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Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34299.99 -569.38 (-1.63%)
Nasdaq 14546.68 -423.29 (-2.83%)
SP 500 4352.63 -90.48 (-2.04%)
10-yr Note -6/32 1.546
NYSE Adv 627 Dec 2572 Vol 985.6 mln
Nasdaq Adv 832 Dec 2982 Vol 4.9 bln
Industry Watch
Strong: Energy
Weak: Information Technology, Communication Services, Consumer Discretionary
Moving the Market
-- S&P 500 loses 2% amid continued upwards momentum in long-term interest rates
-- 10-yr yield settles at 1.53% after touching 1.56%, while energy prices significantly pared early gains
-- Consumer confidence decreases further in September
S&P 500 falls 2% as rising Treasury yields unnerve investors
28-Sep-21 16:20 ET
Dow -569.38 at 34299.99, Nasdaq -423.29 at 14546.68, S&P -90.48 at 4352.63
[BRIEFING.COM] The S&P 500 fell 2.0% on Tuesday, closing at session lows, as another increase in long-term interest rates disproportionately affected the growth stocks and undercut general risk sentiment. The Nasdaq Composite declined 2.8%, the Russell 2000 declined 2.3%, and the Dow Jones Industrial Average declined 1.6%.
The 10-yr yield settled higher by five basis points to 1.53% after touching 1.56% in the morning, as selling interest remained influenced by expectations for sustained inflation and an eventual Fed tapering. The 2-yr yield also closed higher, finishing up two basis points to 0.30%. The U.S. Dollar Index rose 0.3% to 93.70.
The S&P 500 information technology (-3.0%) and communication services (-2.8%) sectors, where several of the mega-cap growth stocks reside, led the retreat with 3% declines. The energy sector (+0.5%) was the only sector that closed higher, even as oil prices coughed up early gains.
WTI crude futures settled lower by 0.1%, or $0.10, to $75.29/bbl after being up 1.7% intraday. Natural gas futures settled higher by 1.4% to $5.82/MMBtu after being up 10% intraday. The early momentum in energy prices fed into the inflation expectations that drove rates higher.
Unlike yesterday, the weakness wasn't constrained to the highly-valued growth stocks (the Russell 1000 Value Index fell 1.3%), which seemed to engender some concerns about further downside. Reflecting the latter concerns, the CBOE Volatility Index (23.25, +4.49, +23.9%) spiked above the 23.00 level amid increased hedging interest.
The extent and scope of the selling might have been exacerbated by other negative-sounding developments:
The Conference Board's Consumer Confidence Index dropped to 109.3 in September (Briefing.com consensus 114.4) from 115.2 in August, the S&P 500 broke below its 50-day moving average (4444), and Senator Warren (D-MA) told Fed Chair Powell she won't support his renomination because she believes the Fed chair made the banking system less safe.
Both Fed Chair Powell and Treasury Secretary Yellen testified before the Senate Banking Committee today. Mr. Powell reiterated his view that inflation pressures should remain elevated before moderating closer to the Fed's 2% longer-run goal. Ms. Yellen said the Treasury's resources will likely be exhausted by Oct. 18 if the debt ceiling isn't addressed.
Reviewing Tuesday's economic data:
The Conference Board's Consumer Confidence Index dropped to 109.3 in September (Briefing.com consensus 114.4) from an upwardly revised 115.2 (from 113.8) in August. Concerns about the Delta variant were cited as a factor that continued to dampen consumer optimism.
The key takeaway from the report is the expectation that consumer spending is apt to be curtailed given that consumer confidence has fallen in back-to-back months.
The Advance report for International Trade in Goods for August showed a deficit of $87.6 billion, versus a revised $86.8 billion (from $86.4 billion) in July. The Advance report for Retail Inventories for August increased 0.1%, while the Advance report for Wholesale Inventories for August increased 1.2%.
The July FHFA Housing Price Index increased 1.4% m/m following a revised 1.7% increase (from 1.6%) in June.
The July S&P Case-Shiller Home Price Index was up 19.9% yr/yr following a 19.1% increase in June.
Looking ahead, investors will receive Pending Home Sales for August and the weekly MBA Mortgage Applications Index on Wednesday.
S&P 500 +15.9% YTD
Russell 2000 +12.9% YTD
Nasdaq Composite +12.9% YTD
Dow Jones Industrial Average +12.1% YTD
WTI crude futures cough up early gain and settle lower
28-Sep-21 15:30 ET
Dow -466.30 at 34403.07, Nasdaq -359.06 at 14610.91, S&P -74.90 at 4368.21
[BRIEFING.COM] The S&P 500 is down 1.7% while the Russell 2000 is down 1.5%.
One last look at the S&P 500 sectors shows information technology (-2.5%) and communication services (-2.4%) down more than 2.0%, while the energy sector (+0.6%) remains the only sector holding onto a gain.
WTI crude futures settled lower by 0.1%, or $0.10, to $75.29/bbl after being up 1.7% intraday.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34869.37 +71.37 (0.21%)
Nasdaq 14969.97 -77.73 (-0.52%)
SP 500 4443.11 -12.37 (-0.28%)
10-yr Note -25/32 1.484
NYSE Adv 1911 Dec 1348 Vol 898.1 mln
Nasdaq Adv 2654 Dec 1669 Vol 4.6 bln
Industry Watch
Strong: Energy, Financials, Materials, Industrials
Weak: Information Technology, Health Care, Real Estate, Utilities
Moving the Market
-- Energy market gains steam amid reports of energy crunch in China and fuel shortages in the UK
-- Valuation-oriented weakness in the mega-caps
-- 10-yr yield hits 1.51%
Stocks close mixed, growth stocks lag while cyclicals rise
27-Sep-21 16:20 ET
Dow +71.37 at 34869.37, Nasdaq -77.73 at 14969.97, S&P -12.37 at 4443.11
[BRIEFING.COM] The S&P 500 decreased 0.3% on Monday in a session that featured positive momentum in long-term interest rates and energy prices, as well as influential weakness in the growth stocks.
The Nasdaq Composite, having more exposure to growth stocks, declined 0.5%, although it was down as much as 1.2% in early action. The Dow Jones Industrial Average gained 0.2% while the Russell 2000 outperformed with a 1.5% gain.
Prior to the open, the 10-yr yield hit 1.51% after it flirted with 1.30% last week. This speedy ascent was blamed for the early weakness in the growth stocks, and in effect the Nasdaq, due to their high valuations. The 10-yr yield quickly leveled off, though, and settled at 1.48%, or two basis points above Friday's settlement.
Growth stocks came off their lows as yields leveled off, and some buyers stepped into the market as the S&P 500 found support at its 50-day moving average (4442), which it managed to close above. The S&P 500 information technology sector still declined 1.0%, though.
The health care (-1.4%), real estate (-1.7%), and utilities (-1.2%) sectors underperformed with losses over 1.0%. On the upside, the cyclical energy (+3.4%), financials (+1.3%), materials (+0.8%), consumer discretionary (+0.4%), and industrials (+0.1%) sectors were the only sectors that closed higher.
Bank stocks benefited from the higher interest-rate environment while energy stocks rallied with the upwards momentum in WTI crude futures ($75.39/bbl, +1.39, +1.9%) and natural gas futures ($5.71/MMBtu, +0.51, +9.8%). The SPDR S&P Bank ETF (KBE 53.65, +1.81, +3.5%) rose 3.5%.
Energy prices were supported by reports of fuel shortages in the UK and an energy crunch in China amid supply constraints and rising demand. On a related note, some technology suppliers in China were forced to halt production this week in order to comply with a policy from Beijing aimed at preserving energy.
Separately, Boston Fed President Rosengren announced he will retire this Thursday, up from June 2022, due to health issues. CNBC reported right after the close that Dallas Fed President Kaplan announced he will now retire Oct. 8, citing the distractions his trading disclosures have created for the Fed. Mr. Rosengren was supposed to be an FOMC voter in 2022 while Mr. Kaplan had a vote in 2023.
The 2-yr yield increased one basis point to 0.28%. The U.S. Dollar Index increased 0.1% to 93.40.
Reviewing Monday's economic data:
The August Durable Goods Orders report was mixed. Total durable goods orders up 1.8% (Briefing.com consensus +0.6%) following an upwardly revised 0.5% increase (from -0.1%) in July. Excluding transportation, orders were up 0.2% (Briefing.com consensus +0.6%) after an upwardly revised 0.8% increase (from 0.7%) in July. On a year-over-year basis, durable goods orders were up 24.7%, while orders, excluding transportation, were up 17.7%.
The key takeaway from the report is that business spending remained on a positive track, evidenced by the 0.5% increase in nondefense capital goods orders excluding aircraft.
Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for September; Advanced Intl Trade in Goods, Retail Inventories, and Wholesale Inventories for August; the FHFA Housing Price Index for July; and the S&P Case-Shiller Home Price Index for July on Tuesday.
S&P 500 +18.3% YTD
Nasdaq Composite +16.2% YTD
Russell 2000 +15.5% YTD
Dow Jones Industrial Average +13.9% YTD
Crude futures settle above $75 per barrel
27-Sep-21 15:30 ET
Dow +102.76 at 34900.76, Nasdaq -57.42 at 14990.28, S&P -6.15 at 4449.33
[BRIEFING.COM] The S&P 500 is down 0.1% after being down 0.4% intraday.
One last look at the S&P 500 sectors shows energy (+3.6%) racing ahead with a 3.6% gain, followed by the financials sector with a 1.4% gain. On the downside, the health care (-1.3%) and real estate (-1.2%) sectors are down more than 1.0%.
WTI crude futures settled higher by 1.9%, or $1.39, to $75.39/bbl amid reports of fuel shortages in the UK and an energy crunch in China.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34798.00 +33.18 (0.10%)
Nasdaq 15047.70 -4.54 (-0.03%)
SP 500 4455.48 +6.50 (0.15%)
10-yr Note -2/32 1.454
NYSE Adv 1305 Dec 1925 Vol 763.3 mln
Nasdaq Adv 1837 Dec 2451 Vol 3.9 bln
Industry Watch
Strong: Energy, Communication Services, Financials
Weak: Real Estate, Health Care, Materials, Utilities
Moving the Market
-- Large-cap indices take a breaker and close little changed
-- Long-term interest rates increased for the second straight day
-- Nike (NKE) issues downside revenue guidance due to supply chain issues
-- S&P 500 supported by its 50-day moving average (4439)
Market takes a breather to close out the week
24-Sep-21 16:20 ET
Dow +33.18 at 34798.00, Nasdaq -4.54 at 15047.70, S&P +6.50 at 4455.48
[BRIEFING.COM] The large-cap indices closed little changed on Friday, as the market took a breather and digested another increase in long-term interest rates. The S&P 500 (+0.2%) and Dow Jones Industrial Average (+0.1%) eked out gains while the Nasdaq Composite (-0.03%) closed fractionally lower. The Russell 2000 declined 0.5%.
The session started with index losses ranging from 0.3% (Dow) to 0.9% (Nasdaq). The shaky start was attributed to valuation-oriented weakness in the growth stocks amid the higher rates, a revenue warning from Nike (NKE 149.59, -9.99, -6.3%) due to supply chain issues, and news that Evergrande didn't make a payment on a dollar-denominated bond yesterday.
The 10-yr yield settled higher by five basis points to 1.46% after touching 1.30% in the wee hours of Thursday morning.
The S&P 500 financials sector (+0.6%) naturally keyed off the higher rates, but it was outpaced by the energy (+0.8%) and communication services (+0.7%) sectors from a percentage standpoint. The real estate (-1.2%), health care (-0.4%), materials (-0.2%), and utilities (-0.2%) sectors closed lower.
Sellers loosened their influence on the market amid a recognition that the S&P 500 reclaimed -- and stayed above -- its 50-day moving average (4439) after opening below the key technical level. Buying efforts, however, were tempered in part due to a recognition that the S&P 500 was already up more than 3.0% from Monday's low.
Resiliently, the Russell 1000 Growth Index overcome an early 0.6% decline and increased 0.1%, matching the gain of the Russell 1000 Value Index (+0.1%).
Costco (COST 467.75, +14.97, +3.3%) and McDonald's (MCD 246.42, +1.64, +0.7%) were two other story stocks today. Costco beat EPS estimates while McDonald's raised its dividend by 7% and announced a resumption of share repurchases.
The 2-yr yield increased one basis point to 0.27%. The U.S. Dollar Index decreased 0.2% to 93.28. WTI crude futures increased 0.9%, or $0.67, to $74.00/bbl.
Reviewing Friday's economic data:
New home sales increased 1.5% month-over-month to a seasonally adjusted annual rate of 740,000 (Briefing.com consensus 720,000) from an upwardly revised 729,000 (from 708,000) in July.
The key takeaway from the report is that new home sales momentum has been slowed by cost constraints that are making it less enticing for builders to build lower-priced homes and by affordability pressures that are making it more challenging for prospective buyers to buy higher-priced homes.
Looking ahead, investors will receive Durable Goods Orders for August on Monday.
S&P 500 +18.6% YTD
Nasdaq Composite +16.8% YTD
Russell 2000 +13.8% YTD
Dow Jones Industrial Average +13.7% YTD
Crude futures settle at $74 per barrel
24-Sep-21 15:30 ET
Dow +58.12 at 34822.94, Nasdaq -6.36 at 15045.88, S&P +8.48 at 4457.46
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34258.32 +338.48 (1.00%)
Nasdaq 14896.84 +150.45 (1.02%)
SP 500 4395.64 +41.45 (0.95%)
10-yr Note +1/32 1.314
NYSE Adv 2608 Dec 648 Vol 875.6 mln
Nasdaq Adv 2848 Dec 1237 Vol 4.2 bln
Industry Watch
Strong: Energy, Financials, Industrials, Materials
Weak: Communication Services
Moving the Market
-- Stocks react positively to FOMC statement
-- Volatility during Powell speech
-- Evergrande says it reached private deal to settle one of its debt payments due Thursday
Market closes with decent gains, even as Fed leans less dovish
22-Sep-21 16:20 ET
Dow +338.48 at 34258.32, Nasdaq +150.45 at 14896.84, S&P +41.45 at 4395.64
[BRIEFING.COM] The S&P 500 (+1.0%), Dow Jones Industrial Average (+1.0%), and Nasdaq Composite (+1.0%) each closed higher by 1.0% on Wednesday, as investors digested some less-dovish Fed news reasonably well. The Russell 2000 outperformed with a 1.5% gain.
Six of the 11 S&P 500 sectors rose at least 1.0%, including the energy sector (+3.2%) with a 3% gain and the information technology sector (+1.4%) with an influential 1.4% gain. The utilities (-0.1%) and communication services (-0.01%) sectors were the only sectors that closed lower.
Most of these gains were registered before the FOMC statement was released at 2:00 p.m. ET amid easing Evergrande concerns and dovish-oriented expectations for the Fed.
The FOMC left the target range for the fed funds rate unchanged at 0.00-0.25% and said tapering the rate of asset purchases may soon be warranted if progress on the economy continues broadly as expected. Interestingly, the Fed's median estimate for a rate hike moved up to 2022, versus a prior median estimate of no change through 2022.
Fed Chair Powell suggested that a decent September employment report would be enough for him to think tapering could start in November, which would then conclude around the middle of next year. Separately, Mr. Powell relegated Evergrande to a China-specific issue and urged Congress to raise the debt ceiling to avoid risking severe damage to the economy and financial markets.
Aside from the interest-rate projection, and acknowledging that inflation pressures could remain elevated longer than anticipated, there weren't that many big surprises today. There was the typical post-FOMC volatility, but the market seemed to appreciate the guidance from the Fed chair regarding a taper timeline.
Shorter-dated Treasuries saw increased selling pressure following the policy directive. The 2-yr yield increased three basis points to 0.24% while the 10-yr yield increased one basis point to 1.34%. The U.S. Dollar Index increased 0.3% to 93.43. WTI crude futures increased 2.5%, or $1.75, to $72.26/bbl.
In the corporate space, Facebook (FB 343.21, -14.27, -4.0%), Adobe (ADBE 626.08, -19.81, -3.1%), and FedEx (FDX 229.08, -22.99, -9.1%) were notable laggards today.
Facebook commented on IOS-related headwinds and said it's been underreporting ad performance by about 15% for web conversions on IOS due to privacy changes. Adobe fell despite beating EPS estimates and issuing upside Q4 guidance. FedEx missed EPS estimates and lowered its FY22 EPS guidance.
Reviewing Wednesday's economic data:
Existing home sales decreased 2.0% m/m in August to a seasonally adjusted annual rate of 5.88 million (Briefing.com consensus 5.86 million) from an upwardly revised 6.00 million (from 5.99 million) in July. Total sales in August were down 1.5% from a year ago.
In economic data:
The key takeaway from the report is that the supply of existing homes for sale is tight, particularly at more affordable price points. That is driving up the pace of price increases well beyond the pace of income growth, which is creating affordability pressures for prospective buyers and crimping overall sales activity.
The weekly MBA Mortgage Applications Index rose 4.9% following a 0.3% increase in the prior week.
Looking ahead, investors will receive weekly Initial and Continuing Claims, the Conference Board's Leading Economic Index for August, and the preliminary Markit Manufacturing/Services PMIs for September on Thursday.
S&P 500 +17.0% YTD
Nasdaq Composite +15.6% YTD
Dow Jones Industrial Average +11.9% YTD
Russell 2000 +12.3% YTD
Crude futures settle sharply higher
22-Sep-21 15:30 ET
Dow +440.48 at 34360.32, Nasdaq +185.16 at 14931.55, S&P +53.82 at 4408.01
[BRIEFING.COM] The S&P 500 is trading back near session highs with a 1.3% gain. The Russell 2000 is up 1.7%.
One last look at the S&P 500 sectors shows green across the board. The energy sector (+3.8%) leads with a 4% gain while the utilities sector (+0.1%) clings onto a slim 0.1% gain.
WTI crude futures settled higher by 2.5%, or $1.75, to $72.26/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 33919.84 -50.63 (-0.15%)
Nasdaq 14746.39 +32.49 (0.22%)
SP 500 4354.19 -3.54 (-0.08%)
10-yr Note -1/32 1.317
NYSE Adv 1739 Dec 1451 Vol 907.0 mln
Nasdaq Adv 2349 Dec 1873 Vol 4.0 bln
Industry Watch
Strong: Energy, Real Estate, Information Technology
Weak: Industrials, Utilities
Moving the Market
-- Rebound bid sees volatility
-- Growth stocks outperform
-- Lingering skepticism due to ongoing uncertainty surrounding Evergrande, infrastructure, and debt ceiling
Stock market closes little changed ahead of Fed day
21-Sep-21 16:20 ET
Dow -50.63 at 33919.84, Nasdaq +32.49 at 14746.39, S&P -3.54 at 4354.19
[BRIEFING.COM] The S&P 500 decreased 0.1% on Tuesday in an uneven session, which saw the benchmark index up as much as 0.9% in early action and down as much as 0.2% shortly afterwards. The Dow Jones Industrial Average (-0.2%) also closed slightly lower, while the Nasdaq Composite (+0.2%) and Russell 2000 (+0.2%) closed slightly higher.
Sector performances were equally underwhelming with no sector gaining or losing more than 1.0%. The energy sector outperformed with a 0.4% gain, while the industrials sector underperformed with a 0.7% decline. The communication services sector (-0.3%) was pressured by Walt Disney (DIS 171.17, -7.44, -4.2%), which provided cautious-sounding business commentary.
Overall buying interest might have been restrained due to a wait-and-see mindset for the FOMC policy announcement tomorrow. There was, however, a preference for growth stocks, as investors presumably wanted to buy the dip in areas less reliant on the economy due to the uncertainty surrounding China's Evergrande, infrastructure, and the debt ceiling.
The Russell 1000 Growth Index increased 0.2%, while the Russell 1000 Value Index decreased 0.3%.
In other corporate news, Johnson & Johnson (JNJ 164.53, +0.72, +0.4%) said its booster shot at two months provided 94% protection against COVID-19 in the U.S. Uber (UBER 44.36, +4.57, +11.5%) jumped 11.5% after upwardly revising Q3 guidance, and AutoZone (AZO 1643.07, +57.91, +3.7%) beat top and bottom-line estimates.
In M&A activity, ConocoPhillips (COP 59.33, +2.26, +4.0%) agreed to acquire Royal Dutch Shell's Permian Business for $9.5 billion in cash. U.S. Bancorp (USB 57.10, +1.42, +2.6%) agreed to acquire MUFG Union Bank for $8 billion in cash and stock. DraftKings (DKNG 52.77, -4.23, -7.4%) proposed to acquire Entain (GMVHY) for $20 billion in cash and stock.
Separately, housing starts and building permits data for August beat expectations, but that was largely due to multi-family units instead of single-family units. The Treasury market barely reacted to the report and traded in a tight range in front of the Fed tomorrow.
The 10-yr yield increased two basis point to 1.32% while the 2-yr yield decreased one basis point to 0.21%. The U.S. Dollar Index decreased 0.1% to 93.22. WTI crude futures increased 0.2%, or $0.16, to $70.51/bbl.
Reviewing Tuesday's economic data:
Total housing starts increased 3.9% month-over-month in August to a seasonally adjusted annual rate of 1.615 million (Briefing.com consensus 1.560 million) while permits rose 6.0% to a seasonally adjusted annual rate of 1.728 million (Briefing.com consensus 1.600 million).
The key takeaway from the report -- and why it isn't as pleasing as the headlines suggest-- is that the upside surprise was driven almost entirely by multi-family units. To wit, single-family starts declined 2.8% month-over-month while permits for single units were up just 0.6%.
The current account deficit for the second quarter totaled $190.3 billion. The first quarter deficit was downwardly revised to $189.4 billion from $195.7 billion.
Looking ahead, investors will receive the FOMC Rate Decision, Existing Home Sales for August, and the weekly MBA Mortgage Applications Index on Wednesday.
S&P 500 +15.9% YTD
Nasdaq Composite +14.4% YTD
Dow Jones Industrial Average +10.8% YTD
Russell 2000 +10.7% YTD
Crude futures settle slightly higher
21-Sep-21 15:30 ET
Dow +84.89 at 34055.36, Nasdaq +94.25 at 14808.15, S&P +14.75 at 4372.48
[BRIEFING.COM] The S&P 500 continues to trade slightly higher by 0.3% while the Russell 2000 trades higher by 0.5%.
One last look at the sector standings shows energy (+1.0%), real estate (+0.7%), and health care (+0.5%) outperforming the benchmark index, while the industrials sector (-0.4%) remains the only sector trading lower.
WTI crude futures settled higher by 0.2%, or $0.16, to $70.51/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 33970.47 -614.41 (-1.78%)
Nasdaq 14713.90 -330.06 (-2.19%)
SP 500 4357.73 -75.26 (-1.70%)
10-yr Note +27/32 1.313
NYSE Adv 523 Dec 2707 Vol 1.1 bln
Nasdaq Adv 813 Dec 3263 Vol 4.8 bln
Industry Watch
Strong: Utilities
Weak: Energy, Financials, Materials, Information Technology
Moving the Market
-- Major indices decline more than 1.5%
-- Concerns over China's Evergrande, debt ceiling, infrastructure, deteriorating technical factors
-- Late-day buying efforts pare market losses
Market closes sharply lower amid host of concerns
20-Sep-21 16:20 ET
Dow -614.41 at 33970.47, Nasdaq -330.06 at 14713.90, S&P -75.26 at 4357.73
[BRIEFING.COM] The stock market was down around 3% on Monday, as investors worried about a host of issues involving China's Evergrande, the debt ceiling, infrastructure, and deteriorating technical factors. Buyers stepped in late, though, leaving the major indices well off session lows.
The S&P 500 (-1.7%) and Dow Jones Industrial Average (-1.8%) lost a little more than 1.5%, while the Nasdaq Composite (-2.2%) and Russell 2000 (-2.4%) still declined more than 2.0%. Each index closed below its 50-day moving average, with the Russell 2000 also closing below its 200-day moving average (2203).
The weakness started in Hong Kong on reports that Evergrande -- one of China's largest property developers -- is on the brink of defaulting on its $300 billion in debt. Hong Kong's Hang Seng index dropped 3.3% on Monday while markets in China, Japan, and South Korea were closed for holidays.
Selling interest spread to Europe, as well as the U.S. futures market, amid contagion fears and general uncertainty. Further pressuring risk sentiment were media reports that discussed the loose ends in Washington that still need to be tied: funding the government, raising/suspending the debt ceiling, and settling differences on infrastructure.
There was a dearth of buying interest for most of the session, which left all 11 S&P 500 sectors in the red on a closing basis with losses ranging from 0.2% (utilities) to 3.0% (energy). At one point, declining issues had a 9:1 advantage over advancing issues at the NYSE. That margin, however, decreased to 5:1 by the close on no specific news.
Interestingly, selling pressure abated soon after the S&P 500 was down 5% from its all-time high, which was the first 5% drawdown in the benchmark index in almost 11 months.
Notwithstanding the encouraging finish, investors sought safety in longer-dated Treasuries and hedged against further equity weakness: the 10-yr yield fell six basis points to 1.31% while the CBOE Volatility Index (25.71, +4.90, +23.6%) closed above 25.00.
Separately, Pfizer (PFE 44.25, +0.36, +0.8%) announced its COVID-19 vaccine is safe and effective for children 5-11 years old, as suggested from a Phase 2/3 trial. On a related note, an FDA advisory panel recommended the FDA grant Emergency Use Authorization for a booster dose in individuals aged 65 or older and individuals at high risk of severe disease.
The 2-yr yield decreased one basis point to 0.22%. The U.S. Dollar Index was little changed at 93.23. WTI crude futures declined 2.2%, or $1.57, to $70.35/bbl.
Monday's economic data was limited to the NAHB Housing Market Index increased to 76.0 in September (Briefing.com consensus 74.0) from 75.0 in August. Looking ahead, investors will receive Housing Starts and Building Permits for August and the Current Account Balance for the second quarter on Tuesday.
S&P 500 +16.0% YTD
Nasdaq Composite +14.2% YTD
Dow Jones Industrial Average +11.0% YTD
Russell 2000 +10.5% YTD
Crude futures settle lower by 2% amid de-risking efforts
20-Sep-21 15:30 ET
Dow -845.94 at 33738.94, Nasdaq -457.57 at 14586.39, S&P -109.77 at 4323.22
[BRIEFING.COM] The S&P 500 is down 2.6% to trade near session lows. The Russell 2000 is down 3.5%.
One last look at the sector performances shows utilities (-1.0%) joining the other sectors in the red after spending a bulk of the day in positive territory. The energy sector is the weakest link with a 4% decline.
WTI crude futures settled lower by 2.2%, or $1.57, to $70.35/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34584.88 -166.44 (-0.48%)
Nasdaq 15043.96 -137.96 (-0.91%)
SP 500 4432.99 -40.76 (-0.91%)
10-yr Note -26/32 1.376
NYSE Adv 1148 Dec 2016 Vol 3.3 bln
Nasdaq Adv 2141 Dec 1946 Vol 6.5 bln
Industry Watch
Strong: Health Care
Weak: Information Technology, Materials, Utilities, Communication Services, Industrials
Moving the Market
-- Downside momentum, risk aversion, cash-raising efforts
-- Negative-sounding headlines
-- S&P 500 closes below 50-day moving average (4436)
-- Consumer sentiment report for August misses expectations by a small margin
-- Weakness in semiconductor space amid analyst downgrades
S&P 500 closes below key technical level
17-Sep-21 16:20 ET
Dow -166.44 at 34584.88, Nasdaq -137.96 at 15043.96, S&P -40.76 at 4432.99
[BRIEFING.COM] The S&P 500 fell 0.9% on Friday, as investors digested some negative-sounding headlines and hedged for further weakness. The Nasdaq Composite declined 0.9%, and the Dow Jones Industrial Average declined 0.5%. The Russell 2000, however, increased 0.2% amid the quadruple witching-options expiration activity into the close.
Ten of the 11 S&P 500 sectors closed lower, with the materials (-2.1%), information technology (-1.5%), utilities (-1.6%), communication services (-1.3%), and industrials (-1.1%) sectors losing more than 1.0%. The health care sector (+0.1%) was saved by Thermo Fisher (TMO 596.80, +36.36, +6.5%), which provided upbeat FY22 EPS guidance.
Risk sentiment seemed to be partially influenced by news that President Biden was unable to get Senator Manchin (D-WV) on board with the $3.5 trillion infrastructure plan, a warning from the White House that not increasing the debt limit could cause a recession, and the FDA advisory committee voting against Pfizer's (PFE 43.88, -0.59, -1.3%) COVID-19 booster vaccine for people 16 and older.
While none of the news was viewed as surprising, they presumably reminded investors about some of the growth-oriented headwinds the market is facing. The S&P 500 breached support at its 50-day moving average (4436) on a closing basis.
The tech sector weighed on the market amid weakness in its top-weighted components and the semiconductor stocks. BofA Securities downgraded both Cree (CREE 85.70, -2.60, -2.9%) and Cirrus Logic (CRUS 84.73, -3.45, -3.9%) to Underperform from Neutral. The Philadelphia Semiconductor Index declined 1.5%.
Separately, the consumer sentiment report showed a smaller-than-expected gain following last month's shocking decline. The preliminary September reading for the University of Michigan Index of Consumer Sentiment increased to 71.0 (Briefing.com consensus 72.0) from 70.3 in August.
The negative backdrop seemed to provoke some cash-raising efforts. The U.S. Dollar Index rose 0.3% to 93.21 while the 10-yr yield increased four basis points to 1.37% amid increased selling interest. The CBOE Volatility Index (20.81, +2.12, +11.3%) closed above the 20.00 level.
The 2-yr yield was unchanged at 0.23%. WTI crude futures decreased 1.0%, or $0.70, to $71.92/bbl.
Reviewing Friday's economic data:
The preliminary September reading for the University of Michigan Index of Consumer Sentiment increased to 71.0 (Briefing.com consensus 72.0) from the final reading of 70.3 for August.
The key takeaway from the report is the recognition that high prices have led to a decline in assessments of buying conditions for homes, vehicles, and household durables. That could lead to slower spending activity in the future if consumers hold off on purchases either because they think prices will come down if they wait longer or if they resist paying persistently high prices altogether in the absence of offsetting income gains.
Looking ahead, investors will receive the NAHB Housing Market Index for September on Monday.
S&P 500 +18.0% YTD
Nasdaq Composite +16.7% YTD
Dow Jones Industrial Average +16.0% YTD
Russell 2000 +13.3% YTD
Crude futures settle lower by 1%
17-Sep-21 15:30 ET
Dow -177.69 at 34573.63, Nasdaq -156.84 at 15025.08, S&P -40.22 at 4433.53
[BRIEFING.COM] The S&P 500 is down 0.9% while the Russell 2000 trades lower by 0.4%.
One last look at the sector standings shows losses across the board. The materials sector (-2.0%) is the weakest link with a 2% decline while the health care sector (-0.2%) outperforms on a relative basis with a 0.2% decline.
WTI crude futures settled lower by 1.0%, or $0.70, to $71.92/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34814.13 +236.56 (0.68%)
Nasdaq 15161.53 +123.77 (0.82%)
SP 500 4480.88 +37.83 (0.85%)
10-yr Note -2/32 1.315
NYSE Adv 2244 Dec 981 Vol 962.5 mln
Nasdaq Adv 2726 Dec 1582 Vol 4.4 bln
Industry Watch
Strong: Energy, Financials, Industrials, Materials
Weak: Utilities
Moving the Market
-- Market rebounds modestly from recent losses
-- Value stocks had the performance edge over growth stocks
-- S&P 500 respects 50-day moving average (4432)
Market shows up with a good rebound
15-Sep-21 16:20 ET
Dow +236.56 at 34814.13, Nasdaq +123.77 at 15161.53, S&P +37.83 at 4480.88
[BRIEFING.COM] The stock market had a good day on Wednesday, rebounding modestly from recent losses. The S&P 500 (+0.9%), Nasdaq Composite (+0.8%), and Dow Jones Industrial Average (+0.7%) rose between 0.7-0.9% while the Russell 2000 gained 1.1%.
Value stocks were early leaders, as investors digested upwards momentum in energy prices; a huge upside surprise in the Empire State Manufacturing Survey for September, which checked in at 34.3 (Briefing.com consensus 18.6); and industrial production data for August that increased in-line with expectations.
The latter was well received because China reported industrial production data for August (along with retail sales and fixed asset investment data) that missed expectations. The gains broadened out to the mega-caps/growth stocks later in the day on no news, helping the S&P 500 distance itself from its 50-day moving average (4432).
Ten of the 11 S&P 500 sectors ended the session in positive territory, led by the cyclical energy (+3.8%), industrials (+1.1%), materials (+1.1%), and financials (+0.9%) sectors. The utilities sector (-0.2%) closed slightly lower.
Microsoft (MSFT 304.82, +5.03, +1.7%) was a positive force today after the company approved a new $60 billion share repurchase program and raised its dividend by 11%.
Highlighting the developments in the energy space, the EIA reported a larger-than-expected draw in weekly crude inventories (6.42 million), WTI crude futures settled above $72 per barrel ($72.52/bbl, +2.06, +2.9%), and JPMorgan downgraded Chevron (CVX 98.24, +2.04, +2.1%) to Neutral from Overweight with a $111 price target.
In other corporate news, Goldman Sachs (GS 401.95, -1.74, -0.4%) augmented its consumer business with an acquisition of GreenSky (GSKY 11.90, +4.13, +53.2%) for $2.24 billion, or $12.11/share, in stock. Wynn Resorts (WYNN 86.44, -4.81, -6.3%) fell 6% amid reports that China wants to tighten regulation on the gaming industry in Macao.
Longer-dated Treasury yields finished slightly higher, with selling interest picking up following the release of the industrial production report. The 10-yr yield settled higher by three basis points to 1.30% while the 2-yr yield remained unchanged at 0.21%. The U.S. Dollar Index decreased 0.2% to 92.48.
Reviewing Wednesday's economic data:
Total industrial production increased 0.4% in August (Briefing.com consensus 0.4%) following a downwardly revised 0.8% increase in July (from 0.9%). The capacity utilization rate increased to 76.4% (Briefing.com consensus 76.3%) from an upwardly revised 76.2% in July (from 76.1%).
The key takeaway from the report is that it showed industrial production finally eclipsed its pre-pandemic level; and it also showed industrial production was even stronger in August than meets the eye, registering a gain despite the impact of Hurricane Ida and ongoing semiconductor shortages.
The Empire State Manufacturing Survey increased to 34.3 in September (Briefing.com consensus 18.6) from 18.3 in August.
Import prices decreased 0.3% in August after increasing a revised 0.4% (from 0.3%) in July. Excluding oil, import prices decreased 0.1% after increasing a revised 0.1% (from 0.0%) in July.
Export prices rose 0.4% after increasing a revised 1.1% (from 1.3%) in July. Excluding agriculture, export prices rose 0.2% after increasing a revised 1.4% (from 1.6%) in July.
The weekly MBA Mortgage Applications Index increased 0.3% following a 1.9% decline in the prior week.
Looking ahead, investors will receive Retail Sales for August, the weekly Initial and Continuing Claims report, the Philadelphia Fed Index for September, and Business Inventories for July on Thursday.
S&P 500 +19.3% YTD
Nasdaq Composite +17.6% YTD
Dow Jones Industrial Average +13.8% YTD
Russell 2000 +13.1% YTD
Crude futures rise 3%
15-Sep-21 15:30 ET
Dow +250.62 at 34828.19, Nasdaq +125.71 at 15163.47, S&P +39.14 at 4482.19
[BRIEFING.COM] The S&P 500 is up 0.9% to trade at session highs in a relatively broad-based advance.
Ten of the 11 S&P 500 sectors are trading higher, none more so than the energy sector with a 3.8% gain amid higher energy prices. The financials (+1.1%) and industrials (+1.1%) sectors are still up more than 1.0%. The utilities sector (-0.1%) is the only sector trading lower.
WTI crude futures settled higher by 2.9%, or $2.06, to $72.52/bbl. On a related note, weekly crude oil inventories decreased by 6.42 mln barrels after decreasing by 1.53 mln barrels during the previous week.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34869.63 +261.91 (0.76%)
Nasdaq 15105.58 -9.91 (-0.07%)
SP 500 4468.73 +10.15 (0.23%)
10-yr Note +2/32 1.322
NYSE Adv 1998 Dec 1226 Vol 850.6 mln
Nasdaq Adv 2155 Dec 2096 Vol 4.6 bln
Industry Watch
Strong: Energy, Financials, Real Estate
Weak: Health Care, Utilities, Materials
Moving the Market
-- S&P 500 snaps losing streak with modest gain
-- Lack of trading conviction
-- Strength in the energy and financials sectors
S&P 500 snaps losing streak with modest gain
13-Sep-21 16:15 ET
Dow +261.91 at 34869.63, Nasdaq -9.91 at 15105.58, S&P +10.15 at 4468.73
[BRIEFING.COM] The S&P 500 snapped a five-session losing streak on Monday with a 0.2% gain, although it closed well off session highs. The Nasdaq Composite decreased 0.1%, while the Dow Jones Industrial Average (+0.8%) and Russell 2000 (+0.6%) outperformed amid strength in energy and financial stocks.
Shortly after the open, the S&P 500 was up as much as 0.8% amid gains across all 11 sectors (the Nasdaq was up 0.7%). The positive start was attributed to buy-the-dip efforts and some positive-minded analyst coverage on the mega-cap stocks.
The benchmark index softened up on no specific news catalyst and traded sideways for most of the day, until a modest bump into the close. Eight of the 11 S&P 500 sectors ended the session in positive territory, led by energy (+2.9%) and financials (+1.1%) with 3% and 1% gains, respectively.
Energy stocks outpaced the rise in WTI crude futures, which settled above $70 per barrel ($70.47/bbl, +0.72, +1.0%). Bank stocks showed strength despite some minor curve-flattening activity. The 10-yr yield decreased two basis points to 1.32% while the 2-yr yield was unchanged at 0.21%. The U.S. Dollar Index increased 0.1% to 92.64.
The health care sector (-0.6%) was today's laggard as investors digested a report published in The Lancet about COVID-19 booster shots. Briefly, a group of international scientists said current evidence doesn't appear to show a need for the general population to receive a booster.
Shares of Pfizer (PFE 44.58, 1.01, -2.2%) fell 2.2% while shares of Moderna (MRNA 419.72, -29.66, -6.6%) fell 6.6%.
Highlighting today's notable analyst recommendations, Goldman Sachs initiated coverage on Amazon.com (AMZN 3457.17, -11.98, -0.4%), Alphabet (GOOG 2869.30, +20.88, +1.1%), and Facebook (FB 376.51, -2.18, -0.6%) with Buy ratings. Only Alphabet keyed off the recommendation, though.
Nike (NKE 159.52, -4.07, -2.5%) was downgraded to Neutral from Buy at BTIG due to challenging supply dynamics. On a related note, 3M (MMM 185.23, +0.68, +0.4%) said inflation has been higher than previously thought in the third quarter and that raw material costs are its biggest supply issue.
Reviewing Monday's economic data:
The Treasury Budget for August showed a $170.64 bln deficit in August, versus a $200.01 bln deficit in the same period a year ago. The budget data is not seasonally adjusted, so the August deficit cannot be compared to the July deficit of $302.05 bln. August marked the 23rd consecutive month that the Treasury has seen a budget deficit.
The fiscal year-to-date budget deficit is $2.71 trln versus a deficit of $3.01 trln for the same period a year ago.
Looking ahead, investors will receive the Consumer Price Index for August and the NFIB Small Business Optimism Survey for August on Tuesday.
S&P 500 +19.0% YTD
Nasdaq Composite +17.2% YTD
Dow Jones Industrial Average +13.9% YTD
Russell 2000 +13.5% YTD
Crude futures settle above $70 per barrel
13-Sep-21 15:30 ET
Dow +195.21 at 34802.93, Nasdaq -33.47 at 15082.02, S&P +1.22 at 4459.80
[BRIEFING.COM] The S&P 500 is trading flat and is trying to avoid a sixth straight loss.
One last look at the sector performances shows energy (+2.6%) way in the lead with a 2.6% gain, followed by the financials sector (+0.8%). The health care sector (-0.8%) remains the laggard with a 0.8% decline.
WTI crude futures settled higher by 1.0%, or $0.72, to $70.47/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34607.72 -271.66 (-0.78%)
Nasdaq 15115.49 -132.76 (-0.87%)
SP 500 4458.58 -34.70 (-0.77%)
10-yr Note -2/32 1.328
NYSE Adv 1175 Dec 2013 Vol 776.0 bln
Nasdaq Adv 1440 Dec 2818 Vol 4.5 bln
Industry Watch
Strong: Materials, Energy
Weak: Utilities, Real Estate, Information Technology
Moving the Market
-- Major indices fade positive open and close at session lows with about 1% declines
-- Court rules against Apple (AAPL) on developer issue versus Epic Games
-- PPI data for August remained hot
Apple leads market lower on court ruling
10-Sep-21 16:20 ET
Dow -271.66 at 34607.72, Nasdaq -132.76 at 15115.49, S&P -34.70 at 4458.58
[BRIEFING.COM] The major indices lost about 1% on Friday, as the market faded a positive open and investors digested a mixed court ruling on Apple (AAPL 148.97, -5.10, -3.3%) versus Epic Games. The S&P 500 (-0.8%), Dow Jones Industrial Average (-0.8%), Nasdaq Composite (-0.9%), and Russell 2000 (-1.0%) closed at session lows.
The early index gains ranged between 0.6-0.7% in a buy-the-dip effort, but that quickly unraveled on no specific news. Late in the morning, a court ruled that Apple must give developers the ability to create their own payment options. In Apple's favor, the judge said the company isn't an antitrust monopolist in the submarket for mobile gaming transactions.
Shares of Apple subsequently fell 3%, and shares of Alphabet (GOOG 2838.42, -59.85, -2.1%) fell in sympathy given it owns the Google Play store.
The information technology (-1.0%) and communication services (-0.9%) sectors, which are home to AAPL and GOOG, underperformed along with the utilities (-1.4%) and real estate (-1.2%) sectors. No sectors finished higher, as selling accelerated into the close on no news.
Presumably, the inability to hold onto rebound gains fueled concerns about further equity weakness with the loss in price momentum. The benchmark index extended its losing streak to five sessions. The CBOE Volatility Index (20.89, +2.09, +11.1%) jumped above 20.00.
Another hot Producer Price Index report didn't appear to affect stocks all that much, but the Treasury was under some selling pressure because of it. Briefly, producer prices for final demand were up 0.7% m/m in August (Briefing.com consensus 0.6%), leaving them up 8.3% yr/yr, while core prices were up 6.7% yr/yr.
The 10-yr yield increased four basis points to 1.34% while the 2-yr yield was unchanged at 0.21%. The U.S. Dollar Index increased 0.2% to 92.62. WTI crude futures rose 2.3%, or $1.57, to $69.75/bbl.
In earnings news, shares of Affirm (AFRM 123.70, +31.64, +34.4%) soared about 35% after the company reported better-than-expected results and issued upbeat revenue guidance. Kroger (KR 42.67, -3.46, -7.5%), on the other hand, dropped 7.5% as rising costs pressured margins.
Reviewing Friday's economic data:
The Producer Price Index for final demand increased 0.7% month-over-month in August (Briefing.com consensus 0.6%) after increasing 1.0% in July. The index for final demand, less foods and energy, increased 0.6% month-over-month (Briefing.com consensus 0.6%) after increasing 1.0% in July. On a year-over-year basis, the Producer Price Index for final demand was up 8.3% on an unadjusted basis, versus 7.8% in July. That has lifted the index past its record increase from last month. The index for final demand, less foods and energy, was up 6.7% versus 6.2% in July.
The key takeaway from the report is that while the month-over-month change slowed from increases seen in June and July, the year-over-year growth rate in PPI rose to a fresh record.
Wholesale inventories increased 0.6% m/m in July (Briefing.com consensus 0.5%) following a downwardly revised 0.6% increase (+1.1%) in June.
Looking ahead, investors will receive the Treasury Budget for August on Monday.
S&P 500 +18.7% YTD
Nasdaq Composite +17.3% YTD
Dow Jones Industrial Average +13.1% YTD
Russell 2000 +12.8% YTD
Crude futures settle close to $70 per barrel
10-Sep-21 15:30 ET
Dow -145.12 at 34734.26, Nasdaq -83.29 at 15164.96, S&P -18.69 at 4474.59
[BRIEFING.COM] The S&P 500 is trading at session lows with a 0.4% decline. The Russell 2000 is down 0.2%.
One last look at the sector performances shows health care (-0.7%), information technology (-0.7%), communication services (-0.7%), and utilities (-0.7%) each down 0.7%, while the materials (+0.4%) and energy (+0.2%) sectors trade modestly higher.
WTI crude futures settled higher by 2.3%, or $1.57, to $69.75/bbl.
Market Snapshot
https://stockcharts.com/def/servlet/ScanUI
Dow 34879.38 -151.69 (-0.43%)
Nasdaq 15248.25 -38.38 (-0.25%)
SP 500 4493.28 -20.79 (-0.46%)
10-yr Note +4/32 1.301
NYSE Adv 1584 Dec 1628 Vol 790.0 mln
Nasdaq Adv 2266 Dec 1973 Vol 3.9 bln
Industry Watch
Strong: Financials, Energy, Materials
Weak: Real Estate, Health Care, Consumer Staples
Moving the Market
-- Major indices close slightly lower in tired session
-- Confusing price action within the market
-- Weekly initial and continuing claims continued to improve
S&P 500 extends losing streak to four session
09-Sep-21 16:15 ET
Dow -151.69 at 34879.38, Nasdaq -38.38 at 15248.25, S&P -20.79 at 4493.28
[BRIEFING.COM] The S&P 500 (-0.5%), Dow Jones Industrial Average (-0.4%), and Nasdaq Composite (-0.3%) closed near session lows with modest losses on Thursday, while the small-cap Russell 2000 (-0.03%) closed relatively unchanged. This was the fourth straight decline for the S&P 500.
Eight of the 11 S&P 500 sectors finished in negative territory, led lower by the real estate (-2.1%) and health care (-1.2%) sectors with losses over 1.0%. The financials (+0.3%), energy (+0.1%), and materials (+0.1%) sectors bucked the negative trend with modest gains.
Relevant news included continued improvement in the weekly initial and continuing claims report, reduced Q3 outlooks from the airlines, and an ECB announcement that emergency asset purchases could be reduced by a moderate pace. Initial claims set another post-pandemic low at 310,000 (Briefing.com consensus 345,000).
None of it moved the market, though. In fact, the airline stocks rallied on the news, longer-dated Treasuries saw increased demand despite the weekly claims data, and financial stocks outperformed despite the subsequent decline in yields. The U.S. Global Jets ETF (JETS 22.97, +0.43, +1.9%) jumped 2%.
A strong $24 bln 30-year bond auction seemed to have more influence on the Treasury market. The 10-yr yield settled four basis points lower at 1.30% after trading at 1.33% before the results were released at 1:00 p.m. ET. The 2-yr yield declined one basis point to 0.21%. The U.S. Dollar Index decreased 0.2% to 92.50.
In addition, the energy sector finished higher despite weaker oil prices ($68.18/bbl, -1.14, -1.6%). Evidently, there was some confusing price action in the market, which reflected some of the uncertainty market participants have about where the market is headed.
Lululemon athletica (LULU 420.71, +39.86, +10.5%) provided a clear indication of its business, and it was good. LULU shares rose 10.5% to record highs following its earnings report. RH (RH 725.00, +52.35, +7.8%) was another earnings winner while GameStop (GME 199.18, +0.38, +0.2%) overcame an intraday 10% decline following its report.
Separately, Biogen (BIIB 300.15, -21.40, -6.7%) said its Alzheimer's treatment is seeing a slower launch than initially anticipated. Moderna (MRNA 455.92, +33.02, +7.8%) announced significant advances across its portfolio of mRNA pipeline programs. BIIB shares fell nearly 7.0% while MRNA shares rose nearly 8.0%.
Reviewing Thursday's economic data:
Initial claims for the week ending September 4 decreased by 35,000 to 310,000 (Briefing.com consensus 345,000) from last week's revised level of 345,000 (from 340,000). Continuing claims for the week ending August 28 decreased by 22,000 to 2.783 mln from last week's revised level of 2.805 mln (from 2.748 mln).
The key takeaway from the report is that the overall trend is moving in the right direction, albeit at a slow pace.
Looking ahead, investors will receive the Producer Price Index for August and Wholesale Inventories for July on Friday.
S&P 500 +19.6% YTD
Nasdaq Composite +18.3% YTD
Dow Jones Industrial Average +14.0% YTD
Russell 2000 +13.9% YTD
Energy sector trades higher despite lower oil prices
09-Sep-21 15:35 ET
Dow -122.90 at 34908.17, Nasdaq -7.05 at 15279.58, S&P -13.82 at 4500.25
[BRIEFING.COM] The S&P 500 is down 0.4% and on track to close lower for the fourth straight session.
One last look at the sector performances shows health care (-1.0%) and real estate (-1.7%) down at least 1.0% while the financials (+0.4%), energy (+0.2%), and materials (+0.2%) sectors trade slightly higher.
WTI crude futures settled lower by 1.6%, or $1.14, to $68.18/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35031.07 -68.93 (-0.20%)
Nasdaq 15286.63 -87.69 (-0.57%)
SP 500 4514.07 -5.96 (-0.13%)
10-yr Note +23/32 1.355
NYSE Adv 1238 Dec 1992 Vol 810.0 mln
Nasdaq Adv 1390 Dec 2928 Vol 4.1 bln
Industry Watch
Strong: Utilities, Real Estate, Consumer Staples
Weak: Materials, Energy, Information Technology
Moving the Market
-- Risk sentiment pressured by negative-sounding headlines
-- Losses were kept in check as buyers eased their way back into the large-caps
-- Defensive-oriented sectors outperformed
Stock market closes off session lows
08-Sep-21 16:20 ET
Dow -68.93 at 35031.07, Nasdaq -87.69 at 15286.63, S&P -5.96 at 4514.07
[BRIEFING.COM] The major indices closed lower on Wednesday, as investors digested another negative-sounding news cycle. The S&P 500 (-0.1%) and Dow Jones Industrial Average (-0.2%) finished slightly lower, the Nasdaq Composite lost 0.6%, and the Russell 2000 struggled with a 1.1% decline.
Briefly, several companies provided cautious outlooks, Axios reported that Senator Manchin (D-WV) would only support $1.5 trillion for any human infrastructure plan, Treasury Secretary Yellen warned about the economic consequences if lawmakers don't resolve the debt-ceiling issue, and ECB policymaker Holzmann said the central bank could tighten policy sooner than expected.
Looking more closely at the corporate influence, the S&P 500 materials sector (-1.0%) was one of the weakest sectors after Sherwin-Williams (SHW 296.69, -6.15, -2.0%) lowered its Q3 sales guidance due to raw material issues. Homebuilding stocks underperformed after Pulte Group (PHM 49.53, -3.19, -6.1%) said supply chain issues have increased during the second half of the year.
Apple (AAPL 155.11, -1.58, -1.0%), however, was one of the more influential laggards amid profit-taking interest after a record-setting run. AAPL's 1% decline was felt in all three large-cap indices and the information technology sector (-0.4%). The Philadelphia Semiconductor Index (-1.2%) was another weak spot.
Despite all that, the S&P 500 was down just 0.6% at its session low, and buyers gradually eased their way back into the large-caps throughout the afternoon.
Five of the 11 S&P 500 sectors closed higher, with the utilities sector (+1.8%) rising nearly 2.0% as yesterday's defensive bias carried over to today. The consumer staples (+0.8%) and real estate (+0.6%) sectors followed suit with more modest gains.
In the same vein, longer-dated Treasuries saw increased demand amid the negative bias in the major indices and a decent $38 billion 10-yr note auction. The 10-yr yield decreased four basis points to 1.33%, while the 2-yr yield increased one basis point to 0.22%. The U.S. Dollar Index increased 0.2% to 92.71. WTI crude futures rose 1.4%, or $0.92, to $69.32/bbl.
Separately, the Fed's Beige Book indicated that economic growth downshifted slightly to a moderate pace in early July through August due to the Delta variant. Businesses in most Districts remained optimistic about near-term prospects, though. The report was a non-event for the market.
Reviewing Wednesday's economic data:
Consumer credit increased by $17.0 bln in July (Briefing.com consensus $28.0B) after increasing an upwardly revised $37.9 bln (from $37.6 bln) in June.
The key takeaway from the report is that the expansion in consumer credit in July was the sixth straight increase in total outstanding credit and it followed on the heels of the largest increase since December 2010 seen in June.
Job openings increased to a record-high of 10.934 million in July from a revised 10.185 million (from 10.073 million) in June.
The weekly MBA Mortgage Applications Index decreased 1.9% following a 2.4% decline in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report on Thursday.
S&P 500 +20.2% YTD
Nasdaq Composite +18.6% YTD
Russell 2000 +13.9% YTD
Dow Jones Industrial Average +14.5% YTD
Crude futures settle higher, but energy stocks lag
08-Sep-21 15:30 ET
Dow -74.06 at 35025.94, Nasdaq -94.88 at 15279.44, S&P -7.34 at 4512.69
[BRIEFING.COM] The S&P 500 is down 0.2% after being down as much as 0.6% earlier in the day.
One last look at the sector performances shows materials (-1.0%) and energy (-1.0%) underperforming with 1% declines, while the utilities sector (+1.9%) shines with a 2% gain. The top-weighted information technology sector is down 0.5%.
WTI crude futures settled higher by 1.4%, or $0.92, to $69.32/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35100.93 -268.16 (-0.76%)
Nasdaq 15374.32 +10.81 (0.07%)
SP 500 4520.06 -15.37 (-0.34%)
10-yr Note -26/32 1.371
NYSE Adv 1000 Dec 2257 Vol 811.7 mln
Nasdaq Adv 1677 Dec 2716 Vol 3.9 bln
Industry Watch
Strong: Consumer Discretionary, Communication Services, Information Technology
Weak: Industrials, Real Estate, Utilities, Consumer Staples
Moving the Market
-- Nasdaq sets record high in mostly negative session
-- Mega-caps provide key support
-- Longer-dated Treasury yields rise
Nasdaq closes at record high as investors stay faithful to the mega-caps
07-Sep-21 16:15 ET
Dow -268.16 at 35100.93, Nasdaq +10.81 at 15374.32, S&P -15.37 at 4520.06
[BRIEFING.COM] The Nasdaq Composite (+0.1%) eked out intraday and closing record highs on Tuesday, while the S&P 500 (-0.3%), Dow Jones Industrial Average (-0.8%), and Russell 2000 (-0.7%) closed lower, as investors leaned defensively into the mega-cap stocks.
The broader market struggled to attract buying interest, as investors digested reduced Q4 and 2021 GDP forecasts out of Goldman Sachs, the expiration of enhanced unemployment benefits, analyst downgrades to three health care Dow components, and a sell-off in cryptocurrencies that reminded some people about reducing risk.
Declining issues outpaced advancing issues by a 2:1 margin at the NYSE, the Invesco S&P 500 Equal Weight ETF (RSP 155.57, -1.31, -0.8%) declined 0.8%, and eight of the 11 S&P 500 sectors closed in negative territory. The industrials (-1.8%), utilities (-1.4%), and real estate (-1.1%) sectors lost more than 1.0%.
In the health care space, Johnson & Johnson (JNJ 172.32, -2.72, -1.6%), Merck (MRK 75.98, -1.28, -1.7%), and Amgen (AMGN 221.34, -5.03, -2.2%) were downgraded to Equal-Weight from Overweight at Morgan Stanley.
The decline in the S&P 500, however, was mitigated by the continued strength in the mega-caps. Apple (AAPL 156.69, +2.39, +1.6%) and Netflix (NFLX 606.71, +16.18, +2.7%) both set record highs, with NFLX receiving a Street-high, price-target increase ($780) at Atlantic Equities. The Vanguard Mega Cap Growth ETF (MGK 250.40, +0.72) advanced 0.3%.
The mega-caps lifted the S&P 500 information technology (+0.03%), consumer discretionary (+0.4%), and communication services (+0.5%) sectors into positive territory.
Interestingly, better-than-expected import and export data out of China for August was drowned out by the negative-sounding headlines and negative price action. Prices for oil ($68.40/bbl, -0.84, -1.2%) and copper ($4.28, -0.06, -1.3%) both declined more than 1.0%.
Longer-dated Treasury yields did rise, but the advance was attributed to speculation that the European Central Bank could announce a reduction to its asset purchases on Thursday when it concludes its policy meeting.
The 10-yr yield increased five basis points to 1.37% while the 2-yr yield increased one basis point to 0.21%. The U.S. Dollar Index advanced 0.6% to 92.55, which was another example of the defensive mindset in the market.
Investors did not receive any economic data on Tuesday. Looking ahead, investors will receive Consumer Credit for July, the Fed's Beige Book for September, the JOLTs report for July, and the weekly MBA Mortgage Applications Index on Wednesday.
S&P 500 +20.3% YTD
Nasdaq Composite +19.3% YTD
Russell 2000 +15.2% YTD
Dow Jones Industrial Average +14.7% YTD
Crude futures settle lower
07-Sep-21 15:25 ET
Dow -236.32 at 35132.77, Nasdaq +24.03 at 15387.54, S&P -10.78 at 4524.65
[BRIEFING.COM] The S&P 500 is down 0.2% while the Nasdaq (+0.2%) is on pace to close at a record high.
One last look at the sectors shows consumer discretionary (+0.6%), communication services (+0.5%), and information technology (+0.1%) still trading higher, while industrials (-1.5%), real estate (-1.2%), and utilities (-1.1%) are down more than 1.0%.
WTI crude futures settled lower by 1.2%, or $0.84, to $68.40/bbl amid lingering demand concerns.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35100.93 -268.16 (-0.76%)
Nasdaq 15374.32 +10.81 (0.07%)
SP 500 4520.06 -15.37 (-0.34%)
10-yr Note -26/32 1.371
NYSE Adv 1000 Dec 2257 Vol 811.7 mln
Nasdaq Adv 1677 Dec 2716 Vol 3.9 bln
Industry Watch
Strong: Consumer Discretionary, Communication Services, Information Technology
Weak: Industrials, Real Estate, Utilities, Consumer Staples
Moving the Market
-- Nasdaq sets record high in mostly negative session
-- Mega-caps provide key support
-- Longer-dated Treasury yields rise
Nasdaq closes at record high as investors stay faithful to the mega-caps
07-Sep-21 16:15 ET
Dow -268.16 at 35100.93, Nasdaq +10.81 at 15374.32, S&P -15.37 at 4520.06
[BRIEFING.COM] The Nasdaq Composite (+0.1%) eked out intraday and closing record highs on Tuesday, while the S&P 500 (-0.3%), Dow Jones Industrial Average (-0.8%), and Russell 2000 (-0.7%) closed lower, as investors leaned defensively into the mega-cap stocks.
The broader market struggled to attract buying interest, as investors digested reduced Q4 and 2021 GDP forecasts out of Goldman Sachs, the expiration of enhanced unemployment benefits, analyst downgrades to three health care Dow components, and a sell-off in cryptocurrencies that reminded some people about reducing risk.
Declining issues outpaced advancing issues by a 2:1 margin at the NYSE, the Invesco S&P 500 Equal Weight ETF (RSP 155.57, -1.31, -0.8%) declined 0.8%, and eight of the 11 S&P 500 sectors closed in negative territory. The industrials (-1.8%), utilities (-1.4%), and real estate (-1.1%) sectors lost more than 1.0%.
In the health care space, Johnson & Johnson (JNJ 172.32, -2.72, -1.6%), Merck (MRK 75.98, -1.28, -1.7%), and Amgen (AMGN 221.34, -5.03, -2.2%) were downgraded to Equal-Weight from Overweight at Morgan Stanley.
The decline in the S&P 500, however, was mitigated by the continued strength in the mega-caps. Apple (AAPL 156.69, +2.39, +1.6%) and Netflix (NFLX 606.71, +16.18, +2.7%) both set record highs, with NFLX receiving a Street-high, price-target increase ($780) at Atlantic Equities. The Vanguard Mega Cap Growth ETF (MGK 250.40, +0.72) advanced 0.3%.
The mega-caps lifted the S&P 500 information technology (+0.03%), consumer discretionary (+0.4%), and communication services (+0.5%) sectors into positive territory.
Interestingly, better-than-expected import and export data out of China for August was drowned out by the negative-sounding headlines and negative price action. Prices for oil ($68.40/bbl, -0.84, -1.2%) and copper ($4.28, -0.06, -1.3%) both declined more than 1.0%.
Longer-dated Treasury yields did rise, but the advance was attributed to speculation that the European Central Bank could announce a reduction to its asset purchases on Thursday when it concludes its policy meeting.
The 10-yr yield increased five basis points to 1.37% while the 2-yr yield increased one basis point to 0.21%. The U.S. Dollar Index advanced 0.6% to 92.55, which was another example of the defensive mindset in the market.
Investors did not receive any economic data on Tuesday. Looking ahead, investors will receive Consumer Credit for July, the Fed's Beige Book for September, the JOLTs report for July, and the weekly MBA Mortgage Applications Index on Wednesday.
S&P 500 +20.3% YTD
Nasdaq Composite +19.3% YTD
Russell 2000 +15.2% YTD
Dow Jones Industrial Average +14.7% YTD
Crude futures settle lower
07-Sep-21 15:25 ET
Dow -236.32 at 35132.77, Nasdaq +24.03 at 15387.54, S&P -10.78 at 4524.65
[BRIEFING.COM] The S&P 500 is down 0.2% while the Nasdaq (+0.2%) is on pace to close at a record high.
One last look at the sectors shows consumer discretionary (+0.6%), communication services (+0.5%), and information technology (+0.1%) still trading higher, while industrials (-1.5%), real estate (-1.2%), and utilities (-1.1%) are down more than 1.0%.
WTI crude futures settled lower by 1.2%, or $0.84, to $68.40/bbl amid lingering demand concerns.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35369.09 -74.73 (-0.21%)
Nasdaq 15363.51 +32.34 (0.21%)
SP 500 4535.43 -1.52 (-0.03%)
10-yr Note -5/32 1.322
NYSE Adv 1333 Dec 1868 Vol 702.9 mln
Nasdaq Adv 1794 Dec 2525 Vol 3.65 bln
Industry Watch
Strong: Technology, Communication Services
Weak: Financials, Utilities, Industrials, Real Estate, Health Care, Consumer Discretionary, Materials
Moving the Market
August jobs report misses headline estimates but average hourly earnings beat expectations
Dow Jones continues this week's underperformance
Nasdaq Tags Another Record
03-Sep-21 16:15 ET
Dow -74.73 at 35369.09, Nasdaq +32.34 at 15363.51, S&P -1.52 at 4535.43
[BRIEFING.COM] The stock market ended a quiet week on a mixed note, as the S&P 500 (-0.03%) and Dow (-0.2%) ticked lower while the Nasdaq (+0.2%) hit another new closing record. Small caps underperformed, sending the Russell 2000 lower by 0.5%.
Today's action unfolded inside a 20-point range in the S&P 500 even though the Employment Situation report for August was mixed relative to estimates. The headline reading missed expectations by a country mile (actual 235,000; Briefing.com consensus 750,000) while average hourly earnings increased 0.6% m/m, twice the expected pace, giving some new fodder to the tapering debate.
Stocks slipped out of the gate, but the S&P 500 was quick to find support near its closing level from Wednesday. The benchmark index recovered the bulk of its opening 15-point loss during the opening hour and continued inching higher as the day went on.
The top-weighted technology sector (+0.4%) held a modest gain throughout the day while health care (+0.1%), communication services (+0.1%), real estate (+0.04%), and consumer discretionary (+0.01%) turned positive as the day went on. The technology sector's strength prevented the S&P 500 from falling deeper into the red in early trade and it helped with the daylong rebound.
Chipmakers were responsible for the early strength in technology after Broadcom (AVGO 497.68, +5.78, +1.2%) beat Q3 expectations and issued strong guidance for Q4. Broadcom helped the PHLX Semiconductor Index (+0.6%) narrow this week's loss to 0.2% while top tech components Apple (AAPL 154.30, +0.65, +0.4%) and Microsoft (MSFT 301.14, -0.01, unch) were mixed.
In other tech earnings, Hewlett Packard Enterprise (HPE 15.48, +0.09, +0.6%) touched its best level since mid-June after beating Q3 EPS expectations and issuing in-line guidance for FY21 while MongoDB (MDB 507.41, +105.76, +26.3%) soared to a fresh record after beating Q2 expectations and issuing above-consensus guidance for FY22.
On the downside, utilities (-0.8%) finished at the bottom of the leaderboard while materials (-0.7%), industrials (-0.6%), financials (-0.6%), and energy (-0.5%) ended with slimmer losses. The financials sector widened this week's loss to 2.5% while energy lost 1.4% for the week. Meanwhile, WTI crude fell $0.72, or 1.0%, to $69.24/bbl, but still gained $0.47, or 0.7%, for the week.
Treasuries revisited this week's highs in immediate reaction to the August jobs report but reversed swiftly to their lowest levels of the week. The 10-yr yield rose three basis points to 1.32%, finishing the day between its 50-day (1.309%) and 200-day moving averages (1.341%).
Today's volume was below average with just over 700 million shares changing hands at the NYSE floor.
Reviewing today's economic data:
August nonfarm payrolls increased by 235,000 (Briefing.com consensus 750,000). The 3-month average for total nonfarm payrolls decreased to 750,000 from 876,000 in July. July nonfarm payrolls revised to 1,053,000 from 943,000 June nonfarm payrolls revised to 962,000 from 938,000.
August private sector payrolls increased by 243,000 (Briefing.com consensus 650,000). July private sector payrolls revised to 798,000 from 703,000. June private sector payrolls revised to 808,000 from 769,000.
August unemployment rate was 5.2% (Briefing.com consensus 5.2%), versus 5.4% in July. Persons unemployed for 27 weeks or more accounted for 37.4% of the unemployed versus 39.3% in July. The U6 unemployment rate, which accounts for unemployed and underemployed workers, was 8.8%, versus 9.2% in July.
August average hourly earnings increased 0.6% (Briefing.com consensus 0.3%) versus a 0.4% increase in July. Over the last 12 months, average hourly earnings have risen 4.3%, versus 4.1% for the 12 months ending in July.
The average workweek in August was 34.7 hours (Briefing.com consensus 34.8), versus a downwardly revised 34.7 hours (from 34.8) in July. Manufacturing workweek decreased 0.2 hours to 40.3 hours. Factory overtime was unchanged at 3.2 hours.
The labor force participation rate was 61.7%, versus 61.7% in July. o The employment-population ratio increased to 58.5% from 58.4% in July.
The ISM Non-Manufacturing Index for August decreased to 61.7% (Briefing.com consensus 62.0%) from a record high 64.1% in July. The dividing line between expansion and contraction is 50.0%. The August reading marks the fifteenth straight month of growth for the services sector.
The key takeaway from the report is the understanding that services sector activity is still running strong notwithstanding the deceleration in growth from the record high reading in July.
Bond and equity markets will be closed on Monday in observance of Labor Day.
S&P 500 +20.8% YTD
Nasdaq Composite +19.2% YTD
Russell 2000 +16.1% YTD
Dow Jones Industrial Average +15.6% YTD
Crude Oil Slips
03-Sep-21 15:30 ET
Dow -42.79 at 35401.03, Nasdaq +33.50 at 15364.67, S&P +3.10 at 4540.05
[BRIEFING.COM] The S&P 500 trades higher by 0.1% with 30 minutes remaining in today's session. The benchmark index is on course to gain 0.7% for the week.
Seven sectors are on course to gain at least 1.0% for the week with real estate (-0.1%; +3.9% week-to-date) leading the way. On the downside, financials (-0.5%; -2.3% week-to-date) and energy (-0.5%; -1.4% week-to-date) are on track to finish at the bottom of this week's leaderboard.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35443.82 +131.29 (0.37%)
Nasdaq 15331.17 +21.80 (0.14%)
SP 500 4536.95 +12.86 (0.28%)
10-yr Note 0/32 1.299
NYSE Adv 2076 Dec 1134 Vol 797.6 mln
Nasdaq Adv 2807 Dec 1605 Vol 3.9 bln
Industry Watch
Strong: Energy, Industrials, Health Care
Weak: Communication Services, Information Technology, Consumer Discretionary
Moving the Market
-- S&P 500 and Nasdaq set record highs but close off session highs
-- Weekly initial and continuing claims continued to improve
-- Value stocks outperformed growth stocks
Value kind-of-day
02-Sep-21 16:15 ET
Dow +131.29 at 35443.82, Nasdaq +21.80 at 15331.17, S&P +12.86 at 4536.95
[BRIEFING.COM] The S&P 500 (+0.3%) and Nasdaq Composite (+0.1%) eked out intraday and closing record highs on Thursday, although they closed off session highs amid softness in the growth stocks. The Dow Jones Industrial Average increased 0.4% while the Russell 2000 increased 0.7%.
Unlike yesterday, today was more of a value-oriented session amid continued improvement in the weekly initial and continuing claims report. Both readings decreased to their lowest levels since the start of the pandemic, with initial claims checking in at 340,000 (Briefing.com consensus 348,000).
The shift into "value" was best manifested in the 0.6% gain in the Russell 1000 Value Index, which was better than the gains in the S&P 500 and Nasdaq. The S&P 500 energy (+2.5%) and industrials (+1.0%) sectors -- two cyclical groups often lumped into the value category -- were pockets of strength.
The energy sector was impressive with a 2.5% gain, largely due to the 2% gain in oil prices ($69.96/bbl, +1.41, +2.1%). WTI crude futures settled close to $70.00 per barrel.
Conversely, the Russell 1000 Growth Index closed flat and the Vanguard Mega Cap Growth ETF (MGK 248.98, -0.32, -0.1%) decreased 0.1%. The S&P 500 information technology (-0.1%), communication services (-0.7%), and consumer discretionary (-0.1%) sectors -- which contain the mega-cap stocks -- were the only sectors that closed lower.
The mega-caps had been hitting record highs on an almost regular basis recently, so their underperformance today likely had more to do with a breather than anything else. Low interest rates remained a supportive factor for the growth stocks.
The Treasury market held steady ahead of the August employment report tomorrow. The 2-yr yield was unchanged at 0.21%, and the 10-yr yield decreased one basis point to 1.29%. The U.S. Dollar Index decreased 0.2% to 92.23.
Separately, Hormel Foods (HRL 43.57, -2.10, -4.6%) was one of the biggest laggards in the S&P 500 after providing an underwhelming earnings report. HRL shares declined 4.6%.
Reviewing Thursday's economic data:
For the week ending August 28, initial claims decreased by 14,000 to 340,000 (Briefing.com consensus 348,000), which is the lowest level since March 14, 2020. Continuing claims for the week ending August 21 decreased by 160,000 to 2.748 million, which is also the lowest level since March 14, 2020.
The key takeaway from the report is the same as before: the trend is moving in a direction that is suggestive of an improving labor market.
The trade deficit for July narrowed to $70.1 billion (Briefing.com consensus -$74.0 billion) from an upwardly revised $73.2 billion (prior -$75.7 billion) in June. The narrowing was the result of July exports being $2.8 billion more than June exports, and July imports being $0.4 billion less than June imports.
The key takeaway from the report is that the real trade deficit in July was slightly narrower than the average real trade deficit for Q2. That will compute as a positive input for Q3 GDP forecasts.
Factory orders for manufactured goods increased 0.4% m/m in July, as expected, following a 1.5% increase in June. Shipments of manufactured goods were up 1.6% after increasing 1.9% in June.
The key takeaway from the report is that the pace of order growth for manufactured goods slowed noticeably in July, which is emblematic of headwinds created by the Delta variant and supply chain bottlenecks.
Q2 productivity was revised down to 2.1% (Briefing.com consensus 2.5%) from the advance estimate of 2.3% and unit labor costs were revised up to 1.3% (Briefing.com consensus 0.8%) from the advance estimate of 1.0%.
The downward revision to productivity is a bit disappointing, but it won't resonate as a market-moving factor knowing that we are two-thirds of the way through the third quarter.
Looking ahead, investors will receive the Employment Situation Report for August, the ISM Non-Manufacturing Index for August, and the final IHS Markit Services PMI for August on Friday.
S&P 500 +20.8% YTD
Nasdaq Composite +19.0% YTD
Russell 2000 +16.7% YTD
Dow Jones Industrial Average +15.8% YTD
Crude futures settle close to $70 per barrel
02-Sep-21 15:30 ET
Dow +62.43 at 35374.96, Nasdaq +3.13 at 15312.50, S&P +3.93 at 4528.02
[BRIEFING.COM] The S&P 500 is up 0.1%, and the Russell 2000 is up 0.7%.
One last look at the sector performances shows energy (+2.5%) up 2.5% and the only sector up more than 1.0%. The communication services (-0.7%), information technology (-0.2%), and consumer discretionary (-0.2%) sectors trade lower and hold the market back.
WTI crude futures settled higher by 2.1%, or $1.41, to $69.96/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35312.47 -48.26 (-0.14%)
Nasdaq 15309.37 +50.15 (0.33%)
SP 500 4524.12 +1.44 (0.03%)
10-yr Note 0/32 1.307
NYSE Adv 2042 Dec 1216 Vol 831.6 mln
Nasdaq Adv 2546 Dec 1816 Vol 4.2 bln
Industry Watch
Strong: Utilities, Real Estate, Communication Services, Consumer Staples
Weak: Financials, Materials, Energy, Industrials
Moving the Market
-- Nasdaq ekes out record highs to kick off September
-- Pro-defensive bias while cyclical stocks lagged
-- The ISM Manufacturing Index for August beat expectations, but employment index within the report entered contraction territory
Nasdaq ekes out record highs to kick off September
01-Sep-21 16:15 ET
Dow -48.26 at 35312.47, Nasdaq +50.15 at 15309.37, S&P +1.44 at 4524.12
[BRIEFING.COM] The Nasdaq Composite (+0.3%) eked out fresh record highs on the first day of September, as new money continued to flow into the market's largest stocks amid softer economic data. The S&P 500 (unch) closed little changed after coming within one point of its all-time high (4537.36) with a 0.3% gain in the afternoon.
To its credit, the small-cap Russell 2000 (+0.6%) outperformed the Nasdaq, while the Dow Jones Industrial Average declined 0.1%.
Notwithstanding the relative strength in the small-caps, there was a pro-defensive bias: the S&P 500 real estate (+1.7%) and utilities (+1.3%) sectors advanced more than 1.0% while Apple (AAPL 152.51, +0.68, +0.5%), Alphabet (GOOG 2916.84, +7.60, +0.3%), and Facebook (FB 382.05, +2.67, +0.7%) set all-time highs.
Conversely, the cyclical energy (-1.5%), financials (-0.6%), industrials (-0.4%), and materials (-0.3%) sectors underperformed in negative territory. The latest data on the manufacturing sector and labor market were cited for the performance gap.
Specifically, the employment index of the August ISM Manufacturing report slipped into contraction territory with a reading of 49.0, the ADP Employment Change report for August missed expectations by a wide margin, and China's August Caixin Manufacturing PMI (49.2) also slipped into contraction territory.
Granted, the headline ISM Manufacturing PMI for August was better than expected at 59.9% (Briefing.com consensus 58.5%).
AbbVie (ABBV 112.26, -8.52, -7.1%), meanwhile, was a specific drag on the health care sector (unch) after the FDA added warning-label changes to the company's arthritis treatment, Rinvoq. ABBV shares dropped 7% on the news.
The Treasury market, though, remained subdued in a wait-and-see trade for the August Employment Situation Report on Friday, which is the report on the labor market that carries the most weight for the Fed and the broader market.
The 10-yr yield was unchanged at 1.30%, and the 2-yr yield increased one basis point to 0.21%. The U.S. Dollar Index decreased 0.1% to 92.52. WTI crude futures increased 0.2%, or $0.11, to $68.55/bbl amid an expected OPEC+ decision to keep production-increases steady at 400,000 bpd.
Reviewing Wednesday's economic data:
The August ISM Manufacturing Index checked in at 59.9% (Briefing.com consensus 58.5%), up from 59.5% in July. A number above 50.0% is indicative of expansion. August marked the 15th straight month of expansion for the manufacturing sector, and at a faster pace than what was seen in July.
The key takeaway from the report is the same as before. Manufacturers and suppliers continue to struggle to meet increasing demand levels due to a range of factors that includes record-long raw material lead times, shortages of basic materials, transportation difficulties, worker absenteeism, and difficulty filling positions.
Total construction spending increased 0.3% m/m in July (Briefing.com consensus +0.2%) following a downwardly revised flat reading (from +0.1%) for June. Total private construction rose 0.3% m/m while total public construction spending increased 0.7%. On a year-over-year basis, total construction spending was up 9.0%.
The key takeaway from the report is the ongoing strength in private residential construction spending, which is a byproduct of strong demand driven by a scarce supply of existing homes for sale.
The ADP Employment Change report estimated 374,000 jobs were added to private-sector payrolls in August, which was well below the Briefing.com consensus of 660,000. The increase in July was downwardly revised to 326,00 from 330,000.
Total construction spending increased 0.3% m/m in July (Briefing.com consensus +0.2%) on the heels of an unrevised 0.1% increase in June.
The final IHS Market Manufacturing PMI for August checked in at 61.1, down from 61.2 in the preliminary reading.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Trade Balance for July, Factory Orders for July, and the revised Productivity and Unit Labor Costs for the second quarter on Thursday.
S&P 500 +20.5% YTD
Nasdaq Composite +18.8% YTD
Russell 2000 +15.8% YTD
Dow Jones Industrial Average +15.4% YTD
Crude futures settle slightly higher
01-Sep-21 15:30 ET
Dow -38.65 at 35322.08, Nasdaq +71.14 at 15330.36, S&P +4.27 at 4526.95
[BRIEFING.COM] The S&P 500 is up 0.1% after coming within one point of its all-time high earlier today. The Russell 2000 outperforms with a 0.5% gain.
One last look at the S&P 500 sectors shows utilities (+1.4%) and real estate (+1.3%) continuing to lead with gains over 1.0%. Conversely, the energy (-1.5%), financials (-0.6%), industrials (-0.4%), and materials (-0.2%) sectors trade lower.
WTI crude futures settled higher by 0.2%, or $0.11, to $68.55/bbl. On a related note, OPEC+ agreed to stick to their schedule of increasing supply by 400,000 bpd.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35360.60 -39.24 (-0.11%)
Nasdaq 15259.22 -6.65 (-0.04%)
SP 500 4522.67 -6.12 (-0.14%)
10-yr Note -2/32 1.307
NYSE Adv 1819 Dec 1454 Vol 1.2 bln
Nasdaq Adv 2681 Dec 1706 Vol 4.1 bln
Industry Watch
Strong: Communication Services, Consumer Discretionary, Real Estate
Weak: Energy, Information Technology
Moving the Market
-- Stock market closed little changed in quiet session
-- Zoom Video (ZM) dropped nearly 17% after earnings
-- Consumer consumer decreases in August
Major indices close out strong month on softer note
31-Aug-21 16:15 ET
Dow -39.24 at 35360.60, Nasdaq -6.65 at 15259.22, S&P -6.12 at 4522.67
[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.04%), and Dow Jones Industrial Average (-0.1%) closed fractionally lower on Tuesday in a quiet session. The small-cap Russell 2000 ended the session with a modest gain of 0.3%.
Buying conviction might have been lacking because of the softening economic data in the U.S. and China, a 16% decline in shares of Zoom Video (ZM 289.50, -58.00, -16.7%) following its earnings report, an observation that the gains were good in August, and a wait-and-see mindset for the August employment report at the end of the week.
Seven of the 11 S&P 500 sectors closed in negative territory, including energy (-0.7%) and information technology (-0.6%) at the bottom of the pack. The communication services (+0.3%), consumer discretionary (+0.4%), and real estate (+0.6%) sectors outperformed with modest gains.
Specifying the data, the Conference Board's Consumer Confidence Index decreased to 113.8 in August (Briefing.com consensus 123.0) from 128.9 in July, the Chicago PMI for August decreased to 66.8 (Briefing.com consensus 68.0) from 73.4 in July, China's August Manufacturing PMI decelerated to 50.1, and China's August non-Manufacturing PMI slipped into contraction territory at 47.5.
The slower growth appeared to weigh on oil prices ($68.44, -0.77, -1.1%), which gave back some rebound gains, but not as much on the Treasury market. The 10-yr yield increased two basis points to 1.30% while the 2-yr yield was unchanged at 0.20%. The U.S. Dollar Index was little changed at 92.66.
In other corporate news, Bloomberg reported on a study in Belgium that showed Moderna's (MRNA 376.69, +6.00, +1.6%) COVID-19 vaccine produced twice as many antibodies as Pfizer's (PFE 46.07, -0.69, -1.5%) vaccine. DigiTimes reported that Taiwan Semi (TSM 119.01, +0.02, unch) is in discussions with suppliers to lower prices for next year by 15% in order to cut costs.
Shares of Kansas City Southern (KSU 280.67, -12.89, -4.4%) declined 4% after the Surface Transportation Board announced a unanimous decision rejecting the use of a voting trust agreement in connection with the company's proposed M&A deal.
Reviewing Tuesday's economic data:
The Conference Board's Consumer Confidence Index fell to 113.8 in August (Briefing.com consensus 123.0) from a revised 125.1 (from 129.1) in July. The August drop sent the Index to its lowest level since February.
The key takeaway from the report is that it reflected some of the same concerns as Friday's release of the Consumer Sentiment Survey from the University of Michigan. Consumers were concerned with reports about the Delta variant of the coronavirus as well as rising food and gas prices.
The Chicago PMI for August decreased to 66.8 (Briefing.com consensus 68.0) following an unrevised 73.4 reading in July.
The S&P Case-Shiller Home Price Index increased 19.1% yr/yr in June (Briefing.com consensus 17.6%) following a revised 17.1% increase (from 17.0%) in May.
The FHFA Housing Price Index increased 1.6% m/m in June following a revised 1.8% increase (from 1.7%) in May.
Looking ahead, investors will receive the ISM Manufacturing Index for August, the ADP Employment Change report for August, Construction Spending for July, and the weekly MBA Mortgage Applications Index on Wednesday.
S&P 500 +20.4% YTD
Nasdaq Composite +18.4% YTD
Dow Jones Industrial Average +15.5% YTD
Russell 2000 +15.1% YTD
Crude futures retrace some rebound gains
31-Aug-21 15:30 ET
Dow -65.74 at 35334.10, Nasdaq -18.10 at 15247.77, S&P -8.52 at 4520.27
[BRIEFING.COM] The S&P 500 is down 0.2% to trade near session lows.
One last look at the S&P 500 sectors shows industrials (-0.5%), information technology (-0.5%), and materials (-0.5%) underperforming with 0.5% declines, while the real estate (+0.4%) and communication services (+0.4%) sectors outperform with modest gains.
WTI crude futures settled lower by 1.1%, or $0.77, to $68.44/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35399.84 -55.96 (-0.16%)
Nasdaq 15265.87 +136.39 (0.90%)
SP 500 4528.79 +19.42 (0.43%)
10-yr Note +3/32 1.284
NYSE Adv 1393 Dec 1847 Vol 703.5 mln
Nasdaq Adv 2028 Dec 2361 Vol 4.0 bln
Industry Watch
Strong: Information Technology, Consumer Discretionary, Real Estate, Communication Services
Weak: Financials, Energy, Materials, Industrials
Moving the Market
-- S&P 500 and Nasdaq close at record highs on the back of the mega-cap stocks
-- Value/cyclical stocks underperformed amid lingering growth concerns
Mega-caps power S&P 500 and Nasdaq to new heights
30-Aug-21 16:15 ET
Dow -55.96 at 35399.84, Nasdaq +136.39 at 15265.87, S&P +19.42 at 4528.79
[BRIEFING.COM] The S&P 500 (+0.4%) and Nasdaq Composite (+0.9%) set intraday and closing record highs on Monday, as money continued to flow into the large growth stocks. The Dow Jones Industrial Average (-0.2%) and Russell 2000 (-0.5%), however, closed lower amid relative weakness in the value stocks.
Apple (AAPL 153.12, +4.52, +3.0%), Microsoft (MSFT 303.59, +3.87, +1.3%), Amazon.com (AMZN 3421.57, +71.94, +2.2%), Alphabet (GOOG 2909.39, +18.38, +0.6%), and Facebook (FB 380.66, +8.03, +2.2%) -- which account for approximately 22.5% of the S&P 500's market capitalization -- had a large say in today's action. AAPL stood out with a 3% gain.
The S&P 500 information technology (+1.1%), consumer discretionary (+0.9%), and communication services (+0.7%) sectors, which are home to these widely-owned names, were among the best-performing sectors today.
The defensive-oriented real estate (+1.2%) and health care (+0.6%) sectors also outperformed, while the cyclical financials (-1.5%), energy (-1.2%), materials (-0.2%), and industrials (-0.2%) sectors closed lower. The financials and energy sectors declined more than 1.0%.
This mega-cap leadership, and the underperformance of the cyclical stocks, was attributed to lingering growth concerns stemming from the Delta variant, Hurricane Ida, and the fate of the infrastructure package. There were some positive-sounding news involving the growth stocks, though.
For instance, the International Data Corporation (IDC) published a report that global smartphone shipments are expected to grow 7.4% yr/yr in 2021 to 1.37 billion units, thanks to a strong recovery in emerging markets. Amazon and Affirm (AFRM 99.59, +31.69, +46.7%) partnered to bring AFRM's buy-now, pay-later service to Amazon's customers.
Shares of Affirm soared 46% on the news, but it was outdone by a 64% gain in Globalstar (GSAT 2.35, +0.92, +64.3%) following an unconfirmed report that Apple will use LEO satellite communications for its next iPhone.
PayPal (PYPL 288.47, +10.14, +3.6%), meanwhile, rose 3.6% after CNBC reported that the company is exploring a stock-trading platform for its U.S. customers. Shares of Robinhood Markets (HOOD 43.64, -3.23, -6.9%) dropped 7% and extended intraday losses after SEC Chairman Gensler told Barron's that banning payment for order flow is “on the table."
Elsewhere, the Treasury market was another signpost for growth concerns, as the 10-yr yield declined three basis points to 1.29%. The 2-yr yield decreased two basis points to 0.20%. The U.S. Dollar Index was little changed at 92.69.
WTI crude futures rose 0.6%, or $0.44, to $69.21/bbl /bbl ahead of an OPEC+ meeting on Wednesday. Investors weighed the temporary shutdown of oil refineries in the Gulf Coast with a report from Reuters relaying a comment from Kuwait's oil minister that the OPEC+ oil production agreement could be reconsidered.
Monday's economic data was limited to Pending Home Sales, which unexpectedly decreased 1.8% m/m in July (Briefing.com consensus +0.5%) following a downwardly revised 2.0% decline (from -1.9%) in June.
Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for August, the Chicago PMI for August, the FHFA Housing Price Index for June, and the S&P Case-Shiller Home Price Index for June on Tuesday.
S&P 500 +20.6% YTD
Nasdaq Composite +18.5% YTD
Dow Jones Industrial Average +15.7% YTD
Russell 2000 +14.7% YTD
Crude futures settle modestly higher
30-Aug-21 15:25 ET
Dow -17.20 at 35438.60, Nasdaq +149.14 at 15278.62, S&P +24.58 at 4533.95
[BRIEFING.COM] The S&P 500 is up 0.6% and on track to close at another record high.
One last look at the S&P 500 sectors shows information technology (+1.1%) and consumer discretionary (+1.1%) up more than 1.0%, while the financials (-1.3%) and energy (-0.6%) sectors are the only sectors trading lower.
WTI crude futures settled higher by 0.6%, or $0.44, to $69.21/bbl ahead of an OPEC+ meeting on Wednesday. On a related note, Reuters reported that Kuwait's oil minister said the OPEC+ oil production agreement could be reconsidered.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35455.80 +242.68 (0.69%)
Nasdaq 15129.48 +183.69 (1.23%)
SP 500 4509.37 +39.37 (0.88%)
10-yr Note +5/32 1.307
NYSE Adv 2685 Dec 535 Vol 736.4 mln
Nasdaq Adv 3329 Dec 997 Vol 3.9 bln
Industry Watch
Strong: Energy, Communication Services, Financials
Weak: Health Care, Utilities
Moving the Market
-- S&P 500 and Nasdaq close at record highs after Fed Chair Powell's speech
-- Fed Chair Powell said substantial further progress has been met on inflation but not yet employment: suggests tapering will start later this year
-- Fed Chair Powell differentiates tapering criteria from rate-hike criteria
Powell speech pleases market, S&P 500 and Nasdaq notch record highs
27-Aug-21 16:15 ET
Dow +242.68 at 35455.80, Nasdaq +183.69 at 15129.48, S&P +39.37 at 4509.37
[BRIEFING.COM] The S&P 500 (+0.9%) and Nasdaq Composite (+1.2%) rallied to record highs on Friday, as the market reacted positively to Fed Chair Powell's Jackson Hole speech on the economy and monetary policy. The Dow Jones Industrial Average was the relative underperformer with a 0.7% gain, while the Russell 2000 pulled ahead with a 2.9% gain.
Fed Chair Powell suggested tapering could start by the end of the year since "substantial further progress" has been met on inflation and that "clear progress" has been made on employment. This qualification on employment implied that the Fed chair still needs to assess incoming data on the labor market before committing to a taper timeline.
Fed Vice Chair Clarida and Fed Presidents Bostic, Harker, Mester, and Bullard were largely in agreement with Mr. Powell in separate television interviews (Mr. Bullard preferred to taper immediately). What's more, Fed Chair Powell said the timing and pace of tapering will have no direct impact to the timing of future rate hikes, which will depend on a more careful assessment of the economy.
In other words, the market was okay with the taper talk on the understanding that the Fed isn't in a hurry to taper and that financial conditions will still be accommodative after the Fed stops buying assets.
The equity gains were relatively broad-based: Nine of the 11 S&P 500 sectors finished in positive territory, growth stocks and value stocks rose alike, and advancing issues outpaced declining issues by a 5:1 margin at the NYSE and by a 3:1 margin at the Nasdaq.
The information technology sector (+1.0%) was an influential leader, but the energy sector (+2.6%) increased the most amid higher oil prices ($68.77/bbl, +1.42, +2.1%) and rebound momentum. The health care (-0.2%) and utilities (-0.03%) sectors closed slightly lower.
Pfizer (PFE 46.58, -0.80, -1.7%) and Moderna (MRNA 382.22, -18.08, -4.5%) dragged on the health care sector amid word from the White House Press Secretary that guidance for booster shots will remain at eight months and not five months as reported earlier in the day.
Elsewhere, longer-dated Treasury yields moved lower following Fed Chair Powell's speech and the July Personal Income/Spending report, which included 0.1% decline in real PCE. Inflation pressures continued to run persistently high, but the silver lining was that the core-PCE Price Index was unchanged at 3.6% yr/yr, providing some hope that inflation rates are peaking.
The 10-yr yield decreased three basis points to 1.31%, and the 2-yr yield decreased one basis point to 0.22%. The U.S. Dollar Index decreased 0.4% to 92.68.
Reviewing Friday's economic data:
Personal income was up 1.1% month-over-month in July (Briefing.com consensus +0.2%), bolstered by a 1.0% increase in wages and salaries and a 2.9% increase in personal current transfer receipts (think Child Tax Credit payments). Personal spending increased 0.3% (Briefing.com consensus +0.4%), but real PCE declined 0.1% with the PCE Price Index up 0.4% (Briefing.com consensus +0.4%). The core PCE Price Index, which excludes food and energy, increased 0.3% (Briefing.com consensus +0.3%).
The key takeaway from the report is twofold: (1) the decline in real PCE will be a drag on Q3 GDP forecasts and (2) inflation pressures continue to run persistently high. The PCE Price Index was up 4.2% year-over-year, versus 4.0% in June, and the core PCE Price Index held steady at 3.6%.
The final University of Michigan Consumer Sentiment Index for August checked in at 70.3 (Briefing.com consensus 70.7), nearly even with the preliminary reading of 70.2. The final reading for July was 81.2. The downturn from July was one of the largest losses since 1978.
The key takeaway from the report is the recognition that higher inflation trends have led to a worsening in sentiment regarding personal financial prospects.
The Advance report for International Trade in Goods for July showed a deficit of $86.4 billion, versus a revised $92.1 billion (from $91.2 billion) in June. The Advance report for Retail Inventories for July increased 0.4%, while the Advance report for Wholesale Inventories for July increased 0.6%.
Looking ahead, investors will receive Pending Home Sales for July on Monday.
S&P 500 +20.1% YTD
Nasdaq Composite +17.4% YTD
Dow Jones Industrial Average +15.8% YTD
Russell 2000 +15.3% YTD
Crude futures settle 10% higher for the week
27-Aug-21 15:30 ET
Dow +256.76 at 35469.88, Nasdaq +196.95 at 15142.74, S&P +41.52 at 4511.52
[BRIEFING.COM] The S&P 500 is up 0.9% to trade at session, and record, highs.
One last look at the sectors shows energy (+2.6%) still in the lead, but the information technology sector (+1.0%) is one of the more influential gainers given its top-weighted position in the S&P 500. The health care sector (-0.1%) is down slightly.
WTI crude futures settled higher by 2.1%, or $1.42, to $68.77/bbl. For the week, crude futures were up 10.5%.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35213.12 -192.38 (-0.54%)
Nasdaq 14945.79 -96.05 (-0.64%)
SP 500 4469.92 -26.27 (-0.58%)
10-yr Note -23/32 1.360
NYSE Adv 828 Dec 2400 Vol 680.9 mln
Nasdaq Adv 1582 Dec 2781 Vol 3.6 bln
Industry Watch
Strong: Real Estate
Weak: Energy, Information Technology, Consumer Discretionary
Moving the Market
-- Stock market loses rebound momentum
-- Hawkish-sounding Fed commentary
-- Two explosions in Afghanistan killed at least 12 servicemen
-- salesforce.com (CRM) provided encouraging earnings news
Rebound momentum halted
26-Aug-21 16:15 ET
Dow -192.38 at 35213.12, Nasdaq -96.05 at 14945.79, S&P -26.27 at 4469.92
[BRIEFING.COM] The stock market's rebound momentum was put to a halt on Thursday, with the major indices losing between 0.5% (Dow Jones Industrial Average) and 1.1% (Russell 2000) amid some negative-sounding headlines. Both the S&P 500 (-0.6%) and Nasdaq Composite (-0.6%) snapped five-session winning streaks.
Namely, Kansas City Fed President George (FOMC voter in 2022), St. Louis Fed President Bullard (FOMC voter in 2022), and Dallas Fed President Kaplan (FOMC voter in 2023) each told CNBC that they prefer the Fed taper asset purchases sooner rather than later. In addition, there were two explosions in Afghanistan that killed at least 12 servicemen, exacerbating the geopolitical uncertainty in the region.
These events were largely viewed as convenient excuses for the market to slow down its record-setting pursuit. These Fed officials had already issued similar comments before today, and the Afghanistan situation doesn't seem like it will have any impact on the economy.
Ten of the 11 S&P 500 sectors closed lower, led by energy (-1.5%) as oil prices ($67.35, -0.99, -1.5%) retraced some rebound gains. The heavily-weighted information technology sector (-0.6%) exerted influential pressure on the market with a 0.6% decline, while the real estate sector (+0.1%) was spared from today's selling activity.
Trading volume was below recent averages once again, with only 638 million shares exchanged at the NYSE. This reduced volume might have contributed to the negative price action.
On the earnings front, salesforce.com (CRM 267.79, +6.94, +2.7%) helped limit the decline in the Dow after the company reported better-than-expected earnings results and issued upbeat guidance. Snowflake (SNOW 305.26, +21.50, +7.6%) and Williams-Sonoma (WSM 186.68, +15.95, +9.3%) also registered decent earnings-driven gains.
Conversely, Autodesk (ADSK 310.19, -32.08, -9.4%), Dollar General (DG 225.90, -8.84, -3.8%), Dollar Tree (DLTR 93.48, -12.84, -12.1%), and Burlington Stores (BURL 318.01, -32.14, -9.2%) underwhelmed investors with their earnings results.
Elsewhere, the Treasury market was more subdued, as investors digested the macro headlines and awaited Fed Chair Powell's Jackson Hole speech tomorrow. The 10-yr yield settled unchanged at 1.34%, and the 2-yr yield settled unchanged at 0.23%. The U.S. Dollar Index increased 0.2% to 93.05.
The CBOE Volatility Index (18.81, +2.03, +12.1%) jumped two points, as demand for downside protection increased with the negative disposition in the market.
Reviewing Thursday's economic data:
The second estimate for Q2 GDP checked in at 6.6% (Briefing.com consensus 6.6%) versus the advance estimate of 6.5% and the GDP Deflator edged up to 6.1% (Briefing.com consensus 6.0%) from the advance estimate of 6.0%.
The report's dated nature (we're nearly two-thirds of the way through Q3) and the lack of any meaningful change from the advance estimate have muted its influence.
Initial claims for the week ending August 21 increased by 4,000 to 353,000 (Briefing.com consensus 355,000) while continuing claims for the week ending August 14 decreased by 3,000 to 2.862 million.
The key takeaway from the report is the continued firming of the initial claims trend below 400,000, as that remains consistent with an improving labor market that is anticipated to keep improving based on the number of available job openings.
Looking ahead, investors will receive Personal Income, Personal Spending, and PCE Prices for July, the final University of Michigan Index of Consumer Sentiment for August, and Adv. Intl Trade in Goods, Retail Inventories, and Wholesale Inventories for July on Friday.
S&P 500 +19.0% YTD
Nasdaq Composite +16.0% YTD
Dow Jones Industrial Average +15.1% YTD
Russell 2000 +12.1% YTD
Crude futures retrace some rebound gains
26-Aug-21 15:30 ET
Dow -166.29 at 35239.21, Nasdaq -80.25 at 14961.59, S&P -23.09 at 4473.10
[BRIEFING.COM] The S&P 500 is down 0.5% and on track to snap a five-session winning streak.
One last look at the sector standings shows energy (-1.5%) leading the decline amid a retracement in oil prices while the top-weighted information technology sector trades lower by 0.5%. The real estate sector (+0.2%) remains the only sector trading higher.
WTI crude futures settled lower by 1.5%, or $0.99, to $67.35/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35405.50 +39.24 (0.11%)
Nasdaq 15041.84 +22.06 (0.15%)
SP 500 4496.19 +9.96 (0.22%)
10-yr Note -3/32 1.329
NYSE Adv 1885 Dec 1332 Vol 733.3 mln
Nasdaq Adv 2490 Dec 1875 Vol 3.6 bln
Industry Watch
Strong: Financials, Energy, Industrials, Materials
Weak: Health Care, Information Technology, Consumer Staples, Real Estate
Moving the Market
-- S&P 500 and Nasdaq eke out record highs as bull market continued to attract buying interest in slow, summer session
-- Relative strength in financials sector amid some curve-steepening activity
-- Lighter trading volume at the NYSE
S&P 500 and Nasdaq eke out new record highs (again)
25-Aug-21 16:15 ET
Dow +39.24 at 35405.50, Nasdaq +22.06 at 15041.84, S&P +9.96 at 4496.19
[BRIEFING.COM] The S&P 500 (+0.2%) and Nasdaq Composite (+0.2%) eked out intraday and closing record highs on Wednesday, as the bull market continued to attract buying interest in a lower-volume session. The S&P 500 tagged the 4,500 level for the first time but struggled to break above it.
The Dow Jones Industrial Average increased 0.1%, and the Russell 2000 increased 0.4%.
Buyers appeared slightly more interested in the value/cyclical names, as Delta variant concerns continued to wane amid hopes that infection rates are peaking and that more people will get vaccinated. A bump in long-term interest rates corroborated the optimistic outlook: the 10-yr yield rose five basis points to 1.34%.
The S&P 500 financials sector (+1.2%) keyed off the curve-steepening activity, rising to the top of the leaderboard while the energy sector (+0.7%) continued to rebound with oil prices ($68.34, +0.84, +1.2%). The industrials (+0.6%) and materials (+0.4%) sectors rose modestly.
The semiconductor space was another pocket of relative strength, driven in part by a DigiTimes report indicating that Taiwan Semi (TSM 117.03, +4.92, +4.4%) plans to increase prices of more advanced chips by 10-20% next year. The Philadelphia Semiconductor Index advanced 0.8%.
Conversely, the health care (-0.3%), information technology (-0.1%), real estate (-0.2%), and consumer staples (-0.1%) sectors underperformed with small declines as demand for defensive-oriented stocks decreased.
In other developments, Johnson & Johnson (JNJ 174.23, -1.16, -0.7%) announced interim data that supported a booster shot for its COVID-19 vaccine, the House advanced the $3.5 trillion budget resolution and the $1 trillion bipartisan infrastructure bill through procedural hurdles, and companies continued to beat earnings expectations.
Shares of Dicks Sporting Goods (DKS 129.60, +15.21, +13.3%) rose 13% following its earnings report, which included upbeat FY21 guidance, a 21% increase to its quarterly dividend, and a special dividend of $5.50 per share. Smaller retailers Nordstrom (JWN 31.14, -6.67, -17.6%) and Urban Outfitters (URBN 36.86, -3.87, -9.5%) struggled following their reports.
The CBOE Volatility Index (16.79, -0.43, -2.5%) retraced below the 17.00 level, reflecting decreased hedging interest as the major indices drifted higher on another slow, summer day. The 2-yr yield increased one basis point to 0.23%. The U.S. Dollar Index decreased 0.1% to 92.83.
Reviewing Wednesday's economic data:
Total durable goods orders declined 0.1% month-over-month in July (Briefing.com consensus -0.3%) and orders, excluding transportation, increased 0.7% (Briefing.com consensus +0.3%) following an upwardly revised 0.6% increase (from 0.3%) in June. On a year-over-year basis, durable goods orders were up 25.3%, while orders, excluding transportation, were up 17.7%.
The key takeaway from the report is that nondefense capital goods orders, excluding aircraft -- a proxy for business spending -- were flat after increasing 1.0% in June.
The weekly MBA Mortgage Applications Index increased 1.6% following a 3.9% decline in the prior week.
Looking ahead, investors will receive the second estimate for Q2 GDP and the weekly Initial Claims and Continuing Claims report on Thursday.
S&P 500 +19.7% YTD
Nasdaq Composite +16.7% YTD
Dow Jones Industrial Average +15.7% YTD
Russell 2000 +13.4% YTD
Crude futures
25-Aug-21 15:25 ET
Dow +43.23 at 35409.49, Nasdaq +24.01 at 15043.79, S&P +11.06 at 4497.29
[BRIEFING.COM] The S&P 500 is up 0.3% and on track to close at a record high. Trading volume is below average at the NYSE, with only 410,000 million shares traded with 30 minutes left in the session.
One last look at the S&P 500 sectors shows financials (+1.3%) as the only sector up or down more than 1.0%. The top-weighted information technology sector (-0.1%) drags on the market with a small decline.
WTI crude futures settled higher by 1.2%, or $0.84, to $68.34 per barrel.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35366.26 +30.55 (0.09%)
Nasdaq 15019.78 +77.15 (0.52%)
SP 500 4486.23 +6.70 (0.15%)
10-yr Note -1/32 1.267
NYSE Adv 2218 Dec 1028 Vol 781.2 mln
Nasdaq Adv 2844 Dec 1611 Vol 3.8 bln
Industry Watch
Strong: Energy, Financials, Materials, Industrials, Consumer Discretionary
Weak: Health Care, Utilities, Consumer Staples, Real Estate, Information Technology
Moving the Market
-- S&P 500 and Nasdaq drift further into record territory
-- Cyclical sectors outperformed the defensive-oriented sectors
-- Positive earnings reports, better-than-expected new home sales report for July
-- Increased risk-taking activity
S&P 500 and Nasdaq drift further into record territory
24-Aug-21 16:20 ET
Dow +30.55 at 35366.26, Nasdaq +77.15 at 15019.78, S&P +6.70 at 4486.23
[BRIEFING.COM] The S&P 500 (+0.2%) and Nasdaq Composite (+0.5%) rose modestly on Tuesday, setting intraday and closing record highs in a tame session. The Nasdaq topped the 15,000 level for the first time ever while the S&P 500 flirted with the 4,500 level.
The Dow Jones Industrial Average increased just 0.1%. The Russell 2000 outperformed its large-cap peers with a 1.0% gain.
Risk sentiment seemed to draw support from several factors, including upbeat earnings news, better-than-expected new home sales data for July, decent rebound gains in Chinese technology stocks, and yesterday's reports that the Delta variant could be peaking in the U.S.
Despite the relative strength of the Nasdaq, there was a pro-cyclical disposition: The S&P 500 energy (+1.6%), consumer discretionary (+0.8%), materials (+0.7%), financials (+0.7%), and industrials (+0.5%) sectors finished atop the sector standings. Energy stocks derived their strength from the continued rebound in oil prices ($67.50, +1.90, +2.9%)
Conversely, the consumer staples (-0.8%), real estate (-0.7%), utilities (-0.6%), and health care (-0.3%) sectors closed lower for the second straight day. The information technology sector (-0.1%) was pinned down by softness in Apple (AAPL 149.62, -0.09, -0.1%) and Microsoft (MSFT 302.62, -2.03, -0.7%).
The underperformance of the defensive-oriented sectors coincided with increased risk-taking activity. For example, shares of GameStop (GME 210.29, +45.40, +27.5%) and AMC Entertainment (AMC 44.26, +7.48, +20.3%) rose more than 20.0% in the afternoon on no specific news.
Separately, Best Buy (BBY 121.49, +9.33, +8.3%), Palo Alto Networks (PANW 441.87, +69.30, +18.6%), and Medtronic (MDT 132.57, +4.09, +3.2%) were some of the earnings-related gainers. Alibaba (BABA 171.70, +10.64, +6.6%) and JD.com (JD 75.22, +9.49, +14.4%) were two Chinese stocks that saw some much-needed relief.
Unlike yesterday, longer-dated Treasury yields increased in sympathy with the cyclical bias. The 10-yr yield rose four basis points to 1.29% while the 2-yr yield slipped one basis point to 0.22% following a strong $60 bln 2-yr note auction. The U.S. Dollar Index decreased 0.2% to 92.88.
Reviewing Tuesday's economic data:
New home sales increased 1.0% month-over-month in July to a seasonally adjusted annual rate of 708,000 (Briefing.com consensus 700,000) from an upwardly revised 701,000 (from 676,000) in June. On a yr/yr basis, which encompasses a tough pandemic comparison period, new home sales were down 27.2%.
In economic data:
The key takeaway from the report is that new home sales, which are counted when contracts are signed, are being squeezed by cost constraints that are making it less enticing for builders to build lower-priced homes and by affordability pressures that are making it more challenging for prospective buyers to buy higher-priced homes.
Looking ahead, investors will receive Durable Goods Orders for July and the weekly MBA Mortgage Applications Index on Wednesday.
S&P 500 +19.4% YTD
Nasdaq Composite +16.5% YTD
Dow Jones Industrial Average +15.6% YTD
Russell 2000 +13.0% YTD
Crude futures add to rebound gains
24-Aug-21 15:30 ET
Dow +74.22 at 35409.93, Nasdaq +90.59 at 15033.22, S&P +12.57 at 4492.10
[BRIEFING.COM] The S&P 500 is up 0.3% and is on track to close at a record high. One last look at the sector standing shows a divide between the cyclical and counter-cyclical sectors.
The energy (+1.8%), consumer discretionary (+1.0%), financials (+0.8%), materials (+0.8%), and industrials (+0.6%) are outperforming in positive territory, while the consumer staples (-0.7%), real estate (-0.6%), utilities (-0.5%), and health care (-0.2%) sectors trade lower.
WTI crude futures settled higher by 2.9%, or $1.90, to $67.50 per barrel.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35335.71 +215.63 (0.61%)
Nasdaq 14942.63 +227.99 (1.55%)
SP 500 4479.53 +37.86 (0.85%)
10-yr Note -1/32 1.274
NYSE Adv 2262 Dec 1041 Vol 764.0 mln
Nasdaq Adv 3275 Dec 1166 Vol 3.8 bln
Industry Watch
Strong: Energy, Consumer Discretionary, Information Technology, Communication Serivces
Weak: Utilities, Consumer Staples, Real Estate, Health Care
Moving the Market
-- S&P 500 and Nasdaq hit all-time highs
-- FDA granted full approval for the Pfizer (PFE)-BioNTech (BNTX) COVID-19 vaccine
-- Energy stocks and oil prices rebounded nicely; growth stocks did well, too
Investors buy the dip to record highs, Pfizer vaccine gets full FDA approval
23-Aug-21 16:20 ET
Dow +215.63 at 35335.71, Nasdaq +227.99 at 14942.63, S&P +37.86 at 4479.53
[BRIEFING.COM] The stock market had a strong start to the week, as investors remained steadfast in buying the dip amid some encouraging Covid news. The S&P 500 (+0.9%) and Nasdaq Composite (+1.6%) set intraday record highs, with the Nasdaq also closing at a record high.
The Dow Jones Industrial Average (+0.6%) trailed its large-cap peers with a 0.6% gain while the Russell 2000 (+1.9%) and iShares Micro-Cap ETF (IWC 143.33, +3.87, +2.8%) outperformed after underperforming last week.
Briefly, the FDA fully approved the Pfizer (PFE 49.93, +1.21, +2.5%)-BioNTech (BNTX 382.10, +33.42, +9.6%) vaccine for people 16 years and older, which provided some hope that vaccination rates will increase. In addition, the IHME vaccine model suggested that coronavirus cases could be peaking in the U.S.
The gains were relatively broad-based, as advancing issues outpaced declining issues by a 2:1 margin at the NYSE and a 3:1 margin at the Nasdaq. Seven of the 11 S&P 500 sectors closed higher, including the energy sector (+3.8%), which rose 4% as oil prices ($65.60, +3.35, +5.4%) rebounded 5%.
The heavily-weighted information technology sector (+1.3%) advanced 1.3%, while the defensive-oriented utilities (-1.3%), real estate (-0.4%), consumer staples (-0.4%), and health care (-0.02%) sectors were excluded from the advance amid some slippage into the close.
Other supportive factors included preliminary manufacturing and services PMIs for August out of the eurozone and U.S. that were expansionary (although they did decelerate from July), news that Treasury Secretary Yellen will back Fed Chair Powell for a second term, and a Barron's cover story that described the mega-cap technology stocks as "unstoppable."
Elsewhere, Treasury yields were subdued despite the bullish price action in the major indices, reportedly because of the deceleration in the IHS data, reduced trading volume, and a wait-and-see mindset for Fed Chair Powell's speech on Friday. Mr. Powell will speak during the annual Jackson Hole Economic Symposium.
The 10-yr yield decreased one basis point to 1.26% while the 2-yr yield increased one basis point to 0.23%. The U.S. Dollar Index decreased 0.5% to 92.99.
Reviewing Monday's economic data:
Existing home sales increased 2.0% m/m in July to a seasonally adjusted annual rate of 5.99 million (Briefing.com consensus 5.85 million) from an upwardly revised 5.87 million (from 5.86 million) in June. Total sales in July were up 1.5% from a year ago.
The key takeaway from the report is that the supply of existing homes for sale at more affordable price points remains extremely limited. That is driving up the pace of price increases well beyond the pace of income growth, which is creating affordability pressures for prospective buyers, particularly first-time buyers, and leading much of the sales growth to occur in higher-end markets.
The preliminary IHS Markit Manufacturing PMI decreased to 61.2 in August from 63.4 in July. The preliminary IHS Markit Services PMI decreased to 55.2 in August from 59.9 in July.
Looking ahead, investors will receive New Home Sales for July on Tuesday.
S&P 500 +19.3% YTD
Nasdaq Composite +15.9% YTD
Dow Jones Industrial Average +15.5% YTD
Russell 2000 +11.8% YTD
Crude futures rebound 5%
23-Aug-21 15:30 ET
Dow +269.59 at 35389.67, Nasdaq +236.27 at 14950.91, S&P +44.57 at 4486.24
[BRIEFING.COM] The S&P 500 is up 1.0% and on track to close at a record high.
One last look at the sector standings shows energy (+3.8%) up 4% as oil prices rebound more than 5% while the top-weighted information technology sector trades higher by 1.3%. Conversely, the utilities (-1.0%) and real estate (-0.3%) sectors trade lower.
WTI crude futures settled higher by 5.4%, or $3.35, to $65.60/bbl. Oil prices rebounded from a 9% decline last week, as demand concerns eased with the FDA approval of the Pfizer (PFE 49.96, +1.24, +2.6%) vaccine.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34894.12 -66.57 (-0.19%)
Nasdaq 14541.77 +15.87 (0.11%)
SP 500 4405.80 +5.53 (0.13%)
10-yr Note +23/32 1.242
NYSE Adv 971 Dec 2282 Vol 918.2 mln
Nasdaq Adv 1248 Dec 3042 Vol 4.1 bln
Industry Watch
Strong: Consumer Staples, Utilities, Real Estate, Health Care, Information Technology
Weak: Energy, Financials, Materials, Industrials
Moving the Market
-- Large-cap indices close little changed in a defensive session
-- Relative strength in the mega-caps and counter-cyclical stocks
-- Growth concerns lingered, as cyclical stocks struggled, oil prices weakened, and 10-yr yield dipped lower
-- Weekly initial and continuing claims continued to improve
Large-caps indices turn a weak open into a flat close
19-Aug-21 16:20 ET
Dow -66.57 at 34894.12, Nasdaq +15.87 at 14541.77, S&P +5.53 at 4405.80
[BRIEFING.COM] The large-cap indices closed little changed on Thursday, as relative strength in the growth/defensive-oriented stocks belied a mostly negative session. The S&P 500 (+0.1%) and Nasdaq Composite (+0.1%) both gained 0.1% while the Dow Jones Industrial Average (-0.2%) lost 0.2%.
The small-cap Russell 2000 (-1.2%) dropped 1%, posting its sixth straight decline and closing below its 200-day moving average (2152) for the first time since last September.
In early action, the S&P 500 was down 0.7% amid wide-ranging concerns surrounding supply chain disruptions, vaccine efficacy, economic growth rates, the Fed's taper timeline, and an extended pullback.
Most stocks succumbed to the early selling pressure, as declining issues outpaced advancing issues by more than a 2:1 margin at the NYSE and Nasdaq. The S&P 500 energy sector (-2.7%) was easily the weakest performer, losing 2.7% as oil prices ($63.69/bbl, -1.75, -2.7%) continued to decline. The other cyclical sectors declined by less than 1.0%.
The large-cap indices didn't truly reflect the underlying weakness because the mega-caps quickly turned it around. The Vanguard Mega Cap Growth ETF (MGK 239.29, +0.96, +0.4%) gained 0.4% after being down 0.8% at the open while the top-weighted information technology sector (+1.0%) gained 1.0%.
Microsoft (MSFT 296.77, +6.04, +2.1%) rose 2% to record highs on no specific news while NVIDIA (NVDA 197.98, +7.58, +4.0%) rose 4% following its better-than-expected earnings report and upbeat revenue guidance. Cisco (CSCO 57.27, +2.12, +3.8%) was another technology standout following its earnings report.
The counter-cyclical consumer staples (+0.9%), real estate (+0.9%), health care (+0.5%), and utilities (+0.4%) sectors also supported the cause, illustrating a defensive mindset.
Interestingly, growth concerns persisted despite initial and continuing claims improving on a weekly basis, and the Conference Board's Leading Economic Index (LEI) increasing 0.9% in July (Briefing.com consensus 0.8%). Weekly initial jobless claims were better than expected at 348,000 (Briefing.com consensus 370,000).
The 10-yr yield decreased three basis points to 1.24%. The 2-yr yield was unchanged at 0.21%. The U.S. Dollar Index advanced 0.5% to 93.57.
Reviewing Thursday's economic data:
For the week ending August 14, initial claims decreased 29,000 to 348,000 (Briefing.com consensus 370,000), which is the lowest reading since March 14, 2020. Continuing claims for the week ending August 7 decreased 79,000 to 2.82 million, which is also the lowest level since March 14, 2020.
The key takeaway from the report is that it covers the week in which the survey for the employment report is conducted, so the reduced (and improved) level of initial claims should help drive expectations for another strong increase in nonfarm payrolls in August.
The Conference Board's Leading Economic Index (LEI) increased 0.9% in July (Briefing.com consensus 0.8%) after increasing a downwardly revised 0.5% (from 0.7%) in June.
The key takeaway from the report is that overall growth was widespread, with all 10 indicators making positive contributions.
There is no economic data scheduled for Friday.
S&P 500 +17.3% YTD
Dow Jones Industrial Average +14.0% YTD
Nasdaq Composite +12.8% YTD
Russell 2000 +8.0% YTD
WTI crude futures drop and weigh on energy stocks
19-Aug-21 15:25 ET
Dow +1.63 at 34962.32, Nasdaq +43.10 at 14569.00, S&P +13.23 at 4413.50
[BRIEFING.COM] The S&P 500 is up 0.3% along with the Nasdaq Composite (+0.3%).
One last look at the S&P 500 sectors shows six trading higher and five trading lower. The information technology sector (+1.2%) leads the way with a gain over 1.0%, followed by the counter-cyclical/defensive-oriented sectors. Conversely, the energy sector (-2.7%) leads the cyclical sectors lower with a 2.7% decline.
WTI crude futures settled sharply lower by 2.7%, or $1.75, to $63.69/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34960.69 -382.59 (-1.08%)
Nasdaq 14525.90 -130.27 (-0.89%)
SP 500 4400.27 -47.81 (-1.07%)
10-yr Note -1/32 1.276
NYSE Adv 915 Dec 2284 Vol 798.6 mln
Nasdaq Adv 1703 Dec 2554 Vol 3.8 bln
Industry Watch
Strong: Consumer Discretionary
Weak: Energy, Health Care, Information Technology
Moving the Market
-- Stocks slumped into the close on no specific catalyst
-- FOMC Minutes from the July meeting were in-line with recent commentary: tapering should begin later this year after substantial further progress has been met
-- Mixed housing data
-- Some relief in retail stocks amid earnings news
Stocks slump into the close
18-Aug-21 16:15 ET
Dow -382.59 at 34960.69, Nasdaq -130.27 at 14525.90, S&P -47.81 at 4400.27
[BRIEFING.COM] The S&P 500 fell 1.1% on Wednesday amid a flush of selling interest into the close on no specific news. The market traded relatively flat for most of the day, as investors digested earnings news from retailers, mixed economic data, and a July FOMC Minutes report that was largely in-line with expectations.
The Nasdaq Composite (-0.9%), Dow Jones Industrial Average (-1.1%), and Russell 2000 (-0.8%) declined between 0.8-1.1%.
Eight of the 11 S&P 500 sectors declined at least 1.0%, including energy (-2.4%), which fell more than 2.0%. The consumer discretionary sector (+0.2%) was the lone holdout amid some relief in retail stocks and Tesla (TSLA 688.99, +23.28, +3.5%).
Retail stocks drew support from better-than-expected earnings reports from Lowe's (LOW 199.70, +17.44, +9.6%), Target (TGT 247.95, -7.10, -2.8%), and TJX Cos. (TJX 73.31, +4.36, +6.0%). In addition, Lowe's raised its FY22 revenue guidance above consensus, and Target's CEO said he hasn't seen any slowdown due to the Delta variant. TGT shares closed lower, though.
The broader market didn't really react to the earnings news or to mixed housing starts and building permits data for July. Briefly, total housing starts were weaker than expected at 1.534 million units (Briefing.com consensus 1.610 million) while building permits were better than expected at 1.635 million (Briefing.com consensus 1.610 million). Both figures are seasonally adjusted annual rates.
Instead, there was a slight overreaction to the FOMC Minutes from the July meeting, which indicated that several Fed members thought tapering should begin later this year after substantial further progress has been met. This was in-line with recent Fed commentary when the market was hitting all-time highs.
The major indices briefly pushed toward session highs immediately following the minutes at 2:00 p.m. ET, then quickly turned around. The bulk of the selling interest happened well after the minutes were released. It's worth mentioning that trading volume at the NYSE was on the lighter side, which might have contributed to the weak price action.
The Treasury market was well behaved throughout the session. The 10-yr yield increased two basis points to 1.27%, and the 2-yr yield was unchanged at 0.21%. The U.S. Dollar Index was little changed at 93.15. WTI crude futures fell 1.7%, or $1.16, to $65.44/bbl, which reflecting lingering growth concerns.
Reviewing Wednesday's economic data:
Total housing starts declined 7.0% month-over-month to a seasonally adjusted annual rate of 1.534 million units (Briefing.com consensus 1.610 million) while building permits increased 2.6% month-over-month to a seasonally adjusted annual rate of 1.635 million (Briefing.com consensus 1.610 million).
The key takeaway from the report is that permits and starts for single-family units both declined, which speaks to some of the resistance of prospective buyers to high prices and some of the hesitancy to build new homes due to the high costs for materials, land, and labor.
The weekly MBA Mortgage Applications Index decreased 3.9% following a 2.8% increase in the prior week.
Weekly crude oil inventories decreased by 3.23 mln barrels after decreasing by 447,000 barrels during the previous week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Conference Board's Leading Economic Index for August, and the Philadelphia Fed Index for August on Thursday.
S&P 500 +17.2% YTD
Dow Jones Industrial Average +14.2% YTD
Nasdaq Composite +12.7% YTD
Russell 2000 +9.3% YTD
Crude futures settle lower, weigh on energy stocks
18-Aug-21 15:30 ET
Dow -206.37 at 35136.91, Nasdaq -34.42 at 14621.75, S&P -23.48 at 4424.60
[BRIEFING.COM] The S&P 500 is trading lower by 0.4% near session lows.
One last look at the S&P 500 sectors shows energy (-1.6%), health care (-1.1%), and consumer staples (-1.1%) sectors down more than 1.0% while the consumer discretionary sector (+0.6%) sectors is the only sector trading higher.
WTI crude futures settled lower by 1.7%, or $1.16, to $65.44/bbl. On a related note, weekly crude oil inventories decreased by 3.23 mln barrels after decreasing by 447,000 barrels during the previous week.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35343.28 -282.12 (-0.79%)
Nasdaq 14656.17 -137.58 (-0.93%)
SP 500 4448.08 -31.63 (-0.71%)
10-yr Note +2/32 1.253
NYSE Adv 902 Dec 2365 Vol 802.6 mln
Nasdaq Adv 1295 Dec 3055 Vol 4.1 bln
Industry Watch
Strong: Health Care
Weak: Consumer Discretionary, Financials, Industrials
Moving the Market
-- Home Depot (HD) falls 5% despite beating EPS estimates
-- Retail sales report for July was weaker than expected but industrial production for July was better than expected
-- Lingering Delta/growth concerns
S&P 500 and Dow snap winning streaks
17-Aug-21 16:20 ET
Dow -282.12 at 35343.28, Nasdaq -137.58 at 14656.17, S&P -31.63 at 4448.08
[BRIEFING.COM] The stock market struggled on Tuesday, with the S&P 500 (-0.7%) and Dow Jones Industrial Average (-0.8%) snapping five-session winning streaks. The Nasdaq Composite (-0.9%) and Russell 2000 (-1.2%) underperformed and declined closer to 1.0%, but the major indices did close off session lows on no specific news.
The market had a lot to chew on, including a 1.1% m/m decline in total retail sales for July (Briefing.com consensus -0.2%), a disappointing earnings reaction in Home Depot (HD 320.75, -14.30, -4.3%), another day of discouraging reports on the Delta variant, and a step taken from China to crack down on unfair Internet competition.
These were clear headwinds for shares of retailers and Chinese companies (China's Shanghai Composite fell 2.0% on Tuesday) while the broader market was caught up in growth concerns and expectations for a pullback. Weaker prices for oil ($66.61/bbl, -0.73, -1.1%) and copper ($4.21/lb, -0.12, -2.8%) corroborated growth concerns.
Despite the late comeback effort, the consumer discretionary sector (-2.3%) was still held back by Home Depot and its mega-cap components, while the materials (-1.2%) and industrials (-1.1%) sectors declined about 1%. The health care sector (+1.1%) was impressive with its 1.1% gain.
Homebuilding stocks were additionally pressured by a relatively disappointing NAHB Housing Market Index for August, which decreased to 75 (Briefing.com consensus 80.0) from 80 in July. The iShares US Home Construction ETF (ITB 71.19, -2.61, -3.5%) dropped 3.5%.
Strikingly, the Treasury market didn't seem too concerned about growth, and longer-dated yields even bounced off lows after the weaker-than-expected retail sales report. A better-than-expected industrial production report for July might have been a supportive factor.
The 10-yr yield settled unchanged at 1.26% after trading at 1.22% prior to the open. The 2-yr yield increased one basis point to 0.21%. The U.S. Dollar Index increased 0.5% to 93.12.
Walmart (WMT 150.70, -0.05, -0.03%) fared slightly better than the overall market after the company beat top and bottom-line estimates and issued upbeat FY22 EPS guidance. WMT shares closed fractionally lower despite the good news.
Reviewing Tuesday's economic data:
Total retail sales declined 1.1% month-over-month (Briefing.com consensus -0.2%) following an upwardly revised 0.7% increase (from 0.6%) in June. Excluding autos, retail sales declined 0.4% month-over-month (Briefing.com consensus +0.2%) following an upwardly revised 1.6% increase (from +1.3%) in June.
The key takeaway from the report is that there were declines in most retail categories. One notable exception was food services and drinking places (+1.7%), which just might be leading market participants to think that the impact of the Delta variant on the consumer's psyche isn't as bad as feared/reported and that there will be even more robust activity following any future data point that suggests Delta-related cases are peaking.
Total industrial production increased 0.9% in July (Briefing.com consensus 0.5%) following a downwardly revised 0.2% increase in June (from 0.4%). The capacity utilization rate increased to 76.1% (Briefing.com consensus 75.7%) from an unrevised 75.4% in June.
The key takeaway from the report is that it showed the potential for increased industrial production activity when the automobile semiconductor shortage issue can get worked out.
Business Inventories increased 0.8% m/m in June (Briefing.com consensus 0.8%) following an upwardly revised 0.6% increase (from 0.5%) in May.
The NAHB Housing Market Index for August decreased to 75 (Briefing.com consensus 80.0) from 80 in July.
Looking ahead, investors will receive Housing Starts and Building Permits for July, the FOMC Minutes from the July meeting, and the weekly MBA Mortgage Applications Index on Wednesday.
S&P 500 +18.4% YTD
Dow Jones Industrial Average +15.5% YTD
Nasdaq Composite +13.7% YTD
Russell 2000 +10.2% YTD
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35625.40 +110.02 (0.31%)
Nasdaq 14793.75 -29.14 (-0.20%)
SP 500 4479.71 +11.71 (0.26%)
10-yr Note +25/32 1.250
NYSE Adv 1149 Dec 2106 Vol 751.8 mln
Nasdaq Adv 1392 Dec 2974 Vol 3.9 bln
Industry Watch
Strong: Utilities, Consumer Staples, Health Care, Information Technology
Weak: Energy, Consumer Discretionary, Financials, Materials
Moving the Market
-- S&P 500 and Dow recover early losses and close at record highs for the fifth straight session
-- Relatively disappointing economic data, geopolitical uncertainty, talk of taper plan
-- Relative strength in the defensive-oriented sectors and the top-weighted information technology sector
S&P 500 and Dow recover losses and close at record highs
16-Aug-21 16:15 ET
Dow +110.02 at 35625.40, Nasdaq -29.14 at 14793.75, S&P +11.71 at 4479.71
[BRIEFING.COM] The S&P 500 (+0.3%) and Dow Jones Industrial Average (+0.3%) eked out intraday and closing record highs on Monday after being down as much as 0.7-0.8% in the morning. This was the fifth straight session they set record highs. The Nasdaq Composite (-0.2%) closed slightly lower while the Russell 2000 fell 0.9%.
Over the weekend and prior to the open, China reported softer-than-expected retail sales, fixed asset investment, and industrial production data for July; the Empire State Manufacturing Survey for August came in weaker than expected; the Taliban seized control of Afghanistan; and CNBC reported the Fed could start tapering as soon as October, depending on the next employment report.
Interestingly, the futures market was down very modestly, suggesting it wasn't overly concerned about the negative-sounding news flow or the continued spread of the Delta variant in the U.S.
The overreaction came in the first 90 minutes of action: the S&P 500 information technology sector declined as much as 1.1%, oil prices ($67.34, -0.47, -0.7%) declined as much as 4%, and the 10-yr yield declined as many as six basis points to 1.24%.
The rest of the session saw a steady, and mechanical, advance in the large-cap indices as investors bought the dip on no specific news. The technology sector closed higher by 0.4% amid record-setting gains in Apple (AAPL 151.12, +2.02, +1.4%) and Microsoft (MSFT 294.60, +1.75, +0.6%).
The health care (+1.1%), utilities (+0.7%), and consumer staples (+0.6%) sectors outperformed the tech sector and the benchmark index. Conversely, the energy (-1.8%), materials (-0.5%), consumer discretionary (-0.4%), and financials (-0.2%) sectors closed lower.
Energy stocks struggled, even as oil prices pared losses after OPEC+ rejected calls from the U.S. to speed up production, according to Reuters.
Tesla (TSLA 686.17, -31.00, -4.3%) was an individual laggard, falling 4% after confirming that the National Highway Traffic Safety Administration (NHTSA) is investigating incidents in which TSLA vehicles crashed into first responder scenes.
The 10-yr yield settled lower by four basis points to 1.26%, which reflected lingering growth concerns. The 2-yr yield decreased two basis points to 0.20%. The U.S. Dollar Index increased 0.1% to 92.62.
Reviewing Monday's economic data, the Empire State Manufacturing for August decelerated to 18.3 (Briefing.com consensus 26.0) from 43.0 in July. Looking ahead, investors will receive Retail Sales for July, Industrial Production and Capacity Utilization for July, Business Inventories for June, and the NAHB Housing Market Index for August on Tuesday.
S&P 500 +19.3% YTD
Dow Jones Industrial Average +16.4% YTD
Nasdaq Composite +14.8% YTD
Russell 2000 +11.6% YTD
Crude futures
16-Aug-21 15:30 ET
Dow +58.07 at 35573.45, Nasdaq -40.01 at 14782.88, S&P +6.14 at 4474.14
[BRIEFING.COM] The S&P 500 is up 0.1% while the Russell 2000 still trades lower by 0.7%.
One last look at the S&P 500 sectors shows health care (+1.0%), utilities (+0.4%), consumer staples (+0.4%), and information technology (+0.3%) atop the leaderboard. Conversely, the energy (-1.7%), materials (-0.5%), consumer discretionary (-0.4%), and financials (-0.3%) sectors trade lower.
WTI crude futures settled lower by $0.47 (-0.7%) to $67.34 per barrel. Crude futures were down 4% earlier in the day but recovered amid news that OPEC+ doesn't want to speed up production like the U.S. wants it to.
Stock Market Update
https://www.briefing.com/stock-market-update
Market Snapshot
Dow 35515.38 +15.53 (0.04%)
Nasdaq 14822.89 +6.64 (0.04%)
SP 500 4468.00 +7.17 (0.16%)
10-yr Note +18/32 1.297
NYSE Adv 1551 Dec 1689 Vol 640.1 mln
Nasdaq Adv 1562 Dec 2790 Vol 3.99 bln
Industry Watch
Strong: Health Care, Consumer Staples, Communication Services, Technology, Real Estate, Utilities
Weak: Energy, Consumer Discretionary, Financials, Industrials
Moving the Market
Preliminary reading of U of Michigan sentiment survey for August plunges to lowest level since late 2011
S&P 500 and Dow inching toward fresh record highs
Chipmakers bounce after this week's underperformance
S&P 500 and Dow Continue Record Run
13-Aug-21 16:20 ET
Dow +15.53 at 35515.38, Nasdaq +6.64 at 14822.89, S&P +7.17 at 4468.00
[BRIEFING.COM] The stock market ended the week on a mixed note, as the Dow (+0.04%) and S&P 500 (+0.2%) inched to fresh record highs while the Nasdaq (+0.04%) and Russell 2000 (-0.9%) underperformed.
The Friday session was subdued, with the S&P 500 bouncing inside an eight-point range. The Nasdaq spent the day just behind the benchmark index, continuing this week's trend, while weakness in small caps sent the Russell 2000 back to this week's low.
The market was undisturbed by reports from Washington that pointed to renewed uncertainty about the viability of two humongous spending bills. It also held its ground despite a big drop in the preliminary August Consumer Sentiment Survey from the University of Michigan. The survey fell to 70.2 from 81.2, stopping at its lowest level since late 2011 due to weakening sentiment about all aspects of the economy.
Seven sectors finished the day with gains that ranged from 0.1% (materials) to 0.8% (consumer staples). Top-weighted sectors like technology (+0.5%), financials (-0.7%), health care (+0.6%), and consumer discretionary (-0.3%) were mixed, which kept the broader market near the unchanged level throughout the day.
The communication services sector (+0.3%) received an early boost from Disney (DIS 181.08, +1.79, +1.0%). The media giant rallied to a three-month high in response to above-consensus results for Q3, but it spent the day in a steady pullback that trimmed its gain to 1.0% from 4.6% in morning trade.
The top-weighted technology sector returned into positive territory for the week (+0.1%) with some help from chipmakers. The PHLX Semiconductor Index climbed 0.7% to record its first gain since last Wednesday. The SOX Index narrowed this week's loss to 2.3% with leadership from AMD (AMD 110.55, +4.05, +3.8%), which revisited this week's high.
AMD was also the best performer in the broader tech sector while top components like Apple (AAPL 149.10, +0.21, +0.1%), Microsoft (MSFT 292.85, +3.04, +1.1%), and Visa (V 232.65, +0.86, +0.4%) recorded slimmer gains.
Consumer staples benefited from continued strength in Tyson Foods (TSN 81.91, +1.87, +2.3%) as the stock extended its post-earnings rally from Monday to an 18-month high.
Health care also helped the S&P 500 stay above its flat line thanks in large part to Pfizer (PFE 48.48, +1.24, +2.6%), which climbed back to its record high from Tuesday after the FDA expanded the emergency use authorization to allow for a third dose of the coronavirus vaccine in immunocompromised subjects. The news did not boost Moderna (MRNA 389.78, -1.64, -0.4%), which deepened its pullback from a record high.
Financials underperformed throughout the day as Treasuries recovered the bulk of their losses from this week, but the sector still gained 1.8% since last Friday. As for Treasuries, they rallied throughout the day with the pace slowing once the 10-yr yield was pressured back below its 200-day moving average (1.310%). The benchmark yield fell seven basis points to 1.30%.
Energy (-1.3%) finished at the bottom of the leaderboard alongside a $0.74, or 1.1%, drop in the price of crude oil to $68.37/bbl. WTI crude added $0.09 for the week.
Today's participation was well below average, as fewer than 650 mln shares changed hands at the NYSE floor.
Reviewing today's economic data:
The preliminary University of Michigan Consumer Sentiment Index for August had a shocking decline to 70.2 (Briefing.com consensus 81.6) from the final reading of 81.2 for July. That is below the April 2020 low of 71.8 and is one of the largest monthly declines over the past 50 years
The key takeaway from the report is that the plunge in consumer sentiment wasn't just related to concerns about the Delta variant. It was linked to all aspects of the economy, the report said, from personal finances to prospects for the economy, including inflation and unemployment. Moreover, the deteriorating sentiment was seen across income, age, and education subgroups, and observed across all regions.
Import prices increased 0.3% in July after increasing a revised 1.1% (from 1.0%) in June. Excluding oil, import prices were unchanged after increasing 0.7% in June. Export prices increased 1.3% after increasing 1.2% in June while export prices excluding agriculture rose 1.6% after rising 1.1% in June.
Monday's data will be limited to the 8:30 ET release of the Empire State Manufacturing Survey (prior 43.0) followed by June Net Long-Term TIC Flows (prior -$30.20 bln) at 16:00 ET.
S&P 500 +19.0% YTD
Dow Jones Industrial Average +16.0% YTD
Nasdaq Composite +15.0% YTD
Russell 2000 +12.6% YTD
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35499.85 +14.88 (0.04%)
Nasdaq 14816.25 +51.13 (0.35%)
SP 500 4460.83 +13.13 (0.30%)
10-yr Note -22/32 1.369
NYSE Adv 1474 Dec 1749 Vol 696.3 mln
Nasdaq Adv 1779 Dec 2533 Vol 3.9 bln
Industry Watch
Strong: Information Technology, Health Care
Weak: Energy, Materials, Industrials, Consumer Staples
Moving the Market
-- S&P 500 and Dow eke out intraday and closing record highs
-- Apple (AAPL) and Microsoft (MSFT) provided key leadership
-- PPI data for July was worse than feared
-- Weakness in semiconductor space after Micron (MU) received analyst downgrade
Market overlooks hot PPI data and gets a hand from the mega-caps
12-Aug-21 16:20 ET
Dow +14.88 at 35499.85, Nasdaq +51.13 at 14816.25, S&P +13.13 at 4460.83
[BRIEFING.COM] The S&P 500 (+0.3%) and Dow Jones Industrial Average (+0.04%) eked out another pair of intraday and closing record highs on Thursday. They were both down 0.3-0.4% in the morning following a Producer Price Index report for July that was worse than feared.
The Nasdaq Composite increased 0.4% as some money rotated back into large growth stocks, while the Russell 2000 (-0.3%) closed slightly lower.
Prior to the open, the Producer Price Index for final demand and the index for final demand, less food and energy, both increased 1.0% month-over month. The Briefing.com consensus was expecting 0.5% increases for both indices. On a year-over-year basis, they were running uncomfortably hot at 7.8% and 6.2%, respectively.
The higher prices for producers weren't an issue that seemed to worry the Treasury market, and in effect, the stock market due to a belief that inflation rates are peaking. The 10-yr yield increased three basis points to 1.37% after trading at 1.36% prior to the report. It's worth noting that initial and continuing claims both improved from the prior weeks.
Granted, there were more declining issues than advancing issues at the NYSE and Nasdaq, but what really mattered for the major indices was that the mega-cap stocks pulled their weight. Apple (AAPL 148.89, +3.03, +2.1%) and Microsoft (MSFT 289.81, +2.86, +1.0%) rose 2% and 1%, respectively, on no specific news.
The health care sector (+0.8%) was the best-performing sector, though, as weakness in the semiconductor stocks held back the information technology sector (+0.6%). The Philadelphia Semiconductor Index fell 1.1%. The energy (-0.5%), industrials (-0.2%), and materials (-0.2%) sectors also closed lower after outperforming the past two days.
The semiconductor space was pressured by weakness in Micron (MU 70.25, -4.78, -6.4%) after the stock was downgraded to Equal-Weight from Overweight at Morgan Stanley. The firm observed that DRAM conditions are losing steam.
Recapping some other moves, the 2-yr yield increased one basis point to 0.22%, the U.S. Dollar Index increased 0.1% to 92.99, and WTI crude futures decreased 0.2%, or $0.16, to $69.11/bbl. On a related note, the IEA cut its 2021 global oil demand forecast due to the spread of the Delta variant.
Reviewing Thursday's economic data:
The Producer Price Index for final demand increased 1.0% month-over-month in July (Briefing.com consensus 0.5%) on the heels of a 1.0% increase in June. The index for final demand, less foods and energy, also increased 1.0% month-over-month (Briefing.com consensus 0.5%), matching a similar increase in June. On a year-over-year basis, the Producer Price Index for final demand was up 7.8% on an unadjusted basis, versus 7.3% in June. That is the largest advance since it was first calculated in November 2010. The index for final demand, less foods and energy, was up 6.2% versus 5.6% in June.
The key takeaway from the report is that producers are clearly paying higher prices, which could translate into profit margin pressure if they are not successful in passing through price increases to customers that offset their higher costs.
Initial claims for the week ending August 7 decreased by 12,000 to 375,000 (Briefing.com consensus 383,000) while continuing claims for the week ending July 31 decreased by 114,000 to 2.866 million.
The key takeaway from this report is the decrease in both initial claims and continuing claims, as that is on point with an improving economy that is in need of more workers to fill open positions.
Looking ahead, investors will receive the preliminary University of Michigan Index of Consumer Sentiment for August and Export/Import Prices for July on Friday.
S&P 500 +18.8% YTD
Dow Jones Industrial Average +16.0% YTD
Nasdaq Composite +15.0% YTD
Russell 2000 +13.7% YTD
Crude futures settle lower
12-Aug-21 15:25 ET
Dow -6.66 at 35478.31, Nasdaq +48.37 at 14813.49, S&P +11.82 at 4459.52
[BRIEFING.COM] The S&P 500 is up 0.3% and on track to close at a record high. The Dow trades flat and any positive finish would be good for a record close.
One last look at the sector standings shows health care (+0.8%) and information technology (+0.6%) leading the advance, while the energy (-0.6%) and industrials (-0.3%) sectors underperform in the red.
WTI crude futures settled lower by 0.2%, or $0.16, to $69.11/bbl. On a related note, the IEA cut its 2021 global oil demand forecast due to the spread of the Delta variant.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35484.44 +219.77 (0.62%)
Nasdaq 14765.12 -22.95 (-0.16%)
SP 500 4447.74 +10.99 (0.25%)
10-yr Note -1/32 1.360
NYSE Adv 2175 Dec 1059 Vol 750.0 mln
Nasdaq Adv 2345 Dec 1977 Vol 3.9 bln
Industry Watch
Strong: Materials, Financials, Industrials, Utilities, Energy
Weak: Health Care
Moving the Market
-- S&P 500 and Dow close at record highs in cyclically-driven session
-- July CPI report was better than feared
-- Very strong 10-yr note auction
-- Value outperformed growth stocks
S&P 500 and Dow close at record highs as CPI data calms inflation fears
11-Aug-21 16:15 ET
Dow +219.77 at 35484.44, Nasdaq -22.95 at 14765.12, S&P +10.99 at 4447.74
[BRIEFING.COM] The S&P 500 (+0.3%) and Dow Jones Industrial Average (+0.6%) set intraday and closing record highs on Wednesday, as value/cyclical stocks continued to sport a bullish bias following a better-than-feared Consumer Price Index (CPI) report for July.
The Russell 2000 increased 0.5% after being down as much as 0.8% intraday. The Nasdaq Composite, however, declined 0.2% along with the Russell 1000 Growth Index (-0.2%).
Specifying the data, total CPI increased 0.5% m/m in July, as expected, while core CPI, which excludes food and energy, increased 0.3% m/m (Briefing.com consensus 0.4%). On a year-over-year basis, total CPI was unchanged at 5.4% and core CPI moderated to 4.3% from 4.5%.
The data supported the narrative that inflation rates are peaking, yet the inflation-sensitive 10-yr yield was trading higher for the sixth straight session after the report. It took a very strong 10-yr note auction to bring it back down to its unchanged mark of 1.34% after it traded at 1.37% intraday.
Some rate discomfort might have contributed to the underperformance of the growth stocks, but a willingness to stay invested helped money flow into the value/cyclical stocks. The S&P 500 materials (+1.4%), industrials (+1.3%), and financials (+1.2%) sectors increased by at least 1.0% on Wednesday.
Interestingly, the health care sector (-1.0%) was the only sector in the S&P 500 that closed lower, largely due to weakness in Pfizer (PFE 46.31, -1.88, -3.9%) and Moderna (MRNA 385.33, -71.43, -15.6%). MRNA pulled back 15.6% after doubling between July 9 and August 9. PFE gained about 20% over the past month.
Southwest Air (LUV 51.84, +0.73, +1.4%) issued downside Q3 revenue guidance as the Delta variant caused a deceleration in close-in bookings and an increase in close-in trip cancellations this month. LUV and other airline stocks still posted decent gains, as the news may have been expected since airline share prices had struggled since June.
Separately, Kansas City Fed President George (2022 voter) and Dallas Fed President Kaplan (2023 voter) suggested the Fed should consider tapering asset purchases sooner rather than later, echoing comments from Atlanta Fed President Bostic (2021 voter) and Boston Fed President Rosengren (2022 voter) earlier this week.
The 2-yr yield decreased two basis points to 0.21%. The U.S. Dollar Index decreased 0.2% to 92.90. WTI crude futures rose 1.4%, or $0.94, to $69.27/bbl.
Reviewing Wednesday's economic data:
Total CPI, driven by increases in the indexes for shelter, food, energy, and new vehicles, increased 0.5% month-over-month in July, as expected, while core CPI, which excludes food and energy, rose 0.3% (Briefing.com consensus 0.4%). On a year-over-year basis, total CPI was unchanged at 5.4% and core CPI moderated to 4.3% from 4.5%.
The key takeaway for the market is the moderation in the year-over-year readings, which feeds into the "peak inflation" narrative. That is, the stock market is taking some comfort in the notion that inflation pressures might not be as pronounced in coming months.
The Treasury Budget for July showed a $302.1 bln deficit, versus a $63.0 bln deficit in the same period a year ago. The budget data is not seasonally adjusted, so the July deficit can't be compared to the June deficit of $174.2 bln.
July marked the 22nd consecutive month that the Treasury has seen a budget deficit.
The weekly MBA Mortgage Applications Index increased 2.8% following a 1.7% decline in the prior week.
Looking ahead, investors will receive the Producer Price Index for July and the weekly Initial and Continuing Claims report on Thursday.
S&P 500 +18.4% YTD
Dow Jones Industrial Average +15.9% YTD
Nasdaq Composite +14.6% YTD
Russell 2000 +14.0% YTD
Crude futures settle higher
11-Aug-21 15:25 ET
Dow +232.44 at 35497.11, Nasdaq -29.40 at 14758.67, S&P +10.70 at 4447.45
[BRIEFING.COM] The S&P 500 is trading higher by 0.2% amid gains in ten of its 11 sectors.
One last look at the sector standings shows materials (+1.3%), industrials (+1.1%), and financials (+1.0%) leading the advance with gains of at least 1.0% while the health care sector trades lower by 0.9%.
WTI crude futures settled higher by 1.4%, or $0.94, to $69.27/bbl. On a related note, weekly crude oil inventories decreased by 447,000 barrels after increasing by 3.63 mln barrels during the previous week.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35264.67 +162.82 (0.46%)
Nasdaq 14788.07 -72.09 (-0.49%)
SP 500 4436.75 +4.40 (0.10%)
10-yr Note -2/32 1.344
NYSE Adv 1760 Dec 1506 Vol 792.0 mln
Nasdaq Adv 2036 Dec 2260 Vol 3.9 bln
Industry Watch
Strong: Energy, Materials, Financials, Industrials
Weak: Information Technology, Health Care, Real Estate
Moving the Market
-- S&P 500 and Dow set intraday and closing record highs
-- Senate passes $1 trillion bipartisan infrastructure bill and votes to begin debate on the $3.5 trillion budget resolution plan
-- Value stocks outperformed at expense of the growth stocks
-- Treasury yields and oil prices increased
S&P 500 and Dow eke out record highs while Nasdaq slips
10-Aug-21 16:20 ET
Dow +162.82 at 35264.67, Nasdaq -72.09 at 14788.07, S&P +4.40 at 4436.75
[BRIEFING.COM] The S&P 500 (+0.1%) and Dow Jones Industrial Average (+0.5%) set intraday and closing record highs on Tuesday, as value/cyclical stocks outperformed at the expense of the growth stocks. The Russell 2000 increased 0.2%, while the Nasdaq Composite (-0.5%) was dragged lower by its technology components.
The major development today was the Senate passing the $1 trillion bipartisan infrastructure bill, as widely expected, and voting to begin debate on the $3.5 trillion budget resolution plan. As a reminder, House Speaker Pelosi said she won't bring the infrastructure bill to a vote unless the $3.5 trillion package is passed.
Prior to the decision late morning, there was already a pro-growth sentiment in the market: cyclical stocks were in the leadership positions, Treasury yields across the curve were trading modestly higher, and oil prices ($68.33/bbl, +1.78, +2.7%) were rebounding 3%.
There was little progress in the market for the rest of the session, as the growth stocks struggled amid the higher interest rates and rotational pressure.
The S&P 500 energy (+1.7%), materials (+1.5%), industrials (+1.0%), and financials (+1.0%) sectors finished with gains of at least 1.0%. Conversely, the information technology sector (-0.7%) -- the market's most heavily-weighted sector -- declined 0.7% and was joined by the real estate (-1.1%) and health care (-0.2%) sectors in the red.
Semiconductor stocks saw increased selling interest amid an industry report that indicated expectations for PC DRAM prices to decline by up to 5% qtr/qtr in the fourth quarter. The Philadelphia Semiconductor Index fell 1.2%.
Kansas City Southern (KSU 289.75, +20.15, +7.5%), meanwhile, was one of today's story stocks after Canadian Pacific (CP 72.21, -0.50, -0.7%) increased its bid to acquire KSU for $300 per share in cash and stock. KSU shares rose 7.5%.
Specifying the moves in the Treasury market, the 2-yr yield increased three basis points to 0.23%, and the 10-yr yield increased three basis points to 1.34%. The U.S. Dollar Index increased 0.1% to 93.07 and closed at its highest level since March.
Reviewing Tuesday's economic data:
Productivity was up a weaker than expected 2.3% in the second quarter (Briefing.com consensus 3.4%) and unit labor costs increased a lower than expected 1.0% (Briefing.com consensus 1.1%). That followed a downward revision to Q1 productivity to 4.3% (from 5.4%) and unit labor costs to -2.8% (from 1.7%).
The key takeaway from the report is the tame unit labor cost data. This is a number that Fed Chair Powell watches closely to help determine if rising wages are feeding into broader price inflation.
The NFIB Small Business Optimism Index for July decreased to 99.7 from 102.5 in June.
Looking ahead, investors will receive the Consumer Price Index for July, the Treasury Budget for July, and the weekly MBA Mortgage Applications Index on Wednesday.
S&P 500 +18.1% YTD
Dow Jones Industrial Average +15.2% YTD
Nasdaq Composite +14.7% YTD
Russell 2000 +13.4% YTD
Crude futures rebound 3%
10-Aug-21 15:30 ET
Dow +160.25 at 35262.10, Nasdaq -66.22 at 14793.94, S&P +4.84 at 4437.19
[BRIEFING.COM] The S&P 500 is up 0.1% and is trying to close at a record high.
One last look at the sector standings shows energy (+1.7%), materials (+1.6%), industrials (+1.0%), and financials (+1.0%) leading the market in gains. Conversely, the information technology (-0.7%), real estate (-0.9%), and health care (-0.2%) sectors underperform in the red.
WTI crude futures settled higher by 2.7%, or $1.78, to $68.33/bbl after entering the session with a 10% monthly decline.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35101.85 -106.66 (-0.30%)
Nasdaq 17277.74 +2442.00 (16.46%)
SP 500 4432.35 -4.17 (-0.09%)
10-yr Note +23/32 1.284
NYSE Adv 1231 Dec 2015 Vol 736.6 mln
Nasdaq Adv 2059 Dec 2253 Vol 4.1 bln
Industry Watch
Strong: Health Care, Consumer Staples, Financials
Weak: Energy, Real Estate, Information Technology
Moving the Market
-- Mixed session that lacked trading conviction
-- Growth concerns lingered as oil and copper prices continued to weaken
-- Treasury yields turned around and settled higher
S&P 500 closes slightly lower amid lack of conviction
09-Aug-21 16:20 ET
Dow -106.66 at 35101.85, Nasdaq +2442.00 at 17277.74, S&P -4.17 at 4432.35
[BRIEFING.COM] The S&P 500 decreased 0.1% on Monday in a mixed, and tight-ranged, session that lacked conviction. The Dow Jones Industrial Average (-0.3%) and Russell 2000 (-0.6%) joined the benchmark index in negative territory, while the Nasdaq Composite increased 0.2%.
There weren't that many new macro developments, which might have explained the 15-point range in the S&P 500 as investors preferred to wait for key inflation data later this week. Seven of the 11 S&P 500 sectors closed lower, although the energy sector (-1.5%) was the only sector that lost more than 1.0%.
Energy stocks succumbed to weaker oil prices ($66.55/bbl, -1.73, -2.5%), which along with copper prices ($4.29/lb, -0.07, -1.3%) reflected lingering growth concerns attributed to the Delta variant. Media reports continued to discuss the spread of the variant and the measures that governments and businesses are taking to contain its spread.
The Treasury market, meanwhile, didn't reflect increased growth concerns since the 10-yr yield settled three basis points higher at 1.32% after touching 1.27% intraday. The financials sector (+0.3%) benefited from the positive turnaround and was accompanied by the health care (+0.4%) and consumer staples (+0.3%) sectors atop the leaderboard.
Looking at individual movers, Moderna (MRNA 484.47, +70.75, +17.1%) surged 17% amid positive momentum, Tesla (TSLA 713.76, +14.66, +2.1%) rose 2% after receiving an upgrade to Buy from Hold at Jefferies, Coinbase (COIN 280.47, +22.21, +8.6%) followed cryptocurrencies higher, and Tyson Foods (TSN 77.30, +6.18, +8.7%) rose 9% following its earnings report.
In M&A news, Sanderson Farms (SAFM 195.88, +13.51, +7.4%) agreed to be acquired by Cargill and Continental Grain Company for $4.5 billion, or $203/share, in cash. Golden Nugget Online Gaming (GNOG 18.50, +6.23, +50.8%) agreed to be acquired by DraftKings (DKNG 52.36, +0.77, +1.5%) in an all-stock transaction valued at $1.56 billion.
Separately, the $1 trillion bipartisan infrastructure bill is expected to pass the Senate as soon as tonight, although House Speaker Pelosi reaffirmed she won't bring the bill to a House vote unless the $3.5 trillion budget reconciliation bill is passed.
The 2-yr yield was unchanged at 0.20%. The U.S. Dollar Index increased 0.2% to 92.98.
Monday's economic data was limited to the JOLTS report for June, which showed job openings increase to a record-high of 10.073 million from a revised 9.483 million (from 9.209 million) in May. Looking ahead, investors will receive preliminary Q2 Productivity and Unit Labor Costs and the NFIB Small Business Optimism Index for July on Tuesday.
S&P 500 +18.1% YTD
Nasdaq Composite +15.1% YTD
Dow Jones Industrial Average +15.0% YTD
Russell 2000 +13.2% YTD
Crude futures settle below $67 per barrel
09-Aug-21 15:30 ET
Dow -98.74 at 35109.77, Nasdaq +31.05 at 14866.79, S&P -3.79 at 4432.73
[BRIEFING.COM] The S&P 500 is down 0.1% and could miss out on another record close. Any positive finish would be a record for the benchmark index.
One last look at the sectors performances shows energy (-1.2%), utilities (-0.6%), and real estate (-0.5%) leading the market lower, while the financials (+0.5%), consumer staples (+0.3%), and health care (+0.3%) sectors trade higher.
WTI crude futures settled lower by 2.5%, or $1.73, to $66.55/bbl amid lingering demand concerns.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34792.67 -323.73 (-0.92%)
Nasdaq 14780.52 +19.24 (0.13%)
SP 500 4402.66 -20.49 (-0.46%)
10-yr Note 0/32 1.174
NYSE Adv 1073 Dec 2157 Vol 886.2 mln
Nasdaq Adv 1551 Dec 2726 Vol 4.3 bln
Industry Watch
Strong: Information Technology, Communication Services
Weak: Energy, Industrials, Consumer Staples
Moving the Market
-- Consolidation activity and signs of fatigue, although there were pockets of excess speculation
-- 10-yr yield rebounds after July ISM Non-Manufacturing Index hit record high
-- ADP Employment Change report for July missed expectations by a wide margin
Nasdaq escapes with a gain in tired session
04-Aug-21 16:15 ET
Dow -323.73 at 34792.67, Nasdaq +19.24 at 14780.52, S&P -20.49 at 4402.66
[BRIEFING.COM] The S&P 500 decreased 0.5% on Wednesday in a tired session. The more interesting action happened in the Treasury market, shares of Robinhood Markets (HOOD 70.39, +23.59, +50.4%), and a handful of other technology-related stocks in the Nasdaq Composite (+0.1%).
The Nasdaq ended the session in positive territory, while the Dow Jones Industrial Average (-0.9%) and Russell 2000 (-1.2%) underperformed the S&P 500.
Starting with the Treasury market since it's more tied to economic matters, the 10-yr yield traded as low as 1.13% after the July ADP Employment Change report missed expectations by a wide margin, stirring concerns about the Employment Situation report on Friday. The ADP estimated that private-sector payrolls increased by 330,000 in July (Briefing.com consensus 650,000).
The 10-yr yield then jumped to 1.21% after the release of the July ISM Non-Manufacturing Index at 10:00 a.m. ET, which increased to a record high of 64.1% (Briefing.com consensus 60.5%). The 10-yr yield settled the session at 1.18%, or one basis point above yesterday's settlement.
The price action in the S&P 500 was more subdued amid continued consolidation activity (even though it eked out a record close yesterday). Nine of the 11 S&P 500 sectors closed lower, including energy (-2.9%), industrials (-1.4%), and consumer staples (-1.3%) with losses over 1.0%.
Energy stocks followed oil prices ($68.16, -2.41, -3.4%) lower, while the communication services (+0.2%) and information technology (+0.2%) sectors were the only sectors that closed higher.
Robinhood, meanwhile, garnered a lot of media attention with its 50% gain that wasn't driven by any fundamental news. Interestingly, some of that frenzied activity carried over to Moderna (MRNA 419.05, +32.54, +8.4%), AMD (AMD 118.77, +6.21, +5.5%), and Zoom Video (ZM 400.58, +25.70, +6.9%), all of which climbed on heavy volume.
Facebook (FB 358.92, +7.68, +2.2%) was another standout, rising 2% on below-average volume. CVS Health (CVS 81.55, -2.45, -2.9%), General Motors (GM 52.72, -5.16, -8.9%), and Lyft (LYFT 49.53, -5.85, -10.6%), on the other hand, declined noticeably following their earnings reports.
Separately, Fed Vice Chair Clarida said he believes the necessary conditions for raising the target range for the fed funds rate will have been met by year-end 2022. The Fed-funds-sensitive 2-yr yield was unchanged at 0.17%. The U.S. Dollar Index increased 0.2% to 92.27.
Reviewing Wednesday's economic data:
The ISM Non-Manufacturing Index for July increased to 64.1% (Briefing.com consensus 60.5%) from 60.1% in June. The dividing line between expansion and contraction is 50.0%. The July reading is a record high, eclipsing the former high of 64.0% seen in May, and marks the fourteenth straight month of growth for the services sector.
The key takeaway from the report is the understanding that services sector activity is running at a record pace while prices aren't far behind. The report is a testament to the unleashing of pent-up demand, which is running headlong into supply challenges on the labor and product fronts.
The ADP Employment Change report estimated 330,000 jobs were added to private-sector payrolls in July, which was well below the Briefing.com consensus of 650,000. The June increase was downwardly revised to 680,000 from 692,000.
The final reading for the July IHS Markit Services PMI checked in at 59.9, which was slightly higher from the preliminary reading of 59.8.
The weekly MBA Mortgage Applications Index decreased 1.7% following a 5.7% gain in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report and the Trade Balance for June on Thursday.
S&P 500 +17.2% YTD
Nasdaq Composite +14.7% YTD
Dow Jones Industrial Average +13.7% YTD
Russell 2000 +11.2% YTD
Crude futures settle below $69 per barrel
04-Aug-21 15:30 ET
Dow -271.81 at 34844.59, Nasdaq +21.51 at 14782.79, S&P -14.55 at 4408.60
[BRIEFING.COM] The S&P 500 is down 0.3% while the Russell 2000 lags with a 1.2% decline.
One last look at the sector performances shows energy (-2.9%), consumer staples (-1.1%), and industrials (-1.1%) down more than 1.0%, with energy down 3% amid weaker oil prices. The information technology (+0.3%) and communication services (+0.3%) sectors trade higher.
WTI crude futures settled sharply lower by 3.4%, or $2.41, to $68.16/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35116.40 +278.24 (0.80%)
Nasdaq 14761.28 +80.23 (0.55%)
SP 500 4423.15 +35.99 (0.82%)
10-yr Note 0/32 1.180
NYSE Adv 1961 Dec 1276 Vol 818.3 mln
Nasdaq Adv 2059 Dec 2183 Vol 4.1 bln
Industry Watch
Strong: Utilities, Health Care, Industrials
Weak: Communication Services
Moving the Market
-- Stocks trading at session highs in a relatively broad-based advance at the large-cap level
-- Relative weakness in communication services sector
-- Treasury market holding steady
S&P 500 closes at a record high
03-Aug-21 16:20 ET
Dow +278.24 at 35116.40, Nasdaq +80.23 at 14761.28, S&P +35.99 at 4423.15
[BRIEFING.COM] The S&P 500 advanced 0.8% on Tuesday and closed at a record high. The Dow Jones Industrial Average kept pace with its own 0.8% gain, followed by more modest gains in the Nasdaq Composite (+0.6%) and Russell 2000 (+0.4%).
The market faded a positive start like yesterday, but today buyers appeared to step in after the 10-yr yield was able to hold above yesterday's intraday low (1.14%). It touched 1.15% before settling the session unchanged at 1.18%.
The equity gains were relatively broad-based at the large-cap level, as ten of the 11 S&P 500 sectors closed higher and the Invesco S&P 500 Equal Weight ETF (RSP 153.73, +1.28, +0.8%) gained 0.8%. Still, Apple (AAPL 147.36, +1.84, +1.3%), Microsoft (MSFT 287.12, +2.30, +0.8%), and Amazon.com (AMZN 3366.24, +34.76, +1.0%) pulled their weight and some.
The energy (+1.8%), industrials (+1.4%), health care (+1.4%), and financials (+1.1%) sectors stood atop the leaderboard with gains over 1.0%. Eli Lilly (LLY 255.99, +9.39, +3.8%) supported the health care sector following its mixed earnings report.
The communication services sector (-0.2%) was the lone holdout, pressured by weakness in Take-Two Interactive (TTWO 159.86, -13.35, -7.7%) after the company issued disappointing full-year guidance. On a related note, Chinese gaming stocks were hit by regulatory concerns.
Robinhood Markets (HOOD 46.80, +9.12, +24.2%) was another story stock, surging 24% on no specific news. HOOD shares closed the session up 41% from its low on IPO day last Thursday.
Overall, it was a resilient day given that declining issues slightly outnumbered advancing issues at the Nasdaq and given the uncertainty surrounding the Delta variant, infrastructure, and the Treasury market. The CBOE Volatility Index (18.04, -1.42, -7.3%) declined to the 18 level.
The 2-yr yield decreased one basis point to 0.17%. The U.S. Dollar Index was unchanged at 92.07. WTI crude futures decreased 1.0%, or $0.74, to $70.57/bbl.
Tuesday's economic data was limited to Factory Orders for June, which increased 1.5% (Briefing.com consensus +1.0%) following a revised 2.3% increase in May (from +1.7%).
Looking ahead, investors will receive the ISM Non-Manufacturing Index for July, the ADP Employment Change report for July, the final IHS Markit Services for July, and the weekly MBA Mortgage Applications Index on Wednesday.
S&P 500 +17.8% YTD
Dow Jones Industrial Average +14.7% YTD
Nasdaq Composite +14.5% YTD
Russell 2000 +12.6% YTD
Energy stocks rallying even with lower oil prices
03-Aug-21 15:30 ET
Dow +267.02 at 35105.18, Nasdaq +69.33 at 14750.38, S&P +34.20 at 4421.36
[BRIEFING.COM] The S&P 500 is trading at session highs with a 0.8% gain and is trading a couple points below its all-time closing record high.
One last look at the sectors shows energy (+1.7%), industrials (+1.4%), health care (+1.3%), and financials (+1.2%) leading the advance with gains over 1.0%. The communication services sector (-0.2%) is the only sector trading lower.
WTI crude futures settled lower by 1.0%, or $0.74, to $70.57/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34838.16 -97.31 (-0.28%)
Nasdaq 14681.05 +8.39 (0.06%)
SP 500 4387.16 -8.10 (-0.18%)
10-yr Note +1/32 1.215
NYSE Adv 1530 Dec 1730 Vol 835.0 mln
Nasdaq Adv 2159 Dec 2088 Vol 3.7 bln
Industry Watch
Strong: Utilities, Consumer Discretionary, Health Care
Weak: Materials, Industrials, Energy
Moving the Market
-- Stocks fade early gains as long-term rates dropped
-- 10-yr yield settled at 1.17% amid peak growth/inflation expectations
-- Mixed but expansionary manufacturing PMIs for July in the U.S., Asia, and Europe
Stocks fade early gains as Treasury yields drop
02-Aug-21 16:15 ET
Dow -97.31 at 34838.16, Nasdaq +8.39 at 14681.05, S&P -8.10 at 4387.16
[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (+0.1%), and Dow Jones Industrial Average (-0.3%) closed mixed and little changed on Monday, with risk sentiment pressured by a noticeable decline in long-term interest rates. The Russell 2000 lost 0.5% after being up 1.4% in early action, while the large-cap indices were up as much as 0.6-0.7% intraday.
The positive start was attributed to several factors: new inflows on the first trading day of the month; the Senate finalized the text of the $1 trillion bipartisan infrastructure bill; Square (SQ 272.38, +25.12, +10.2%) announced a $29 billion, all-stock acquisition of Australian company Afterpay; and July manufacturing activity in Asia and Europe remained in expansionary territory.
In the U.S., the July ISM Manufacturing Index marked the 14th straight month of expansion for the sector, but the index missed expectations and decelerated to 59.5% (Briefing.com consensus 60.7%) from 60.6% in June. The Prices Index of the report decreased to 85.7% from 92.1% while the construction spending report for June also missed expectations.
The 10-yr yield was trading at 1.21% right before the two reports were released at 10:00 a.m. ET, then dropped to 1.15% over the next two hours as the data reinforced expectations for growth/inflation rates to moderate. The 10-yr yield settled the session at 1.17%, or seven basis points below Friday's settlement.
Stocks faded their early gains as long-term rates extended their declines, leaving the S&P 500 sectors mixed after each started in the green. On the downside, the materials (-1.2%), industrials (-0.7%), and energy (-0.7%) sectors lagged while the consumer discretionary (+0.3%) and utilities (+0.8%) sectors outperformed.
The Philadelphia Semiconductor Index (+0.6%) was a pocket of relative strength, as components keyed off ON Semiconductor's (ON 43.64, +4.58, +11.7%) better-than-expected earnings report and upside Q3 guidance. Global Payments (GPN 171.79, -21.62, -11.2%) was a notable earnings loser in the information technology sector (-0.4%).
Separately, Tesla (TSLA 709.67, +22.57, +3.3%) was initiated with an Outperform rating at KGI Securities while Pfizer (PFE 43.96, +1.15, +2.7%) hit a 52-week high on news that its COVID-19 vaccine could receive full FDA approval as soon as next month.
The 2-yr yield decreased one basis point to 0.17%. The U.S. Dollar Index decreased 0.1% to 92.07. WTI crude futures fell 3.5%, or $2.56, to $71.31/bbl amid demand concerns.
Reviewing Monday's economic data:
The July ISM Manufacturing Index checked in at 59.5% (Briefing.com consensus 60.7%), down from 60.6% in June but up from 53.7% a year ago. A number above 50.0% is indicative of expansion. July marked the 14th straight month of expansion for the manufacturing sector, albeit at a slightly slower pace than what was seen in June.
The key takeaway from the report is the acknowledgment that manufacturers and suppliers continue to struggle to meet increasing demand levels due to a range of factors that includes record-long raw material lead times, shortages of basic materials, transportation difficulties, worker absenteeism, and difficulty filling positions.
Total construction spending increased 0.1% m/m in June (Briefing.com consensus +0.5%) following an upwardly revised 0.2% decline (from -0.3%) in May. Total private construction rose 0.4% m/m while total public construction spending fell 1.2%. On a year-over-year basis, total construction spending was up 8.2%.
The key takeaway from the report is the ongoing strength in private residential construction spending, which is a byproduct of strong demand driven by a scarce supply of existing homes for sale.
The final IHS Market Manufacturing PMI for June checked in at 63.4, up from 63.1 in the preliminary reading.
Looking ahead, investors will receive Factory Orders for June on Tuesday.
S&P 500 +16.8% YTD
Dow Jones Industrial Average +13.8% YTD
Nasdaq Composite +13.9% YTD
Russell 2000 +12.2% YTD
Crude futures settle sharply lower
02-Aug-21 15:30 ET
Dow -41.95 at 34893.52, Nasdaq +28.04 at 14700.70, S&P -1.87 at 4393.39
[BRIEFING.COM] The S&P 500 has turned negative with a 0.1% decline in a disappointing session from a price action perspective. The benchmark index was up 0.6% to start the day.
One last look at the S&P 500 sectors shows mixed results after each traded in positive territory in early action. The materials (-0.9%), industrials (-0.5%), and consumer staples (-0.4%) sectors underperform in the red, while the utilities (+0.6%) and consumer discretionary (+0.5%) sectors outperform in the green.
WTI crude futures settled sharply lower by 3.5%, or $2.56, to $71.31/bbl amid demand concerns.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34935.47 -149.06 (-0.42%)
Nasdaq 14672.66 -105.59 (-0.71%)
SP 500 4395.26 -23.89 (-0.54%)
10-yr Note +4/32 1.235
NYSE Adv 1425 Dec 1880 Vol 1.1 bln
Nasdaq Adv 1681 Dec 2627 Vol 3.6 bln
Industry Watch
Strong: Materials, Real Estate, Consumer Staples, Health Care
Weak: Consumer Discretionary, Energy, Financials, Utilities
Moving the Market
-- Amazon (AMZN) fell more than 7.0% after missing revenue estimates and issuing downside Q3 revenue guidance
-- Delta-variant headlines in the mix
-- Personal spending for June was better than expected; PCE Prices for June were better than feared
Amazon and Delta variant subdue market
30-Jul-21 16:20 ET
Dow -149.06 at 34935.47, Nasdaq -105.59 at 14672.66, S&P -23.89 at 4395.26
[BRIEFING.COM] The S&P 500 declined 0.5% on Friday, as disappointing earnings news out of Amazon.com (AMZN 3327.59, -272.33, -7.6%) and negative-sounding headlines surrounding the Delta variant fed into pestering growth concerns. The Nasdaq Composite lost 0.7%, the Dow Jones Industrial Average lost 0.4%, and the Russell 2000 lost 0.6%.
Briefly, shares of Amazon dropped 7.6% after the company missed revenue estimates and issued below-consensus revenue guidance for the third quarter. Amazon said Prime-member growth moderated as people spent less time being at home, and it talked about difficult year-over-year comparisons in the coming quarters.
The S&P 500 consumer discretionary sector (-2.8%) really felt the weight of AMZN, losing 3% on Friday. The energy (-1.8%), utilities (-0.9%), and financials (-0.7%) sectors also underperformed, while the materials (+0.4%), real estate (+0.3%), health care (+0.1%), and consumer staples (+0.1%) sectors closed higher.
Separately, Amazon's observation that people spent more of their time outside suggested that they also spent more money elsewhere. This inference was supported by the latest data showing personal spending increase by 1.0% m/m in June (Briefing.com consensus +0.7%), which was better than expected.
That same report featured better-than-feared PCE Prices for June, which were little changed on a year-over-year basis but still running well above 2.0%.
There were concerns, though, that the rapid spread of the Delta variant could weigh on consumer spending activity. Reports continued to discuss how businesses have delayed return-to-office plans while several media outlets reported on an internal document from the CDC that suggested the Delta variant spreads as easily as chickenpox.
The Treasury market appeared to reflect ongoing expectations for peak growth and inflation rates, as the 10-yr yield decreased three basis points to 1.24%. The 2-yr yield decreased two basis points to 0.18%. The U.S. Dollar Index increased 0.3% to 92.14. WTI crude futures increased 0.3%, or $0.25, to $73.87/bbl.
In other earnings news, Procter & Gamble (PG 142.31, +2.83, +2.0%), Chevron (CVX 101.77, -0.80, -0.8%), Caterpillar (CAT 206.75, -5.81, -2.7%), T-Mobile US (TMUS 144.02, -0.61, -0.4%), and Exxon Mobil (XOM 57.58, -1.35, -2.3%) were some notable companies that exceeded earnings results, but only PG closed higher from this group.
Reviewing Friday's economic data:
Personal spending increased 1.0% month-over-month in June (Briefing.com consensus 0.7%). Personal income was up 0.1% month-over-month (Briefing.com consensus -0.6%), with a 0.7% increase in compensation helping to offset a 2.0% decline in personal current transfer receipts. The PCE Price Index was up 0.5% (Briefing.com consensus 0.7%) and the core-PCE Price Index, which excludes food and energy, increased 0.4% (Briefing.com consensus 0.6%). On a year-over-year basis, the PCE Price Index held steady at 4.0% while the core-PCE Price Index ticked up slightly to 3.5% from 3.4% in May.
The key takeaway from the report is that the inflation rate, while better than feared, is still running well above 2.0% and is eroding the purchasing power of personal income gains. Real disposable personal income was down 3.0% on a year-over-year basis.
The final July reading for the University of Michigan Index of Consumer Sentiment edged up to 81.2 (Briefing.com consensus 81.0) from the preliminary reading of 80.8. The final reading for June was 85.5.
The key takeaway from the report is the conclusion that consumers' expectations for the economy have been reined in with complaints about high prices for homes, vehicles, and household durables.
The Q2 Employment Cost Index increased 0.7% (Briefing.com consensus 0.9%), seasonally adjusted, for the three-month period ending June 2021 after increasing 0.9% for the three-month period ending March 2021. Wages and salaries, which account for about 70% of compensation costs, rose 0.9%, while benefit costs, which make up the remainder of compensation costs, increased 0.4%.
The key takeaway from the report is that wages and salaries for civilian workers and private industry workers were up from the same period a year ago, yet those gains were subsumed by inflation, evidenced by the 6.4% increase in the PCE Price Index seen in the advance Q2 GDP report.
The Chicago PMI for July increased to 73.4 (Briefing.com consensus 63.8) from 66.1 in June.
Looking ahead, investors will receive the ISM Manufacturing Index for July, Construction Spending for June, and the final IHS Markit Manufacturing PMI for July on Monday.
S&P 500 +17.0% YTD
Dow Jones Industrial Average +14.1% YTD
Nasdaq Composite +13.9% YTD
Russell 2000 +12.7% YTD
Crude futures settle slightly higher
30-Jul-21 15:30 ET
Dow -165.74 at 34918.79, Nasdaq -113.06 at 14665.19, S&P -26.35 at 4392.80
[BRIEFING.COM] The S&P 500 is down 0.6% and on track to end the week with a 0.4% decline.
One last look at the sectors shows consumer discretionary (-2.9%) and energy (-1.9%) down 3% and 2%, respectively. The real estate (+0.4%) and materials (+0.3%) sectors outperform with modest gains.
WTI crude futures settled higher by 0.3%, or $0.25, to $73.87/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35083.53 +152.60 (0.44%)
Nasdaq 14778.25 +15.68 (0.11%)
SP 500 4419.15 +18.51 (0.42%)
10-yr Note -4/32 1.275
NYSE Adv 2243 Dec 1011 Vol 817.4 mln
Nasdaq Adv 2377 Dec 1958 Vol 3.9 bln
Industry Watch
Strong: Energy, Materials, Financials, Consumer Discretionary
Weak: Communication Services, Real Estate
Moving the Market
-- S&P 500 and Dow set all-time highs but market closes off those highs
-- Better-than-expected earnings reports while Facebook (FB), PayPal (PYPL), and Merck (MRK) provided cautious outlooks
-- Advance estimate for Q2 GDP increased at an annual rate of 6.5% (Briefing.com consensus +8.5%)
S&P 500 and Dow hit record highs in pro-cyclical session
29-Jul-21 16:15 ET
Dow +152.60 at 35083.53, Nasdaq +15.68 at 14778.25, S&P +18.51 at 4419.15
[BRIEFING.COM] The S&P 500 (+0.4%) and Dow Jones Industrial Average (+0.4%) set intraday record highs on Thursday amid strength in the cyclical stocks, although the market did close off session highs. The Nasdaq Composite increased just 0.1% while the Russell 2000 outperformed with a 0.7% gain.
The advance was supported by a confluence of factors: a delayed appreciation that the Fed remained committed to its dovish policy stance, earnings reports that generally exceeded expectations, advance Q2 GDP increasing at an annual rate of 6.5% (Briefing.com consensus +8.5%) -- even if it missed expectations, and the Treasury confirming $100 payments for every newly vaccinated American.
There were some negatives, though. Facebook (FB 358.32, -14.96, -4.0%), PayPal (PYPL 283.17, -18.81, -6.2%), and Merck (MRK 76.93, -1.40, -1.8%) issued cautious outlooks following their earnings reports. Amazon.com (AMZN 3599.92, -30.40, -0.8%) traded lower ahead of its earnings report after the close. Robinhood (HOOD 34.82, -3.18, -8.4%) dropped 8% in its public debut.
Arguably, the continued resiliency to selling interest at the index level played an influential role in attracting buyers on the fear of missing out on further gains. Nine of the 11 S&P 500 sectors finished in positive territory with some rotational activity favoring the cyclical groups.
The financials (+1.1%), materials (+1.1%), energy (+0.9%), and consumer discretionary (+0.9%) sectors each advanced around 1%, while the communication services (-0.9%) and real estate (-0.2%) sectors closed lower. FB weighed on the communication services sector with its 4% decline.
Tesla (TSLA 677.35, +30.37, +4.7%) was a notable standout, rising 5% after the stock was double-upgraded to Buy from Sell at DZ Bank. Qualcomm (QCOM 150.99, +8.55, +6.0%), MasterCard (MA 388.81, +5.37, +1.4%), and Comcast (CMCSA 58.11, +0.13, +0.2%) were some earnings winners.
Separately, it's worth mentioning that the $1 trillion bipartisan infrastructure bill passed a procedural vote in the Senate yesterday.
U.S. Treasuries settled mixed and little changed in a tight-ranged session. The 2-yr yield decreased one basis point to 0.20% while the 10-yr yield increased one basis point to 1.27%. The U.S. Dollar Index decreased 0.5% to 91.90. WTI crude futures increased 1.7%, or $1.24, to $73.62/bbl.
Reviewing Thursday's economic data, which featured the advance Q2 GDP report:
The advance Q2 GDP report reflected the rebound effort in the U.S. economy from the pandemic. It showed real GDP increasing at an annual -- and robust -- rate of 6.5% (Briefing.com consensus 8.5%), helped by an 11.8% increase in personal spending. The GDP Chain Deflator increased 6.0% (Briefing.com consensus 5.4%) following a 4.3% increase in the first quarter.
The key takeaway from the report is the strength seen in personal spending, as consumers were flush with cash and pent-up demand. The U.S. economy, though, was also flush with higher prices. That is another key takeaway, although the Fed continues to assert that the high inflation is likely to be transitory.
Initial claims for the week ending July 24 decreased by 24,000 to 400,000 (Briefing.com consensus 375,000) while continuing claims for the week ending July 17 increased by 7,000 to 3.269 million.
The key takeaway from the report is the elevated level of initial claims, which are still well above pre-pandemic levels and a contributing factor to the Fed's view that the labor market still has a ways to go on the recovery road.
Pending home sales decreased 1.9% m/m in June (Briefing.com consensus +0.8%) following an upwardly revised 8.3% increase (from 8.0%) in May.
Looking ahead, investors will receive Personal Income and Spending data for June, PCE Prices for June, the Q2 Employment Cost Index, the Chicago PMI for July, and the final University of Michigan Index of Consumer Sentiment for July on Friday.
S&P 500 +17.7% YTD
Nasdaq Composite +14.7% YTD
Dow Jones Industrial Average +14.6% YTD
Russell 2000 +13.4% YTD
Crude futures settle sharply higher
29-Jul-21 15:30 ET
Dow +186.08 at 35117.01, Nasdaq +19.47 at 14782.04, S&P +21.30 at 4421.94
[BRIEFING.COM] The S&P 500 is up 0.5% amid gains in nine of its 11 sectors.
The financials (+1.3%), materials (+1.2%), industrials (+1.0%), and energy (+0.9%) sectors continue to lead with gains around 1% while the communication services (-0.8%) and real estate (-0.1%) sectors trade lower.
WTI crude futures settled higher by 1.7%, or $1.24, to $73.62/bbl.
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 34930.93 -127.59 (-0.36%)
Nasdaq 14762.57 +102.01 (0.70%)
SP 500 4400.64 -0.82 (-0.02%)
10-yr Note -1/32 1.254
NYSE Adv 2005 Dec 1226 Vol 875.6 mln
Nasdaq Adv 3120 Dec 1192 Vol 4.2 bln
Industry Watch
Strong: Communication Services, Energy, Health Care
Weak: Utilities, Real Estate, Consumer Staples
Moving the Market
-- Fed makes no policy changes, as widely expected
-- Fed Chair Powell reiterates expectations for inflation to moderate and says there is still some time until substantial further progress is made on employment goal
-- Mixed earnings reactions in high-profile names
-- Small-caps and micro-caps outperformed
Large-caps looked up to the small-caps and micro-caps on Fed day
28-Jul-21 16:15 ET
Dow -127.59 at 34930.93, Nasdaq +102.01 at 14762.57, S&P -0.82 at 4400.64
[BRIEFING.COM] The large-cap indices closed mixed on Wednesday, as the market digested mixed earnings reactions in high-profile names and a policy announcement from the Fed that was largely in-line with expectations. Small-cap and micro-cap stocks saw the biggest gains.
The S&P 500 (unch) closed flat while the Dow Jones Industrial Average decreased 0.4%. The Nasdaq Composite outperformed with a 0.7% gain but noticeably trailed the Russell 2000 (+1.5%) and iShares Micro-Cap ETF (IWC 144.42, +2.40, +1.7%).
Apple (AAPL 144.98, -1.79, -1.2%), Microsoft (MSFT 286.22, -0.32, -0.1%), and Alphabet (GOOG 2727.63, -8.30, -0.3%) headlined the earnings calendar and came through with record-setting quarters. The underwhelming price action, however, harped on concerns that it'll be hard to sustain the same level of growth moving forward and that a lot of the good news has been priced in.
Separately, the Fed made no policy changes, as widely expected, leaving the target range for the fed funds rate near zero and the pace of asset purchases at $120 billion per month. Fed Chair Powell reiterated expectations for inflation to moderate and said there's still some time until substantial further progress has been made towards the Fed's employment goal.
In other words, the Fed will remain extremely accommodative and will continue to watch the incoming data, presumably at least a few more employment reports, until it decides to start tapering asset purchases. This inference boded well for risker stocks while there remained an underlying sense that the S&P 500 was due for some consolidation.
The S&P 500 energy (+1.0%) and communication services (+0.8%) sectors claimed the top spots amid higher oil prices ($72.38, +0.70, +1.0%) and strength in Facebook (FB 373.28, +5.47, +1.5%) ahead of its earnings report after the close. The Philadelphia Semiconductor Index (+1.8%) keyed off AMD's (AMD 97.93, +6.90, +7.6%) earnings report.
Conversely, the consumer staples (-0.9%), utilities (-0.7%), and real estate (-0.6%) sectors underperformed in negative territory.
Visa (V 246.94, -3.99, -1.6%), Boeing (BA 231.57, +9.30, +4.2%), McDonald's (MCD 241.78, -4.57, -1.9%), Pfizer (PFE 43.45, +1.35, +3.2%), and Starbucks (SBUX 122.41, -3.62, -2.9%) also reported better-than-expected earnings results, but they didn't have that much impact on the broader market.
The Treasury market saw modest selling interest, pushing yields slightly higher. The 2-yr yield increased one basis point to 0.21%, and the 10-yr yield increased three basis points to 1.26%. The U.S. Dollar Index decreased 0.2% to 92.26.
Reviewing Wednesday's economic data:
The Advance report for International Trade in Goods for June showed a deficit of $91.2 billion, versus a revised $88.2 billion (from $88.1 billion) in May. The Advance report for Retail Inventories for June decreased 0.3%, while the Advance report for Wholesale Inventories for June increased 0.8%.
The weekly MBA Mortgage Applications Index increased 5.7% following a 4.0% decline in the prior week.
Looking ahead, investors will receive the advance estimate for Q2 GDP, the weekly Initial and Continuing Claims report, and Pending Home Sales for June on Thursday.
S&P 500 +17.2% YTD
Nasdaq Composite +14.5% YTD
Dow Jones Industrial Average +14.1% YTD
Russell 2000 +12.7% YTD
Market Snapshot
https://www.briefing.com/stock-market-update
Dow 35058.52 -85.79 (-0.24%)
Nasdaq 14660.56 -180.14 (-1.21%)
SP 500 4401.46 -20.84 (-0.47%)
10-yr Note +6/32 1.239
NYSE Adv 1163 Dec 2061 Vol 881.1 mln
Nasdaq Adv 1218 Dec 2089 Vol 4.3 bln
Industry Watch
Strong: Utilities, Real Estate, Health Care, Consumer Staples
Weak: Information Technology, Consumer Discretionary, Communication Services, Energy
Moving the Market
-- Mega-caps weigh on market ahead of earnings
-- Tesla (TSLA) fades early gain after reporting earnings
-- Mixed economic data
-- 10-yr yield slips to 1.23%
Winning streak snapped as mega-caps looked like small-caps
27-Jul-21 16:15 ET
Dow -85.79 at 35058.52, Nasdaq -180.14 at 14660.56, S&P -20.84 at 4401.46
[BRIEFING.COM] The S&P 500 lost 0.5% on Tuesday, snapping a five-session winning streak along with the Dow Jones Industrial Average (-0.2%) and Nasdaq Composite (-1.2%). The mega-caps were responsible for the underperformance of the Nasdaq and looked like the small-caps in the Russell 2000 (-1.1%) from a performance standpoint.
Buyers looked nervous in front of Apple's (AAPL 146.77, -2.22, -1.5%), Microsoft's (MSFT 286.54, -2.51, -0.9%), and Alphabet's (GOOG 2735.93, -56.96, -2.0%) earnings reports after the close given the disappointing reaction in Tesla (TSLA 644.78, -12.84, -2.0%) following its better-than-expected Q2 results.
It could have been worse, though, since the major indices were down between 0.8% (Dow) and 2.3% (Nasdaq) at their intraday lows. Profit-taking interest gave way to some dip-buying efforts in the afternoon. Six of the 11 S&P 500 sectors closed higher while five closed lower.
The consumer discretionary (-1.2%), communication services (-1.1%), information technology (-1.0%), and energy (-1.0%) sectors each declined about 1.0%. The defensive-oriented utilities (+1.7%), real estate (+0.8%), and health care (+0.4%) sectors were the top performers.
Another factor in the mix reportedly included growth concerns as investors received mixed economic data and the CDC recommended everyone wear masks indoors in COVID-19 hot spots. Total durable goods orders for June increased by only 0.8% m/m (Briefing.com consensus +2.1%) while the Conference Board's consumer confidence report for July was better than expected.
The growth-sensitive 10-yr yield decreased four basis points to 1.23% amid increased buying interest while the fed-sensitive 2-yr yield was unchanged at 0.20% ahead of the FOMC policy statement tomorrow. The U.S. Dollar Index decreased 0.2% to 92.46. The CBOE Volatility Index (19.36, +1.78, +10.1%) briefly jumped above 20.00.
Separately, the industrials sector (-0.5%) included mixed earnings reactions in UPS (UPS 195.19, -14.67, -7.0%), 3M (MMM 200.47, -1.20, -0.6%), General Electric (GE 13.08, +0.16, +1.2%), and Raytheon Technologies (RTX 88.22, +2.27, +2.6%). UPS shares dropped 7%.
WTI crude futures settled lower by 0.4%, or $0.29, to $71.68/bbl.
Reviewing Tuesday's economic data:
The Conference Board's Consumer Confidence Index checked in at 129.1 in July (Briefing.com consensus 124.5) versus an upwardly revised 128.9 (from 127.3) in June. The July reading marked the highest level for the index since February 2020.
The key takeaway from the report is the understanding that consumer spending activity is expected to remain robust in the short-term, evidenced by a larger percentage of consumers saying they plan to buy homes, automobiles, and major appliances in the coming months.
Total durable goods orders for June were up 0.8% month-over-month (Briefing.com consensus 2.1%) following an upwardly revised 3.2% increase (from 2.3%) for May. Orders, excluding transportation, rose 0.3% month-over-month (Briefing.com consensus 0.9%) on the heels of an upwardly revised 0.5% increase (from 0.3%) for May. The upward revisions to the May data mitigated some of the headline disappointment for June.
The key takeaway from the report is that business spending continues to increase. New orders for nondefense capital goods, excluding aircraft -- a proxy for business spending -- increased 0.5% month-over-month for the second consecutive month.
The May S&P Case-Shiller Home Price Index increased 17.0% yr/yr (Briefing.com consensus 15.2%) following a revised 15.0% increase (from 14.9%) in April.
The FHFA Housing Price Index increased 1.7% m/m in May following an unrevised 1.8% increase in April.
Looking ahead, investors will receive the FOMC Rate decision, the weekly MBA Mortgage Applications Index, and the Advance International Trade in Goods, Retail Inventories, and Wholesale Inventories reports for June on Wednesday.
S&P 500 +17.2% YTD
Nasdaq Composite +13.8% YTD
Dow Jones Industrial Average +14.6% YTD
Russell 2000 +11.0% YTD
Crude futures settle lower
27-Jul-21 15:30 ET
Dow -135.82 at 35008.49, Nasdaq -206.08 at 14634.62, S&P -29.61 at 4392.69
[BRIEFING.COM] The S&P 500 continues to trade lower by 0.7% and is on track to end a five-session winning streak.
One last look at the S&P 500 sectors shows consumer discretionary (-1.3%), communication services (-1.3%), information technology (-1.2%), and energy (-1.2%) down more than 1.0% while the utilities (+1.5%), real estate (+0.6%), health care (+0.2%), and consumer staples (+0.01%) sectors trade higher.
WTI crude futures settled lower by 0.4%, or $0.29, to $71.68/bbl.