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Record closes for the major indices
07-Jan-21 16:10 ET
Dow +211.73 at 31041.07, Nasdaq +326.69 at 13067.48, S&P +55.65 at 3803.79
https://www.briefing.com/stock-market-update
[BRIEFING.COM] Each of the major indices closed at record highs on Thursday in a momentum trade led by the technology stocks. The Nasdaq Composite outperformed with an impressive 2.6% gain, followed by solid gains in the Russell 2000 (+1.9%), S&P 500 (+1.5%), and Dow Jones Industrial Average (+0.7%).
Risk sentiment broadened out to nine of the 11 S&P 500 sectors. The information technology (+2.7%), consumer discretionary (+1.8%), energy (+1.5%), and financials (+1.5%) sectors were the best-performing sectors; conversely, the utilities (-1.3%) and consumer staples (-0.3%) sectors closed lower.
Investors bought yesterday's dip in the broader technology space and continued to bid up shares of Tesla (TSLA 816.04, +60.06, +7.9%), which was upgraded to Sector Perform from Underperform at RBC Capital Mkts after the firm conceded it was wrong about the stock.
In addition, the oft-repeated recovery narrative was on display after Democrats flipped both Senate seats in Georgia yesterday, giving them slim majority in the Senate, and the ISM Non-Manufacturing Index rose to a better-than-expected 57.2% in December (Briefing.com consensus 54.7%) from 55.9% in November.
The projected Democratic majority in the Senate contributed to the continued selling pressure in longer-dated Treasuries amid the possibility for more fiscal stimulus. These respective yields moved higher.
The 10-yr yield increased three basis points to 1.07%, while the 2-yr yield was flat at 0.14%. The U.S. Dollar Index increased 0.3% to 89.84. WTI crude futures increased 0.5%, or $0.24, to $50.81/bbl.
In other corporate news, shares of Walgreens Boots Alliance (WBA 45.26, +2.23, +5.2%) rose 5% after beating top and bottom-line estimates, while DXC Technology (DXC 28.91, +2.46, +9.3%) received an acquisition proposal from French IT firm Atos for reportedly more than $10 billion.
Reviewing Thursday's economic data:
The ISM Non-Manufacturing Index rose to 57.2% in December (Briefing.com consensus 54.7%) from 55.9% in November. The dividing line between expansion and contraction is 50.0%. The December reading reflects a faster pace of expansion than the prior month, and it is the seventh consecutive reading above 50.0%.
The key takeaway from the report is that the Employment Index, which dipped below 50.0%, blemished an otherwise solid snapshot of the services sector in December.
Initial claims for the week ending January 2 decreased by 3,000 to 787,000 (Briefing.com consensus 752,000). Continuing claims for the week ending December 26 decreased by 126,000 to 5.072 million.
The key takeaway from the report is that initial claims are still coming in at a stubbornly high level, which sends a poor signal about the state of the labor market.
The U.S. trade deficit widened to $68.1 billion in November (Briefing.com consensus -$67.1 billion) from an unrevised $63.1 billion in October.
The key takeaway from the report is that it showed another increase in exports and imports, indicating an uptick in global trade.
Looking ahead, investors will receive the Employment Situation Report for December, Consumer Credit for November, and Wholesale Inventories for November on Friday.
Russell 2000 +6.2% YTD
Dow Jones Industrial Average +1.4% YTD
Nasdaq Composite +1.4% YTD
S&P 500 +1.3% YTD
Market Snapshot
Dow 31041.07 +211.73 (0.69%)
Nasdaq 13067.48 +326.69 (2.56%)
SP 500 3803.79 +55.65 (1.48%)
10-yr Note -4/32 1.075
NYSE Adv 1908 Dec 1193 Vol 1.1 bln
Nasdaq Adv 2777 Dec 946 Vol 6.6 bln
Industry Watch
Strong: Information Technology, Financials, Consumer Discretionary, Energy
Weak: Consumer Staples, Utilities
Moving the Market
-- Positive momentum carries market to all-time highs
-- Strength in technology and financial stocks; former benefited from buy-the-dip mindset while the latter benefited from curve-steepening activity
-- 10-yr yield continued to rise amid speculation for more fiscal stimulus
Energy stocks benefiting from higher oil prices
07-Jan-21 15:25 ET
Dow +258.14 at 31087.48, Nasdaq +333.69 at 13074.48, S&P +60.16 at 3808.30
[BRIEFING.COM] The S&P 500 is trading near session highs with a 1.6% gain, in-line with the Russell 2000 (+1.6%).
One last look at the S&P 500 sectors shows information technology (+2.8%), consumer discretionary (+2.1%), energy (+1.8%), and financials (+1.7%) atop the leaderboard. The utilities (-1.1%) and consumer staples (-0.3%) sectors are the lone holdouts right now.
WTI crude futures settled higher by 0.5%, or $0.24, to $50.81/bbl.
Dow and Russell 2000 close at record highs despite scene on Capitol Hill
06-Jan-21 16:15 ET
Dow +437.80 at 30829.34, Nasdaq -78.17 at 12740.79, S&P +21.28 at 3748.14
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The Dow Jones Industrial Average (+1.4%) and Russell 2000 (+4.0%) closed at record highs on Wednesday, as small-caps and cyclical stocks exhibited strength on the prospect of a Democrat-controlled Senate. The market, however, closed off session highs, as risk sentiment waned after pro-Trump protesters breached Capitol Hill.
The S&P 500 finished with a 0.6% gain after being up 1.5% intraday, while the Nasdaq Composite declined 0.6% amid weakness in the mega-caps.
Briefly, investors were pricing in expectations for more fiscal stimulus after Democrats flipped at least one Senate seat in Georgia following yesterday's runoff elections, according to media projections. The second race remained too close to call as of 4:00 p.m. ET but favored the Democrats, who would need this seat to control the Senate by the slimmest of margins.
Accordingly, the cyclical financials (+4.4%), materials (+4.1%), energy (+3.0%), and industrials (+2.4%) sectors finished atop the standings with strong gains. The possibility of increased tech scrutiny, however, reined in the influential information technology (-1.8%) and communication services (-0.7%) sectors.
Investors were buying the dip in technology stocks after the open, but the rebound effort was squandered after the protesters breached Capitol Hill shortly after 2:00 p.m. ET during the certification of the electoral college results. The technology sector had briefly returned to its flat line before this.
Despite the scene on Capitol Hill, gold prices ($1909.00/ozt, -2.4%) remained suppressed and there was no inclination to buy the dip in Treasuries, which were selling off on expectations for further economic stimulus. The 10-yr yield rose nine basis points to 1.04%, while the 2-yr yield increased two basis points to 0.14%. The U.S. Dollar Index was little changed at 89.40.
Tesla (TSLA 755.98, +20.87, +2.8%) was among the few mega-caps that faired extremely well today after Morgan Stanley raised its price target on the stock to a Street-high of $810. Shares of Apple (AAPL 126.60, -4.41, -3.4%), Microsoft (MSFT 212.25, -5.65, -2.6%), Amazon (AMZN 3138.38, -80.13, -2.5%), and Facebook (FB 263.34, -7.63, -2.8%) fell between 2.5-3.4%.
Separately, Walgreens Boots Alliance (WBA 43.03, +1.87, +4.5%) agreed to sell most of its Alliance Healthcare business to AmerisourceBergen (ABC 106.17, +8.41, +8.6%) for approximately $6.5 billion in cash and stock.
Reviewing Wednesday's economic data:
Factory orders for manufactured goods increased 1.0% in November (Briefing.com consensus 0.6%) after increasing a revised 1.3% (from 1.0%) in October. This is the seventh consecutive monthly increase in factory orders.
The key takeaway from the report is that it showed another increase in business spending, as nondefense capital goods excluding aircraft increased 0.5% in November after rising a revised 2.6% in October.
The ADP Employment Change report for December estimated private-sector payrolls decreased by 123,000 (Briefing.com consensus +120,000). The November reading was revised lower to 304,000 from 307,000.
The December IHS Markit Services PMI decreased to 54.8 from 55.3 in November.
The weekly MBA Mortgage Applications Index increased 1.7% following a 0.8% increase in the prior week.
Looking ahead, investors will receive the ISM Non-Manufacturing Index for December, the weekly Initial and Continuing Claims report, and the Trade Balance for November on Thursday.
Russell 2000 +4.2% YTD
Dow Jones Industrial Average +0.7% YTD
S&P 500 -0.2% YTD
Nasdaq Composite -1.1% YTD
Market Snapshot
Dow 30829.34 +437.80 (1.44%)
Nasdaq 12740.79 -78.17 (-0.61%)
SP 500 3748.14 +21.28 (0.57%)
10-yr Note -29/32 1.033
NYSE Adv 1967 Dec 1142 Vol 1.4 bln
Nasdaq Adv 2247 Dec 1399 Vol 7.5 bln
Industry Watch
Strong: Energy, Materials, Financials, Industrials, Utilities
Weak: Information Technology, Communication Services, Real Estate
Moving the Market
-- Democrats flip at least one Senate seat in Georgie, according to media projections
-- Capitol Hill breached by protestors
-- Technology stocks underperform, small-caps and cyclical stocks rise
-- 10-yr Treasury note yield rises past 1.00%
Crude futures settle above $50 per barrel
06-Jan-21 15:30 ET
Dow +461.94 at 30853.48, Nasdaq -51.44 at 12767.52, S&P +39.90 at 3766.76
[BRIEFING.COM] The S&P 500 is trading higher by 0.6%, while the Nasdaq is back in the red with a 0.4% decline amid weakness in the mega-cap stocks, which are down more than 2.0%.
One last look at the sectors shows financials (+4.3%), materials (+3.9%), energy (+2.5%), and industrials (+2.2%) still up more than 2.0%; conversely, the information technology (-1.4%) and communication services (-0.6%) sectors are influential laggards in negative territory.
WTI crude futures settled higher by 1.3%, or $0.66, to $50.57/bbl.
Stocks rebound as recovery theme shines
05-Jan-21 16:15 ET
Dow +167.71 at 30391.54, Nasdaq +120.51 at 12818.96, S&P +26.21 at 3726.86
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 advanced 0.7% on Tuesday in a relatively broad-based advance led by energy sector (+4.5%). The Russell 2000 (+1.7%) outperformed, followed by the Nasdaq Composite (+1.0%) and Dow Jones Industrial Average (+0.6%).
The price action today signaled a continuation of the buy-the-dip mindset from yesterday afternoon, as investors latched onto the so-called recovery theme that benefits small-caps, cyclical sectors, and commodities (at the expense of the dollar). The better-than-expected ISM Manufacturing Index for December was cited as a positive catalyst.
Briefly, the manufacturing index rose to 60.7% in December (Briefing.com consensus 56.4%) from 57.5% in November for its seventh straight expansionary reading (50.0% or greater).
Energy stocks followed oil prices higher ($49.91/bbl, +2.32, +4.9%), which settled close to $50 per barrel. Most of the oil gains were notched before an OPEC+ decision to keep production levels steady in February, although Saudi Arabia later said it will cut an additional 1 million barrels/day in February and March.
The materials (+2.3%) and industrials (+1.0%) sectors were other cyclical outperformers, while the real estate sector (-0.1%) was the lone holdout.
Individual standouts included Apple (AAPL 131.01, +1.60, +1.2%), which had its price target raised to $150 from $145 at Canaccord Genuity, and Micron (MU 77.26, +3.21, +4.3%), which was upgraded to Buy from Sell at Citigroup.
Separately, broader conviction might have been restrained by a preference to wait for the outcome of the two Senate election runoffs in Georgia today, which will determine which party has majority control of the Senate. There was hope the results would be known by tomorrow morning.
Longer-dated Treasury yields rose amid increased selling interest as part of the recovery-minded trade today. The 2-yr yield finished flat at 0.12%, while the 10-yr yield increased four basis points to 0.96%. The U.S. Dollar Index decreased 0.4% to 89.51.
Reviewing Tuesday's economic data:
The ISM Manufacturing Index rose to 60.7% in December (Briefing.com consensus 56.4%) from 57.5% in November. The dividing line between expansion and contraction is 50.0%, so the December reading reflects an acceleration in manufacturing activity.
The key takeaway from the report is that the December increase puts the overall series just ten basis points below its high from 2018 (60.8%). The Employment Index (51.5%) returned into expansion after falling below 50.0% in October.
Looking ahead, investors will receive the ADP Employment Change Report for December, Factory Orders for November, the IHS Markit Services PMI for December, and the weekly MBA Mortgage Applications Index on Wednesday.
Russell 2000 +0.2% YTD
Nasdaq Composite -0.5% YTD
Dow Jones Industrial Average -0.7% YTD
S&P 500 -0.8% YTD
Market Snapshot
Dow 30391.54 +167.71 (0.55%)
Nasdaq 12818.96 +120.51 (0.95%)
SP 500 3726.86 +26.21 (0.71%)
10-yr Note -3/32 0.951
NYSE Adv 2276 Dec 855 Vol 995.0 mln
Nasdaq Adv 2649 Dec 1096 Vol 6.7 bln
Industry Watch
Strong: Energy, Industrials, Materials
Weak: Real Estate, Utilities, Consumer Staples
Moving the Market
-- Energy stocks and small-caps noticeably outperformed in so-called recovery trade
-- December ISM Manufacturing Index was better than expected
-- Senate election runoffs in Georgia today
Crude futures settled just under $50 per barrel
05-Jan-21 15:25 ET
Dow +187.32 at 30411.15, Nasdaq +102.06 at 12800.51, S&P +25.43 at 3726.08
[BRIEFING.COM] The S&P 500 is up 0.7% and is trading slightly off prior highs (+1.0%).
One last look at the S&P 500 sectors shows energy up 5.1%, materials up 2.1%, and industrials 1.1%. Those are the leaders, while the utilities sector (-0.1%) is the only sector trading lower right now.
WTI crude futures settled higher by 4.9%, or $2.32, to $49.91/bbl. This is the highest settlement price since last February, as investors reacted positively to today's upbeat manufacturing data and Saudi Arabia's production cut pledge.
Rough start to 2021
04-Jan-21 16:15 ET
Dow -382.59 at 30223.83, Nasdaq -189.84 at 12698.45, S&P -55.42 at 3700.65
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The major indices were down more than 2.0% on the first trading day of 2021, as investors took profits, but they pared losses in the afternoon. The S&P 500 (-1.5%), Dow Jones Industrial Average (-1.3%), Nasdaq Composite (-1.5%), and Russell 2000 (-1.5%) declined between 1.3-1.5%. The S&P 500 and Dow briefly set all-time highs at the open.
The short-lived positive open was attributed to Tesla (TSLA 729.77, +24.10, +3.4%) reporting record Q4 deliveries, expansionary December manufacturing PMIs out of the eurozone and Asia, M&A activity, and positive momentum. Tesla, foreign equities, and acquired companies still had positive outings, but the positive momentum in the broader market quickly dissipated.
There weren't any specific selling catalysts, suggesting investors came back from the holidays ready to take profits while others preferred to hold off until the outcome of the Senate election runoffs in Georgia tomorrow. Selling was widespread with ten of the 11 S&P 500 sectors finishing in negative territory.
Influential weakness came out of the information technology (-1.8%) and industrials (-2.6%) sectors, although the real estate (-3.3%) sector was the weakest link. The energy sector (+0.1%) eked out a slim gain despite lower oil prices ($47.59/bbl, -0.68, -1.4%).
Hedging interest to protect against further downside was manifested in the four-point increase in the CBOE Volatility Index (26.97, +4.22, +18.6%), while safe-having positioning brought Treasury yields down from intraday highs.
The 2-yr yield finished flat at 0.12%, and the 10-yr yield finished flat at 0.92% after touching 0.95% in the morning. The U.S. Dollar Index finished flat after being down 0.6% intraday.
In M&A activity, FLIR Systems (FLIR 52.24, +8.41, +19.2%) agreed to be acquired by Teledyne (TDY 362.39, +10.80, +13.0%) in a cash and stock deal valued at $8.0 billion. Magellan Health (MGLN 93.64, +10.80, +13.0%) agreed to be acquired by Centene (CNC 62.09, +2.06, +3.4%) for $95 per share, or a total enterprise value of $2.2 billion, in cash.
Reviewing Monday's economic data:
Total construction spending increased 0.9% in November (Briefing.com consensus 0.9%) after increasing a revised 1.6% (from 1.3%) in October. Total private construction spending rose 1.2% m/m and total public construction spending decreased 0.2%.
The key takeaway from the report is that residential construction spending showed strength for another month as mortgage rates remained low, supporting demand for homes outside urban areas.
The December IHS Markit Manufacturing PMI increased to 57.1 from 56.5 in November.
Looking ahead, investors will receive the ISM Manufacturing Index for December on Tuesday.
Nasdaq Composite +1.5% YTD
Russell 2000 +1.5% YTD
S&P 500 +1.5% YTD
Dow Jones Industrial Average +1.3% YTD
Market Snapshot
Dow 30223.83 -382.59 (-1.25%)
Nasdaq 12698.45 -189.84 (-1.47%)
SP 500 3700.65 -55.42 (-1.48%)
10-yr Note 0/32 0.916
NYSE Adv 911 Dec 2188 Vol 1.2 bln
Nasdaq Adv 1570 Dec 2147 Vol 6.4 bln
Industry Watch
Strong: Energy
Weak: Information Technology, Industrials, Real Estate, Utilities
Moving the Market
-- Major indices retraced opening gains and posted noticeable declines amid widespread selling pressure
-- Profit-taking interest
-- Some focus on tomorrow's Senate election runoffs in Georgia
WTI crude futures settle in the red
04-Jan-21 15:30 ET
Dow -472.24 at 30134.18, Nasdaq -218.08 at 12670.21, S&P -64.42 at 3691.65
[BRIEFING.COM] The S&P 500 is trading lower by 1.8%, and the Russell 2000 is trading lower by 1.5%.
One last look at the S&P 500 sectors shows real estate (-3.0%), industrials (-2.7%), and information technology (-2.1%) down more than 2.0%, while the energy sector (-0.2%) is the only sector down less than 1.0%.
WTI crude futures settled lower by 1.4%, or $0.68, to $47.59/bbl.
S&P 500 and Dow set record highs to end the year
31-Dec-20 16:20 ET
Dow +196.92 at 30606.42, Nasdaq +18.28 at 12888.29, S&P +24.03 at 3756.07
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.6%) and Dow Jones Industrial Average (+0.7%) set intraday and closing record highs on New Year's Eve, with the benchmark index finishing the year with a 16.3% gain. The Nasdaq Composite (+0.1%) and Russell 2000 (-0.3%) underperformed today, but the Nasdaq managed to eke out a gain.
For most of the day, the S&P 500 traded virtually unchanged amid a lack of conviction from buyers and sellers. Buying interest, however, increased noticeably shortly after the early close of the Treasury market at 2:00 p.m. ET on no specific news catalyst, which was symptomatic of reduced market participation.
The advance was led by the financials (+1.3%), utilities (+1.6%), real estate (+1.3%), and health care (+1.1%) sectors with gains over 1.0%; conversely, the energy (-0.8%) and consumer discretionary (-0.02%) sectors ended the session in the red.
The latest weekly report for initial and continuing claims showed initial claims decrease by 19,000 to 787,000 (Briefing.com consensus 800,000) and continuing claims decline to their lowest level since March at 5.219 million. The market didn't react to the data, nor to much of anything today, really.
On the coronavirus front, daily U.S. coronavirus hospitalizations and deaths hit new highs on Wednesday, the faster-spreading variant of the coronavirus was recorded in California, San Francisco will reportedly extend its stay-at-home and quarantine-after-travel orders indefinitely, and vaccination efforts in the U.S. are running behind schedule.
Recapping the moves in the Treasury market, the 2-yr yield decreased one basis point to 0.12% (-145 bps in 2020), and the 10-yr yield decreased one basis point to 0.92% (-100 bps in 2020). The U.S. Dollar Index increased 0.3% to 89.93. WTI crude futures decreased 0.3%, or $0.12, to $48.27/bbl (-21.5% in 2020).
Reviewing Thursday's economic data:
Initial claims for the week ending December 26 decreased by 19,000 to 787,000 (Briefing.com consensus 800,000). Continuing claims for the week ending December 19 decreased by 103,000 to 5.219 million.
That's the lowest level of continuing claims since March, yet the key takeaway and harder-hitting reality is that initial claims were just 220,000 in the same period a year ago while continuing claims were just 1.728 million.
Looking ahead, investors will receive Construction Spending for November and the IHS Markit Manufacturing PMI for December on Monday when the market reopens for the new year.
Nasdaq Composite +43.6% YTD
Russell 2000 +18.4% YTD
S&P 500 +16.3% YTD
Dow Jones Industrial Average +7.3% YTD
Market Snapshot
Dow 30606.42 +196.92 (0.65%)
Nasdaq 12888.29 +18.28 (0.14%)
SP 500 3756.07 +24.03 (0.64%)
10-yr Note +1/32 0.918
NYSE Adv 1843 Dec 1269 Vol 806.6 mln
Nasdaq Adv 1739 Dec 2010 Vol 4.7 bln
Industry Watch
Strong: Financials, Utilities, Real Estate, Health Care
Weak: Energy, Consumer Discretionary
Moving the Market
-- S&P 500 and Dow close at record highs
-- Strong finish amid reduced market participation ahead of New Year's Day
-- Relative underperformance in small-caps and technology stocks
WTI crude futures settled slightly lower
31-Dec-20 15:25 ET
Dow +143.62 at 30553.12, Nasdaq -5.87 at 12864.14, S&P +15.37 at 3747.41
[BRIEFING.COM] The S&P 500 is trading at fresh session highs with a 0.4% gain. The Russell 2000 is trading flat.
One last look at the S&P 500 sectors shows financials (+1.1%), utilities (+1.1%), and health care (+0.9%) outperforming, while the energy (-0.5%) and consumer discretionary (-0.2%) sectors remain in the red. The information technology sector, which is up 41.9% this year, is trading little changed.
WTI crude futures settled lower by 0.3%, or $0.12, to $48.27/bbl. For the year, crude prices fell 21.5%.
Dow closes at record high with small gain
30-Dec-20 16:15 ET
Dow +73.89 at 30409.50, Nasdaq +19.78 at 12870.01, S&P +5.00 at 3732.04
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 increased 0.1% on Wednesday in a relatively tight-ranged session. The Dow Jones Industrial Average (+0.2%) and Nasdaq Composite (+0.2%) also finished with small gains, but it was a record close for the Dow. The Russell 2000 pulled ahead with a 1.1% gain, as investors bought the dip in small-caps.
Corporate news was sparse heading into New Year's Eve, which is a full trading day for Wall Street, but one notable story was the UK approving the COVID-19 vaccine from AstraZeneca (AZN 50.18, +0.28, +0.6%) and Oxford for emergency use.
The vaccine approval may have benefited cyclical sectors like energy (+1.6%), materials (+1.3%), and industrials (+0.7%) since it resonated with the narrative that economic activity will pick up next year with several effective vaccines in the market. The communication services (-0.7%), consumer staples (-0.1%), and information technology (-0.02%) sectors closed lower.
Walt Disney (DIS 181.17, +3.87, +2.2%), a stock many consider a reopening stock, was an individual standout, as was Visa (V 218.36, +3.99, +1.9%) on word that the $600 stimulus checks have started to hit people's bank accounts. On a related note, Senate Majority Leader McConnell said that $2000 stimulus checks (an increase from $600) have "no realistic path" to quickly pass in the Senate.
Shares of Tesla (TSLA 694.78, +28.79, +4.3%), meanwhile, rose 4.3% in a momentum trade to fresh all-time highs. Tesla helped mitigate some weakness in Amazon (AMZN 3285.85, -36.15, -1.1%) for the consumer discretionary sector (+0.3%). AMZN underperformed with the other FAANG stocks today.
U.S. Treasuries finished little changed. The 2-yr yield was flat at 0.13%, and the 10-yr yield decreased one basis point to 0.93%. The U.S. Dollar Index decreased 0.4% to 89.64. WTI crude futures increased 0.9%, or $0.42, to $48.39/bbl.
Reviewing Wednesday's economic data:
Pending home sales dropped 2.6% m/m in November (Briefing.com consensus -0.5%) following a revised 0.9% decline in October (-1.1%).
The Chicago PMI for December increased to 59.2 (Briefing.com consensus 56.9) from 58.2 in November.
The Advance International Trade in Goods deficit widened to $84.8 billion in November (prior -$80.3 billion); Advance Retail Inventories increased 0.3% (prior increase revised to 0.9% from 0.8%); and Advance Wholesale Inventories decreased 0.1% (prior increase revised to 1.1% from 0.9%).
Looking ahead, investors will receive the weekly Initial and Continuing Claims report on Thursday.
Nasdaq Composite +43.4% YTD
Russell 2000 +18.7% YTD
S&P 500 +15.5% YTD
Dow Jones Industrial Average +6.6% YTD
Market Snapshot
Dow 30409.50 +73.89 (0.24%)
Nasdaq 12870.01 +19.78 (0.15%)
SP 500 3732.04 +5.00 (0.13%)
10-yr Note +1/32 0.926
NYSE Adv 2131 Dec 921 Vol 691.0 mln
Nasdaq Adv 2576 Dec 1135 Vol 5.2 bln
Industry Watch
Strong: Energy, Materials, Industrials
Weak: Communication Services, Consumer Staples, Information Technology
Moving the Market
-- Dow closes at record high with small gain in lackluster session
-- AstraZeneca (AZN)/Oxford vaccine approved for emergency use in the UK
-- $600 stimulus checks started going out last night
-- Cyclical sectors outperformed
McConnell says no plans to separate $2000 checks into separate bill
30-Dec-20 15:30 ET
Dow +84.28 at 30419.89, Nasdaq +14.13 at 12864.36, S&P +3.92 at 3730.96
[BRIEFING.COM] The S&P 500 is trading near session lows with a 0.1% gain in a lackluster session from a price action perspective.
In recent stimulus news, Senate Majority Leader McConnell said on the Senate floor that he will not split up legislation to provide $2,000 stimulus checks, election security, and section 230 social media reform into separate bills. This is in-line with prior thinking that he would package all items together, supposedly making it unlikely to increase the stimulus checks.
WTI crude futures settled higher by 0.9%, or $0.42, to $48.39/bbl.
Early momentum fades in negative session
29-Dec-20 16:15 ET
Dow -68.30 at 30335.61, Nasdaq -49.20 at 12850.23, S&P -8.32 at 3727.04
[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.4%), and Dow Jones Industrial Average (-0.2%) opened Tuesday's session at fresh record highs in a momentum trade, but they ended the session with slight losses amid a general sense of buyer exhaustion. The Russell 2000 (-1.9%) succumbed to increased profit-taking interest with a 2% decline.
Interestingly, declining issues outpaced advancing issues by a 2:1 margin at the NYSE and a 5:2 margin at the Nasdaq, but relative strength in some of the mega-caps like Amazon (AMZN 3322.00, +28.04, +1.2%) limited the large-cap index declines. Sector losses weren't that big, either, with no S&P 500 sector closing lower by more than 0.7%.
The information technology sector (-0.5%) was an influential laggard amid a reversal in shares of Apple (AAPL 134.87, -1.82, -1.3%), which set an all-time high for the first time since Sept. 2 at the open. Intel (INTC 49.39, +2.32, +4.9%) was one of the few gainers in the sector after activist hedge fund Third Point urged the company to explore strategic alternatives.
The health care (+0.4%) and consumer discretionary (+0.2%) sectors finished in the green.
In the latest stimulus news, the House officially passed a bill to increase stimulus checks to $2000, but Senate Majority Leader McConnell said the Senate will begin the process to address the stimulus checks later this week. Mr. McConnell also said the Senate will address section 230 social media liability reform and election fraud.
Separately, Boeing's (BA 216.25, +0.16, +0.1%) 737 MAX was flown commercially for the first time since March 2019 via American Airlines (AAL 15.86, -0.20, -1.3%).
U.S. Treasuries finished little changed in a quiet trading session. The 2-yr yield increased one basis point to 0.13%, and the 10-yr yield was flat at 0.93%. The U.S. Dollar Index declined 0.4% to 90.00. WTI crude futures increased 0.7%, or $0.33, to $47.97/bbl.
Tuesday's economic data was limited to the S&P Case-Shiller Home Price Index, which increased 7.9% in October (Briefing.com consensus 6.9%) following a 6.6% increase in September.
Looking ahead, investors will receive the Chicago PMI for December, Pending Home Sales for November, and the Advance International Trade in Goods, Retail Inventories, and Wholesale Inventories reports for November on Wednesday.
Nasdaq Composite +43.2% YTD
Russell 2000 +17.4% YTD
S&P 500 +15.4% YTD
Dow Jones Industrial Average +6.3% YTD
Market Snapshot
Dow 30335.61 -68.30 (-0.22%)
Nasdaq 12850.23 -49.20 (-0.38%)
SP 500 3727.04 -8.32 (-0.22%)
10-yr Note -1/32 0.934
NYSE Adv 1080 Dec 2029 Vol 724.3 mln
Nasdaq Adv 1078 Dec 2692 Vol 4.6 bln
Industry Watch
Strong: Health Care, Consumer Discretionary
Weak: Information Technology, Energy, Industrials, Real Estate
Moving the Market
-- Large-cap indices set new highs at open, but buyer exhaustion kicked in
-- Profit-taking interest in recent high-flyers like small-caps and momentum stocks; mega-caps limit index declines
-- Senate Majority Leader McConnell said the Senate will address stimulus checks this week
Crude futures settle in the green
29-Dec-20 15:30 ET
Dow -22.22 at 30381.69, Nasdaq -30.89 at 12868.54, S&P -1.90 at 3733.46
[BRIEFING.COM] The S&P 500 is now trading back near its flat line with the help from its health care (+0.6%), consumer discretionary (+0.4%), communication services (+0.1%), and utilities (+0.1%) sectors.
The industrials sector is the weakest link with a 0.6% decline, while the top-weighted information technology sector is down 0.3% amid relative weakness in Apple (AAPL 135.38, -1.30, -0.9%). Interestingly, Apple set its first all-time high since Sept. 2 at today's open.
WTI crude futures settled higher by 0.7%, or $0.33, to $47.97/bbl.
Mega-caps power large-cap indices to record highs
28-Dec-20 16:15 ET
Dow +204.10 at 30403.91, Nasdaq +94.69 at 12899.43, S&P +32.30 at 3735.36
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The large-cap indices set intraday and closing record highs on Monday after President Trump signed the $900 billion stimulus and omnibus spending bill. The S&P 500 (+0.9%), Nasdaq Composite (+0.7%), and Dow Jones Industrial Average (+0.7%) posted respectable gains, while the Russell 2000 (-0.4%) closed lower after opening at an all-time high.
The market was particularly pleased with the president's signature because it put an end to the speculation of a pocket veto, which would have further delayed the bills. On a related note, the House was expected to vote today on increasing the stimulus checks to $2000, but it's unlikely to receive the 60 votes needed to pass in the Senate.
Early in the day, it seemed like the market was going to rehash the recovery script in which the leadership roles are bestowed to the cyclical, value, and small-cap stocks, but the market quickly defaulted to its main cast of mega-cap characters on no specific news catalysts.
Apple (AAPL 136.69, +4.72, +3.6%), Amazon (AMZN 3283.96, +111.27, +3.5%), and Facebook (FB 277.00, +9.60, +3.6%), to name a few, rose about 3.5% on slightly above-average volume. Accordingly, the communication services (+1.9%), consumer discretionary (+1.5%), and information technology (+1.2%) sectors, which are home to the mega-caps, advanced more than 1.0%.
On the downside, the energy (-0.5%) and materials (-0.4%) sectors fell into negative territory after being up more than 1.0% to start the session. A reversal in oil prices ($47.64, -0.68, -1.4%) weighed on sentiment in the energy space.
As noted, trading volume wasn't out of the ordinary for the mega-caps, suggesting investors either played it safe heading into the final days of the year and/or they rotated out of recent winners and into these mega-cap names. Interestingly, recent IPO stocks, which were high-flyers and not the "safest" stocks, saw noticeable weakness today.
U.S. Treasuries finished near their flat lines after starting the session with modest losses. The 2-yr yield was flat at 0.12%, and the 10-yr yield increased one basis point to 0.93%. The U.S. Dollar Index was little changed at 90.32.
Investors did not receive any economic data on Monday. Looking ahead, investors will receive the S&P Case-Shiller Home Price Index for October on Tuesday.
Nasdaq Composite +43.8% YTD
Russell 2000 +19.7% YTD
S&P 500 +15.6% YTD
Dow Jones Industrial Average +6.5% YTD
Market Snapshot
Dow 30403.91 +204.10 (0.68%)
Nasdaq 12899.43 +94.69 (0.74%)
SP 500 3735.36 +32.30 (0.87%)
10-yr Note +1/32 0.928
NYSE Adv 1663 Dec 1492 Vol 734.4 mln
Nasdaq Adv 1958 Dec 1803 Vol 5.0 bln
Industry Watch
Strong: Information Technology, Consumer Discretionary, Communication Services
Weak: Energy, Materials
Moving the Market
-- Major indices set all-time highs in mostly broad-based advance
-- President Trump signs the $900 billion stimulus bill and government funding bill
-- Mega-caps outperform
WTI crude futures settle below $48 per barrel
28-Dec-20 15:30 ET
Dow +234.67 at 30434.48, Nasdaq +119.71 at 12924.45, S&P +35.44 at 3738.50
[BRIEFING.COM] The S&P 500 is trading at session highs with a 1.0% gain. The Russell 2000 continues to underperform with a 0.2% gain.
One last look at the S&P 500 sectors shows the communication services (+2.0%), consumer discretionary (+1.7%), and information technology (+1.4%) sectors still the only sectors up more than 1.0%. The energy (-0.6%) and materials (-0.1%) sectors are trading modestly lower.
WTI crude futures settled lower by 1.4%, or $0.68, to $47.64/bbl. Oil prices were positive in overnight action and its reversal weighed on the energy stocks today.
Large-cap indices close higher before Christmas
24-Dec-20 13:20 ET
Dow +70.04 at 30199.81, Nasdaq +33.62 at 12804.74, S&P +13.05 at 3703.06
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 advanced 0.4% on this shortened Christmas Eve session. The Nasdaq Composite (+0.3%) and Dow Jones Industrial Average (+0.2%) also posted modest gains, while the Russell 2000 (-0.2%) closed lower after opening at a fresh all-time high.
Ten of the 11 S&P 500 sectors finished in positive territory, although there was a shade of defensiveness ahead of the extended holiday break.
Growth-oriented heavyweights like Apple (AAPL 131.97, +1.01, +0.8%) and Tesla (TSLA 661.77, +15.79, +2.4%) exerted influential leadership, the defensive-oriented information technology (+0.8%), real estate (+0.8%), and utilities (+0.7%) sectors were among the biggest gainers, and U.S. Treasuries ticked higher.
The energy sector (-0.6%) was the lone holdout after outperforming yesterday. Other cyclical sectors had struggled with modest losses for most of the day, but buyers stepped into the market before the close to help these sectors recoup intraday losses. Notably, declining issues still outpaced advancing issues at the Nasdaq.
One of the bigger stories today in terms of stock impact came out of China. Specifically, Chinese regulators launched an anti-monopoly investigation against Alibaba (BABA 222.00, -24.18, -13.3%), sending BABA shares down 13.3% at the New York Stock Exchange.
In other interesting developments, the UK and EU finalized a post-Brexit trade agreement, House Speaker Pelosi scheduled a full House vote on Monday to increase stimulus checks to $2000 from $600 after a unanimous consent resolution in the House was blocked, and there was chatter about President Trump possibly delaying the stimulus/government funding bills with a pocket veto.
The 10-yr yield was down three basis points at 0.93% ahead of the bond market close at 2:00 p.m. ET, while the 2-yr yield was down two basis points to 0.11%. The U.S. Dollar Index was down 0.1% to 90.32. WTI crude futures were up 0.3% to $48.24/bbl.
Investors did not receive any economic data on Thursday and won't receive any until next Tuesday when the Consumer Confidence Index for December is released by the Conference Board.
Nasdaq Composite +42.7% YTD
Russell 2000 +20.1% YTD
S&P 500 +14.6% YTD
Dow Jones Industrial Average +5.8% YTD
Market Snapshot
Dow 30199.81 +70.04 (0.23%)
Nasdaq 12804.74 +33.62 (0.26%)
SP 500 3703.06 +13.05 (0.35%)
10-yr Note +1/32 0.936
NYSE Adv 1891 Dec 1199 Vol 381.1 mln
Nasdaq Adv 1778 Dec 1910 Vol 3.2 bln
Industry Watch
Strong: Information Technology, Real Estate, Utilities, Materials
Weak: Energy, Financials, Industrials
Moving the Market
-- Positive day for the large-cap indices before Christmas
-- Defensive mindset ahead of extended holiday break
-- Stock market closed early at 1:00 p.m. ET
Defensive-oriented sectors outpace cyclical sectors
24-Dec-20 12:30 ET
Dow +2.72 at 30132.49, Nasdaq +3.72 at 12774.84, S&P +2.97 at 3692.98
[BRIEFING.COM] The S&P 500 is trading higher by 0.1% with 30 minutes left in the trading session. One last look at the S&P 500 sectors shows a divergence between defensive sectors and cyclical sectors.
Namely, the information technology (+0.4%), real estate (+0.4%), and consumer staples (+0.2%) sectors have the slight advantage, while the energy (-0.7%), financials (-0.3%), and industrials (-0.3%) sectors lag.
WTI crude futures are currently trading little changed at $48.12/bbl.
Recovery theme stands out, but market loses steam into close
23-Dec-20 16:20 ET
Dow +114.32 at 30129.77, Nasdaq -36.80 at 12771.12, S&P +2.75 at 3690.01
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market rehashed the recovery theme for most of Wednesday's session in which value, cyclical, and small-cap stocks outperformed, but the market finished near session lows as sellers rushed for the exit before the close on no specific news. The S&P 500 finished with a 0.1% gain after being up as much as 0.7% intraday.
The Russell 2000 (+0.9%) and Dow Jones Industrial Average (+0.4%) outperformed with the small-cap index closing above the 2000 level for the first time and at a new record closing high. The Nasdaq Composite (-0.3%) struggled all session amid relative weakness in growth stocks, which generally underperform when recovery stocks are in favor.
The recovery trade was fueled by President Trump's insistence that Congress increase the stimulus checks to $2000 from $600, which House Democrats supported, and Pfizer (PFE 37.44, +0.70, +1.9%) and BioNTech (BNTX 100.06, -0.50, -0.5%) reaching a second agreement with the U.S. government to supply an additional 100 million doses of their COVID-19 vaccine.
The S&P 500 energy (+2.2%) and financials (+1.6%) sectors accumulated most of the gains amid higher oil prices ($48.09/bbl, +1.09, +2.3%) and curve-steepening activity caused by selling in longer-dated Treasuries. Both developments signaled an improved sentiment regarding future economic growth.
The 2-yr yield increased one basis point to 0.13%, and the 10-yr yield increased four basis points to 0.96%. The U.S. Dollar Index decreased 0.4% to 90.34 amid relative strength in the British pound, which rose 1.0% against the dollar amid reports that an outline of a Brexit trade deal with the EU was reached.
Unfortunately, the top-weighted information technology sector (-0.9%) limited the upside in the market, as buyers preferred to focus away from the growth stocks that comprise the technology space. The real estate (-1.0%) and utilities (-0.2%) sectors slipped into negative territory during the afternoon.
An awareness that many European markets, including Germany, will be closed tomorrow for Christmas Eve, and that the U.S. market will close early at 1:00 p.m. ET, might have exacerbated selling interest into the close. Some investors prefer to be cautious heading into extended holiday breaks.
Separately, homebuilding stocks lagged after data showed the pace of new home sales decline 11.0% m/m to a seasonally adjusted annual rate of 841,000 (Briefing.com consensus 990,000). The iShares U.S. Home Construction ETF (ITB 57.07, -0.83, -1.4%) decreased 1.4%.
Reviewing all of Wednesday's economic data dump:
Personal income declined 1.1% m/m in November (Briefing.com consensus -0.2%), personal spending declined 0.4% (Briefing.com consensus -0.2%), the PCE Price Index was unchanged (Briefing.com consensus +0.2%) and the Core PCE Price Index was unchanged (Briefing.com consensus +0.2%).
The key takeaway for the market isn't that the income and spending data were disappointing, it's that the totality of the disappointment will reassure the market that the Fed is going to remain its friend by sticking with extraordinarily accommodative monetary policy.
Initial claims for the week ending December 19 decreased by 89,000 to 803,000 (Briefing.com consensus 860,000). Continuing claims for the week ending December 12 decreased by 170,000 to 5.337 million.
The key takeaway from the report is the week-over-week improvement in both initial claims and continuing claims. Both are still way too high in the big picture, yet the trend is the market's trading friend today.
New home sales decreased 11.0% m/m to 841,000 in November (Briefing.com consensus 990,000) from a downwardly revised 945,000 (from 999,000) in October. On a yr/yr basis, new home sales were up 20.8%.
The key takeaway from the report is that new home sales, which are counted when contracts are signed, slowed in November from a torrid recovery pace. Limited supply and rising prices had some impact, yet the strength of the market continues to be evident in the 20.8% increase in sales yr/yr.
New orders for durable goods increased 0.9% m/m in November (Briefing.com consensus 0.7%) while new orders, excluding transportation, increased 0.4% (Briefing.com consensus 0.5%).
The key takeaway for the market is that there were order increases across most categories and that business spending stayed on a positive track, evidenced by the 0.4% increase in new orders for nondefense capital goods excluding aircraft.
The final reading for the December University of Michigan Index of Consumer Sentiment was revised down to 80.7 from the preliminary reading of 81.4. The final reading marks an improvement from the final reading of 76.9 for November.
The key takeaway from the report is that consumer sentiment was improved from November, notwithstanding the reports of rising coronavirus infections and deaths, as well as the stimulus uncertainty, that prevailed during the survey period.
The FHFA Housing Price Index for December increased 1.5% following an unrevised 1.7% increase in November.
The weekly MBA Mortgage Applications Index increased 0.8% following a 1.1% increase in the prior week.
Investors will not receive any economic data on Thursday, which will be a shortened trading session for Christmas Eve.
Nasdaq Composite +42.3% YTD
Russell 2000 +20.3% YTD
S&P 500 +14.2% YTD
Dow Jones Industrial Average +5.6% YTD
Market Snapshot
Dow 30129.77 +114.32 (0.38%)
Nasdaq 12771.12 -36.80 (-0.29%)
SP 500 3690.01 +2.75 (0.07%)
10-yr Note -3/32 0.956
NYSE Adv 2115 Dec 997 Vol 813.0 mln
Nasdaq Adv 2344 Dec 1378 Vol 6.9 bln
Industry Watch
Strong: Energy, Financials, Industrials
Weak: Information Technology, Real Estate, Utilities
Moving the Market
-- Value, cyclical, and small-cap stocks outperformed, but market lost steam into the close on no specific news
-- President Trump called on Congress to increase stimulus checks to $2000 from $600
-- Pfizer (PFE) and BioNTech (BNTX) reached a second agreement with the U.S. government for an additional 100 million doses of vaccine
-- Treasury curve steepens amid selling in longer-dated maturities, oil prices rise
Energy stocks fueled by higher oil prices
23-Dec-20 15:25 ET
Dow +209.54 at 30224.99, Nasdaq +10.51 at 12818.43, S&P +16.38 at 3703.64
[BRIEFING.COM] The major indices continue to sport modest gains, while President Trump recently vetoed the National Defense Authorization Act. Note, Congress has enough votes to override his veto next week assuming all members vote the same way.
One last look at the S&P 500 sectors before the close shows energy (+2.4%) and financials (+1.8%) still atop the leaderboard as part of today's recovery trade that has boosted oil prices and steepened the Treasury yield curve. Conversely, the information technology (-0.3%), real estate (-0.5%), and utilities (-0.03%) sectors trade lower.
WTI crude futures settled today's session higher by 2.3%, or $1.09, to $48.09/bbl.
Technology Outperforms on Tuesday
22-Dec-20 16:15 ET
Dow -200.94 at 30015.45, Nasdaq +65.40 at 12807.92, S&P -7.66 at 3687.26
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The stock market ended Tuesday on a mixed note, as the S&P 500 (-0.2%) and Dow (-0.7%) finished in the red while the Nasdaq (+0.5%) and Russell 2000 (+1.0%) outperformed.
The Tuesday session unfolded inside a narrow range, keeping the S&P 500 near its flat line throughout the day. Nine out of eleven sectors finished in negative territory, but their losses were largely offset by relative strength in the top-weighted technology sector (+0.9%).
Roughly half of the group's components recorded gains, but Apple (AAPL 131.88, +3.65, +2.9%) was mostly responsible for the daylong outperformance. The largest stock by market cap continued climbing after yesterday's reports indicated that the company is developing an autonomous electric car. Today's rally left the stock within ten points of its September high.
High-beta chipmakers underperformed with the PHLX Semiconductor Index (-0.1%) widening this week's loss to 0.8%, but the weakness had a limited impact on the broader tech sector.
Energy (-1.7%) and communication services (-1.0%) finished at the bottom of the leaderboard. The energy sector continued its recent show of relative weakness (-3.5% week-to-date) while crude oil fell $0.79, or 1.7%, to $47.00/bbl.
The market received just a couple quarterly reports since yesterday's closing bell. Most notably, CarMax (KMX 92.33, -8.13, -8.1%) fell below its 50-day moving average (93.74) to a fresh December low after its Q3 beat was overshadowed by softening demand trends in the latter part of the quarter.
In other news, Walmart (WMT 144.20, -1.77, -1.2%) fell to a six-week low after the Department of Justice sued the retail giant over its role in the opioid crisis.
Longer-dated Treasuries recorded modest gains while the 2-yr ended flat. The 10-yr yield fell two basis points to 0.92%.
Today's trading volume was below average as roughly 900 mln shares changed hands at the NYSE floor.
Reviewing today's economic data:
Existing home sales decreased 2.5% m/m in November to a seasonally adjusted annual rate of 6.69 million (Briefing.com consensus 6.80 million). November marked the first time in six months that existing home sales did not increase on a month-over-month basis. Total sales in November were up 25.8% from a year ago.
The key takeaway from the report is that the supply of existing homes is at an all-time low. That is going to be a pressure point that feeds higher prices, shuts out an increasing number of first-time buyers, and bolsters the prospects for new home sales.
The Conference Board's Consumer Confidence Index dropped to 88.6 in December (Briefing.com consensus 96.5) from a downwardly revised 92.9 (from 96.1) in November.
The key takeaway from the report is the bump seen in the Expectations Index, as it fits the narrative of a market that has been quick to look past the dire headlines about the surge of coronavirus cases in favor of the vaccine remedy that will run continuously in the months ahead.
The third estimate for Q3 GDP produced a slight upward revision to 33.4% (Briefing.com consensus 33.1%) that was attributed primarily to larger increases in personal consumption expenditures and nonresidential fixed investment. The GDP Price Deflator was revised down to 3.5% (Briefing.com consensus 3.6%) from 3.6%.
The key takeaway from the report is the same as it always is with the third estimate for quarterly GDP, which is that there is no new meaningful takeaway for the market given the report's dated nature. To that end, we're less than two weeks away from completing the fourth quarter and this is a revised third quarter report.
The weekly MBA Mortgage Index (prior 1.1%) will be reported tomorrow at 7:00 ET, followed by November Personal Income (Briefing.com consensus -0.2%; prior -0.7%), Personal Spending (Briefing.com consensus -0.2%; prior 0.5%, PCE Prices (Briefing.com consensus 0.2%; prior 0.0%), and core PCE Prices (Briefing.com consensus 0.2%; prior 0.0%) at 8:30 ET along with Initial Claims (Briefing.com consensus 860K; prior 885K) and Continuing Claims (prior 5.508M). The December FHFA Housing Price Index (prior 1.7%) will be released at 9:00 ET while November New Home Sales (Briefing.com consensus 990,000; prior 999,000) and the final December Michigan Consumer Sentiment Survey (Briefing.com consensus 80.5; prior 81.4) will be reported at 10:00 ET.
Nasdaq Composite +42.7% YTD
Russell 2000 +19.2% YTD
S&P 500 +14.1% YTD
Dow Jones Industrial Average +5.2% YTD
Market Snapshot
Dow 30015.45 -200.94 (-0.67%)
Nasdaq 12807.92 +65.40 (0.51%)
SP 500 3687.26 -7.66 (-0.21%)
10-yr Note +7/32 0.918
NYSE Adv 1330 Dec 1790 Vol 909.3 mln
Nasdaq Adv 2029 Dec 1680 Vol 5.60 bln
Industry Watch
Strong: Technology, Utilities, Real Estate
Weak: Consumer Discretionary, Industrials, Energy, Communication Services
Moving the Market
-- President Trump expected to sign stimulus bill and federal budget soon
-- Focus remains on new coronavirus strain in the U.K.
Inching to the Close
22-Dec-20 15:25 ET
Dow -182.83 at 30033.56, Nasdaq +54.12 at 12796.55, S&P -7.88 at 3687.05
[BRIEFING.COM] The S&P 500 remains lower by 0.2% going into the final 30 minutes of action.
Crude oil finished today's pit session with a $0.79, or 1.7%, loss, at $47.00/bbl, falling toward yesterday's low (46.18). The energy sector, meanwhile, has widened its loss to 1.4%. The group has fallen 3.2% this week.
Longer-dated Treasuries finished today's session at their best levels of the day, sending the 10-yr yield lower by two basis points to 0.92%.
Financial stocks led recovery effort
21-Dec-20 16:20 ET
Dow +37.40 at 30216.39, Nasdaq -13.12 at 12742.43, S&P -14.49 at 3694.93
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined as much as 2.0% on Monday, as concerns surrounding a new strain of coronavirus primarily in the UK overshadowed a $900 billion stimulus agreement. Investors, however, steadily bought the intraday dip to leave the benchmark index down by 0.4% for the session.
The Nasdaq Composite (-0.1%) almost completed the comeback after being down 1.8%, while the Dow Jones Industrial Average (+0.1%) and Russell 2000 (+0.02%) eked out gains.
The new variant of the coronavirus reportedly spreads 70% faster than other variants and was previously flagged as an issue, but the market was initially unsettled to see the UK impose a new lockdown in London and other countries restrict inbound travel from the UK.
The way the market regathered, though, suggested that this new variant isn't necessarily a U.S. issue yet (Europe Stoxx 600 fell 2.3% while U.S. equities cut losses) and that stocks were simply vulnerable against any negative-sounding development after the major indices hit record highs last week.
The influential information technology (+0.1%) and financials (+1.2%) sectors helped the market recover. The energy (-1.8%), utilities (-1.3%), consumer staples (-1.1%), and health care (-1.0%) sectors finished as laggards, with energy stocks pressured by lower oil prices ($47.79/bbl, -1.25, -2.6%).
The financials sector noticeably outperformed after the Fed said it will permit large banks to repurchase shares in the first quarter, albeit with income limitations. JPMorgan Chase (JPM 123.55, +4.47, +3.8%) authorized a $30 billion share repurchase program, and Goldman Sachs (GS 256.98, +14.85, +6.1%) shares surged 6%.
The market, and Dow, received further support from Apple (AAPL 128.23, +1.58, +1.2%), Microsoft (MSFT 222.59, +4.00, +1.8%), and Nike (NKE 144.02, +6.72, +4.9%). Tesla (TSLA 649.86, 45.14, -6.6%), meanwhile, was a drag on its first day as an S&P 500 component.
Apple is reportedly targeting 2024 to produce passenger vehicles with self-driving capabilities and breakthrough battery technology, according to Reuters. Microsoft was upgraded to Buy from Neutral at Citigroup. Nike reported positive earnings results and an encouraging revenue outlook.
U.S. Treasuries finished mixed, but notably, the 10-yr Treasury note started to come down from early highs well before equities started to rebound. The 2-yr yield increased one basis point to 0.12%, while the 10-yr yield decreased one basis point to 0.94% after touching 0.88% at its low. The U.S. Dollar Index gained 0.2% to 90.17.
Investors did not receive any economic data on Monday. Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for December, Existing Home Sales for November, and the third estimate for Q3 GDP.
Nasdaq Composite +42.0% YTD
Russell 2000 +18.1% YTD
S&P 500 +14.4% YTD
Dow Jones Industrial Average +5.9% YTD
Market Snapshot
Dow 30216.39 +37.40 (0.12%)
Nasdaq 12742.43 -13.12 (-0.10%)
SP 500 3694.93 -14.49 (-0.39%)
10-yr Note +1/32 0.934
NYSE Adv 1180 Dec 1963 Vol 1.1 bln
Nasdaq Adv 1650 Dec 2052 Vol 5.1 bln
Industry Watch
Strong: Financials, Information Technology
Weak: Energy, Health Care, Utilities, Consumer Staples
Moving the Market
-- Major indices opened sharply lower amid concerns about a new strain of coronavirus, but Dow and Russell 2000 end day in positive territory
-- Buy-the-dip mindset amid possible overreaction to virus news
-- Financial stocks noticeably outperformed after Fed allows large banks to resume share buybacks in Q1
-- Lawmakers finally reached a $900 billion stimulus deal
WTI crude futures settle below $48 per barrel
21-Dec-20 15:25 ET
Dow +19.14 at 30198.13, Nasdaq -36.85 at 12718.70, S&P -19.17 at 3690.25
[BRIEFING.COM] The S&P 500 is trading lower by 0.5% at buyers struggle to propel the benchmark index back to its flat line.
One last look at the sector performances shows energy (-1.6%), utilities (-1.7%), health care (-1.2%), and consumer staples (-1.2%) down more than 1.0%, while the financials sector (+1.3%) remains the only sector trading in positive territory.
WTI crude futures settled sharply lower by 2.6%, or $1.25, to $47.79/bbl.
Stocks take a breather to end a record-setting week
18-Dec-20 16:20 ET
Dow -124.32 at 30178.99, Nasdaq -9.11 at 12755.55, S&P -13.07 at 3709.42
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.4% on Friday, as the market took a breather after each of the major indices started the session at fresh record highs. The Dow Jones Industrial Average (-0.4%) and Russell 2000 (-0.4%) also declined 0.4%, while the Nasdaq Composite declined 0.1%,
At its low, the S&P 500 was down 1.0% amid a steady retreat throughout the day, until a wave of buyers before the close helped pare losses. The real estate (-1.8%) and energy (-1.7%) sectors still fell more than 1.5%, while the materials (+0.5%), consumer staples (+0.2%), industrials (+0.03%), and health care (+0.02%) sectors emerged into the green.
Some attributed negative-sounding stimulus headlines that highlighted continued disagreements for the lack of buying conviction. The last-minute bounce, however, came amid news that Senate Majority Leader McConnell was gauging support for a two-day continuing resolution to avoid a government shutdown and extend negotiations.
Price action might have also been influenced by market participants anticipating the flurry of activity after the close: quadruple-witching options expiration, quarterly rebalancing of S&P 500, annual reconstitution of the Nasdaq 100, Tesla's (TSLA 695.00, +39.10, +6.0%) inclusion into the S&P 500, and Nike's (NKE 137.28, -3.22, -2.3%) earnings report.
Intel (INTC 47.46, -3.19, -6.3%) shares, meanwhile, accelerated losses into the close on reports that Microsoft (MSFT 218.59, -0.83, -0.4%) will design its own chips for its Surface PC.
Separately, shares of FedEx (FDX 275.57, -16.69, -5.7%) and Moderna (MRNA 140.23, -3.77, -2.6%) struggled with the broad market despite some encouraging news. Specifically, FedEx beat top and bottom-line estimates, while the FDA advisory panel recommended in unanimous vote that Moderna's Covid vaccine should be authorized for emergency use.
U.S. Treasuries finished the session mixed in a quiet session for bonds. The 2-yr yield decreased two basis points to 0.11%, while the 10-yr yield increased two basis points to 0.95%. The U.S. Dollar Index increased 0.2% to 90.01. WTI crude futures rose 1.5%, or $0.71, to $49.04/bbl.
Reviewing Friday's economic data:
The Conference Board's Leading Economic Index increased 0.6% m/m in November (Briefing.com consensus 0.4%), marking the seventh straight month of positive readings. The index for October was revised to 0.8% from 0.7%.
The key takeaway from the report is the ongoing deceleration since May in the pace of growth for the leading indicators, which, according to the Conference Board, suggests a significant moderation in growth as the U.S. economy moves into 2021.
The current account deficit for the third quarter totaled $178.5 billion (Briefing.com consensus -$190.0 billion). The second quarter deficit was revised to $161.4 billion from $170.5 billion.
Investors will not receive any notable economic data on Monday.
Nasdaq Composite +42.2% YTD
Russell 2000 +18.1% YTD
S&P 500 +14.8% YTD
Dow Jones Industrial Average +5.8% YTD
Market Snapshot
Dow 30178.99 -124.32 (-0.41%)
Nasdaq 12755.55 -9.11 (-0.07%)
SP 500 3709.42 -13.07 (-0.35%)
10-yr Note -1/32 0.950
NYSE Adv 1339 Dec 1745 Vol 3.1 bln
Nasdaq Adv 1631 Dec 2003 Vol 7.0 bln
Industry Watch
Strong: Consumer Staples, Materials, Industrials, Health Care
Weak: Real Estate, Energy, Utilities
Moving the Market
-- Market takes a breather at end of record-setting week
-- Stimulus headline volatility
-- Quarterly rebalancing of S&P 500, annual reconstitution of the Nasdaq 100, Tesla (TSLA) inclusion into S&P 500 after the close, quadruple-witching options expiration
Crude futures settle higher but energy stocks fall
18-Dec-20 15:25 ET
Dow -258.00 at 30045.31, Nasdaq -90.10 at 12674.56, S&P -35.01 at 3687.48
[BRIEFING.COM] The S&P 500 is trading at fresh session lows with a 0.9% decline in a continuation of the day's downwards trend.
One last look at the sector performances shows energy (-2.0%), real estate (-2.0%), and financials (-1.3%) leading the broader decline, while the materials sector (-0.2%) is down the least. The top-weighted information technology sector is down 0.9%.
WTI crude futures settled higher by 1.5%, or $0.71, to $49.04/bbl.
Record closes for each major index
17-Dec-20 16:15 ET
Dow +148.83 at 30303.31, Nasdaq +106.56 at 12764.66, S&P +21.31 at 3722.49
https://www.briefing.com/stock-market-update
[BRIEFING.COM] Each of the major indices closed at record highs on Thursday, as the market continued to ride its positive trend in a relatively calm session. The Russell 2000 rose 1.3% and extended its recent outperformance over the S&P 500 (+0.6%), Nasdaq Composite (+0.8%), and Dow Jones Industrial Average (+0.5%).
Nine of the 11 S&P 500 sectors finished in positive territory with real estate (+1.2%), materials (+1.2%), and health care (+1.1%) taking the top spots today. The energy (-0.6%) and communication services (-0.3%) sectors were the lone holdouts, with the latter pressured by weakness in AT&T (T 29.62, -0.68, -2.2%) following an analyst downgrade at Morgan Stanley.
Yesterday's affirmation of the Fed's highly-accommodative monetary policy had a lingering effect on market action today. Namely, investors felt emboldened to overlook relatively disappointing weekly initial claims data while the U.S. Dollar Index (89.82, -0.63, -0.7%) fell to its lowest level since April 2018.
The weaker dollar contributed to decent performances in foreign equities, oil prices ($48.33/bbl, +$0.50, +1.1%), precious metals, and crypto currencies, although energy stocks evidently did not rise with the higher oil prices.
In the homebuilding space, stocks benefited from better-than-expected housing starts and building permits data for November, which featured a 27.1% yr/yr increase in single-family starts, and positive earnings results and encouraging guidance from Lennar (LEN 79.95, +5.66, +7.6%). The iShares U.S. Home Construction ETF (ITB 57.78, +2.17, +3.9%) increased 4%.
U.S. Treasuries edged lower in a relatively uneven session, as investors contemplated a 23,000 increase in weekly initial claims to 885,000 (Briefing.com consensus 795,000) and the incoming new supply of Treasuries needed to finance a potential stimulus bill. The 2-yr yield increased one basis point to 0.13%, and the 10-yr yield increased one basis point to 0.93%.
Reviewing Thursday's economic data:
Initial claims for the week ending December 12 increased by 23,000 to 885,000 (Briefing.com consensus 795,000). Continuing claims for the week ending December 5 decreased by 273,000 to 5.508 million, which was the lowest level since March.
The key takeaway from the report is that the jump in initial claims underscores the real, and adverse, economic impact of the latest surge in coronavirus cases and the business restrictions imposed to help contain the spread.
Housing starts increased 1.2% m/m in November to a seasonally adjusted annual rate of 1.547 million (Briefing.com consensus 1.530 million). Building permits increased 6.2% m/m to 1.639 million (Briefing.com consensus 1.550 million).
The key takeaway from the report is that the starts and permits growth was driven largely by multi-unit dwellings; however, single-unit starts and permits were up 0.4% and 0.9%, respectively, which belies robust year-over-year growth of 27.1% and 22.2%.
The Philadelphia Fed Index dropped to 11.1 in December (Briefing.com consensus 19.0) from 26.3 in November.
Looking ahead, investors will receive the Conference Board's Leading Economic Index for November and the Q3 Current Account Balance.
Nasdaq Composite +42.3% YTD
Russell 2000 +18.6% YTD
S&P 500 +15.2% YTD
Dow Jones Industrial Average +6.2% YTD
Market Snapshot
Dow 30303.31 +148.83 (0.49%)
Nasdaq 12764.66 +106.56 (0.84%)
SP 500 3722.49 +21.31 (0.58%)
10-yr Note -2/32 0.937
NYSE Adv 2058 Dec 1035 Vol 958.8 mln
Nasdaq Adv 2467 Dec 1166 Vol 4.9 bln
Industry Watch
Strong: Materials, Health Care, Real Estate
Weak: Energy, Communication Services
Moving the Market
-- Major indices close at fresh record highs in continuation of positive trend
-- Relative weakness in energy stocks
-- Weaker dollar lifts oil prices and precious metals
Energy stocks down despite higher oil prices
17-Dec-20 15:25 ET
Dow +136.82 at 30291.30, Nasdaq +84.73 at 12742.83, S&P +19.33 at 3720.51
[BRIEFING.COM] The S&P 500 is trading higher by 0.5% and is vying for a record close.
One last look at the S&P 500 sectors shows materials (+1.1%), real estate (+1.1%), utilities (+1.1%) leading the advance with 1.1% gains, while the energy (-0.4%) and communication services (-0.4%) sectors remain in negative territory with 0.4% losses.
Energy stocks are struggling despite higher oil prices. WTI crude futures increased 1.1%, or $0.50, to $48.33/bbl.
Stocks close mixed despite soothing stimulus news, Fed comments
16-Dec-20 16:15 ET
Dow -44.77 at 30154.48, Nasdaq +63.13 at 12658.10, S&P +6.55 at 3701.18
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.2%) edged higher on Wednesday, as investors were content to hear that a stimulus deal is close to being reached and that the Fed remained committed to its dovish monetary policy framework. The Nasdaq Composite (+0.5%) closed at a record high, while the Dow Jones Industrial Average (-0.2%) and Russell 2000 (-0.4%) closed lower.
The consumer discretionary (+1.1%) and information technology (+0.7%) sectors led the market higher, but the broader market was generally mixed as investors had largely anticipated these events during yesterday's rally. The utilities (-1.2%), industrials (-0.6%), energy (-0.4%), and materials (-0.3%) sectors closed lower.
Specifically, the Fed kept rates near zero as expected and signaled that it will remain there through 2023, increased its forecast for 2021 GDP growth to 4.2% from 4.0%, and said it will continue to purchase at least $120 billion of Treasury and mortgage-backed securities per month until substantial progress has been made with respect to employment and inflation.
The "extraordinarily accommodative" monetary policy, to quote Fed Chair Powell, should reassure the market in the 2021 recovery narrative, especially since the central bank expects any vaccine-induced inflation to be short-lived. Additional fiscal support is still needed, but the wait could soon be over before week's end.
Reports indicated that congressional leadership is close to reaching a $900 billion stimulus deal that includes direct paychecks, enhanced unemployment benefits, small business relief, and funding for the paycheck protection program. State and local aid and liability protection are reportedly not included.
The prior bipartisan proposal didn't mention direct payments to households, so that inclusion in this potential deal had a positive effect on shares of Amazon (AMZN 3240.96, +75.84, +2.4%) and Shopify (SHOP 1157.31, +83.21, +7.8%). On a related note, total retail sales declined 1.1% m/m in November (Briefing.com consensus -0.2%) on top of a downwardly revised 0.1% decline (from +0.3%) in October.
U.S. Treasuries finished near their flat lines in a tight-ranged session that supported the view that the market wasn't surprised by the stimulus update or the Fed. The 2-yr yield was flat at 0.12%, and the 10-yr yield was flat at 0.92%. The U.S. Dollar Index decreased 0.2% to 90.32. WTI crude futures increased 0.5%, or $0.24, to $47.83/bbl.
Reviewing Wednesday's economic data:
Total retail sales declined 1.1% m/m in November (Briefing.com consensus -0.2%) on top of a downwardly revised 0.1% decline (from +0.3%) in October. Retail sales, excluding autos, declined 0.9% (Briefing.com consensus +0.1%) after declining a downwardly revised 0.1% (from +0.2%) in October.
The key takeaway from the report was that the sales declines were broad based. Building materials (+1.1%), food and beverage stores (+1.6%), and nonstore retailers (+0.2%) were the only major categories that saw m/m increases.
The NAHB Housing Market Index decreased to two points to 86 in December (Briefing.com consensus 88).
Business inventories increased 0.7% in October (Briefing.com consensus 0.6%) following an upwardly revised 0.8% increase in October (from 0.7%).
The preliminary IHS Markit Manufacturing PMI for December decreased to 56.5 from 56.7 in November, while the Services PMI decreased to 55.3 from 58.4 in November.
The weekly MBA Mortgage Applications Index increased 1.1% following a 1.2% decline in the prior week.
Looking ahead, investors will receive weekly Initial and Continuing Claims, Housing Starts and Building Permits for November, and the Philadelphia Fed Index for December on Thursday.
Nasdaq Composite +41.1% YTD
Russell 2000 +17.0% YTD
S&P 500 +14.6% YTD
Dow Jones Industrial Average +5.7% YTD
Market Snapshot
Dow 30154.48 -44.77 (-0.15%)
Nasdaq 12658.10 +63.13 (0.50%)
SP 500 3701.18 +6.55 (0.18%)
10-yr Note -1/32 0.928
NYSE Adv 1429 Dec 1670 Vol 953.3 mln
Nasdaq Adv 1756 Dec 1887 Vol 4.5 bln
Industry Watch
Strong: Consumer Discretionary, Information Technology, Real Estate
Weak: Energy, Industrials, Materials
Moving the Market
-- Fed maintains dovish monetary policy framework
-- Reports indicate that a $900 billion stimulus deal is close to being reached
-- Retail sales for November weaker than expected
WTI crude futures edge higher
16-Dec-20 15:25 ET
Dow -1.39 at 30197.86, Nasdaq +77.95 at 12672.92, S&P +12.36 at 3706.99
[BRIEFING.COM] The S&P 500 continues to trade higher by 0.3% while the Russell 2000 is struggling with a 0.2% decline.
One last look at the S&P 500 sectors shows information technology (+0.9%) and consumer discretionary (+1.2%) up more than 1.0% amid strength in their mega-cap components, while the utilities (-0.8%) and industrials (-0.3%) sectors underperform in negative territory.
Separately, Fed Chair Powell recently said that any unleashing of pent-up demand driven by vaccinations would likely have the markings of being a transient pickup in inflation. In other words, he doesn't expect any vaccine-induced inflation to be lasting.
WTI crude futures settled higher by 0.5%, or $0.24, to $47.83/bbl.
Market led higher by Apple and stimulus hopes
15-Dec-20 16:15 ET
Dow +337.76 at 30199.25, Nasdaq +155.02 at 12594.97, S&P +47.13 at 3694.63
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The large-cap indices advanced more than 1.0% on Tuesday, predominately due to the influence of Apple (AAPL 127.88, +6.10, +5.0%) and renewed stimulus optimism. The Russell 2000 closed at a record high with a 2.4% gain, followed by the S&P 500 (+1.3%), Nasdaq Composite (+1.3%), and Dow Jones Industrial Average (+1.1%).
Early in the session, Apple was the main driver of things after the Nikkei reported that the company plans to increase iPhone production by 30% yr/yr in the first half of 2021. With a $2.17 trillion market capitalization, the stock's 5% appreciation was an undeniable force for the major indices.
From a more macro-related perspective on today's action, the recovery narrative creeped back into the market on word of a stimulus meeting involving Congressional leadership at 4:00 p.m. ET. Hopes for a deal guided the cyclical and value stocks to leadership roles and nudged Treasury yields higher.
The energy (+1.9%), materials (+1.9%), and financials (+1.7%) sectors were among the biggest gainers in the S&P 500, which happened to snap a benign four-session losing streak today. The consumer staples sector (+0.2%) increased the least.
Investors didn't get too carried away, though, considering the potential to be upset by the outcome of today's stimulus meeting while others preferred to wait for the conclusion of the FOMC policy meeting tomorrow.
In the health care space, Eli Lilly (LLY 167.34, +9.43, +6.0%) stood out with an impressive 6% gain. The company issued upside guidance for FY20 and FY21, increased its quarterly dividend by 15%, and agreed to acquire Prevail Therapeutics (PRVL 22.75, +10.25, +82.0%) for $22.50 per share, or about $1 billion, in cash.
U.S. Treasuries finished on a lower note, particularly longer-dated maturities since shorter-dated maturities remained anchored by the Fed. The 2-yr yield increased one basis point to 0.12%, and the 10-yr yield increased three basis points to 0.92%. The U.S. Dollar Index declined 0.3% to 90.45. WTI crude futures rose 1.3%, or $0.59, to $47.59/bbl.
Reviewing Wednesday's economic data:
Industrial production increased 0.4% m/m in November (Briefing.com consensus 0.3%) following a downwardly revised 0.9% increase (from 1.1%) in October. The capacity utilization rate jumped to 73.3% (Briefing.com consensus 73.0%) from an upwardly revised 73.0% (from 72.8%) in October.
The key takeaway from the report was the robust growth seen in the production of motor vehicles and parts, which increased 5.3% and helped account for 0.4 percentage points of the 0.8% increase in manufacturing output.
Import prices increased 0.1% in November; and prices excluding oil decreased 0.3%. Export prices increased 0.6% in November; and prices excluding agriculture increased 0.3%.
Looking ahead to Thursday, investors will receive Retail Sales for November, the preliminary IHS Markit Manufacturing and Services PMIs for December, the NAHB Housing Market Index for December, Business Inventories for October, the weekly MBA Mortgage Applications Index, and the FOMC Rate Decision.
Nasdaq Composite +40.4% YTD
Russell 2000 +17.5% YTD
S&P 500 +14.4% YTD
Dow Jones Industrial Average +5.8% YTD
Market Snapshot
Dow 30199.25 +337.76 (1.13%)
Nasdaq 12594.97 +155.02 (1.25%)
SP 500 3694.63 +47.13 (1.29%)
10-yr Note -1/32 0.910
NYSE Adv 2346 Dec 761 Vol 923.7 mln
Nasdaq Adv 2523 Dec 1122 Vol 4.3 bln
Industry Watch
Strong: Utilities, Energy, Materials, Financials, Information Technology
Weak: Consumer Staples
Moving the Market
-- Apple (AAPL) rose 5% on report that it's planning to increase iPhone production by 30% in first half of 2021
-- Cyclical, value, and small-cap stocks outperformed ahead of a key stimulus meeting at 4:00 p.m. ET (market close)
-- Russell 2000 closes at fresh record high
Oil prices rise again, help energy stocks
15-Dec-20 15:30 ET
Dow +319.73 at 30181.22, Nasdaq +139.90 at 12579.85, S&P +43.28 at 3690.78
[BRIEFING.COM] The S&P 500 is trading higher by 1.2% while the Russell 2000 is up 2.2% and has a good chance to close at a record high.
One last look at the sector performances shows six sectors up by at least 1.0%, including utilities (+1.9%), materials (+1.8%), energy (+1.7%), and financials (+1.6%) at the top. No sector is trading lower, but the consumer staples sector lags with a 0.2% gain.
WTI crude futures settled the session higher by 1.3%, or $0.59, to $47.59/bbl. The increase in oil futures has benefited energy stocks today.
Vaccine rolls out, but market rolls over
14-Dec-20 16:15 ET
Dow -184.82 at 29861.49, Nasdaq +62.17 at 12439.95, S&P -15.97 at 3647.50
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 started Monday's session with a 0.9% gain as the U.S. began distributing the first COVID-19 vaccines to the public, but an orderly retreat ensued that left the benchmark index down 0.4% for the session. The Dow Jones Industrial Average (-0.6%) joined the benchmark index in the red after hitting an all-time high in early action.
The Nasdaq Composite (+0.5%) and Russell 2000 (+0.1%), however, ended the session in positive territory.
The vaccine rollout was officially authorized by the FDA after it approved the vaccine from Pfizer (PFE 39.21, -1.91, -4.6%) and BioNTech (BNTX 108.27, -19.03, -15.0%) for emergency use in patients ages 16 or older. The decision was widely expected, though, and the sharp declines in PFE and BNTX shares were indicative of the news being priced in already.
Within minutes after the open, the S&P 500 energy sector (-3.5%) and last week's hot IPO companies succumbed to profit-taking interest, sapping some enthusiasm from this market. The financials (-1.2%), materials (-1.3%), and industrials (-1.3%) sectors also lagged, while the consumer discretionary (+0.5%) and information technology (+0.4%) sectors closed higher.
One reported headwind for cyclical stocks was an acknowledgement from NYC Mayor Bill De Blasio that there's still a possibility of a full shutdown due to the rise in coronavirus cases in the city. Naturally, growth stocks outperformed, including Tesla (TSLA 639.83, +29.84, +4.5%) ahead of its reconstitution into the S&P 500 after Friday's close.
In stimulus news, reports indicated that the $908 billion bipartisan bill was going to be split into two bills: one bill for $748 billion that excludes state and local aid and liability protection and a second bill for $160 billion that includes both contents. House Speaker Pelosi said both sides remained in negotiations.
Separately, today was a busy day for M&A news, and none was larger than the $39 billion cash-and-stock deal involving Alexion Pharma (ALXN 156.31, +35.33, +29.2%) and AstraZeneca (AZN 50.03, -4.24, -7.8%). Alexion agreed to be acquired by AstraZeneca for $175.00 per share or a 45% premium to Friday's closing price for ALXN.
U.S. Treasuries finished little changed after starting the session in the red, as investors returned to bonds amid the lackluster intraday price action in the major indices. The 2-yr yield was flat at 0.11%, and the 10-yr yield was flat at 0.89%. The U.S. Dollar Index declined 0.3% to 90.69. WTI crude increased 0.9%, or $0.42, to $47.00/bbl.
Investors did not receive any economic data on Monday. Looking ahead to Tuesday, investors will receive Industrial Production and Capacity Utilization for November, the Empire State Manufacturing Index for December, Export and Import Prices for November, and Net Long-Term TIC Flows for October.
Nasdaq Composite +38.6% YTD
Russell 2000 +14.7% YTD
S&P 500 +12.9% YTD
Dow Jones Industrial Average +4.6% YTD
Market Snapshot
Dow 29861.49 -184.82 (-0.62%)
Nasdaq 12439.95 +62.17 (0.50%)
SP 500 3647.50 -15.97 (-0.44%)
10-yr Note 0/32 0.901
NYSE Adv 1230 Dec 1907 Vol 1.0 bln
Nasdaq Adv 1824 Dec 1830 Vol 4.4 bln
Industry Watch
Strong: Consumer Discretionary, Information Technology
Weak: Energy, Materials, Financials, Industrials
Moving the Market
-- Vaccine rolls out, but S&P 500 and Dow roll over
-- Cyclical sectors lagged, while growth stocks outperformed
-- Energy sector and last week's hot IPO companies succumbed to profit-taking interest
-- NYC shutdown concerns
Energy stocks underperform despite higher oil prices
14-Dec-20 15:30 ET
Dow -50.85 at 29995.46, Nasdaq +119.64 at 12497.42, S&P +0.02 at 3663.49
[BRIEFING.COM] The S&P 500 is trading relatively unchanged amid losses in nine of its 11 sectors.
The energy sector is currently down the most with a steep 3.1% decline (trimming its monthly gain to 8.2%), followed by more tolerable declines in the financials (-0.8%), materials (-0.7%), and industrials (-0.7%) sectors. The consumer discretionary (+1.0%) and information technology (+0.9%) sectors trade comfortably higher.
WTI crude futures settled higher by 0.9%, or $0.42, to $47.00/bbl.
Market does repair work to end the week
11-Dec-20 16:15 ET
Dow +47.11 at 30046.31, Nasdaq -27.94 at 12377.78, S&P -4.64 at 3663.47
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 decreased 0.1% on Friday to overcome a 1.0% decline in midday action. The Nasdaq Composite (-0.2%) and Russell 2000 (-0.6%) also pared intraday losses, while the Dow Jones Industrial Average (+0.2%) eked out a positive finish.
The outperformance of the Dow, and accordingly the S&P 500 communication services sector (+1.2%), was predominately because Walt Disney (DIS 175.72, +21.03, +13.6%) provided bullish-sounding updates for its subscription business. Disney shares surged 13.6% to fresh all-time highs.
As for the broader market, there was generally a tired disposition in the first half of the session following a record close in the Russell 2000 yesterday, the slew of hot IPOs this week, and increased interest in the more speculative parts of the market. In addition, there was some disappointment with stimulus talks and New York prohibiting indoor dining to curb the spread of the coronavirus.
Appropriately, the cyclical energy (-1.2%) and financials (-1.0%) sectors were today's laggards, but they did close off session lows as investors bought the intraday dip in the second half of the session. News that the Senate passed a continuation resolution to fund the government until Dec. 18 was construed as a positive influence for sentiment.
Separately, the FDA advisory panel recommended in a 17-4 vote that the Covid vaccine from Pfizer (PFE 41.12, -0.61, -1.5%) and BioNTech (BNTX 127.30, -2.24, -1.7%) should be approved for emergency use. The FDA said it will rapidly work toward finalization and issuance of an emergency use authorization.
In earnings news, Oracle (ORCL 60.61, +1.13, +1.9%), Broadcom (AVGO 405.82, -4.22, -1.0%), Costco (COST 375.10, +2.31, +0.6%), and lululemon athletica (LULU 344.32, -24.75, -6.7%) closed mixed following their better-than-expected earnings reports.
U.S. Treasuries finished with modest gains, pushing yields lower across the curve. The 2-yr yield decreased three basis points to 0.11%, and the 10-yr yield decreased two basis points to 0.89%. The U.S. Dollar Index increased 0.2% to 90.98. WTI crude futures decreased 0.5%, or $0.24, to $46.58/bbl.
Reviewing Friday's economic data:
Total PPI was up 0.1% m/m in November and so was core PPI, which excludes food and energy. That was below the Briefing.com consensus estimate, which called for 0.2% increases for both series.
The key takeaway from the report is that there weren't any inflation alarm bells ringing in the November producer price data. On a yr/yr basis, total PPI was up 0.8% and core PPI was up 1.4%.
The preliminary December University of Michigan Index of Consumer Sentiment rose to 81.4 (Briefing.com consensus 75.0) from 76.9 in November.
The key takeaway from the report is the finding that the uptick in sentiment was driven by a partisan shift in economic prospects, with expectations among Democrats rising by 39.5 points and expectations among Republicans falling by 34.9 points. In other words, the concerns related to Covid were not the swing factor in the preliminary reading, but with job losses increasing, and Congress still bickering over fiscal stimulus, there is latent potential for a downward revision with the final reading.
Investors will not receive any notable economic data on Monday.
Nasdaq Composite +38.0% YTD
Russell 2000 +14.6% YTD
S&P 500 +13.4% YTD
Dow Jones Industrial Average +5.3% YTD
Market Snapshot
Dow 30046.31 +47.11 (0.16%)
Nasdaq 12377.78 -27.94 (-0.23%)
SP 500 3663.47 -4.64 (-0.13%)
10-yr Note +2/32 0.888
NYSE Adv 1302 Dec 1811 Vol 909.2 mln
Nasdaq Adv 1484 Dec 2166 Vol 4.2 bln
Airbnb, small-caps, and energy stocks win the day
10-Dec-20 16:20 ET
Dow -69.55 at 29999.20, Nasdaq +66.85 at 12405.72, S&P -4.72 at 3668.11
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.1% on Thursday in a mixed session that saw the bulk of the demand go to small-caps, energy stocks, and Airbnb (ABNB 144.71, +76.71, +112.8%) in its IPO. The Russell 2000 closed at a record high with a 1.1% gain, the Nasdaq Composite gained 0.5%, and the Dow Jones Industrial Average declined 0.2%.
Airbnb more than doubled in its public debut, opening at $146 per share after pricing its IPO at $68 per share, representing the pent-up demand for newly-minted public companies. Unlike yesterday when the Nasdaq sold off following the DoorDash (DASH 186.00, -3.51, -1.9%) IPO, the reaction today was more constructive and elicited a buy-the-dip mentality.
The top-weighted S&P 500 information technology sector increased 0.1% after being down 0.9% shortly after the open. The energy sector, though, was the top performer with another 2.9% gain amid higher oil prices ($46.91, +1.42, +3.1%). Eight sectors closed lower with industrials (-0.9%) as the underperformer with a 0.9% decline.
While retail investors didn't benefit from the Airbnb IPO pop, but they did have plenty of opportunities on this stock-picker kind-of-day.
Starbucks (SBUX 105.39, +4.99, +5.0%) shares rose 5% after the company issued a stronger earnings outlook for the next few years. Snap (SNAP 53.19, +4.04, +8.2%) and Twitter (TWTR 51.21, +3.98, +8.4%) announced an integrated partnership, sending both shares sharply higher.
Adobe (ADBE 476.87, -6.87, -1.4%) reported positive earnings results and upbeat guidance, but it wasn't enough to inspire a positive stock reaction.
Separately, weekly initial jobless claims increased by 137,000 to 853,000 (Briefing.com consensus 720,000) to reach its highest level since the week of September 18. The disappointing unemployment data was perhaps an incentivizing factor for stimulus talks, which reportedly progressed today.
U.S. Treasuries finished on a higher note, more so on the longer-end of the curve. The 2-yr yield decreased one basis point to 0.14%, and the 10-yr yield decreased two basis points to 0.91%. The U.S. Dollar Index decreased 0.3% to 90.81.
Reviewing Thursday's economic data:
Initial jobless claims for the week ending December 5 increased by 137,000 to 853,000 (Briefing.com consensus 720,000) while continuing claims for the week ending November 28 increased by 230,000 to 5.757 million. This was the highest level of initial jobless claims since the week of September 18.
The latest initial claims data is a headwind on the surface, but may ultimately be construed as a tailwind beneath the surface because it was terrible. The connection for the market is that, because it was terrible, it might compel Congress to stop all the bickering and reach an agreement on stimulus before the December recess.
Total CPI and core CPI both increased 0.2% m/m in November. The former was above the 0.1% Briefing.com consensus while the latter was in line.
The key takeaway from the report is that there aren't any inflation alarm bells (or rate-hike bells) ringing in this report for the Fed seeing that the yr/yr increases for total CPI and core CPI held steady at 1.2% and 1.6%, respectively.
The Treasury Budget showed a $145.3 bln deficit in November, marking the 66th time over the last 67 fiscal years that November -- which has no major tax due dates -- has seen a deficit. The budget data is not seasonally adjusted, so the November deficit cannot be compared to the October deficit of $284.1 bln.
The key takeaway from the report is the recognition that spending was down by a sizable amount yr/yr, which helped offset the budget impact of a small yr/yr decline in receipts.
Looking ahead, investors will receive the Producer Price Index for November and the preliminary University of Michigan Index of Consumer Sentiment for December on Friday.
Nasdaq Composite +38.3% YTD
Russell 2000 +15.2% YTD
S&P 500 +13.5% YTD
Dow Jones Industrial Average +5.1% YTD
Market Snapshot
Dow 29999.20 -69.55 (-0.23%)
Nasdaq 12405.72 +66.85 (0.54%)
SP 500 3668.11 -4.72 (-0.13%)
10-yr Note +4/32 0.903
NYSE Adv 1646 Dec 1434 Vol 965.8 mln
Nasdaq Adv 2232 Dec 1389 Vol 4.4 bln
Industry Watch
Strong: Energy, Information Technology, Consumer Discretionary
Weak: Utilities, Communication Services, Industrials
Moving the Market
-- Market trades mixed
-- Airbnb (ABNB) more than doubles in IPO
-- Energy stocks outperform
WTI crude futures settle at highest level since early March
10-Dec-20 15:25 ET
Dow -48.78 at 30019.97, Nasdaq +59.91 at 12398.78, S&P -3.82 at 3669.01
[BRIEFING.COM] The S&P 500 is trading lower by 0.1% in a lackluster session for the benchmark index.
One last look at the S&P 500 sector shows energy (+2.9%) still setting the leadership pace with a 3% gain. No other sector is up more than 0.2%, while the industrials (-0.9%), communication services (-0.5%), and real estate (-0.4%) sectors lag with modest gains.
WTI crude futures settled sharply higher by 3.1%, or $1.42, to $46.91/bbl -- its highest price since early March. Futures did settle slightly off session highs, though.
Major indices set new highs, but close lower
09-Dec-20 16:15 ET
Dow -108.82 at 30065.00, Nasdaq -243.82 at 12338.87, S&P -29.77 at 3672.49
https://www.briefing.com/stock-market-update
[BRIEFING.COM] Each of the major indices began Wednesday's session at record highs, but a decline led by the Nasdaq Composite (-1.9%) unfolded throughout the day amid profit-taking pressure. The S&P 500 declined 0.8%, the Dow Jones Industrial Average declined 0.4%, and the Russell 2000 declined 0.8%.
The Nasdaq really started to tumble following the DoorDash (DASH 189.51, +87.51, +85.8%) IPO at around midday. DASH shares opened at $182 per share after pricing its IPO at $102 per share, accentuating the frenzied demand for IPOs and representing a speculative excess in high-growth areas of the market.
In other words, things went so well for DoorDash that it was scapegoated for catalyzing a wave of selling, particularly in growth stocks and in the S&P 500 information technology sector (-1.9%). The communication services (-1.2%) and real estate (-1.0%) sectors also underperformed.
Notably, the cyclical energy (+0.3%), industrials (+0.2%), and materials (+0.1%) sectors closed higher, emblematic of lingering recovery optimism.
Besides the new supply delivered by DoorDash and overstretched market conditions, other negative headwinds included continued stimulus disagreements and big-tech regulatory concerns. The latter stemmed from the FTC and U.S. states officially filing separate lawsuits against Facebook (FB 277.92, -5.48, -1.9%) over its business practices.
As for stimulus, Treasury Secretary Mnuchin offered a new $916 billion stimulus bill, but Democratic Congressional leadership didn't like the fact that it excluded enhanced unemployment benefits and preferred to focus on the $908 billion bipartisan plan instead.
Longer-dated Treasuries declined alongside the major indices, pushing yields higher. The 2-yr yield was flat at 0.15%, and the 10-yr yield increased three basis points to 0.94%. The U.S. Dollar Index increased 0.1% to 91.03. WTI crude futures decreased 0.3%, or $0.14, to $45.50/bbl.
Reviewing Wednesday's economic data:
Job openings increased to 6.652 million in October from 6.436 million in September.
Wholesale inventories increased 1.8% in October (Briefing.com consensus 0.9%) following an unrevised 0.4% increase in September.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Consumer Price Index for November, and the Treasury Budget for November on Thursday.
Nasdaq Composite +37.5% YTD
Russell 2000 +14.0% YTD
S&P 500 +13.7% YTD
Dow Jones Industrial Average +5.4% YTD
Market Snapshot
Dow 30065.00 -108.82 (-0.36%)
Nasdaq 12338.87 -243.82 (-1.94%)
SP 500 3672.49 -29.77 (-0.80%)
10-yr Note -2/32 0.942
NYSE Adv 1546 Dec 1510 Vol 980.0 mln
Nasdaq Adv 1259 Dec 2342 Vol 5.0 bln
Industry Watch
Strong: Energy, Industrials, Materials
Weak: Information Technology, Communication Services, Real Estate
Moving the Market
-- Stock market pulls back from record territory
-- Growth stocks underperform following DoorDash (DASH) IPO
-- Congress still at odds over stimulus bill
Market at fresh session lows
09-Dec-20 15:30 ET
Dow -173.75 at 30000.07, Nasdaq -288.30 at 12294.39, S&P -40.01 at 3662.25
[BRIEFING.COM] The S&P 500 is down 1.1% to trade at fresh session lows.
One last look at the S&P 500 sectors shows red across the board. The information technology sector (-2.3%) leads the retreat with a 2% decline, followed by communication services (-1.5%) and real estate (-1.1%). The industrials sector (-0.1%) is trading just below its flat line.
The communication services sector is under pressure following news that the FTC and U.S. states officially filed lawsuits against Facebook (FB 277.57, -5.84, -2.0%) over its business practices. The market knew this was going to happen at some point, but the negative headline on a down day is hurting sentiment.
WTI crude futures settled lower by 0.3%, or $0.14, to $45.50/bbl. On a related note, weekly crude oil inventories increased by 15.19 mln barrels after decreasing by 679,000 during the previous week.
DoorDash scapegoated
09-Dec-20 14:55 ET
Dow -141.26 at 30032.56, Nasdaq -239.69 at 12343.00, S&P -33.38 at 3668.88
[BRIEFING.COM] The S&P 500 is trading near session lows with a 1.0% decline after starting the day in record territory.
The DoorDash (DASH 176.40, +74.39, +72.9%) IPO appears to have had a catalyzing effect on the broad market by how well it went. The IPO pop has been seen as sign of speculative excess that has warranted profit-taking interest in other segments of the market, especially the high-flying growth stocks.
Looking ahead, Airbnb (ABNB) is scheduled to IPO tomorrow. Unsurprisingly, the company has seen strong demand heading into its big debut and has increased the target range for the IPO.
More vaccine news, new record highs
08-Dec-20 16:20 ET
Dow +104.09 at 30173.82, Nasdaq +62.83 at 12582.69, S&P +10.29 at 3702.26
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.5%), and Russell 2000 (+1.4%) closed at fresh record highs on Tuesday amid more encouraging vaccine news and a hopeful-sounding stimulus update. The Dow Jones Industrial Average (+0.4%) hit an intraday high, but the outperformance of the Russell 2000 deserves more recognition.
The positive vaccine coverage started with Pfizer (PFE 42.56, +1.31, +3.2%) and BioNTech (BNTX 128.11, +2.41, +1.9%), although the S&P 500 was down 0.4% at its low despite the news. Briefly, the UK began inoculating its citizens with the Pfizer-BioNTech vaccine, and the FDA said it saw no safety concerns for that vaccine that would preclude issuance of an emergency use authorization.
Next, peer-reviewed data published in The Lancet Journal indicated that the AstraZeneca (AZN 54.72, +0.46, +0.9%)-Oxford vaccine is safe and effective in preventing symptomatic COVID-19 and that it protects against severe disease and hospitalization. The S&P 500 turned positive shortly after this second headline.
The energy sector reclaimed its recent outperformer status with a 1.6% gain, which was emblematic of a lingering recovery optimism. The influential information technology sector advanced 0.4%, while the real estate sector lagged with a 0.5% decline.
Regarding stimulus, Senate Majority Leader McConnell suggested that the Senate should drop both liability protection and state and local government funding from a stimulus bill since there are so many disagreements on those issues. Mr. McConnell previously advocated for liability protection, but it was uncertain if Democratic leadership would similarly concede on the latter.
Separately, investors were cautioned that Tesla (TSLA 649.88, +8.12, +1.3%) announcing a $5.0 billion common stock "at-the-market" offering program was symptomatic of stretched equity prices, but for a stock blessed by animal spirts, shareholders thought differently. TSLA shares closed higher after being down as much as 3.6% intraday.
Longer-dated Treasuries finished with modest gains despite the vaccine/stimulus developments. The 2-yr yield was flat at 0.14%, and the 10-yr yield decreased two basis points to 0.91%. The U.S. Dollar Index increased 0.2% to 90.96. WTI crude futures declined 0.3%, or $0.13, to $45.64/bbl.
Reviewing Tuesday's economic data:
Productivity in the third quarter increased at a seasonally adjusted annual rate of 4.6% (Briefing.com consensus 5.0%) on today's revision versus the preliminary estimate of 4.9%. Unit labor costs decreased at an annual rate of 6.6% (Briefing.com consensus -8.9%) versus the preliminary estimate of -8.9%.
The key takeaway from the report is that it reflects the strong rebound in the third quarter, as the economy rebounded from the depths of the pandemic-related shutdown.
The NFIB Small Business Optimism Index decreased to 101.4 from 104.0 in October.
Looking ahead, investors will receive the weekly MBA Mortgage Applications Index, the JOLTS - Job Openings report for October, and Wholesale Inventories for October on Wednesday.
Nasdaq Composite +40.2% YTD
Russell 2000 +14.9% YTD
S&P 500 +14.6% YTD
Dow Jones Industrial Average +5.7% YTD
Market Snapshot
Dow 30173.82 +104.09 (0.35%)
Nasdaq 12582.69 +62.83 (0.50%)
SP 500 3702.26 +10.29 (0.28%)
10-yr Note +1/32 0.921
NYSE Adv 1981 Dec 1122 Vol 911.2 mln
Nasdaq Adv 2323 Dec 1308 Vol 4.7 bln
Industry Watch
Strong: Energy, Materials, Health Care, Consumer Staples
Weak: Real Estate, Utilities, Financials, Communication Services
Moving the Market
-- S&P 500, Nasdaq, Russell 2000 close at record highs
-- FDA said it saw no safety concerns for the Pfizer (PFE)-BioNTech (BNTX) vaccine that would preclude issuance of an emergency use authorization
-- Peer-reviewed data indicates AstraZeneca (AZN)-Oxford vaccine is safe and effective
-- Hopeful-sounding stimulus concession from Senate Majority Leader McConnell
WTI crude futures settle slightly lower
08-Dec-20 15:25 ET
Dow +103.78 at 30173.51, Nasdaq +56.89 at 12576.75, S&P +9.94 at 3701.91
[BRIEFING.COM] The S&P 500 is up 0.3% and is trading just above the 3700 level. The Russell 2000 outperforms with a 1.1% gain, emblematic of the lingering recovery optimism.
One last look at the S&P 500 sectors shows energy (+1.3%), consumer staples (+0.7%), materials (+0.5%), and information technology (+0.5%) leading the market higher, while the real estate sector (-0.5%) lags with a 0.5% decline.
WTI crude futures settled lower by 0.3%, or $0.13, to $45.64/bbl.
Nasdaq closes at record high in lackluster session
07-Dec-20 16:15 ET
Dow -148.47 at 30069.73, Nasdaq +55.71 at 12519.86, S&P -7.16 at 3691.97
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.2% on Monday to ease back from record territory, while the Nasdaq Composite (+0.5%) closed at a fresh record high amid relative strength in growth stocks. The Dow Jones Industrial Average (-0.5%) and Russell 2000 (-0.1%) finished in negative territory after setting intraday record highs in the morning.
Generally, the large-cap value/cyclical stocks struggled today after outperforming growth stocks and the S&P 500 since the end of October, as investors paid heed to the recurring headlines of rising coronavirus cases/hospitalizations in the U.S. In addition, stimulus/government funding talks dragged on without a resolution.
The energy sector was hit the hardest with a 2.5% decline, although it remained up 30% this quarter and no other sector declined more than 1.0% today. The information technology sector (+0.3%) provided influential support, while the communication services (+0.6%) and utilities (+0.6%) sectors outperformed.
Not all growth stocks had great performances, but investors appeared to hide out in mega-caps Apple (AAPL 123.75, +1.50, +1.2%), Tesla (TSLA 641.76, +42.72, +7.1%), and Facebook (FB 285.58, +5.88, +2.1%). Apple's gain was partially at the expense of Intel (INTC 50.20, -1.79, -3.4%), which fell 3% after Bloomberg reported on Apple's next-gen Mac chips that could outclass Intel's top-end PC chips.
Palantir Technologies (PLTR 28.94, +5.09, +21.3%), like Tesla, continued to ride a bullish momentum after securing a three-year contract with the FDA. PLTR shares surged 21%.
Separately, Boeing (BA 238.17, +5.46, +2.4%) and Pfizer (PFE 41.25, +0.91, +2.3%) were notable value-oriented stocks that bucked the negative trend in the space. Boeing was upgraded to Buy from Neutral at UBS. Pfizer could have its COVID-19 vaccine approved by the FDA on Thursday.
Longer-dated Treasuries finished on a higher note to bounce back from recent losses and undo some of the recent curve-steepening action. The 2-yr yield was flat at 0.14%, and the 10-yr yield decreased four basis points to 0.93%. The U.S. Dollar Index increased 0.2% to 90.85. WTI crude futures decreased 1.0%, or $0.48, to $45.77/bbl.
Reviewing Monday's economic data:
Consumer credit increased by $7.2 billion in October (Briefing.com consensus $9.0 billion) after contracting by a downwardly revised $15.1 bln (from $16.2 billion) in September.
The key takeaway from the report is that revolving credit decreased for the seventh time over the last eight months dating back to February, which preceded the initial pandemic lockdown period taking hold in the U.S.
Looking ahead, investors will receive revised figures for Q3 Productivity and Unit Labor Costs and the NFIB Small Business Optimism Index for November on Tuesday.
Nasdaq Composite +39.5% YTD
S&P 500 +14.3% YTD
Russell 2000 +13.4% YTD
Dow Jones Industrial Average +5.4% YTD
Market Snapshot
Dow 30069.73 -148.47 (-0.49%)
Nasdaq 12519.86 +55.71 (0.45%)
SP 500 3691.97 -7.16 (-0.19%)
10-yr Note +4/32 0.931
NYSE Adv 1333 Dec 1771 Vol 926.5 mln
Nasdaq Adv 1720 Dec 1883 Vol 4.7 bln
Industry Watch
Strong: Information Technology, Communication Services, Utilities
Weak: Energy, Financials
Moving the Market
-- Nasdaq Composite hits new record high in mixed session
-- Growth stocks and safe-haven assets outperform
-- Selling pressure in energy and financial stocks
Consumer credit increases less than expected in October
07-Dec-20 15:25 ET
Dow -179.32 at 30038.88, Nasdaq +42.79 at 12506.94, S&P -11.58 at 3687.55
[BRIEFING.COM] The S&P 500 is trading lower by 0.3%, while the Nasdaq (+0.3%) is on pace to close at a record high.
Released earlier, consumer credit increased by $7.2 billion in October (Briefing.com consensus $9.0 billion) after contracting by a downwardly revised $15.1 bln (from $16.2 billion) in September.
WTI crude futures settled lower by 1.0%, or $0.48, to $45.77/bbl.
Stock market extends reach into record territory
04-Dec-20 16:10 ET
Dow +248.74 at 30218.20, Nasdaq +87.05 at 12464.15, S&P +32.40 at 3699.13
https://www.briefing.com/stock-market-update
[BRIEFING.COM] Each of the major indices set intraday and closing highs on Friday, as the market remained convinced in the 2021 recovery narrative despite the mixed November employment report. The Russell 2000 rose 2.4%, pulling ahead of the S&P 500 (+0.9%), Dow Jones Industrial Average (+0.8%), and Nasdaq Composite (+0.7%).
Sector gains were paced by the S&P 500 energy sector, which tacked on another 5.4% gain to its rebound effort. The materials (+2.0%), real estate (+1.3%), and industrials (+1.2%) sectors were next in line, while the utilities (-1.0%) and consumer discretionary (-0.1%) sectors closed lower.
The headline jobs data featured a smaller-than-expected 245,000 addition to nonfarm payrolls (Briefing.com consensus of 650,000) and a 6.7% unemployment rate (Briefing.com consensus 6.9%), versus 6.9% in October. Digging deeper, permanent job losers increased by 59,000 to 3.743 million while those out of work for 27 weeks or more accounted for 36.9% of the unemployed in November.
The market was undeterred by the slowdown in hiring and the increase in permanent job losers since the data would presumably force lawmakers to concede their differences in stimulus talks. House Speaker Pelosi said she talked with Senate Majority Leader McConnell about attaching a smaller stimulus plan to the year-end spending bill.
Notably, longer-dated Treasury yields retreated immediately after the release of the employment report in an affirmation of the market's upbeat economic outlook. The 2s10s spread widened by six basis points today to reach a fresh 2020 high of 83 bps.
The 2-yr yield decreased one basis point to 0.14%, while the 10-yr yield increased five basis points to 0.97%. The U.S. Dollar Index increased 0.1% to 90.76. WTI crude futures rose 1.3%, or $0.59, to $46.25/bbl.
In the growth-stock space, semiconductor and software stocks picked up the slack for the missing leadership from the top five mega-caps.
The Philadelphia Semiconductor Index (+2.8%) was aided by an encouraging sales report from the Semiconductor Industry Association, while DocuSign (DOCU 243.22, +12.21, +5.3%) and smaller software companies reported better-than-expected earnings reports.
Reviewing Friday's economic data, which featured the Employment Situation Report for November:
November nonfarm payrolls increased by 245,000 (Briefing.com consensus 650,000). November unemployment rate was 6.7% (Briefing.com consensus 6.9%), versus 6.9% in October. November average hourly earnings increased 0.3% (Briefing.com consensus 0.1%) versus 0.1% in October.
The slowdown in hiring and the increase in permanent job losers are key takeaways from the report for the market, which is apt to infer that Congress will see those trends as a basis for agreeing to more stimulus to pre-empt a benefits cliff on December 31.
The U.S. trade deficit widened to $63.1 billion in October (Briefing.com consensus -$65.2 billion) from an upwardly revised $62.1 billion (from -$63.9 billion) in September. October exports were $4.0 billion more than September exports. October imports were $5.0 billion more than September imports.
The key takeaway from the report is the rise seen in both imports and exports, as that is symptomatic of a pickup in global trade and economic activity.
Factory orders for manufactured goods increased 1.0% m/m in October (Briefing.com consensus 0.8%) following an upwardly revised 1.3% increase (from 1.1%) in September. This is the sixth straight monthly increase in factory orders.
The key takeaway from the report is the affirmation that business spending continued to increase in October, evidenced by a 0.8% increase in new orders for nondefense capital goods excluding aircraft, versus a 1.9% increase in September.
Looking ahead, investors will receive the Consumer Credit report for October on Monday.
Nasdaq Composite +38.9% YTD
S&P 500 +14.5% YTD
Russell 2000 +13.4% YTD
Dow Jones Industrial Average +5.9% YTD
Market Snapshot
Dow 30218.20 +248.74 (0.83%)
Nasdaq 12464.15 +87.05 (0.70%)
SP 500 3699.13 +32.40 (0.88%)
10-yr Note -6/32 0.972
NYSE Adv 2428 Dec 675 Vol 975.2 mln
Nasdaq Adv 2678 Dec 929 Vol 5.0 bln
Industry Watch
Strong: Energy, Materials, Real Estate, Industrials
Weak: Utilities, Consumer Discretionary
Moving the Market
-- Major indices set new highs despite mixed November employment report
-- Energy stocks remained hot
-- Longer-dated Treasury yields rose in curve-steepening trade
Crude futures settle above $46 per barrel
04-Dec-20 15:25 ET
Dow +194.44 at 30163.90, Nasdaq +67.65 at 12444.75, S&P +25.22 at 3691.95
[BRIEFING.COM] The S&P 500 is trading higher by 0.7% and is well on its way to close at a record high, barring another unexpected headline like yesterday.
One last look at the sector performances shows energy (+4.6%), materials (+1.9%), industrials (+1.2%), and real estate (+1.2%) atop the intraday leaderboard, while the utilities (-1.4%) and consumer discretionary (-0.2%) sectors trade lower.
WTI crude futures settled higher by 1.3%, or $0.59, to $46.25/bbl.
Record-setting advance falls short on Pfizer headline
03-Dec-20 16:15 ET
Dow +85.73 at 29969.46, Nasdaq +27.82 at 12377.10, S&P -2.29 at 3666.73
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.1% on Thursday, as its record-setting hopes were interrupted by news that Pfizer (PFE 40.10, -0.70, -1.7%) is aiming to distribute only half of its COVID-19 vaccines it originally planned due to supply chain issues. Prior to the late-session news, the benchmark index was trading at all-time highs with a 0.4% gain.
The Russell 2000 (+0.6%), Dow Jones Industrial Average (+0.3%), and Nasdaq Composite (+0.2%) still closed higher, as investors had broadened their risk exposure outside the S&P 500 throughout the day.
Generally, the Pfizer headline was a good excuse to temper the pervasive bullish sentiment and upwards momentum in the market. Six of the 11 S&P 500 sectors slipped into negative territory on a closing basis, led lower by the utilities (-1.1%) and materials (-0.7%) sectors. The energy (+1.1%) and real estate (+0.7%) sectors outperformed.
For most of the day, investors were relatively pleased with the slate of macro news and the big gains in Boeing (BA 237.20, +13.35, +6.0%), Tesla (TSLA 593.38, +24.46, +4.3%), and many of the software companies following their earnings reports.
Boeing was boosted by news that Ryanair is ordering 75 737 MAX planes, and Tesla was upgraded to Buy from Hold at Goldman Sachs with a Street-high $780 price target. Software companies Snowflake (SNOW 339.89, +47.20, +16.1%), Zscaler (ZS 185.61, +38.82, +26.5%), and CrowdStrike (CRWD 161.19, +19.35, +13.6%) were among the earnings winners.
Positive macro news included Senate Majority Leader McConnell observing that a stimulus compromise is "within reach," weekly initial jobless claims decreasing more than expected to 712,000 (Briefing.com consensus 775,000), and the November ISM Non-Manufacturing Index (55.9%) denoting a sixth straight month of expansionary activity (over 50.0%).
We could nitpick that Senate Minority Leader Schumer (D-NY) didn't believe that Mr. McConnell was in a deal-making mood, jobless claims remained elevated, or that the ISM reading was less than expected, but a bull market tends to look at things positively. As such, despite the Pfizer-induced blip, today was a relatively constructive day.
The 2-yr yield decreased one basis point to 0.15%, and the 10-yr yield decreased three basis points to 0.92%. The U.S. Dollar Index fell 0.5% to 90.70 -- its lowest level since April 2018. WTI crude futures gained 0.8%, or $0.38, to $45.66/bbl after OPEC+ agreed to a smaller-than-expected 500K bpd production increase, starting in January.
Reviewing Thursday's economic data:
Initial claims for the week ending November 28 decreased by 75,000 to 712,000 (Briefing.com consensus 775,000) -- the lowest since the pandemic started -- while continuing claims for the week ending November 21 decreased by 569,000 to 5.520 million.
The key takeaway is that there were still 712,000 initial jobless claims and 5.520 million continuing claims. In the same weeks a year ago, the totals stood at 206,000 and 1.697 million, respectively.
The ISM Non-Manufacturing Index slipped to 55.9% in November (Briefing.com consensus 56.3%) from 56.6% in October. The dividing line between expansion and contraction is 50.0%. The November reading reflects a slightly slower pace of expansion than the prior month but the sixth straight reading above 50.0%.
The key takeaway from the report is that it didn't reflect any significant weakness in the services sector in November despite the election uncertainty, the surge in coronavirus cases, and restrictions implemented to help contain the spread of the coronavirus.
The Markit Services PMI for November was revised higher to 58.4 from 57.7 in the preliminary reading.
Looking ahead, investors will receive the Employment Situation Report for November, the Trade Balance for October, and Factory Orders for October on Friday.
Nasdaq Composite +37.9% YTD
S&P 500 +13.5% YTD
Russell 2000 +10.8% YTD
Dow Jones Industrial Average +5.0% YTD
Market Snapshot
Dow 29969.46 +85.73 (0.29%)
Nasdaq 12377.10 +27.82 (0.23%)
SP 500 3666.73 -2.29 (-0.06%)
10-yr Note +2/32 0.910
NYSE Adv 2015 Dec 1061 Vol 980.0 mln
Nasdaq Adv 2150 Dec 1388 Vol 5.1 bln
Industry Watch
Strong: Energy, Real Estate
Weak: Utilities, Materials
Moving the Market
-- S&P 500 hits all-time high but falls short of record close
-- Pfizer (PFE) aiming to ship only half of its COVID-19 vaccines it originally planned due to supply chain issues -- The Wall Street Journal
-- Positive stimulus chatter
-- Big gains in many software companies following earnings reports
WTI crude futures settle higher
03-Dec-20 15:25 ET
Dow +219.05 at 30102.78, Nasdaq +71.73 at 12421.01, S&P +12.76 at 3681.78
[BRIEFING.COM] The buyers have returned to send the S&P 500 back to session highs with a 0.4% gain. Any positive finish would be good for a record close.
One last look at the S&P 500 sectors shows energy (+2.2%), real estate (+1.1%), and industrials (+1.0%) in the lead, while the utilities (-0.8%), materials (-0.2%), and communication services (-0.1%) sectors underperform in negative territory.
WTI crude futures settled today's session higher by 0.8%, or $0.38, to $45.66/bbl. On a related note, OPEC+ agreed to a smaller-than-expected 500K bpd production increase, starting in January.
Bulls retain control in another record-setting session
01-Dec-20 16:20 ET
Dow +185.28 at 29823.86, Nasdaq +156.37 at 12355.02, S&P +40.82 at 3662.47
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+1.1%) and Nasdaq Composite (+1.3%) closed at fresh record highs on Tuesday, as the market continued to feed off the recent bullish momentum and recovery optimism. The Dow Jones Industrial Average (+0.6%) and Russell 2000 (+0.9%) followed behind.
Briefly, the 2021 recovery narrative was supported by renewed stimulus talks, Pfizer (PFE 39.41, +1.10, +2.9%) seeking approval for its COVID-19 vaccine in Europe, UnitedHealth (UNH 341.19, +4.85, +1.4%) and Micron (MU 67.08, +2.99, +4.7%) issuing upside guidance, and by some relatively positive economic data overseas.
The gains were relatively broad with the communication services (+2.0%) and financials (+1.6%) sectors leading the advance. The industrials sector (-0.2%) was the lone holdout amid an observation that November manufacturing activity in the U.S. slowed down slightly more than expected and the corresponding ISM Employment Index (48.4%) slid into contraction territory.
The market ran into a speed bump late in the afternoon on news that Senate Majority Leader McConnell disapproved the $908 billion bipartisan stimulus package proposed by several lawmakers earlier in the day. Mr. McConnell prefers to combine $429 bln in unused Fed funding toward a year-end spending bill, according to CNBC.
The stimulus situation harked on Fed Chair Powell's congressional warning that the outlook remains "extraordinarily uncertain." Nevertheless, it's almost a certainty that more fiscal relief is coming in one form or another. Mr. Powell testified on the CARES Act today along with Treasury Secretary Mnuchin.
Separately, shares of Zoom Video (ZM 406.31, -72.05, -15.1%) succumbed to profit-taking interest following its better-than-expected earnings report and upbeat guidance. Moderna (MRNA 141.01, -11.73, -7.7%) faced similar selling pressure after starting the day with a 16% gain.
In the U.S. Treasury market, the 2s10s yield curve spread widened to a 2020 high of 76 bps. The 2-yr yield increased three basis points to 0.17%, while the 10-yr yield rose nine basis points to 0.93%. The U.S. Dollar Index fell 0.8% to 91.16 amid relative strength in the euro, which was indicative of expectations for a European recovery.
Reviewing Tuesday's economic data:
The ISM Manufacturing Index slipped to 57.5% in November (Briefing.com consensus 58.0%) from 59.3% in October. The dividing line between expansion and contraction is 50.0%, so the November reading reflects an acceleration in manufacturing activity, albeit at a slower pace than the prior month.
The key takeaway from the report is the understanding that the Employment Index fell back into contraction mode, sliding to 48.4% from 53.2%, although the continued strength in new orders and the backlog of orders should mitigate some of the concerns surrounding the employment contraction in November.
Total construction spending increased 1.3% m/m in October (Briefing.com consensus +0.7%) on the heels of a downwardly revised 0.5% decline (from +0.3%) in September. Total private construction spending rose 1.4% m/m and total public construction spending increased 1.0%.
The key takeaway from the report is the ongoing strength in residential construction spending, which is an offshoot of low mortgage rates and the pandemic driving strong demand for new homes in suburban areas.
The Markit Manufacturing PMI for November was revised lower to 56.7% (Briefing.com consensus 58.0%) from 59.3% in the preliminary reading.
Looking ahead, investors will receive the ADP Employment Change Report for November and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +37.7% YTD
S&P 500 +13.4% YTD
Russell 2000 +10.1% YTD
Dow Jones Industrial Average +4.5% YTD
Market Snapshot
Dow 29823.86 +185.28 (0.63%)
Nasdaq 12355.02 +156.37 (1.28%)
SP 500 3662.47 +40.82 (1.13%)
10-yr Note -30/32 0.924
NYSE Adv 2167 Dec 920 Vol 1.1 bln
Nasdaq Adv 2064 Dec 1516 Vol 6.4 bln
Industry Watch
Strong: Financials, Communication Services, Information Technology
Weak: Industrials
Moving the Market
-- S&P 500 and Nasdaq close at fresh record highs
-- Bullish momentum, recovery optimism
-- 2s-10s yield curve spread widens to 2020 high of 76 basis points
WTI crude futures settle on lower note
01-Dec-20 15:30 ET
Dow +203.34 at 29841.92, Nasdaq +143.46 at 12342.11, S&P +40.80 at 3662.45
[BRIEFING.COM] The S&P 500 has hit a speed bump and is currently up 1.1% to trade off prior highs.
One last look at the S&P 500 sectors shows communication services (+1.9%) and financials (+1.7%) still in the lead, while the industrials sector (+0.2%) underperforms with a slim gain. The latter is being pressured by data showing a slight slowdown in the pace of manufacturing activity for November.
WTI crude futures settled lower by 1.8%, or $0.81, to $44.56/bbl.
Soft ending to an incredibly strong month
30-Nov-20 16:15 ET
Dow -271.73 at 29638.58, Nasdaq -7.11 at 12198.65, S&P -16.72 at 3621.65
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.5% on Monday to end a spectacular month on a soft note. An intraday recovery in technology stocks, however, helped lift the benchmark index and Nasdaq Composite (-0.1%) off session lows. The Dow Jones Industrial Average (-0.9%) and Russell 2000 (-1.9%) underperformed.
The market struggled despite Moderna (MRNA 152.74, +25.71, +20.2%) providing another encouraging vaccine update and Apple (AAPL 119.05, +2.46, +2.1%) receiving an analyst upgrade to Buy from Hold at Loop Capital. The information technology (+0.7%) and health care (+0.3%) sector did benefit, but nine of the 11 S&P 500 sectors closed lower.
The energy sector dropped 5.4%, largely due to profit-taking interest and some angst that OPEC+ might not agree to extend production cuts for three months starting Jan. 1. Interestingly, oil prices ($45.37, -0.08, -0.2%) were less affected by these concerns.
As for the vaccine news, Moderna said its vaccine was 94.1% effective in preventing COVID-19 and 100% effective in protecting against serious outcomes. The company said it would apply with the FDA today for emergency use authorization.
Note, today was the fourth Monday in a row that the market received a positive vaccine update, but the every update since the first one has had a diminishing effect on the major indices, suggesting a lot of the news was already priced in. To be fair though, market conditions were also ripe for month-end profit taking.
In other corporate news, S&P Global (SPGI 351.78, +10.21, +3.0%) agreed to merge with IHS Markit (INFO 99.46, +6.88, +7.4%) in an all-stock transaction that values IHS at $44 billion, and Nikola (NKLA 20.41, -7.52, -26.9%) shares tanked 27% after General Motors (GM 43.84, -1.22, -2.7%) announced a revised partnership that excludes an equity stake.
Separately, reports indicated that the Trump administration is planning on adding China's largest semiconductor foundry and one of its largest oil companies to a defense blacklist. The Philadelphia Semiconductor Index rose 1.2% despite the news, as the market held back typical retaliation concerns.
U.S. Treasuries finished little changed in a muted session. The 2-yr yield declined one basis point to 0.14%, and the 10-yr yield was flat at 0.84%. The U.S. Dollar Index increased 0.2% to 92.00.
Reviewing Monday's economic data:
The Chicago PMI for November decreased to 58.2% (Briefing.com consensus 58.1%) from 61.1% in October.
Pending home sales decreased 1.1% in October (Briefing.com consensus +1.0%) following a revised 2.0% decline in September (-2.2%).
Looking ahead, investors will receive the ISM Manufacturing Index for November, Construction Spending for October, and auto and truck sales for November on Tuesday.
Nasdaq Composite +36.0% YTD
S&P 500 +12.1% YTD
Russell 2000 +9.1% YTD
Dow Jones Industrial Average +3.9% YTD
Market Snapshot
Dow 29638.58 -271.73 (-0.91%)
Nasdaq 12198.65 -7.11 (-0.06%)
SP 500 3621.65 -16.72 (-0.46%)
10-yr Note 0/32 0.845
NYSE Adv 953 Dec 2116 Vol 1.9 bln
Nasdaq Adv 1325 Dec 2258 Vol 7.5 bln
Industry Watch
Strong: Information Technology, Health Care
Weak: Energy, Financials, Utilities
Moving the Market
-- Profit-taking interest in the energy sector and other cyclical parts of market
-- Moderna (MRNA) provided another encouraging vaccine update
-- Relative strength in the technology and health care sectors
WTI crude futures settle slightly lower
30-Nov-20 15:30 ET
Dow -361.61 at 29548.70, Nasdaq -17.40 at 12188.36, S&P -22.53 at 3615.84
[BRIEFING.COM] The S&P 500 is down 0.6% while the Nasdaq (-0.1%) has slipped into the red.
One last look at the S&P 500 sectors shows information technology (+0.6%) building on its intraday rebound after being down 1.1% earlier today. The energy sector is down 4.3% amid profit-taking interest (it's still up 28% this month) and angst that OPEC+ might not extend production cuts by another three months starting Jan. 1.
The latter didn't affect oil prices too much today. WTI crude futures settled lower by 0.2%, or $0.08, to $45.37/bbl.
27-Nov-20 13:15 ET
Dow +37.90 at 29910.31, Nasdaq +111.44 at 12205.76, S&P +8.70 at 3638.37
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+0.2%) and Nasdaq Composite (+0.9%) closed at fresh record highs on Friday in a shortened trading session. The Russell 2000 increased 0.6%, and the Dow Jones Industrial Average increased 0.1%.
A wide range of growth stocks outperformed, including Tesla (TSLA 585.76, +11.76, +2.1%), Moderna (MRNA 127.03, +17.85, +16.4%), Etsy (ETSY 160.55, +15.46, +10.7%), and many within the Philadelphia Semiconductor Index (+1.2%). Value and cyclical stocks, meanwhile, continued to take a breather from their incredible monthly performances.
From a sector perspective, the S&P 500 health care (+1.0%), communication services (+0.6%), and information technology (+0.5%) sectors did the heavy lifting, while the energy (-1.3%) and utilities (-1.0%) sectors declined the most with 1% losses.
The price action in the S&P 500 generally lacked conviction given the reduced market participation, although trading volume at the Nasdaq was three times higher today than the same time last year. In addition, the market never got the risk-on signal from the Treasury market, which traded higher throughout the morning.
Ahead of the bond market close at 2:00 p.m. ET, the 2-yr yield was down two basis points to 0.14%, and the 10-yr yield was down three basis points to 0.85%. The U.S. Dollar Index was down 0.2% to 91.82. WTI crude futures were down 0.7% to $45.39/bbl.
Retail stocks also had a decent outing after Adobe Analytics said Thanksgiving Day spending rose nearly 22% yr/yr to a record $5.1 billion. Adobe expects Black Friday and Cyber Monday sales to be great for retailers, too, as more consumers shop online this year. The SPDR S&P Retail ETF (XRT 61.21, +0.52, +0.9%) increased 1% to extend its weekly gain to 6.3%.
Investors did not receive any economic data on Friday. Looking ahead, investors will receive the Chicago PMI for November and Pending Home Sales for October on Monday.
Nasdaq Composite +36.0% YTD
S&P 500 +12.6% YTD
Russell 2000 +11.2% YTD
Dow Jones Industrial Average +4.8% YTD
Market Snapshot
Dow 29910.31 +37.90 (0.13%)
Nasdaq 12205.76 +111.44 (0.92%)
SP 500 3638.37 +8.70 (0.24%)
10-yr Note +25/32 0.848
NYSE Adv 1718 Dec 1362 Vol 530.0 mln
Nasdaq Adv 2294 Dec 1265 Vol 3.3 bln
Industry Watch
Strong: Health Care, Communication Services, Information Technology
Weak: Energy, Utilities, Financials
Moving the Market
-- Growth stocks lift Nasdaq and S&P 500 to record closing highs
-- Shortened trading session
-- Strong Thanksgiving Day sales
Dow hits 30k in record-setting session
24-Nov-20 16:15 ET
Dow +454.97 at 30046.18, Nasdaq +156.15 at 12036.70, S&P +57.84 at 3635.43
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The major indices rose more than 1.0% on Tuesday in record-setting advances. The Dow Jones Industrial Average (+1.5%) topped the 30,000 level for the first time ever, the S&P 500 (+1.6%) closed at a record high, the Russell 2000 (+1.9%) set fresh all-time highs, and the Nasdaq Composite gained 1.3%.
Value, cyclical, and small-cap stocks retained their leadership roles in this part of the bull market, and the bullish bias carried over to most parts of the market. The S&P 500 energy (+5.2%), financials (+3.5%), and materials (+2.5%) sectors outperformed, while the real estate sector (-0.03%) slipped into the red.
Aside from the obvious momentum and fear of missing out, stocks were supported by incrementally good news that fueled risk sentiment and maintained the market's 2021 recovery optimism.
Specifically, the General Services Administration said it will release funds to help the Biden administration transition into office after President Trump condoned the action, Wells Fargo (WFC 28.60, +2.30, +8.8%) was double upgraded to Outperform from Underperform at Raymond James, and numerous retailers reported better-than-expected earnings reports.
Dollar Tree (DLTR 111.35, +33.53, +6.4%) shares rose 6% following its earnings results, but truthfully, most of the earnings reactions weren't that great since the news may have already been priced in. Shares of Best Buy (BBY 113.54, -8.50, -7.0%) fell 7% despite beating top and bottom-line estimates.
There were also semblances of greed in the market. For example, shares of Tesla (TSLA 555.38, +33.53, +6.4%) surged 6% on no specific news to bring the company's market capitalization to over $500 billion. Hedging interest remained relatively suppressed with the CBOE Volatility Index (-1.02, -4.5%) closing at 21.64.
Longer-dated Treasuries faced selling pressure amid the heightened level of bullishness in stocks, sending yields higher in a curve-steepening trade. The 2-yr yield decreased one basis point to 0.16%, while the 10-yr yield increased three basis points to 0.88%. The U.S. Dollar Index decreased 0.4% to 92.16. WTI crude rose 4.2% to $44.89/bbl.
Reviewing Tuesday's economic data:
The Conference Board's Consumer Confidence Index dropped to 96.1 in November (Briefing.com consensus 96.5) from an upwardly revised 101.4 (from 100.9) in October.
The key takeaway from the report is that consumers going into 2021 don't foresee the economy and the labor market gaining strength, as attitudes about business conditions for the next six months have worsened.
The September S&P Case-Shiller Home Price Index increased 6.6% (Briefing.com consensus 5.5%) following a revised 5.3% increase in the prior month (from +5.2%).
The September FHFA Housing Price Index increased 1.7% following a 1.5% increase in the prior month.
Looking ahead, investors will receive a massive amount of data on Wednesday, most notably the weekly Initial and Continuing Claims report, New Home Sales for October, Personal Income and Spending for October, and the FOMC Minutes from the November meeting.
Nasdaq Composite +34.2% YTD
S&P 500 +12.5% YTD
Russell 2000 +11.1% YTD
Dow Jones Industrial Average +5.3% YTD
Market Snapshot
Dow 30046.18 +454.97 (1.54%)
Nasdaq 12036.70 +156.15 (1.31%)
SP 500 3635.43 +57.84 (1.62%)
10-yr Note -2/32 0.884
NYSE Adv 2341 Dec 738 Vol 1.2 bln
Nasdaq Adv 2396 Dec 1174 Vol 6.2 bln
Industry Watch
Strong: Energy, Financials, Industrials, Materials
Weak: Health Care, Real Estate
Moving the Market
-- Cyclical sectors continue to set the performance pace
-- Dow hits 30k, Russell 2000 at fresh all-time highs
-- Momentum, fear of missing out, greed, prevailing optimism about 2021
WTI crude futures settle close to $45 per barrel
24-Nov-20 15:30 ET
Dow +449.31 at 30040.52, Nasdaq +154.46 at 12035.01, S&P +57.40 at 3634.99
[BRIEFING.COM] The S&P 500 is up 1.7%, and the Russell 2000 is up 2.0%.
One last look at the S&P 500 sectors shows energy (+4.9%) still way in the lead with a 5% gain, followed by sizable gains in the financials (+3.3%) and materials (+2.6%) sectors. The health care (+0.4%) and real estate (+0.4%) sectors lag with 0.4% gains.
WTI crude futures settled higher by 4.2%, or $1.80, to $44.89/bbl.
Stocks close higher in recovery and momentum trade
23-Nov-20 16:10 ET
Dow +327.79 at 29591.21, Nasdaq +25.66 at 11880.55, S&P +20.05 at 3577.59
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 gained 0.6% on Monday in a recovery trade fueled by momentum and another round of encouraging COVID-19 vaccine/treatment news. The Russell 2000 rose 1.9% to new record highs, and the Dow Jones Industrial Average rose 1.1%. The Nasdaq Composite underperformed with a 0.2% gain.
Briefly, AstraZeneca (AZN 54.70, -0.60, -1.1%) and the University of Oxford said their vaccine has an efficacy rate of up to 90%, and Regeneron Pharma (REGN 523.61, +4.87, +0.9%) said it received emergency use authorization from the FDA for its antibody cocktail. While AZN and REGN shares traded mixed, the value, cyclical, and small-cap stocks took the news in stride.
The S&P 500 energy sector surged another 7.1% to extend its monthly rebound rally to 32.0%, followed by respectable intraday performances from the financials (+1.9%), industrials (+1.6%), and materials (+0.9%) sectors. Advancing issues outpaced declining issues by a 3:1 margin at the NYSE and a 2:1 margin at the Nasdaq.
On the downside, the health care (-0.3%), real estate (-0.3%), information technology (-0.03%), and communication services (-0.02%) sectors held back the benchmark index, which briefly turned negative in the morning. Stay-at-home stocks also underperformed.
Other positive factors today included encouraging preliminary Markit PMI and Services reports for November, the NRF expecting holiday sales to grow between 3.6-5.2%, versus 2019; and TSA data showing the highest number of airline passengers through TSA checkpoints since mid-March on Sunday.
Separately, the market received a temporary boost in the afternoon after The Wall Street Journal reported that Joe Biden will nominate former Fed Chair Janet Yellen as Treasury Secretary. Ms. Yellen has been vocal about the need for more fiscal stimulus, and there are expectations that the Senate would approve her nomination.
U.S. Treasuries finished on a lower note, as the positive news flow aided risk sentiment and helped money flow out of defensive assets. The 2-yr yield increased two basis points to 0.17%, and the 10-yr yield increased three basis points to 0.86%. The U.S. Dollar Index increased 0.2% to 92.54. WTI crude futures 2.2%, or $0.92, to $43.09/bbl.
Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for November, the FHFA Housing Price Index for November, and the S&P Case-Shiller Home Price Index for September on Tuesday.
Nasdaq Composite +32.4% YTD
S&P 500 +10.7% YTD
Russell 2000 +9.0% YTD
Dow Jones Industrial Average +3.7% YTD
Market Snapshot
Dow 29591.21 +327.79 (1.12%)
Nasdaq 11880.55 +25.66 (0.22%)
SP 500 3577.59 +20.05 (0.56%)
10-yr Note -2/32 0.850
NYSE Adv 2363 Dec 723 Vol 986.8 mln
Nasdaq Adv 2346 Dec 1210 Vol 5.2 bln
Industry Watch
Strong: Energy, Industrials, Financials, Materials
Weak: Health Care, Real Estate, Information Technology, Communication Services
Moving the Market
-- Another round of positive news on the COVID-19 vaccine/treatment front; momentum trading
-- Small-cap, value, and cyclical stocks outperformed, while mega-caps and stay-at-home stocks underperformed
-- Joe Biden will reportedly nominate former Fed Chair Janet Yellen as Treasury Secretary
Large-cap indices dragged lower by tech sector
20-Nov-20 16:20 ET
Dow -219.75 at 29263.42, Nasdaq -49.74 at 11854.89, S&P -24.33 at 3557.54
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 closed at session lows with a 0.7% decline on Friday amid late-day selling in the information technology sector (-1.1%) and the mega-caps. The Nasdaq Composite declined 0.4%, and Dow Jones Industrial Average declined 0.8%. The Russell 2000 (+0.1%) eked out a marginal gain.
Interestingly, advancing issues outnumbered declining issues at the Nasdaq, even as ten of the 11 S&P 500 sectors closed in negative territory. Only the utilities sector (+0.1%) closed higher.
Some attributed the negative index and sector performances to news that Treasury Secretary Mnuchin declined to extend five emergency lending programs funded by the CARES Act beyond the Dec. 31 expiration date, JPMorgan forecasting negative GDP in the first quarter of 2021, and California instituting a curfew to curb the spread of the coronavirus.
To be fair, Mr. Mnuchin said there are still other available facilities to support market activities and recommended that Congress re-appropriate the unused $455 billion for immediate targeted fiscal measures. In addition, JPMorgan expects the economy to rebound in the second or third quarter of next year.
The news may have overshadowed another encouraging vaccine update. Specifically, Pfizer (PFE 36.70, +0.51, +1.4%) and BioNTech (BNTX 104.07, +9.14, +9.6%) filed an application with the FDA to receive emergency use authorization for their COVID-19 vaccine. PFE and BNTX shares closed higher.
Separately, shares of Workday (WDAY 209.40, -21.40, -9.3%) and Intuit (INTU 347.69, -13.75, -3.8%) underperformed despite reporting better-than-expected earnings results and issuing upbeat guidance. Williams-Sonoma (WSM 107.71, +6.67, +6.6%) was a notable earnings winner.
U.S. Treasuries finished on a higher note, more so on the longer-end of the curve. The 2-yr yield decreased two basis points to 0.15%, and the 10-yr yield decreased three basis points to 0.83%. The U.S. Dollar Index increased 0.1% to 92.39. WTI crude rose 1.0%, or $0.42, to $42.17/bbl.
Investors did not receive any notable economic on Friday. Looking ahead, investors will receive the flash November Markit Manufacturing and Services PMIs on Monday.
Nasdaq Composite +32.1% YTD
S&P 500 +10.1% YTD
Russell 2000 +7.0% YTD
Dow Jones Industrial Average +2.5% YTD
Market Snapshot
Dow 29263.42 -219.75 (-0.75%)
Nasdaq 11854.89 -49.74 (-0.42%)
SP 500 3557.54 -24.33 (-0.68%)
10-yr Note 0/32 0.831
NYSE Adv 1420 Dec 1602 Vol 951.5 mln
Nasdaq Adv 1850 Dec 1684 Vol 5.3 bln
Industry Watch
Strong: Utilities, Health Care
Weak: Information Technology, Industrials, Financials
Moving the Market
-- Late-day selling in the technology sector and mega-caps
-- Treasury Secretary Mnuchin declines to extend several lending programs
-- Another positive vaccine update, but muted reaction
WTI crude futures settle higher while equities slip
20-Nov-20 15:25 ET
Dow -200.47 at 29282.70, Nasdaq -20.08 at 11884.55, S&P -17.56 at 3564.31
[BRIEFING.COM] The S&P 500 is trading near session lows with a 0.5% decline. The recent selling hasn't been attributed to any particular catalyst.
One last look at the S&P 500 sectors shows ten sectors trading lower between 0.2% and 1.0% (industrials). The utilities sector (unch) trades a hair above its flat line.
WTI crude futures settled higher by 1.0%, or $0.42, to $42.17/bbl.
Major indices close higher in quiet advance
19-Nov-20 16:10 ET
Dow +44.81 at 29483.17, Nasdaq +103.11 at 11904.63, S&P +14.08 at 3581.87
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 increased 0.4% on Thursday and overcame a sluggish start as buyers quietly eased their way back into the market. The Nasdaq Composite (+0.9%) and Russell 2000 (+0.8%) outperformed while the Dow Jones Industrial Average increased just 0.2%.
For most of the day, the S&P 500 floated around its flat line, while the Nasdaq narrowed the monthly performance gap between it and the benchmark index amid strength in technology stocks. The S&P 500 information technology sector rose 0.8%, but the energy sector (+1.5%) advanced the most as the gains started to broaden out in the afternoon.
The market appeared to get a small bump after Senate Minority Leader Schumer reportedly said Senate Majority Leader McConnell agreed to restart stimulus talks. Not the most surprising news since Mr. McConnell previously said he wanted a smaller deal before year-end, but good news, nonetheless.
The utilities (-1.0%) and health care (-0.1%) sectors, which have underperformed this week, failed to participate in today's advance.
In other positive developments, Phase 2 vaccine trial data from the AstraZeneca (AZN 54.03, +0.04, +0.1%)/Oxford collaboration showed encouraging immune responses in older patients, and October existing home sales increased at a faster-than-expected, seasonally adjusted annual rate of 6.85 million (Briefing.com consensus 6.49 million). Market reactions were muted, but these were good for sentiment reasons.
The Philadelphia Semiconductor Index (+1.6%) was another pocket of strength today. NVIDIA (NVDA 537.61, +0.46, +0.1%) beat top and bottom-line estimates and issued upside Q4 revenue guidance; Cree (CREE 81.00, +8.39, +11.6%) was upgraded to Overweight from Neutral at JP Morgan with a $90 price target.
Longer-dated Treasuries increased again, pushing yields even lower from last week's highs. The 2-yr yield was flat at 0.17%, and the 10-yr yield decreased three basis points to 0.85%. The U.S. Dollar Index decreased 0.1% to 92.27. WTI crude futures decreased 0.1% to $41.75/bbl.
Reviewing Thursday's economic data:
Initial claims for the week ending November 14 rose by 31,000 to 742,000 (Briefing.com consensus 720,000). Continuing claims for the week ending November 7 decreased by 429,000 to 6.372 million.
The key takeaway from the report is that it covers the period in which the survey for the November employment report is conducted. The jump in initial claims, which are still exceedingly high, will contribute to expectations for a slowdown in job growth in November.
Existing home sales increased 4.3% m/m in October to a seasonally adjusted annual rate of 6.85 million (Briefing.com consensus 6.49 million). October marked the fifth consecutive month of positive sales gains.
The key takeaway from the report is that it reflects robust demand for existing homes. That is constraining supply even further, which is going to be a pressure point that feeds higher prices, shuts out an increasing number of first-time buyers, and bolsters the prospects for new home sales.
The Conference Board's Leading Economic Index increased 0.7% m/m in October, as expected, marking the sixth straight month of positive readings. The index for September was unrevised at +0.7%.
The key takeaway from the report is that strength has become more widespread among the leading indicators.
The Philadelphia Fed Index decreased to 26.3 in November (Briefing.com consensus 25.0) from 32.3 in October.
Investors will not receive any notable economic data on Friday.
Nasdaq Composite +32.7% YTD
S&P 500 +10.9% YTD
Russell 2000 +6.9% YTD
Dow Jones Industrial Average +3.3% YTD
Market Snapshot
Dow 29483.17 +44.81 (0.15%)
Nasdaq 11904.63 +103.11 (0.87%)
SP 500 3581.87 +14.08 (0.39%)
10-yr Note +2/32 0.848
NYSE Adv 1940 Dec 1080 Vol 884.5 mln
Nasdaq Adv 2243 Dec 1205 Vol 5.2 bln
Industry Watch
Strong: Information Technology, Energy
Weak: Utilities, Health Care
Moving the Market
-- Quiet advance for the major indices, energy and tech stocks outperformed
-- Stimulus talks reportedly resumed
-- Encouraging vaccine news, housing data, earnings reports
WTI crude futures settle little changed
19-Nov-20 15:25 ET
Dow +5.03 at 29443.39, Nasdaq +91.16 at 11892.68, S&P +10.15 at 3578.08
[BRIEFING.COM] The S&P 500 continues to trade higher by 0.3%, and the Russell 2000 is up 0.4%.
One last look at the S&P 500 sectors shows energy (+1.2%), information technology (+0.7%), and consumer discretionary (+0.4%) leading the advance, while the utilities (-1.1%) and health care (-0.2%) sectors sit this one out.
WTI crude futures settled lower by 0.1%, or $0.05, to $41.75/bbl.
Stocks close lower to temper recent bullishness
18-Nov-20 16:15 ET
Dow -344.93 at 29438.36, Nasdaq -97.74 at 11801.52, S&P -41.74 at 3567.93
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 fell 1.2% on Wednesday for a second straight decline that tempered the recent bullishness in the market. The Nasdaq Composite declined 0.8%, the Dow Jones Industrial Average declined 1.2%, and the Russell 2000 declined 1.3% after setting an intraday record high early in the session.
For most of the day, the market struggled to gain any traction despite a host of positive news related to a vaccine, economic data, and corporate earnings. Presumably, this was because the market was pricing in a lot of the good news in its record-setting rally this month and needed to consolidate those gains.
Selling appeared to pick up late in the afternoon after New York Governor Cuomo announced that New York City public schools will temporarily close due to surging coronavirus cases. Mr. Cuomo previously warned this was a legitimate possibility, but the decision served as a convenient excuse to curb risk sentiment today.
All 11 S&P 500 sectors finished in negative territory, led lower by the energy (-2.9%), utilities (-1.9%), health care (-1.8%), and real estate (-1.7%) sectors with losses over 1.5%. The industrials sector (-0.5%) was the relative outperformer today.
The industrials sector and other cyclical groups appeared to draw early support from Pfizer (PFE 36.31, +0.27, +0.8%) and BioNTech (BNTX 90.44, +3.51, +4.0%) indicating that their COVID-19 vaccine is 95% effective after concluding their Phase 3 study. The companies will soon file an FDA application for emergency use authorization.
Separately, October housing starts increased a faster-than-expected seasonally adjusted annual rate of 1.53 million units (Briefing.com consensus 1.445 mln), Target (TGT 166.85, +3.81, +2.3%) reported strong quarterly results, and Tesla (TSLA 486.64, +45.03, +10.2%) was upgraded to Overweight from Equal-Weight at Morgan Stanley.
Tesla and Target reacted positively to their related news, but investors took profits in Boeing (BA 203.30, -6.75, -3.2%) and Lowe's (LOW 146.72, -13.14, -8.2%) despite some good news. The FAA approved the 737 MAX safe to fly again, and Lowe's beat top and bottom-line estimates but its Q4 EPS guidance may have disappointed.
U.S. Treasuries finished near their flat lines in a lackluster session for bonds. The 2-yr yield and 10-yr yield increased one basis point each to 0.17% and 0.88%, respectively. The U.S. Dollar Index finished flat at 92.40. WTI crude futures gained 0.9%, or $0.37, to $41.80/bbl following a smaller-than-expected weekly inventory build.
Reviewing Wednesday's economic data:
Housing starts in October increased 4.9% m/m (and 14.2% yr/yr) to a seasonally adjusted annual rate of 1.53 million units (Briefing.com consensus 1.445 mln), hitting their highest pace since February when they stood at 1.567 million. Building permits were flat at 1.545 million (Briefing.com consensus 1.55 mln), but remained ahead of the 1.536 million pace registered in January.
The key takeaway from the report is that there was continued strength in single-family starts, which jumped 6.4% m/m to a seasonally adjusted annual rate of 1.179 million. That is 14.5% higher than the pace for single-family starts seen in February and reflects the strong demand for new homes that has been driven by the pandemic, low mortgage rates, and the tight supply of existing homes for sale.
The weekly MBA Mortgage Applications Index decreased 0.3% following a 0.5% decline in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report, Existing Home Sales for October, the Philadelphia Fed Index for November, and the Conference Board's Leading Economic Index for October on Thursday.
Nasdaq Composite +31.5% YTD
S&P 500 +10.4% YTD
Russell 2000 +6.0% YTD
Dow Jones Industrial Average +3.2% YTD
Market Snapshot
Dow 29438.36 -344.93 (-1.16%)
Nasdaq 11801.52 -97.74 (-0.82%)
SP 500 3567.93 -41.74 (-1.16%)
10-yr Note -23/32 0.877
NYSE Adv 1130 Dec 1888 Vol 989.8 mln
Nasdaq Adv 1349 Dec 2153 Vol 4.6 bln
Industry Watch
Strong: Industrials
Weak: Energy, Health Care, Utilities, Real Estate
Moving the Market
-- Recent bullishness is tempered with 1% losses in major indices
-- NYC announced temporary school closures due to the coronavirus
-- Market unable to gain traction despite good news regarding a vaccine, corporate earnings, and economic data
WTI crude futures settle in the green
18-Nov-20 15:25 ET
Dow -87.63 at 29695.66, Nasdaq +16.87 at 11916.13, S&P -8.22 at 3601.45
[BRIEFING.COM] The S&P 500 is down 0.3% and has traded within yesterday's trading range. The benchmark index is on pace to close lower for the second straight day in a healthy consolidation trend.
One last look at the S&P 500 sectors shows energy (-1.2%), utilities (-1.1%), and health care (-0.9%) down the most, while the industrials (+0.4%), consumer discretionary (+0.1%), and materials (+0.1%) sectors cling onto small gains.
WTI crude futures settled higher by 0.9%, or $0.37, to $41.80/bbl following a smaller-than-expected build in weekly crude inventories.
Cool-down day
17-Nov-20 16:15 ET
Dow -167.09 at 29783.29, Nasdaq -24.79 at 11899.26, S&P -17.38 at 3609.67
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.5% on Tuesday in a cool-down session following its recent record-setting run. The Nasdaq Composite (-0.2%) and Dow Jones Industrial Average (-0.6%) also closed modestly lower, while the Russell 2000 (+0.4%) closed at a fresh record high.
The market struggled out of the gate after October Retail Sales were softer than expected with total retail sales up 0.3% m/m (Briefing.com consensus +0.5%). A pullback in October discretionary spending may have contributed to the negative reactions to better-than-expected Q3 earnings reports from Walmart (WMT 149.37, -3.07, -2.0%) and Home Depot (HD 272.47, -7.10, -2.5%)
For the most part, losses were kept in check. The S&P 500 utilities sector strayed from the pack with a 2.0% decline, but no other sector fell more than 0.8%. The energy (+0.5%) and real estate (+0.1%) sectors eked out gains.
Coincidentally, today's low in the S&P 500 (-1.1%) came right before the NAHB Housing Market Index for November was released at 10:00 a.m. ET, which showed homebuilding sentiment hit a new all-time high. Similarly, sentiment among fund managers was indicated to be extremely bullish, according to a survey done by Bank of America.
The heightened level of bullishness among fund managers perhaps served as a contrarian signal for investors to remain cautious, especially given the market's recent gains. Prior to today, the S&P 500 was up 10.9% over the last 11 trading sessions.
Separately, shares of Tesla (TSLA 441.61, +33.53, +8.2%) rose 8% on news that it'll join the S&P 500 on Dec. 21. Walgreens Boots Alliance (WBA 39.86, -4.25, -9.6%) and other drug store stocks sold off following the launch of Amazon's (AMZN 3135.66, +4.60, +0.2%) online pharmacy business.
U.S. Treasuries ended the session with small gains, pushing yields lower. The 2-yr yield decreased two basis points to 0.16%, and the 10-yr yield decreased three basis points to 0.87%. The U.S. Dollar Index decreased 0.2% to 92.44. WTI crude futures increased 0.2% to $41.43/bbl.
Reviewing Tuesday's big batch of data, which featured Retail Sales for October:
October Retail Sales were softer than expected with total retail sales up 0.3% m/m (Briefing.com consensus +0.5%) and sales, excluding autos, up 0.2% (Briefing.com consensus +0.6%). September retail sales growth was revised down to 1.6% from 1.9%. Excluding autos, it was revised to 1.2% from 1.5%.
The key takeaway from the report is that it showed a pullback in spending across several discretionary categories like clothing (-4.2% m/m), general merchandise stores (-1.1%), furniture and home furnishing stores (-0.4% m/m), and food services and drinking places (-0.1% m/m).
Industrial production increased 1.1% m/m in October (Briefing.com consensus +0.9%) on top of an upwardly revised 0.4% decline (from -0.6%) in September. The capacity utilization rate hit 72.8% (Briefing.com consensus 72.3%) following an upwardly revised 72.0% (from 71.5%) in September.
The key takeaway from the report is that industrial production has recovered most of the 16.5% decline seen from February to April, although output is still 5.6% below its pre-pandemic February level.
The NAHB Housing Market Index increased to a new all-time high of 90 in November (Briefing.com consensus 85) following the previous all-time high of 85 in October.
Business inventories increased 0.7% in September (Briefing.com consensus +0.5%) following an unrevised 0.3% increase in August.
Import prices decreased 0.1% in October; and prices excluding oil increased 0.1%. Export prices increased 0.2% in October; and prices excluding agriculture were unchanged.
Looking ahead, investors will receive Housing Starts and Building Permits for October and the weekly MBA Mortgage Applications Index on Wednesday.
Nasdaq Composite +32.6% YTD
S&P 500 +11.7% YTD
Russell 2000 +7.4% YTD
Dow Jones Industrial Average +4.4% YTD
Market Snapshot
Dow 29783.29 -167.09 (-0.56%)
Nasdaq 11899.26 -24.79 (-0.21%)
SP 500 3609.67 -17.38 (-0.48%)
10-yr Note +25/32 0.871
NYSE Adv 1709 Dec 1298 Vol 954.6 mln
Nasdaq Adv 1790 Dec 1679 Vol 4.1 bln
Industry Watch
Strong: Real Estate, Energy
Weak: Utilities, Health Care, Information Technology
Moving the Market
-- Cool-down session following recent record run, although the small-cap Russell 2000 closed at a fresh record high
-- Softer than expected retail sales for October, but homebuilding sentiment hit all-time high in November
-- Amazon (AMZN) announced online pharmacy business; Tesla (TSLA) will be added to the S&P 500 on Dec. 21
WTI crude settles slightly higher while stocks edge lower
17-Nov-20 15:25 ET
Dow -205.72 at 29744.66, Nasdaq -33.83 at 11890.22, S&P -20.83 at 3606.22
[BRIEFING.COM] The market's rebound attempt is unraveling with the S&P 500 now trading lower by 0.5% after nearly returning to its flat line earlier. The retracement was not caused by any specific catalyst, suggesting the market remains in a cooling-off period.
One last look at the S&P 500 sectors shows utilities (-1.5%) as the weakest link, followed by health care (-0.9%) and information technology (-0.6%). The real estate sector (+0.2%) remains in positive territory.
WTI crude futures settled higher by 0.2%, or $0.09, to $41.43/bbl.
Russell 2000 keeping faith in the domestic economic outlook
17-Nov-20 14:55 ET
Dow -105.43 at 29844.95, Nasdaq +16.04 at 11940.09, S&P -6.04 at 3621.01
[BRIEFING.COM] The S&P 500 is currently trading lower by 0.2%, but the more interesting development is the resiliency of the Russell 2000, which is up 0.5% and on pace to close at a fresh record high.
The small-cap index is now up 16.6% in November, or in less than 12 trading session, as investors continue to bet that the domestic economy will rebound in 2021 due to a vaccine. This expectation implies that the small-caps, which are generally more U.S.-centric, stand to outperform since they have meaningfully underperformed for a while now.
Looking ahead, Lowe's (LOW 160.51, -1.38, -0.9%), Target (TGT 164.19, -0.33, -0.2%), and TJX (TJX 61.27, +0.19, +0.3%) will report earnings tomorrow morning.
New closing highs following Moderna vaccine data
16-Nov-20 16:15 ET
Dow +470.63 at 29950.38, Nasdaq +94.84 at 11924.05, S&P +41.76 at 3627.05
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+1.2%), Dow Jones Industrial Average (+1.6%), and Russell 2000 (+2.4%) closed at fresh record highs on Monday after Moderna (MRNA 97.95, +8.56, +9.6%) said its COVID-19 vaccine was 94.5% effective. The Nasdaq Composite was the relative underperformer with a 0.8% gain.
Ten of the 11 S&P 500 sectors contributed to the advance, led once again by the cyclical energy (+6.5%), industrials (+2.5%), financials (+2.3%), and materials (+2.0%) sectors. The health care sector (-0.2%) bucked the positive trend amid influential weakness in Pfizer (PFE 37.36, -1.26, -3.3%), which announced comparably effective vaccine data last week.
The prospects of having more than one vaccine in 2021 for mainstream use strengthened the market's view that next year will feature improved economic and earnings growth. That's why the small-caps and economically-sensitive sectors, which had noticeably underperformed prior to November, extended their recent outperformance today.
Many of the growth stocks underperformed but held up relatively well despite the cyclical/value leadership. The semiconductor stocks, for example, drew support from reports that Taiwan Semi (TSM 99.27, +6.05, +6.5%) is expanding production capacity to meet high demand from chip companies. The Philadelphia Semiconductor Index gained 2.5%.
Today also featured some smaller M&A deals that were conducive for risk sentiment. Home Depot (HD 279.57, +2.40, +0.9%) agreed to acquire HD Supply (HDS 55.77, +10.96, +24.5%) for $56.00 per share, or about $8 billion, in cash. PNC (PNC 126.29, +3.51, +2.9%) agreed to acquire BBVA USA Bancshares for $11.6 billion in cash.
U.S. Treasuries had more reserved reactions to the positive vaccine news from Moderna, with yields closing slightly higher. The 2-yr yield increased one basis point to 0.18%, and the 10-yr yield increased one basis point to 0.90%. The U.S. Dollar Index decreased 0.2% to 92.59. WTI crude futures rose 3.0%, or $1.22, to $41.34/bbl.
Monday's economic data was limited to the Empire State Manufacturing Survey, which decreased to 6.3 in November (Briefing.com consensus 14.0) from 10.5 in October.
Looking ahead to Tuesday, investors will receive Retail Sales for October, Industrial Production and Capacity Utilization for October, the NAHB Housing Market Index for November, Import and Export Prices for October, Import and Export Prices for October, Business Inventories for September, and Net Long-term TIC Flows for September.
Nasdaq Composite +32.9% YTD
S&P 500 +12.3% YTD
Russell 2000 +7.0% YTD
Dow Jones Industrial Average +5.0% YTD
Market Snapshot
Dow 29950.38 +470.63 (1.60%)
Nasdaq 11924.05 +94.84 (0.80%)
SP 500 3627.05 +41.76 (1.16%)
10-yr Note -1/32 0.907
NYSE Adv 2502 Dec 543 Vol 1.1 bln
Nasdaq Adv 2462 Dec 1001 Vol 4.1 bln
Industry Watch
Strong: Energy, Financials, Materials, Industrials
Weak: Health Care, Real Estate
Moving the Market
-- Moderna (MRNA) said its COVID-19 vaccine is 94.5% effective, according to interim Phase 3 data
-- Cyclical, value, and small-cap stocks outperformed; health care sector bucked the positive trend
-- S&P 500, Dow, and Russell 2000 closed at record highs
WTI crude futures gain 3%
16-Nov-20 15:25 ET
Dow +376.35 at 29856.10, Nasdaq +64.09 at 11893.30, S&P +31.40 at 3616.69
[BRIEFING.COM] The S&P 500 is up 0.9% amid gains across ten of its 11 sectors.
One last look at the S&P 500 sectors shows energy (+6.1%), industrials (+2.1%), and financials (+1.7%) still outperforming the broader market, while the health care sector (-0.3%) continues to struggle below its flat line.
WTI crude futures settled higher by 3.0%, or $1.22, to $41.34/bbl.
New closing highs for the S&P 500 and Russell 2000
13-Nov-20 16:20 ET
Dow +399.64 at 29479.75, Nasdaq +119.70 at 11829.21, S&P +48.14 at 3585.29
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 (+1.4%) and Russell 2000 (+2.1%) closed at new record highs on Friday, as cyclical and small-cap stocks claimed the new leadership roles in this part of the bull market. The Dow Jones Industrial Average gained 1.4%, and the Nasdaq Composite gained 1.0%.
The gains were broad and steady with all 11 S&P 500 sectors opening and closing in positive territory. Sector gains ranged from 0.9% (utilities) to 3.8% (energy), and all 30 Dow components also finished higher. The industrials (+2.2%) and real estate (+2.3%) sectors were other standouts.
The market was aided by positive reactions to better-than-expected earnings reports and/or guidance from companies including Cisco (CSCO 41.40, +3.73, +7.1%), Walt Disney (DIS 138.36, +2.84, +2.1%), Applied Materials (AMAT 72.81, +3.01, +4.3%), and DraftKings (DKNG 42.84, +1.59, +3.9%).
Unlike yesterday, investors were more sanguine about the record number of U.S. coronavirus cases despite the lack of progress towards a stimulus deal and renewed restrictions from cities and states. Presumably, they remained assured that the rough road ahead will smooth itself out in 2021 because of a widespread vaccine and eventual stimulus.
This economic optimism was mainly manifested in equities since oil prices ($40.12/bbl, -0.96, -2.3%) settled lower by 2%, gold futures ($1886.80/ozt, +11.30, +0.7%) settled higher, and U.S. Treasuries traded relatively unchanged all session.
The 2-yr yield finished flat at 0.17%, and the 10-yr yield increased one basis point to 0.89%. The U.S. Dollar Index decreased 0.3% to 92.73. The CBOE Volatility Index dropped 8.9% to 23.10, as the bullish price action in equities continued to reduce hedging interest against a downturn in stocks.
Reviewing Friday's economic data:
The Producer Price Index (PPI) report for October was mixed, featuring a higher than expected 0.3% m/m increase in the index for final demand (Briefing.com consensus +0.2%) and a lower than expected 0.1% m/m increase in the index for final demand excluding food and energy (Briefing.com consensus +0.2%).
The muted response to the PPI report is owed in part to the understanding that yesterday's Consumer Price Index for October was on the soft side. Another key takeaway is that this Producer Price Index, like yesterday's Consumer Price Index, was an interest-rate friendly report as it showed tame year-over-year increases of 0.5% and 1.1%, respectively, for final demand and final demand excluding food and energy.
The preliminary University of Michigan Index of Consumer Sentiment for November checked in at 77.0 (Briefing.com consensus 79.0), down from the final reading of 81.8 for October and 93.2 for the same period a year ago.
The key takeaway from the report is that the decline in sentiment stemmed from concerns about the presidential election and the resurgence in covid infections and deaths.
Looking ahead, investors will receive the Empire State Manufacturing Survey for November on Monday.
Nasdaq Composite +31.8% YTD
S&P 500 +11.0% YTD
Russell 2000 +4.5% YTD
Dow Jones Industrial Average +3.3% YTD
Market Snapshot
Dow 29479.75 +399.64 (1.37%)
Nasdaq 11829.21 +119.70 (1.02%)
SP 500 3585.29 +48.14 (1.36%)
10-yr Note -1/32 0.893
NYSE Adv 2500 Dec 519 Vol 887.0 mln
Nasdaq Adv 2570 Dec 897 Vol 3.6 bln
Industry Watch
Strong: Energy, Industrials, Real Estate, Materials, Financials
Weak: Utilities, Information Technology
Moving the Market
-- S&P 500 and Russell 2000 closed at record highs
-- Cyclical and small-cap stocks led the broad-based advance
-- Prevailing optimism about a vaccine and economic growth in 2021
-- Technology stocks underperformed, except Cisco (CSCO) following its earnings report
WTI crude futures settle lower by 2%
13-Nov-20 15:30 ET
Dow +364.00 at 29444.11, Nasdaq +105.06 at 11814.57, S&P +42.95 at 3580.10
[BRIEFING.COM] The S&P 500 continues to trade higher by 1.2% and is trying to set a new closing record.
One last look at the S&P 500 sectors shows green across the board. The energy sector (+3.7%) is in a league of its own today with a 3.7% gain. Following suit are the real estate (+2.0%), industrials (+1.9%), and financials (+1.5%) sectors.
WTI crude futures settled lower by 2.3%, or $0.96, to $40.12/bbl.
Market closes lower in rare down day this month
12-Nov-20 16:15 ET
Dow -317.46 at 29080.11, Nasdaq -76.84 at 11709.51, S&P -35.65 at 3537.15
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 1.0% on Thursday, as recovery concerns contributed to losses across all 11 sectors and defensive-positioning in Treasuries. The Dow Jones Industrial Average fell 1.1%, and the Russell 2000 fell 1.6%. The Nasdaq Composite was the relative outperformer with a 0.7% decline.
The day started with slight losses amid profit-taking activity in cyclical sectors like energy (-3.4%), materials (-2.2%), and financials (-1.7%) following news that the U.S. recorded new highs for daily coronavirus cases and hospitalizations. Selling picked up more broadly throughout the day on stimulus hurdles and commentary from Fed Chair Powell.
Specifically, Senate Majority Leader McConnell reiterated he was unwilling to pass a larger stimulus package and preferred a smaller targeted bill. This was in response to Senate Minority Leader Schumer (D-NY) rejecting the Senate Republicans' stimulus bill and saying the $2.2 trillion HEROES Act should be the starting point.
Unless lawmakers make concessions, this persistent disagreement suggests that the market might have to wait until at least Jan. 5 for a better indication on the size of a stimulus deal. That's because of the two election runoffs in Georgia that will determine if Republicans retain their majority in the Senate.
What's more, Fed Chair Powell warned that the economy will be challenging for the next few months amid uncertainty surrounding the distribution of a vaccine and the negative effects the coronavirus is having on households and businesses. On a related note, the City of Chicago issued a stay at home "advisory" for 30 days.
All in all, today's news flow wasn't constructive for a market some would describe as overextended in terms of pricing in a recovery. Prior to today, the S&P 500 was up 9.3% this month. Defensive undertones were manifested in the relative outperformances of the consumer staples sector (-0.2%) and the mega-cap/growth/stay-at-home stocks.
The retreat in longer-dated Treasury yields was a supportive consideration for the highly-valued growth stocks. Increased demand sent the 10-yr yield down eight basis points to 0.89%, while the 2-yr yield decreased one basis point to 0.17%. The U.S. Dollar Index decreased 0.1% to 92.95. WTI crude futures decreased 0.8% to $41.49/bbl.
Reviewing Thursday's economic data:
The Consumer Price Index was unchanged month-over-month in October, as was the core Consumer Price Index, which excludes food and energy. The Briefing.com consensus estimate called for both to be up 0.2%.
The key takeaway from the report is that the trend in consumer inflation moved away from the Fed's aim of lifting the average inflation rate, making it an interest-rate friendly report.
Initial jobless claims decreased by 48,000 for the week ending November 7 to 709,000 (Briefing.com consensus 740,000) while continuing claims for the week ending October 31 decreased by 436,000 to 6.786 million.
While the downward trend in initial claims is nice to see, the key takeaway is that market participants have reason to think, with the announcement of new curfews and restrictions on business activity in many cities and states due to rising coronavirus infections, that there could be a pickup in jobless claims in coming weeks.
The Treasury Budget showed a $284 bln deficit in October, which begins the government's fiscal 2021.
The key takeaway from the report is that it shows the very high cost of dealing with the fallout from the pandemic, as the deficit this October was more than twice the deficit seen in October 2019.
Looking ahead, investors will receive the Producer Price Index for October and the preliminary Univ. of Michigan Index of Consumer Sentiment for November on Friday.
Nasdaq Composite +30.5% YTD
S&P 500 +9.5% YTD
Russell 2000 +2.4% YTD
Dow Jones Industrial Average +1.9% YTD
Market Snapshot
Dow 29080.11 -317.46 (-1.08%)
Nasdaq 11709.51 -76.84 (-0.65%)
SP 500 3537.15 -35.65 (-1.00%)
10-yr Note +10/32 0.879
NYSE Adv 741 Dec 2251 Vol 1.0 bln
Nasdaq Adv 1105 Dec 2324 Vol 3.8 bln
Industry Watch
Strong: Consumer Staples, Communication Services
Weak: Energy, Financials, Utilities, Industrials, Materials
Moving the Market
-- Nasdaq is the relative outperformer amid gains in mega-cap/stay-at-home/growth stocks
-- Cyclical stocks continue to succumb to profit taking
-- Renewed stimulus hurdles
-- Another record day for coronavirus cases/hospitalizations in U.S.
WTI crude futures settle slightly lower
12-Nov-20 15:25 ET
Dow -402.91 at 28994.66, Nasdaq -90.48 at 11695.87, S&P -44.57 at 3528.23
[BRIEFING.COM] The S&P 500 continues to trade lower by 1.2% but remains higher by 0.6% for the week.
One last look at the S&P 500 sectors shows red across the board. The energy (-3.5%), materials (-2.5%), financials (-2.1%), and utilities (-2.1%) sectors are down more than 2.0%, while the consumer staples sector is down the least with a 0.5% decline.
WTI crude futures settled lower by 0.8%, or $0.32, to $41.49/bbl.
S&P 500 and Nasdaq find strength outside the cyclicals
11-Nov-20 16:15 ET
Dow -23.29 at 29397.57, Nasdaq +232.57 at 11786.35, S&P +27.13 at 3572.80
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 gained 0.8% on Wednesday, guided by renewed leadership in the mega-cap/growth stocks at the expense of the cyclical stocks that had outperformed recently. The Nasdaq Composite, powered by its mega-cap components, rose 2.1%, while the Dow Jones Industrial Average (-0.1%) and Russell 2000 (-0.01%) closed fractionally lower.
The market's outlook in having improved economic and earnings growth in 2021 remained intact, but the current circumstances appeared to temper enthusiasm amid an absence of positive catalysts. Namely, the record number of daily coronavirus cases/hospitalizations in the U.S. and the sizable monthly gains in the cyclical sectors despite this.
In turn, the materials (-1.4%), industrials (-0.9%), energy (-0.8%), and financials (-0.5%) sectors succumbed to minor profit-taking interest. Fortunately, the market was able to withstand the profit taking in cyclical stocks since cash appeared to flow back into the influential technology stocks and other defensive-oriented sectors.
Specifically, the information technology (+2.4%) and consumer discretionary (+1.5%) sectors meaningfully outperformed the broader market, followed by respectable gains in the consumer staples (+0.9%) and real estate (+0.8%) sectors.
The S&P 500 had a good shot at closing at a new high today, briefly surpassing its Sept. 2 closing high (3580.84), but the inability to stay above the prior closing high was a technical factor that worked against trading sentiment.
Separately, Goldman Sachs remained bullish on equities, forecasting the S&P 500 to hit 4300 by the end of 2021. The call was based on expectations that a COVID-19 vaccine would reopen the economy and a divided government would provide stability and no increase in taxes.
The U.S. Treasury market was closed for Veterans Day, leaving the 10-yr yield at 0.98% following yesterday's settlement price. The U.S. Dollar Index increased 0.3% to 92.99. WTI crude futures increased 0.3%, or $0.12, to $41.49/bbl.
Wednesday's economic data was limited to the weekly MBA Mortgage Applications Index, which decreased 0.5% following a 3.8% increase in the prior week. Looking ahead, investors will receive the Consumer Price Index for October, the weekly Initial and Continuing Claims report, and the Treasury Budget for October on Thursday.
Nasdaq Composite +31.4% YTD
S&P 500 +3.9% YTD
Dow Jones Industrial Average +3.0% YTD
Russell 2000 +4.1% YTD
Market Snapshot
Dow 29397.57 -23.29 (-0.08%)
Nasdaq 11786.35 +232.57 (2.01%)
SP 500 3572.80 +27.13 (0.77%)
10-yr Note +2/32 0.979
NYSE Adv 1526 Dec 1474 Vol 925.4 mln
Nasdaq Adv 1917 Dec 1498 Vol 3.7 bln
Industry Watch
Strong: Information Technology, Consumer Discretionary, Consumer Staples
Weak: Energy, Industrials, Financials, Materials
Moving the Market
-- S&P 500 and Nasdaq find strength outside the cyclicals stocks, namely the mega-cap/growth stocks
-- Lingering coronavirus concerns and profit taking in cyclical sectors
-- Goldman Sachs bullish on equities, forecasts 4300 in the S&P 500 by the end of 2021
Resistance at prior closing high
11-Nov-20 15:30 ET
Dow -102.89 at 29317.97, Nasdaq +199.31 at 11753.09, S&P +17.78 at 3563.45
[BRIEFING.COM] The S&P 500 continues to trade modestly higher by 0.4%. Note, the S&P 500 briefly topped its closing record high of 3580.84 earlier today before retracing its advance.
One last look at the S&P 500 sectors shows mixed results. The heavily-weighted information technology (+2.2%) and consumer discretionary (+1.1%) sectors continue to support the benchmark index, but losses in the materials (-1.9%), energy (-1.5%), industrials (-1.2%), and financials (-1.0%) sectors are limiting their impact.
WTI crude futures settled higher by 0.3%, or $0.12, to $41.49/bbl.
Rotational trade leaves major indices mixed
10-Nov-20 16:10 ET
Dow +262.95 at 29420.86, Nasdaq -159.93 at 11553.78, S&P -4.97 at 3545.67
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 declined 0.1% on Tuesday, as another rotation out of growth stocks and into value stocks contributed to a lackluster performance in the benchmark index. The Nasdaq Composite fell 1.4%, while the Dow Jones Industrial Average (+0.9%) and Russell 2000 (+1.9%) posted solid gains in catch-up trades.
The broad market looked more like the Dow and Russell 2000 today, as advancing issues outpaced declining issues by comfortable margins at the NYSE and Nasdaq. The market remained guided by expectations that the economy and corporate earnings will improve in 2021 due to the medical progress being made to neutralize the coronavirus.
As such, investors felt inclined to increase exposure to economically-sensitive companies and other value-oriented stocks within the energy (+2.5%), consumer staples (+2.0%), industrials (+1.8%), materials (+1.1%), and financials (+0.7%) sectors.
Conversely, many of the mega-cap stocks relinquished their leadership roles for the second straight day. Aside from the Nasdaq, these losses were manifested in the lagging positions of the information technology (-1.9%), consumer discretionary (-1.1%), and communication services (-0.3%) sectors.
Eli Lilly (LLY 146.56, +4.23, +3.0%) provided investors another reason to feel better about the coronavirus after it received emergency use authorization for its antibody treatment. Separately, Boeing (BA 188.69, +9.33, +5.2%) was one of the larger value stocks that outperformed amid news that it could receive FAA approval for the 737 MAX by Nov. 18.
On the earnings front, D.R. Horton (DHI 70.88, +5.92, +9.1%) exceeded quarterly expectations and issued upbeat FY21 revenue guidance. Beyond Meat (BYND 125.01, -25.49, -16.9%) provided disappointing Q3 earnings results, sending shares down 17%.
U.S. Treasuries finished near their flat lines in a quiet session, leaving longer-dated yields at recent highs. The 2-yr yield was flat at 0.18%, and the 10-yr yield was flat at 0.96%. The U.S. Dollar Index increased 0.1% to 92.81. WTI crude futures rose 2.6%, or $1.06, to $41.37/bbl.
Reviewing Tuesday's economic data:
The NFIB Small Business Optimism Index for October was unchanged at 104.0.
September job openings increased to 6.436 mln from a revised 6.352 mln in August (from 6.493 mln).
Looking ahead, investors will receive the weekly MBA mortgage Applications Index on Wednesday.
Nasdaq Composite +28.8% YTD
S&P 500 +9.7% YTD
Dow Jones Industrial Average +3.1% YTD
Russell 2000 +4.1% YTD
Market Snapshot
Dow 29420.86 +262.95 (0.90%)
Nasdaq 11553.78 -159.93 (-1.37%)
SP 500 3545.67 -4.97 (-0.14%)
10-yr Note -23/32 0.949
NYSE Adv 1995 Dec 1011 Vol 1.2 bln
Nasdaq Adv 2077 Dec 1369 Vol 4.6 bln
Industry Watch
Strong: Energy, Materials, Industrials, Consumer Staples, Utilities
Weak: Information Technology, Consumer Discretionary, Communication Services
Moving the Market
-- Rotational trade left major indices mixed
-- Value outperformed growth
-- Expectations economy and corporate earnings will improve in 2021
WTI crude settles above $41 per barrel
10-Nov-20 15:30 ET
Dow +281.19 at 29439.10, Nasdaq -150.98 at 11562.73, S&P -2.04 at 3548.60
[BRIEFING.COM] The S&P 500 is trading lower by just 0.1% and continues to look up to the Dow (+1.0%) and Russell 2000 (+1.9%).
One last look at the sector performances shows consumer staples (+2.1%) and industrials (+2.1%) up more than 2.0%, followed by energy (+1.8%) and utilities (+1.5%). The information technology (-1.9%), consumer discretionary (-1.1%), and communication services (-1.3%) sectors underperform in the red.
WTI crude futures settled higher by 2.6%, or $1.06, to $41.37/bbl.
New records set on Pfizer/BioNTech vaccine news
09-Nov-20 16:20 ET
Dow +834.57 at 29157.91, Nasdaq -181.45 at 11713.71, S&P +41.06 at 3550.64
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 advanced as much as 3.9% on Monday after Pfizer (PFE 39.20, +2.80, +7.7%) and BioNTech (BNTX 104.80, +12.80, +13.9%) announced that their collaborative COVID-19 vaccine was more than 90% effective in patients without evidence of prior infection. Investors took profits, though, leaving the benchmark index up 1.2% for the session.
Investors also rotated out of growth stocks and into value/cyclical/small-cap stocks, which benefited the Dow Jones Industrial Average (+3.0%) and Russell 2000 (+3.7%) at the expense of the Nasdaq Composite (-1.5%). Each index set new intraday highs shortly after the open, but gradually retraced gains throughout the day and into the close.
Pfizer and BioNTech plan to request FDA emergency use authorization for their two-dose vaccine later this month, providing hope that the economy can return to pre-pandemic levels in 2021 and re-instill a sense of normalcy. Distressed cyclical sectors were the biggest beneficiaries of this hopeful thinking.
The energy (+14.2%) and financials (+8.2%) sectors finished comfortably atop the leaderboard, aided by noticeably higher oil prices ($40.31, +3.17, +8.5%) and curve-steepening activity caused by selling in longer-dated Treasuries. The consumer discretionary (-1.6%), information technology (-0.7%), consumer staples (-0.5%), and communication services (-0.3%) sectors closed lower.
The 2-yr yield increased two basis points to 0.18%, while the 10-yr yield increased 11 basis points to 0.96%. The U.S. Dollar Index advanced 0.6% to 92.82.
In other important news, Joe Biden was projected the winner of the U.S. presidential election, although President Trump did not concede and said he would file legal challenges. Note, media reports indicated that Mr. Trump would unlikely succeed in overturning the election results.
It's worth mentioning that at one point today, the S&P 500 was up as much as 11.5% in less than six sessions. Presumably, that left it primed for profit taking amid an understanding that the market still has to get through the new wave of coronavirus and uncertainty surrounding another stimulus package.
Separately, McDonald's (MCD 213.22, -3.34, -1.5%) beat EPS estimates and said it will test a plant-based burger in several markets. Biogen (BIIB 236.26, -92.64, -28.2%) shares plunged 28% after the FDA's Advisory Committee rebuked the company's Alzheimer's drug. V.F. Corp (VFC 77.81, +7.80, +11.1%) agreed to acquire Supreme for $2.1 billion.
Investors did not receive any economic data on Monday. Looking ahead, investors will receive the JOLTS - Job Openings report on Tuesday.
Nasdaq Composite +30.6% YTD
S&P 500 +9.9% YTD
Dow Jones Industrial Average +2.2% YTD
Russell 2000 +2.2% YTD
Market Snapshot
Dow 29157.91 +834.57 (2.95%)
Nasdaq 11713.71 -181.45 (-1.53%)
SP 500 3550.64 +41.06 (1.17%)
10-yr Note -11/32 0.929
NYSE Adv 2381 Dec 674 Vol 1.7 bln
Nasdaq Adv 2269 Dec 1142 Vol 5.8 bln
Industry Watch
Strong: Energy, Financials, Industrials, Real Estate, Materials
Weak: Consumer Discretionary, Information Technology, Consumer Staples, Communication Services
Moving the Market
-- Record highs after Pfizer (PFE) and BioNTech (BTNX) announced their COVID-19 vaccine candidate is more than 90% effective
-- Profit-taking leaves major indices well off session highs
-- Joe Biden projected the winner of the presidential election
-- Cyclical stocks and oil prices rallied; growth stocks underperformed; Treasury yields rose
WTI crude futures rally 8.5% on growth optimism
09-Nov-20 15:25 ET
Dow +1202.30 at 29525.64, Nasdaq -21.75 at 11873.41, S&P +86.90 at 3596.48
[BRIEFING.COM] The S&P 500 continues to trade near its lower levels of the day with a 2.4% gain. Recall, it was up 3.9% in the opening minutes of trading.
One last look at the sector performances shows energy (+15.7%) and financials (+9.5%) still way in the lead, followed by industrials (+4.7%) and real estate (+4.2%). The consumer discretionary sector is down 0.3%.
WTI crude futures settled sharply higher by 8.5%, or $3.17, to $40.31/bbl.
Election week remains bullish for stocks
05-Nov-20 16:15 ET
Dow +542.52 at 28390.12, Nasdaq +300.15 at 11890.86, S&P +67.01 at 3510.59
https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 gained 2.0% on Thursday in a continuation of the market's rebound rally this election week. The Nasdaq Composite (+2.6%) and Russell 2000 (+2.8%) outpaced the benchmark index by a comfortable margin while the Dow Jones Industrial Average (+2.0%) finished in-line.
The gains were more broad-based this time around, with value stocks rising alongside growth stocks after a strong open. Each of the 11 S&P 500 sectors started in positive territory, but only the energy sector (-0.04%) finished lower.
The information technology sector rose 3.1%, boosted by its semiconductor components following Qualcomm's (QCOM 145.41, +16.44, +12.8%) strong earnings report and upbeat guidance. The Philadelphia Semiconductor Index climbed 4.4%. The materials sector (+4.1%) was the best-performing sector, though.
Presumably, the market remained pleased by the prospect of a divided Congress, meaning it would be difficult to pass new legislation like higher taxes. Regarding the presidential election, there was still no projected winner, but former Vice President Biden led President Trump 253-214 in the delegate count, according to The New York Times.
In addition, the bullish price action likely exacerbated a fear of missing out on further gains, particularly among investors who sold the market last week. Today's advance increased the S&P 500's weekly gain to 7.4% after falling 5.6% last week.
Separately, there were no surprises in the FOMC policy statement or Fed Chair Powell's press conference. The fed funds rate was left unchanged as widely expected. Mr. Powell said the current pace of asset purchases remained appropriate for the current situation but added that the voting committee discussed options if more accommodation is needed.
Treasury yields were subdued all session following yesterday's rally in longer-dated tenors, which was another supporting factor for growth stocks. The 2-yr yield was unchanged at 0.15%, and the 10-yr yield increased one basis point to 0.78%.
The U.S. Dollar Index fell 0.9% to 92.58, which aided gold futures ($1946.90, +51.90, +2.7%) but not crude futures ($38.75, -0.41, -1.1%).
Reviewing Thursday's economic data, which featured the weekly Initial and Continuing Claims report:
Initial jobless claims decreased by 7,000 for the week ending October 31 to 751,000 (Briefing.com consensus 735,000). Continuing claims for the week ending October 24 decreased by 538,000 to 7.285 million.
The key takeaway from the report is that initial jobless claims continue to run at very high levels that connote ongoing, and difficult, challenges for the labor market's recovery path.
Productivity in the third quarter increased at a seasonally adjusted annual rate of 4.9% (Briefing.com consensus 4.0%) on top of an upwardly revised 10.6% increase (from 10.1%) in the second quarter. Unit labor costs decreased 8.9% (Briefing.com consensus -9.6%) following a downwardly revised 8.5% increase (from 9.0%) in the second quarter.
The key takeaway from the report is that it reflects the strong rebound in the third quarter, as the economy rebounded from the depths of the pandemic-related shutdown.
Looking ahead, investors will receive the Employment Situation Report for October, Consumer Credit for September, and Wholesale Inventories for September on Friday.
Nasdaq Composite +32.5% YTD
S&P 500 +8.7% YTD
Dow Jones Industrial Average -0.5% YTD
Russell 2000 -0.5% YTD
Market Snapshot
Dow 28390.12 +542.52 (1.95%)
Nasdaq 11890.86 +300.15 (2.59%)
SP 500 3510.59 +67.01 (1.95%)
10-yr Note 0/32 0.774
NYSE Adv 2418 Dec 593 Vol 927.8 mln
Nasdaq Adv 2618 Dec 795 Vol 3.8 bln
Industry Watch
Strong: Materials, Information Technology, Industrials, Financials
Weak: Energy, Real Estate, Health Care
Moving the Market
-- Stocks bolstered weekly gains in mostly broad-based advance
-- Lingering optimism about possibility of divided Congress
-- FOMC kept rates unchanged as expected; pace of asset purchases unchanged
-- Fear of missing out on further gains
WTI crude settles lower despite weaker dollar
05-Nov-20 15:30 ET
Dow +564.29 at 28411.89, Nasdaq +310.29 at 11901.00, S&P +74.56 at 3518.14
[BRIEFING.COM] The S&P 500 is up 2.2% following Fed Chair Powell's press conference, which did not yield any surprises. Market reaction was muted.
One last sector update shows materials (+4.6%), information technology (+3.1%), and financials (+2.7%) leading with solid gains, while the energy (+0.7%) and real estate (+0.7%) sectors trail with more modest gains.
WTI crude futures settled lower by 1.1%, or $0.41, to $38.75/bbl. The decline came despite a weaker dollar (92.58, -0.82, -0.9%).