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Market falters into close, snaps winning streak
07-Jul-20 16:20 ET
Dow -396.85 at 25890.20, Nasdaq -89.76 at 10343.89, S&P -34.40 at 3145.19

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

[BRIEFING.COM] The stock market pulled back from its recent gains on Tuesday, with the S&P 500 (-1.1%), Dow Jones Industrial Average (-1.5%), and Russell 2000 (-1.9%) losing more than 1.0%. The Nasdaq Composite declined 0.9% after setting a new intraday high in the morning.

Early in the session, money continued to flow into the mega-cap technology companies, which briefly lifted the S&P 500 into positive territory. A lack of conviction, however, gradually subsumed the market on the thesis that it had gotten overextended on a short-term basis. The benchmark index had risen for five straight days coming into the session.

Cyclical sectors declined the most, specifically the energy (-3.2%), financials (-2.1%), industrials (-1.9%), and consumer discretionary (-1.7%) sectors. The consumer staples sector (+1.0%), on the other hand, was the only sector that closed higher due to a 7% gain in shares of Walmart (WMT 126.95, +8.06, +6.8%).

Walmart, according to Recode, plans to launch Walmart+ later this month as a competing delivery service to Amazon (AMZN 3000.12, -56.92, -1.9%) prime.

Separately, Atlanta Fed President Bostic cautioned in a Financial Times interview that economic activity appears to be leveling off due to the continued spread of the coronavirus. On Tuesday, the cities of San Francisco and Melbourne, Australia scaled back reopening efforts, joining many other local governments to do so, while Carnival (CCL 14.57, -1.04, -6.7%) canceled some future cruise itineraries.

On a related note, Novavax (NVAX 104.56, +25.12, +31.6%) announced it received a $1.6 billion investment from the federal government to advance its COVID-19 vaccine candidate. NVAX shares surged nearly 32%.

Longer-dated U.S. Treasuries finished higher, causing some curve-flattening activity. The 2-yr yield was unchanged at 0.16%, while the 10-yr yield declined three basis points to 0.65%. The U.S. Dollar Index increased 0.3% to 97.00. WTI crude increased 0.2% to $40.60/bbl.

Tuesday's economic data was limited to the JOLTS - Job Openings report, which showed job openings increase to 5.397 mln in May from a revised 4.996 mln in April (from 5.046 mln). Looking ahead, investors will receive the Consumer Credit Report for May and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +15.3% YTD
S&P 500 -2.7% YTD
Dow Jones Industrial Average -9.3% YTD
Russell 2000 -15.1% YTD

Market Snapshot
Dow 25890.20 -396.85 (-1.51%)
Nasdaq 10343.89 -89.76 (-0.86%)
SP 500 3145.19 -34.40 (-1.08%)
10-yr Note +4/32 0.640
NYSE Adv 707 Dec 2250 Vol 961.2 mln
Nasdaq Adv 904 Dec 2435 Vol 4.2 bln

Industry Watch
Strong: Consumer Staples, Materials
Weak: Financials, Energy, Industrials, Consumer Discretionary

Moving the Market

-- Stock market closes lower after recent stretch of gains, relative weakness in cyclical sectors

-- Walmart (WMT) shares gain 7% on news that the company plans to launch a competing delivery service this month

-- Lingering growth concerns

WTI crude ekes out gain
07-Jul-20 15:25 ET
Dow -277.85 at 26009.20, Nasdaq -38.66 at 10394.99, S&P -20.22 at 3159.37

[BRIEFING.COM] The S&P 500 is now trading at fresh session lows with 0.7% decline.

One last look at the S&P 500 sectors shows consumer staples (+1.5%) bucking the broader trend due to a 7% gain in shares of Walmart (WMT 127.29, +8.40, +7.1%). The energy (-2.5%), financials (-2.1%), industrials (-1.6%), and consumer discretionary (-1.5%) sectors are down noticeably.

WTI crude futures settled today's session higher by $0.09 (+0.2%) to $40.60/bbl.