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Wall Street dragged lower by Brexit news
22-Oct-19 16:20 ET
Dow -39.54 at 26788.10, Nasdaq -58.69 at 8104.30, S&P -10.73 at 2995.99
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 lost 0.4% on Tuesday in a news-heavy session. Company-specific news contributed to outsized stock moves, but overall gains in broader market had been nominal until a hiccup on the Brexit front dragged the major indices into negative territory. The benchmark index closed at session lows below the 3000 level.
The Dow Jones Industrial Average shed 0.2% amid mixed reactions to earnings results from Procter & Gamble (PG 122.18, +3.10, +2.6%), United Technologies (UTX 141.41, +3.06, +2.2%), McDonald's (MCD 199.27, -10.58, -5.0%), and Travelers (TRV 130.15, -11.76, -8.3%). The Nasdaq Composite lost 0.7%, while the Russell 2000 added 0.1%.
Regarding Brexit, UK lawmakers endorsed Prime Minister Boris Johnson's deal, but voted against a speedy timetable to approve Brexit legislation in the next three days. The news caused a knee-jerk reaction to the downside for equities, as it makes an extension request more likely and increases the uncertainty in the market.
The information technology sector (-1.4%) succumbed to broad-based selling and was today's laggard. The communication services sector (-0.9%) followed suit amid sizable losses in Facebook (FB 182.34, -7.42, -3.9%) and Netflix (NFLX 266.69, -11.36, -4.1%), while the energy sector (+1.3%) was today's leader amid a bounce in oil prices ($54.38, +$1.09, +2.4%).
Facebook was hit by news that it is now being probed by 47 attorney generals for possible antitrust violations. Netflix fell after Verizon (VZ 60.77, +0.02, unch) partnered with Walt Disney (DIS 132.40, +2.14, +1.6%) to provide its customers with free access to Disney+ for one year.
Biogen (BIIB 281.87, +58.36, +26.1%) was a notable story stock on Tuesday. Shares surged 26% after the company surprised investors by saying it will seek FDA approval for its Alzheimer's drug in 2020 after it had renounced the treatment in March. Biogen also beat top and bottom-line estimates.
Separately, shares of Lyft (LYFT 43.56, +2.68, +6.6%) and Uber (UBER 32.53, +1.12, +3.6%) reacted positively to comments from Lyft's co-founders that it could reach profitability (adjusted EBITDA) sooner than expected by the end of 2021.
U.S. Treasuries finished the session mixed. The 2-yr yield increased two basis points to 1.61%, and the 10-yr yield declined two basis points to 1.77%. The U.S. Dollar Index increased 0.2% to 97.47.
Friday's lone economic report was Existing Home Sales for September:
Existing home sales decreased 2.2% month-over-month in September to a seasonally-adjusted annual rate of 5.38 million (Briefing.com consensus 5.52 mln) from a revised 5.50 million (from 5.49 million) in August. Total sales were 3.9% 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 inventory of unsold homes continues decreasing from last year's levels.
Looking ahead, investors will receive the FHFA Housing Price Index for August and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +22.1% YTD
S&P 500 +19.5% YTD
Russell 2000 +15.0% YTD
Dow Jones Industrial Average +14.8% YTD
Market Snapshot
Dow 26788.10 -39.54 (-0.15%)
Nasdaq 8104.30 -58.69 (-0.72%)
SP 500 2995.99 -10.73 (-0.36%)
10-yr Note +3/32 1.770
NYSE Adv 1678 Dec 1186 Vol 752.3 mln
Nasdaq Adv 1452 Dec 1601 Vol 1.8 bln
Industry Watch
Strong: Energy, Industrials, Utilities
Weak: Information Technology, Communication Services, Consumer Discretionary
Moving the Market
-- Wall Street dragged lower by hiccup on Brexit front: lawmakers voted against speedy timetable to approve Brexit legislation
--Key corporate news contributed to sizable stock moves
-- Procter & Gamble (PG), United Technologies (UTX), and Biogen (BIIB) among notable gainers
-- McDonald's (MCD), Travelers (TRV), and Facebook (FB) among notable laggards
S&P 500 closes above 3000; Boeing drags on Dow
21-Oct-19 16:15 ET
Dow +57.44 at 26827.64, Nasdaq +73.44 at 8162.99, S&P +20.52 at 3006.72
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market closed near session highs on Monday, with the S&P 500 (+0.7%), Nasdaq Composite (+0.9%), and Russell 2000 (+1.0%) posting solid gains as investor sentiment remained relatively upbeat. The Dow Jones Industrial Average (+0.2%) struggled to keep pace, predominately due to continued weakness in Boeing (BA 331.06, -12.94, -3.8%).
Boeing was downgraded to Neutral at UBS, Credit Suisse, and Robert W. Baird as the company faces heightened scrutiny, and uncertainty, for its handling of the 737 MAX situation. On the other hand, firms continued to turn even more bullish on Apple (AAPL 240.51, +4.10, +1.7%), with Raymond James increasing its AAPL price target to a Street-high of $280 from $225.
Apple hit a new 52-week high, and many of its suppliers within the Philadelphia Semiconductor Index (+1.9%) also outperformed as U.S.-China trade rhetoric remained optimistic. The S&P 500 information technology sector rose 1.1%, but it was not today's best performer.
It was the beaten-up energy sector (+1.9%), undeterred by struggling oil prices ($53.29/bbl, -$0.47, -0.9%) and a revenue miss from Halliburton (HAL 19.61, +1.18, +6.4%), that led all sectors in gains. Halliburton said it is cutting costs. Next in line was the financials sector (+1.4%) amid strength in JPMorgan Chase (JPM 123.55, +2.99, +2.5%) and some curve-steepening activity.
The 2-yr yield increased two basis points to 1.59%, and the 10-yr yield increased five basis points to 1.79%. The U.S. Dollar Index was little changed at 97.32.
The materials (-0.4%) and heath care (-0.1%) sectors finished the day lower, with the health care space seeing some disappointment after a proposed $50 billion opioid settlement package was not accepted.
AmerisourceBergen (ABC 86.66, -2.98, -3.3%), Cardinal Health (CAH 50.41, -1.13, -2.2%), McKesson (MCK 147.45, -4.81, -3.2%), and Teva Pharma (TEVA 8.15, +0.65, +8.7%) did agree, however, to a $260 million settlement with two counties in Ohio today. Teva Pharma also announced it reached a separate agreement in principle for a global settlement framework.
Investors did not receive any economic data of note on Monday, but will receive Existing Home Sales for September on Tuesday.
Nasdaq Composite +23.0% YTD
S&P 500 +19.9% YTD
Dow Jones Industrial Average +15.0% YTD
Russell 2000 +15.0% YTD
Market Snapshot
Dow 26827.64 +57.44 (0.21%)
Nasdaq 8162.99 +73.44 (0.91%)
SP 500 3006.72 +20.52 (0.69%)
10-yr Note -4/32 1.800
NYSE Adv 1908 Dec 971 Vol 778.2 mln
Nasdaq Adv 2088 Dec 1051 Vol 1.7 bln
Industry Watch
Strong: Financials, Energy, Information Technology
Weak: Health Care, Materials
Moving the Market
-- Stock market closes near session highs; investor sentiment relatively upbeat
-- Apple (AAPL) sets new 52-week high after Raymond James increased price target to $280 from $225
-- Boeing (BA) downgraded to Neutral by several analysts on Wall Street; continued scrutiny of its handling of the 737 MAX
-- Trading volume was relatively light
Dow dragged lower by Boeing, Johnson & Johnson; tech stocks slide
18-Oct-19 16:20 ET
Dow -255.68 at 26770.20, Nasdaq -67.31 at 8089.55, S&P -11.75 at 2986.20
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market closed lower on this options expiration Friday, as investors leaned cautiously following negative corporate headlines and tepid Chinese data. The S&P 500 opened flat, lost as much as 0.7% intraday, and finished lower by 0.4% like the Russell 2000 (-0.4%).
Huge losses in Boeing (BA 344.00, -25.06, -6.8%) and Johnson & Johnson (JNJ 127.70, -8.47, -6.2%) weighed on the Dow Jones Industrial Average (-1.0%), while weakness in technology stocks undercut the Nasdaq Composite (-0.8%).
Boeing was hit by a report from Reuters suggesting that the company may have misled the FAA about the safety of its 737 MAX based on instant messages between two employees in 2016. Johnson & Johnson disappointed investors after trace levels of asbestos found in some samples of baby powder prompted the company to recall 33,000 bottles.
Boeing and Johnson & Johnson also dragged on the S&P 500 industrials (-0.9%) and health care (-0.3%) sectors, although gains in other health care names helped offset JNJ's loss. Broad-based selling in the top-weighted information technology sector (-0.9%) might have been a de-risking trade after China's Q3 GDP (+6.0%) grew at its slowest year-over-year pace in 27+ years.
American Express (AXP 116.76, -2.34, -2.0%) lost ground despite beating earnings estimates, but the financials sector (+0.2%) was undeterred. The defensive-oriented real estate (+1.0%), utilities (+0.4%), and consumer staples (+0.2%) sectors also finished higher, with the latter getting a lift from Coca-Cola (KO 54.78, +0.99, +1.8%) following its in-line results.
Separately, Fed Vice Chair Clarida said monetary policy is not on a preset course and decisions will be made "meeting by meeting." Data from today, and this week, likely boosted expectations for a rate cut at the October FOMC meeting. The probability for a 25-basis points cut rose to 89.3% on Friday versus 67.3% one week ago, according to the CME FedWatch Tool.
U.S. Treasuries ended the session on a higher note. The 2-yr yield declined four basis points to 1.57%, and the 10-yr yield declined one basis point to 1.75%. The U.S. Dollar Index declined 0.4% to 97.27. WTI crude declined 0.2%, or $0.13, to $53.76/bbl.
Friday's economic data was limited to the Conference Board's Leading Economic Index (LEI) for September:
The Conference Board's Leading Economic Index (LEI) declined 0.1% in September (Briefing.com consensus 0.0%) on the heels of a downwardly revised 0.2% decline (from 0.0%) in August.
The key takeaway from the report is that it fits the narrative of a growth slowdown unfolding in the U.S. economy.
Investors will not receive any notable economic data on Monday but will receive a key report in Existing Home Sales for September on Tuesday.
Nasdaq Composite +21.9% YTD
S&P 500 +19.1% YTD
Dow Jones Industrial Average +14.8% YTD
Russell 2000 +13.9% YTD
Market Snapshot
Dow 26770.20 -255.68 (-0.95%)
Nasdaq 8089.55 -67.31 (-0.83%)
SP 500 2986.20 -11.75 (-0.39%)
10-yr Note +1/32 1.749
NYSE Adv 1375 Dec 1454 Vol 864.1 mln
Nasdaq Adv 1307 Dec 1743 Vol 2.0 bln
Industry Watch
Strong: Real Estate, Utilities, Financials, Consumer Staples
Weak: Information Technology, Industrials, Communication Services
Wall Street closes little changed; earnings remained positive, retail sales declined
16-Oct-19 16:15 ET
Dow -22.82 at 27001.98, Nasdaq -24.52 at 8124.19, S&P -5.99 at 2989.69
https://www.briefing.com/stock-market-update
[BRIEFING.COM] Wall Street finished little changed on Wednesday, as investors weighed negative macro news against another set of mostly positive earnings results. The S&P 500 (-0.2%), Dow Jones Industrial Average (-0.1%) and Nasdaq Composite (-0.3%) closed slightly lower, while the Russell 2000 (+0.1%) inched higher.
The positive reaction to today's batch of earnings reports was limited to shares of companies that reported, namely Bank of America (BAC 30.18, +0.45, +1.5%), United Airlines (UAL 89.70, +1.82, +2.1%), and J.B. Hunt Transport Services (JBHT 115.65, +4.05, +3.6%), as opposed to Tuesday's earnings-driven rally. Eight of the 11 S&P 500 sectors closed near their flat lines.
The energy sector (-1.5%) was today's laggard despite an increase in oil prices ($53.42/bbl, +0.63, +1.2%), followed by the information technology sector (-0.7%) amid weakness in the software stocks. The consumer discretionary sector (+0.4%) outperformed despite an unexpected 0.3% m/m decline in retail sales for September (Briefing.com consensus +0.3%).
The relatively conservative spending did follow an upwardly revised 0.6% increase (from +0.4%) in August, which presumably allayed an overreaction among sellers. Still, the headline figure could feed into the slowdown narrative for the U.S. economy, especially when uncertainty remains on the U.S.-China trade front.
On Wednesday, China threatened unspecified countermeasures against the U.S. after the House of Representatives approved legislation to support pro-democracy protesters in Hong Kong. The Senate has yet to vote on the measures, but the situation could complicate the completion of the first phase of a trade deal with the U.S.
In other potential deals, General Motors (GM 36.65, +0.39, +1.1%) and the UAW reached a tentative agreement that could end the monthlong strike at GM. McKesson (MCK 144.84, +6.67, +4.8%), Cardinal Health (CAH 49.07, +1.17, +2.4%) and AmerisourceBergen (ABC 86.05, +2.85, +3.4%) began talks to settle opioid litigation for $18 billion, according to The Wall Street Journal.
U.S. Treasuries finished the session on a higher note, leaving yields slightly lower. The 2-yr yield and the 10-yr yield both declined two basis points each to 1.59% and 1.75%, respectively. The U.S. Dollar Index declined 0.3% to 98.02.
Reviewing Wednesday's batch of economic data, which featured Retail Sales for September:
Total retail sales declined 0.3% month-over-month in September (Briefing.com consensus +0.3%) following an upwardly revised 0.6% increase (from +0.4%) in August. Excluding autos, retail sales declined 0.1% (Briefing.com consensus +0.2%) after increasing an upwardly revised 0.2% (from 0.0%) in August.
The upward revisions for August cushioned some of the headline blow, yet the key takeaway from the report is that it highlights some relatively conservative consumer spending activity in September that will feed into the slowdown narrative building for the U.S. economy.
Total business inventories were unchanged month-over-month in August (Briefing.com consensus +0.2%) after a downwardly revised 0.3% increase (from 0.4%) in July. Total business sales were up 0.2% following a downwardly revised 0.2% increase (from 0.3%) in July.
The key takeaway from the report is that the gap between inventory growth on a yr/yr basis (+4.2%) and sales growth (+1.1%) remains, which should help keep prices in check.
The NAHB Housing Market Index for October increased to 71 from 68 in September.
The weekly MBA Mortgage Applications Index ticked up 0.5% following a 5.4% increase in the prior week.
Looking ahead, investors will receive Housing Starts and Building Permits for September, Industrial Production and Capacity Utilization for September, the Philadelphia Fed Index for October, and the weekly Initial and Continuing Claims on Thursday.
Nasdaq Composite +22.4% YTD
S&P 500 +19.3% YTD
Dow Jones Industrial Average +15.8% YTD
Russell 2000 +13.1% YTD
Market Snapshot
Dow 27001.98 -22.82 (-0.08%)
Nasdaq 8124.19 -24.52 (-0.30%)
SP 500 2989.69 -5.99 (-0.20%)
10-yr Note +2/32 1.748
NYSE Adv 1496 Dec 1370 Vol 753.0 mln
Nasdaq Adv 1594 Dec 1467 Vol 1.9 bln
Industry Watch
Strong: Materials, Consumer Discretionary
Weak: Information Technology, Energy
Wall Street rises in good start to earnings season
15-Oct-19 16:25 ET
Dow +237.44 at 27024.80, Nasdaq +100.06 at 8148.71, S&P +29.53 at 2995.68
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 rose 1.0% on Tuesday, as JPMorgan Chase (JPM 119.96, +3.51, +3.0%), UnitedHealth (UNH 238.59, +18.00, +8.2%), and Johnson & Johnson (JNJ 132.84, +2.12, +1.6%) kicked off the third quarter reporting season with better-than-expected earnings results.
The Dow Jones Industrial Average gained 0.9%, the Nasdaq Composite gained 1.2%, and the Russell 2000 gained 1.2%.
Most of today's advance came in the early going. The S&P 500 opened just 0.3% higher, and it quickly pushed to session highs amid news that the EU and UK are nearing a draft Brexit deal and that General Motors (GM 36.26, +0.76, +2.1%) and the UAW could also reach a deal soon. Although nothing was finalized, the optimism helped solidify a risk-on mindset following today's batch of better-than-feared earnings results.
The benchmark index traded around the 3000 level for most of the session, supported by gains in nine of its 11 sectors. The health care sector (+1.8%) provided the leadership, followed by the communication services (+1.6%) and financials (+1.3%) sectors. The consumer staples (-0.4%) and utilities (-0.3%) sectors ended the day lower.
Wells Fargo (WFC 50.07, +0.80, +1.6%), Citigroup (C 71.23, +0.99, +1.4%), and Goldman Sachs (GS 206.41, +0.59, +0.3%) each began the day in negative territory after the banks provided mixed results, but a turnaround in shares provided extra support for the early move higher.
Elsewhere, the Philadelphia Semiconductor Index (+2.2%) set a new all-time high on Tuesday. 29 of its 30 components finished higher, with NVIDIA (NVDA 196.37, +9.84, +5.3%) advancing the most after its price target was raised to $250 from $225 at Bank of America/Merrill Lynch.
Trade news continued to make headlines, although the muted reaction likely reflected some exhaustion to trade speculation. "People familiar with the matter" told Bloomberg News that China may struggle fulfilling part of its agreement to purchase $50 billion of U.S. agricultural goods unless President Trump lifts retaliatory tariffs.
U.S. Treasuries finished near their session lows, leaving yields slightly higher. The 2-yr yield increased one basis point to 1.61%, and the 10-yr yield increased two basis points to 1.77%. The U.S. Dollar Index declined 0.2% to 98.31. WTI crude declined 1.4%, or $0.76, to $53.55/bbl.
Tuesday's economic data was limited to the Empire State Manufacturing Survey for October, which increased to 4.0 (Briefing.com consensus -1.0) from 2.0. On Wednesday, investors will receive Retail Sales for September, Business Inventories for August, the weekly MBA Mortgage Applications Index, and Net Long-Term TIC Flows for August.
Nasdaq Composite +22.8% YTD
S&P 500 +19.5% YTD
Dow Jones Industrial Average +15.9% YTD
Russell 2000 +13.0% YTD
Market Snapshot
Dow 27024.80 +237.44 (0.89%)
Nasdaq 8148.71 +100.06 (1.24%)
SP 500 2995.68 +29.53 (1.00%)
10-yr Note -25/32 1.770
NYSE Adv 1846 Dec 1015 Vol 733.7 mln
Nasdaq Adv 2204 Dec 866 Vol 1.8 bln
Industry Watch
Strong: Health Care, Communication Services, Financials
Weak: Consumer Staples, Utilities, Real Estate
Moving the Market
-- Stocks rise in good start to Q3 earnings season
-- JPMorgan Chase (JPM) and UnitedHealth (UNH) finish noticeably higher following positive, and better-than-feared, earnings results
-- The UK and EU reportedly closing in on a draft Brexit deal
-- Risk-on mindset, although trading volume wasn't too great
Stocks Show Little Movement on Columbus Day
14-Oct-19 16:15 ET
Dow -29.23 at 26787.36, Nasdaq -8.39 at 8048.65, S&P -4.12 at 2966.15
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The major averages began the week on a very quiet note. The S&P 500 shed 0.1% after spending the day in a ten-point range while the Dow Jones Industrial Average (-0.1%) and Nasdaq (-0.1%) also settled just below their flat lines. The Russell 2000 lost 0.4% after showing relative strength on Friday.
Last week featured a torrent of headlines related to trade negotiations between officials from China and the U.S., so it wasn't too surprising that the market remained focused on what was and wasn't accomplished during Friday's talks.
Overnight reports in Chinese media spoke about last week's negotiations in conservative terms, prompting worries that the signing of the "phase one" deal will remain elusive. These worries weighed on equity futures in early-morning trade, but a recovery took place after President Trump and Treasury Secretary Mnuchin reiterated that the partial deal will be finalized and signed in time for the Asia-Pacific Economic Cooperation summit in Chile in mid-November.
The comments from top U.S. officials helped the major averages start near their flat lines, but investors who took part in today's holiday session were not eager to push the market in either direction. As a result, fewer than 650 million shares changed hands at the NYSE floor.
Nine out of eleven sectors settled in the red, but only three sectors—materials (-0.8%), utilities (-0.7%), and consumer staples (-0.4%)—lost more than 0.2%. On the flip side, financials (+0.1%) and real estate (+0.1%) eked out slim gains.
Bank stocks like Citigroup (C 70.24, +0.14, +0.2%), Goldman Sachs (GS 205.82, +1.14, +0.6%), JPMorgan Chase (JPM 116.45, +0.31, +0.3%), and Wells Fargo (WFC 49.27, +0.06, +0.1%) outperformed modestly leading up to the release of their Q3 results tomorrow morning.
Market participants did not receive any economic data today, and tomorrow's data will be limited to the 8:30 ET release of the Empire State Manufacturing Survey for October (Briefing.com consensus -1.0).
Nasdaq +21.3% YTD
S&P 500 +18.3% YTD
Dow Jones Industrial Average +14.8% YTD
Russell 2000 +11.6% YTD
Market Snapshot
Dow 26787.36 -29.23 (-0.11%)
Nasdaq 8048.65 -8.39 (-0.10%)
SP 500 2966.15 -4.12 (-0.14%)
10-yr Note UNCH 1.752
NYSE Adv 1275 Dec 1569 Vol 631.5 mln
Nasdaq Adv 1234 Dec 1828 Vol 1.40 bln
Industry Watch
Strong: Financials, Health Care, Consumer Discretionary
Weak: Industrials, Consumer Staples, Utilities, Materials
Moving the Market
Reduced participation expected due to Columbus Day: bond market closed
Some questions about amount of progress achieved by "phase one" deal with China
U.S. stocks rise ahead of key trade meeting tomorrow
10-Oct-19 16:15 ET
Dow +150.66 at 26496.67, Nasdaq +47.04 at 7950.78, S&P +18.73 at 2938.17
https://www.briefing.com/stock-market-update
[BRIEFING.COM] Wall Street ended Thursday on a positive note, as investors looked ahead to a supposed meeting between President Trump and China's Vice Premier, Liu He, tomorrow. The S&P 500 rose 0.6%, comparable to the gains in the Dow Jones Industrial Average (+0.6%), Nasdaq Composite (+0.6%), and Russell 2000 (+0.4%).
The session began on flat note, which was a noteworthy feat considering U.S. futures dropped over 1.0% last night on a negative-sounding report from China. That report indicated that no progress was made among deputy officials in Washington and that officials may leave talks early. The latter was edited later to reflect the planned two-day stay.
A tweet from President Trump in which he said he will meet with the Vice Premier at the White House on Friday quickly sent stocks higher and U.S. Treasuries even lower. Ten of the 11 S&P 500 sectors finished in positive territory, with the energy (+1.3%) and financial (+1.0%) sectors advancing the most. The utilities sector (-0.1%) was the lone holdout amid the higher Treasury yields.
The 2-yr yield (1.53%) and the 10-yr yield (1.66%), which both rose seven basis points, initially started to sell off after yr/yr changes in consumer prices reflected a firming of consumer inflation. The U.S. Dollar Index fell 0.4% to 98.69. WTI crude rose 1.8% (+$0.94) to $53.57/bbl.
Regarding a possible outcome of tomorrow's talks, several news outlets reported that a partial deal could include a currency pact and an agreement to prevent any tariff rate increases. This could help the earnings prospects of companies with exposure to China, namely those within the materials (+1.0%), industrials (+0.9%), and information technology (+0.6%) sectors.
Corporate news was largely overshadowed by the influx of trade headlines.
Notable large-cap movers included Cisco Systems (CSCO 46.15, -0.69, -1.5%), Netflix (NFLX 280.48, +12.95, +4.8%), and Delta Air Lines (DAL 53.10, -0.82, -1.5%). Cisco was downgraded to Neutral from Buy at Goldman Sachs. Netflix brushed off two more analyst price cuts. Delta Air Lines guided Q4 EPS with a midpoint that was below expectations.
Outsized moves belonged to Bed Bath & Beyond (BBBY 12.09, +2.15, +21.6%) and PG&E (PCG 7.79, -3.19, -29.1%). Bed Bath & Beyond appointed former Target (TGT 110.57, +0.21, +0.2%) executive Mark Tritton as its President and CEO. In PG&E's case, a bankruptcy judge decided to allow other parties to put forth a Chapter 11 restructuring plan for the company.
Reviewing Thursday's economic data, which included the Consumer Price Index for September and the weekly Initial and Continuing Claims report:
Total CPI was unchanged m/m in September (Briefing.com consensus +0.1%) while core CPI, which excludes food and energy, was up 0.1% (Briefing.com consensus +0.2%). That left the yr/yr changes at 1.7% and 2.4%, respectively, which were the same increases seen in August.
The key takeaway from the report is that the yr/yr changes connote a firming of consumer inflation, which could give the Fed some possible cover to hold off on a rate cut in October.
Initial claims for the week ending October 5 decreased by 10,000 to 210,000 (Briefing.com consensus 220,000). Continuing claims for the week ending Sept. 28 increased by 29,000 to 1.684 million.
The key takeaway from this report was that the low level of initial claims connotes continuing firming in the labor market, which could give the Fed some possible cover to hold off on a rate in October.
Looking ahead, investors will receive the preliminary October reading for the University of Michigan's Index of Consumer Sentiment and Import and Export Prices for September on Friday.
Nasdaq Composite +19.8% YTD
S&P 500 +17.2% YTD
Dow Jones Industrial Average +13.6% YTD
Russell 2000 +10.1% YTD
Market Snapshot
Dow 26496.67 +150.66 (0.57%)
Nasdaq 7950.78 +47.04 (0.60%)
SP 500 2938.17 +18.73 (0.64%)
10-yr Note -29/32 1.667
NYSE Adv 1754 Dec 1.8 bln Vol 800.0 mln
Nasdaq Adv 1730 Dec 1336 Vol 1.8 bln
Industry Watch
Strong: Energy, Financials, Materials
Weak: Utilities, Real Estate
Stocks close near lows as U.S. blacklists more Chinese firms
08-Oct-19 16:25 ET
Dow -313.98 at 26164.04, Nasdaq -132.52 at 7823.78, S&P -45.73 at 2893.10
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 fell 1.6% on Tuesday following a series of trade developments that exacerbated concerns about upcoming trade talks and global growth prospects. The Dow Jones Industrial Average (-1.2%), Nasdaq Composite (-1.7%), and Russell 2000 (-1.7%) also posted sizable losses to close near session lows.
The U.S. Commerce Department placed 28 more Chinese firms on its Entity List for their role in fostering violations of human rights against a Muslim minority in China. Beijing's foreign ministry spokesman denied the allegations and warned about possible retaliation, with a report suggesting China could even leave this week's discussions one day early.
Selling pressure appeared to level off after China's Global Times reported that China remains sincere in reaching a comprehensive deal and intends on proceeding "calmly." Stocks then cut losses after Fed Chair Powell said the Fed plans on expanding its balance sheet, but quickly faded into the close on news that the U.S. will impose visa bans on Chinese officials linked to the human rights abuses.
All 11 S&P 500 sectors finished lower in a risk-off session. Nine sectors lost at least 1.0%, including a 2.0% drop in the financials sector. The real estate sector (-0.5%) declined the least.
A disappointing outcome in trade talks was likely being priced in but also the likelihood that the tariff rate on $250 billion of Chinese imports will increase to 30% from 25% on Oct. 15, as planned. In other words, the trade uncertainty continued to dampen the growth outlook for the economy and corporate earnings.
Many of the China-sensitive semiconductor stocks, including Ambarella (AMBA 51.79, -5.43, -9.5%), underperformed as many of these companies derive a sizable portion of their revenue from China. The Philadelphia Semiconductor Index dropped 3.1% on Tuesday.
U.S. Treasuries ended a volatile session on a higher note amid growth concerns and an unexpected decline in producer prices for September. The 2-yr yield declined four basis points to 1.42%, and the 10-yr yield declined two basis points to 1.54%. The U.S. Dollar Index increased 0.2% to 99.13. WTI crude declined 0.3%, or $0.13, to $52.66/bbl.
Reviewing Tuesday's economic data, which included the Producer Price Index for September and the NFIB Small Business Optimism Index for September:
The Producer Price Index for final demand declined 0.3% m/m in September (Briefing.com consensus +0.1%), as did the index for final demand less food and energy (Briefing.com consensus +0.2%).
The key takeaway from the report is that the price declines were broad based, and not just energy-related, which is indicative of an environment characterized by weaker demand. The Producer Price Index for September wasn't good news, unless it's spun as a "bad news is good news" kind of thing because it seemingly strengthened the case for a Fed rate cut later this month.
The NFIB Small Business Optimism Index for September declined to 101.8 from 103.1.
Looking ahead, investors will receive the Minutes from the FOMC's September meeting, the JOLTS - Job Openings report for August, the Wholesale Inventories report for August, and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +17.9% YTD
S&P 500 +15.1% YTD
Dow Jones Industrial Average +12.2% YTD
Russell 2000 +9.2% YTD
Market Snapshot
Dow 26164.04 -313.98 (-1.19%)
Nasdaq 7823.78 -132.52 (-1.67%)
SP 500 2893.10 -45.73 (-1.56%)
10-yr Note +2/32 1.539
NYSE Adv 686 Dec 1926 Vol 805.7 mln
Nasdaq Adv 666 Dec 2420 Vol 1.9 bln
Industry Watch
Strong: Real Estate
Weak: Financials, Health Care, Information Technology
Moving the Market
-- Stocks decline in broad-based retreat on exacerbated concerns about trade and growth
-- U.S. placed 28 Chinese firms on its trade blacklist for their part in fostering human rights abuses against a Muslim minority in China; will impose some visa restrictions
-- China denies violations and warns it could retaliate; still plans on proceeding calmly and is reportedly sincere in reaching a comprehensive deal
-- Fed Chair Powell said the Fed intends on expanding its balance sheet but says it should not be mistaken as "QE"
-- Weakness in the China-sensitive semiconductor stocks
Wall Street rallies on modest jobs growth to end week on positive note
04-Oct-19 16:15 ET
Dow +372.68 at 26573.72, Nasdaq +110.21 at 7982.48, S&P +41.38 at 2952.05
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 rose 1.4% on Friday, with buying momentum picking up after the release of the Employment Situation Report for September and continuing throughout the day. It was a broad-based rally, led by shares of financial and technology companies, although trading volume was lighter than usual.
The Dow Jones Industrial Average (+1.4%) and Nasdaq Composite (+1.4%) kept pace with the benchmark index, followed by the Russell 2000 (+1.0%).
The U.S. economy added 136,000 jobs to nonfarm payrolls in September, which was slightly below expectations (Briefing.com consensus 150,000) but also better than expected when accounting for the upward revisions in August and July. The unemployment rate hit a 50-year low at 3.5% (Briefing.com consensus 3.7%), while average hourly earnings were unchanged (Briefing.com consensus 0.3%).
Some pointed to no wage growth as a disappointment, but the modest jobs growth helped subdue this week's general growth concerns. Fed Chair Powell also repeated his view that the U.S. economy is "in a good place." The general sense of relief in the market helped the S&P 500 close above its 50-day moving average (2942).
All 11 S&P 500 sectors finished higher. Eight sectors finished up at least 1.0%, including noticeable gains in the financials (+1.9%) and information technology (+1.7%) sectors. Apple (AAPL 227.01, +6.19, +2.8%) carried the tech sector higher after the Nikkei Asian Review reported the company asked suppliers to increase production for the iPhone 11 by up to 10%.
HP (HPQ 16.64, -1.76, -9.6%) was left out of today's rally. The company announced it will reduce its global headcount by 7,000 to 9,000 employees as part of a restructuring plan. HP also authorized a $5 billion share repurchase program and raised its dividend by 10%.
U.S. Treasuries finished little changed despite the bullish bias in equities. The 2-yr yield increased one basis point to 1.39%, while the 10-yr yield declined basis points to 1.52%. The U.S. Dollar Index finished little changed at 99.80. WTI crude rose 0.6%, or $0.30, to $52.78/bbl.
Reviewing Friday's economic data, which featured the Employment Situation Report for September and included the Trade Balance report for August:
September nonfarm payrolls were roughly in-line with expectations, but actually better than expected when accounting for the upward revision to nonfarm payrolls for August and July. September nonfarm payrolls increased by 136,000 (Briefing.com consensus 150,000). The unemployment rate dropped to 3.5%, which is the lowest since December 1969.
One key takeaway is that the 50-year low unemployment rate will play well politically in the present for the current administration. Another key takeaway, though, is that the average hourly earnings growth (actually, there was none) won't play so well economically.
The trade deficit for August widened to $54.9 billion (Briefing.com consensus -$54.4 billion) from -$54.0 billion in July, as exports were $0.5 billion more than July exports while imports were $1.3 billion more than July imports.
The key takeaway from the report is the understanding that trade continues to drag on GDP growth, evidenced by the average third quarter real trade deficit being 0.8% above the second quarter average.
Looking ahead, investors will receive the Consumer Credit report for August on Monday.
Nasdaq Composite +20.3% YTD
S&P 500 +17.8% YTD
Dow Jones Industrial Average +13.9% YTD
Russell 2000 +11.3% YTD
Market Snapshot
Dow 26573.72 +372.68 (1.42%)
Nasdaq 7982.48 +110.21 (1.40%)
SP 500 2952.05 +41.38 (1.42%)
10-yr Note +24/32 1.515
NYSE Adv 2098 Dec 723 Vol 720.3 mln
Nasdaq Adv 2071 Dec 991 Vol 1.7 bln
Industry Watch
Strong: Financials, Information Technology
Weak: Materials
Moving the Market
-- Stock market ends week on positive note, rallies following decent employment
-- U.S. added 136,000 nonfarm payrolls to the economy; unemployment rate hit 50-year low at 3.5%; earnings growth was unchanged
-- Strength in Apple (AAPL) and its suppliers on news Apple asked to increase production for the iPhone 11 by up to 10%
-- Relatively light trading volume
Stocks recover from short-term oversold condition, soft data boosts rate-cut expectations
03-Oct-19 16:20 ET
Dow +122.42 at 26201.04, Nasdaq +87.02 at 7872.27, S&P +23.02 at 2910.67
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 dropped as much as 1.1% on Thursday after the ISM Non-Manufacturing Index for September came in weaker than expected, but the market quickly bounced back while rate-cut expectations increased. The benchmark index ended the day up 0.8%, finishing near session highs to recoup some losses from a two-day drop.
The Nasdaq Composite (+1.1%) advanced the most, followed by 0.5% gains in the Dow Jones Industrial Average (+0.5%) and Russell 2000 (+0.5%). All were also down more than 1.0% today.
Stocks opened the day struggling to find direction in front of that non-manufacturing index, which declined to 52.6% (Briefing.com consensus 55.4%) from 56.4% in August. The consumer-oriented services sector remained in expansion mode, but the slower growth fed into concerns that the manufacturing weakness was trickling over to the U.S. consumer.
At its intraday low, the S&P 500 was down 4.1% from Monday's close, which is to say the market may have fallen too far, too fast. An opportunistic mindset took fold, which likely contributed to some short-covering activity, to help the broader market bounce from a short-term oversold condition.
All 11 S&P 500 sectors rallied off their lows and finished in the green. The energy (+1.3%), information technology (+1.2%), and real estate (+1.2%) sectors outperformed, as did the Philadelphia Semiconductor Index (+1.7%). The financials sector (+0.2%) squeezed out a last-minute gain, even as Treasury yields continued to decline.
The 2-yr yield dropped ten basis points to 1.38%, and the 10-yr yield dropped seven basis points to 1.53%. The U.S. Dollar Index declined 0.1% to 98.90. WTI crude lost 0.5%, or $0.20, to $52.4/bbl.
The yield on the fed-funds sensitive 2-yr note fell to its lowest level since September 2017, as expectations for additional rate cuts continued to increase. According to the CME FedWatch Tool, the probability for a 25-basis points cut at the October FOMC meeting is about 90%, and a further quarter-point cut in December is over 50%. Both are up considerably from last week.
Corporate news included Facebook (FB 179.38, +4.78, +2.7%) announcing a camera-first messaging app, named Threads, for its Instagram platform. Shares of Snap (SNAP 14.30, -0.50) fell 3.4% in response. PepsiCo (PEP 137.93, +3.99, +3.0%) reported positive earnings results. Constellation Brands (STZ 194.26, -12.53, -6.1%) did, too, but shares still declined. Tesla (TSLA 233.03, -10.10, -4.2%) reported record Q3 deliveries but missed estimates.
Reviewing Thursday's economic data, which included the ISM Non-Manufacturing Index for September, the weekly Initial and Continuing Claims report, and Factory Orders for August:
The ISM Non-Manufacturing Index for September fell to 52.6% (Briefing.com consensus 55.4%) from 56.4% in August. The dividing line between expansion and contraction is 50.0%, so the September number connotes a services sector that is expanding, but at a slower pace.
The key takeaway from the report is that it shows a slowdown in non-manufacturing growth. Accordingly, it is fanning concerns that the manufacturing recession, and trade uncertainty, are having a broader effect on the consumer-oriented services sector.
Initial claims for the week ending September 28 increased by 4,000 to 219,000 (Briefing.com consensus 215,000) while continuing claims for the week ending September 21 decreased by 5,000 to 1,651,000.
The key takeaway from the report is that there weren't any noticeable deviations in underlying claims trends, which have been encouraging for some time.
Factory Orders for August declined 0.1% (Briefing.com consensus 0.0%) following an unrevised 1.4% increase in July. Shipments were also down 0.1% after declining 0.3% in July.
The key takeaway from the report is that business spending was relatively weak again in August.
Looking ahead, investors will receive the Employment Situation Report for September and the Trade Balance report for August on Friday.
Nasdaq Composite +18.6% YTD
S&P 500 +16.1% YTD
Dow Jones Industrial Average +12.3% YTD
Russell 2000 +10.2% YTD
Market Snapshot
Dow 26201.04 +122.42 (0.47%)
Nasdaq 7872.27 +87.02 (1.12%)
SP 500 2910.67 +23.02 (0.80%)
10-yr Note +6/32 1.538
NYSE Adv 1818 Dec 1015 Vol 801.4 mln
Nasdaq Adv 1888 Dec 1174 Vol 2.1 bln
Industry Watch
Strong: Energy, Real Estate, Information Technology
Weak: Financials
Moving the Market
-- Stocks finish higher after initially selling off after ISM Non-Manufacturing Index for September declined more than expected
-- Bounce from a short-term oversold condition, expectations for more rate cuts increased
-- Treasury yields continued to decline
Stocks fall for second day as investors reassess earnings prospects, valuations
02-Oct-19 16:20 ET
Dow -494.42 at 26078.62, Nasdaq -123.44 at 7785.25, S&P -52.64 at 2887.65
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 fell 1.8% on Wednesday, as growth concerns continued to force investors to reassess earnings prospects and premium valuations. The Dow Jones Industrial Average lost 1.9%, the Nasdaq Composite lost 1.6%, and the Russell 2000 lost 0.9%.
All 11 S&P 500 sectors finished in the red with ten sectors losing between 1.3% (utilities) and 2.6% (energy) -- much like yesterday when investors dumped equities indiscriminately and sought safety in less risky assets like U.S. Treasuries and gold ($1507.90, +19.20, +1.3%). This time, though, there was a bit more speculation and some corporate news to sift through.
Yesterday's data made it clear the U.S. manufacturing sector was weak, which caused many investors to begin to worry if global weakness would catch up to the U.S. consumer, too. This same sentiment caused more heavy selling in the cyclical sectors today and even in Apple (AAPL 218.96, -5.63, -2.5%), which had seemingly been immune to the market's recent struggles.
The market saw its worst levels of the day just before 1:00 p.m. ET, with investors perhaps beginning to look ahead to tomorrow's ISM Non-Manufacturing Index for September. This report could ameliorate or worsen the market's concerns about the economy's biggest segment: the U.S. consumer and services sector.
On a related note, private-sector jobs growth was modest in September, increasing by 135,000 in the ADP Employment Change report. This didn't do much to alter the modest expectations for Friday's nonfarm payrolls number (Briefing.com consensus 150,000).
Although the market closed off its lows, it was still a disappointing day for the stock market. Notable laggards included Delta Air Lines (DAL 54.35, -2.66, -4.7%) after it raised its FY19 unit cost outlook to +2% from +1% and Exxon Mobil (XOM 67.15, -1.80, -2.6%) after an SEC filing revealed its results could come in lighter than expected due to lower oil prices.
WTI crude lost 1.8%, or $0.90, to $52.64/bbl to extend its recent decline amid bearish inventory data and growth concerns. These growth concerns also contributed to another advance in Treasuries, driving yields lower across the curve. The 2-yr yield declined eight basis points to 1.48%, and the 10-yr yield declined five basis points to 1.60%. The U.S. Dollar Index declined 0.1% to 99.02.
Separately, New York Fed President John Williams (FOMC voter) said he thinks monetary policy is "in the right place" at this time. Market participants, meanwhile, increased their expectations for a 25-basis points rate cut at the October FOMC meeting, according to the CME FedWatch Tool. This probability increased to 75.4% from 53.4% one week ago.
Reviewing Wednesday's economic data, which included the ADP Employment Change report for September and the weekly MBA Mortgage Applications Index:
Private-sector payrolls were estimated to have increased by 135,000 in September (Briefing.com consensus 150,000) while the prior month's print was revised down to 157,000 from 195,000. Private-sector job growth averaged 145,000 in the third quarter, according to ADP, versus 214,000 in the third quarter of 2018.
Today's report is unlikely to sway expectations for Friday's nonfarm payrolls number (Briefing.com consensus 150,000), which is to say the market is expecting somewhat modest growth.
The weekly MBA Mortgage Applications Index rebounded 8.1% following a 10.1% decline in the prior week.
Looking ahead, investors will receive the ISM Non-Manufacturing Index for September, the weekly Initial and Continuing Claims report, and Factory Orders for August on Thursday.
Nasdaq Composite +17.3% YTD
S&P 500 +15.2% YTD
Dow Jones Industrial Average +11.8% YTD
Russell 2000 +9.7% YTD
Market Snapshot
Dow 26078.62 -494.42 (-1.86%)
Nasdaq 7785.25 -123.44 (-1.56%)
SP 500 2887.65 -52.64 (-1.79%)
10-yr Note +25/32 1.598
NYSE Adv 615 Dec 2188 Vol 940.0 mln
Nasdaq Adv 826 Dec 2278 Vol 2.4 bln
Industry Watch
Strong: Real Estate
Weak: Energy, Financials, Information Technology, Industrials
Moving the Market
-- Stocks fall for second straight day as investors continued to reassess earnings prospects, valuations
-- Weakness in the cyclical sectors, especially energy as oil prices continued to decline
-- Lingering worries ahead of tomorrow's ISM Non-Manufacturing Index for September
-- Less risky assets like Treasuries and gold saw increased demand
Wall Street gives back more than 1% on weak manufacturing data
01-Oct-19 16:25 ET
Dow -343.79 at 26573.04, Nasdaq -90.65 at 7908.69, S&P -36.49 at 2940.29
https://stockcharts.com/def/servlet/ScanUI
[BRIEFING.COM] The stock market gave back more than 1% on Tuesday, as weak manufacturing data for September revived growth concerns that forced investors to reconsider valuations. Today's 1.2% decline in the S&P 500 sent it below its 50-day moving average (2948) on a closing basis.
The Dow Jones Industrial Average (-1.3%) and Nasdaq Composite (-1.1%) posted comparable losses, while the Russell 2000 (-2.0%) underperformed its large-cap peers.
The session did begin on a higher note, as investors brushed aside another set of weak manufacturing PMIs out of Japan and the eurozone. Investors expecting the U.S. to remain resilient in the face of global weakness were disappointed after the ISM Manufacturing Index for September declined to 47.8% (Briefing.com consensus 50.2%) from 49.1% in August for its worst reading since June 2009.
The S&P 500 took a precipitous fall soon after the report was released at 10:00 a.m. ET, then embarked on a steady retreat throughout the rest of the day. All 11 S&P 500 sectors finished lower, with the cyclical industrials (-2.4%), materials (-2.3%), energy (-2.3%), and financials (-2.1%) sectors bearing the brunt of the damage.
Even the defensive-oriented, yet richly valued, consumer staples (-0.3%) and utilities (-0.3%) sectors finished lower. This was partly due to lingering doubts if the U.S. consumer would remain resilient, given the weakening employment conditions in the manufacturing sector.
Growth concerns were made apparent across other capital markets, too. Demand for Treasuries increased, pulling yields down from early highs; oil prices ($53.60/bbl, -0.52, -1.0%) erased gains and finished lower again; and gold futures ($1488.70/ozt, +15.40, +1.1%) increased in value.
The 2-yr yield declined six basis points to 1.56%, and the 10-yr yield declined three basis points to 1.64%. The 10-yr note yield hit 1.75% at its high after a weak 10-yr debt auction in Japan caused a sell-off in Japanese bonds that trickled over to sovereign debt in Europe and the U.S. The U.S. Dollar Index declined 0.3% to 99.13.
Another big story today was Charles Schwab (SCHW 37.76, -4.07, -9.7%) announcing it will eliminate commissions for stocks, ETFs, and options listed on U.S. or Canadian exchanges. Shares of E*Trade (ETFC 36.51, -7.18, -16.4%) and TD Ameritrade (AMTD 34.64, -12.06, -25.8%), which derive more of their revenue from trading fees than Schwab, plunged accordingly.
Reviewing Tuesday's economic data, which included the ISM Manufacturing Index for September and Construction Spending for August:
The ISM Manufacturing Index for September slumped to 47.8% (Briefing.com consensus 50.2%) from 49.1% in August. The dividing line between expansion and contraction is 50.0%. September marks the second straight month the index has been below 50% and it is the lowest reading since June 2009.
The key takeaway from the report is that the contraction is a byproduct of weakening business confidence that is stemming in part from the trade uncertainty.
Total construction spending increased 0.1% m/m in August (Briefing.com consensus +0.4%) following a downwardly revised unchanged reading (from +0.1%) for July.
The key takeaway from the report is that private construction spending remains weak (down 4.0% yr/yr), saddled by a downturn in residential spending that has stemmed in large part from a decline in new single-family construction (down 6.6% yr/yr).
Looking ahead, investors will receive the ADP Employment Change report for September and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +19.2% YTD
S&P 500 +17.3% YTD
Dow Jones Industrial Average +13.9% YTD
Russell 2000 +10.7% YTD
Apple leads Wall Street to higher finish to close out third quarter
30-Sep-19 16:20 ET
Dow +96.58 at 26916.83, Nasdaq +59.71 at 7999.34, S&P +14.95 at 2976.78
https://www.briefing.com/stock-market-update
[BRIEFING.COM] Wall Street finished higher on Monday to wrap up the third quarter. The S&P 500 (+0.5%), Dow Jones Industrial Average (+0.4%), and Nasdaq Composite (+0.8%) posted respectable gains, lifted by shares of Apple (AAPL 223.97, +5.15, +2.4%) after JP Morgan raised its price target to $265 from $243. The Russell 2000 increased 0.2%.
Investor sentiment lightened up from Friday after a Treasury spokeswoman tweeted on Saturday that the administration was not planning to block Chinese companies from U.S. stock exchanges "at this time." For good measure, White House trade advisor Peter Navarro dismissed the report that first suggested this possibility as mostly false.
Today, in turn, was a relatively calm session in which the broader market drifted higher throughout the day amid strength in the S&P 500 information technology (+1.0%) and health care (+0.9%) sectors. The trade-sensitive Philadelphia Semiconductor Index (+1.0%) also outperformed, with Taiwan Semi (TSM 46.48, +0.97, +2.1%) setting a 52-week high after Goldman Sachs added the stock to its Conviction Buy List.
The S&P 500 utilities sector (+0.1%) struggled to match the benchmark index, while the financials (-0.1%) and energy (-0.8%) sectors finished in negative territory. Another decline in oil prices ($54.12/bbl, -1.78, -3.2%) weighed on the oil-sensitive energy stocks, as Saudi Arabia reportedly returned to normal oil output and Chinese data continued to show weakness in the country's manufacturing sector.
Specifically, China's official Manufacturing PMI did improve to 49.8 in September from 49.5 August, but the reading below 50.0 indicated the sector remained in contraction territory. The Chicago PMI for September, meanwhile, fell back into contraction territory with a reading of 47.1 (Briefing.com consensus 50.8).
Growth concerns weren't evident in the stock market, though, as it pushed higher following the release of the Chicago PMI. U.S. Treasuries did see some slight buying interest after the report, which helped bring yields down to their unchanged marks in a relatively tight-ranged session.
The 2-yr yield and the 10-yr yield finished unchanged at 1.62% and 1.68%, respectively. The U.S. Dollar Index increased 0.3% to 99.40. Gold futures, which had rallied alongside a stronger dollar this quarter, declined 2.2% (-$33.10) to $1473.30/ozt.
Monday's economic data was limited to the Chicago PMI for September, which declined to 47.1 (Briefing.com consensus 50.8) from 50.4 in August. 50.0 is the dividing line between an expansion and contraction.
On Tuesday, investors will receive the ISM Manufacturing Index for September, Construction Spending for August, and auto and truck sales for September.
Nasdaq Composite +20.6% YTD
S&P 500 +18.7% YTD
Dow Jones Industrial Average +15.4% YTD
Russell 2000 +13.0% YTD
Market Snapshot
Dow 26916.83 +96.58 (0.36%)
Nasdaq 7999.34 +59.71 (0.75%)
SP 500 2976.78 +14.95 (0.50%)
10-yr Note +1/32 1.671
NYSE Adv 1626 Dec 1226 Vol 900.0 mln
Nasdaq Adv 1727 Dec 1381 Vol 1.8 bln
Industry Watch
Strong: Health Care, Information Technology, Consumer Discretionary
Weak: Energy, Financials
Moving the Market
-- Stock market ends third quarter on high note, led by relative strength in the S&P 500 information technology and health care sectors
-- Apple (AAPL) shares gained 2.4% after JP Morgan raised its AAPL price target to $265 from $243
-- White House downplayed news that it was considering limiting U.S. investment in China, delisting Chinese companies at this time
-- Oil prices extended losses; Saudi Arabia reportedly restored normal oil output, Chinese data remained weak
-- Relatively light trading volume
Stocks end week on sour note amid trade concerns
27-Sep-19 16:20 ET
Dow -70.87 at 26820.25, Nasdaq -91.03 at 7939.63, S&P -15.83 at 2961.83
https://www.briefing.com/stock-market-update
[BRIEFING.COM] U.S. stocks ended the week on a sour note following news that the White House is considering restricting U.S. investment in China. The ensuing weakness in technology stocks weighed heavily on the Nasdaq Composite (-1.1%), but stocks did close off session lows, leaving the S&P 500 (-0.5%) and Dow Jones Industrial Average (-0.3%) with modest losses. The Russell 2000 lost 0.8%.
According to Bloomberg, there have been talks to limit U.S. investors' portfolio flows to China and delist Chinese companies from U.S. stock exchanges. The news erased an early 0.3% gain in the S&P 500, which then fell as much as 1.1% amid a host of concerns, which included a re-escalation of tensions, possible Chinese retaliation, and trade talks on Oct. 10-11 not going as planned.
Nine of the 11 S&P 500 sectors finished in the red, led lower by the trade-sensitive, and heavily-weighted, information technology sector (-1.3%). Semiconductor stocks like Micron (MU 43.21, -5.39, -11.1%) were especially weak, as well as Chinese stocks listed in the U.S. -- Alibaba (BABA 165.98, -9.02, -5.2%), JD.com (JD 27.82, -1.76, -6.0%), and Baidu (BIDU 101.21, -3.86, -3.7%).
To be fair, Micron was already down big prior to the news, as investors reacted negatively to its soft gross margin guidance and a record inventory level. Micron suppliers Lam Research (LRCX 230.08, -12.75, -5.3%) and Applied Materials (AMAT 49.43, -2.72, -5.2%) underperformed. The Philadelphia Semiconductor Index dropped 2.4%.
The S&P 500 briefly fell below its 50-day moving average (2949), but buyers quickly stepped in to bring the benchmark index back above the key technical level. Relative strength in S&P 500 financials sector (+0.2%) supported the rebound attempt, while the energy sector (unch) returned to its unchanged mark.
Wells Fargo (WFC 50.71, +1.84, +3.8%) led the financials sector in gains after it announced Charles W. Scharf will be its next CEO, effective Oct. 21. Mr. Scharf was previously the CEO of BNY Mellon (BK 44.53, -2.10, -4.5%) and held executive positions at JPMorgan Chase, Citigroup, and Salomon Smith Barney prior to BNY Mellon.
U.S. Treasuries finished the session slightly higher, pushing yields lower. The 2-yr yield declined three basis points to 1.62%, and the 10-yr yield declined one basis point to 1.68%. The U.S. Dollar Index was unchanged at 99.10. WTI crude fell 0.9% (-$0.51) to $55.90/bbl, returning to levels before the drone attack on Saudi Arabia's oil refineries two weeks ago.
Reviewing Friday's batch of economic data:
Personal income was up 0.4%, as expected, in August, while personal spending was up 0.1% (Briefing.com consensus +0.3%). The PCE Price Index was unchanged (Briefing.com consensus +0.1%), leaving it up 1.4% yr/yr for the fourth straight month, and the core PCE Price Index, which excludes food and energy, was up 0.1% (Briefing.com consensus +0.2%), leaving it up 1.8% yr/yr, versus up 1.7% in July.
The key takeaway from the report is that real PCE was up only 0.1% in August, which will temper growth forecasts for Q3 GDP.
The final September reading for the University of Michigan's Index for Consumer Sentiment printed at 93.2 (Briefing.com consensus 92.1), up from the preliminary reading of 92.0 and the final reading of 89.8 for August.
The key takeaway from the report is the finding that consumers are starting to express rising levels of economic uncertainty, with trade policies having the greatest negative impact on consumers.
Durable goods orders increased 0.2% in August (Briefing.com consensus -1.0%), which was better than expected, while durable goods orders excluding transportation jumped 0.5% (Briefing.com consensus +0.2%).
The headline numbers were good, yet the key takeaway from the report is that nondefense capital goods orders excluding aircraft declined 0.2%, which is a soft sign for third quarter business spending.
Looking ahead, investors will receive the Chicago PMI for September on Monday.
Nasdaq Composite +19.7% YTD
S&P 500 +18.2% YTD
Dow Jones Industrial Average +15.0% YTD
Russell 2000 +12.8% YTD
Market Snapshot
Dow 26820.25 -70.87 (-0.26%)
Nasdaq 7939.63 -91.03 (-1.13%)
SP 500 2961.83 -15.83 (-0.53%)
10-yr Note +2/32 1.681
NYSE Adv 1320 Dec 1553 Vol 1320
Nasdaq Adv 1075 Dec 2028 Vol 2.0 bln
Industry Watch
Strong: Financials, Energy
Weak: Information Technology, Real Estate, Communication Services
S&P 500 closes lower in headline-heavy day
26-Sep-19 16:25 ET
Dow -79.59 at 26891.12, Nasdaq -46.72 at 8030.66, S&P -7.25 at 2977.66
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 lost 0.2% on Thursday in an indecisive session. Economic data continued to depict a decent U.S. economy, but a headline-heavy day helped keep some buyers sidelined. The Dow Jones Industrial Average (-0.3%) also declined modestly, while the Nasdaq Composite (-0.6%) and Russell 2000 (-1.1%) fell behind.
In terms of data, weekly jobless claims, which are a leading indicator, remained at historically low levels (213,000); pending home sales rebounded 1.6% in August (Briefing.com consensus 0.6%); and the third estimate for Q2 GDP remained unchanged, as expected.
Less straightforward, investors had to parse the release of the whistleblower complaint against President Trump and mixed reports on whether the U.S. would extend waivers for companies to supply Huawei. Upbeat news included reports that General Motors (GM 37.61, +0.50, +1.4%) and the UAW were closing in on a deal and Interactive Brokers (IBKR 51.51, -0.22, -0.4%) announcing it will launch a commission-free, unlimited trade platform.
Fittingly, the headlines were mixed, and stocks finished mixed: six S&P 500 sectors finished lower, and five sectors finished higher. The energy sector (-1.3%) stood out despite oil prices ($56.41/bbl, -$0.15, -0.3%) recovering most of their intraday losses, while relative strength was found in the defensive-oriented real estate (+0.9%), consumer staples (+0.5%), and utilities (+0.5%) sectors.
The communication services sector (-0.8%) was another laggard, largely due to weakness in Facebook (FB 180.11, -2.69, -1.5%) after reports indicated the Department of Justice will open an antitrust case into the company. Amazon (AMZN 1739.84, -28.49, -1.6%), which is a component of the consumer discretionary sector (-0.6%), also showed relative weakness.
Peloton (PTON 25.76, -3.24, -11.2%) had a disappointing first day of trading. Shares opened at $27.00 after pricing in at $29.00 and gradually retreated throughout the day. On the other hand, investors (or speculators) jumped back into Beyond Meat (BYND 154.34, +16.02, +11.6%) on news that it teamed up with McDonald's (MCD 212.60, -0.03, unch) for a 12-week test at 28 locations in Canada.
U.S. Treasuries finished higher, pushing yields lower in a curve-flattening trade. The 2-yr yield declined two basis points to 1.65%, and the 10-yr yield declined five basis points to 1.69%. The U.S. Dollar Index held firm, increasing 0.2% to 99.21.
Reviewing Thursday's batch of economic data:
Initial claims for the week ending September 21 increased by 3,000 to 213,000 (Briefing.com consensus 212,000). Continuing claims for the week ending September 14 decreased by 15,000 to 1.650 million.
The key takeaway from the report is that there are no new, key takeaways. Initial claims remain near historic lows, which is indicative of a tight labor market.
The third estimate for Q2 GDP showed no change from the second estimate. GDP increased at an annualized rate of 2.0%, as expected, and the GDP Price Deflator held at 2.4%, as expected. There were some moving parts beneath those headline figures, but the moves basically canceled each other out.
The key takeaway from the report is that it is old news and doesn't upset prior economic beliefs pertaining to the second quarter.
Pending Home Sales increased 1.6% in August (Briefing.com consensus +0.9%). Today's reading follows an unrevised 2.5% decline in July.
The advance report for international trade in goods showed a slight widening in the deficit to -$72.8 billion in August from -$72.5 billion. Advance retail inventories were flat and advance wholesale inventories were up 0.4%.
Looking ahead, investors will receive the following reports on Friday: Personal Income and Spending for August, the PCE Price Index for August, Durable Goods Orders for August, and the final reading for the University of Michigan Index of Consumer Sentiment for September.
Nasdaq Composite +21.0% YTD
S&P 500 +18.8% YTD
Dow Jones Industrial Average +15.3% YTD
Russell 2000 +13.7% YTD
Market Snapshot
Dow 26891.12 -79.59 (-0.30%)
Nasdaq 8030.66 -46.72 (-0.58%)
SP 500 2977.66 -7.25 (-0.24%)
10-yr Note +4/32 1.696
NYSE Adv 1241 Dec 1640 Vol 755.4 mln
Nasdaq Adv 991 Dec 2077 Vol 1.9 bln
Industry Watch
Strong: Real Estate, Consumer Staples, Utilities
Weak: Communication Services, Energy
Moving the Market
-- U.S. stocks close mostly lower in indecisive session; headline-heavy day
-- Economic data continued to depict a decent picture of the U.S. economy
-- Defensive-oriented sectors outperformed, Treasuries ticked higher
-- Whistleblower complaint against President Trump released
WTI crude settles lower but well off session lows
26-Sep-19 15:30 ET
Dow -11.63 at 26959.08, Nasdaq -31.58 at 8045.80, S&P -0.74 at 2984.17
[BRIEFING.COM] The S&P 500 has returned to just below its unchanged mark. There has been no specific news catalyst to account for this afternoon's rebound, but the market has shown a propensity to buy into weakness this year.
One last look at the S&P 500 sectors shows energy (-1.1%) and communication services (-0.7%) down the most, while the real estate (+1.0%), consumer staples (+0.7%), and utilities (+0.7%) sectors lead the comeback effort.
WTI crude settled down $0.15 (-0.3%) to $56.41/bbl, recouping most of its intraday losses.
Cyclical stocks lead Wall Street higher following trade news, data, earnings
25-Sep-19 16:15 ET
Dow +162.94 at 26970.71, Nasdaq +83.76 at 8077.38, S&P +18.27 at 2984.91
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 gained 0.6% on Wednesday, as upbeat trade news and strong economic data and earnings helped investors brush aside impeachment concerns. The Dow Jones Industrial Average also increased 0.6%, while the Nasdaq Composite (+1.1%) and Russell 2000 (+1.1%) outperformed after leading yesterday's decline.
The stock market struggled for direction to begin the day, with the S&P 500 dipping to session lows (-0.5%) just before new home sales for August and the notes taken from President Trump's call with Ukrainian President Zelensky were released at 10:00 a.m. ET.
The annual pace of new home sales for August (713,000) exceeded the Briefing.com consensus of 659,000 and was one of the highest readings since October 2007. Regarding the notes, the Department of Justice said there was no indication of any violation of campaign finance laws.
Safe-haven assets like gold ($1513.10/ozt, -$27.60, -1.8%) and U.S. Treasuries began to sell off, with some curve-steeping activity contributing to the gains in the S&P 500 financials sector (+0.7%). Trade-sensitive areas like the information technology (+1.2%) and consumer discretionary (+1.0%) sectors gained traction after President Trump said a trade deal with China could "come sooner than you think."
Likewise, the Dow Jones Transportation Average (+1.0%) and Philadelphia Semiconductor Index (+1.8%) finished with noticeable gains as the broader market steadily increased throughout the day. The defensive-oriented health care (-0.5%), real estate (-0.1%), and utilities (-0.1%) sectors were the lone S&P 500 sectors to finish in negative territory.
Nike (NKE 90.81, +3.63, +4.2%) and Cintas (CTAS 266.62, +14.48, +5.7%) padded the advance after both beat top and bottom-line estimates, with Cintas issuing upside FY20 EPS guidance. Philip Morris International (PM 75.28, +3.72, +5.2%) outperformed after it ended merger talks with Altria (MO 40.56, -0.17, -0.4%) as scrutiny of Juul/vaping intensified. Altria owns a stake in Juul.
The 2-yr yield increased six basis points to 1.67%, and the 10-yr yield increased ten basis points to 1.73%. The U.S. Dollar Index rose 0.7% to 99.03 amid weakness in the euro and British pound. WTI crude lost 1.3%, or $0.76, to $56.56/bbl, extending its recent pullback as inventories unexpectedly increased, according to the weekly report from the EIA.
Reviewing Wednesday's economic data, which included New Home Sales for August and the weekly MBA Mortgage Applications Index:
New home sales surged 7.1% m/m to a seasonally adjusted annual rate of 713,000 units (Briefing.com consensus 659,000) from an upwardly revised 666,000 (from 635,000) in July. August trailed only June as the highest-paced sales month since October 2007.
The key takeaway from the report is that the strength underscores the impact of low mortgage rates on buyer demand, as the higher-priced West region saw the biggest increase among all regions.
The weekly MBA Mortgage Applications Index fell 10.1% following a 0.1% decline in the prior week.
Looking ahead, investors will receive the following reports on Thursday: the third estimate for Q2 GDP, the weekly Initial and Continuing Claims report, Pending Home Sales for August, and the Advance reports for International Trade in Goods, Retail Inventories, and Wholesale Inventories.
Nasdaq Composite +21.7% YTD
S&P 500 +19.1% YTD
Dow Jones Industrial Average +15.6% YTD
Russell 2000 +15.0% YTD
Market Snapshot
Dow 26970.71 +162.94 (0.61%)
Nasdaq 8077.38 +83.76 (1.05%)
SP 500 2984.91 +18.27 (0.62%)
10-yr Note -7/32 1.728
NYSE Adv 1791 Dec 997 Vol 839.7 mln
Nasdaq Adv 1817 Dec 1268 Vol 2.0
Stocks fall on political uncertainty, trade and growth concerns
24-Sep-19 16:20 ET
Dow -142.22 at 26807.77, Nasdaq -118.84 at 7993.62, S&P -25.18 at 2966.64
https://www.briefing.com/stock-market-update
[BRIEFING.COM] U.S. stocks fell on Tuesday, as investors shunned risk following a decline in consumer confidence, a hard-lined speech from President Trump, and growing calls for the president's impeachment. The S&P 500 (-0.8%) and Dow Jones Industrial Average (-0.5%) declined less than 1%, while the Nasdaq Composite (-1.5%) and Russell 2000 (-1.6%) underperformed amid weakness in the technology and energy stocks.
It was a wild ride to say the least. Stocks opened higher, lifting the S&P 500 up as much as 0.5% and back above the 3000 level, amid news that China was purchasing more U.S. soybeans and Treasury Secretary Mnuchin confirming trade talks will resume in two weeks. None of these developments was particularly surprising.
That advance proved short-lived as stocks began an orderly retreat following a weaker-than-expected consumer confidence report for September and President Trump's speech at the UN General Assembly. In his speech, President Trump delivered tough-sounding remarks on China and Iran, particularly outlining China's dishonesty and warning countries to not subsidize Iran's "blood lust."
Selling accelerated, sending the major averages well into negative territory by midday, after reports surfaced that House Speaker Nancy Pelosi was planning to formally announce an impeachment inquiry on President Trump at 5:30 p.m. ET. Mr. Trump said he will release a full unredacted transcript of his conversation with Ukraine's President Volodymyr Zelensky.
The S&P 500 energy sector (-1.6%) led the sectors in losses as oil prices ($57.32, -1.30, -2.3%) weakened. The communication services sector (-1.3%) and the trade-sensitive Philadelphia Semiconductor Index (-1.7%) showed relative weakness after a strong start. The defensive-oriented utilities (+1.0%) and consumer staples (+0.2%) sectors were the lone sectors to finish in positive territory.
Notable laggards included FAANG components Facebook (FB 181.28, -5.54, -3.0%), Amazon (AMZN 1741.61, -43.69, -2.5%), and Netflix (NFLX 254.59, -11.33, -4.3%). An earnings miss from AutoZone (AZO 1096.63, -50.63, -4.4%) weighed on the stock.
U.S. Treasuries resumed their recent advance amid the political uncertainty and concerns about trade and growth. The 2-yr yield declined six basis points to 1.61%, and the 10-yr yield declined seven basis points to 1.64%. Interestingly, the 10-yr yield is now down 27 basis points from its high on Sept. 13. The U.S. Dollar Index fell 0.3% to 98.32.
Reviewing Tuesday's economic data, which included the Conference Board's Consumer Confidence Index for September, the FHFA Housing Price Index for July, and the S&P Case-Shiller Home Price Index for July:
The Conference Board's Consumer Confidence Index for September dropped to 125.1 (Briefing.com consensus 134.0) from a downwardly revised 134.2 (from 135.1) in August.
The key takeaway from the report is that it reflects burgeoning anxiety among consumers about the impact of tariffs and trade tension. That hasn't translated into a retrenchment in consumer spending yet. If confidence continues to wane, though, the market will start to assume it is going to show up in weaker levels of discretionary spending activity, which would be bad for growth prospects.
The FHFA Housing Price Index for July increased 0.4% following an unrevised 0.2% increase in June.
The S&P Case-Shiller Home Price Index for July increased 2.0% (Briefing.com consensus of 2.3%) following a revised 2.2% increase in June (from 2.1%).
Looking ahead, investors will receive New Home Sales for August and the weekly MBA Mortgage Applications on Wednesday.
Nasdaq Composite +20.5% YTD
S&P 500 +18.3% YTD
Dow Jones Industrial Average +14.9% YTD
Russell 2000 +13.7% YTD
Market Snapshot
Dow 26807.77 -142.22 (-0.53%)
Nasdaq 7993.62 -118.84 (-1.46%)
SP 500 2966.64 -25.18 (-0.84%)
10-yr Note +8/32 1.639
NYSE Adv 872 Dec 1911 Vol 952.2 mln
Nasdaq Adv 674 Dec 2417 Vol 2.3 bln
Stocks close little changed, flash manufacturing PMIs in focus
23-Sep-19 16:20 ET
Dow +14.92 at 26949.99, Nasdaq -5.21 at 8112.46, S&P -0.29 at 2991.82
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 finished flat on Monday in a mixed, and tight-ranged, session. Disappointing flash manufacturing PMI readings out of the eurozone kept many buyers sidelined, but encouraging manufacturing activity in the U.S. helped abate early selling pressure. The Dow Jones Industrial Average (+0.1%), Nasdaq Composite (-0.1%), and Russell 2000 (-0.1%) finished little changed.
The session began on a lower note, largely in response to those weaker-than-expected PMI readings overseas. Most notably, Germany's flash PMI for September fell deeper into contraction territory to its lowest reading (41.4) since 2009. The good news was that the Markit's flash manufacturing PMI reading for the U.S. increased to 51.1 from 50.3, reflecting the continued resiliency of the U.S. economy.
The S&P 500 was down just 0.3% at its session low and crossed into positive territory as soon as European markets closed for trading at 11:30 a.m. ET. The broader market maintained this positive disposition throughout the afternoon but faded into the close.
Most S&P 500 sectors finished within 0.3% of their unchanged marks. The consumer staples sector (+0.4%) outperformed the broader market, while the health care (-0.6%) and communication services (-0.4%) sectors underperformed.
Apple (AAPL 218.72, +0.99, +0.5%) and most stocks within the Philadelphia Semiconductor Index (+1.0%) showed relative strength throughout the day. The semiconductor space bounced back from Friday's decline following reports indicating that officials from the U.S. and China described last week's trade talks as "productive" and "constructive," respectively.
In corporate news, American Express (AXP 118.25, +1.45, +1.2%) announced a 120 million share repurchase program and increased its quarterly dividend 10%. Lululemon athletica (LULU 195.18, +5.88, +3.1) rose 3% after the stock was initiated with an Overweight rating at Piper Jaffray.
The U.S. Treasury market reflected some lingering growth concerns as increased demand pushed yields lower. The 2-yr yield declined three basis points to 1.67%, and the 10-yr yield declined six basis points to 1.71%. The U.S. Dollar Index increased 0.1% to 98.62. WTI crude rose 1.0%, or $0.60, to $58.64/bbl.
Investors did not receive any notable economic data on Monday. Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for September, the FHFA Housing Price Index for July, and the S&P Case-Shiller Home Price Index for July on Tuesday.
Nasdaq Composite +12.3% YTD
S&P 500 +19.3% YTD
Russell 2000 +15.6% YTD
Dow Jones Industrial Average +15.5% YTD
Sideways Week Ends on Lower Note
20-Sep-19 16:15 ET
Dow -159.72 at 26935.07, Nasdaq -65.20 at 8117.67, S&P -14.68 at 2992.11
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market ended the week on a lower note after a midday swoon pressured the S&P 500 (-0.5%) into negative territory. The benchmark index lost 0.5% for the week while the Nasdaq (-0.8%) underperformed, surrendering 0.7% since last Friday.
The trading day started with slight gains amid news that the Trump administration will temporarily exempt some Chinese products from tariffs. However, a midday report from Reuters noted that the Chinese trade delegation, which visited Washington for talks, cancelled its plan for a visit to Montana. That report knocked the major averages to session lows, fueling renewed worries about how much progress has really been made in the ongoing negotiations.
The major averages briefly recovered from their lows in the afternoon but returned toward those lows before the close as cyclical sectors struggled. The top-weighted technology sector (-1.1%) was among the worst performers, widening its loss in the afternoon. Chipmakers got off to a weak start and remained under pressure into the close. The PHLX Semiconductor Index lost 1.8%, surrendering 2.7% for the week. Xilinx (XLNX 96.55, -7.07, -6.8%) lagged from the start after the company's CFO resigned. Texas Instruments (TXN 126.67, -2.16, -1.7%) lost nearly 2.0% despite increasing its quarterly dividend.
Elsewhere in technology, Fitbit (FIT 4.10, +0.43, +11.7%) jumped to its July low after Reuters reported that the company may put itself up for sale while Apple (AAPL 217.73, -3.23, -1.5%) surrendered this week's modest gain as the company's refreshed product line hit store shelves.
Like technology, the consumer discretionary sector (-1.2%) fell to lows after the midday report cast doubt on the amount of progress in trade negotiations. General Motors (GM 37.37, -0.41, -1.1%), however, underperformed throughout the day after Dayton Daily News reported that a GM plant in Moraine, Ohio will be idled due to the ongoing UAW strike.
On the upside, countercyclical sectors like health care (+0.6%) and utilities (+0.4%) spent the day in positive territory. The health care sector extended this week's gain to 1.0%, drawing some encouragement from a report that the Senate will not endorse a plan put forth by House Speaker Pelosi to lower drug prices.
Treasuries spent the bulk of the day near their flat lines before rallying to highs in the afternoon. The 10-yr yield slipped two basis points to 1.76%.
Today's trading volume was well above average due to quadruple witching. As a result, more than 2.5 billion shares changed hands at the NYSE floor.
Participants did not receive any economic data on Friday, and Monday's calendar is also free of notable releases.
Nasdaq +22.3% YTD
S&P 500 +19.4% YTD
Russell 2000 +15.6% YTD
Dow Jones Industrial Average +15.5% YTD
Wall Street closes little changed, Microsoft gains
19-Sep-19 16:25 ET
Dow -52.29 at 27094.77, Nasdaq +5.49 at 8182.92, S&P +0.06 at 3006.79
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 closed unchanged on Thursday in a light volume session. Microsoft (MFST 141.07, +2.55, +1.8%) provided some support for the broader market, but relative weakness in the cyclical sectors dragged on a market that struggled to gain traction throughout the day.
The Dow Jones Industrial Average declined 0.2%, and the Russell 2000 declined 0.4%. The Nasdaq Composite increased 0.1%.
Microsoft announced a $40 billion share repurchase program and raised its quarterly dividend 11%. Shares hit a new all-time high, bringing the company's valuation closer to $1.1 trillion. The S&P 500 utilities sector (+0.4%) almost set a new-all time high while the health care sector (+0.5%) had a rare outperformance.
The rest of the market, though, did not perform as well, even as economic data came in mostly better than expected. The initial weekly claims, Philadelphia Fed Index, and Existing Home Sales upheld the market's improved outlook for U.S. economic growth.
The industrials (-0.5%), financials (-0.4%), and energy (-0.4%) sectors -- which were among this month's leaders -- were today's laggards. Today's session, then, might have had some technical aspects to it while negative-sounding reports lingered in the background.
For instance, the U.S. and China resumed in-person trade talks today, and the initial tone didn't sound too constructive. China's Global Times editor tweeted China is not as anxious to reach a deal as the U.S. expects it to be, while a personal adviser to President Trump, Michael Pillsbury, said the president is ready to escalate the trade war if a deal is not reached soon. Talks will resume tomorrow.
The New York Fed may have also caused some discomfort after it injected another $75 billion into money markets to improve liquidity in the overnight repo market. This was its third repurchase operation this week and another one is reportedly scheduled for tomorrow. Fed Chair Powell said the volatility in the overnight repo market has no implications for the economy or monetary policy.
U.S. Steel (X 11.06, -1.39, -11.2%) disappointed investors after guiding its Q3 EPS well below consensus, making it the third steel company to lower guidance in three days. Darden Restaurants (DRI 120.69, -6.44, -5.1%) lost 5% despite beating earnings estimates.
U.S. Treasuries finished slightly higher, pushing yields lower across the curve. The 2-yr yield and 10-yr yield both declined one basis point to 1.74% and 1.77%, respectively. The U.S. Dollar Index declined 0.2% to 98.35. WTI crude ticked up 0.1%, or $0.05, to $58.12/bbl.
Reviewing Thursday's batch of economic data:
Existing home sales increased 1.3% month-over-month in August to a seasonally-adjusted annual rate of 5.49 million (Briefing.com consensus 5.36 million) from 5.42 million in July. Total sales were 2.6% higher than the same period a year ago and at their strongest pace since March 2018.
The key takeaway from the report is that the sales strength was fueled by lower mortgage rates. The August sales strength cut the inventory of homes for sale. That will keep upward pressure on home prices, which in turn is likely going to necessitate the need for mortgage rates to stay down to drive ongoing sales growth.
Initial claims for the week ending Sept. 14 increased by 2,000 to 208,000 (Briefing.com consensus 213,000) while continuing claims for the week ending Sept. 7 decreased by 13,000 to 1.661 million.
The key takeaway from this report is that it covers the period in which the survey for the September employment report was conducted, so the low level of initial claims will drive expectations for another solid increase in nonfarm payrolls.
The Conference Board's Leading Economic Index was unchanged in August (Briefing.com consensus +0.1%) following a downwardly revised 0.4% increase (from 0.5%) in July.
The key takeaway from the report is that it corroborated known negatives, which included weaker manufacturing activity, declining stock prices, and a flattening/inverted yield curve.
The Q2 Current Account Deficit narrowed by 5.9% to $128.2 billion (Briefing.com consensus -$135.0 billion).
The Philadelphia Fed Index for September checked in at 12.0 (Briefing.com consensus 8.0), down from 16.8 previously. Importantly, though, the index shows manufacturing activity in the Philly Fed region is still in an expansion mode.
Investors will not receive any notable economic data on Friday.
Nasdaq Composite +23.3% YTD
S&P 500 +19.9% YTD
Dow Jones Industrial Average +16.2% YTD
Russell 2000 +15.8% YTD
S&P 500 recoups losses after Fed rate cut; FedEx issues earnings warning
18-Sep-19 16:20 ET
Dow +36.28 at 27147.06, Nasdaq -8.62 at 8177.43, S&P +1.03 at 3006.73
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market closed mixed on Wednesday, as investors digested the second rate cut from the Fed this year and an earnings warning from FedEx (FDX 150.91, -22.39, -12.9%). The S&P 500 (+0.03%), Dow Jones Industrial Average (+0.1%), and Nasdaq Composite (-0.1%) finished little changed. The Russell 2000 declined 0.6%.
The FOMC voted 7-3 to cut the target range for the fed funds rate by 25 basis points to 1.75-2.00%, as expected. Price action leading up to the decision was muted and volatility quickly ensued after the policy directive. Buying conviction, however, was largely absent before and immediately after the decision as the market extended losses heading into Fed Chair Powell's press conference.
Key takeaways from the Fed's policy decision included:
(1) Voting members remained divided: St. Louis Fed President Bullard preferred a 50-basis points cut, while Boston Fed President Rosengren and Kansas City Fed President George preferred no change in the fed funds rate; (2) the median Fed member is suggesting there will be no more rate cuts in 2019 and 2020; and (3) the interest paid on excess reserve balances was lowered to 1.80% from 2.10% -- which could provide some stability in the repo market after the New York Fed injected more liquidity today.
Selling pressure soon abated and stocks climbed to session highs, with the S&P 500 financials sector (+0.4%) providing influential leadership, as the Fed Chair Powell wrapped up his press conference. The utilities sector (+0.5%) outperformed, while the energy sector (-0.4%) underperformed as oil prices ($58.07/bbl, -1.30, -2.2%) continued to pull back.
Mr. Powell said the Fed does not see a recession, is not interested in negative rates, and the repo issue has no implications for the economy or monetary policy. FedEx (FDX), meanwhile, provided a pessimistic view on the global economy. The company cut its FY20 EPS guidance due to a weakening global environment, driven by trade tensions and policy uncertainty.
On a related note, Adobe Systems (ADBE 279.72, -4.97, -1.8%) guided Q4 EPS and revenue below consensus, although it did beat earnings estimates.
The U.S. Treasury yield curve saw some flattening activity following the Fed decision. The 2-yr yield increased two basis points to 1.75%, and the 10-yr yield declined three basis points to 1.79%. The U.S. Dollar Index also strengthened after the decision, increasing 0.3% to 98.55.
Reviewing Wednesday's economic data, which included Housing Starts and Building Permits for August and the weekly MBA Mortgage Applications Index:
Total housing starts surged 12.3% m/m in August to a seasonally adjusted annual rate of 1.364 million units (Briefing.com consensus 1.255 million) while total permits jumped 7.7% to 1.419 million (Briefing.com consensus 1.300 million).
The key takeaway from the report is that the growth wasn't entirely a multi-unit story. Single-family starts and permits both increased nicely month-over-month. The permits increase is especially notable, because that is a leading indicator that should support the market's improved attitude toward the U.S. growth outlook.
The weekly MBA Mortgage Applications Index declined 0.1% following a 2.0% increase in the prior week.
Looking ahead, investors will receive the following data on Thursday: Existing Home Sales for August, weekly Initial and Continuing Claims, the Current Account Balance for Q2, the Philadelphia Fed Index for September, and the Conference Board's Leading Economic Index for August.
Nasdaq Composite +23.2% YTD
S&P 500 +19.9% YTD
Dow Jones Industrial Average +16.4% YTD
Russell 2000 +16.3% YTD
S&P 500 closes higher in front of Fed decision tomorrow
17-Sep-19 16:20 ET
Dow +33.98 at 27110.78, Nasdaq +32.47 at 8186.05, S&P +7.74 at 3005.70
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The large-cap indices closed higher on Tuesday as investors looked ahead to the Fed's policy decision tomorrow. The S&P 500 (+0.3%), Dow Jones Industrial Average (+0.1%), and Nasdaq Composite (+0.4%) posted small gains, while the Russell 2000 (-0.4%) underperformed amid relative weakness in the energy space.
Overall price action was muted for most of the day, but the moves within the market were much more noticeable. For instance, after spiking nearly 15% yesterday, WTI crude ($59.37/bbl, -3.15) pulled back 5.0% after Saudi Arabia said it intends on restoring full oil production by the end of September. In addition, the repo rate spiked as high as 10% today on no specific catalyst.
Regarding the repo rate volatility, DoubleLine Capital founder Jeffrey Gundlach said this makes it more likely the Fed will start with asset purchases again (i.e. "QE Lite") "pretty soon." Presumably, this view, which was reported by Reuters late in the session, contributed to increased buying interest into the close.
Nine of the 11 S&P 500 sectors finished higher, led by the real estate (+1.4%), utilities (+0.9%), and materials (+0.7%) sectors. The energy (-1.5%) and industrials (-0.04%) sectors were the lone sectors to finish in negative territory.
Other laggards included Nordstrom (JWN 32.10, -3.47, -9.8%), Corning (GLW 28.23, -1.82, -6.1%), and Kraft Heinz (KHC 28.36, -1.26, -4.2%).
Nordstrom fell alongside the retail stocks as a part of a broader effort to take monthly profits from the group. Corning cut its third-quarter sales outlook for its Display Technologies and Optical Communications segments. Kraft Heinz underperformed after 3G Capital sold 9.3% of its stake in the company.
Back to the Fed, the market expects the central bank to cut the fed funds rate by 25 basis points, which would strengthen the market's improving outlook on the U.S. economy. On a related note, industrial production rebounded 0.6% m/m in August (Briefing.com consensus +0.1%) after an unexpected decline in July.
Separately, the New York Fed announced a repurchase operation of up to $75 billion worth of assets in order to regain control of its fed funds rate. The midpoint of transactions in the overnight money markets hit the upper limit of the 2.00-2.25% target range.
The 2-yr yield and the 10-yr yield declined three basis points each to 1.73% and 1.81%, respectively. The U.S. Dollar Index lost 0.4% to 98.22.
Reviewing Tuesday's economic data, which included Industrial Production and Capacity Utilization for August and the NAHB Housing Market Index for September.
Industrial production increased 0.6% m/m in August (Briefing.com consensus +0.1%), which was much stronger than expected and followed an upwardly revised 0.1% decline (from -0.2%) in July. Total capacity utilization ran at 77.9% (Briefing.com consensus 77.5%), up from 77.5% in the prior month.
The key takeaway from the report is that all of the major market groups recorded gains in August, which is a reassuring development in terms of the economic growth outlook.
The NAHB Housing Market Index for September increased to 68 (Briefing.com consensus 66) from 67 in August (revised from 66).
Looking ahead, investors will receive the Fed's policy decision, which will include economic and interest rate path projections, Housing Starts and Building Permits for August, and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +23.4% YTD
S&P 500 +19.9% YTD
Russell 2000 +17.0% YTD
Dow Jones Industrial Average +16.2% YTD
Wall Street closes slightly lower, oil prices surge after attack in Saudi Arabia
16-Sep-19 16:20 ET
Dow -142.70 at 27076.80, Nasdaq -23.17 at 8153.58, S&P -9.43 at 2997.96
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.3% on Monday after an attack on Saudi Arabia's oil refineries sent oil prices up nearly 15% and escalated geopolitical tensions. The Dow Jones Industrial Average lost 0.5%, and the Nasdaq Composite lost 0.3%. The Russell 2000 increased 0.4%, helped by big gains in the oil-sensitive stocks.
The attack knocked about 5.7 million barrels per day out of production, leading to the biggest one-day gain in WTI crude ($62.88/bbl, +$8.00, +14.6%) since 2008. Saudi Arabia expected to restore about a third of lost production on Monday, while normal production might take "weeks not days," according to sources from Reuters.
Some angst revolved around a possible retaliatory attack from the U.S. and Saudi Arabia on Iran. It wasn't confirmed if Iran was the aggressor, but the U.S. was quick to implicate Tehran while a preliminary investigation found the weapons used in the strike originated from Iran, according to al-Riyadh.
Unsurprisingly, today's winning groups included the S&P 500 energy sector (+3.3%) and iShares Dow Jones US Aerospace & Defense ETF (ITA 229.87, +2.35, +1.0%). The S&P 500 real estate (+1.0%) and utilities (+0.1%) sectors also finished higher, helping ease the losses from the materials (-1.6%), consumer discretionary (-1.3%), and consumer staples (-1.0%) sectors.
American Airlines (AAL 27.77, -2.18, -7.3%) led the airline stocks lower amid concerns about a rise in fuel costs pressuring margins. Similarly, Amazon (AMZN 1807.84, -31.50, -1.7%) and many stocks within the SPDR S&P Retail ETF (XRT 43.07, -0.50, -1.2%) underperformed amid speculation that the higher oil prices would translate into higher gas prices that would hurt discretionary spending.
The attack might have been a good excuse to sell the market, which entered today on a three-week rally. The broader market held up relatively well, though, with advancing issues outpacing declining issues at both the Nasdaq and NYSE. This might have been due to an understanding that (1) the U.S. is less reliant on imported oil than it used to be and (2) the U.S. economy has been resilient in the face of slowing global growth.
Defensive positioning was taken, though, with traditional safe-haven assets like U.S. Treasuries and gold finishing higher. The 2-yr yield declined three basis points to 1.76%, and the 10-yr yield declined six basis points to 1.84%. The U.S. Dollar Index advanced 0.4% to 98.61. Gold futures increased 0.8%, or $12.00, to $1511.50/ozt.
Separately, General Motors (GM 37.21, -1.65, -4.3%) was a story stock after close to 50,000 UAW workers at GM went on strike.
Economic data was sparse on Monday. The Empire State Manufacturing Survey for September declined to 2.0 (Briefing.com consensus 5.5) from the prior month's reading of 4.8.
Looking ahead, investors will receive Industrial Production and Capacity Utilization for August, the NAHB Housing Market Index for September, and Net Long-Term TIC Flows for July on Tuesday.
Nasdaq Composite +22.9% YTD
S&P 500 +19.6% YTD
Russell 2000 +17.5% YTD
Dow Jones Industrial Average +16.1% YTD
Stock market closes mixed, still ends week higher
13-Sep-19 16:20 ET
Dow +37.07 at 27219.50, Nasdaq -17.75 at 8176.75, S&P -2.18 at 3007.39
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.1% on Friday, as losses in crowded areas like technology and real estate offset gains in value-oriented spaces like financials and energy. The Nasdaq Composite lost 0.2%. The Dow Jones Industrial Average (+0.1%) rose for the eighth straight day, and the Russell 2000 (+0.2%) finished the week up 4.9%.
The market entered today on a tear, closing in on record highs amid improved outlooks for trade and growth. Positive-sounding trade news today included China exempting U.S. soybeans and pork from additional tariffs and President Trump acknowledging that he would at least consider an interim trade deal. Mr. Trump, however, said he would prefer a whole deal.
Trade-sensitive groups like the S&P 500 materials (+1.1%) and industrials (+0.5%) sectors showed relative strength while the energy (+0.8%) and financials (+0.8%) sectors capped off an impressive week on a high note. Financial stocks benefited from another rise in yields, and curve-steepening, as Treasuries sold off following an uptick in retail sales and a rebound in consumer sentiment.
Specifically, retail sales increased 0.4% in August (Briefing.com consensus 0.3%). The preliminary reading for the University of Michigan's Index of Consumer Sentiment increased to 92.0 in September (Briefing.com consensus 90.2) from 89.8 in August.
The 2-yr yield increased seven basis points to 1.79%, and the 10-yr yield increased 11 basis points to 1.90%. The U.S. Dollar Index declined 0.1% to 98.20. WTI crude lost 0.5%, or $0.25, to $54.88/bbl.
The news was good, but there wasn't a lot of conviction today after a strong start to September. Weakness in the crowded S&P 500 information technology (-0.7%) and real estate (-1.3%) sectors capped broader gains. Apple (AAPL 218.75, -4.34, -1.9%) and Broadcom (AVGO 290.32, -10.26, -3.4%) were notable laggards.
Apple's price target was cut to $165 from $187 at Goldman Sachs on concerns that its streaming service will adversely affect its income statement. Apple responded, saying the introduction of Apple TV+ will not have a material impact on its financial results, which helped temper selling pressure in the afternoon.
Broadcom said it believes chip demand will remain near bottom levels due to uncertainty in the macro environment. The sobering view overshadowed its earnings beat and helped press pause on the rally in the Philadelphia Semiconductor Index (-0.3%), which is up 39.0% this year.
Reviewing Friday's economic data, which included Retail Sales for August, the University of Michigan's Index of Consumer Sentiment for September, Import and Export Prices, and Business Inventories for July:
Retail sales for August were up 0.4% m/m in August (Briefing.com consensus +0.2%) following an upwardly revised 0.8% increase (from +0.7%) in July. Excluding autos, retail sales were flat (Briefing.com consensus +0.2%) following an unrevised 1.0% increase in July.
The key takeaway from the report is that the softness in sales, excluding autos, isn't as bothersome as it appears given the strength seen in July and given that core retail sales, which exclude autos, gasoline station, building material, and food services and drinking places sales, were up 0.3%.
The preliminary reading for the University of Michigan's Index of Consumer Sentiment was 92.0 (Briefing.com consensus 90.2), up from the final reading of 89.8 for August. The index is down 8.1% from where it stood a year ago (100.1).
The key takeaway from the report is that consumers are starting to worry more about the potential impact of tariffs on the economy, which is a stance that could lead to reduced levels of consumption.
Import prices were down 0.5% m/m in August and were unchanged excluding fuel. Export prices were down 0.6% m/m in August and were down 0.4% excluding agricultural exports.
The key takeaway from this report is that it reveals a lack of inflation pressure on import prices despite the tariff actions, which is running somewhat counter to C-suite commentary. This report is apt to be dismissed, though, since the more influential CPI report, which showed budding inflation pressure for core consumer prices, was released yesterday.
Business inventories increased 0.4% in July (Briefing.com consensus +0.3%) after being unchanged in June.
The key takeaway from the report is that the gap between inventory growth on a yr/yr basis (+4.8%) and sales growth (+1.3%) remains, which should help keep prices in check.
Looking ahead, investors will receive the Empire State Manufacturing Survey for September on Monday.
Nasdaq Composite +23.2% YTD
S&P 500 +20.0% YTD
Dow Jones Industrial Average +16.7% YTD
Russell 2000 +17.0% YTD
Stocks extend rally on trade developments, ECB stimulus measures
12-Sep-19 16:15 ET
Dow +45.41 at 27182.43, Nasdaq +24.79 at 8194.50, S&P +8.64 at 3009.57
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 advanced 0.3% on Thursday, as positive-sounding trade developments and stimulus measures from the ECB helped extend the market's September rally. The Dow Jones Industrial Average increased 0.2%, and the Nasdaq Composite increased 0.3%. The Russell 2000 (-0.04%), however, finished just below its flat line.
In terms of trade news, President Trump said he will delay the tariff rate increase on $250 billion of Chinese imports to Oct. 15 from Oct. 1. Those goods remain taxed at 25%, but the new 30% rate will be delayed at China's request, as Oct. 1 marks the 70th anniversary of the People's Republic of China. The president also remarked that China is expected to buy large amounts of U.S. agricultural goods.
Mr. Trump's "gesture of good will" was followed up by a report from Bloomberg News that the president's advisers were considering an interim trade deal with China. This report was later refuted by sources from CNBC, which helped spoil an early rally effort in the stock market. An appreciation that the two sides appear willing to de-escalate tensions ahead of trade talks helped the market rebound.
This sentiment was made evident in the relative strength displayed in the trade-sensitive S&P 500 materials (+0.7%), information technology (+0.5%), and consumer discretionary (+0.5%) sectors. Accommodative measures from the ECB, which cut its deposit rate to -0.5% from -0.4% and announced it will resume quantitative easing on Nov. 1, were other supportive factors for equities.
The market did lose some steam into the close, though, with the S&P 500 energy (-0.6%) and health care (-0.1%) sectors posting losses. Many energy stocks were pressured by another decline in the price of oil ($55.13, -0.61, -1.1%) amid lingering concerns about oil demand. Downward eurozone growth revisions for 2019 and 2020 from the ECB also weighed on the commodity.
The U.S. Treasury market experienced some noticeable price swings on Thursday. Yields fell in unison with the 10-yr German bund yield following the ECB policy decision. Some factors that helped lift yields back up included a turnaround in the German bund yield, weekly jobless claims that remained at historically low levels, and a stronger-than-expected 0.3% increase in core CPI for August.
The 2-yr yield increased five basis points to 1.72%, and the 10-yr yield increased six basis points to 1.79%. The U.S. Dollar Index lost 0.3% to 98.37, pressured by a rebound in the euro.
Separately, some story stocks from Thursday included Oracle (ORCL 53.89, -2.40, -4.3%) and SmileDirectClub (SDC 16.67, -6.33, -27.5%). Oracle guided Q2 EPS slightly below expectations and announced its co-CEO Mark Hurd will take a leave of absence for health reasons. SmileDirectClub opened at $20.55 after pricing its IPO at $23 in a disappointing market debut.
Reviewing Thursday's economic data, which included the Consumer Price Index for August, the weekly Initial and Continuing Claims report, and the Treasury Budget for August:
Total CPI for August increased 0.1% m/m, as expected, while core CPI, which excludes food and energy, rose a stronger-than-expected 0.3% (Briefing.com consensus +0.2%). The monthly changes left total CPI up 1.7% yr/yr, versus 1.8% in July, and core CPI up 2.4% (largest 12-month increase since July 2018), versus 2.2% in July.
The key takeaway from the report is that it shows budding inflation pressure in core CPI that is apt to keep policy hawks at the Fed squawking about not needing to be overly aggressive with rate cuts at this time.
Initial claims for the week ending Sept. 7 decreased by 15,000 to 204,000 (Briefing.com consensus 218,000). Continuing claims for the week ending Aug. 31 decreased by 4,000 to 1.670 million.
The key takeaway from the report is the very low level of initial claims, which is indicative of a tight labor market.
The Treasury Budget for August showed a deficit of $200.3 bln versus a deficit of $214.1 bln for the same period one year ago. The Treasury Budget is not seasonally adjusted, so the August deficit cannot be compared to the $119.7 bln deficit for July.
The fiscal year-to-date deficit is $1.07 tln versus a deficit of $898.1 bln for the same period a year ago. The budget deficit over the last 12 months is $948 bln, versus $961.8 bln for the 12 months ending in July.
Looking ahead, investors will receive the following reports on Friday: Retail Sales for August, the preliminary September reading for the University of Michigan Index of Consumer Sentiment, Import and Export Prices for August, and Business Inventories for July.
Nasdaq Composite +23.5% YTD
S&P 500 +20.1% YTD
Dow Jones Industrial Average +16.5% YTD
Russell 2000 +16.8% YTD
Wall Street climbs amid strength in growth and value stocks
11-Sep-19 16:20 ET
Dow +227.61 at 27137.02, Nasdaq +85.52 at 8169.71, S&P +21.54 at 3000.93
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 advanced 0.7% on this 18th anniversary of 9/11, boosted by strength in growth and value stocks alike. Apple (AAPL 223.59, +6.89, +3.2%) carried the benchmark index back to the 3000 level and helped boost the Dow Jones Industrial Average (+0.9%) and Nasdaq Composite (+1.1%) to solid gains.
The small-cap Russell 2000 (+2.1%) outperformed again to extend its weekly advance to 4.7%. The S&P MidCap 400 increased 1.4%.
There were few developments on Wednesday to interrupt the market's placated views on trade and growth. Regarding trade, China released a list of U.S. products it will exempt from a higher tariff rate, although key farm products were not included. Central banks also appear on the market's side, with China reportedly set to start an easing cycle later this month and the ECB expected to cut rates on Thursday.
There were no big winners from a sector standpoint, but today's advance was broad-based, evidenced by the 1.0% gains in the information technology (+1.0%), health care (+1.0%), utilities (+1.0%), industrials (+1.0%), materials (+1.0%), and communication services (+1.0%) sectors. The real estate sector (-0.3%) was the lone holdout on Wednesday.
Apple provided the leadership in the tech sector, and broader market, as investors and (some) analysts remained content with its product event yesterday. Needham raised its AAPL price target to $250 from $225, while Maxim Group lowered its AAPL price target to $204 from $211. Strength in Apple tricked over to the Philadelphia Semiconductor Index (+1.5%).
The underperformance in the energy sector (unch) was an interesting development. The sector was up as much as 1.2% in the early going, as it continued to benefit from a value-oriented mindset, but it quickly fell from its highs amid a drop in the price of oil ($55.74, -1.63, -2.8%). Oil took a hit on reports that President Trump was in talks to ease sanctions on Iran. OPEC also downgraded its forecasts for oil demand in 2019 and 2020.
The continued rise in Treasury yields reflected some of the improved sentiment on Wall Street, as investors showed less interest for the safe-haven asset. The 2-yr yield increased one basis point to 1.67%, and the 10-yr yield increased three basis points to 1.73%. The U.S. Dollar Index advanced 0.3% to 98.62.
Separately, ZScaler (ZS 49.67, -11.93, -19.4%) was a notable laggard, with shares plunging 19% after the software security company guided earnings below consensus.
Reviewing Wednesday's economic data, which included the Producer Price Index for August, Wholesale Inventories for July, and the weekly MBA Mortgage Applications Index:
The Producer Price Index for final demand was up 0.1% m/m in August, as expected, but the index for final demand excluding food and energy, was up 0.3% (Briefing.com consensus +0.1%), which was hotter than expected. The month-over-month changes left the index for final demand up 1.8% yr/yr, versus 1.7% in July, and the index for final demand excluding food and energy up 2.3%, versus 2.1% in July.
The key takeaway from the report is that it could stoke concerns about margin pressures for producers that curtail earnings growth and/or bleed through to higher prices for consumers.
Wholesale Inventories increased 0.2% in July (Briefing.com consensus 0.2%). The June reading was unrevised at 0.0%.
The weekly MBA Mortgage Applications Index increased 2.0% following a 3.1% decline in the prior week.
Looking ahead, investors will receive the Consumer Price Index for August, the weekly Initial and Continuing Claims report, and the Treasury Budget for August on Thursday.
Nasdaq Composite +23.1% YTD
S&P 500 +19.7% YTD
Dow Jones Industrial Average +16.3% YTD
Russell 2000 +16.8% YTD
S&P 500 ekes higher as value stocks outperform
10-Sep-19 16:20 ET
Dow +73.92 at 26909.41, Nasdaq -3.28 at 8084.19, S&P +0.96 at 2979.39
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.03%) eked higher on Tuesday, finishing at its best levels of the day after trading with modest losses the whole day. Tuesday's action saw investors continuing to rotate out of this year's best-performing stocks for those perceived as having more potential value.
The Dow Jones Industrial Average (+0.3%) was lifted by its highest-priced component, Boeing (BA 369.49, +10.71, +3.0%), while the Russell 2000 (+1.2%) outperformed amid big gains in energy stocks. The Nasdaq Composite (-0.04%) finished just below its flat line amid relative weakness in shares of technology companies.
Value-oriented stocks, in this case those that have underperformed amid growth concerns, have come to life this week. Improved sentiment pertaining to growth and trade has contributed to this value trade, which was made most pronounced in the outperformance in the S&P 500 energy sector (+1.3%), SPDR S&P Retail ETF (XRT 43.61, +1.18, +3.0%), and Dow Jones Transportation Average (+1.5%) on Tuesday.
The gains in the transportation space further padded the S&P 500 industrials sector (+1.0%), while Dow Inc. (DOW 46.32, +1.87, +4.2%) boosted the materials sector (+1.0%).
The same underlying sentiment boosting these stocks contributed to the selling in the Treasury market and in the S&P 500 information technology (-0.5%), consumer staples (-0.6%), and real estate (-1.4%) sectors. The tech and real estate sectors have been this year's best-performing sectors, largely due to their respective high-growth and defensive-oriented dispositions.
Treasury yields finished noticeably higher, as the crowded Treasury market continued to see less demand. The 2-yr yield increased nine basis points to 1.66%, and the 10-yr yield increased eight basis points to 1.70%. The U.S. Dollar Index increased 0.1% to 98.38.
In corporate news, Apple (AAPL 216.70, +2.53, +1.2%) held its annual product event where it unveiled its latest iPhone. The $4.99/month pricing for its TV+ streaming service came as a surprise to some and contributed to weakness in Netflix (NFLX 287.99, -6.35, -2.2%).
Wendy's (WEN 19.71, -2.24, -10.2%) was a part of the broader effort to sell momentum stocks, but shares were further pressured by the company cutting its EPS guidance. The lower guidance accounted for its plan to launch a breakfast menu in all locations in 2020.
Reviewing Tuesday's economic data, which included the NFIB Small Business Optimism Index for August and the JOLTS - Job Opening report for July.
The NFIB Small Business Optimism Index for August declined to 103.1 from 104.7 in July. The August reading was its lowest in five months, but the index remains running at elevated levels.
The July Job Openings and Labor Turnover Survey showed that job openings declined to 7.217 million from a revised 7.248 million in June (from 7.348 million).
Looking ahead, investors will receive the Producer Price Index for August, Wholesale Inventories for July, and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +21.8% YTD
S&P 500 +18.9% YTD
Dow Jones Industrial Average +15.4% YTD
Russell 2000 +14.4% YTD
S&P 500 closed unchanged; energy, financials outperformed
09-Sep-19 16:25 ET
Dow +38.05 at 26835.49, Nasdaq -15.64 at 8087.47, S&P -0.28 at 2978.43
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The large-cap U.S. indices finished little changed on Monday, with gains in energy and financial stocks helping offset the losses in the technology and health care stocks. The S&P 500 (-0.01%), Nasdaq Composite (-0.2%), and Dow Jones Industrial Average (+0.1%) finished near their flat lines.
The small-cap Russell 2000 (+1.3%), which is home to many energy and financial stocks, outperformed the broader market.
The market entered today on the heels of a two-week rally, with some investors beginning to feel less concerned about growth prospects and trade relations with China. For instance, data has shown the U.S. consumer to be resilient in the face of trade tensions, which could see a reprieve with trade talks coming up next month.
This positive sentiment was manifested in the higher oil prices ($57.87/bbl, +$1.42, +2.5%) and the selling in the Treasury market on Monday. In turn, the S&P 500 financials (+1.5%) and energy (+1.9%) sectors were today's leaders, which were further boosted by their perceived value-oriented nature, as opposed to the crowded positioning in the information technology sector (-0.7%).
The 2-yr yield increased five basis points to 1.57%, and the 10-yr yield increased seven basis points to 1.62%. The U.S. Dollar Index declined 0.1% to 98.32.
The Dow Jones Transportation Average (+2.0%), which is a trade-sensitive group and is often viewed as a proxy for economic growth, also outperformed. The defensive-oriented real estate (-0.9%), health care (-0.9%), and utilities (-0.6%) sectors joined the tech sector as today's laggards.
Separately, Saudi Arabia replaced its oil minister with a member of the royal family, which traders believed could portend favorable policy for oil prices. A less appreciated factor contributing to the outperformance in the energy sector was the relatively higher dividend yields that many energy companies provide yield-hunting investors.
In corporate news, activist shareholder Elliot Management disclosed a $3.2 billion stake in AT&T (T 336.79, +0.54, +1.5%), sharing a plan with the company it thinks could boost the stock to $60 by the end of 2021. Much of the initial enthusiasm waned throughout the session, leaving shares of AT&T near their session lows.
Monday's economic data was limited to the Consumer Credit Report for July:
Consumer credit increased by $23.3 bln in July (Briefing.com consensus $18.2 bln) after increasing a downwardly revised $13.8 bln (from $14.6 bln) in June. That is the largest expansion since July 2018.
The key takeaway from the report is the recognition that revolving credit expanded at its fastest pace since November 2017. That could mean one of two things: (1) consumers are using revolving credit more because they lack the cash to cover spending on basic needs or (2) consumers are using revolving credit more because they feel confident about repayment capabilities due to feelings of job security. Only future economic data will tell the real tale, but in the context of a U.S. growth outlook, the expansion in consumer credit in July is apt to be taken at face value as an an encouraging sign.
Looking ahead, investors will receive the NFIB Small Business Optimism Index for August and the JOLTS - Job Opening report for July on Tuesday.
Nasdaq Composite +21.9% YTD
S&P 500 +18.8% YTD
Dow Jones Industrial Average +15.0% YTD
Russell 2000 +13.0% YTD
Stock market closes mixed, muted response to August employment report
06-Sep-19 16:15 ET
Dow +69.31 at 26797.44, Nasdaq -13.75 at 8103.11, S&P +2.71 at 2978.71
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market finished mixed on Friday, as it cooled off from a two-day rally amid a lackluster response to the August employment report. The S&P 500 (+0.1%) and Dow Jones Industrial Average (+0.3%) closed just above their unchanged marks, while the Nasdaq Composite (-0.2%) and Russell 2000 (-0.4%) closed slightly lower.
From a headline perspective, the employment report appeared to disappoint as jobs growth came in below expectations. Nonfarm payrolls increased by 130,000 (Briefing.com consensus 171,000), and nonfarm private payrolls increased by 96,000 (Briefing.com consensus 145,000).
The positive spin, however, was that the labor participation rate, employment-population ratio, and total number of employed workers all increased from July. Aggregate earnings were also up, while the unemployment rate held firm at 3.7% as expected. More people working and earning money is a good indication that discretionary spending could continue to support the economic expansion, one which Fed Chair Powell repeated the Fed is intent on sustaining.
Today's action didn't reflect much enthusiasm, though, but that wasn't out of the ordinary after a sharp two-day rally in stocks. Friday's leaders were an eclectic group: energy (+0.5%), materials (+0.5%), and consumer staples (+0.5%). The utilities (-0.3%), communication services (-0.2%), and information technology (-0.2%) sectors finished in negative territory.
Facebook (FB 187.49, -3.41, -1.8%) dragged on the communication services sector after New York announced a formal antitrust investigation into the company. Lululemon athletica (LULU 203.14, +14.73, +7.8%) impressed investors with positive results and upbeat guidance, which may have helped buying interest trickle over into the S&P 500 consumer discretionary sector (+0.2%).
DocuSign (DOCU 56.27, +10.02, +21.7%) was another standout, rising over 20% after the software company beat revenue estimates and issued upside revenue guidance.
U.S. Treasuries finished slightly higher after a sharp sell-off yesterday. The 2-yr yield and the 10-yr yield declined two basis points each to 1.52% and 1.55% respectively. The U.S. Dollar Index finished flat at 98.42. WTI crude increased 0.3%, or $0.14, to $56.45/bbl.
Reviewing Friday's economic data, which featured the Economic Situation Report for August:
The Employment Situation Report for August conveyed that payroll growth is slowing and that wage growth remains modest. Job growth has averaged 158,000 per month so far this year, versus the average monthly gain of 223,000 in 2018. Average hourly earnings, meanwhile, were up 3.2% yr/yr in August, versus 3.3% in July.
The key takeaway from the August employment report is that it isn't a distinctly disappointing report, even though the nonfarm payrolls and nonfarm private payrolls numbers might create that impression. The labor force participation rate increased to 63.2% from 63.0% in July (and 62.7% yr ago), the employment-population ratio rose to 60.9% from 60.7% (and 60.3% yr ago), and the total number of employed workers increased by 590,000 versus July. In sum, more people are working and earning money, which is a good recipe for increased consumer spending.
Looking ahead, investors will receive the Consumer Credit report for July on Monday.
Nasdaq Composite +22.1% YTD
S&P 500 +18.8% YTD
Dow Jones Industrial Average +14.9% YTD
Russell 2000 +11.6% YTD
Stocks rally on trade meeting news, solid economic data
05-Sep-19 16:20 ET
Dow +372.68 at 26728.13, Nasdaq +139.95 at 8116.86, S&P +38.22 at 2976.00
https://www.briefing.com/stock-market-update
[BRIEFING.COM] U.S. stocks rallied for the second straight day on Thursday, buoyed by news that the U.S. and China will hold trade talks next month and by encouraging economic data that eased recessionary concerns. The S&P 500 (+1.3%), Dow Jones Industrial Average (+1.4%), and Nasdaq Composite (+1.8%) each closed above their 50-day moving averages. The Russell 2000 advanced 1.8%.
The trade meeting, which was announced by China, is expected to take place in Washington in early October. Chinese state media expressed optimism that progress will be made, while press reports back in the states struck a more cautious tone. In either case, the news helped lift equities across the globe and extend the prior day's rally in the U.S. futures market.
The positive bias was reinforced heading into the open as the ADP Employment Change Report for August and the weekly initial claims report provided a healthy insight into the U.S. labor market. Better-than-expected factory orders and non-manufacturing activity for August solidified the risk-on sentiment that was upheld throughout the rest of the session.
The trade-sensitive S&P 500 information technology (+2.1%), consumer discretionary (+1.9%), and industrials (+1.8%) sectors were among today's leaders. The financials sector (+1.9%) also outperformed amid a sell-off in the U.S. Treasury market that sent yields noticeably higher. The defensive-oriented, and rate-sensitive, utilities (-1.2%), real estate (-0.9%), and consumer staples (-0.7%) sectors finished lower.
The 2-yr yield increased ten basis points to 1.54%, and the 10-yr yield increased 11 basis points to 1.57%. The U.S. Dollar Index was unchanged at 98.41. WTI crude inched up 0.2%, or $0.10, to $56.31/bbl.
Treasury yields took a leg higher soon after the release of the ISM Non-Manufacturing Index for August, which increased to 56.4% (Briefing.com consensus 54.0%) from 53.7% in July. Today's data, in aggregate, erased the small possibility in the market's mind for a 50-basis points rate cut at the September FOMC meeting, according to the CME FedWatch Tool. The stock market was undeterred, as it still expects a 25-bps cut amid decent data.
Trading volume picked up into the close, with approximately 2.1 billion shares exchanging hands at the Nasdaq trading floor in total. This was its highest participation in nearly two weeks, but it wasn't too notable given the macro-driven catalysts today. This might have been due to some investors preferring to wait for tomorrow's release of the Employment Situation Report for August.
Reviewing Thursday's batch of economic data:
The ISM Non-Manufacturing Index for August registered 56.4% (Briefing.com consensus 54.0%), up from 53.7% in July. A number above 50.0% reflects expansion, so the August number indicates non-manufacturing activity expanded and accelerated versus the pace of activity in July.
The key takeaway from the report is that there was a healthy increase in the New Orders Index (60.3% from 54.1%), which is a good sign and a nice offset to help temper some of the recession worries that have been festering with the flattening/inverted yield curve.
Initial claims for the week ending August 31 increased by 1,000 to 217,000 (Briefing.com consensus 214,000). Continuing claims for the week ending August 24 decreased by 39,000 to 1.662 million.
The key takeaway from the report is that initial claims continue to plumb fairly close to historic lows, which is an encouraging leading indicator.
Q2 Productivity was unchanged at 2.3% (Briefing.com consensus 2.2%) with the revised estimate while unit labor costs were revised up to 2.6% (Briefing.com consensus 2.4%) from 2.4%.
The key takeaway from the report is the uptick in unit labor costs. That has led to some profit margin pressures, as seen in the second quarter earnings reports.
Factory orders increased 1.4% in July (Briefing.com consensus +1.0%) after increasing a downwardly revised 0.5% (from 0.6%) in June.
The key takeaway from the report is that there was a slight upward revision to shipments of nondefense capital goods orders, excluding aircraft, which is a component that factors into Q3 GDP forecasts.
The ADP Employment Report showed an increase of 195,000 in August (Briefing.com consensus 150,000) while the July reading was revised to 142,000 from 156,000.
Looking ahead, investors will receive the Employment Situation report for August on Friday.
Nasdaq Composite +22.3% YTD
S&P 500 +18.7% YTD
Dow Jones Industrial Average +14.6% YTD
Russell 2000 +12.0% YTD
Stocks snap back amid Hong Kong reprieve, weaker dollar
04-Sep-19 16:20 ET
Dow +237.45 at 26355.45, Nasdaq +102.72 at 7976.91, S&P +31.51 at 2937.78
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market snapped back on Wednesday, catalyzed by news that Hong Kong agreed to withdraw its extradition bill while a weaker dollar supported the positive bias in the wake of the latest Brexit news. The S&P 500 (+1.1%) and Nasdaq Composite (+1.3%) increased over 1.0%, while the Dow Jones Industrial Average (+0.9%) and Russell 2000 (+0.9%) advanced 0.9%.
The reaction to the Hong Kong news was made most pronounced in the region's Hang Seng Index (+3.9%), but the positive sentiment did carry over into global markets as well. In terms of its implications for U.S. companies, some viewed the reprieve as one less obstacle in U.S.-China trade talks.
Weakness in the U.S. Dollar Index (98.44, -0.56, -0.6%) was attributed to strength in both the euro and British pound. The latter rose 1.1% against the dollar, as UK lawmakers voted in favor of blocking a no-deal Brexit on Oct. 31. A weaker dollar, should it persist, bodes well for the earnings prospects of U.S. multinational companies.
Today's advance was steady and broad-based with all 11 S&P 500 sectors finishing higher. Leadership came from the information technology (+1.7%), communication services (+1.6%), energy (+1.4%), industrials (+1.3%), and financials (+1.1%) sectors -- all of which rose over 1.0%. A big gain in oil prices ($56.21/bbl, +2.30, +4.3%) benefited many of the oil-sensitive energy stocks.
The market was also undeterred by downside guidance from Starbucks (SBUX 96.11, -0.66, -0.7%), Tyson Foods (TSN 86.06, -7.23, -7.8%), JetBlue (JBLU 16.39, -0.78, -4.5%), and American Eagle Outfitters (AEO 14.38, -1.89, -11.6%).
Today was clearly a positive day for stocks, but market participants weren't in any hurry to jump into the action, evidenced by the relatively light trading volume observed in recent sessions. This might have been due to an understanding that the market has been range-bound amid uncertainty surrounding politics, trade, growth, and monetary policy.
Several Fed officials had the opportunity to speak on monetary policy since yesterday's close. Although the market remained firm on its belief that the Fed will cut rates later this month, comments from the Fed officials weren't as resolute as the market's thinking. On a related note, the Fed's September Beige Book described overall economic activity as expanding at a modest pace.
U.S. Treasuries continued to see increased demand despite the rally in equities, putting some pressure on yields. The 2-yr yield declined three basis points to 1.44%, and the 10-yr yield declined one basis point to 1.46%.
Reviewing Wednesday's economic data, which included the Trade Balance report for July, the Fed's Beige Book for September, and the weekly MBA Mortgage Applications Index:
The trade deficit narrowed in July to -$54.1 billion (Briefing.com consensus -$53.2 billion) from a downwardly revised $55.5 billion (from -$55.2 billion) in June.
The key takeaway from the report is that the goods and services deficit on a year-to-date basis still increased by $28.2 billion, or 8.2%, from the same period in 2018, indicating that the tariff actions have yet to have their intended effect of reducing the overall trade deficit.
The Federal Reserve's September Beige Book described overall economic activity as expanding at a modest pace. The majority of surveyed businesses remained optimistic about the near-term outlook, though concerns about tariffs and trade policy remained in place. There was little overall change in tourism trends while transportation activity softened. Agricultural conditions remained weak due to unfavorable weather. Employment and prices grew at a modest pace.
The weekly MBA Mortgage Applications Index decreased 3.1% following a 6.2% decline in the prior week.
Looking ahead, investors will receive the following reports on Thursday: the ISM Non-Manufacturing Index for August, the ADP Employment Change report for August, Factor Orders for July, the weekly Initial and Continuing Claims report, and revised second-quarter readings for Productivity and Unit Labor Costs.
Nasdaq Composite +20.2% YTD
S&P 500 +17.2% YTD
Dow Jones Industrial Average +13.0% YTD
Russell 2000 +10.1% YTD
Stocks lose ground to begin September, manufacturing data disappoints
03-Sep-19 16:20 ET
Dow -285.26 at 26118.00, Nasdaq -88.72 at 7874.19, S&P -20.19 at 2906.27
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market finished lower on Tuesday to begin the shortened trading week and the month of September. The S&P 500 declined 0.7%, while the Dow Jones Industrial Average (-1.1%), Nasdaq Composite (-1.1%), and Russell 2000 (-1.5%) fell more than 1.0%.
The session began on a lower note as the market digested several global events. Additional tariffs imposed by the U.S. and China on each other went into effect on Sunday, much to the dismay of those hoping for a reprieve. Separately, protests escalated in Hong Kong, and UK Prime Minister Boris Johnson threatened to call a snap election if rebel lawmakers vote to block a no-deal Brexit. Mr. Johnson lost his party's parliamentary majority today.
An early comeback effort was thwarted upon the release of the ISM Manufacturing Index for August, which declined to 49.1% (Briefing.com consensus 51.3%) from a 51.2% reading in July. This denoted the first contraction (a reading below 50.0%) since 2016. The broader market quickly fell to session lows and traded below its opening levels for the rest of the session.
Relative weakness came from many of the S&P 500 cyclical sectors, including industrials (-1.4%), information technology (-1.3%), and financials (-1.1%). It wasn't entirely risk-off, though, as some investors sought safety in the defensive-oriented utilities (+1.8%), real estate (+1.3%), and consumer staples (+0.5%) sectors.
In corporate news, Boeing (BA 354.42, -9.67, -2.7%) fell on a report from The Wall Street Journal indicating its 737 MAX could be grounded through the holiday season. Uber (UBER 30.70, -1.87, -5.7%) and Lyft (LYFT 45.42, -3.55, -7.3%) hit new all-time lows as California moved closer to classify drivers as employees instead of contractors.
Amazon (AMZN 1789.84, +13.55, +0.8%) outperformed after RBC Capital Mkts raised its AMZN price target to $2600 from $2250.
U.S. Treasury yields fell to session lows soon after the release of the ISM Manufacturing Index but steadily came off those lows as the session progressed. The 2-yr yield finished three basis points lower at 1.47%, and the 10-yr yield finished four basis points lower at 1.47%. The U.S. Dollar Index increased 0.1% to 99.01. WTI crude lost 2.1%, or $1.15, to $53.91/bbl.
Reviewing Tuesday's economic data, which included the ISM Manufacturing Index for August and Construction Spending for July:
The ISM Manufacturing Index for August registered 49.1% (Briefing.com consensus 51.3%) following a 51.2% reading for July. The dividing line between expansion and contraction is 50.0%. The reading for August is the first sub-50% reading in three years and the lowest since January 2016.
The key takeaway from the report is that it will foment economic slowdown concerns, as well as worries about the deleterious impact of tariff actions on business investment. According to ISM, the past relationship between the PMI and the overall economy indicates the PMI for August corresponds to a 1.8% increase in real GDP on an annualized basis.
Total construction spending increased 0.1% m/m in July (Briefing.com consensus +0.3%) following an upwardly revised 0.7% decline (from -1.3%) in June.
The key takeaway from the report is the recognition that total construction spending declined 2.7% yr/yr. That was the ninth straight yr/yr decline -- a streak that hasn't been seen since 2011.
Looking ahead, investors will receive the weekly MBA Mortgage Applications Index, the Trade Balance report for July, and the Fed's Beige Book for September on Wednesday.
Nasdaq Composite +18.7% YTD
S&P 500 +15.9% YTD
Dow Jones Industrial Average +12.0% YTD
Russell 2000 +9.2% YTD
Stocks close little changed, end week higher
30-Aug-19 16:15 ET
Dow +41.03 at 26403.26, Nasdaq -10.51 at 7962.91, S&P +1.88 at 2926.46
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market finished little changed on Friday in a lackluster session before the holiday weekend. The S&P 500 (+0.1%) and Dow Jones Industrial Average (+0.2%) finished just above their flat lines, while the Nasdaq Composite (-0.1%) and Russell 2000 (-0.1%) finished slightly lower.
Stocks opened the session near their best levels of the day, supported by a reprieve in trade tensions and month-end rebalancing that tends to favor risk assets after four straight weekly declines -- that losing streak was snapped today. The early advance brought the S&P 500 within five points of its 50-day moving average (2945), but the market quickly retreated and wavered between small gains and losses for the rest of the session.
The market struggled to find direction amid missing leadership from some of its biggest technology names within the S&P 500 consumer discretionary (-0.6%), communication services (-0.1%), and information technology (unch) sectors. The materials (+0.7%), industrials (+0.4%), and financials (+0.4%) sectors did provide some support for the broader market.
Some negative considerations for the market included a stronger U.S. dollar that could pose a headwind for the earnings prospects of U.S. multinational companies; weaker oil prices ($55.06/bbl, -$1.61, -2.8%) that pressured oil-sensitive stocks; and a downward revision to consumer sentiment for August, reflecting a possible threat to discretionary spending amid the ongoing trade dispute.
In earnings news, shares of Ulta Beauty (ULTA 237.73, -99.72, -29.6%) tanked 30% after the company missed revenue estimates and lowered its full-year guidance. Workday (WDAY 177.28, -10.37, -5.5%) led the cloud software stocks lower despite positive results and upbeat guidance.
Notable standouts included Dell (DELL 51.53, +4.76, +10.2%) and Campbell Soup (CPB 45.00, +1.69, +3.9%) after both beat earnings expectations.
U.S. Treasuries finished slightly higher in a muted session. The 2-yr yield declined two basis points to 1.50%, and the 10-yr yield declined one basis point to 1.51%. The U.S. Dollar Index advanced 0.3% to 98.81.
Reviewing Friday's economic data, which included Personal Income and Spending for July, the PCE Price Index for July, the final University of Michigan Index of Consumer Sentiment for August, and the Chicago PMI for August:
Personal income increased 0.1% m/m in July (Briefing.com consensus +0.4%), which was weaker than expected thanks to a 1.8% decline in personal interest income, but personal spending increased a stronger-than-expected 0.6% (Briefing.com consensus +0.5%). The PCE Price Index and core PCE Price Index, which excludes food and energy, were both up 0.2%, which was also expected.
The key takeaway from the report is that consumer spending is solid and inflation is stable, albeit at below-target levels. All in all, there isn't a lot of ammunition in the report for the Fed to fire off a 50-basis points rate cut at its September meeting.
The final reading for the University of Michigan's Index of Consumer Sentiment for August was revised down to 89.8 (Briefing.com consensus 92.4) from the preliminary reading of 92.1. The final reading for July was 98.4. The difference in final readings between July and June was the largest point drop since December 2012.
The key takeaway from the report is the understanding that tariff issues are weighing more heavily on consumer sentiment, which threatens to temper discretionary spending activity in the months ahead.
The Chicago PMI increased to 50.4 in August (Briefing.com consensus 48.2) from 44.4 in July.
As a reminder, the market will be closed on Monday for Labor Day. Investors will receive the ISM Manufacturing Index for August and Construction Spending for July on Tuesday.
Nasdaq Composite +20.0% YTD
S&P 500 +16.7% YTD
Dow Jones Industrial Average +13.2% YTD
Russell 2000 +10.9% YTD
Stock market rallies on hopeful China trade comments
29-Aug-19 16:20 ET
Dow +326.15 at 26362.23, Nasdaq +116.51 at 7973.42, S&P +36.64 at 2924.58
https://www.briefing.com/stock-market-update
[BRIEFING.COM] Each of the major U.S. indices rose more than 1.0% on Thursday, lifted by China indicating it wants to prevent trade tensions from further escalating. The S&P 500 (+1.3%) and Dow Jones Industrial Average (+1.3%) both increased 1.3%. The Nasdaq Composite (+1.5%) and Russell 2000 (+1.6%) pulled out ahead.
China's Commerce Minister Gao repeated his country's willingness to proceed with negotiations in a "calm" manner, adding Beijing wasn't planning on immediately retaliating on the latest U.S. tariff increases. Mr. Gao hoped discussions could help remove the new tariffs imposed by the U.S., although he refrained from answering if retaliatory measures were entirely off the table.
In either case, the market liked the underlying conciliatory tone ahead of trade talks planned for September. The futures market jumped on the comments, and the cash market maintained the bullish composure throughout the day. Leadership came from the S&P 500 cyclical sectors.
Ten of the 11 S&P 500 sectors finished in positive territory. The industrials (+1.8%) and information technology (+1.7%) sectors outperformed amid solid gains in the trade-sensitive transportation and semiconductor spaces. The Dow Jones Transportation Average increased 2.0%, and the Philadelphia Semiconductor Index increased 2.3%. The consumer staples sector (unch) was unchanged.
The energy (+1.5%) and financials (+1.5%) sectors received an added boost from higher oil prices ($56.67/bbl, +0.91, +1.6%) and some yield-curve steepening, respectively. Some end-of-the-month rebalancing might have also contributed to their outperformance given their poor performances in August.
Improved sentiment pertaining to economic growth, supported by an upward revision to second-quarter consumer spending growth, helped contribute to the curve-steeping activity. The 2-yr yield increased one basis point to 1.52%, and the 10-yr yield increased five basis points to 1.52%. The U.S. Dollar Index advanced 0.3% to 98.45.
Corporate news revolved around a host of earnings reports from retail companies. Dollar General (DG 156.09, +15.06, +10.7%), Burlington Stores (BURL 205.42, +32.15, +18.9%), and PVH (PVH 76.00, +4.47, +6.3%) posted strong gains following their results, while Best Buy (BBY 63.49, -5.51, -8.0%) and Williams-Sonoma (WSM 64.16, -4.62, -6.7%) fell noticeably following their results.
Reviewing Thursday's economic data:
The second estimate for Q2 GDP showed a downward revision to 2.0% annualized growth (Briefing.com consensus 2.0%) from 2.1% annualized growth reported in the advance estimate. The GDP Deflator was unrevised at 2.4%, as expected.
The key takeaway from the report is that consumer spending growth was revised up to 4.7% from 4.3%, which was the strongest growth since the fourth quarter of 2014. Granted it's a backward-looking data point, yet it offers a nice reminder that the U.S. consumer, supported by a tight labor market, has remained in good shape.
Initial claims for the week ending August 24 increased by 4,000 to 215,000, as expected. Continuing claims for the week ending August 17 increased by 22,000 to 1.698 million.
The key takeaway from the report is that initial claims, which are an important leading indicator, remain low. That will perpetuate the belief that there remains a good underpinning in a tight labor market for continued consumer spending growth.
The Advance report for International Trade in Goods for July showed a deficit of $72.3 billion following an unrevised deficit of $74.2 billion. Meanwhile, the Advance report for Wholesale Inventories for July increased 0.2%, and the Advance report for Retail Inventories for July increased 0.8%.
Pending Home Sales declined 2.5% in July (Briefing.com consensus +0.1%). Today's reading follows an unrevised increase of 2.8% in June.
Looking ahead, investors will receive Personal Income and Spending for July, the PCE Price Index for July, the Chicago PMI for August, and the final University of Michigan Consumer Sentiment report for August on Friday.
Nasdaq Composite +20.2% YTD
S&P 500 +16.7% YTD
Dow Jones Industrial Average +13.0% YTD
Russell 2000 +11.0% YTD
Stocks recoup early losses and finish higher; energy outperforms
28-Aug-19 16:20 ET
Dow +258.20 at 26036.08, Nasdaq +29.94 at 7856.91, S&P +18.78 at 2887.94
https://www.briefing.com/stock-market-update
[BRIEFING.COM] U.S. stocks finished higher on Wednesday in a broad-based advance. The S&P 500 increased 0.7%, quickly overcoming a negative start that was attributed to declining Treasury yields and finished near session highs.
The blue-chip Dow Jones Industrial Average increased 1.0%, the tech-sensitive Nasdaq Composite increased 0.4%, and the small-cap Russell 2000 increased 1.2%.
Wednesday's session didn't include any market-moving news or notable economic data, and it was mostly quiet on the U.S.-China trade front. In turn, there was an early fixation on the Treasury market, where the continued decline in yields fed into concerns about economic and corporate earnings growth.
Yields came off session lows soon after stocks opened for trading, though, allowing risk sentiment to ease its way back into a flustered stock market. The 2-yr and 10-yr yields declined two basis points each to 1.51% and 1.47%, respectively. The U.S. Dollar Index increased 0.3% to 98.26.
Ten of the 11 S&P 500 sectors finished the day in positive territory. Energy (+1.4%), consumer discretionary (+1.1%), and industrials (+1.1%) set the pace, while the utilities sector (-0.3%) was the lone holdout. The energy sector entered today's session down over 10% in August, but it found some reprieve amid higher oil prices ($55.76/bbl, +$0.86, +1.6%) following bullish inventory data.
Coty (COTY 9.33, +0.53, +6.0%) and Tiffany & Co. (TIF 85.16, +2.49, +3.0%) outperformed following their earnings reports. Autodesk (ADSK 140.08, -10.13, -6.7%) fell after it provided some disappointing guidance that put some pressure on other software stocks within the information technology sector (+0.1%).
Separately, Tropical Storm Dorian strengthened into a hurricane as it threatened to make its way toward Puerto Rico. Many of the insurance stocks underperformed throughout the day. Elsewhere, Queen Elizabeth II approved UK Prime Minister Boris Johnson's plan to suspend Parliament until Oct. 14, increasing the likelihood of a no-deal Brexit on Oct. 31.
Wednesday's economic data was limited to the weekly MBA Mortgage Applications Index, which declined 6.2% following a 0.9% decline in the prior week.
Looking ahead, investors will receive the following data on Thursday: the advance reports for International Trade in Goods, Retail Inventories, and Wholesale Inventories for July; the second estimate for second-quarter GDP; Pending Home Sales for July; and the weekly Initial and Continuing Claims report.
Nasdaq Composite +18.4% YTD
S&P 500 +15.2% YTD
Dow Jones Industrial Average +11.6% YTD
Russell 2000 +9.2% YTD
Stocks lose ground while Treasury yields resume decline
27-Aug-19 16:25 ET
Dow -120.93 at 25777.88, Nasdaq -26.79 at 7826.97, S&P -9.22 at 2869.16
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market finished lower on Tuesday in a shaky session. The S&P 500 jumped 0.7% out of the gate after yesterday's advance, then declined as much 0.6% as Treasury yields took a noticeable leg lower. The broader market spent most of the afternoon wavering in negative territory, leaving the S&P 500 with a 0.3% loss.
The Dow Jones Industrial Average (-0.5%) and Nasdaq Composite (-0.3%) performed similarly to the benchmark index. The Russell 2000 dropped 1.4%, largely due to weakness in many of the energy and financial stocks.
Today's higher start was formed even as traditional safe-haven assets like gold ($1541.30/oz, +$13.80, +0.9%) and U.S. Treasuries saw increased demand and China again denied it held recent phone calls with top U.S. negotiators. The market, perhaps due to some wary (and weary) investors, quickly embarked on a steady retreat while one of strongest consumer confidence readings since October 2000 produced little reaction.
The reaction to the persistent flattening/inversion activity in the U.S. Treasury yield curve was made more evident in the S&P 500 financials sector (-0.7%), which led all sectors in losses on Tuesday. The energy (-0.6%) and health care (-0.6%) sectors followed suit, while the utilities (+0.1%), materials (+0.1%), and communication services (+0.1%) sectors managed to finish in positive territory.
Specifically, the 2s10s spread inversion widened to four basis points, which isn't terribly conducive for lending activity. The 2-yr yield declined two basis points to 1.53%, and the 10-yr yield declined six basis points to 1.49%. The U.S. Dollar Index was little changed at 98.04. WTI crude rose 2.4% to $54.90/bbl.
Johnson & Johnson (JNJ 129.64, +1.84, +1.4%) outperformed despite being found liable in an opioid case in Oklahoma. JNJ was ordered to pay $572 million, which was at the low end of expectations and much less than the $17 billion the state wanted. Johnson & Johnson said it plans to appeal the ruling.
Other corporate news included merger talks between Philip Morris International (PM 71.70, -6.03, -7.8%) and Altria Group (MO 45.25, -1.87, -4.0%). MO surged on the initial news but fell on a subsequent report from CNBC indicating it would own just 41% of the company at no premium. J.M. Smucker (SJM 103.69, -9.24, -8.2%) disappointed investors with its results and lower guidance.
Reviewing Tuesday's economic data, which included the Conference Board's Consumer Confidence Index for August, the FHFA Housing Price Index for June, and the S&P Case-Shiller Home Price Index for June:
The Conference Board's Consumer Confidence Index for August printed at 135.1 (Briefing.com consensus 129.6) versus an upwardly revised 135.8 (from 135.7) in July, which was the third highest reading since October 2000.
The key takeaway from the report is that it reflects a pretty solid state of consumer confidence, which is a supportive foundation for continued discretionary spending. That matters greatly for an economy driven predominantly by consumer spending.
The FHFA Housing Price Index for June increased 0.2% following a revised 0.2% increase in May (from 0.1%).
The S&P Case-Shiller Home Price Index for June increased 2.1% (Briefing.com consensus of 2.7%) following a 2.4% increase in May.
Looking ahead, investors will receive the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +18.0% YTD
S&P 500 +15.0% YTD
Dow Jones Industrial Average +10.5% YTD
Russell 2000 +8.0% YTD
Wall Street begins week on higher note following Trump trade comments
26-Aug-19 16:20 ET
Dow +269.93 at 25898.81, Nasdaq +101.97 at 7853.76, S&P +31.27 at 2878.38
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market rebounded more than 1% on Monday, catalyzed by President Trump's contention that China called top U.S. negotiators to restart trade talks. The S&P 500 advanced 1.1%, which was comparable to the gains in the Dow Jones Industrial Average (+1.1%), Nasdaq Composite (+1.3%), and Russell 2000 (+1.1%). Most of the price action occurred before the open, but the market was able to close near session highs.
When the futures market opened for trading Sunday evening, the indication for today's open was sharply lower. Presumably, the market was reacting to President Trump's announcement made after Friday's close that he was planning on increasing the tariff rates on $525 billion of Chinese imports. Futures quickly climbed into positive territory in overnight action following the president's remarks from the G7 meeting in France.
Interestingly, the market held its positive posture throughout the day even though trade talks were already planned for September. China's Foreign Ministry spokesman also denied knowledge of any such calls while Chinese press downplayed the significance of Mr. Trump's statement. In a conciliatory move, President Trump reciprocated China's willingness to resolve their dispute through "calm" negotiations.
Gains were broad-based, yet investors didn't appear in any hurry to jump into the action given the relatively light trading volume during the day. Mega-cap stocks within the S&P 500 communication services (+1.5%) and information technology (+1.4%) sectors provided influential leadership. The trade-sensitive materials sector (+0.3%), oddly enough, increased the least.
In key corporate news, Bristol-Myers (BMY 48.11, +1.53, +3.3%) sold Celgene's (CELG 97.00, +3.01, +3.2%) psoriasis drug Otezla to Amgen (AMGN 205.41, +6.33, +3.2%) for $13.4 billion in cash. Bristol-Myers hoped that by selling the rights to Otezla, it would appease any antitrust concerns as it tries to get its merger agreement with Celgene approved.
Separately, oil and gas company TechnipFMC (FTI 24.01, +0.91, +3.9%) announced it will split into two publicly traded companies.
U.S. Treasuries finished the day lower, giving up an overnight rally following President Trump's trade comments. The 2-yr yield increased two basis points to 1.55%, and the 10-yr yield increased one basis point to 1.55%. The U.S. Dollar Index advanced 0.4% to 98.07. WTI crude lost 0.9% to $53.70/bbl on speculation that a possible U.S.-Iran meeting could lead to oversupply.
Reviewing Monday's economic data, which was limited to Durable Goods Orders for July:
Durable goods orders increased 2.1% (Briefing.com consensus +1.2%) following a downwardly revised 1.8% increase (from 2.0%) in June. Excluding transportation, durable goods orders decreased 0.4% (Briefing.com consensus +0.1%) following a downwardly revised 0.8% increase (from 1.2%) in June.
The key takeaway from the report is that orders for nondefense capital goods, excluding aircraft -- a proxy for business investment -- increased 0.4% in July on the heels of a 0.9% increase in June. Shipments, though, dropped 0.7%, which is a component that will factor into Q3 GDP forecasts.
Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for August, the FHFA Housing Price Index for June, and the S&P Case-Shiller Home Price Index for June on Tuesday.
Nasdaq Composite +18.4% YTD
S&P 500 +14.8% YTD
Dow Jones Industrial Average +11.0% YTD
Russell 2000 +9.5% YTD
Stocks sell off after Trump and China heighten trade tensions
23-Aug-19 16:20 ET
Dow -623.34 at 25628.88, Nasdaq -239.62 at 7751.79, S&P -75.84 at 2847.11
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market sold off on Friday after President Trump ordered companies to find an alternative to China in response to Beijing announcing retaliatory tariffs against the U.S. The S&P 500 (-2.6%) and Dow Jones Industrial Average (-2.4%) lost around 2.5%, while the Nasdaq Composite (-3.0%) and Russell 2000 (-3.1%) lost at least 3.0%.
The day started with investors looking forward to Fed Chair Powell's speech from Jackson Hole, Wyoming. Attention quickly shifted to trade, however, after China announced tariffs on $75 billion of goods imported from the U.S on Sept. 1 and Dec. 15, which are the same dates the U.S. has planned for its tariffs on China. The tariff rate will range from 5-10%, including a separate 5-25% on autos and auto parts starting Dec. 15.
Modest selling ensued, but stocks quickly recouped losses after Mr. Powell reiterated comments that upheld the market's view for further economic stimulus. The day had barely begun, though, and President Trump took to Twitter to lash out against both the Fed Chair and China. Stocks fell noticeably on the president's declaration that companies find alternatives to China.
A steady broad-based retreat transpired during the day amid worries that escalated trade tensions will exacerbate slowing global growth and, by extension, affect corporate earnings. All 11 S&P 500 sectors finished in negative territory, which saw the energy (-3.4%) and information technology (-3.3%) sectors losing over 3%. The utilities sector (-1.1%) declined the least.
Shares of Apple (AAPL 202.64, -9.82) fell 4.6% and other trade-sensitive areas like the Philadelphia Semiconductor Index (-4.4%) and Dow Jones Transportation Average (-3.3%) also posted steep losses. Shares of Foot Locker (FL 34.00, -7.93, -18.9%) plunged nearly 20% after the company missed top and bottom-line estimates.
Amid the uncertainty and growth concerns, investors flocked to safe-haven assets like gold ($1537.25/oz, +$28.75, +1.9%), the Japanese yen, and U.S. Treasuries. In addition, expectations for further downside in equities contributed to a 17.8% spike in the CBOE Volatility Index (19.65, +2.97).
The 2-yr yield dropped seven basis points to 1.53%, and the 10-yr yield dropped eight basis points to 1.53%. The U.S. Dollar Index fell 0.5% to 97.73. WTI crude fell 2.0%, or $1.12, to $54.16/bbl.
President Trump also indicated he would officially respond to Beijing's actions in the afternoon. No response was announced by session's close, which may have contributed to some reservations to step into the action during the day.
Friday's economic data was limited to New Home Sales for July:
New home sales declined 12.8% m/m to a seasonally adjusted annual rate of 635,000 (Briefing.com consensus 645,000) from an upwardly revised 728,000 (from 646,000) in June. New home sales were up 4.3% yr/yr.
The key takeaway from the report is that there was a big upward revision for June, yet there was no follow-through in July despite low mortgage rates and lower median sales prices. Sales were down big in three of the four regions and the total number of new homes sold was still below the originally reported 646,000 increase for June.
Looking ahead, investors will receive Durable Goods Orders for July on Monday.
Nasdaq Composite +16.8% YTD
S&P 500 +13.6% YTD
Dow Jones Industrial Average +9.9% YTD
Russell 2000 +8.2% YTD
Target and Lowe's lift Wall Street, FOMC minutes flatten yield curve
21-Aug-19 16:20 ET
Dow +240.29 at 26202.71, Nasdaq +71.65 at 8020.23, S&P +23.92 at 2924.43
[BRIEFING.COM] The S&P 500 increased 0.8% on Wednesday in a broad-based advance. Upbeat results and reassuring guidance from Target (TGT 103.00, +17.47, +20.4%) and Lowe's (LOW 108.00, +10.13, +10.4%) reinforced the notion that the U.S. consumer remains in good shape, while investors parsed the FOMC minutes from the July meeting.
The Dow Jones Industrial Average increased 0.9%, the Nasdaq Composite increased 0.9%, and the Russell 2000 increased 0.8%.
Wednesday's positive disposition formed overnight as futures steadily increased alongside a modest uptick in U.S. Treasury yields. Outsized gains in Target and Lowe's following their earnings reports helped solidify the market's positive posture throughout the day.
All 11 S&P 500 sectors finished in positive territory, with the consumer discretionary (+1.8%) and information technology (+1.2%) sectors gaining over 1.0%. The consumer staples (+0.3%) and communication services (+0.4%) sectors rose modestly.
Price action was relatively muted leading up to the release of the FOMC Minutes, which had a noticeable effect on the U.S. Treasury market. The minutes indicated different viewpoints on where the fed funds rate should be (some called for a 50-basis points rate cut, while others favored no change). In addition, it was said in the minutes that the Fed will remain "flexible" and focused on the implications of incoming data for the outlook.
The minutes produced some knee-jerk selling on the shorter-end of the yield curve, causing some curve-flattening activity that garnered some negative-minded attention. The 2-yr yield increased six basis points to 1.57%, and the 10-yr yield increased two basis points to 1.58%. At one point before the close, the 2s10s spread briefly inverted again. The U.S. Dollar Index increased 0.1% to 98.29. WTI crude declined 0.9%, or $0.53, to $55.65/bbl.
It should be noted that the Fed meeting preceded a tariff announcement from President Trump, a brief 2s-10s spread inversion, and weakening global data. The minutes may be considered even more dated once Fed Chair Powell speaks on Friday during the Fed's Jackson Hole symposium.
Separately, shares of Cree Inc. (CREE 49.01, -9.23) fell 15.9% after the semiconductor company disappointed investors with its guidance.
Reviewing Wednesday's economic data, which included Existing Home Sales for July and the weekly MBA Mortgage Applications Index:
Existing home sales increased 2.5% month-over-month in July to a seasonally-adjusted annual rate of 5.42 million (Briefing.com consensus 5.40 million) from an upwardly revised 5.29 million (from 5.27 million) in June. Total sales were 0.6% higher than the same period a year ago.
The key takeaway from the report is that the inventory of existing homes for sale remains tight. That will continue to support high prices, which in turn makes the persistence of low mortgage rates extremely important as a driver of existing home sales activity.
The weekly MBA Mortgage Applications Index declined 0.9% following a 21.7% spike in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report and the Conference Board's Leading Economic Index for July on Thursday.
Nasdaq Composite +20.9% YTD
S&P 500 +16.7% YTD
Dow Jones Industrial Average +12.3% YTD
Russell 2000 +12.0% YTD
Stock market snaps rebound rally; all sectors lose ground
20-Aug-19 16:25 ET
Dow -173.35 at 25962.42, Nasdaq -54.25 at 7948.58, S&P -23.14 at 2900.51
[BRIEFING.COM] The stock market retraced some of its recent gains on Tuesday, as buyers appeared weary after a sharp two-day rally. The S&P 500 fell 0.8%, which was comparable to the declines in the Dow Jones Industrial Average (-0.7%), Nasdaq Composite (-0.7%), and Russell 2000 (-0.7%)
The day began modestly lower following lackluster performances overseas, and stocks quickly fell to session lows on no specific news catalysts. After a brief intraday rally to the flat line, the S&P 500 and the other major averages steadily returned to those session lows by late afternoon. Selling accelerated into the close, stamping a sour note to the session.
All 11 S&P 500 sectors finished in negative territory, with the financials (-1.4%), materials (-1.2%), and consumer staples (-1.2%) sectors losing over 1.0%. The consumer discretionary sector (-0.1%) finished just below its flat line, supported by the positive reaction to Home Depot's (HD 217.09, +9.14, +4.4%) earnings results.
In other earnings news, fellow retailers Kohl's (KSS 44.88, -3.32, -6.9%) and TJX Companies (TJX 51.51, -0.04, -0.1%) finished mixed following their reports. Kohl's fell despite beating top and bottom-line estimates. TJX finished little changed despite missing revenue estimates and guiding Q3 EPS below consensus.
Netflix (NFLX 298.99, -10.39, -3.4%) shares fell over 3%, likely pressured by a Bloomberg report that indicated Apple (AAPL 210.36, +0.01, unch) plans to launch its streaming service in November for $9.99/month.
Separately, President Trump said his administration was looking at ways to reduce various taxes to help stimulate growth despite repeated claims on how the good the economy is doing. Market reaction was muted, as it remained unclear if discussions would lead to proposals that Congress would approve.
Mr. Trump also dismissed recessionary fears, which appeared to linger in the U.S. Treasury market in the form of some curve-flattening action. The 2-yr yield declined two basis points to 1.51%, and the 10-yr yield declined four basis points to 1.56%. The U.S. Dollar Index declined 0.2% to 98.15. WTI crude declined 0.1% to $56.18/bbl.
Investors did not receive any economic data on Tuesday. Tomorrow, investors will receive Existing Homes Sales for July, the FOMC Minutes from the July meeting, and the weekly MBA Mortgage Applications Index.
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