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Wall Street ekes out gains in mixed session
05-Dec-19 16:20 ET
Dow +28.01 at 27677.70, Nasdaq +4.03 at 8570.70, S&P +4.67 at 3117.43

https://www.briefing.com/stock-market-update

[BRIEFING.COM] The S&P 500 increased 0.2% on Thursday in a mixed session, as investors continued to follow the latest trade headlines with muted conviction. The Dow Jones Industrial Average (+0.1%), Nasdaq Composite (+0.1%), and Russell 2000 (+0.1%) each increased 0.1%.

China's Commerce Ministry said Beijing has maintained close contact with the U.S., which Treasury Secretary Mnuchin indirectly backed up when he told reporters that talks remain on track after a recent phone call. The latest sticking point, according to The Wall Street Journal, is the value of farm goods the U.S. wants China to purchase.

The latter report caused a brief dip in the market, but stocks quickly recovered on the presumption that discussions are still moving toward a Phase One deal. There appeared, however, to be a wait-and-see mindset not only for the trade situation to progress but also for the release of the November employment report on Friday.

Today's outright leader was the lightly-weighted S&P 500 materials sector (+0.7%). Conversely, the energy sector (-0.5%) succumbed to broad-based selling while the consumer staples sector (-0.2%) was pressured by earnings-driven losses in Kroger (KR 26.80, -0.84, -3.0%) and Brown-Forman (BF.B 63.57, -4.27, -6.3%).

Notable gainers included Apple (AAPL 265.58, +3.84, +1.5%) and Nike (NKE 95.79, +2.07, +2.2%) after the stocks received positive-minded analyst recommendations. Apple's price target was raised to $300 from $250 at Citigroup. Nike was upgraded to Buy from Neutral at Goldman Sachs and was placed on its Conviction Buy List.

The biotech space also had some noteworthy moves. Sage Therapeutics (SAGE 60.18, -89.03, -59.7%) tanked after a Phase 3 study did not meet its primary endpoint for major depressive disorder, while Aurinia Pharma (AUPH 15.00, +6.61, +78.8%) surged following a positive Phase 3 result for a lupus drug. Biogen (BIIB 299.39, +9.87, +3.4%) provided a well-received update for its Alzheimer's drug.

Separately, United Airlines (UAL 87.86, -0.31, -0.4%) announced that CEO Oscar Munoz will be stepping down in May and will transition over to Executive Chairman.

U.S. Treasuries finished the session on a lower note. The 2-yr yield increased one basis point to 1.59%, and the 10-yr yield increased two basis points to 1.80%. The U.S. Dollar Index declined 0.3% to 97.38. WTI crude finished little changed at $58.45/bbl as OPEC+ convened in Vienna to discuss production cuts.

Reviewing Thursday's economic data, which included weekly jobless claims, the Trade Balance report for October, and the Factory Orders report for October:

Initial claims for the week ending November 30 dropped by 10,000 to 203,000 (Briefing.com consensus 221,000). Continuing claims for the week ending November 23 increased by 51,000 to 1.693 million.
The key takeaway from this report is the understanding that initial claims dropped back close to the lowest levels on record, which will contribute to a belief that the labor market remains tight.
The key takeaway from this report is the understanding that initial claims dropped back close to the lowest levels on record, which will contribute to a belief that the labor market remains tight. The narrowing in the deficit was a function of exports (-$0.4 billion) declining less than imports (-$4.3 billion).
The key takeaway from the report, however, is that a decline in both exports and imports for the second straight month is not a hallmark of a global economy running strong.
The Factory Orders report for October increased 0.3% (Briefing.com consensus +0.3%), and the September reading was revised to -0.3% (from -0.6%).

Looking ahead, investors will receive the following reports on Friday: the Employment Situation Report for November, the preliminary University of Michigan Index of Consumer Sentiment for December, Wholesale Inventories for October, and Consumer Credit for October.

Nasdaq Composite +29.2% YTD
S&P 500 +24.4% YTD
Russell 2000 +19.8% YTD
Dow Jones Industrial Average +18.7% YTD

Market Snapshot
Dow 27677.70 +28.01 (0.10%)
Nasdaq 8570.70 +4.03 (0.05%)
SP 500 3117.43 +4.67 (0.15%)
10-yr Note -2/32 1.802
NYSE Adv 1551 Dec 1329 Vol 787.0 mln
Nasdaq Adv 1488 Dec 1474 Vol 2.0 bln

Industry Watch
Strong: Materials, Information Technology, Communication Services
Weak: Energy, Consumer Discretionary, Consumer Staples

Moving the Market

-- Stock market ekes out gains in front of employment report tomorrow

-- China says it has maintained close contact with the U.S.; Treasury Secretary Mnuchin says trade talks are on track

-- Relative weakness in the energy space

-- Apple (AAPL), Nike (NKE) gain on positive-minded analyst recommendations

WTI crude settles little changed
05-Dec-19 15:30 ET
Dow +37.89 at 27687.58, Nasdaq +3.88 at 8570.55, S&P +4.69 at 3117.45

[BRIEFING.COM] The S&P 500 is up 0.2% after seeing a brief dip into negative territory earlier. That dip came after The Wall Street Journal reported that the U.S. and China are at odds about the value of farm good purchases.

One last look at the S&P 500 sectors shows the materials (+0.7%), financials (+0.4%), and information technology (+0.4%) sectors leading the advance. Conversely, the energy sector (-0.4%) remains today's laggard.

WTI crude settled little changed at $58.45/bbl. For the week, the commodity is still up 6%.