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Wall Street ends week on high note
20-Dec-19 16:10 ET
Dow +78.13 at 28455.00, Nasdaq +37.74 at 8924.97, S&P +15.85 at 3221.22
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 rose 0.5% on this quadruple-witching expiration Friday in another record-setting advance. The Dow Jones Industrial Average (+0.3%) and Nasdaq Composite (+0.4%) also closed at record highs. The Russell 2000 increased 0.3%.
Economic data continued to depict an improving macro environment, with U.S. personal income and spending rising more than expected in November. With few negative developments to alter the market's positive outlook, then, the bullish trend remained intact heading into the holidays. For good measure, President Trump said he had a good talk with President Xi about their trade deal.
All 11 S&P 500 sectors finished higher, led by the energy (+0.9%), utilities (+0.8%), and health care (+0.8%) sectors. The financials (+0.1%) and consumer discretionary (+0.1%) sectors underperformed.
Boeing (BA 328.00, -5.50, -1.7%) continued to struggle amid negative news: United Airlines (UAL 89.28, +0.06, +0.1%) extended its 737 MAX cancellations through June 4, and Boeing's Starliner spacecraft failed a NASA mission.
In pre-holiday earnings news, Nike (NKE 99.96, -1.19, -1.2%) and CarMax (KMX 92.71, -6.08, -6.2%) underwhelmed investors with results, while Carnival (CCL 50.21, +3.56, +7.6%), Blackberry (BB 6.53, +0.72, +12.4%), and Winnebago (WGO 51.91, +3.77, +7.8%) pleased investors.
U.S. Steel (X 11.92, -1.44, -10.8%) didn't report earnings, but it did issue downside quarterly guidance and cut its dividend to $0.01/share from $0.05/share.
U.S. Treasuries finished the session on a lower note, pushing yields modestly higher. The 2-yr yield increased three basis points to 1.63%, and the 10-yr yield increased one basis point to 1.92%. The U.S. Dollar Index advanced 0.3% to 97.70. WTI crude declined 1.5%, or $0.92, to $60.38/bbl.
Reviewing Friday's economic data:
Personal income increased 0.5% m/m in November (Briefing.com consensus 0.3%) following an upwardly revised 0.1% increase (from 0.0%) in October. Personal spending rose 0.4% on the heels of an unrevised 0.3% increase in October. The PCE Price Index increased 0.2%, as expected, and the core PCE Price Index, which excludes food and energy, jumped 0.1% (Briefing.com consensus 0.2%).
The key takeaway from the report is that it continues to present an encouraging backdrop for consumer spending growth, as incomes are rising amidst relatively muted aggregate inflation pressures.
The third estimate for Q3 GDP was right in-line with the second estimate and consensus estimates, with real GDP up 2.1% and the GDP Price Deflator up 1.8%.
The key takeaway from the report, other than that there were no surprises and that the data are extremely dated, is that third quarter growth and inflation were in that market-friendly zone of being neither too hot nor too cold.
The final reading for the University of Michigan Index of Consumer Sentiment was 99.3 (Briefing.com consensus 99.1) versus the preliminary reading of 99.2. The final reading for November was 96.8.
The key takeaway from the report, and something sure to catch the Fed's eye, is that inflation expectations declined. Over the next five years, consumers expect an annual inflation rate of just 2.2%, which is the lowest level since the question was first asked in the survey in the late 1970s.
Looking ahead, investors will receive New Home Sales for November on Monday.
Nasdaq Composite +34.5% YTD
S&P 500 +28.5% YTD
Russell 2000 +24.0% YTD
Dow Jones Industrial Average +22.0% YTD
Market Snapshot
Dow 28455.00 +78.13 (0.28%)
Nasdaq 8924.97 +37.74 (0.42%)
SP 500 3221.22 +15.85 (0.49%)
10-yr Note 0/32 1.921
NYSE Adv 1708 Dec 1174 Vol 2.8 bln
Nasdaq Adv 1811 Dec 1320 Vol 3.5 bln
Industry Watch
Strong: Energy, Utilities, Health Care
Weak: Consumer Discretionary, Financials
Moving the Market
-- Stock market closes at new record highs in broad-based advance
-- Personal income and spending increase more than expected in November
-- Nike (NKE) slips on gross margin miss
-- House passes USMCA deal, British Parliament backs Brexit deal, President Trump says he had good call with President Xi
WTI crude pulls back 1.5%
20-Dec-19 15:25 ET
Dow +121.65 at 28498.52, Nasdaq +38.13 at 8925.36, S&P +18.07 at 3223.44
[BRIEFING.COM] The S&P 500 continues to trade higher by 0.6%, while the Russell 2000 trades higher by 0.3%.
One last look inside the S&P 500 shows a defensive tilt, with the utilities (+1.1%), consumer staples (+1.0%), and health care (+0.9%) sectors outperforming the broader market. Conversely, the financials sector (+0.1%) trails the pack.
WTI crude settled down $0.92 (-1.5%) to $60.38/bbl.
Stock market extends record run, S&P 500 hits 3200
19-Dec-19 16:10 ET
Dow +137.68 at 28376.87, Nasdaq +59.48 at 8887.23, S&P +14.23 at 3205.37
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 closed above the 3200 level for the first time on Thursday in a modest 0.4% advance. The Nasdaq Composite (+0.7%) and Dow Jones Industrial Average (+0.5%) also extended their reach into record territory. The Russell increased 0.3%.
Starting with the macro headlines, the historical impeachment vote in the House was widely discussed, but investors dismissed the news as having any consequences for the market. Staying in Washington, Treasury Secretary Mnuchin said the USMCA deal could add 0.5% to GDP, which may have supported the market's already positive economic outlook.
Today's session, though, appeared to just be a continuation of the market's bullish bias. Nine of the 11 S&P 500 sectors finished in positive territory, with the real estate sector (+1.1%) continuing to benefit from a bargain-hunting mindset. Conversely, the energy (-0.1%) and utilities (-0.1%) sectors finished lower.
Micron (MU 54.53, +1.49, +2.8%), Canagra Brands (CAG 33.66, +4.61, +15.9%), and Darden Restaurants (DRI 109.05, -7.26, -6.2%) all beat profit estimates, but the latter disappointed investors with its same-restaurant sales growth.
Cisco Systems (CSCO 47.88, +1.24, +2.7%) and Johnson & Johnson (JNJ 145.35, +2.16, +1.5%), two stocks that have underperformed this year, were both upgraded to Overweight from Equal Weight at Barclays.
In corporate deals, Match Group (MTCH 77.35, +6.11, +8.6%) and InterActiveCorp (IAC 238.41, +17.20, +7.8%) agreed to separate. Live Nation (LYV 69.83, +5.88, +9.2%) reportedly reached a tentative settlement with the Department of Justice over its ticketing practices.
U.S. Treasuries edged higher, pushing yields slightly lower across the curve. The 2-yr and 10-yr yields both declined two basis points each to 1.60% and 1.91%, respectively. The U.S. Dollar Index finished little changed at 97.39. WTI crude rose 0.6% (+0.37%) to $61.30/bbl.
Reviewing Thursday's batch of economic data, which featured the Existing Home Sales report for November:
Existing home sales declined 1.7% m/m in November to a seasonally adjusted annual rate of 5.35 million units (Briefing.com consensus 5.45 million) from a downwardly revised 5.44 million (from 5.46 million) in October.
The key takeaway from the report is that home sales continue to be held back by the same forces: a lack of available supply and rising prices.
Initial claims for the week ending December 7 rose by 49,000 to 252,000 (Briefing.com consensus 212,000). That is the highest level of initial claims since September 30, 2017. Continuing claims for the week ending November 30 decreased by 31,000 to 1.667 million.
The key takeaway from the report is that the latest figure is outside the range of what has become typical reporting for this series, so it may be discounted as aberrant; however, the slowly rising uptick in the four-week moving average for initial claims implies that we may have seen the bottom for this cycle.
The Conference Board's Leading Economic Index (LEI) was unchanged in November (Briefing.com consensus +0.1%) following three straight monthly declines. October was revised to -0.2% from -0.1%.
The key takeaway from the report is the understanding that the LEI went negative (-0.2%) for the six-month period ending November versus growth of 0.3% over the previous six months.
The Philadelphia Fed Index for December came in at 0.3 (Briefing.com consensus 8.0), well below the 10.4 reading in November.
The current account deficit for the third quarter totaled $124.1 billion (Briefing.com consensus -$122.0 billion). The second quarter deficit was revised to $125.2 billion from $128.2 billion.
Looking ahead, investors will receive Personal Income and Spending for November, the third estimate for Q3 GDP, and the revised University of Michigan Index of Consumer Sentiment for December on Friday.
Nasdaq Composite +33.9% YTD
S&P 500 +27.9% YTD
Russell 2000 +23.6% YTD
Dow Jones Industrial Average +21.7% YTD
Market Snapshot
Dow 28376.87 +137.68 (0.49%)
Nasdaq 8887.23 +59.48 (0.67%)
SP 500 3205.37 +14.23 (0.45%)
10-yr Note +1/32 1.916
NYSE Adv 1727 Dec 1144 Vol 971.8 mln
Nasdaq Adv 1836 Dec 1296 Vol 2.4 bln
Industry Watch
Strong: Real Estate, Communication Services, Information Technology
Weak: Utilities, Energy
Moving the Market
-- S&P 500 closes above 3200 in modest advance
-- Continuation trade of the market's bullish bias; relative strength in the real estate sector
-- Impeachment remained a nonevent
WTI crude settles above $61
19-Dec-19 15:25 ET
Dow +113.00 at 28352.19, Nasdaq +51.41 at 8879.16, S&P +11.94 at 3203.08
[BRIEFING.COM] The S&P 500 is on pace to close at another record high, as it trades higher by 0.4%.
One last look inside the S&P 500 sectors shows real estate (+1.0%) and communication services (+0.7%) leading the advance, while the energy (-0.1%), utilities (-0.1%), and financials (-0.1%) sectors hold modest losses.
WTI crude settled up $0.37 (+0.6%) to $61.30/bbl.
Wall Street closes little changed in tight-ranged session
18-Dec-19 16:20 ET
Dow -27.88 at 28239.19, Nasdaq +4.38 at 8827.75, S&P -1.38 at 3191.14
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market finished mixed and little changed on Wednesday, although the Nasdaq Composite (+0.1%) did close at a record high in another tight-ranged session. The Russell 2000 added 0.3%, while the S&P 500 (-0.04%) and Dow Jones Industrial Average (-0.1%) both snapped a five-session winning streak.
Buying enthusiasm was understandably absent amid a lack of new catalysts, but there remained little interest to sell a market trading at all-time highs. FedEx (FDX 146.86, -16.37, -10.0%), however, did succumb to heavy selling pressure after it issued disappointing earnings results and guidance.
Weakness in FedEx contributed to the declines in the S&P 500 industrials sector (-0.5%) and Dow Jones Transportation Average (-0.9%).
Conversely, the real estate sector (+1.3%) rose more than 1% in an opportunistic trade that pared some of its monthly decline. The utilities (+0.4%), energy (+0.3%), and communication services (+0.3%) sectors followed suit.
In other earnings news, Lennox International (LII 245.37, -13.21, -5.1%) discouraged investors by lowering its FY19 guidance, while Cintas (CTAS 265.88, +5.12, +2.0%) and Steelcase (SCS 22.21, +3.13, +16.4%) pleased investors with results and/or guidance.
Separately, Cigna (CI 198.20, +4.68, +2.4%) agreed to sell its group life and disability insurance business to New York Life for $6.3 billion in cash.
In the U.S. Treasury market, a decline in longer-dated bonds caused some curve-steepening activity. The 2-yr yield declined one basis point to 1.62%, while the 10-yr yield increased four basis points to 1.92%. The U.S. Dollar Index increased 0.2% to 97.39. WTI crude increased 0.1% (+$0.03) to $60.93/bbl.
Economic data was limited to the weekly MBA Mortgage Applications Index, which declined 5.0% after increasing 3.8% in the prior week.
Looking ahead, investors will receive the following reports on Thursday: Existing Home Sales for November, the weekly Initial and Continuing Claims report, the Current Account Balance for the third quarter, the Philadelphia Fed Index for December, and the Conference Board's Leading Economic Index for November.
Nasdaq Composite +33.0% YTD
S&P 500 +27.3% YTD
Russell 2000 +23.2% YTD
Dow Jones Industrial Average +21.1% YTD
Market Snapshot
Dow 28239.19 -27.88 (-0.10%)
Nasdaq 8827.75 +4.38 (0.05%)
SP 500 3191.14 -1.38 (-0.04%)
10-yr Note -4/32 1.928
NYSE Adv 1792 Dec 1113 Vol 984.4 mln
Nasdaq Adv 1591 Dec 1552 Vol 2.4 bln
Industry Watch
Strong: Real Estate, Utilities, Energy, Communication Services
Weak: Industrials, Financials, Consumer Staples
Moving the Market
-- Stock market closes little changed in another tight-ranged session
-- FedEx (FDX) drops on disappointing earnings results and guidance
-- Relative strength in the real estate sector
WTI crude settles fractionally higher
18-Dec-19 15:25 ET
Dow +16.61 at 28283.68, Nasdaq +20.52 at 8843.89, S&P +3.02 at 3195.54
[BRIEFING.COM] The S&P 500 is on pace to close at another record high as it trades up by 0.1%.
The real estate sector (+1.6%) has pulled out way ahead of the pack today with a 1.6% gain. Entering today, the group was down 3.2% for the month. Today's laggard remains the industrials sector (-0.4%) amid a 10% earnings-related drop in shares of FedEx (FDX 147.04, -16.19, -9.9%).
WTI crude settled $0.03 higher (+0.1%) to $60.93/bbl. On a related note, weekly crude oil inventories decreased by 1.1 million barrels after increasing by 0.8 million barrels during the previous week.
Major indices eke out record closes
17-Dec-19 16:15 ET
Dow +31.27 at 28267.07, Nasdaq +9.13 at 8823.37, S&P +1.07 at 3192.52
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 finished flat (+0.03%) on Tuesday in a tight-ranged, and lackluster, session. It was still technically a record close, though, joining the Dow Jones Industrial Average (+0.1%) and Nasdaq Composite (+0.1%) further in record territory. The Russell 20000 outperformed with a 0.5% gain.
It was a relatively quiet session in terms of new developments, but the better-than-expected November readings for housing starts, building permits, and industrial production helped reinforce the market's positive economic outlook. Fittingly, the cyclical S&P 500 consumer discretionary (+0.6%) and financials (+0.5%) sectors outperformed the broader market.
Six of the 11 sectors did finish lower, though, with the weakest performer being the real estate sector (-1.2%). No other sector finished down more than 0.2% (information technology).
Shares of Boeing (BA 327.00, unch, unch) were volatile after the company confirmed it will suspend 737 MAX production starting in January. Separately, Johnson & Johnson (JNJ 143.56, +1.77, +1.3%) was upgraded to Overweight from Equal-Weight at Morgan Stanley, and Eli Lilly (LLY 125.33, +2.48, +2.0%) provided upside FY20 guidance.
In M&A activity, LogMeIn (LOGM 85.95, +3.54, +4.3%) agreed to be acquired by affiliates of Francisco Partners and Evergreen Coast Capital for $4.3 billion in cash. Tallgrass Energy (TGE 22.14, +3.85, +21.1%) agreed to be taken private by Blackstone (BX 54.58, +0.05, +0.1%) in a $6.3 billion deal.
On the earnings front, Jabil (JBL 43.43, +2.79, +6.9%) topped expectations and raised its FY20 guidance, while Navistar (NAV 28.97, -3.38, -10.5%) missed revenue estimates.
U.S. Treasuries finished little changed. Both the 2-yr yield and 10-yr yield remained unchanged at 1.63% and 1.89%, respectively. The U.S. Dollar Index increased 0.2% to 97.22. WTI crude rose 1.2%, or $0.69, to $60.90/bbl.
Reviewing Tuesday's economic data, which included Housing Starts and Building Permits for November:
Total housing starts increased 3.2% m/m to a seasonally adjusted annual rate of 1.365 million (Briefing.com consensus 1.340 million) while total building permits increased 1.4% m/m to a seasonally adjusted annual rate of 1.482 million (Briefing.com consensus 1.400 million).
The report contained some noise, yet the key takeaway is that single-family starts (+2.4%) and permits (+0.8%) recorded solid increases.
Industrial production increased 1.1% in November (Briefing.com consensus 0.8%) after declining a revised 0.9% (from -0.8%) in October. The capacity utilization rate increased to 77.3% (Briefing.com consensus 77.4%) from a revised 76.6% (from 76.7%) in October.
The key takeaway from the report is the November rebound was fueled by the end of the strike at GM. Excluding motor vehicles and parts, industrial production increased 0.5%.
The October Job Openings and Labor Turnover Survey showed job openings increase to 7.267 million from a revised 7.032 million in September (from 7.024 million).
Looking ahead, investors will receive the MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +33.0% YTD
S&P 500 +27.4% YTD
Russell 2000 +22.9% YTD
Dow Jones Industrial Average +21.2% YTD
Market Snapshot
Dow 28267.07 +31.27 (0.11%)
Nasdaq 8823.37 +9.13 (0.10%)
SP 500 3192.52 +1.07 (0.03%)
10-yr Note -1/32 1.882
NYSE Adv 1804 Dec 1073 Vol 935.9 mln
Nasdaq Adv 1760 Dec 1390 Vol 2.2 bln
Industry Watch
Strong: Financials, Consumer Discretionary
Weak: Real Estate
Moving the Market
-- Major indices eke out record closes in lackluster session
-- Better-than-expected housing starts, building permits, and industrial production for November
-- Relative strength in the financials and consumer discretionary sectors
WTI crude gains 1%
17-Dec-19 15:25 ET
Dow +59.69 at 28295.49, Nasdaq +9.81 at 8824.05, S&P +2.67 at 3194.12
[BRIEFING.COM] The S&P 500 continues to tread water with a 0.1% gain. The benchmark index has traded within a narrow, eight-point range today.
One last look at the S&P 500 sectors shows the financials (+0.7%), consumer discretionary (+0.5%), and utilities (+0.4%) sectors outperforming the broader market, while the real estate sector (-1.1%) is the only sector down more than 0.5%.
WTI crude settled up $0.69 (+1.2%) to $60.90/bbl.
Stock market climbs higher into record territory
16-Dec-19 16:20 ET
Dow +100.51 at 28235.80, Nasdaq +79.35 at 8814.24, S&P +22.65 at 3191.45
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market rose further into record territory on Monday, as the Phase One trade deal and an improving Chinese economy helped maintain the market's bullish bias. The Nasdaq Composite (+0.9%) rose above the S&P 500 (+0.7%), Dow Jones Industrial Average (+0.4%), and Russell 2000 (+0.7%).
The initial reaction to the trade deal was muted on Friday, so today was less about the actual deal and more about what it means moving forward: less uncertainty, and optimism, in the economic outlook. This view contributed to Monday's strong open, which accounted for most of today's gains as the S&P 500 drifted sideways for most of the session.
China's industrial production and retail sales figures, which grew faster than expected in November, added to the positive economic outlook also shared by the homebuilders. For instance, the NAHB Housing Market Index hit its highest level since 1999, increasing to 76 in December (Briefing.com consensus 69) from 69 in November.
The S&P 500 energy (+1.4%), utilities (+1.3%), and health care (+1.1%) sectors each rose more than 1.0%. The market also continued to draw influential support from Apple (AAPL 279.86, +4.71, +1.7%).
Conversely, the industrials sector (-0.03%) was pressured by weakness in shares of Boeing (BA 327.00, -14.67, -4.3%) and FedEx (FDX 164.10, -1.57, -1.0%) following separate reports from The Wall Street Journal.
Boeing is reportedly considering halting or cutting back production for its 737 MAX amid continued re-certification uncertainty. Amazon (AMZN 1769.21, +8.27, +0.5%) reportedly banned third-party sellers from using FedEx Ground for Prime shipments until delivery performance improves.
In M&A activity, DuPont (DD 64.89, +0.09, +0.1%) agreed to merge its Nutrition & Biosciences unit with International Flavors (IFF 120.00, -13.98, -10.4%) in a combined $45.4 billion deal. WPX Energy (WPX 11.90, +0.99, +9.1%) agreed to purchase Felix Energy for $2.5 billion.
U.S. Treasuries finished on a lower note, driving yields higher in a curve-steepening trade. The 2-yr yield increased three basis points to 1.53%, and the 10-yr yield increased seven basis points to 1.89%. The U.S. Dollar Index declined 0.1% to 97.05. WTI crude increased 0.2%, or $0.10, to $60.21/bbl.
Reviewing Monday's economic data:
The NAHB Housing Market Index for December increased to 76 (Briefing.com consensus 69) from 69 in November, hitting its highest level since 1999.
The Empire State Manufacturing Survey for December increased to 3.5 (Briefing.com consensus 3.5) from the prior month's reading of 2.9.
Looking ahead, investors will receive Housing Starts and Building Permits for November, Industrial Production and Capacity Utilization for November, and the JOLTS - Job Openings survey for October on Tuesday.
Nasdaq Composite +32.8% YTD
S&P 500 +27.3% YTD
Russell 2000 +22.4% YTD
Dow Jones Industrial Average +21.0% YTD
Market Snapshot
Dow 28235.80 +100.51 (0.36%)
Nasdaq 8814.24 +79.35 (0.91%)
SP 500 3191.45 +22.65 (0.71%)
10-yr Note -26/32 1.879
NYSE Adv 1993 Dec 886 Vol 1.1 bln
Nasdaq Adv 2011 Dec 1177 Vol 2.2 bln
Industry Watch
Strong: Energy, Utilities, Health Care, Communication Services
Weak: Industrials
Moving the Market
-- Large-cap indices close at new record highs
-- Mostly broad-based advance, although Boeing (BA) and FedEX (FDX) dragged on the industrials sector
-- Trade optimism, upbeat China data, bullish bias intact
WTI crude inches higher, stays above $60
16-Dec-19 15:25 ET
Dow +26.04 at 28161.33, Nasdaq +134.35 at 8869.24, S&P +86.48 at 3255.28
[BRIEFING.COM] The S&P 500 is set to close at another record close with a gain of 0.8%. The benchmark index has been unable to break above the 3200 level.
One last look inside the S&P 500 shows all ten sectors trading higher, led by the energy (+1.5%), health care (+1.3%), and utilities (+1.1%) sectors. The industrials sector (+0.04%) is up fractionally amid losses in Boeing (BA 328.21, -13.46, -3.9%) and FedEx (FDX 162.37, -3.41, -2.1%).
WTI crude settled up $0.10 (+0.2%) to $60.21/bbl in a quiet session. Staying above the $60 mark may have been good for sentiment.
Wall Street closes little changed after Phase One deal reached
13-Dec-19 16:15 ET
Dow +3.33 at 28135.29, Nasdaq +17.56 at 8734.89, S&P +0.23 at 3168.80
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market closed little changed on Friday after the U.S. and China finally reached a Phase One trade deal that prevented the Dec. 15 tariffs from taking effect. The S&P 500 (+0.01%) and Nasdaq Composite (+0.2%) eked out closing records. The Dow Jones Industrial Average finished flat, while the Russell 2000 declined 0.4%.
Specifically, the tariff rate on $250 billion of Chinese imports will remain at 25%, the tariff rate on $120 billion of Chinese imports will be cut to 7.5% from 15%, and China will try to purchase $40-50 billion in U.S. farm goods, although this latter part has yet to be solidified. A deal will reportedly be signed in early January.
President Trump said Phase Two discussions will begin immediately, which should focus on issues pertaining to forced technology transfers and IP rights, according to NEC Director Kudlow. The market's muted reaction to the partial deal was presumably attributed to it already being priced into the market's record run. Some skepticism about the limited details and China's commitment lingered.
The S&P 500 energy (-0.9%), materials (-0.8%), and financials (-0.5%) sectors did some pulling back, while the utilities (+0.8%) and information technology (+0.6%) sectors outperformed. Shares of Apple (AAPL 275.15, +3.69, +1.4%) climbed further into record territory.
The Philadelphia Semiconductor Index (-0.6%) was pressured by a negative reaction to Broadcom's (AVGO 315.42, -12.38, -3.8%) earnings report. Oracle (ORCL 54.51, -1.96, -3.5%) and Costco (COST 291.87, -5.47, -1.8%) also had disappointing earnings-based reactions, while Adobe (ADBE 317.94, +11.98, +3.9%) outperformed following its results.
U.S. Treasuries reversed the bulk of yesterday's sell-off, driving yields noticeably lower across the curve. The 2-yr yield fell seven basis points to 1.60%, and the 10-yr yield fell eight basis points to 1.82%. The U.S. Dollar Index declined 0.2% to 97.20. WTI crude rose 1.6%, or $0.93, to $60.11/bbl.
Separately, UK Prime Minister Boris Johnson's Conservative Party easily won the general election, paving the way for a Brexit by the end of January. UK's FTSE rose 1.1%, and the British pound rallied 1.4% against the dollar to 1.3339.
Reviewing Friday's economic data, which included the Retail Sales report for November, Export and Import Prices for November, and Business Inventories for October:
Total retail sales increased 0.2% m/m in November (Briefing.com consensus 0.5%) following an upwardly revised 0.4% increase (from 0.3%) in October. Excluding autos, retail sales rose 0.1% (Briefing.com consensus 0.4%) after an upwardly revised 0.3% increase (from 0.2%) in October.
The report denotes softer levels of discretionary spending activity in November, but the key takeaway is that there was still growth, which is consistent with the market's view that the U.S. consumer has the fundamental backing to keep spending.
Import prices for November were up 0.2%. Excluding fuel, they were down 0.1%, marking the fourth straight decline. Export prices were up 0.2%. Excluding agricultural products, they were flat.
The key takeaway from the report is that it points to an indolent inflation backdrop.
Total business inventories increased 0.2% month-over-month in October (Briefing.com consensus +0.2%) after a downwardly revised 0.1% decline (from 0.0%) in September. Total business sales were down 0.1% following a downwardly revised 0.4% decline (from -0.2%) in September.
Looking ahead, investors will receive the Empire State Manufacturing Survey for December, the NAHB Housing Market Index for December, and Net Long-Term TIC Flows on Monday.
Nasdaq Composite +31.6% YTD
S&P 500 +26.4% YTD
Russell 2000 +21.5% YTD
Dow Jones Industrial Average +20.6% YTD
Market Snapshot
Dow 28135.29 +3.33 (0.01%)
Nasdaq 8734.89 +17.56 (0.20%)
SP 500 3168.80 +0.23 (0.01%)
10-yr Note +29/32 1.820
NYSE Adv 1489 Dec 1358 Vol 844.5 mln
Nasdaq Adv 1553 Dec 1593 Vol 2.1 bln
Industry Watch
Strong: Utilities, Information Technology
Weak: Energy, Materials, Financials
Moving the Market
-- Market closes little changed after Phase One deal confirmed and Dec. 15 tariffs avoided
-- 25% tariff rate will remain on $250 billion of Chinese imports, a 15% tariff rate on $120 billion of Chinese imports will be cut to 7.5%
-- China will purchase additional amounts of U.S. farm goods; reportedly between $40-50 billion over a two-year period
-- Treasury yields decline noticeably to undo yesterday's move
WTI crude rises on trade deal
13-Dec-19 15:20 ET
Dow +8.73 at 28140.69, Nasdaq +16.06 at 8733.39, S&P +0.48 at 3169.05
[BRIEFING.COM] The S&P 500 remains unchanged as it has for more than three hours.
One last look inside the S&P 500 shows mixed results. The energy (-0.8%) and materials (-0.7%) sectors underperform, while the utilities (+0.9%) and information technology (+0.6%) sectors outperform. The tech group has benefited from a 1.2% gain in Apple (AAPL 274.73, +3.27).
WTI crude settled up $0.93 (+1.6%) to 60.11/bbl.
S&P 500, Nasdaq close at record highs on trade deal optimism
12-Dec-19 16:20 ET
Dow +220.75 at 28131.96, Nasdaq +63.27 at 8717.33, S&P +26.94 at 3168.57
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.9%) and Nasdaq Composite (+0.7%) closed at record highs on Thursday, as investors reacted positively to news that the U.S. and China are on the verge of signing a Phase One trade deal. The Dow Jones Industrial Average (+0.8%) and Russell 2000 (+0.8%) both rose 0.8%.
The day started with President Trump tweeting that a trade deal was close and The Wall Street Journal reporting that the U.S. offered to reduce existing tariffs and cancel the Dec. 15 tariffs. The news propelled all 11 S&P 500 sectors higher, and the large-cap indices to all-time highs, before skepticism and caution reined in some gains.
Then, as the broader market drifted modestly higher during the afternoon, Bloomberg reported that a deal in principle was reached and was awaiting President Trump's signature. A deal would include rolling back some tariffs and delaying the Dec. 15 tariffs in exchange for China to purchase more U.S. farm goods. Stocks rallied back toward session highs while Treasuries continued to sell-off in a risk-on trade.
The S&P 500 cyclical sectors led the advance, with the energy sector (+2.0%) finding additional support in higher oil prices ($59.18, +0.44, +0.8%) and the financials sector (+2.0%) benefiting from some curve-steepening activity. Trade-sensitive stocks like Wynn Resorts (WYNN 132.27, +11.44, +9.5%) and those in the Philadelphia Semiconductor Index (+2.7%) also outperformed.
The 2-yr yield rose six basis points to 1.67%, and the 10-yr yield rose 11 basis points to 1.90%. The U.S. Dollar Index increased 0.1% to 97.29.
This sharp increase in yields, however, did undercut the real estate (-1.5%) and utilities (-0.5%) sectors. The communication services sector (unch) was pressured by shares of Facebook (FB 196.75, -5.51, -2.7%) on news that the FTC is considering a preliminary injunction on the company over antitrust concerns.
In other corporate news, Delta Air Lines (DAL 56.69, +1.61, +2.9%) pleased investors with a reassuring FY20 forecast. General Electric (GE 11.44, +0.47, +4.3%) and FedEx (FDX 164.89, +5.81, +3.7%) benefited from analyst upgrades.
Overseas, it was election day in the UK, but polls remained opened by the close of U.S. markets. The European Central Bank left rates unchanged on Thursday, as was expected, while ECB President Lagarde said she was seeing initial signs of recovery.
Reviewing Thursday's economic data, which included the Producer Price Index for November and the weekly Initial and Continuing Claims report:
The Producer Price Index for final demand (PPI) was unchanged month-over-month in November (Briefing.com consensus 0.2%) while core PPI, which excludes food and energy, surprisingly declined 0.2% (Briefing.com consensus 0.2%). That left the year-over-year increases at 1.1% and 1.3%, respectively, versus 1.1% and 1.6% in October.
The key takeaway from this report is that it speaks to why the Fed is choosing to remain patient in raising the fed funds rate, as it reflects the disinflation (and low inflation expectations) trend Fed Chair Powell does not want to see growing deeper roots.
Initial claims for the week ending December 7 rose by 49,000 to 252,000 (Briefing.com consensus 212,000). That is the highest level of initial claims since September 30, 2017. Continuing claims for the week ending November 30 decreased by 31,000 to 1.667 million.
The key takeaway from the report is that the latest figure is outside the range of what has become typical reporting for this series, so it may be discounted as aberrant; however, the slowly rising uptick in the four-week moving average for initial claims implies that we may have seen the bottom for this cycle.
Looking ahead, investors will receive the Retail Sales report for November, Export and Import Prices for November, and Business Inventories for October on Friday.
Nasdaq Composite +31.4% YTD
S&P 500 +26.4% YTD
Russell 2000 +22.0% YTD
Dow Jones Industrial Average +20.6% YTD
Market Snapshot
Dow 28131.96 +220.75 (0.79%)
Nasdaq 8717.33 +63.27 (0.73%)
SP 500 3168.57 +26.94 (0.86%)
10-yr Note -30/32 1.891
NYSE Adv 1772 Dec 1086 Vol 892.6 mln
Nasdaq Adv 1993 Dec 1175 Vol 2.1 bln
Industry Watch
Strong: Energy, Financials, Materials, Information Technology
Weak: Utilities, Real Estate, Consumer Staples, Communication Services
Moving the Market
-- S&P 500, Nasdaq close at record highs on trade deal optimism
-- Report that a trade deal has been reached in principle and is awaiting President Trump's signature
-- Cyclical sectors outperformed and Treasuries sold off
-- Strength in trade-sensitive areas of the market
Stocks gain as Fed keeps rates unchanged and signals no rate hike in 2020
11-Dec-19 16:25 ET
Dow +29.58 at 27911.21, Nasdaq +37.87 at 8654.06, S&P +9.11 at 3141.63
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 increased 0.3% on Wednesday, as investors remained comforted by the few surprises in the FOMC's latest policy directive and Fed Chair Powell's press conference. The Nasdaq Composite (+0.4%) pulled out ahead, while the Dow Jones Industrial Average (+0.1%) and Russell 2000 (unch) finished closer to their flat lines.
The FOMC voted unanimously to leave the target range for the fed funds rate at 1.50-1.75%, as was widely expected. Thus, the positive reaction in the market may have been more attributed to the median projection for the policy rate in 2020 signaling no change. Fed Chair Powell for his part reiterated he would need to see a persistent and significant rise in inflation to hike rates.
The broader advance was kept in check, though, with the S&P 500 materials (+0.7%), information technology (+0.7%), and industrials (+0.7%) sectors finishing atop the standings. The real estate (-0.8%), financials (-0.2%), and energy (-0.2%) sectors finished in negative territory.
Generally, today's Fed news was viewed favorably, but several upcoming events likely helped restrain risk sentiment. Coming up are an ECB policy decision and UK election on Thursday and another round of tariffs on Chinese imports on Sunday, which may or may not happen. The trade uncertainty presumably had more influence on sentiment.
Strikingly, the trade-sensitive Philadelphia Semiconductor Index (+2.2%) posted an outsized gain. All 30 components finished higher, as the space likely drew support from the positive results and upbeat guidance from Photronics (PLAB 15.13, +2.56, +20.4%).
On the other hand, Dow components Home Depot (HD 212.00, -3.90, -1.8%) and Chevron (CVX 116.22, -1.67, -1.4%) weighed on the price-weighted index amid some negative news. Home Depot provided preliminary FY20 sales guidance that was below expectations. Chevron announced an $11 billion write-down of its gas assets in the fourth quarter.
U.S. Treasuries, which were already trending higher before the FOMC announcement, extended gains during Mr. Powell's press conference. Both the 2-yr yield and 10-yr yield declined four basis points each to 1.61% and 1.79%, respectively, with investors presumably unconcerned about inflation. The U.S. Dollar Index fell 0.3% to 97.10. WTI crude fell 0.8% (-0.47) to $58.74/bbl.
Reviewing Wednesday's economic data, which included the Consumer Price Index for November, the Treasury Budget for November, and the weekly MBA Mortgage Applications Index:
The Consumer Price Index (CPI) increased 0.3% month-over-month in November (Briefing.com consensus +0.2%) and core CPI, which excludes food and energy, increased 0.2%, as expected, for the second straight month.
The key takeaway from the report is that there was an uptick in prices across most key categories. That uptick is something the Fed wants to see at this juncture and it won't be quick to stamp it out with a rate hike, particularly since the Fed's favorite inflation gauge -- the PCE Price Index -- is still running comfortably below the longer-run 2.0% inflation target.
The Treasury Budget for November showed a deficit of $208.8 billion versus a deficit of $204.9 billion in the same period a year ago. This budget data is not seasonally adjusted, so the November deficit cannot be compared to the deficit of $134.5 billion for October.
The budget deficit over the last 12 months is $1.022 trillion versus $1.018 trillion in October. The fiscal year-to-date deficit is $343.3 billion versus $305.4 for the same period a year ago.
The weekly MBA Mortgage Applications Index increased 3.8% following a 9.2% drop in the prior week.
Looking ahead, investors will receive the Producer Price Index for November and the weekly Initial and Continuing Claims report on Thursday.
Nasdaq Composite +30.4% YTD
S&P 500 +25.3% YTD
Russell 2000 +21.0% YTD
Dow Jones Industrial Average +19.7% YTD
Market Snapshot
Dow 27911.21 +29.58 (0.11%)
Nasdaq 8654.06 +37.87 (0.44%)
SP 500 3141.63 +9.11 (0.29%)
10-yr Note -2/32 1.798
NYSE Adv 1839 Dec 1038 Vol 753.2 mln
Nasdaq Adv 1731 Dec 1359 Vol 2.0 bln
Industry Watch
Strong: Materials, Information Technology, Industrials
Weak: Real Estate, Energy, Financials
Moving the Market
-- FOMC keeps fed funds rate unchanged as expected, signals no rate hike in 2020
-- Relative strength in the trade-sensitive areas of the market: semiconductors, industrials, materials, and technology
-- Home Depot (HD), and Chevron (CVX) drag on the Dow
WTI crude posts decline as inventories rise more than expected
11-Dec-19 15:25 ET
Dow +13.07 at 27894.70, Nasdaq +37.39 at 8653.58, S&P +8.74 at 3141.26
[BRIEFING.COM] The S&P 500 currently trades higher by 0.3% at the conclusion of Fed Chair Powell's press conference, which was a nonevent like the FOMC decision.
One last look at the S&P 500 sectors shows eight of the 11 groups trading in positive territory, led by the materials (+0.7%) and information technology (+0.7%) sectors. The real estate (-0.8%), financials (-0.2%), and energy (-0.1%) sectors trade lower.
WTI crude fell $0.47 (-0.8%) to $58.74/bbl amid some bearish inventory data out of the EIA.
Wall Street stalls as tariff deadline nears
10-Dec-19 16:15 ET
Dow -27.88 at 27881.63, Nasdaq -5.64 at 8616.19, S&P -3.44 at 3132.52
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.1% on Tuesday in a tight-ranged session, as investors digested several developments on trade, including a report that the U.S. and China could delay the Dec. 15 tariffs. The Dow Jones Industrial Average (-0.1%) and Nasdaq Composite (-0.1%) also lost 0.1%, while Russell 2000 (+0.1%) added 0.1%.
According to The Wall Street Journal, a tariff delay would come as negotiators work to ensure China commits to purchasing more U.S. farm goods. A follow-up report from the South China Morning Post indicated that the delay is likely, but NEC Director Kudlow responded that the tariffs are still on the table. Mr. Kudlow could not confirm if the tariffs will be delayed.
This unresolved trade front was contrasted with House Speaker Pelosi announcing that a USMCA deal has been reached. Of course, the market has always been more concerned about a U.S.-China trade deal than a USMCA deal, so the latter didn't provide much enthusiasm in the market. Impeachment talk remained a non-factor.
Most S&P 500 sectors wavered near their unchanged marks throughout the session. The real estate (-0.7%) and materials (-0.6%) sectors diverted with relatively larger declines, while the energy (+0.2%) and health care (+0.2%) sectors finished higher.
A wait-and-see mindset continued to influence trading, leading to the absence of buying conviction, with a Fed policy decision and the Consumer Price Index for November also due out tomorrow. More trade headlines should be anticipated this week, with expectations for those tariffs on Chinese imports to be delayed.
AutoZone (AZO 1250.00, +81.00, +6.9%) and Stitch Fix (SFIX 26.23, +1.21, +4.8%) outperformed in earnings-driven advances, while Netflix (NFLX 293.12, -9.38, -3.1%) underperformed after it was downgraded to Underperform from Neutral at Needham.
U.S. Treasuries finished the session mixed. The 2-yr yield increased three basis points to 1.65%, and the 10-yr yield was unchanged at 1.83%. The U.S. Dollar Index declined 0.2% to 97.45. WTI crude increased 0.4%, or $0.24, to $59.21/bbl.
Reviewing Tuesday's economic data, which included the NFIB Small Business Optimism Index for November and and the revised Q3 readings for Productivity and Unit Labor Costs:
Nonfarm business sector labor productivity decreased 0.2% in the third quarter (Briefing.com consensus -0.1%), according to the revised estimate, versus a previously reported 0.3% decrease. Unit labor costs increased 2.5% (Briefing.com consensus 3.4%) versus a previously reported 3.6% increase.
The key takeaway from the report remains the same as the preliminary estimate: the decline in productivity and the jump in unit labor costs points to profit margin pressures for businesses.
The NFIB Small Business Optimism Index for November increased to 104.7 from 102.4 in October.
Looking ahead, investors will receive the Consumer Price Index for November, the FOMC Rate Decision, the Treasury Budget for November, and the weekly MBA Mortgage Applications Index on Wednesday:
Nasdaq Composite +29.9% YTD
S&P 500 +25.0% YTD
Russell 2000 +21.0% YTD
Dow Jones Industrial Average +19.5% YTD
Market Snapshot
Dow 27881.63 -27.88 (-0.10%)
Nasdaq 8616.19 -5.64 (-0.07%)
SP 500 3132.52 -3.44 (-0.11%)
10-yr Note -2/32 1.840
NYSE Adv 1471 Dec 1406 Vol 780.0 mln
Nasdaq Adv 1609 Dec 1479 Vol 2.0 bln
Industry Watch
Strong: Energy, Health Care
Weak: Real Estate, Materials
Moving the Market
-- Wall Street stalls as tariff deadline nears
-- The U.S. and China are reportedly discussing plans to delay Dec. 15 tariffs
-- USMCA tentative agreement reached
WTI crude inches higher
10-Dec-19 15:25 ET
Dow -9.60 at 27899.91, Nasdaq -1.75 at 8620.08, S&P -1.91 at 3134.05
[BRIEFING.COM] The S&P 500 is now down 0.1%, while the Russell 2000 trades up by 0.1%.
One last look at the S&P 500 sectors shows real estate (-0.6%) and materials (-0.6%) underperforming the broader market. Conversely, the energy (+0.2%), health care (+0.1%), and information technology (+0.1%) sectors show relative strength.
WTI crude settled up $0.24 (+0.4%) to $59.21/bbl.
S&P 500 closes at lows in modest decline
09-Dec-19 16:15 ET
Dow -105.46 at 27909.51, Nasdaq -34.70 at 8621.83, S&P -9.95 at 3135.96
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 lost 0.3% on Monday, closing at session lows amid a lack of buying conviction. The Dow Jones Industrial Average declined 0.4%, the Nasdaq Composite declined 0.4%, and the Russell 2000 declined 0.3%.
The lack of conviction was understandable considering that there was no reported progress on the U.S.-China trade front ahead of the Dec. 15 tariffs, which would presumably upset the market if they went into effect without a Phase One deal. There is still some time left this week to strike a deal, but the trade uncertainty helped keep risk sentiment in check.
Losses were made most prevalent in the S&P 500 health care (-0.7%), utilities (-0.5%), and information technology (-0.5%) sectors. The latter was pressured by Apple (AAPL 266.92, -3.79, -1.4%), which pulled back from record territory. Conversely, the consumer staples (+0.2%), real estate (+0.1%), and consumer discretionary (+0.1%) sectors finished higher.
Other key events this week will include policy decisions from both the Fed and ECB, a UK election, and reports on consumer prices and retail sales for November. Strikingly, the CBOE Volatility Index spiked 16.5% to 15.86, as demand for downside protection increased in anticipation for any disappoints.
Corporate news didn't move the needle, but M&A activity and analyst recommendations did contribute to some notable stock reactions.
In the biotech space, ArQule (ARQL 19.71, +10.04, +103.9%) agreed to be acquired by Merck (MRK 88.72, -0.13, -0.2%) for about $2.7 billion in cash. Synthorx (THOR 67.71, +42.68, +170.5%) agreed to be acquired by French company Sanofi (SNY 45.30, -0.73, -1.6%) for about $2.4 billion in cash. Evidently, both deals came at handsome premiums.
Apple suppliers Qorvo (QRVO 108.44, +1.82, +1.7%) and Skyworks Solutions (SWKS 103.23, +1.87, +1.8%) outperformed after Bank of America/Merrill Lynch "double upgraded" the stocks to Buy from Underperform due to their 5G growth potential.
U.S. Treasuries finished the session relatively unchanged. The 2-yr yield declined one basis point to 1.62%, and the 10-yr yield declined one basis point to 1.83%. The U.S. Dollar Index declined 0.1% to 97.64. WTI crude declined 0.4%, or $0.23, to $58.97/bbl.
Investors did not receive any economic data on Monday. Looking ahead, investors will receive the NFIB Small Business Optimism Index for November and the revised Q3 readings for Productivity and Unit Labor Costs on Tuesday.
Nasdaq Composite +29.9% YTD
S&P 500 +25.1% YTD
Russell 2000 +20.9% YTD
Dow Jones Industrial Average +19.6% YTD
Market Snapshot
Dow 27909.51 -105.46 (-0.38%)
Nasdaq 8621.83 -34.70 (-0.40%)
SP 500 3135.96 -9.95 (-0.32%)
10-yr Note +1/32 1.830
NYSE Adv 1488 Dec 1394 Vol 860.6 mln
Nasdaq Adv 1351 Dec 1768 Vol 2.0 bln
Industry Watch
Strong: Consumer Staples, Real Estate, Consumer Discretionary
Weak: Health Care, Information Technology, Utilities
Moving the Market
-- Stock market closes at lows in modest decline
-- Lack of buying conviction ahead of key events, including Dec. 15 tariffs
-- M&A activity in the biotech space, notable analyst recommendations
-- CBOE Volatility Index spikes 16%
WTI crude slips after last week's big gain
09-Dec-19 15:20 ET
Dow -59.23 at 27955.74, Nasdaq -17.65 at 8638.88, S&P -4.84 at 3141.07
[BRIEFING.COM] The S&P 500 is on pace to close the session little changed as it trades lower by 0.2%.
Reviewing the S&P 500 sectors shows utilities (-0.5%), health care (-0.4%), and information technology (-0.3%) continuing to drag on the broader market, while the consumer staples (+0.3%), consumer discretionary (+0.3%), and real estate (+0.2%) sectors continue to hold modest gains.
WTI crude settled down $0.23 (-0.4%) to $58.97/bbl in a marginal pullback from last week's 7% gain.
Stocks rally to end the week on strong jobs report
06-Dec-19 16:15 ET
Dow +337.27 at 28014.97, Nasdaq +85.83 at 8656.53, S&P +28.48 at 3145.91
https://www.briefing.com/stock-market-update
[BRIEFING.COM] U.S. stocks rallied on Friday after the employment report for November showed a stronger-than-expected labor market. The S&P 500 rose 0.9%, which was slightly less than the gains in the Dow Jones Industrial Average (+1.2%), Nasdaq Composite (+1.0%), and Russell 2000 (+1.2%).
The headline nonfarm payrolls figure increased by 266,000 (Briefing.com consensus of 182,000), which blew past many of the estimates on Wall Street. Other key figures included the unemployment rate declining to 3.5% (Briefing.com consensus 3.6%) from 3.6% in October and average hourly earnings increasing 0.2% (Briefing.com consensus 0.3%).
Supporting risk sentiment was a better-than-expected preliminary consumer sentiment reading for December and an announcement from China that it started to exempt some U.S. agricultural purchases from tariffs. Altogether, the news reinforced a positive economic outlook with the Fed presumably on hold, the state of the consumer in good shape, and the trade situation seemingly improving.
It was no surprise, then, to see a cyclically-charged rally. The energy sector (+2.0%) led the advance amid some key OPEC+ news that contributed to higher oil prices ($59.20, +0.75, +1.3%). The oil producers agreed to cut production by 500,000 barrels per day until March, with Saudi Arabia also offering up to an additional 400,000 barrel cut of its own.
The rate-sensitive utilities sector (-0.2%) struggled during the day, largely due to the increase in Treasury yields that resulted from the jobs report waning demand for bonds. The 2-yr yield increased four basis points to 1.63%, and the 10-yr yield increased five basis points to 1.84%. The U.S. Dollar Index increased 0.3% to 97.68.
In corporate news, Goldman Sachs (GS 224.61, +7.47, +3.4%) outperformed after Bloomberg reported that the bank could settle its 1MDB scandal for less than $2 billion, which would also be less than expected. Ulta Beauty (ULTA 262.20, +26.18, +11.1%) climbed more than 10% after providing positive earnings results and upbeat earnings guidance.
Separately, Dow components Apple (AAPL 270.71, +5.13, +1.9%), JPMorgan Chase (JPM 135.04, +1.98, +1.5%), and Nike (NKE 97.00, +1.21, +1.3%) set new all-time highs on Friday.
Reviewing Friday's economic data, which featured the Employment Situation Report for November:
November nonfarm payrolls increased by 266,000 (Briefing.com consensus 182,000); private sector payrolls increased by 254,000 (Briefing.com consensus 175,000); the unemployment rate was 3.5% (Briefing.com consensus 3.6%), versus 3.6% in October; average hourly earnings were up 0.2% (Briefing.com consensus +0.3%) after increasing an upwardly revised 0.4% (from 0.2%) in October.
The key takeaway, from the spike in nonfarm payrolls to the drop in the unemployment rate to the increase in wages, is that it was a very encouraging report for the U.S. economic outlook.
The preliminary December reading for the University of Michigan Index of Consumer Sentiment rose to 99.2 from 96.8 in November, hitting the upper end of the range it has been in since the beginning of 2017.
The key takeaway from the report is that it bodes well for the consumer spending outlook, as rising levels of consumer sentiment pair nicely with income gains to lend confidence to increased spending activity.
Wholesale inventories increased 0.1% m/m in October (Briefing.com consensus +0.2%), on top of a downwardly revised 0.7% decline (from -0.4%) in September, which was the largest decline since February 2016. Wholesale sales were down 0.7% in October after declining 0.1% in September.
The key takeaway from the report is that it could prove difficult for wholesalers to gain pricing power given that inventory growth remains well ahead of sales growth on a yr/yr basis.
Consumer credit increased by $18.90 bln in October (Briefing.com consensus $17.30 bln) after increasing an upwardly revised $9.60 bln (from $9.50 bln) in September.
The key takeaway from the report is that the October increase was fairly evenly distributed between nonrevolving credit like student or auto loans and revolving credit like credit cards.
Investors will not receive any notable economic data on Monday.
Nasdaq Composite +30.5% YTD
S&P 500 +25.5% YTD
Russell 2000 +21.2% YTD
Dow Jones Industrial Average +20.1% YTD
Market Snapshot
Dow 28014.97 +337.27 (1.22%)
Nasdaq 8656.53 +85.83 (1.00%)
SP 500 3145.91 +28.48 (0.91%)
10-yr Note -3/32 1.841
NYSE Adv 2135 Dec 743 Vol 850.4 mln
Nasdaq Adv 2209 Dec 891 Vol 2.0 bln
Industry Watch
Strong: Energy, Financials, Industrials, Information Technology
Weak: Utilities
Moving the Market
-- Stocks rally after the November employment report exceeded expectations
-- China announced that it started to exempt some U.S. agricultural purchases from tariffs; consumer sentiment picks up in December
-- Cyclical sectors outperformed, Treasuries declined
Consumer credit increases more than expected
06-Dec-19 15:25 ET
Dow +330.93 at 28008.63, Nasdaq +85.45 at 8656.15, S&P +29.47 at 3146.90
[BRIEFING.COM] The S&P 500 is up 1.0%, while the Russell 2000 is up 1.2%.
Consumer credit increased by $18.90 bln in October (Briefing.com consensus $17.30 bln) after increasing an upwardly revised $9.60 bln (from $9.50 bln) in September.
WTI crude settled up $0.75 (+1.3%) to $59.20/bbl after OPEC+ agreed to cut production by 500,000 barrels per day in the first quarter of 2020.
Tesla's price target raised to $500 at Morgan Stanley
06-Dec-19 15:00 ET
Dow +336.45 at 28014.15, Nasdaq +87.48 at 8658.18, S&P +29.50 at 3146.93
[BRIEFING.COM] The S&P 500 is up 1.0% and is on pace to end the week higher. The benchmark index is holding a modest 0.2% weekly gain.
Shares of Tesla (TSLA 336.77, +6.40, +1.9%) are seeing increased demand today after the stock's price target was raised to $500 from $440 at Morgan Stanley. On a related note, China's industry ministry will recommend subsidies for Tesla's Model 3 cars that are built in China, according to Reuters.
The earnings calendar will be pretty light next week, but it will include Costco (COST 294.98, +1.88, +0.6%) and Oracle (ORCL 54.96, +0.28, +0.5%) next Thursday.
Ulta Beauty is today's biggest gainer, while Ball Corp lags
06-Dec-19 14:25 ET
Dow +331.64 at 28009.34, Nasdaq +88.35 at 8659.05, S&P +30.16 at 3147.59
[BRIEFING.COM] The S&P 500 is down slightly from session highs with a gain of 0.9%.
Ulta Beauty (ULTA 266.91, +30.89, +13.1%) remains the biggest gainer in the S&P 500, while Ball Corp. (BLL 63.17, -2.97, -4.5%) is today's biggest laggard on no confirmed news driver. Energy stocks, as a group, are among the best performers.
Small-caps are also having a great day, with the Russell 2000 up 1.2%. For the week, the index is up 0.6%, which is better than its large-cap peers.
Gold and silver lose ground
06-Dec-19 13:55 ET
Dow +333.02 at 28010.72, Nasdaq +87.12 at 8657.82, S&P +31.23 at 3148.66
[BRIEFING.COM] The S&P 500 continues to trade higher by 1.0%.
Gold futures settled down $17.60 (-1.2%) at $1464.9/oz, while silver futures settled today's session $0.44 lower (-2.6%) at $16.61/oz. The strong jobs report and upbeat trade news today has underpinned the risk-on mindset that has bypassed interest for precious metals.
The U.S. Dollar Index is currently up 0.3% to 97.74.
Wall Street ekes out gains in mixed session
05-Dec-19 16:20 ET
Dow +28.01 at 27677.70, Nasdaq +4.03 at 8570.70, S&P +4.67 at 3117.43
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 increased 0.2% on Thursday in a mixed session, as investors continued to follow the latest trade headlines with muted conviction. The Dow Jones Industrial Average (+0.1%), Nasdaq Composite (+0.1%), and Russell 2000 (+0.1%) each increased 0.1%.
China's Commerce Ministry said Beijing has maintained close contact with the U.S., which Treasury Secretary Mnuchin indirectly backed up when he told reporters that talks remain on track after a recent phone call. The latest sticking point, according to The Wall Street Journal, is the value of farm goods the U.S. wants China to purchase.
The latter report caused a brief dip in the market, but stocks quickly recovered on the presumption that discussions are still moving toward a Phase One deal. There appeared, however, to be a wait-and-see mindset not only for the trade situation to progress but also for the release of the November employment report on Friday.
Today's outright leader was the lightly-weighted S&P 500 materials sector (+0.7%). Conversely, the energy sector (-0.5%) succumbed to broad-based selling while the consumer staples sector (-0.2%) was pressured by earnings-driven losses in Kroger (KR 26.80, -0.84, -3.0%) and Brown-Forman (BF.B 63.57, -4.27, -6.3%).
Notable gainers included Apple (AAPL 265.58, +3.84, +1.5%) and Nike (NKE 95.79, +2.07, +2.2%) after the stocks received positive-minded analyst recommendations. Apple's price target was raised to $300 from $250 at Citigroup. Nike was upgraded to Buy from Neutral at Goldman Sachs and was placed on its Conviction Buy List.
The biotech space also had some noteworthy moves. Sage Therapeutics (SAGE 60.18, -89.03, -59.7%) tanked after a Phase 3 study did not meet its primary endpoint for major depressive disorder, while Aurinia Pharma (AUPH 15.00, +6.61, +78.8%) surged following a positive Phase 3 result for a lupus drug. Biogen (BIIB 299.39, +9.87, +3.4%) provided a well-received update for its Alzheimer's drug.
Separately, United Airlines (UAL 87.86, -0.31, -0.4%) announced that CEO Oscar Munoz will be stepping down in May and will transition over to Executive Chairman.
U.S. Treasuries finished the session on a lower note. The 2-yr yield increased one basis point to 1.59%, and the 10-yr yield increased two basis points to 1.80%. The U.S. Dollar Index declined 0.3% to 97.38. WTI crude finished little changed at $58.45/bbl as OPEC+ convened in Vienna to discuss production cuts.
Reviewing Thursday's economic data, which included weekly jobless claims, the Trade Balance report for October, and the Factory Orders report for October:
Initial claims for the week ending November 30 dropped by 10,000 to 203,000 (Briefing.com consensus 221,000). Continuing claims for the week ending November 23 increased by 51,000 to 1.693 million.
The key takeaway from this report is the understanding that initial claims dropped back close to the lowest levels on record, which will contribute to a belief that the labor market remains tight.
The key takeaway from this report is the understanding that initial claims dropped back close to the lowest levels on record, which will contribute to a belief that the labor market remains tight. The narrowing in the deficit was a function of exports (-$0.4 billion) declining less than imports (-$4.3 billion).
The key takeaway from the report, however, is that a decline in both exports and imports for the second straight month is not a hallmark of a global economy running strong.
The Factory Orders report for October increased 0.3% (Briefing.com consensus +0.3%), and the September reading was revised to -0.3% (from -0.6%).
Looking ahead, investors will receive the following reports on Friday: the Employment Situation Report for November, the preliminary University of Michigan Index of Consumer Sentiment for December, Wholesale Inventories for October, and Consumer Credit for October.
Nasdaq Composite +29.2% YTD
S&P 500 +24.4% YTD
Russell 2000 +19.8% YTD
Dow Jones Industrial Average +18.7% YTD
Market Snapshot
Dow 27677.70 +28.01 (0.10%)
Nasdaq 8570.70 +4.03 (0.05%)
SP 500 3117.43 +4.67 (0.15%)
10-yr Note -2/32 1.802
NYSE Adv 1551 Dec 1329 Vol 787.0 mln
Nasdaq Adv 1488 Dec 1474 Vol 2.0 bln
Industry Watch
Strong: Materials, Information Technology, Communication Services
Weak: Energy, Consumer Discretionary, Consumer Staples
Moving the Market
-- Stock market ekes out gains in front of employment report tomorrow
-- China says it has maintained close contact with the U.S.; Treasury Secretary Mnuchin says trade talks are on track
-- Relative weakness in the energy space
-- Apple (AAPL), Nike (NKE) gain on positive-minded analyst recommendations
WTI crude settles little changed
05-Dec-19 15:30 ET
Dow +37.89 at 27687.58, Nasdaq +3.88 at 8570.55, S&P +4.69 at 3117.45
[BRIEFING.COM] The S&P 500 is up 0.2% after seeing a brief dip into negative territory earlier. That dip came after The Wall Street Journal reported that the U.S. and China are at odds about the value of farm good purchases.
One last look at the S&P 500 sectors shows the materials (+0.7%), financials (+0.4%), and information technology (+0.4%) sectors leading the advance. Conversely, the energy sector (-0.4%) remains today's laggard.
WTI crude settled little changed at $58.45/bbl. For the week, the commodity is still up 6%.
Stocks rebound on positive trade headline
04-Dec-19 16:15 ET
Dow +146.97 at 27649.69, Nasdaq +46.03 at 8566.67, S&P +19.56 at 3112.76
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 rebounded 0.6% on Wednesday, as the market reacted positively to a Bloomberg report that suggested a trade deal with China is close to being reached despite the recent escalation in rhetoric. The Dow Jones Industrial Average (+0.5%), Nasdaq Composite (+0.5%), and Russell 2000 (+0.7%) rose alongside benchmark index.
Details were scant and the sources were anonymous, but the positive-sounding headline proved enough to catalyze today's positive bias. President Trump even said that talks are moving along nicely, which may have reinforced the good mood and helped the market overlook an ADP Employment Change Report and ISM Non-Manufacturing Index for November that missed expectations.
All 11 S&P 500 sectors had traded in the green, led by the energy sector (+1.6%), but a late fade into the close did knock the materials sector (-0.04%) into the red. Energy stocks rose in tandem with oil prices ($58.42, +2.29, +4.1%), which were boosted by news that OPEC+ is considering deeper production cuts.
Notable corporate leadership changes were also viewed favorably by shareholders.
Alphabet's (GOOG 1320.54, +25.26, +2.0%) CEO Larry Page and President Sergey Brin stepped down from management and ceded CEO duties to Sundar Pichai in addition to his current CEO role at Google. Expedia's (EXPE 105.56, +6.17, +6.2%) CEO Mark Okerstrom and CFO Alan Pickerill resigned at the board's request.
On the earnings front, Campbell Soup (CPB 48.47, +0.89, +1.9%) hit a 52-week high after it beat earnings expectations. Salesforce (CRM 156.43, -5.14, -3.2%) and Workday (WDAY 165.39, -8.11, -4.7%) both beat top and bottom-line estimates and provided decent guidance, but shares still finished noticeably lower.
U.S. Treasuries retreated after a big advance yesterday, driving yields higher in a curve-steepening trade. The 2-yr yield increased four basis points to 1.58%, and the 10-yr yield increased seven basis points to 1.78%. The U.S. Dollar Index declined 0.1% to 97.60.
Reviewing Wednesday's economic data, which included the ISM Non-Manufacturing Index for November, the ADP Employment Change report for November, and the weekly MBA Mortgage Applications Index:
The ISM Non-Manufacturing Index decelerated to 53.9% in November (Briefing.com consensus 54.8%) from 54.7% in October. The dividing line between expansion and contraction is 50.0%, so the November reading connotes a sector that continues to run in an expansion mode.
The key takeaway from the report is that it was underpinned by accelerating growth in both the New Orders Index (to 57.1% from 55.6%) and the Employment Index (to 55.5% from 53.7%), which is not what one would expect to see if it was believed the economy was at a recession tipping point.
The ADP Employment Report for November showed an estimated 67,000 positions were added to private-sector payrolls. That was much weaker than the Briefing.com consensus estimate of 175,000.
The weekly MBA Mortgage Applications Index fell 9.2% following a 1.5% increase in the prior week.
Looking ahead, investors will receive the Trade Balance report for October, the Factory Orders report for October, and the weekly Initial and Continuing Claims report on Thursday.
Nasdaq Composite +29.1% YTD
S&P 500 +24.2% YTD
Russell 2000 +19.7% YTD
Dow Jones Industrial Average +18.5% YTD
Market Snapshot
Dow 27649.69 +146.97 (0.53%)
Nasdaq 8566.67 +46.03 (0.54%)
SP 500 3112.76 +19.56 (0.63%)
10-yr Note -27/32 1.770
NYSE Adv 1977 Dec 903 Vol 934.4 mln
Nasdaq Adv 1928 Dec 1178 Vol 2.1 bln
Industry Watch
Strong: Energy, Financials
Weak: Materials
Moving the Market
-- Stocks rebound after Bloomberg reports that trade talks are nearing a deal despite recent escalation in trade
-- Oil prices climb 4% as OPEC+ members reportedly support deeper production cuts
-- Treasuries retreat from yesterday's big advance; financial stocks gain amid some curve-steepening activity
WTI crude settles 4% higher
04-Dec-19 15:25 ET
Dow +191.32 at 27694.04, Nasdaq +54.66 at 8575.30, S&P +23.13 at 3116.33
[BRIEFING.COM] The S&P 500 is on pace to close the session comfortably higher as it trades up by 0.8%.
One last look at the S&P 500 sectors shows all still trading in the green. The energy (+1.5%) and financials (+1.1%) sectors are up more than 1.0%. The consumer discretionary sector trails the pack but is still up a respectable 0.5%.
WTI crude rose $2.29 (+4.1%) higher to $58.42/bbl, predominately due to a report that OPEC is considering deeper production cuts.
Stocks lose ground on Trump trade comments, but close off lows
03-Dec-19 16:15 ET
Dow -280.23 at 27502.72, Nasdaq -47.34 at 8520.64, S&P -20.67 at 3093.20
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 lost as much as 1.4% on Tuesday after President Trump suggested a trade deal with China might be better if it waited until after the 2020 election. Stocks cut losses during the afternoon, though, as a buy-the-dip mindset left the benchmark index down 0.7% for the session.
The Dow Jones Industrial Average (-1.0%), Nasdaq Composite (-0.6%), and Russell 2000 (-0.3%) also closed well off their session lows.
The negative bias formed before the open as the president spoke to reporters at the NATO summit in London. President Trump may or may not have been using a negotiating tactic, but the negative-sounding headline understandably provided an excuse to take some profits off the table given the uncertainty that remains regarding a deal and the Dec. 15 tariffs.
Some follow-through selling ensued shortly after the open, but selling pressure was kept in check for the rest of the session. Weakness was found primarily in the cyclical sectors, most notably in the S&P 500 energy (-1.6%) and financials (-1.3%) sectors. The Dow Jones Transportation Average fell 2.2%.
Conversely, the real estate (+0.7%) and utilities (+0.5%) sectors were the lone sectors to finish in positive territory, predominately due to the safety trade in Treasuries that sent yields sharply lower.
The 2-yr yield dropped eight basis points to 1.54%, and the 10-yr yield dropped 13 basis points to 1.71%. The U.S. Dollar Index declined 0.1% to 97.74. WTI crude increased 0.3%, or $0.14, to $56.13/bbl.
On a separate trade front, the USTR proposed that $2.4 billion of French imports be taxed up to 100% in response to the country passing a digital tax law that allegedly targets U.S. tech companies. The Wall Street Journal reported that this amounts to less than 5% of the goods that were imported from France in 2018.
Corporate news was relatively light, but a notable story included Cleveland-Cliffs (CLF 7.51, -0.90, -10.7%) agreeing to acquire AK Steel (AKS 3.01, +0.12, +4.2%) for $1.1 billion in an all-stock transaction.
Investors did not receive any economic data on Tuesday. On Wednesday, investors will receive the ISM Non-Manufacturing Index for November, the ADP Employment Change report for November, and the weekly MBA Mortgage Applications Index.
Nasdaq Composite +28.4% YTD
S&P 500 +23.4% YTD
Russell 2000 +18.8% YTD
Dow Jones Industrial Average +17.9% YTD
Market Snapshot
Dow 27502.72 -280.23 (-1.01%)
Nasdaq 8520.64 -47.34 (-0.55%)
SP 500 3093.20 -20.67 (-0.66%)
10-yr Note +32/32 1.716
NYSE Adv 1108 Dec 1732 Vol 859.4 mln
Nasdaq Adv 1177 Dec 1944 Vol 2.3 bln
Industry Watch
Strong: Utilities, Real Estate
Weak: Energy, Financials, Industrials, Consumer Discretionary
Moving the Market
-- Stocks close down, but off lows, after President Trump says it might be better to wait until after 2020 election for U.S.-China trade deal
-- The USTR proposes tariffs of up to 100% on $2.4 billion worth of goods imported from France
--Treasury yields dropped sharply
Oil price settle slightly higher
03-Dec-19 15:25 ET
Dow -280.89 at 27502.06, Nasdaq -52.12 at 8515.86, S&P -20.84 at 3093.03
[BRIEFING.COM] The S&P 500 is down 0.7%, which marks a session high.
Reviewing the S&P 500 sectors shows nine of the 11 sectors trading lower, with energy (-1.4%) declining the most despite a slight increase in the price of oil. The real estate (+0.7%) and utilities (+0.5%) sectors remain in the green.
WTI crude settled up $0.14 (+0.3%) to $56.13/bbl.
Stock Market Update
Weak data, trade angst send stocks lower in first session of December
02-Dec-19 16:25 ET
Dow -268.37 at 27782.95, Nasdaq -97.48 at 8567.98, S&P -27.11 at 3113.87
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 lost 0.9% on Monday, as weak manufacturing data and some trade angst contributed to a rough start to December. The Dow Jones Industrial Average (-1.0%), Nasdaq Composite (-1.1%), and Russell 2000 (-1.0%) slightly underperformed.
Leading the decline were the S&P 500 real estate (-1.8%), industrials (-1.6%), and information technology (-1.4%) sectors, all of which fell more than 1.0%. The consumer staples (+0.3%) and energy (+0.03%) sectors finished in positive territory, with the latter finding support from higher oil prices ($55.99, +0.82, +1.5%).
The day began relatively unchanged, but selling quickly ensued and accelerated after the ISM Manufacturing Index for November declined to 48.1% (Briefing.com consensus 49.2%) from 48.3% in October. The deceleration in activity was disappointing but was especially disheartening after manufacturing PMIs from China and Europe showed improvement.
Dampening risk sentiment was President Trump declaring he will restore tariffs on steel and aluminum imports from Argentina and Brazil after the countries devalued their currencies. On a related note, reports continued to present the existing tariffs on Chinese imports and the Hong Kong Human Rights and Democracy Act as roadblocks to a trade deal.
Other underperforming stocks included those in the trade-sensitive Philadelphia Semiconductor Index (-1.5%) and many highly-valued growth stocks like Roku (ROKU 136.07, -24.30, -15.2%). The latter was downgraded to Underweight at Morgan Stanley with a $110 price target for valuation reasons.
The mood on Wall Street wasn't as negative as the losses would suggest, though. The market had a great month of November, and today might have been exacerbated by some profit-taking interest. It's also worth reminding that the U.S. is more a services economy than a manufacturing economy.
Consumer spending appeared in good shape on this Cyber Monday. Adobe Analytics estimated online sales would total $9.4 billion by the end of today after Black Friday registered a record $7.4 billion in online sales.
Elsewhere, longer-dated U.S. Treasuries succumbed to increased selling pressure after the Financial Times reported that the Fed is considering a rule to allow inflation to exceed its 2.0% target. The 2-yr yield increased two basis points to 1.84%, and the 10-yr yield increased six basis points to 1.84%. The U.S. Dollar Index declined 0.4% to 97.84.
Reviewing Monday's economic data, which included the ISM Manufacturing Index for November and the Construction Spending report for October:
The ISM Manufacturing Index for November registered a 48.1% reading (Briefing.com consensus 49.2%) versus 48.3% for October. The dividing line between expansion and contraction is 50.0%, so the November reading connotes a deceleration in activity from the prior month.
The key takeaway from the report is that it reflects ongoing weakness in the U.S. manufacturing sector, evidenced primarily by the fourth straight decline in the New Orders Index (to 47.2% from 49.1%).
Total construction spending declined 0.8% m/m in October (Briefing.com consensus +0.3%) on the heels of a downwardly revised 0.3% decline (from +0.5%) in September.
The key takeaway from the report is that private construction spending remains weak (down 1.8% yr/yr), saddled by a downturn in nonresidential spending (down 4.3% yr/yr) that has stemmed in large part from a 17.7% decline in commercial spending.
Investors will not receive any notable economic data on Tuesday.
Nasdaq Composite +29.1% YTD
S&P 500 +24.2% YTD
Russell 2000 +19.2% YTD
Dow Jones Industrial Average +19.1% YTD
Market Snapshot
Dow 27782.95 -268.37 (-0.96%)
Nasdaq 8567.98 -97.48 (-1.12%)
SP 500 3113.87 -27.11 (-0.86%)
10-yr Note -4/32 1.823
NYSE Adv 807 Dec 2090 Vol 784.5 mln
Nasdaq Adv 909 Dec 2218 Vol 2.2 bln
Industry Watch
Strong: Consumer Staples, Energy
Weak: Information Technology, Real Estate, Industrials
Moving the Market
-- ISM Manufacturing Index for November comes in weaker than expected
-- President Trump says he will restore tariffs on steel and aluminum imports from Argentina and Brazil
--Cyber Monday sales, better-than-feared manufacturing PMIs from overseas were overshadowed
WTI crude settles up 1.5% amid hopes for further production cuts
02-Dec-19 15:30 ET
Dow -226.47 at 27824.85, Nasdaq -91.30 at 8574.16, S&P -23.32 at 3117.66
[BRIEFING.COM] The S&P 500 in on pace to close out the first day of December in negative territory, as it currently holds a 0.7% decline.
One last look at the S&P 500 sectors shows real estate (-1.3%), information technology (-1.3%), and industrials (-1.2%) down more than 1.0%, while the energy sector (+0.1%) sector remains the only sector trading higher.
WTI crude settled up $0.82 (+1.5%) to $55.99/bbl. Saudi Arabia is reportedly looking to push OPEC for further production cuts in 2020 as it gets ready for its IPO.
Stocks Dip From Record Highs
29-Nov-19 13:15 ET
Dow -112.59 at 28051.32, Nasdaq -39.70 at 8665.46, S&P -12.65 at 3140.98
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market ended a record-setting week on a lower note. The S&P 500 slipped 0.4%, narrowing this week's gain to 1.0% while the Dow (-0.4%) and Nasdaq (-0.5%) recorded comparable losses, trimming their respective week-to-date gains to 0.6% and 1.7%.
The final session of the week began on a modestly lower note and there wasn't enough conviction to turn things around. President Trump signed the Hong Kong Human Rights and Democracy Act into law on Wednesday evening, prompting some angry rhetoric, but no concrete response, from Chinese officials. The signing of that act contributed to today's cautious showing, but the overall response was muted, considering the S&P 500 was only pressured to its closing level from Tuesday after setting a fresh record on Wednesday.
Investor participation was very limited, as fewer than 500 mln shares changed hands at the NYSE floor, well below the 200-day average of 861 mln.
All eleven sectors ended the day in negative territory. The energy sector (-1.0%) spent the day at the bottom of the leaderboard but was able to climb off its low ahead of the close. The sector lost 1.6% for the week, pressured by significant weakness in the price of crude oil. The energy component fell more than 4.0% to $55.52/bbl, sliding back below its 50-day moving average (55.63). OPEC and OPEC+ producers will meet in Vienna next week, but there are concerns that they will not agree to lower output.
The consumer discretionary (-0.8%) sector was the second weakest performer, as retailers trailed the broader market after showing relative strength earlier this week. The SPDR S&P Retail ETF (XRT 44.68, -0.34, -0.8%) registered its first loss in more than a week after touching a three-week high on Wednesday. Telsey Advisory Group shared its view of early holiday sales, noting that store traffic was likely down a touch when compared to last year. However, the firm believes that the softness was offset by an earlier availability of online sales.
Treasuries showed modest losses when the stock market closed with the 10-yr yield up a basis point at 1.78%. However, the Treasury market will not close until 14:00 ET.
Investors did not receive any data today while Monday's economic news will be limited to the 10:00 ET release of October Construction Spending (Briefing.com consensus 0.3%; prior 0.5%) and the ISM Manufacturing Index for November (Briefing.com consensus 49.2; prior 48.3).
Nasdaq Composite +30.6% YTD
S&P 500 +25.3% YTD
Russell 2000 +20.5% YTD
Dow Jones Industrial Average +20.3% YTD
Market Snapshot
Dow 28051.32 -112.59 (-0.40%)
Nasdaq 8665.46 -39.70 (-0.46%)
SP 500 3140.98 -12.65 (-0.40%)
10-yr Note -4/32 1.776
NYSE Adv 994 Dec 1853 Vol 497.3 mln
Nasdaq Adv 1293 Dec 1758 Vol 1.06 bln
Industry Watch
Strong: Real Estate, Financials
Weak: Energy, Consumer Discretionary, Health Care, Materials
Moving the Market
NYSE to close at 13:00 ET: low volume expected
President Trump signs Hong Kong Human Rights and Democracy Act into law
Major indices close at new highs before Thanksgiving Day
27-Nov-19 16:20 ET
Dow +42.32 at 28163.91, Nasdaq +57.24 at 8705.16, S&P +13.11 at 3153.63
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.7%), and Dow Jones Industrial Average (+0.2%) closed at new record highs on this Wednesday before Thanksgiving Day. The Russell 2000 (+0.6%) closed at a new 52-week high.
It was a steady, broad-based advance that was reflected across gains in ten of the 11 S&P 500 sectors, most notably in the consumer discretionary sector (+0.8%). Sentiment on trade and the economy remained upbeat following mostly positive economic reports and some trade comments from President Trump.
Key data points included durable goods orders unexpectedly rising 0.6% in October (Briefing.com consensus -0.7%), weekly jobless claims reversing two straight weekly increases, and Q2 GDP being revised up to 2.1% (Briefing.com consensus 1.9%) from 1.9% in the advance estimate. As for trade, President Trump said the U.S. and China are in the "final throes of a very important deal."
Trading volume was understandably lighter than usual before the holiday, but that shouldn't take away from the bullish narrative propelling stocks higher. Some of the market's most familiar, and widely-owned, stocks in Apple (AAPL 267.84, +3.55, +1.3%), Amazon (AMZN 1818.51, +21.57, +1.2%), and Facebook (FB 202.00, +3.03, +1.5%) saw increased buying interest.
The S&P 500 industrials sector (-0.2%) was the lone holdout today amid losses in Boeing (BA 368.00, -5.51, -1.5%) and Deere (DE 169.06, -7.59, -4.3%). Boeing was pressured by news that the FAA will take control in re-certifying the airworthiness of each 737 MAX plane. In Deere's case, its cautious FY20 guidance outweighed its revenue beat.
Elsewhere, Box (BOX 18.62, +1.92, +11.5%), Guess? (GES 19.53, +0.45, +2.4%), and Autodesk (ADSK 180.18, +9.38, +5.5%) pleased investors with their earnings results, while Dell (DELL 50.32, -2.87, -5.4%), HP Inc. (HPQ 19.79, -0.27, -1.4%), and VMware (VMW 161.15, -3.75, -2.3%) underwhelmed investors.
U.S. Treasuries ended the session on a lower note, sending yields higher across the curve. The 2-yr yield and the 10-yr yield both increased three basis points each to 1.62% and 1.77%, respectively. The U.S. Dollar Index increased 0.2% to 98.40. WTI crude declined 0.5%, or $0.30, to $58.11/bbl.
Reviewing Wednesday's data dump, which was mixed but mostly positive:
Personal income was unchanged m/m in October (Briefing.com consensus 0.3%). Personal spending increased 0.3%, as expected. The PCE Price Index was up 0.2% and the core PCE Price Index, which excludes food and energy, was up 0.1%. Both inflation readings were in-line with expectations.
The key takeaway from the report is that it won't provoke any rate-hike concerns given that there was a yr/yr deceleration in the core PCE Price Index and the total PCE Price Index remains well below the Fed's 2.0% longer-run target.
Durable goods orders increased 0.6% in October (Briefing.com consensus -0.7%) following a downwardly revised 1.4% decline (prior -1.1%) in September. Excluding transportation, orders were also up 0.6% (Briefing.com consensus +0.2%) after a downwardly revised 0.4% decline (from -0.3%) in September.
The key takeaway from the report is that it will serve as a positive input for Q4 GDP forecasts given that shipments of nondefense capital goods orders, excluding aircraft, jumped 0.8% after declining 0.8% in September and 0.1% in August.
Initial claims for the week ending Nov. 23 decreased by 15,000 to 213,000 (Briefing.com consensus 219,000). Continuing claims for the week ending Nov. 16 decreased by 57,000 to 1.640 million.
The key takeaway from the report is that it marked a downturn in initial claims after two, consecutive weekly increases. The overall level of initial claims remains consistent with what one would see in a tight labor market.
The second estimate for Q2 GDP showed a 2.1% increase on an annualized basis (Briefing.com consensus 1.9%) versus a 1.9% increase with the advance estimate. The GDP Price Deflator was up 1.8% (Briefing.com consensus 1.7%) versus 1.7% with the advance estimate.
The key takeaway from the report is that the upward revision was driven predominately by a change in private inventories. Real final sales growth, which excludes that change, was unchanged from the advance estimate of 2.0%.
The Chicago PMI came in at 46.3 (Briefing.com consensus 47.1), up from the 43.2 reading in October.
Pending Home Sales declined 1.7% in October (Briefing.com consensus +0.9%). Today's reading follows an unrevised 1.5% increase in September.
The MBA Mortgage Applications Index increased 1.5% following a 2.2% decline in the prior week.
The Fed's Beige Book for December noted that economic activity was little changed from the previous reporting period. Consumer spending showed moderate growth in some Districts while auto sales and tourism increased in several Districts. Some Districts reported growth in manufacturing while transportation activity was mixed. Employment increased slightly.
As a reminder, the market will be closed for Thanksgiving Day on Thursday and will reopen for a half-day ending at 1:00 p.m. ET on Friday. Investors will not receive any economic data on Friday.
Nasdaq Composite +31.2% YTD
S&P 500 +25.8% YTD
Russell 2000 +21.2% YTD
Dow Jones Industrial Average +20.7% YTD
Market Snapshot
Dow 28163.91 +42.32 (0.15%)
Nasdaq 8705.16 +57.24 (0.66%)
SP 500 3153.63 +13.11 (0.42%)
10-yr Note -23/32 1.765
NYSE Adv 1795 Dec 1091 Vol 724.5 mln
Nasdaq Adv 2030 Dec 1031 Vol 1.7 bln
Industry Watch
Strong: Consumer Discretionary, Communication Services, Information Technology
Weak: Industrials
Moving the Market
-- Major indices close at new highs before Thanksgiving Day
-- Sentiment on trade and the economy remained upbeat following comments from President Trump and decent economic data
-- Relative strength in the mega-cap stocks
-- Lighter than usual trading volume
WTI crude settles Wednesday on lower note
27-Nov-19 15:25 ET
Dow +47.86 at 28169.45, Nasdaq +53.78 at 8701.70, S&P +13.61 at 3154.13
[BRIEFING.COM] The S&P 500 continues to trade near session highs with a gain of 0.4%. The Russell 2000 is up 0.6%.
One last look inside the S&P 500 shows ten of the 11 sectors trading in positive territory. The consumer discretionary (+0.9%), communication services (+0.7%), and health care (+0.6%) sectors outperform, while the industrials sector (-0.2%) remains the lone holdout.
WTI crude settled down $0.30 (-0.5%) to $58.11/bbl.
Stock market extends record run
26-Nov-19 16:20 ET
Dow +55.21 at 28121.59, Nasdaq +15.44 at 8647.92, S&P +6.88 at 3140.52
[BRIEFING.COM] The stock market extended its record run on Tuesday, with the S&P 500 (+0.2%), Dow Jones Industrial Average (+0.2%), and Nasdaq Composite (+0.2%) also closing near their session highs. The Russell 2000 increased 0.1% but closed off its highs.
Leading the advance were the S&P 500 real estate (+1.4%), consumer staples (+0.8%), consumer discretionary (+0.8%), and materials (+0.5%) sectors. The energy (-1.0%), financials (-0.1%), and health care (-0.1%) sectors were the lone holdouts.
Evidently, buying conviction was less pronounced than yesterday, but the same factors that have contributed to the market's record run -- trade progress, low rates, low volatility, and supportive monetary policy expectations -- remained intact. As for trade, China's Commerce Ministry said top negotiators held a phone call in which both sides agreed on how to properly resolve outstanding issues for a Phase One deal.
Other outperformers in the stock market included the SPDR S&P Retail ETF (XRT 44.84, +0.27, +0.6%), which benefited from upbeat earnings forecasts, and the iShares U.S. Home Construction ETF (ITB 45.89, +0.61, +1.4%), which benefited from new home sales in October coming in better than expected at 733,000 units (Briefing.com consensus 710,000).
Best Buy (BBY 81.57, +7.32, +9.9%), Burlington Stores (BURL 225.97, +17.71, +8.5%), and Dick's Sporting Goods (DKS 46.77, +7.34, +18.6%) impressed investors with their results and guidance, the latter of which is especially important for the retailers with the holiday-shopping season nearly in full swing. Dollar Tree (DLTR 95.26, -17.13, -15.2%) failed to meet expectations.
Separately, several Dow components set new all-time highs today. Walt Disney (DIS 151.64, +1.95, +1.3%) was one of them after the stock was initiated with an Outperform rating at Consumer Edge Research with a price target of $175.
U.S. Treasuries continued to increase, which sent yields slightly lower across the curve. The 2-yr yield declined three basis point to 1.58%, and the 10-yr yield declined two basis points to 1.74%. The U.S. Dollar Index declined 0.1% to 98.23. WTI crude increased 0.6%, or $0.32, to $58.30/bbl.
Reviewing Tuesday's batch of economic data, which featured the New Home Sales report for October:
New home sales in October decreased 0.7% m/m to a seasonally adjusted annual rate of 733,000 units (Briefing.com consensus 710,000) from an upwardly revised 738,000 (from 701,000) in September. On a yr/yr basis, new home sales were up 31.6%.
The key takeaway from the report is that the October showing was better than what meets the eye at first blush given the large, upward revision to the prior month's number.
The Conference Board's Consumer Confidence Index for November eased to 125.5 (Briefing.com consensus 126.9) from 125.9 in October, marking the fourth straight monthly retreat.
The key takeaway from the report is that consumers continue to remain relatively upbeat about the short-term outlook based in part on income prospects, which should be a support for holiday spending activity.
The Advance International Trade in Goods report for October showed a narrowing in the deficit to $66.5 billion from $70.5 billion in September. Advance Retail Inventories were up 0.3% on top of a 0.2% increase in September and Advance Wholesale Inventories increased 0.2% after declining 0.7% in September.
The FHFA Housing Price Index for September increased 0.6% following an unrevised 0.2% increase in August.
The S&P Case-Shiller Housing Price Index for September increased 2.1% (Briefing.com consensus 2.6%) following an unrevised 2.0% increase in August.
Looking ahead, investors will be given a cornucopia of reports on Wednesday before Thanksgiving Day: Personal Income and Spending for October, Durable Goods Orders for October, the second estimate for Q3 GDP, Pending Home Sales for October, the weekly reports for MBA Mortgage Applications and jobless claims, and the Fed's Beige Book for December.
Nasdaq Composite +30.3% YTD
S&P 500 +25.3% YTD
Dow Jones Industrial Average +20.6% YTD
Russell 2000 +20.4% YTD
Market Snapshot
Dow 28121.59 +55.21 (0.20%)
Nasdaq 8647.92 +15.44 (0.18%)
SP 500 3140.52 +6.88 (0.22%)
10-yr Note +24/32 1.737
NYSE Adv 1565 Dec 1302 Vol 1.6 bln
Nasdaq Adv 1522 Dec 1595 Vol 2.4 bln
Industry Watch
Strong: Real Estate, Consumer Discretionary, Consumer Staples, Materials
Weak: Energy, Financials, Health Care
Moving the Market
-- Stock markets edges higher into record territory
-- Trade sentiment remained upbeat, low rates and volatility persisted
-- Relative strength in the real estate sector amid the lower Treasury yields
-- Relative strength in retail and homebuilding stocks following earnings reports and housing data, respectively
WTI crude settles higher
26-Nov-19 15:25 ET
Dow +23.79 at 28090.17, Nasdaq +9.29 at 8641.77, S&P +2.41 at 3136.05
[BRIEFING.COM] The S&P 500 (+0.1%) is vying for another record close, although it has been floundering over the past few hours.
One last look inside the benchmark index shows the real estate (+1.0%), consumer staples (+0.6%), and consumer discretionary (+0.6%) sectors atop the standings, while the energy (-1.1%), health care (-0.3%), and financials (-0.3%) sectors trade lower.
WTI crude settled up $0.30 (+0.6%) to $58.30/bbl.
Stock market rallies to new records amid trade, M&A news
25-Nov-19 16:20 ET
Dow +190.85 at 28066.38, Nasdaq +112.60 at 8632.48, S&P +23.35 at 3133.64
https://www.briefing.com/stock-market-update
[BRIEFING.COM] U.S. stocks rallied on Monday to lift the S&P 500 (+0.8%), Nasdaq Composite (+1.3%), and Dow Jones Industrial Average (+0.7%) to new closing records, as investors reacted positively to Chinese efforts to better protect intellectual property rights. Sizable M&A activity across several sectors also supported risk sentiment.
The Russell 2000 rose 2.1%, climbing past its large-cap peers to close at a 52-week high.
Press reports indicated that Chinese government officials called to increase penalties on IP theft, which was interpreted as a move that could help strike a Phase One deal. It should be noted that a separate report from Reuters that suggested a Phase Two deal before the 2020 election is unlikely to be reached did not have a noticeable effect on the market.
The S&P 500 information technology sector (+1.4%), which typically outperforms when the prevailing view on trade is positive, led all sectors in gains amid strength in the semiconductor stocks. NVIDIA (NVDA 221.21, +10.32, +4.9%) was a notable gainer after the stock was upgraded to Overweight from Equal Weight at Morgan Stanley. The Philadelphia Semiconductor Index rose 2.4%.
The health care (+1.1%) and consumer discretionary (+0.9%) sectors also rose more than the S&P 500, while the utilities sector (-0.4%) was today's lone sector to finish in negative territory.
Two of today's M&A deals were ones that were already on the market's radar: Charles Schwab (SCHW 49.31, +1.11, +2.3%) agreed to acquire TD Ameritrade (AMTD 51.78, +3.65, +7.6%) for $26 billion in an all-stock transaction, and LVMH (LVMUY 89.37, +1.98, +2.3%) agreed to acquire Tiffany & Co. (TIF 133.25, +7.74, +6.2%) for $16.2 billion in cash.
New deals included Novartis (NVS 91.30, +0.82, +0.9%) agreeing to acquire The Medicines Co. (MDCO 83.80, +15.25, +22.3%) for $9.7 billion in cash and eBay (EBAY 35.85, +0.73, +2.1%) agreeing to sell StubHub to Viagogo for $4.05 billion in cash.
Strikingly, U.S. Treasuries finished the session on a higher note despite the risk sentiment displayed in the stock market. The 2-yr yield declined two basis points to 1.61%, and the 10-yr yield declined one basis point to 1.76%. The U.S. Dollar Index increased 0.1% to 98.32. WTI crude increased 0.2%, or $0.10, to $57.98/bbl.
Investors did not receive any notable economic data on Monday. On Tuesday, investors will receive New Home Sales for October, the FHFA Housing Price Index for September, the S&P Case-Shiller Home Price Index for September, and the Advance reports for International Trade in Goods, Retail Inventories, and Wholesale Inventories.
Nasdaq Composite +30.1% YTD
S&P 500 +25.0% YTD
Dow Jones Industrial Average +20.3% YTD
Russell 2000 +20.3% YTD
Market Snapshot
Dow 28066.38 +190.85 (0.68%)
Nasdaq 8632.48 +112.60 (1.32%)
SP 500 3133.64 +23.35 (0.75%)
10-yr Note +1/32 1.760
NYSE Adv 20884 Dec 784 Vol 823.0 mln
Nasdaq Adv 2402 Dec 720 Vol 2.2 bln
Industry Watch
Strong: Information Technology, Health Care, Consumer Discretionary
Weak: Utilities
Moving the Market
-- S&P 500, Nasdaq, Dow close at new highs
-- Reported progress toward a Phase One trade agreement; China aims to increase penalties on IP theft
-- Strength in the technology stocks
-- Notable M&A activity across several sectors
WTI crude settles slightly higher
25-Nov-19 15:25 ET
Dow +162.01 at 28037.54, Nasdaq +105.21 at 8625.09, S&P +20.58 at 3130.87
[BRIEFING.COM] The S&P 500 is on pace to close at a record high as it trades up 0.7% near the 3130 level.
One last look at the S&P 500 sectors shows information technology (+1.3%), health care (+0.9%), and consumer discretionary (+0.8%) continuing to lead today's advance. The utilities (-0.4%) and energy (-0.1%) sectors remain in negative territory.
WTI crude settled up $0.10 (+0.2%) to $57.98/bbl.
Stocks close slightly higher on Friday
22-Nov-19 16:10 ET
Dow +109.33 at 27875.53, Nasdaq +13.67 at 8519.88, S&P +6.75 at 3110.29
[BRIEFING.COM] The stock market closed slightly higher on Friday in an uninspiring session. The Dow Jones Industrial Average (+0.4%) edged above the S&P 500 (+0.2%), Nasdaq Composite (+0.2%), and Russell 2000 (+0.3%).
The market heard from both President Trump and his Chinese counterpart, President Xi, on Friday. Mr. Xi called for mutual respect and equality in talks, but reiterated Beijing is willing to fight back if necessary. Mr. Trump said talks are moving along nicely and closing in on a deal, but the president suggested a deal should not be equal and should favor the U.S. instead.
The takeaway was that the market still doesn't know for certain if a Phase One trade agreement will be signed this year, but talks are ongoing and appear to not be escalating. Separately, an upwardly revised reading in the University of Michigan's Index of Consumer Sentiment for November was supportive for equities today.
Leading the market in gains were the S&P 500 financials (+0.8%), consumer discretionary (+0.7%), and industrials (+0.5%) sectors. The real estate (-0.5%) and energy (-0.4%) sectors were today's laggards.
Nordstrom (JWN 37.95, +3.63, +10.6%) and Gap (GPS 16.94, +0.72, +4.4%) were among the biggest earnings-driven gainers in the consumer discretionary space, while an earnings-driven decline in Intuit (INTU 259.81, -11.34, -4.2%) put some pressure on the information technology sector (-0.1%).
Elsewhere, the futuristic design of Tesla's (TSLA 333.04, -21.79, -6.1%) Cybertruck pickup was met with some confusion and mixed reviews. Ultimately, it appeared to be a sell-the-news case after the stock climbed about 40% in the past month.
U.S. Treasuries ended the week on a flat note. The 2-yr yield increased two basis points to 1.63%, and the 10-yr yield was unchanged at 1.77%. The U.S. Dollar Index increased 0.3% to 98.26. WTI crude declined 1.2%, or $0.70, to $57.88/bbl.
Friday's economic data was limited to the revised reading for the University of Michigan's Index of Consumer Sentiment for November:
The final November reading for the University of Michigan Consumer Sentiment Index checked in at 96.8 (Briefing.com consensus 94.9), which exceeded the preliminary estimate of 95.7 and the final October reading of 95.5. The November reading is in close proximity to the average level (97.0) since the start of 2017.
The key takeaway from the report is the acknowledgment that consumers aren't anticipating sizable increases in inflation, unemployment, and interest rates, which suggests consumer spending activity should remain supportive for the U.S. economy.
Investors will not receive any economic data on Monday.
Nasdaq Composite +28.4% YTD
S&P 500 +24.1% YTD
Dow Jones Industrial Average +19.5% YTD
Russell 2000 +17.8% YTD
Market Snapshot
Dow 27875.53 +109.33 (0.39%)
Nasdaq 8519.88 +13.67 (0.16%)
SP 500 3110.29 +6.75 (0.22%)
10-yr Note +1/32 1.768
NYSE Adv 1717 Dec 1152 Vol 717.7 mln
Nasdaq Adv 1778 Dec 1303 Vol 1.9 bln
Industry Watch
Strong: Financials, Consumer Discretionary, Industrials
Weak: Real Estate, Energy
Moving the Market
-- Stock market closes slightly higher; close the week lower for the first time in over one month
-- Relative strength in the financials sector
-- Chinese President Xi called for mutual respect and equality in trade talks; President Trump said deal is close but the U.S. should have the better deal
WTI crude gives up bulk of weekly gains
22-Nov-19 15:25 ET
Dow +109.33 at 27875.53, Nasdaq +11.20 at 8517.41, S&P +6.53 at 3110.07
[BRIEFING.COM] The S&P 500 is on pace to close the session on higher note. The benchmark index is up 0.2%, but is also on pace snap a six-week winning streak.
One last look inside the S&P 500 shows the financials (+0.6%) and consumer discretionary (+0.6%) sectors outpacing the broader market. Conversely, the real estate sector (-0.5%) remains today's laggard.
WTI crude settled down $0.70 (-1.2%) to $57.88/bbl. For the week, the commodity was up just 0.2%.
S&P 500 declines for third straight session
21-Nov-19 16:25 ET
Dow -54.80 at 27766.20, Nasdaq -20.52 at 8506.21, S&P -4.92 at 3103.54
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 lost 0.2% on Thursday for its third straight decline amid some trade-headline exhaustion. The Dow Jones Industrial Average (-0.2%) and Nasdaq Composite (-0.2%) performed in-line with the benchmark index, while the Russell 2000 (-0.5%) underperformed.
Today's trade news had little to do with actual progress and didn't help clarify any uncertainty. Chinese Vice Premier Liu He reportedly extended an invitation to host another round of talks in Beijing and is "cautiously optimistic" about a deal. It was also speculated that the Dec. 15 tariffs could be delayed, even if a deal gets pushed back to next year.
With the market still trading near all-time highs, then, it appeared to be an opportune time to comfortably take some profits. Eight of the 11 S&P 500 sectors finished lower, with the real estate sector (-1.4%) declining the most. The Philadelphia Semiconductor Index pulled back 1.1% after UBS downgraded a trio of semiconductor-equipment companies to Sell.
The energy sector (+1.6%) was today's outright leader, as oil prices ($56.58, +1.67, +2.9%) reacted positively to a Reuters report indicating that OPEC+ is likely to extend production cuts until June 2020.
Perhaps the biggest story of the day, though, was Charles Schwab (SCHW 48.03, +3.28, +7.3%) holding talks to acquire TD Ameritrade (AMTD 48.38, +7.00, +16.9%). CNBC and FOX Business both broke the news, with the latter placing a $26 billion price tag on the potential deal. Both stocks rose considerably, while shares of E*Trade (ETFC 41.58, -4.28, -9.3%) fell 9%.
On the earnings front, the retail space remained in focus. L Brands (LB 17.17, +1.58, +10.1%) was in demand after the company guided Q4 EPS above consensus, while Macy's (M 14.67, -0.35, -2.3%) and BJ's Wholesale (BJ 23.84, -2.09, -8.1%) went on sale following their discouraging results and guidance.
The recent advance in the Treasury market was halted, sending yields higher across the curve. The 2-yr yield increased four basis points to 1.61%, and the 10-yr yield increased three basis points to 1.77%. The U.S. Dollar Index was little changed at 97.98.
Reviewing Thursday's economic data:
Initial claims for the week ending November 16 were unchanged at 227,000 (Briefing.com consensus 216,000). Continuing claims for the week ending November 9 were up 3,000 to 1.695 million.
The key takeaway from the report is that initial claims have been more elevated than usual in recent weeks, suggesting perhaps that they have reached their cyclical bottom. Even so, they remain at relatively low levels indicative of an otherwise solid labor market.
Existing home sales increased 1.9% month-over-month in October to a seasonally-adjusted annual rate of 5.46 million (Briefing.com consensus 5.50 mln) from a downwardly revised 5.36 million (from 5.38 million) in September. Total sales were 4.6% higher than the same period a year ago.
The key takeaway from the report is that upward pressure on prices is likely to persist as the inventory of unsold homes continues to decline while mortgage rates, and unemployment rates, remain low.
The Conference Board's Leading Economic Index (LEI) declined 0.1% in October, in-line with the Briefing.com consensus estimate. The reading for September was revised down to -0.2% (from -0.1%). The October reading was the third straight monthly decline in the Leading Economic Index.
The key takeaway from the report is that the third straight monthly decline left the LEI's six-month growth (-0.1%) in slightly negative territory, which is the first foray into negative territory since May 2016.
The Philadelphia Fed Index for November increased to 10.4 (Briefing.com consensus 5.5) from the 5.6 in October.
Looking ahead, investors will receive the revised reading for the University of Michigan's Index of Consumer Sentiment for November on Friday.
Nasdaq Composite +28.2% YTD
S&P 500 +23.8% YTD
Dow Jones Industrial Average +19.0% YTD
Russell 2000 +17.5% YTD
Market Snapshot
Dow 27766.20 -54.80 (-0.20%)
Nasdaq 8506.21 -20.52 (-0.24%)
SP 500 3103.54 -4.92 (-0.16%)
10-yr Note -24/32 1.778
NYSE Adv 1127 Dec 1718 Vol 827.8 mln
Nasdaq Adv 1320 Dec 1772 Vol 2.1 bln
Industry Watch
Strong: Energy, Communication Services, Health Care
Weak: Real Estate, Consumer Staples, Consumer Discretionary
Moving the Market
-- S&P 500, Dow close lower for third straight session
-- Trade-headline exhaustion; familiar "optimistic" tone
-- Charles Schwab (SCHW) reportedly in talks to acquire TD Ameritrade (AMTD)
-- Strength in the battered energy sector, oil prices gain
WTI crude gains nearly 3%
21-Nov-19 15:30 ET
Dow -28.09 at 27792.91, Nasdaq -13.04 at 8513.69, S&P -2.54 at 3105.92
[BRIEFING.COM] The S&P 500 currently trades lower by 0.1%. At its low, the benchmark index was down 0.5%.
One last look at the S&P 500 sectors shows real estate (-1.2%) declining the most today. The consumer discretionary sector (-0.4%) follows suit. Conversely, the energy sector (+1.5%) is today's outright leader for the second straight session.
WTI crude settled $1.67 (+2.9%) higher to $58.58/bbl following a Reuters report indicating that OPEC+ production cuts are likely to extend through June 2020.
Wall Street closes lower on possible delay in trade deal
20-Nov-19 16:20 ET
Dow -112.93 at 27821.00, Nasdaq -43.93 at 8526.73, S&P -11.72 at 3108.46
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined as much as 0.9% on Wednesday after Reuters reported that a Phase One trade deal may not get completed this year. Stocks cut losses throughout the afternoon, leaving the benchmark index down 0.4% for the session -- comparable to the losses in the Dow Jones Industrial Average (-0.4%), Nasdaq Composite (-0.5%), and Russell 2000 (-0.4%).
The negative-sounding headline conflicted with the optimistic tone struck by top White House officials, including Commerce Secretary Ross just last night. Also transpiring last night was the U.S. Senate passing the Hong Kong Human Rights and Democracy Act, much to the contempt of China. Altogether, it seemed like a good time to take profits, especially if the Dec. 15 tariffs still go into effect.
The trade-sensitive areas of the market like the S&P 500 materials (-1.2%), industrials (-0.8%), and information technology (-0.7%) sectors led the decline. The communication services sector (-0.8%), which contains many growth-oriented stocks, also underperformed.
Unsurprisingly, though, selling pressure quickly abated amid an opportunistic mindset among investors eagerly awaiting a dip. In addition, the details of the report were not as foreboding as the headline, and knee-jerk selling, suggested. Tucked in the report was a line indicating that some "China and trade experts" were still optimistic about a deal in the coming weeks.
Leading the afternoon comeback was the energy sector (+1.0%), which found reprieve amid a 3% rebound in oil prices ($56.91, +1.70, +3.1%). The defensive-oriented utilities (+0.6%), consumer staples (+0.2%), and real estate (+0.03%) sectors also finished in positive territory.
Shares of Target (TGT 126.43, +15.58, +14.1%) climbed 14% after the company impressed investors with its stellar results and upbeat guidance. Lowe's (LOW 117.83, +4.43, +3.9%) also beat earnings estimates and raised its FY20 EPS guidance.
U.S. Treasuries continued to benefit from a defensive mindset, which sent yields lower in a curve-flattening trade. The 2-yr yield declined two basis points to 1.57%, and the 10-yr yield declined five basis points to 1.74%. The U.S. Dollar Index increased 0.1% to 97.91.
Separately, the release of the FOMC Minutes from the October meeting didn't draw much attention, as it was consistent with the prevailing view about monetary policy since that meeting. Economic data was limited to the weekly MBA Mortgage Applications Index, which declined 2.2% following a 9.6% increase in the prior week.
On Thursday, investors will receive the weekly Initial and Continuing Claims report, the Philadelphia Fed Index for November, Existing Home Sales for October, and the Conference Board's Leading Economic Index for October.
Nasdaq Composite +28.5% YTD
S&P 500 +24.0% YTD
Dow Jones Industrial Average +19.3% YTD
Russell 2000 +18.0% YTD
Market Snapshot
Dow 27821.00 -112.93 (-0.40%)
Nasdaq 8526.73 -43.93 (-0.51%)
SP 500 3108.46 -11.72 (-0.38%)
10-yr Note +26/32 1.741
NYSE Adv 1259 Dec 1593 Vol 1.0 bln
Nasdaq Adv 1202 Dec 1892 Vol 2.2 bln
Industry Watch
Strong: Energy, Utilities, Consumer Staples, Real Estate
Weak: Materials, Communication Services, Industrials, Information Technology
Moving the Market
-- Reuters reported that a Phase One trade deal may not be completed this year; stocks cut losses throughout the afternoon
-- Trade-sensitive stocks underperformed; energy stocks and oil prices rebounded
-- Target (TGT) and Lowe's (LOW) pleased investors with earnings results, guidance
WTI crude rebounds 3%
20-Nov-19 15:25 ET
Dow -137.39 at 27796.54, Nasdaq -53.86 at 8516.80, S&P -14.31 at 3105.87
[BRIEFING.COM] The S&P 500 is on pace to end the session on a lower note, as it trades down 0.5%. The Russell 2000 is down 0.3%.
One last look inside the S&P 500 shows communication services (-1.1%), materials (-1.1%), and information technology (-0.9%) leading today's decline. The energy sector (+1.3%) remains on top, followed by utilities (+0.6%), consumer staples (+0.2%), and real estate (+0.1%).
WTI crude rebounded $1.70 (+3.1%) to $56.91/bbl following a better-than-feared rise in weekly crude inventories, according to the EIA.
Stock market closes little changed, retail space hit
19-Nov-19 16:20 ET
Dow -102.20 at 27933.93, Nasdaq +20.72 at 8570.66, S&P -1.85 at 3120.18
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.1% on Tuesday in a mixed session. The retail industry was under pressure following disappointing quarterly results and guidance from Home Depot (HD 225.86, -12.99, -5.4%) and Kohl's (KSS 47.02, -11.38, -19.5%).
The Dow Jones Industrial Average (-0.4%) also finished lower, while the Nasdaq Composite (+0.2%) and Russell 2000 (+0.4%) finished higher. The Nasdaq closed at another record high.
The session began with each of the large-cap indices setting intraday highs despite the negative sentiment in the retail space. The early advance quickly faltered but overall losses were modest, and transient, as the S&P 500 only dipped 0.3% below its flat line before buyers quickly stepped in to buy the dip.
The retail space didn't benefit from an opportunistic mindset, though, as the SPDR S&P Retail ETF (XRT 43.95, -0.87, -1.9%) finished near its lows like the S&P 500 energy (-1.5%) and consumer discretionary (-1.0%) sectors. Home Depot dragged on the consumer discretionary sector while a 3% drop in WTI crude ($55.21, -1.84, -3.2%) weighed on the energy space.
Gains were mainly found in the heavily-weighted S&P 500 health care (+0.7%), information technology (+0.2%), and financials (+0.2%) sectors. The real estate sector (+0.2%) also finished in positive territory.
TJX Companies (TJX 60.64, +1.09, +1.8%) was a bright spot among the retailers after it beat top and bottom-line estimates and raised its full-year guidance. TJX likely tempered some concerns about U.S. consumer spending for the holiday shopping season that may have been engendered by Home Depot and Kohl's.
Separately, shares of AT&T (T 38.00, -1.63, -4.1%) pulled back 4% after the stock was downgraded to Sell from Neutral at MoffettNathanson. Shares of Slack (WORK 21.18, -1.93, -8.4%) sold off on news that Microsoft's (MSFT 150.39, +0.05, unch) competitive product, Teams, increased daily active users by nearly 50% since July.
The U.S. Treasury market was relatively quiet, but demand for longer-dated bonds contributed to some curve-flattening activity. The 2-yr yield was unchanged at 1.59%, and the 10-yr yield declined two basis points to 1.79%. The U.S. Dollar Index increased 0.1% to 97.85.
Tuesday's economic calendar was limited to Housing Starts and Building Permits for October:
Total housing starts increased 3.8% m/m to a seasonally adjusted annual rate of 1.314 million (Briefing.com consensus 1.300 million) while total building permits increased 5.0% m/m to a seasonally adjusted annual rate of 1.461 million (Briefing.com consensus 1.365 million).
There was a sizable jump in starts (+8.6%) and permits (+8.2%) for multi-unit dwellings, yet the key takeaway from the report is that starts (+2.0%) and permits (+3.2%) increased for single-family units in an inventory-constrained environment for single-family homes.
Looking ahead, the FOMC Minutes from the October 30-31 meeting and the weekly MBA Mortgage Applications Index will be released on Wednesday.
Nasdaq Composite +29.2% YTD
S&P 500 +24.5% YTD
Dow Jones Industrial Average +19.8% YTD
Russell 2000 +18.5% YTD
Market Snapshot
Dow 27933.93 -102.20 (-0.36%)
Nasdaq 8570.66 +20.72 (0.24%)
SP 500 3120.18 -1.85 (-0.06%)
10-yr Note +3/32 1.784
NYSE Adv 1351 Dec 1507 Vol 842.4 mln
Nasdaq Adv 1806 Dec 1278 Vol 2.1 bln
Industry Watch
Strong: Health Care, Information Technology, Real Estate, Financials
Weak: Consumer Discretionary, Energy
Moving the Market
-- Stock market closes mixed; weakness in the retail space
-- Home Depot (HD), Kohl's (KSS) disappoint with quarterly results and guidance
-- Relative strength in the health care sector
-- WTI crude drops 3%, weighs on energy stocks
Stock market posts incremental gains, closes at new highs
18-Nov-19 16:20 ET
Dow +31.33 at 28036.13, Nasdaq +9.11 at 8549.94, S&P +1.57 at 3122.03
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.1%), Dow Jones Industrial Average (+0.1%), and Nasdaq Composite (+0.1%) eked out incremental gains to close at record highs on Monday. The Russell 2000 (-0.3%) closed in negative territory.
The day began with the market digesting a tweet from a China-based CNBC reporter, who said she was informed by a Chinese government source that Beijing is pessimistic about a trade deal because President Trump hasn't supported a tariff rollback. Based on the modest losses and ensuing price action, the market presumably remained optimistic about a Phase One agreement.
The large-cap indices eased their way into positive territory thanks to the turnarounds in the S&P 500 consumer discretionary (+0.3%), information technology (+0.3%), and communication services (+0.3%) sectors. Consistent leaders included the consumer staples (+0.5%) and real estate (+0.5%) sectors, as the negative-sounding trade headline likely fostered some conservative-minded interest.
The trade-sensitive industrials (-0.3%) and materials (-0.2%) sectors were among today's laggards, but their losses were small compared to the 1.3% drop in the energy sector, which was pressured by the decline in oil prices ($57.04, -0.71, -1.2%).
Generally, there wasn't any concerted effort to sell a market trading at all-time highs, but investors weren't eager to embrace risk, either. The trend has been positive, which has likely drawn in some reluctant investors into the market, and today simply may have been a natural breather for a market breaking out to new highs.
Notable corporate news included HP Inc. (HPQ 20.01, -0.17, -0.8%) turning down the takeover bid from Xerox (XRX 39.30, +0.36, +0.9%). HP remained open to a deal, though. Netflix (NFLX 302.57, +7.54, +2.6%) shares outperformed on speculation that either Carl Icahn or Bill Ackman built a large stake in the company.
U.S. Treasuries extended last week's advance, pushing yields slightly lower across the curve. The 2-yr yield declined two basis points to 1.59%, and the 10-yr yield declined three basis points to 1.81%. The U.S. Dollar Index declined 0.2% to 97.80.
Separately, the NAHB Housing Market Index for November declined to 70 from 71 in October. Investors will receive Housing Starts and Building Permits for October on Tuesday.
Nasdaq Composite +28.9% YTD
S&P 500 +24.5% YTD
Dow Jones Industrial Average +20.2% YTD
Russell 2000 +18.1% YTD
Market Snapshot
Dow 28036.13 +31.33 (0.11%)
Nasdaq 8549.94 +9.11 (0.11%)
SP 500 3122.03 +1.57 (0.05%)
10-yr Note +2/32 1.810
NYSE Adv 1247 Dec 1639 Vol 829.3 mln
Nasdaq Adv 1347 Dec 2.0 bln Vol 2.0 bln
Industry Watch
Strong: Consumer Staples, Real Estate, Consumer Discretionary
Weak: Energy, Health Care, Industrials, Materials
Moving the Market
-- Large-cap indices post incremental gains to close at new highs
-- China-based CNBC reporter says Beijing is pessimistic about a trade deal because President Trump did not endorse a tariff rollback, per government source
-- Oil prices decline, Treasuries gain
-- Relative strength in the real estate and utilities sectors
WTI crude gives back 1% amid nervous-sounding trade headline
18-Nov-19 15:25 ET
Dow +22.66 at 28027.46, Nasdaq +8.07 at 8548.90, S&P +0.31 at 3120.77
[BRIEFING.COM] The S&P 500 currently trades at its unchanged mark. Trade has been at the forefront of headlines, but today could simply be a natural breather for a market hitting record highs.
One last look inside the S&P 500 shows the real estate (+0.5%) and consumer staples (+0.5%) sectors continuing to outpace the broader market, while the energy sector (-1.4%) remains today's laggard amid a decline in oil prices.
WTI crude futures settled down $0.71 (-1.2%) to $57.04/bbl amid lingering trade concerns that followed reported pessimism from China.
Dow closes above 28,000 amid continued trade optimism
15-Nov-19 16:25 ET
Dow +222.93 at 28004.80, Nasdaq +61.81 at 8540.83, S&P +23.83 at 3120.46
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market rallied higher into record territory on Friday, with risk sentiment fueled by NEC Director Larry Kudlow saying the U.S. and China are close to reaching a Phase One trade agreement. The S&P 500 (+0.8%) closed above the 3100 level, and the Dow Jones Industrial Average (+0.8%) closed above 28,000 -- both for the first time.
The Nasdaq Composite (+0.7%) also closed at a record high, while the Russell 2000 (+0.5%) continued to trail its large-cap peers.
The S&P 500 health care sector did the heavy lifting on Friday, climbing 2.2%, even as the Trump administration announced an initiative to increase price transparency from hospitals and insurers. Investors were evidently unconcerned about the proposal leading to an adverse effect on earnings.
No other S&P 500 sector increased 1.0%, but the continued outperformance of Apple (AAPL 265.76, +3.12, +1.2%), Microsoft (MSFT 149.97, +1.91, +1.3%), and Alphabet (GOOG 1334.87, +23.41, +1.8%) should not be understated. The SPDR S&P Retail ETF (XRT 44.86, +0.44, +1.0%) and Philadelphia Semiconductor Index (+0.9%) also showed relative strength.
Retail stocks extended yesterday's advance after October retail sales increased 0.3% m/m (Briefing.com consensus +0.2%). Semiconductor stocks benefited from the trade news and the solid results and guidance from Applied Materials (AMAT 62.06, +5.10, +9.0%). Conservative guidance from NVIDIA (NVDA 204.19, -5.60, -2.7%) did limit gains, though.
Interestingly, the trade-sensitive materials sector (-0.1%) was the lone holdout on Friday.
Separately, T-Mobile US (TMUS 78.07, +1.23, +1.6%) CEO John Legere is no longer considering the CEO role at WeWork, according to CNBC. Shares of RH (RH 188.47, +13.25, +7.6%) and Occidental Petroleum (OXY 38.95, +1.19, +3.2%) outperformed after Warren Buffet's Berkshire Hathaway (BRK.B 219.74, +0.38, +0.2%) disclosed new positions in the companies.
U.S. Treasuries didn't sell off despite the risk-on mentality in the stock market, but they did edge lower. The 2-yr yield increased three basis points to 1.61%, and the 10-yr yield increased two basis points to 1.83%. The U.S. Dollar Index declined 0.2% to 97.99. WTI crude rose 0.9%, or $0.99, to $57.75/bbl.
Reviewing Friday's batch of economic data:
October retail sales increased 0.3% m/m (Briefing.com consensus +0.2%) following an unrevised 0.3% decline in September. Excluding autos, retail sales jumped 0.2% (Briefing.com consensus +0.4%) after declining an unrevised 0.1% decline in September.
The key takeaway from the report, other than it shows continued growth in discretionary spending, is that it will be a positive input for Q4 GDP. Core retail sales, which exclude autos, gasoline, building materials, and food services and drinking places sales, and which factor into the goods component of the PCE calculation, were up 0.3%.
Import prices for October were down 0.5%. Excluding fuel, they were down 0.2%. Export prices were down 0.1%. Excluding agricultural products, they were down 0.3%.
The key takeaway from the report is that it points to an indolent inflation backdrop.
Industrial production slumped 0.8% in October (Briefing.com consensus -0.4%) on the heels of an upwardly revised 0.3% decline (from -0.4%) in September. The capacity utilization rate fell to 76.7% (Briefing.com consensus 77.1%) from 77.5% in September.
The key takeaway from the report is that, while the GM strike had a big impact on industrial production, things were still weak excluding that impact. To wit, the Federal Reserve reports industrial production declined 0.5% excluding motor vehicles and parts.
Total business inventories were unchanged month-over-month in September (Briefing.com consensus +0.1%) after a downwardly revised 0.1% decline (from 0.0%) in August. Total business sales were down 0.2% following a downwardly revised 0.1% increase (from 0.2%) in August.
The key takeaway from the report is that the gap between inventory growth on a yr/yr basis (+3.7%) and sales growth (+0.5%) remains, which should help keep prices in check.
Looking ahead, investors will receive Net Long-Term TIC Flows for September on Monday.
Nasdaq Composite +28.7% YTD
S&P 500 +24.5% YTD
Dow Jones Industrial Average +20.1% YTD
Russell 2000 +18.4% YTD
Market Snapshot
Dow 28004.80 +222.93 (0.80%)
Nasdaq 8540.83 +61.81 (0.73%)
SP 500 3120.46 +23.83 (0.77%)
10-yr Note -1/32 1.833
NYSE Adv 1787 Dec 1070 Vol 859.0 mln
Nasdaq Adv 1860 Dec 1223 Vol 2.0 bln
Industry Watch
Strong: Health Care, Information Technology, Communication Services
Weak: Materials, Consumer Staples
Moving the Market
-- S&P 500, Dow, and Nasdaq close at record highs; Dow breaks 28,000 for the first time
-- NEC Director Larry Kudlow said a Phase One trade agreement is close to being reached
-- Applied Materials (AMAT) led the semiconductor space higher on solid results and guidance
-- Strength in the health care space
-- October retail sales rebounded slightly more than expected (0.3% actual vs 0.2% Briefing.com consensus)
WTI crude gains nearly 2%
15-Nov-19 15:25 ET
Dow +190.26 at 27972.13, Nasdaq +44.06 at 8523.08, S&P +17.66 at 3114.29
[BRIEFING.COM] The S&P 500 (+0.6%) is on pace to close out the session above the 3100 level for the first time.
One last look inside the S&P 500 shows the health care sector (+2.3%) way out ahead of the industrials (+0.6%) and information technology (+0.5%) sectors. The materials (-0.3%) and consumer staples (-0.2%) sectors remain the lone sectors trading lower.
WTI crude settled up $0.99 (+1.7%) to $57.75/bbl amid the upbeat trade mood on Wall Street.
S&P 500 ekes out record close, Cisco falls on cautious outlook
14-Nov-19 16:20 ET
Dow -1.63 at 27781.87, Nasdaq -3.08 at 8479.02, S&P +2.59 at 3096.63
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.1%) eked out another record close on Thursday despite Cisco Systems (CSCO 44.91, -3.55, -7.3%) dropping more than 7% after it issued downside quarterly guidance. The Dow Jones Industrial Average (unch), Nasdaq Composite (unch), and Russell 2000 (unch) finished closer to their flat lines.
Cisco blamed familiar macro uncertainties like Brexit and trade for its cautious outlook, but investors construed the situation as a company-specific issue. The broader market held steady throughout the morning, until shares of Walmart (WMT 120.65, -0.33, -0.3%), which were up more than 3% on positive earnings results and an upbeat outlook, turned negative.
The turnaround in Walmart shares coincided with a measly 0.4% decline in the S&P 500 before the benchmark index mustered its way back into positive territory by late afternoon. The real estate sector (+0.8%) led the comeback effort amid another decline in Treasury yields, while the energy sector (-0.3%) fell behind amid lower oil prices ($56.76, -0.32, -0.6%).
The 2-yr yield declined five basis points to 1.58%, and the 10-yr yield declined six basis points to 1.82%. The U.S. Dollar Index declined 0.2% to 98.17.
Demand for Treasuries may have been driven in part by continued misgivings about a "Phase One" trade agreement, which the U.S. and China are struggling to complete, according to a new report from The Financial Times. The stock market, though, remained undeterred by any negative-sounding trade news that doesn't come directly from President Trump, China, or top negotiators.
Today also featured notable analyst recommendations. Apple (AAPL 262.64, -1.83, -0.7%) was downgraded to Sell from Hold at Maxim Group, which may have contributed to a slight pullback in the stock. Kraft Heinz (KHC 30.96, -1.94, -5.9%) was downgraded to Sell from Neutral at Goldman, which certainly dragged the stock lower.
Separately, Fed Chair Powell's final day of testimony on Capitol Hill went largely unnoticed due to it being a reiteration of what the market already knows about monetary policy and the economic outlook.
Reviewing Thursday's economic data, which included the Producer Price Index and the weekly report for Initial and Continuing Claims:
The Producer Price Index for final demand jumped 0.4% m/m in October (Briefing.com consensus +0.3%) while the index for final demand, less food and energy, rose 0.3% (Briefing.com consensus +0.2%). The yr/yr change for these measures checked in at 1.1% and 1.6%, respectively, versus 1.4% and 2.0% in September.
The key takeaway from the report is that its surprise potential was mitigated by the prior release of the CPI data; moreover, the monthly headline surprise was neutralized by the year-over-year deceleration seen in the changes for total PPI and core PPI.
Initial claims increased by 14,000 to 225,000 (Briefing.com consensus 214,000) for the week ending November 9. Continuing claims for the week ending November 2 decreased by 10,000 to 1.683 million.
The key takeaway from the report is the recognition that the variance in the weekly initial claims number wasn't enough to change the otherwise supportive trend in the four-week moving average in a material way.
Looking ahead, investors will receive the following economic reports on Friday: Retail Sales for October, the Empire State Manufacturing Survey for November, Export and Import Prices for October, Industrial Production and Capacity Utilization for October, and Business Inventories for September.
Nasdaq Composite +27.8% YTD
S&P 500 +23.5% YTD
Dow Jones Industrial Average +19.1% YTD
Russell 2000 +17.8% YTD
Market Snapshot
Dow 27781.87 -1.63 (-0.01%)
Nasdaq 8479.02 -3.08 (-0.04%)
SP 500 3096.63 +2.59 (0.08%)
10-yr Note +28/32 1.822
NYSE Adv 1639 Dec 1225 Vol 719.0 mln
Nasdaq Adv 1437 Dec 1639 Vol 2.1 bln
Industry Watch
Strong: Real Estate, Materials, Consumer Discretionary
Weak: Energy, Information Technology
Moving the Market
-- S&P 500 ekes out another record close
-- Cisco Systems (CSCO) drops 7% on disappointing guidance; Walmart (WMT) gives up gains despite beating earning estimates and raising outlook
-- U.S. Treasuries extend weekly advance
WTI crude gives up intraday gain as inventories rise
14-Nov-19 15:25 ET
Dow -19.12 at 27764.38, Nasdaq -5.16 at 8476.94, S&P +0.19 at 3094.23
[BRIEFING.COM] The S&P 500 and Russell 2000 continue to trade unchanged.
One last look at the S&P 500 sectors shows the real estate (+0.5%) and materials (+0.4%) sectors outperforming the broader market, while the energy (-0.4%) and consumer staples (-0.3%) sectors underperform. The latter remains pressured by Walmart (WMT 119.78, -1.22, -1.0%).
WTI crude settled down $0.32 (-0.6%) to $56.76/bbl to give up an early intraday gain. Weekly crude oil inventories increased by 2.2 million barrels after increasing by 7.2 million barrels during the previous week.
S&P 500, Dow close at record highs; Disney climbs 7%13-Nov-19 16:20 ET
Dow +92.10 at 27783.50, Nasdaq -3.99 at 8482.10, S&P +2.20 at 3094.04
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.1%) and Dow Jones Industrial Average (+0.3%) closed at record highs on Wednesday, even as trade reports revealed that the U.S. and China continue to waver on familiar issues. Walt Disney (DIS 148.72, +10.14, +7.3%) deserves some credit, with shares rising more than 7% after it said 10 million users have already signed up for Disney+.
The Nasdaq Composite (-0.1%) and Russell 2000 (-0.4%) finished slightly lower.
The Wall Street Journal published two separate reports on trade. The first one stated the U.S. remains hesitant on removing existing tariffs on imported goods from China. The second report outlined China's unwillingness to commit to purchasing a specific amount of farm goods and its resistance to agree to enforcement mechanisms.
Many of the cyclical sectors within the S&P 500 subsequently underperformed, but the broader market remained resilient to any sort of pullback. This might have been due to the market still expecting a "Phase One" deal to get signed and Fed Chair Powell upholding the market's positive view on monetary policy in the first part of his two-day congressional testimony.
Risk sentiment was manifested more conservatively in the defensive-oriented utilities (+1.5%), real estate (+1.1%), and consumer staples (+0.9%) sectors. The financials (-0.6%), energy (-0.5%), materials (-0.5%), industrials (-0.4%), and consumer discretionary (-0.4%) sectors finished in negative territory.
The communication services (+0.4%) and information technology (+0.3%) sectors also finished higher, largely due to the continued outperformance in shares of Apple (AAPL 264.47, +2.51, +1.0%) and Disney. Apple was initiated with an Outperform rating at RBC Capital Mkts with a price target of $295.
Separately, Nike (NKE 91.29, +1.79, +2.0%) said it will stop selling products directly to Amazon (AMZN 1753.11, -24.89, -1.4%). On a related note, Nike was initiated with an Overweight rating at Barclays with a price target of $111.
U.S. Treasuries finished the session higher as part of the defensive trade today. The 2-yr yield declined two basis points to 1.63%, and the 10-yr yield declined four basis points to 1.87%. The U.S. Dollar Index finished little changed at 98.33. WTI crude increased 0.4% (+$0.23) to $57.08/bbl.
Reviewing Wednesday's economic data, which included Consumer Price Index for October, the weekly MBA Mortgage Applications Index, and the Treasury Budget for October:
Total CPI was up 0.4% m/m in October (Briefing.com consensus +0.3%), driven largely by higher energy costs, while core CPI, which excludes food and energy, increased 0.2%, as expected. The monthly changes left the yr/yr changes at 1.8% for total CPI (up from 1.7% previously) and 2.3% for core CPI (down from 2.4% previously).
The key takeaway from the report is that consumer inflation is firming up, but it isn't turning up yet to an actionable, rate-hike degree for the Federal Reserve.
The weekly Mortgage Applications Index jumped 9.6% following a 0.1% decline in the prior week.
The Treasury Budget for October showed a deficit of $134.5 billion versus a deficit of $100.5 billion in the same period a year ago.
October marks the start of fiscal year 2020 for the government. The budget deficit over the last 12 months is $1.018 trillion.
Looking ahead, investors will receive the the Producer Price Index for October and the weekly Initial and Continuing Claims report on Thursday.
Nasdaq Composite +27.8% YTD
S&P 500 +23.4% YTD
Dow Jones Industrial Average +19.1% YTD
Russell 2000 +17.8% YTD
Market Snapshot
Dow 27783.50 +92.10 (0.33%)
Nasdaq 8482.10 -3.99 (-0.05%)
SP 500 3094.04 +2.20 (0.07%)
10-yr Note +3/32 1.882
NYSE Adv 1320 Dec 1542 Vol 798.6 mln
Nasdaq Adv 1267 Dec 1825 Vol 2.1 bln
Industry Watch
Strong: Utilities, Real Estate, Consumer Staples
Weak: Financials, Energy, Materials, Industrials, Consumer Discretionary
Moving the Market
-- S&P 500 and Dow close at record highs with modest gains; Walt Disney (DIS) shares rise after 10 million users signed up for Disney+
-- U.S. and China at odds over removing existing tariffs, committing to agricultural purchases and enforcement mechanisms
-- Fed Chair Powell delivers congressional testimony that upheld market's favorable view on monetary policy
-- Relative strength in the defensive-oriented sectors
S&P 500, Nasdaq extend record run
12-Nov-19 16:20 ET
Nasdaq +21.81 at 8486.09, S&P +4.83 at 3091.84
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 clipped the 3100 level for the first time on Tuesday, but the record run lost some steam to leave the benchmark index up just 0.2% and below 3100 on a closing basis. The Nasdaq Composite (+0.3%) closed at a record high, while the Dow Jones Industrial Average (unch) and Russell 2000 (unch) finished unchanged.
The session began with all 11 S&P 500 sectors gaining traction in a momentum trade ahead of President Trump's lunchtime speech at the Economic Club of New York. Among many things, the president said tariffs on Chinese imports will go up "substantially" if a trade deal doesn't get done, but nothing President Trump said caught the market off guard.
This lack of positive catalysts from the president likely curbed some enthusiasm among investors hoping for more substance in the speech. Buying enthusiasm really started to fade, though, before the speech when the S&P 500 ran into some resistance at the 3100 level.
It was still a generally positive day for the stock market, which has been resilient to any pullback effort this month. Relative strength was found in the S&P 500 health care (+0.6%) and materials (+0.4%) sectors, while relative weakness rested in the real estate (-0.8%) and energy (-0.6%) sectors.
The market also received support from the earnings-driven gains in Rockwell Automation (ROK 198.01, +18.81, +10.5%), DXC Technology (DXC 35.25, +5.85, +19.9%), and Tyson Foods (TSN 88.88, +6.15, +7.4%), as well as the healthy gains from Facebook (FB 194.47, +4.86, +2.6%) and Walt Disney (DIS 138.58, +1.84, +1.4%).
Facebook introduced "Facebook Pay," a feature that will allow users to send payments across its platforms. Disney officially launched its streaming service, which experienced some technical difficulties due to higher-than-expected consumer demand.
The Treasury market reopened for trading after being closed for Veterans Day yesterday. An uptick in demand pushed the 2-yr yield down one basis point to 1.65% and the 10-yr yield down two basis points to 1.91%. The U.S. Dollar Index increased 0.2% to 98.34. WTI crude was unchanged at $56.85/bbl.
Tuesday's economic data was limited to the Small Business Optimism Index for October, which improved to 102.4 from 101.8 in September. On Wednesday, investors will receive the Consumer Price Index for October, the Treasury Budget for October, and the weekly MBA Mortgage Applications Index.
Nasdaq Composite +27.9% YTD
S&P 500 +23.3% YTD
Dow Jones Industrial Average +18.7% YTD
Russell 2000 +18.3% YTD
Market Snapshot
Dow 27691.40 (%)
Nasdaq 8486.09 +21.81 (0.26%)
SP 500 3091.84 +4.83 (0.16%)
10-yr Note +2/32 1.918
NYSE Adv 1364 Dec 1475 Vol 790.6 mln
Nasdaq Adv 1542 Dec 1524 Vol 2.0 bln
Industry Watch
Strong: Health Care, Materials
Weak: Energy, Real Estate
Moving the Market
-- S&P 500, Nasdaq extend record run with modest gains
-- President Trump's speech on trade and economic policy provided no new information for the market
-- S&P 500 ran into some resistance at the 3100 level
WTI crude settles unchanged
12-Nov-19 15:25 ET
Dow -23.17 at 27668.36, Nasdaq +9.77 at 8474.05, S&P +1.43 at 3088.44
[BRIEFING.COM] The S&P 500 is wavering around its flat line right now with a fractional gain. The Russell 2000 is trading unchanged.
One last look at the S&P 500 sectors shows most sectors trading within 0.2% of their flat lines. The health care sector (+0.5%) is outperforming the market, while the energy sector (-0.9%) underperforms to give back some of its monthly gains.
WTI crude futures settled the day unchanged at $56.85/bbl.
Dow ekes out record close, Boeing and Walgreens gain
11-Nov-19 16:15 ET
Dow +10.25 at 27691.53, Nasdaq -11.04 at 8464.28, S&P -6.07 at 3087.01
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined just 0.2% on Monday, while the Dow Jones Industrial Average (+0.04%) eked out a record close amid strength in Boeing (BA 366.96, +15.96, +4.6%) and Walgreens Boots Alliance (WBA 62.25, +3.01, +5.1%). The Nasdaq Composite lost 0.1%, and the Russell 2000 lost 0.3%.
Boeing said it expects 737 MAX deliveries to resume in December and commercial service to resume in January. Walgreens received a leveraged buyout offer from KKR & Co. (KKR 29.26, +0.11, +0.4%), according to Bloomberg.
The nice gain in Boeing was an influential driver not only in the Dow but also the S&P 500 industrials sector (+0.1%), which joined the real estate (+0.2%) and information technology (+0.1%) sectors in positive territory. The tech sector overcame a negative start, predominately due to Apple (AAPL 262.20, +2.06, +0.8%) extending its record run on no specific catalyst.
Eight of the other 11 S&P 500 sectors finished in negative territory, with utilities (-0.7%), energy (-0.6%), and health care (-0.4%) underperforming the broader market.
Despite those losses, today proved to be another resilient session considering the S&P 500 declined as much as 0.6% shortly after the open in a profit-taking trade. Some trade uncertainty and another bout of violence in the democratic protests in Hong Kong may have restrained risk sentiment.
Like past sessions, though, there still wasn't a sustained effort to sell a market trading at all-time highs. Instead, investors bought the dip to quickly pare the market's early losses.
Separately, T-Mobile US (TMUS 79.62, -1.32, -1.6%) was a notable laggard after The Wall Street Journal reported that its CEO John Legere is in talks to become the next CEO of WeWork. Qualcomm (QCOM 91.84, -2.19, -2.3%) underperformed after the stock was downgraded to Equal-Weight from Overweight at Morgan Stanley.
The U.S. Treasury market was closed for Veterans Day and investors did not receive any economic data. The U.S. Dollar Index declined 0.1% to 98.22. WTI crude declined 0.6% to $56.88/bbl.
On Tuesday, investors will receive the NFIB Small Business Optimism Index for October.
Nasdaq Composite +27.6% YTD
S&P 500 +23.1% YTD
Dow Jones Industrial Average +18.7% YTD
Russell 2000 +18.3% YTD
Market Snapshot
Dow 27691.53 +10.25 (0.04%)
Nasdaq 8464.28 -11.04 (-0.13%)
SP 500 3087.01 -6.07 (-0.20%)
10-yr Note 0/32 1.942
NYSE Adv 1267 Dec 1578 Vol 760.3 mln
Nasdaq Adv 1412 Dec 1662 Vol 1.7 bln
Industry Watch
Strong: Real Estate, Industrials, Information Technology
Weak: Energy, Utilities, Health Care
Moving the Market
-- S&P 500 closes slightly lower, while Dow ekes out record close
-- Boeing (BA) expects 737 MAX deliveries to resume in December, commercial service in January
-- Walgreens Boots Alliance (WBA) reportedly received a leveraged buyout offer
-- Bond market was closed for Veterans Day
WTI crude settles modestly lower
11-Nov-19 15:30 ET
Dow +11.56 at 27692.84, Nasdaq -13.75 at 8461.57, S&P -6.56 at 3086.52
[BRIEFING.COM] The S&P 500 is on pace to end the day lower as it holds a modest 0.2% loss. At its low, the benchmark index was down 0.6%.
One last look at the S&P 500 sectors shows eight trading lower with relative weakness found in the utilities (-0.6%), health care (-0.5%), and energy (-0.5%) sectors. Conversely, the real estate (+0.6%), industrials (+0.1%), and information technology (+0.1%) sectors trade higher.
WTI crude declined $0.33 (-0.6%) to $56.88/bbl.
Major indices squeeze out record closes to end week
08-Nov-19 16:25 ET
Dow +6.44 at 27681.28, Nasdaq +40.80 at 8475.32, S&P +7.90 at 3093.08
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.5%), and Dow Jones Industrial Average (+0.02%) closed at record highs on Friday, even as President Trump said he had not yet agreed to roll back existing tariffs. The Russell 2000 increased 0.3%.
President Trump's statement refuted China's claim that an agreement was already made, but the market maintained an optimistic view on trade. It presumably continued to think that a "Phase One" deal will still get signed considering the president didn't technically rule out the possibility to roll back tariffs and White House trade advisor Peter Navarro said the U.S. might be willing to delay the Dec. 15 tariffs.
There still wasn't much conviction from buyers or sellers for most of the session, though, until a wave of buyers pushed the market to session highs into the close. The S&P 500 health care (+0.8%) and information technology (+0.6%) sectors posted decent gains, while the energy (-0.8%), utilities (-0.4%), and real estate (-0.2%) sectors finished lower.
Walt Disney (DIS 137.96, +5.00, +3.8%) beat earnings estimates and shares of the Dow component rose accordingly. Its outperformance also helped the S&P 500 communication services sector (+0.4%) overcome weakness in Verizon (VZ 59.35, -1.18, -2.0%), which fell on no confirmed news catalyst.
The trade-sensitive Philadelphia Semiconductor Index (+0.5%) continued to rise amid the upbeat trade sentiment. The group also benefited from follow-through buying in shares of Qualcomm (QCOM 94.03, +4.05, +4.5%) after it reported positive earnings results earlier in the week.
In other corporate news, Southwest's (LUV 58.18, -0.06, -0.1%) 10-Q stated it plans to remove Boeing's (BA 351.00, -6.31, -1.8%) 737 MAX from its flight schedule through March 6, 2020. This is a one-month delay. Gap, Inc. (GPS 16.68, -1.38, -7.6%) announced the departure of its CEO and issued downside EPS guidance.
The U.S. Treasury market finished relatively unchanged in a quiet session. The 2-yr yield declined one basis point to 1.66%, and the 10-yr yield increased one basis point to 1.93%. The U.S. Dollar Index increased 0.2% to 98.37. WTI crude increased 0.2% (+$0.10) to $57.21/bbl.
Reviewing Friday's economic data, which included the preliminary University of Michigan Consumer Sentiment Index for November and the Wholesale Inventories report for September:
The preliminary University of Michigan Consumer Sentiment Index for November crossed at 95.7 (Briefing.com consensus 95.0), which was slightly better than expected and roughly even with the final reading of 95.5 for October.
The key takeaway from the report is that consumer expectations increased from October, underscoring an otherwise confident attitude that should continue to manifest itself in relatively solid consumer spending activity.
Wholesale inventories declined 0.4% m/m in September (Briefing.com consensus -0.1%), on top of a downwardly revised 0.1% increase (from +0.2%) in August. That was the largest decline since October 2017. Wholesale sales were flat in September after declining 0.1% in August.
The key takeaway from the report is that it could 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 +27.7% YTD
S&P 500 +23.4% YTD
Dow Jones Industrial Average +18.7% YTD
Russell 2000 +18.6% YTD
Market Snapshot
Dow 27681.28 +6.44 (0.02%)
Nasdaq 8475.32 +40.80 (0.48%)
SP 500 3093.08 +7.90 (0.26%)
10-yr Note -2/32 1.942
NYSE Adv 1519 Dec 1383 Vol 824.0 mln
Nasdaq Adv 1675 Dec 1390 Vol 2.0 bln
Industry Watch
Strong: Health Care, Information Technology
Weak: Energy, Utilities, Real Estate
Moving the Market
-- S&P 500, Nasdaq, Dow close week at record highs
-- President Trump said he had yet to agree to roll back existing tariffs; market remained optimistic
-- Walt Disney (DIS) beat earnings expectations
-- Relative strength in the health care sector
WTI crude futures inch higher, up nearly 2% this week
08-Nov-19 15:25 ET
Dow -19.22 at 27655.62, Nasdaq +28.43 at 8462.95, S&P +3.18 at 3088.36
[BRIEFING.COM] The S&P 500 is up near session highs with a gain of 0.1%. Any gain today would be a record close for the benchmark index.
One last look inside the S&P 500 sectors shows the health care sector (+0.7%) outperforming after AbbVie (ABBV 85.19, +3.18, +3.9%) submitted an FDA application for a cancer treatment. Conversely, the energy (-0.7%) and utilities (-0.7%) sectors remain today's laggards.
WTI crude futures settled up $0.10 (+0.2%) to $57.21/bbl. For the week, the commodity rose 1.8%.
S&P 500, Dow close at record highs amid conflicting trade headlines
07-Nov-19 16:25 ET
Dow +182.24 at 27674.84, Nasdaq +23.89 at 8434.52, S&P +8.40 at 3085.18
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market rallied to new highs on Thursday after China's Commerce Ministry said it reached an agreement with the U.S. for both sides to phase out tariffs. News of internal strife within the White House about those plans, however, curbed some enthusiasm in the market. The S&P 500 finished near its lows but still added 0.3% to close at a record high.
The Nasdaq Composite (+0.3%) and Russell 2000 (+0.3%) also closed near lows with 0.3% gains. The Dow Jones Industrial Average (+0.7%) outperformed and closed at a record high.
China's announcement was confirmed by an unnamed U.S. official to Bloomberg, but multiple sources familiar with trade talks followed up to Reuters that opposition is based on concerns that the U.S. would give away leverage to Beijing. Considering that China reportedly wants all retaliatory tariffs removed for the "Phase One" deal to get signed, the news understandably created some jitters in the market.
The market has been optimistic, though, and investors still leaned on the side of risk, evident by the outperformance of the cyclical sectors and the sell-off in the U.S. Treasury market. The S&P 500 energy sector (+1.6%) outperformed alongside higher oil prices ($57.11, +0.76, +1.4%), followed by the communication services (+0.7%), information technology (+0.7%), and financials (+0.7%) sectors.
The 2-yr yield rose seven basis points to 1.67%, and the 10-yr yield rose 11 basis points to 1.93%. The U.S. Dollar Index increased 0.2% to 98.13.
This curve-steepening activity benefited the financials sector, but the higher yields undercut buying interest in the rate-sensitive utilities (-1.4%) and real estate (-1.1%) sectors. The consumer discretionary (-0.6%) and consumer staples (-0.4%) sectors were the other two sectors that finished lower.
The trade-sensitive Philadelphia Semiconductor Index increased 0.7%, although it was up as much as 1.8% in the session. The group still outperformed, though, largely due to the positive reaction to Qualcomm's (QCOM 89.98, +5.35, +6.3%) better-than-expected quarterly results.
Separately, the online travel services industry received negative attention after Expedia Group (EXPE 98.29, -37.07, -27.4%) and TripAdvisor (TRIP 31.65, -9.14, -22.4%) provided investors disappointing quarterly results. Ensuing industry concerns undercut shares of Booking Holdings (BKNG 1849.93, -162.16, -8.1%) in front of its earnings report after the close.
Reviewing Thursday's economic data, which included the weekly Initial and Continuing Claims report and the consumer credit report for September:
Initial jobless claims for the week ending November 2 decreased by 8,000 to 211,000 (Briefing.com consensus 217,000). Continuing jobless claims for the week ending October 26 decreased by 3,000 to 1.689 million.
The key takeaway from the report is that it is consistent with a job market that remains on solid footing, which will keep recession concerns at bay.
The Consumer Credit report for September showed an increase of $9.5 billion (Briefing.com consensus $14.0 billion), and August credit growth was unrevised at $17.9 billion.
Looking ahead, investors will receive the preliminary November reading for the University of Michigan's Index of Consumer Sentiment and the Wholesale Inventories report for September on Friday.
Nasdaq Composite +27.1% YTD
S&P 500 +23.1% YTD
Dow Jones Industrial Average +18.6% YTD
Russell 2000 +18.2% YTD
Market Snapshot
Dow 27674.84 +182.24 (0.66%)
Nasdaq 8434.52 +23.89 (0.28%)
SP 500 3085.18 +8.40 (0.27%)
10-yr Note -110/32 1.920
NYSE Adv 1310 Dec 1574 Vol 962.7 mln
Nasdaq Adv 1597 Dec 1519 Vol 2.2 bln
Industry Watch
Strong: Energy, Communication Services, Information Technology, Financials
Weak: Real Estate, Utilities, Consumer Staples, Consumer Discretionary
Moving the Market
-- S&P 500, Dow close at record highs
-- China said it reached an agreement with the U.S. to phase out tariffs, but there is reportedly fierce internal opposition in White House about rolling back tariffs
-- Cyclical sectors outperformed, U.S. Treasuries sold off
WTI crude settles above $57 per barrel
07-Nov-19 15:25 ET
Dow +166.17 at 27658.77, Nasdaq +10.70 at 8421.33, S&P +5.56 at 3082.34
[BRIEFING.COM] The S&P 500 is now up just 0.2% amid some disappointment that there are still road blocks in getting a "Phase One" deal signed.
One last look inside the S&P 500 shows the energy sector (+1.3%) still rising above the rest, followed by the financials sector (+0.7%). Conversely, the utilities (-1.3%) and real estate (-0.9%) sectors remain noticeably lower amid the rise in Treasury yields today.
WTI crude futures settled up $0.76 (+1.4%) to $57.11/bbl.
Wall Street closes little changed; trade talks in focus
06-Nov-19 16:20 ET
Dow -0.07 at 27492.60, Nasdaq -24.05 at 8410.63, S&P +2.16 at 3076.78
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market closed little changed on Wednesday, marking its second straight pause near record highs as investors digested a possible pushback in the timeline for a trade deal. The S&P 500 (+0.1%), Dow Jones Industrial Average (unch), and Nasdaq Composite (-0.3%) closed within 0.3% of their flat lines, while the Russell 2000 (-0.6%) underperformed.
Reuters reported that a "Phase One" trade agreement may not get signed until December, as both sides continue to discuss terms and a venue. The news took the market to session lows, but it didn't get the pullback some had been expecting. This might have been due to expectations for a partial deal to still get signed and a view that there is some pent-up demand among under-allocated investors.
The S&P 500 energy sector, however, did succumb to a 2.3% pullback following disappointing earnings results and guidance from Diamondback Energy (FANG 77.20, -13.03, -14.4%) and a decline in oil prices ($56.35, -0.89, -1.6%). The Philadelphia Semiconductor Index (-0.8%) also gave back some gains in response to Microchip's (MCHP 95.62, -4.40, -4.4%) results and guidance and perhaps amid a more cautious trade outlook.
On the other hand, the financials sector (+0.4%) provided the broader market some influential support. The health care (+0.6%), consumer staples (+0.5%), and real estate (+0.5%) sectors also outperformed, likely benefiting from their defensive-oriented dispositions.
The health care and consumer staples sectors can also credit their relative strength to the gains in CVS Health (CVS 70.93, +3.61, +5.4%), Humana (HUM 304.94, +10.19, +3.5%), and Coty (COTY 13.02, +1.56, +13.6%) following their positive earnings results and encouraging guidance.
In notable M&A activity, Xerox (XRX 37.66, +1.29, +3.6%) is reportedly considering a cash-and-stock bid for HP, Inc. (HPQ 19.57, +1.17, +6.4%). An offer would value HP at a premium at just under $23 per share, according to The Wall Street Journal.
U.S. Treasuries finished the session on a higher note, having received increased demand following the latest trade update. The 2-yr yield declined three basis points to 1.60%, and the 10-yr yield declined five basis points to 1.81%. The U.S. Dollar Index remained little changed at 97.95.
Reviewing Wednesday's economic data, which included preliminary Q3 figures for Productivity and Unit Labor Costs and the weekly MBA Mortgage Applications Index:
Nonfarm business sector labor productivity declined 0.3% in the third quarter (Briefing.com consensus +1.0%), according to the BLS, after increasing an upwardly revised 2.5% (from 2.3%) in the second quarter. Unit labor costs jumped 3.6% (Briefing.com consensus +2.1%) after increasing a downwardly revised 2.4% (from 2.6%) in the second quarter.
The key takeaway from the report is that it points to profit margin pressures for businesses with the decline in productivity and the jump in unit labor costs; it is also the first decline in productivity since the fourth quarter of 2015.
The weekly MBA Mortgage Applications Index ticked down 0.1% following a 0.6% increase in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report and the Consumer Credit report for September on Thursday.
Nasdaq Composite +26.8% YTD
S&P 500 +22.7% YTD
Russell 2000 +17.9% YTD
Dow Jones Industrial Average +17.9% YTD
Market Snapshot
Dow 27492.60 -0.07 (0.00%)
Nasdaq 8410.63 -24.05 (-0.29%)
SP 500 3076.78 +2.16 (0.07%)
10-yr Note +26/32 1.820
NYSE Adv 1298 Dec 1566 Vol 988.1 mln
Nasdaq Adv 1127 Dec 1963 Vol 2.1 bln
Industry Watch
Strong: Real Estate, Health Care, Consumer Staples, Financials
Weak: Energy
Moving the Market
-- Stock market closes little changed for second straight day; holds near record highs
-- Reuters reported that a phase one trade deal may not get signed until December
-- Weakness in the energy sector, which had outperformed this month
-- Relative strength in the defensive-oriented sectors
Stock market takes breather, Treasury yields rise
05-Nov-19 16:15 ET
Dow +30.52 at 27492.67, Nasdaq +1.48 at 8434.68, S&P -3.65 at 3074.62
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 shed 0.1% on Tuesday in a mixed session that saw more trade headlines and a further increase in Treasury yields. The Dow Jones Industrial Average (+0.1%), Nasdaq Composite (+0.01%), and Russell 2000 (+0.1%) finished just above their flat lines.
Reports indicated that the U.S. is considering removing the 15% tariff rate that went into effect in September and could possibly delay the tariffs in place for December. China, however, reiterated it would want the U.S. to remove all retaliatory tariffs imposed since last year and for the U.S. to be firmer in its commitments to remove them.
It's a tough ask, but the market presumably understood that negotiations are ongoing and it shouldn't conclude that a "Phase One" deal won't get signed based on these reports. The improved outlook on growth, then, continued to play out in the market, especially after the ISM Non-Manufacturing Index for October increased to 54.7% (Briefing.com consensus 53.3%) from 52.6% in September.
U.S. Treasuries continued to retreat after the report, which sent yields higher in a curve-steepening trade that contributed to the outperformance of the S&P 500 financials sector (+0.4%). The energy sector (+0.5%) was today's leader, while the defensive-oriented real estate (-1.8%), utilities (-1.0%), and health care (-0.9%) sectors posted sizable losses.
The 2-yr yield rose four basis points to 1.63%, and the 10-yr yield rose eight basis points to 1.87%. The U.S. Dollar Index increased 0.4% to 97.94. WTI crude rose 1.0%, or $0.55, to $57.24/bbl.
Walgreens Boots Alliance (WBA 61.21, +1.56, +2.6%) and Kroger (KR 27.83, +2.84, +11.4%) were some notable gainers in the consumer staples sector (+0.3%). Walgreens held preliminary discussions with private equity firms about a leveraged buyout, according to Reuters, while Kroger issued upbeat FY20 guidance following an encouraging update on its "Restock Kroger" initiative.
Adobe Systems (ADBE 289.29, +11.79, +4.3%) also provided shareholders with upbeat FY20 guidance. Shares rose accordingly, while shares of Uber (UBER 28.02, -3.06, -9.9%) and Peloton (PTON 22.74, -1.87, -7.6%) dropped despite better-than-expected results and decent guidance. Shake Shack (SHAK 66.83, -17.38, -20.6%) plunged 21% on disappointing guidance.
Reviewing Tuesday's economic data, which included the ISM Non-Manufacturing Index for October, the Trade Balance report for September, and the JOLTS - Job Openings survey for September:
The ISM Non-Manufacturing Index for October increased to 54.7% (Briefing.com consensus 53.3%) from 52.6% in September.
The key takeaway from the report is that it reflects an acceleration of expansion-based activity in October, which is a supportive consideration since the non-manufacturing sector accounts for a significantly larger slice of U.S. economic activity than the manufacturing sector does.
The U.S trade deficit narrowed slightly in September to $52.5 billion, as expected, from a downwardly revised $55.0 billion (from -$54.9 billion) in August.
The key takeaway from the report is that it wasn't a narrowing driven necessarily by stronger demand. On the contrary, imports (-$4.4 billion) and exports (-$1.8 billion) both declined month-over-month, so the narrowing was simply a function of imports falling more than exports.
The September Job Openings and Labor Turnover Survey showed that job openings declined to 7.024 million from a revised 7.301 million in August (from 7.051 million).
Looking ahead, investors will receive preliminary Q3 numbers for Productivity and Unit Labor Costs and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +27.1% YTD
S&P 500 +22.7% YTD
Russell 2000 +18.6% YTD
Dow Jones Industrial Average +17.9% YTD
Market Snapshot
Dow 27492.67 +30.52 (0.11%)
Nasdaq 8434.68 +1.48 (0.02%)
SP 500 3074.62 -3.65 (-0.12%)
10-yr Note -29/32 1.859
NYSE Adv 1321 Dec 1551 Vol 988.8 mln
Nasdaq Adv 1635 Dec 1465 Vol 2.1 bln
Industry Watch
Strong: Energy, Financials, Consumer Staples, Materials
Weak: Real Estate, Utilities, Health Care
Moving the Market
-- Stock market takes breather and closes little changed
-- ISM Non-Manufacturing Index for October increased more than expected
-- U.S. is reportedly considering removing 15% tariff rate imposed on Chinese imports in September and could possibly delay tariffs in December; China wants more tariffs removed
-- Treasury yields rise in curve-steepening trade
S&P 500, Nasdaq, and Dow close at record highs
04-Nov-19 16:20 ET
Dow +114.75 at 27462.15, Nasdaq +46.80 at 8433.20, S&P +11.36 at 3078.27
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.4%) and Nasdaq Composite (+0.6%) continued to set new highs on Monday, with the Dow Jones Industrial Average (+0.4%) finally breaking above its prior high from July following some positive-sounding trade comments. The Russell 2000 (+0.5%) kept pace with the large-cap indices.
Commerce Secretary Wilbur Ross said that good progress has been made in "Phase One" negotiations, companies may soon be granted licenses to work with Huawei, and auto tariffs on imported products may not be imposed. With the market already in record territory amid trade optimism and favorable monetary policy, there was presumably some chasing activity among buyers fearful of missing out on further gains.
The market took Mr. Ross' comments at face value, and shares of economically-sensitive companies continued to benefit from a positive growth outlook. The S&P 500 energy sector (+3.2%) surged past the other sectors, rising more than 3% as the value-oriented space also benefited from higher oil prices ($56.69/bbl, +0.48, +0.9%). The sector saw volume that was below average.
The S&P 500 industrials (+1.2%), financials (+0.9%), and materials (+0.8%) sectors followed suit with gains that were also more than the benchmark index, as did the Dow Jones Transportation Average (+2.3%) and Philadelphia Semiconductor Index (+2.2%).
On the other hand, losses in the defensive-oriented utilities (-1.3%), real estate (-1.1%), consumer staples (-0.9%), and health care (-0.4%) sectors restrained further gains in the broader market.
Notable story stocks from Monday included McDonald's (MCD 188.66, -5.28, -2.7%) and Under Armour (UAA 17.13, -4.01, -19.0%). McDonald's fired CEO Steve Easterbrook after he used "poor judgement" in having a consensual relationship with an employee. Under Armour reported lackluster sales activity and confirmed its accounting practices are being probed by the SEC and Department of Justice.
U.S. Treasuries ended the session lower, as the risk-on trading sentiment in the stock market decreased demand for the safe-haven asset class. The 2-yr yield increased three basis points to 1.59%, and the 10-yr yield increased six basis points to 1.79%. The U.S. Dollar Index advanced 0.3% to 97.55.
Monday's economic data was limited to the Factory Orders report for September, which declined 0.6% (Briefing.com consensus -0.5%) following an unrevised 0.1% decline in August.
Looking ahead, investors will receive the ISM Non-Manufacturing Index for October, the Trade Balance report for September, and the JOLTS - Job Openings survey for September on Tuesday.
Nasdaq Composite +27.1% YTD
S&P 500 +22.8% YTD
Russell 2000 +18.5% YTD
Dow Jones Industrial Average +17.7% YTD
Market Snapshot
Dow 27462.15 +114.75 (0.42%)
Nasdaq 8433.20 +46.80 (0.56%)
SP 500 3078.27 +11.36 (0.37%)
10-yr Note -27/32 1.779
NYSE Adv 1771 Dec 1082 Vol 951.7 mln
Nasdaq Adv 1892 Dec 1228 Vol 2.1 bln
Industry Watch
Strong: Energy, Financials, Industrials, Materials
Weak: Real Estate, Utilities, Consumer Staples, Health Care
Moving the Market
-- Stock market sets new record highs on trade comments, fear of missing out on further gains
-- Commerce Secretary Ross said companies may soon be granted licenses to work with Huawei and auto tariffs on foreign imports may not be imposed
-- Relative strength in the cyclical sectors, especially in the energy sector, which rose more than 3%
-- Relative weakness in the defensive-oriented sectors
S&P 500 closes lower on trade concerns, but still ends month higher
31-Oct-19 16:20 ET
Dow -140.46 at 27046.27, Nasdaq -11.62 at 8292.36, S&P -9.21 at 3037.56
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 lost 0.3% on this last day of October, as concerns about a comprehensive U.S.-China trade deal outweighed the positive earnings results from Apple (AAPL 248.76, +5.50, +2.3%) and Facebook (FB 191.65, +3.40, +1.8%).
The Dow Jones Industrial Average (-0.5%), Nasdaq Composite (-0.1%), and Russell 2000 (-0.7%) also finished lower, but an opportunistic mindset into the close helped stocks finish well off their session lows.
Many U.S. investors have already expressed skepticism that China would agree, and commit, to structural reforms in a complete trade deal, but it was discouraging to see a Bloomberg report indicating Chinese officials also having their own doubts. Economic data showing continued weakness in China's manufacturing sector didn't help sentiment, either.
Given the resiliency of the market, it was business as usual when the stock market opened the session relatively unchanged. This was short-lived, though, with the major indices quickly giving back Wednesday's post-FOMC gains. Coinciding with this decline was the release of the Chicago PMI for October, which fell deeper into contraction territory to 43.2 (Briefing.com consensus 48.2) from 47.1.
In turn, weakness primarily rested in the trade-and-growth sensitive areas of the market: The S&P 500 industrials (-1.1%), materials (-1.1%), financials (-0.6%), and energy (-0.5%) sectors. Conversely, the utilities (+0.5%) and communication services (+0.3%) sectors were the lone groups that finished in positive territory.
A risk-off mindset was also manifested in the rally in the U.S. Treasury market and the continued rotation out of growth stocks. Most notably, Twilio (TWLO 96.56, -11.14, -10.3%), Etsy (ETSY 44.49, -8.31, -15.7%), Wayfair (W 82.23, -18.85, -18.7%), and Lyft (LYFT 41.44, -2.67, -6.1%) posted sizable losses following their earnings reports.
The 2-yr yield dropped ten basis points to 1.52%, and the 10-yr yield dropped 11 basis points to 1.69%. The U.S. Dollar Index fell 0.4% to 97.30. WTI crude fell 1.6%, or $0.90%, to $54.18/bbl.
There were some encouraging developments for investors to consider, though. The S&P 500 found support at its previous closing high from July 26 (3025.86) three times today before closing above it. Some month-end rebalancing activity might have also exacerbated today's price action. The benchmark index rose 2.0% this month.
Reviewing Thursday's economic data:
Initial claims for the week ending October 26 increased by 5,000 to 218,000 (Briefing.com consensus 216,000). Continuing claims for the week ending October 19 increased by 7,000 to 1.690 million.
The key takeaway from the report is that there is nothing alarming in the initial claims trend, which continues to track close to historic lows.
Personal income was up 0.3% in September, as expected and personal spending was up 0.2% (Briefing.com consensus +0.3%). The PCE Price Index was unchanged m/m (Briefing.com consensus +0.1%) and up 1.3% yr/yr; the core PCE Price Index was unchanged m/m (Briefing.com consensus +0.1%) and up 1.7% yr/yr.
The key takeaway from the report is that the data fit reasonably well with the Fed's working view that the U.S. economy is growing at a moderate pace with muted inflation pressures.
The Q3 Employment Cost Index increased 0.7%, as expected, seasonally adjusted, for the three-month period ending in September 2019 after increasing 0.6% for the three-month period ending in June 2019. Wages and salaries, which account for about 70% of compensation costs, rose 0.9%, while benefit costs, which make up the remainder of compensation costs, increased 0.6%.
The key takeaway from the report is that it shows a continuation of moderate growth in compensation costs.
Chicago PMI for October fell to 43.2 (Briefing.com consensus 48.2) from 47.1, sinking deeper into contraction territory.
Looking ahead, investors will receive the Employment Situation Report for October, the ISM Manufacturing Index for October, the Construction Spending report for September, and auto and truck sales throughout the day on Friday.
Nasdaq Composite +25.0% YTD
S&P 500 +21.2% YTD
Dow Jones Industrial Average +15.9% YTD
Russell 2000 +15.9% YTD
Market Snapshot
Dow 27046.27 -140.46 (-0.52%)
Nasdaq 8292.36 -11.62 (-0.14%)
SP 500 3037.56 -9.21 (-0.30%)
10-yr Note +30/32 1.683
NYSE Adv 1086 Dec 1765 Vol 1.2 bln
Nasdaq Adv 1148 Dec 1952 Vol 2.0 bln
Industry Watch
Strong: Utilities, Communication Services
Weak: Industrials, Materials, Financials, Energy
Moving the Market
-- Stock market closes slightly lower amid concerns about comprehensive trade deal, weak manufacturing data, month-end rebalancing activity
-- Relative weakness in the cyclical sectors and trade-sensitive areas
-- Apple (AAPL) and Facebook (FB) rise on positive quarterly results
-- U.S. Treasury yields dropped on weak Chicago PMI, trade and growth concerns
S&P 500 sets new intraday high before closing lower
29-Oct-19 16:25 ET
Dow -19.26 at 27071.46, Nasdaq -49.13 at 8276.86, S&P -2.53 at 3036.89
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.1% on Tuesday, although it did set a new intraday high in this lackluster session. Earnings reports remained in focus ahead of key developments later in the week, which presumably kept buying conviction in check today.
The Dow Jones Industrial Average also declined 0.1%. The Nasdaq Composite underperformed with a 0.6% loss, while the Russell 2000 managed to gain 0.3%.
An earnings miss from Alphabet (GOOG 1262.62, -27.38, -2.1%) contributed to some profit taking in the stock and in other strong technology stocks like Apple (AAPL 243.29, -5.76, -2.3%). In addition, the selloffs in Beyond Meat (BYND 81.99, -23.42, -22.2%) and GrubHub (GRUB 33.11, -25.28, -43.3%) following their results had some investors feeling less interested in high-beta names.
In turn, the S&P 500 communication services (-1.0%), information technology (-0.9%), and consumer discretionary (-0.6%) sectors, where many of these companies reside, weighed on the broader market. Fortunately, the market found some support in the health care (+1.2%), materials (+0.7%), energy (+0.4%), and real estate (+0.4%) sectors.
Pfizer (PFE 38.21, +0.93, +2.5%) and Merck (MRK 85.11, +2.91, +3.5%) provided the lift for the health care space after both reported positive quarterly results and upbeat guidance. Other blue-chip companies with less-demanding valuations like General Motors (GM 38.21, +1.57, +4.3%), Kellogg (K 62.87, +1.81, +3.0%), Xerox (XRX 34.40, +3.61, +11.7%), and Ingersoll-Rand (IR 127.86, +5.78, +4.7%) also pleased investors with their earnings reports.
Separately, Johnson & Johnson (JNJ 129.12, -0.06, unch) announced that "rigorous and third-party testing confirms there is no asbestos in Johnson's Baby Powder." Shares were halted for trading and did not resume trading before the market closed. Shares of Boeing (BA 348.93, +8.05, +2.4%) reacted favorably to CEO Dennis Muilenburg's testimony before the Senate.
U.S. Treasuries crept higher in an equally lackluster session. The 2-yr yield and the 10-yr yield both declined one basis point to 1.64% and 1.84%, respectively. The U.S. Dollar Index declined 0.1% to 97.69. WTI crude declined 0.3%, or $0.19, to $55.76/bbl.
Reviewing Tuesday's economic data, which included Conference Board's Consumer Confidence Index for October, Pending Home Sales for September, and the S&P Case-Shiller Home Price Index for August:
The Conference Board's Consumer Confidence Index slipped to 125.9 in October (Briefing.com consensus 127.5) from an upwardly revised 126.3 (from 125.1) in September.
The key takeaway from the report is that there wasn't any material change from the prior month despite lingering worries about trade and economic growth prospects, suggesting overall feelings about job security remain an underpinning for consumer confidence.
Pending Home Sales increased 1.5% in September (Briefing.com consensus +0.7%). Today's reading follows a revised 1.4% increase in August (from 1.6%).
The S&P Case-Shiller Housing Price Index for August increased 2.0% (Briefing.com consensus 2.5%) following an unrevised 2.0% increase in the prior month.
Looking ahead, investors will receive the FOMC rate decision, the advance estimate for Q3 GDP, the ADP Employment Change report for October, and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +24.7% YTD
S&P 500 +21.1% YTD
Russell 2000 +17.0% YTD
Dow Jones Industrial Average +16.1% YTD
Market Snapshot
Dow 27071.46 -19.26 (-0.07%)
Nasdaq 8276.86 -49.13 (-0.59%)
SP 500 3036.89 -2.53 (-0.08%)
10-yr Note +1/32 1.834
NYSE Adv 1494 Dec 1357 Vol 808.1 mln
Nasdaq Adv 1545 Dec 1525 Vol 1.8 bln
Industry Watch
Strong: Health Care, Materials, Energy, Real Estate
Weak: Communication Services, Information Technology, Consumer Discretionary
Moving the Market
-- S&P 500 sets new intraday high in muted session before closing lower
-- Alphabet (GOOG) pulls back from all-time highs after missing earnings estimates; relative weakness in other technology stocks
-- Strength in the health care sector after positive results, upbeat guidance from Pfizer (PFE) and Merck (MRK)
-- Blue-chip stocks outperformed
S&P 500 sets new intraday and closing records
28-Oct-19 16:25 ET
Dow +132.66 at 27090.72, Nasdaq +82.87 at 8325.99, S&P +16.87 at 3039.42
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 set new record highs on Monday, increasing 0.6% as trade sentiment remained upbeat and investors reacted positively to corporate news. The Nasdaq Composite (+1.0%) and Russell 2000 (+0.9%) pulled out ahead, while the Dow Jones Industrial Average (+0.5%) trailed its peers.
Both the U.S. and China continued to work on "Phase One" of a trade agreement over the weekend, which President Trump said is "ahead of schedule" for him to sign. China's state-run media reported that technical consultations on parts of the text were "basically completed."
Technology stocks outperformed, with Microsoft (MSFT 144.19, +3.46, +2.5%) providing influential leadership for the broader market and S&P 500 information technology sector (+1.3%) after it was awarded a $10 billion cloud contract with the Department of Defense.
The tech sector also benefited from strength in the semiconductor space, which tends to rise when sentiment on trade is favorable. The Philadelphia Semiconductor Index rose 1.8%. Following suit were the communication services (+1.2%) and health care (+1.0%) sectors, while the utilities (-1.3%) and real estate (-1.1%) sectors fell noticeably.
Contributing to the advance in the communication services sector were solid gains in Alphabet (GOOG 1290.00, +24.87, +2.0%) and AT&T (T 38.49, +1.58, +4.3%). Alphabet set an all-time high amid heavier-than-usual volume in front of its earnings report, while AT&T announced a multi-year plan to increase shareholder value, which was viewed favorably by activist investor Elliott Management.
Monday also saw some notable M&A activity. Alphabet is reportedly in talks to acquire Fitbit (FIT 5.64, +1.33, +30.9%). Tiffany & Co. (TIF 129.72, +31.17, +31.6%) received a $14.5 billion unsolicited offer from LVMH for $120 per share in cash. Liberty Property Trust (LPT 57.50, +6.93, +13.7%) agreed to be acquired by Prologis (PLD 85.89, -4.97, -5.5%) for about $12.6 billion in an all-stock deal.
In earnings news, Spotify (SPOT 140.20, +19.51, +16.2%) reported a surprise profit and reported MAU growth above expectations. Dow component Walgreens Boots Alliance (WBA 55.80, +0.38, +0.7%) didn't draw much attention following its mostly in-line results.
U.S. Treasuries finished lower in a curve-steepening trade. The 2-yr yield increased two basis points to 1.65%, and the 10-yr yield increased five basis points to 1.85%. The U.S. Dollar Index declined 0.1% to 97.74. WTI crude lost 0.9%, or $0.49, to $55.95/bbl to end a four-session winning streak.
Monday's economic data was limited to the Advance reports for International Trade in Goods, Retail Inventories and Wholesale Inventories for September:
The Adv. Intl. Trade in Goods report for September showed a deficit of $70.4 billion, which was an improvement from the August deficit of $73.1 billion. An advance report for retail inventories showed a 0.3% increase, versus a 0.2% decline in August, while the advance report for wholesale inventories showed a 0.3% decline, versus an unchanged reading for August.
Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for October, Pending Home Sales for September, and the S&P Case-Shiller Home Price Index for August on Tuesday.
Nasdaq Composite +25.5% YTD
S&P 500 +21.2% YTD
Russell 2000 +16.6% YTD
Dow Jones Industrial Average +16.1% YTD
Market Snapshot
Dow 27090.72 +132.66 (0.49%)
Nasdaq 8325.99 +82.87 (1.01%)
SP 500 3039.42 +16.87 (0.56%)
10-yr Note -4/32 1.844
NYSE Adv 1558 Dec 1301 Vol 776.7 mln
Nasdaq Adv 1980 Dec 1158 Vol 1.9 bln
Industry Watch
Strong: Information Technology, Communication Services, Health Care
Weak: Real Estate, Utilities, Energy
Moving the Market
-- S&P 500 sets new intraday high, closing record amid trade optimism, upbeat corporate news, fear of missing out on further gains
-- Strength in the technology sector, particularly in Microsoft (MSFT) and in the semiconductor space
-- Notable M&A activity
-- Alphabet (GOOG) rises in front of its earnings report after the closing bell
S&P 500 ends week on high note, nearly sets record highs
25-Oct-19 16:15 ET
Dow +152.53 at 26958.06, Nasdaq +57.32 at 8243.12, S&P +12.26 at 3022.55
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 almost set new record highs on Friday, but it still increased 0.4% amid strength in shares of semiconductor companies and some optimism on the U.S.-China trade front. The Dow Jones Industrial Average (+0.6%), Nasdaq Composite (+0.7%), and Russell 2000 (+0.5%) outpaced the benchmark index.
Intel (INTC 56.46, +4.23, +8.1%) was among today's most influential companies after it beat top and bottom-line estimates and issued upside guidance. Its 8% gain, the buying interest in other semiconductor stocks, and an earnings-driven gain in Visa (V 177.85, +1.69, +1.0%) all contributed to leadership of the S&P 500 information technology sector (+1.2%).
The good news quickly helped the market overcome a sluggish start that was attributed early weakness in Amazon (AMZN 1761.33, -19.45, -1.1%) after it missed profit estimates and provided a cautious outlook for the holiday quarter. AMZN pared losses and the market pushed higher after the USTR office said it was close to finalizing some sections of a "Phase One" trade deal with China.
The trade update presumably benefited other cyclical sectors like materials (+1.0%), energy (+0.8%), and industrials (+0.6%). It also reduced demand for U.S. Treasuries, which sent yields higher in a trade that undercut the performances of the rate-sensitive real estate (-1.3%) and utilities (-1.1%) sectors.
The 2-yr yield rose five basis points to 1.63%, and the 10-yr yield rose four basis points to 1.80%. The U.S. Dollar Index increased 0.3% to 97.83. WTI crude increased 0.4%, or $0.21, to $56.44/bbl.
A closer look inside the utilities space showed the group was also struggling from industry-specific issues. Edison (EIX 66.05, -6.14, -8.5%) and Sempra Energy (SRE 143.94, -4.12, -2.8%) fell on concerns about more power outages in California. PG&E (PCG), meanwhile, acknowledged that one of its transmission lines fell in the area where the Kincade wildfire started, sparking investor concerns that it could face additional liabilities.
Separately, Dow component Verizon (VZ 60.37, -0.21, -0.4%) reported better-than-expected earnings results, but shares ended the day lower.
Friday's economic data was limited to the final reading for the University of Michigan's Index of Consumer Sentiment for October:
The University of Michigan's Index of Consumer Sentiment checked in at 95.5 with the final reading for October (Briefing.com consensus 95.8) versus the preliminary reading of 96.0 and the final reading of 93.2 for September.
The key takeaway from the report is that it shows consumer sentiment held up just fine in October, as positive feelings about income and job growth helped drown out the headline volatility involving trade/tariff issues and the impeachment inquiry.
Looking ahead, investors will receive the Advance reports for International Trade in Goods, Retail Inventories and Wholesale Inventories for September on Monday.
Nasdaq Composite +24.2% YTD
S&P 500 +20.6% YTD
Russell 2000 +15.6% YTD
Dow Jones Industrial Average +15.6% YTD
Market Snapshot
Dow 26958.06 +152.53 (0.57%)
Nasdaq 8243.12 +57.32 (0.70%)
SP 500 3022.55 +12.26 (0.41%)
10-yr Note -3/32 1.797
NYSE Adv 1621 Dec 1237 Vol 778.8 mln
Nasdaq Adv 1878 Dec 1179 Vol 1.9 bln
Industry Watch
Strong: Information Technology, Materials, Energy
Weak: Utilities, Real Estate, Consumer Staples
Moving the Market
-- S&P 500 nearly sets new record highs
-- USTR office said it is close to finalizing some sections of a "Phase One" trade deal with China
-- Strength in the semiconductor space after Intel (INTC) beat estimates, issued upside guidance
-- Amazon (AMZN) missed earnings estimates, provided cautious outlook
Wall Street closes mixed, Nasdaq rises on earnings results
24-Oct-19 16:20 ET
Dow -28.42 at 26805.53, Nasdaq +66.00 at 8185.80, S&P +5.77 at 3010.29
[BRIEFING.COM] The major U.S. indices closed mixed on Thursday, with the tech-sensitive Nasdaq Composite (+0.8%) rising above its peers in an earnings-driven advance. The S&P 500 (+0.2%), Dow Jones Industrial Average (-0.1%), and Russell 2000 (-0.2%) finished near their unchanged marks.
The Nasdaq benefited from upbeat results from a host of companies, including Microsoft (MSFT 139.94, +2.70, +2.0%), PayPal (PYPL 104.91, +8.27, +8.6%), Tesla (TSLA 299.68, +45.00, +17.7%), and Lam Research (LRCX 265.60, +32.42, +13.9%). The Philadelphia Semiconductor Index (+2.5%) rose on the back of Lam Research's results and guidance.
It was no surprise, then, to see the S&P 500 information technology sector (+1.5%) as today's outright leader ahead of the utilities (+0.4%) and materials (+0.4%) sectors. In terms of surprises, Tesla's unexpected quarterly profit was one of them, but Twitter (TWTR 30.75, -8.08, -20.8%), as an S&P 500 component, woefully disappointed investors with its results and guidance.
Twitter's 21% plunge was a stain on the S&P 500 communication services sector (-0.7%), which declined more than the health care (-0.6%) and energy (-0.4%) sectors.
3M (MMM 161.89, -6.87, -4.1%) and Ford Motor (F 8.60, -0.61, -6.6%) provided mixed results and attributed a cautious outlook to headwinds in China, while strong business in China helped Dow Inc. (DOW 49.47, +2.24, +4.7%) post better-than-expected results.
Vice President Mike Pence for his part delivered a relatively hawkish speech on China, saying Beijing should not underestimate the resolve of President Trump. On a related note, Bloomberg News reported that China is willing to purchase at least $20 billion of agricultural products from the U.S. in the first year after a partial trade deal is signed.
Elsewhere, UK Prime Minister Boris Johnson will reportedly give more time to lawmakers to consider a Brexit deal, but only if they agree to a general election on Dec. 12. The European Central Bank kept rates unchanged, as expected, and confirmed it will resume asset purchases at a monthly pace of 20 billion euros as of Nov. 1.
U.S. Treasuries finished the session little changed. The 2-yr yield and the 10-yr yield were unchanged at 1.58% and 1.76%, respectively. The U.S. Dollar Index increased 0.2% to 97.68. WTI crude increased 0.7%, or $0.40, to $56.23/bbl.
Reviewing Thursdays' economic data, which included New Home Sales for September, Durable Goods Orders for September, and the weekly Initial and Continuing Claims report:
New home sales slipped 0.7% m/m to a seasonally adjusted annual rate of 701,000 units (Briefing.com consensus 703,000) from a downwardly revised 706,000 (from 713,000) in August. On a year-over-year basis, new home sales were up 15.5%.
The key takeaway from the report is the weaker activity seen in sales of higher-priced homes, as that speaks to the affordability pressures presented by mortgage rates that went up in September. Remember, new home sales are recorded when a contract is signed not when the sale closes (as is the case for existing home sales).
Durable goods orders for September declined 1.1% (Briefing.com consensus -1.0%) on the heels of an upwardly revised 0.3% increase (from 0.2%) in August. Excluding transportation, durable goods orders were down 0.3%, as expected.
The key takeaway from the report is the indication that business spending remained weak, as evidenced by the 0.5% decline in nondefense capital goods orders excluding aircraft, which followed a 0.6% decline in August.
Initial claims for the week ending October 19 decreased by 6,000 to 212,000 (Briefing.com consensus 217,000). Continuing claims for the week ending October 12 decreased by 1,000 to 1.682 million.
The key takeaway from the report is that there are no alarming trends in this series for the consumer outlook, as jobless claims continue to track close to historic lows.
Looking ahead, investors will the revised October reading for the University of Michigan's Index of Consumer Sentiment on Friday.
Nasdaq Composite +23.4% YTD
S&P 500 +20.1% YTD
Russell 2000 +15.0% YTD
Dow Jones Industrial Average +14.9% YTD
Market Snapshot
Dow 26805.53 -28.42 (-0.11%)
Nasdaq 8185.80 +66.00 (0.81%)
SP 500 3010.29 +5.77 (0.19%)
10-yr Note +1/32 1.764
NYSE Adv 1317 Dec 1537 Vol 805.7 mln
Nasdaq Adv 1394 Dec 1647 Vol 1.8 bln
Industry Watch
Strong: Information Technology, Utilities
Weak: Communication Services, Health Care, Energy
Moving the Market
-- U.S. indices closed mixed, with the Nasdaq closing firmly higher in earnings-driven advance
-- Microsoft (MSFT), Tesla (TSLA) among notable gainers; 3M (MMM), Twitter (TWTR) among notable laggards
-- Relatively hawkish China speech from Vice President Mike Pence
Stocks market closes higher despite high-profile earnings warnings
23-Oct-19 16:20 ET
Dow +45.85 at 26833.95, Nasdaq +15.50 at 8119.80, S&P +8.53 at 3004.52
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 increased 0.3% on Wednesday in a resilient session. Today featured disappointing quarterly results and guidance from Caterpillar (CAT 135.34, +1.65, +1.2%) and Texas Instruments (TXN 118.95, -9.62, -7.5%), but the broader market was able to withstand the news to close at session highs.
The Dow Jones Industrial Average increased 0.2%, the Nasdaq Composite increased 0.2%, and the Russell 2000 increased 0.1%.
Both Caterpillar and Texas Instruments missed top and bottom-line estimates and issued downside guidance, but CAT managed to rally into positive territory. Caterpillar commented that trade tensions and macro concerns led to reductions in dealer inventories, while Texas Instruments said its outlook was predominately a macro issue.
It should be noted that guidance was reserved for this year and not for 2020, which presumably kept general growth concerns in check and allowed for gains in the cyclical S&P 500 energy (+0.8%) and materials (+0.7%) sectors. A nice increase in oil prices ($55.83/bbl, +1.45, +2.7%) was a supportive factor for energy stocks.
The information technology sector (+0.1%) sidestepped the weakness in the semiconductor space thanks to another noticeable gain in Apple (AAPL 243.18, +3.22, +1.3%) after Morgan Stanley raised its price target to $289 from $247. The Philadelphia Semiconductor Index fell 1.9%. The consumer discretionary sector (-0.4%) was today's lagging S&P 500 sector.
In other corporate news, Boeing (BA 340.50, +3.50, +1.0%) missed earnings estimates, but investors were placated by a better-than-feared outlook for its 737 MAX, which is still expected to return to service in Q4. Facebook (FB 186.19, +3.85, +2.1%) CEO Mark Zuckerberg testified before Congress on Libra and, based on the stock's price action, investors were mostly satisfied with his testimony.
Separately, Nike (NKE 92.32, -3.23, -3.4%) announced Mark Parker will step down as CEO on Jan. 13, 2020 and will be replaced by John Donahoe, who is the President and CEO of ServiceNow (NOW 220.01, -8.33, -3.7%).
U.S. Treasuries saw an uptick in demand, which pushed yields lower. The 2-yr yield declined three basis points to 1.58%, and the 10-yr yield declined one basis point to 1.76%. The U.S. Dollar Index declined 0.1% to 97.46.
Reviewing Wednesday's economic data, which shed some insight into the housing market:
The MBA Mortgage Applications Index for the week ending October 19 was down 11.9%, as higher mortgage rates pressured interest in refinancing and purchase applications.
The FHFA Housing Price Index for August increased 0.2% following an unrevised 0.4% increase in July.
Looking ahead, investors will receive New Home Sales for September, Durable Goods Orders for September, and the weekly Initial and Continuing Claims report on Thursday.
Nasdaq Composite +22.4% YTD
S&P 500 +19.9% YTD
Russell 2000 +15.2% YTD
Dow Jones Industrial Average +15.0% YTD
Market Snapshot
Dow 26833.95 +45.85 (0.17%)
Nasdaq 8119.80 +15.50 (0.19%)
SP 500 3004.52 +8.53 (0.28%)
10-yr Note 0/32 1.764
NYSE Adv 1848 Dec 1042 Vol 772.9 mln
Nasdaq Adv 1658 Dec 1385 Vol 1.8 bln
Industry Watch
Strong: Energy, Materials, Communication Services
Weak: Consumer Discretionary, Industrials
Moving the Market
-- Stock market closes higher despite disappointing earnings results, guidance from Caterpillar (CAT) and Texas Instruments (TXN)
-- Apple (AAPL) continued to rise, this time after Morgan Stanley increased its price target to $289 from $247
-- Boeing (BA) provided a better-than-feared outlook for its 737 MAX, offsets earnings miss