from Iran.
U.S. Treasuries finished the session on a lower note, as investors bought the dip in equities. The 2-yr yield increased three basis points to 1.54%, and the 10-yr yield increased two basis points to 1.81%. The U.S. Dollar Index declined 0.2% to 96.66.
Investors did not receive any notable economic data on Monday. The ISM Non-Manufacturing Index for December, the Trade Balance Report for November, and the Factory Orders report for November will be released on Tuesday.
Nasdaq Composite +1.1% YTD
Dow Jones Industrial Average +0.6% YTD
S&P 500 +0.5% YTD
Russell 2000 -0.3% YTD
Market Snapshot
Dow 28703.29 +68.50 (0.24%)
Nasdaq 9071.49 +50.70 (0.56%)
SP 500 3246.28 +11.43 (0.35%)
10-yr Note -1/32 1.804
NYSE Adv 1512 Dec 1313 Vol 978.4 mln
Nasdaq Adv 1685 Dec 1497 Vol 2.6 bln
Industry Watch
Strong: Communication Services, Energy
Weak: Financials, Industrials
Moving the Market
-- Stocks stage intraday rebound, as investors brush aside geopolitical uncertainty
-- Alphabet (GOOG) gains on analyst upgrade
-- Relative weakness in the financials sector
WTI crude posts small gain
06-Jan-20 15:25 ET
Dow +0.82 at 28635.61, Nasdaq +33.66 at 9054.45, S&P +6.23 at 3241.08
[BRIEFING.COM] The S&P 500 is trading near session highs with a gain of 0.2%. The Russell 2000 is also up 0.2%.
One last look inside the S&P 500 shows eight sectors trading higher and three sectors trading lower. The energy (+1.2%) and communication services (+1.0%) sectors are up at least 1.0%, while the industrials (-0.5%), financials (-0.4%), and materials (-0.4%) sectors hold modest losses.
WTI crude settled the session $0.23 higher (+0.4%) to $63.26, although the commodity was up as much as 2.7% in the session.
Stocks retreat after airstrike kills top Iranian military leader
03-Jan-20 16:15 ET
Dow -233.92 at 28634.79, Nasdaq -71.42 at 9020.79, S&P -23.00 at 3234.85
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.7% on Friday after a U.S. airstrike killed Iran's top military commander, General Suleimani, prompting retaliatory threats from Iran and some profit taking in the stock market. The Dow Jones Industrial Average lost 0.8%, the Nasdaq Composite lost 0.8%, and the Russell 2000 lost 0.4%.
President Trump said the U.S. was not trying to start a war or seek regime change in Iran, but the situation did provide an excuse for investors to reduce exposure from a market trading at record highs. In addition, the weakest reading for the ISM Manufacturing Index since June 2009, which declined to 47.2% in December (Briefing.com consensus 49.0%) from 48.1% in November, also helped restrain risk sentiment.
Cyclical sectors were among today's laggards, with the S&P 500 materials (-1.6%), financials (-1.1%), and information technology (-1.1%) sectors leading the retreat. Conversely, the rate-sensitive real estate (+0.8%) and utilities (+0.1%) sectors benefited from the defensive positioning in Treasuries that drove yields lower.
The 2-yr yield fell six basis points to 1.51%, and the 10-yr yield fell nine basis points to 1.79%. The U.S. Dollar Index increased 0.1% to 96.90.
Given the geopolitical angst, investors also saw some opportunities in WTI crude ($63.03, +1.88, +3.1%) on possible disruptions to production and in the iShares Dow Jones U.S. Aerospace & Defense ETF (ITA 229.98, +2.60, +1.1%) on speculation of increased government spending. Gold futures increased 1.6% to $1552.40/ozt.
Notable story stocks included Tesla (TSLA 443.01, +12.75, +3.0%) after it beat fourth quarter delivery estimates, Lamb Weston (LW 93.56, +9.47, +11.3%) after it beat top and bottom-line estimates, and Incyte (INCY 77.90, 8.07, -9.4%) after providing disappointing results for a promising drug candidate.
Separately, the FOMC Minutes from the Dec. 10-11 meeting went largely unnoticed today, which wasn't too surprising considering that the 2019 committee viewed policy as appropriate unless the economic outlook changes.
Reviewing Friday's economic data, which included the ISM Manufacturing Index for December and the Construction Spending report for November:
The ISM Manufacturing Index for December registered a 47.2% reading (Briefing.com consensus 49.0%). That was below the 48.1% reading for November, the fifth straight sub-50.0% reading, and the lowest level for the index since June 2009.
The key takeaway from the report is that the conditions remain weak in the manufacturing sector, although there might be a tendency to dismiss the dour December reading in favor of the view that the easing of trade tension between the U.S. and China could lead to better manufacturing activity in 2020.
Total construction spending increased 0.6% m/m in November (Briefing.com consensus +0.3%) on the heels of an upwardly revised 0.1% increase (from -0.8%) in October. Residential spending was up 1.8% m/m and nonresidential spending was down 0.3% m/m.
The key takeaway from the report is that new single-family construction (+1.2%) was the main driver of the pickup in residential spending.
Investors will not receive any notable economic data on Monday.
Nasdaq Composite +0.5% YTD
Dow Jones Industrial Average +0.3% YTD
S&P 500 +0.1% YTD
Russell 2000 -0.5% YTD
Market Snapshot
Dow 28634.79 -233.92 (-0.81%)
Nasdaq 9020.79 -71.42 (-0.79%)
SP 500 3234.85 -23.00 (-0.71%)
10-yr Note +30/32 1.791
NYSE Adv 1345 Dec 1482 Vol 932.1 mln
Nasdaq Adv 1146 Dec 2048 Vol 2.9 bln
Industry Watch
Strong: Utilities, Real Estate
Weak: Materials, Financials, Information Technology
Moving the Market
-- Stocks close lower after U.S. airstrike kills Iran's top military leader
-- ISM Manufacturing Index for December comes in weaker than expected
-- Oil, gold, Treasuries, and VIX gain
WTI crude gains 3% on geopolitical angst
03-Jan-20 15:25 ET
Dow -204.18 at 28664.53, Nasdaq -54.97 at 9037.24, S&P -18.63 at 3239.22
[BRIEFING.COM] The S&P 500 currently trades lower by 0.5% after President Trump recently said the U.S. is not seeking to start war with Iran, or seek a regime change, in a press conference.
Reviewing the S&P 500 sectors shows the materials (-1.2%), financials (-1.1%), and consumer discretionary (-0.9%) sectors continuing to lead the retreat, while the real estate (+0.7%) and utilities (+0.2%) sectors are the lone groups in the green.
WTI crude settled up $1.88 (+3.1%) to $63.03/bbl on some speculation that the Middle East angst could disrupt oil production. The gain was relatively modest.
Stock market rally extends into 2020, China announces stimulus
02-Jan-20 16:25 ET
Dow +330.36 at 28868.71, Nasdaq +119.58 at 9092.21, S&P +27.07 at 3257.85
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The large-cap indices climbed to new highs on this first trading day of 2020, as fresh stimulus out of China helped ignite a global equity rally. The Nasdaq Composite rose 1.3%, and the S&P 500 (+0.8%) and Dow Jones Industrial Average (+1.2%) followed suit. The Russell 2000 (-0.1%) finished lower.
China started the new year by announcing it will cut the reserve requirement ratio for small and large banks by 50 basis points on Jan. 6, providing about $115 billion in additional liquidity that can be lent out. China's Shanghai Composite rose 1.2%, and Europe Stoxx 600 rose 0.9% amid a view that the stimulus action could have global ripple effects.
In the U.S, the S&P 500 industrials sector (+1.8%) drew support from General Electric (GE 11.93, +0.77, +6.9%), and the Philadelphia Semiconductor Index (+2.1%) pushed to new highs amid strength in AMD (AMD 49.10, +3.24, +7.1%), which had its price target raised $58 from $40 at Nomura.
The mega-cap stocks in the S&P 500 information technology (+1.7%), communication services (+1.3%), and consumer discretionary (+1.3%) sectors continued to outperform, too. Apple (AAPL 300.35, +6.70, +2.3%), Amazon (AMZN 1898.01, +50.17, +2.7%), Alphabet (GOOG 1367.37, +30.35, +2.3%), and Facebook (FB 209.78, +4.53, +2.2%) each climbed more than 2.0%.
Today was undoubtedly risk-on, but the weakness in the S&P 500 utilities (-1.4%), real estate (-1.3%), materials (-1.2%), and consumer staples (-0.8%) sectors, and the underperformance in the small-cap and even the mid-cap stocks, somewhat limited this sentiment to the market's most widely-held names.
The advance in longer-dated U.S. Treasuries, which caused some curve-flattening activity, was another conflicting occurrence. The 2-yr yield was unchanged at 1.57%, and the 10-yr yield declined four basis points to 1.88%. The U.S. Dollar Index rose 0.4% to 96.81. WTI crude increased 0.1% (+0.05) to $61.15/bbl.
Two possible explanations for the interest in Treasuries included 1) the relatively soft manufacturing data out of China and Europe and 2) a view that the stock market was overbought and due for a pullback, thus leading to some defensive positioning in Treasuries. The latter view was not fully supported by the 9.5% drop in the CBOE Volatility Index (12.47, -1.31).
Thursday's economic data was limited to the weekly Initial and Continuing Claims report:
Initial claims for the week ending December 28 decreased by 2,000 to 222,000 (Briefing.com consensus 225,000) while continuing claims for the week ending December 21 increased by 5,000 to 1.728 million.
These headline results were not that intriguing, yet the key takeaway from the report -- and what is intriguing -- is that the four-week moving average for initial claims, which are a leading indicator, increased by 4,750 to 233,250. That is the highest four-week moving average since January 27, 2018.
Looking ahead, investors will receive the ISM Manufacturing Index for December, the FOMC Minutes from the Dec. 10-11 meeting, the Construction Spending report for November, and auto and truck sales throughout the day on Friday.
Nasdaq Composite +1.3% YTD
Dow Jones Industrial Average +1.2% YTD
S&P 500 +0.8% YTD
Russell 2000 -0.1% YTD
Market Snapshot
Dow 28868.71 +330.36 (1.16%)
Nasdaq 9092.21 +119.58 (1.33%)
SP 500 3257.85 +27.07 (0.84%)
10-yr Note +4/32 1.874
NYSE Adv 1745 Dec 1101 Vol 863.2 mln
Nasdaq Adv 1881 Dec 1313 Vol 2.2 bln
Industry Watch
Strong: Industrials, Information Technology, Communication Services
Weak: Utilities, Real Estate, Materials, Consumer Staples
Moving the Market
-- Stock market extends rally into 2020, small-caps underperformed
-- China announced a 50-bps cut to the reserve requirement ratio for small and large banks
-- Longer-dated U.S. Treasuries gained, causing some curve-flattening trade despite bullish sentiment in stocks
WTI crude settles little changed
02-Jan-20 15:25 ET
Dow +239.12 at 28777.47, Nasdaq +96.06 at 9068.69, S&P +18.12 at 3248.90
[BRIEFING.COM] The S&P 500 continues to trade near session highs with a 0.6% gain. Small-caps continue to underperform, with the Russell 2000 down 0.5%. Volume has been heavy than usual at the Nasdaq today.
One last look at the S&P 500 sectors shows the information technology (+1.4%), industrials (+1.1%), and communication services (+1.1%) sectors up more than 1.0%. On the other end, the real estate (-1.4%), utilities (-1.4%), and materials (-1.3%) sectors are down more than 1.0%.
WTI crude ticked up $0.05 (+0.1%) to $61.15/bbl.
Stocks wrap up record 2019 on high note
31-Dec-19 16:10 ET
Dow +76.30 at 28538.35, Nasdaq +26.61 at 8972.63, S&P +9.49 at 3230.78
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 advanced 0.3% on this New Year's Eve, wrapping up a phenomenal 2019 with a 28.9% gain. The Dow Jones Industrial Average, Nasdaq Composite, and Russell 2000 also increased 0.3% apiece to extend their yearly gains to 22.3%, 35.2%, and 23.7%, respectively.
Tuesday's action was tight-ranged amid a lack of conviction for most of the session, but renewed buying interest in the last hour of trading helped stocks close at session highs. All 11 S&P 500 sectors finished in positive territory, with the materials (+0.8%), energy (+0.7%), and real estate (+0.6%) sectors advancing the most.
In trade news, President Trump said the Phase One deal will be signed at the White House on Jan. 15 and that he will later travel to Beijing for Phase Two talks. Market reaction was muted, as the signing news was already priced in, but interested investors can jot the date on their 2020 calendars.
Corporate news was relatively light, but it's worth noting that Apple (AAPL 293.65, +2.13, +0.7%) extended its yearly gain to an impressive 86.2%. NVIDIA (NVDA 235.30, +2.98, +1.3%) had its price target raised to $275 from $240 at The Benchmark Company. Meritor (MTOR 26.19, +2.87, +12.3%) will join the S&P SmallCap 600 on Jan. 6.
U.S. Treasuries finished the thinly-traded session on a lower note. The 2-yr yield increased one basis point to 1.57% (-93 bps for 2019), and the 10-yr yield increased two basis points to 1.92% (-77 bps for 2019). The U.S. Dollar Index declined 0.3% to 96.50. WTI crude declined 0.3%, or $0.16, to $61.48/bbl (+35.4% for 2019).
Reviewing Tuesday's economic data:
The Conference Board's Consumer Confidence Index slipped to 126.5 in December (Briefing.com consensus 128.0) from an upwardly revised 126.8 (from 125.5) in November.
The key takeaway from the report is that consumer's short-term income prospects dipped, suggesting the economic momentum in 2020 many are expecting to see might not materialize if that attitude persists.
The FHFA Housing Price Index for October increased 0.2% (Briefing.com consensus 0.4%) following an unrevised 0.6% increase in September.
The S&P Case-Shiller Housing Price Index for October increased 2.2% (Briefing.com consensus 2.1%) following an unrevised 2.1% increase in September.
The market will be closed on Wednesday for New Year's Day and will reopen on Thursday. Investors will receive the weekly Initial and Continuing Claims report on Thursday.
Nasdaq Composite +35.2% YTD
S&P 500 +28.9% YTD
Russell 2000 +24.0% YTD
Dow Jones Industrial Average +23.8% YTD
Market Snapshot
Dow 28538.35 +76.30 (0.27%)
Nasdaq 8972.63 +26.61 (0.30%)
SP 500 3230.78 +9.49 (0.29%)
10-yr Note -4/32 1.922
NYSE Adv 1851 Dec 998 Vol 803.0 mln
Nasdaq Adv 1974 Dec 1223 Vol 2.0 bln
Industry Watch
Strong: Materials, Energy, Real Estate
Weak: Industrials, Consumer Staples
Moving the Market
-- Stocks close 2019 on high note; S&P 500 gains 29% for the year
-- President Trump said Phase One trade deal will be signed on Jan. 15 at the White House
-- Broad-based advance as all 11 S&P 500 finish in positive territory
WTI crude ends 2019 up 35%
31-Dec-19 15:25 ET
Dow -7.72 at 28454.33, Nasdaq +14.94 at 8960.96, S&P +1.13 at 3222.42
[BRIEFING.COM] The S&P 500 is back in positive territory with a 0.1% gain. The Russell 2000 is up 0.5%.
One last look at the S&P 500 sectors shows the materials (+0.5%) and energy (+0.4%) sectors outperforming the broader market. Conversely, the industrials (-0.2%) and consumer staples (-0.2%) sectors hold modest losses.
WTI crude declined $0.16 (-0.3%) to $61.48/bbl but still finished the year up 35%.
Stocks close lower as 2019 winds down
30-Dec-19 16:10 ET
Dow -183.12 at 28462.05, Nasdaq -60.62 at 8946.02, S&P -18.73 at 3221.29
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market succumbed to some profit-taking interest on Monday, leaving the S&P 500 down 0.6% for the session. The Dow Jones Industrial Average (-0.6%) and Nasdaq Composite (-0.7%) finished in-line with the benchmark index, while the Russell 2000 (-0.3%) fared slightly better.
Having entered today's session fresh off a series of record highs, including one on Friday, the broader market appeared overdue for some selling activity before the new year. All 11 S&P 500 sectors finished in negative territory with the communication services sector (-1.0%) declining the most.
There was little news of consequence to generate excitement in the market, although it was reported that China's Vice Premier Lie Hue could visit Washington this weekend to sign a Phase One trade deal. U.S. negotiators are still waiting for their agreement to be translated into English, according to Director of Trade and Manufacturing Policy Peter Navarro.
Today's decline also fostered some hedging interest against further downside, made evident by the 10% spike in the CBOE Volatility Index (14.79, +1.36, +10.1%). Interestingly, Apple (AAPL 291.52, +1.72, +0.6%) remained resilient and finished with a solid gain.
In automotive action, shares of Tesla (TSLA 414.70, -15.68, -3.6%) pulled back from record territory amid a cautious outlook from Cowen. Chinese competitor NIO (NIO 3.72, +1.30, +53.7%) rallied 54% following its earnings results.
U.S. Treasuries ended the session mixed, contributing to some curve-steepening activity. The 2-yr yield declined two basis points to 1.56%, while the 10-yr yield increased two basis points to 1.90%. The U.S. Dollar Index declined 0.2% to 96.78. WTI crude declined 0.2%, or $0.10, to $61.64/bbl.
Reviewing Monday's economic data:
Pending Home Sales increased 1.2% in November (Briefing.com consensus +1.0%). Today's reading follows a revised 1.3% decline in October (from -1.7%).
The Advance report for International Trade in Goods for November showed a deficit of $63.2 billion versus $66.8 billion in October. The Advance report for Retail Inventories for November fell 0.7%, and the Advance report for Wholesale Inventories for November was unchanged.
Looking ahead, investors will receive the S&P Case-Shiller Home Price Index for October, the FHFA Housing Price Index for October, and the Conference Board's Consumer Confidence Index for December on Tuesday.
Nasdaq Composite +34.8% YTD
S&P 500 +28.5% YTD
Russell 2000 +23.4% YTD
Dow Jones Industrial Average +22.0% YTD
Market Snapshot
Dow 28462.05 -183.12 (-0.64%)
Nasdaq 8946.02 -60.62 (-0.67%)
SP 500 3221.29 -18.73 (-0.58%)
10-yr Note -1/32 1.888
NYSE Adv 1257 Dec 1630 Vol 689.0 mln
Nasdaq Adv 1319 Dec 1848 Vol 2.0 bln
Industry Watch
Strong: Utilities, Real Estate
Weak: Communication Services, Consumer Discretionary
Moving the Market
-- Stock market succumbed to profit-taking interest in broad-based decline
-- Relative weakness in the communication services sector
-- Apple (AAPL) remained resilient to selling pressure
WTI crude posts modest loss
30-Dec-19 15:25 ET
Dow -150.80 at 28494.37, Nasdaq -52.18 at 8954.46, S&P -16.24 at 3223.78
[BRIEFING.COM] The S&P 500 continues to trade lower by 0.5% amid profit-taking interest. The Russell 2000 is down 0.2%.
One last look inside the S&P 500 shows all 11 sectors trading lower between 0.1% (energy) and 0.9 (communication services). Apple (AAPL 291.78, +1.94, +0.7%) continues to buck the broader trend.
WTI crude gave up an intraday gain and finished lower by $0.10 (-0.2%) to $61.64/bbl.