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Major indices eke out record closes
17-Dec-19 16:15 ET
Dow +31.27 at 28267.07, Nasdaq +9.13 at 8823.37, S&P +1.07 at 3192.52

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

[BRIEFING.COM] The S&P 500 finished flat (+0.03%) on Tuesday in a tight-ranged, and lackluster, session. It was still technically a record close, though, joining the Dow Jones Industrial Average (+0.1%) and Nasdaq Composite (+0.1%) further in record territory. The Russell 20000 outperformed with a 0.5% gain.

It was a relatively quiet session in terms of new developments, but the better-than-expected November readings for housing starts, building permits, and industrial production helped reinforce the market's positive economic outlook. Fittingly, the cyclical S&P 500 consumer discretionary (+0.6%) and financials (+0.5%) sectors outperformed the broader market.

Six of the 11 sectors did finish lower, though, with the weakest performer being the real estate sector (-1.2%). No other sector finished down more than 0.2% (information technology).

Shares of Boeing (BA 327.00, unch, unch) were volatile after the company confirmed it will suspend 737 MAX production starting in January. Separately, Johnson & Johnson (JNJ 143.56, +1.77, +1.3%) was upgraded to Overweight from Equal-Weight at Morgan Stanley, and Eli Lilly (LLY 125.33, +2.48, +2.0%) provided upside FY20 guidance.

In M&A activity, LogMeIn (LOGM 85.95, +3.54, +4.3%) agreed to be acquired by affiliates of Francisco Partners and Evergreen Coast Capital for $4.3 billion in cash. Tallgrass Energy (TGE 22.14, +3.85, +21.1%) agreed to be taken private by Blackstone (BX 54.58, +0.05, +0.1%) in a $6.3 billion deal.

On the earnings front, Jabil (JBL 43.43, +2.79, +6.9%) topped expectations and raised its FY20 guidance, while Navistar (NAV 28.97, -3.38, -10.5%) missed revenue estimates.

U.S. Treasuries finished little changed. Both the 2-yr yield and 10-yr yield remained unchanged at 1.63% and 1.89%, respectively. The U.S. Dollar Index increased 0.2% to 97.22. WTI crude rose 1.2%, or $0.69, to $60.90/bbl.

Reviewing Tuesday's economic data, which included Housing Starts and Building Permits for November:

Total housing starts increased 3.2% m/m to a seasonally adjusted annual rate of 1.365 million (Briefing.com consensus 1.340 million) while total building permits increased 1.4% m/m to a seasonally adjusted annual rate of 1.482 million (Briefing.com consensus 1.400 million).
The report contained some noise, yet the key takeaway is that single-family starts (+2.4%) and permits (+0.8%) recorded solid increases.
Industrial production increased 1.1% in November (Briefing.com consensus 0.8%) after declining a revised 0.9% (from -0.8%) in October. The capacity utilization rate increased to 77.3% (Briefing.com consensus 77.4%) from a revised 76.6% (from 76.7%) in October.
The key takeaway from the report is the November rebound was fueled by the end of the strike at GM. Excluding motor vehicles and parts, industrial production increased 0.5%.
The October Job Openings and Labor Turnover Survey showed job openings increase to 7.267 million from a revised 7.032 million in September (from 7.024 million).

Looking ahead, investors will receive the MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +33.0% YTD
S&P 500 +27.4% YTD
Russell 2000 +22.9% YTD
Dow Jones Industrial Average +21.2% YTD

Market Snapshot
Dow 28267.07 +31.27 (0.11%)
Nasdaq 8823.37 +9.13 (0.10%)
SP 500 3192.52 +1.07 (0.03%)
10-yr Note -1/32 1.882
NYSE Adv 1804 Dec 1073 Vol 935.9 mln
Nasdaq Adv 1760 Dec 1390 Vol 2.2 bln

Industry Watch
Strong: Financials, Consumer Discretionary
Weak: Real Estate

Moving the Market

-- Major indices eke out record closes in lackluster session

-- Better-than-expected housing starts, building permits, and industrial production for November

-- Relative strength in the financials and consumer discretionary sectors

WTI crude gains 1%
17-Dec-19 15:25 ET
Dow +59.69 at 28295.49, Nasdaq +9.81 at 8824.05, S&P +2.67 at 3194.12

[BRIEFING.COM] The S&P 500 continues to tread water with a 0.1% gain. The benchmark index has traded within a narrow, eight-point range today.

One last look at the S&P 500 sectors shows the financials (+0.7%), consumer discretionary (+0.5%), and utilities (+0.4%) sectors outperforming the broader market, while the real estate sector (-1.1%) is the only sector down more than 0.5%.

WTI crude settled up $0.69 (+1.2%) to $60.90/bbl.