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Stock Market Update
Major indices, except Nasdaq, close lower
17-Jun-20 16:20 ET
Dow -170.37 at 26119.63, Nasdaq +14.66 at 9910.54, S&P -11.25 at 3113.36

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

[BRIEFING.COM] The S&P 500 declined 0.4% on Wednesday, falling for the first time in four sessions amid lingering angst about a U.S. recovery and equity valuations. The Dow Jones Industrial Average lost 0.7%, and the Russell 2000 lost 1.8%. The Nasdaq Composite, however, increased 0.2%.

It was a relatively benign decline for the benchmark index considering that eight of the 11 S&P 500 sectors finished in negative territory. The energy (-3.3%) and financials (-1.4%) sectors declined noticeably, while the communication services (+0.1%), consumer discretionary (+0.1%), and information technology (+0.03%) sectors barely finished higher.

The market's recovery optimism was kept in check after several states (and Beijing) continued to report an uptick in COVID-19 cases, Oracle (ORCL 51.52, -3.07, -5.6%) disclosed that customers within some of its hardest hit verticals postponed some orders, and Norwegian Cruise Line (NCLH 19.20, -1.76, -8.4%) extended its suspension of cruise voyages through Sept. 30.

The S&P 500 was trading higher in the afternoon despite any growth concerns but notably slipped to session lows (-0.5%) shortly after Jeremy Grantham, a closely-followed market pundit, told CNBC that the goal number for equity exposure in the U.S. is zero due to the market's bubble-like characteristics.

It's one man's view, but one that some investors wouldn't disagree with given the grim economic environment. Domestically-oriented small-caps underperformed amid the recovery angst, but losses were mitigated by a recognition that the Fed will continue to aggressively support financial conditions. Investors siding with Mr. Grantham will likely have to bet against the Fed.

On a related note, Fed Chair Powell concluded his semiannual monetary policy testimony on Wednesday. Mr. Powell reminded lawmakers of their spending powers, reiterating that Congress should do more to support the economy. Market reaction was muted.

U.S. Treasuries ended the session slightly higher after trading in a narrow range. The 2-yr yield declined two basis points to 0.19%, and the 10-yr yield declined two basis points to 0.73%. The U.S. Dollar Index increased 0.2% to 97.13. WTI crude declined 0.9% to $37.93/bbl amid an unexpected increase in weekly crude inventories.

Reviewing Wednesday's economic data:

Total housing starts increased 4.3% m/m in May to a seasonally adjusted annual rate of 974,000 units. That was well below the Briefing.com consensus estimate of 1.170 million and down 23.2% yr/yr. Total building permits increased 14.4% m/m to a seasonally adjusted annual rate of 1.220 million, which was just shy of the Briefing.com consensus estimate of 1.260 million.
The key takeaway from the report is that permits, which are a leading indicator, increased a solid 11.9% m/m for single-unit dwellings. Single-unit permits increased in all regions, too.
The weekly MBA Mortgage Applications Index rose 8.0% following a 9.3% spike in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report and the Philadelphia Fed Index for June on Thursday.

Nasdaq Composite +10.5% YTD
S&P 500 -3.6% YTD
Dow Jones Industrial Average -8.5% YTD
Russell 2000 -14.5% YTD

Market Snapshot
Dow 26119.63 -170.37 (-0.65%)
Nasdaq 9910.54 +14.66 (0.15%)
SP 500 3113.36 -11.25 (-0.36%)
10-yr Note +25/32 0.725
NYSE Adv 966 Dec 1945 Vol 1.0 bln
Nasdaq Adv 1252 Dec 2084 Vol 4.2 bln

Industry Watch
Strong: Consumer Discretionary, Information Technology, Communication Services
Weak: Energy, Financials, Real Estate

Moving the Market

-- Major indices, except Nasdaq, close lower

-- Lingering angst pertaining to a recovery and valuations

-- Relative weakness in small-caps and the energy and financials sectors

-- Aggressive policy support from the Fed remained a positive consideration; Fed Chair Powell reminded Congress of their spending powers

WTI crude settles lower
17-Jun-20 15:30 ET
Dow -142.87 at 26147.13, Nasdaq +16.37 at 9912.25, S&P -10.50 at 3114.11

[BRIEFING.COM] The S&P 500 is down 0.3%, returning into negative territory for the first time since this morning.

One last look at the S&P 500 sectors shows the energy sector (-2.7%) down noticeably, followed by the financials (-1.1%) and real estate (-0.9%) sectors. The consumer discretionary (+0.1%), information technology (+0.1%), and communication services (unch) sectors trade near their flat lines.

WTI crude futures settled today's session lower by $0.33 (-0.9%) to $37.93/bbl. On a relate note, weekly crude inventories showed an unexpected build, according to data from the EIA.