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S&P 500 and Nasdaq close in record territory
19-Feb-20 16:15 ET
Dow +115.84 at 29347.94, Nasdaq +84.44 at 9817.21, S&P +15.86 at 3386.15

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

[BRIEFING.COM] The S&P 500 (+0.5%) and Nasdaq Composite (+0.9%) closed at fresh record highs on Wednesday, as investors remained optimistic about the global economic outlook despite the coronavirus. The Dow Jones Industrial Average increased 0.4%, and the Russell 2000 increased 0.5%.

In the U.S., building permits climbed to a near 13-year high in January, while China signaled further support for businesses affected by the coronavirus. In addition, the FOMC minutes from the January meeting didn't alter the market's favorable outlook for monetary policy, which is to say that policy could be adjusted if the coronavirus situation doesn't improve.

Although the stock market did lose some steam into the close, the S&P 500 energy (+1.3%) and information technology (+1.1%) sectors still rose more than 1.0%. Energy stocks benefited from a sharp increase in oil prices ($53.32/bbl, +1.22, +2.3%). The defensive-oriented real estate (-1.4%) and utilities (-1.1%) sectors closed noticeably lower.

Apple (AAPL 323.62, +4.62, +1.5%) provided influential leadership for the market while momentum stock like Tesla (TSLA 917.42, +59.02, +6.9%) and Virgin Galactic (SPCE 37.35, +7.05, +23.3%) stayed hot.

Apple's advance today was a testament to the market's view that the coronavirus is a transitory event. Shares recouped most of yesterday's losses following the company's quarterly revenue warning due to the virus. Regarding Tesla, its price target was raised to $928 from $729 at Piper Sandler.

The Philadelphia Semiconductor Index rose 2.6%, thanks to strength in NVIDIA (NVDA 314.70, +18.13, +6.1%), which was upgraded to Outperform from Mkt Perform at Bernstein, and Analog Devices (ADI 123.89, +5.32, +4.5%), which beat earnings estimates.

U.S. Treasuries traded within a narrow range and closed slightly lower. The 2-yr yield increased two basis points to 1.42%, and the 10-yr yield increased one basis point to 1.57%. The U.S. Dollar Index advanced 0.2% to 99.59.

Reviewing Wednesday's economic data:

The Producer Price Index for January was up 0.5% m/m (Briefing.com consensus +0.1%) and core PPI, which excludes food and energy, was also up 0.5% (Briefing.com consensus +0.1%).
Notwithstanding the large m/m increases, the key takeaway from the report is that producer prices remain relatively tame on a yr/yr basis, up 2.1% for total PPI and up 1.7% for core PPI. Also, with the Consumer Price Index released last week, it is clear today that there wasn't much bleed-through in January to the consumer side of things from the uptick in producer prices.
Granted total housing starts declined 3.6% m/m in January to a seasonally adjusted annual rate of 1.567 million (Briefing.com consensus 1.390 million), but that was well above expectations and marked a 21.4% yr/yr increase. Building permits -- a leading indicator -- increased 9.2% m/m to 1.551 million (Briefing.com consensus 1.460 million) and were up 17.9% yr/yr.
The key takeaway from the report is the recognition that the three-month moving average for starts (1.525 mln) is the highest since January 2007.
The weekly MBA Mortgage Applications Index fell 6.4% following a 1.1% increase in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Philadelphia Fed Index for February, and the Conference Board's Leading Economic Index for January on Thursday.

Nasdaq Composite +9.4% YTD
S&P 500 +4.8% YTD
Dow Jones Industrial Average +2.8% YTD
Russell 2000 +1.4% YTD

Market Snapshot
Dow 29347.94 +115.84 (0.40%)
Nasdaq 9817.21 +84.44 (0.87%)
SP 500 3386.15 +15.86 (0.47%)
10-yr Note 0/32 1.569
NYSE Adv 1540 Dec 1334 Vol 828.7 mln
Nasdaq Adv 1913 Dec 1260 Vol 2.4 bln

Industry Watch
Strong: Energy, Information Technology
Weak: Utilities, Real Estate

Moving the Market

-- S&P 500 and Nasdaq close at new highs

-- Strength in the semiconductor and energy spaces

-- Building permits rise more than expected, climb to near 13-year high in January

WTI crude gains more than 2%
19-Feb-20 15:25 ET
Dow +140.03 at 29372.13, Nasdaq +92.98 at 9825.75, S&P +18.88 at 3389.17

[BRIEFING.COM] The S&P 500 continues to trade higher by 0.6% and is on pace to close in record territory.

One last look at the S&P 500 sectors shows energy (+1.5%) and information technology (+1.1%) up more than 1%, while utilities (-0.9%) and real estate (-1.0%) are down about 1%. No other sector is trading lower today.

WTI crude rose $1.22 (+2.3%) to $53.32/bbl.