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Nasdaq closes at record high in weak session
09-Jul-20 16:15 ET
Dow -361.19 at 25706.09, Nasdaq +55.25 at 10547.75, S&P -17.89 at 3152.05

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

[BRIEFING.COM] The S&P 500 lost 0.6% on Thursday, but continued strength in the mega-cap technology stocks helped the benchmark index overcome an early 1.7% decline. The Nasdaq Composite, powered by these household names, rose 0.5% to close at a record high. The Dow Jones Industrial Average (-1.4%) and Russell 2000 (-2.0%) underperformed.

Despite the gain in the Nasdaq, today was a weak performance by the market. Declining issues outpaced advancing issues by a 3:1 margin at the NYSE and a 2:1 margin at the Nasdaq, and the cyclical S&P 500 energy (-4.9%), financials (-2.2%), and industrials (-2.1%) sectors succumbed to noticeable losses.

Only the consumer discretionary (+0.8%) and information technology (+0.4%) sectors finished higher, and that was predominately due to record closes in Amazon (AMZN 3182.63, +101.52, +3.3%), Microsoft (MSFT 214.32, +1.49, +0.7%), and Apple (AAPL 382.73, +1.36, +0.4%).

The underperformance of the cyclical sectors, and the curve-flattening activity in the Treasury market, suggested that the reopening trade lost some of its luster. The 2-yr yield declined one basis point to 0.15%, and the 10-yr yield declined five basis points to 0.61%. The U.S. Dollar Index gained 0.4% to 96.78. WTI crude fell 3.1%, or $1.28, to $39.63/bbl.

While there wasn't a confirmed catalyst for today's decline, there were some key developments. Weekly initial claims decreased by 99,000 to 1.314 million (Briefing.com consensus 1.350 million), which was its 14th straight weekly decline but also a persistently high number of claims, and the Supreme Court ruled that a New York Grand Jury may access President Trump's tax returns.

Note, the market did appear to lose some steam in early action after the Supreme Court ruling, but the judges ruled in separate decision against efforts by Democratic-led House Committees to get access to the president's financial records.

Separately, shares of Walgreens Boots Alliance (WBA 39.01, -3.28, -7.8%) fell 8% after the company missed earnings estimates and issued downside FY20 EPS guidance.

Reviewing Thursday's economic data:

initial claims decreased by 99,000 for the week ending July 4 to 1.314 million (Briefing.com consensus 1.350 million). Continuing claims for the week ending June 27 plunged by 698,000 to 18.062 million.
The key takeaway from the report is that it suggests things are less bad on the job loss front, but less bad is clearly still a long way from good for both initial claims and continuing claims.
Wholesale inventories decreased 1.2% in May, as expected, following a revised 0.2% increase in April (from +0.3%).

Looking ahead, investors will receive the Producer Price Index for June on Friday.

Nasdaq Composite +17.6% YTD
S&P 500 -2.4% YTD
Dow Jones Industrial Average -9.9% YTD
Russell 2000 -16.2% YTD

Market Snapshot
Dow 25706.09 -361.19 (-1.39%)
Nasdaq 10547.75 +55.25 (0.53%)
SP 500 3152.05 -17.89 (-0.56%)
10-yr Note +28/32 0.603
NYSE Adv 771 Dec 2125 Vol 972.0 mln
Nasdaq Adv 1016 Dec 2141 Vol 4.0 bln

Industry Watch
Strong: Consumer Discretionary, Information Technology
Weak: Financials, Energy, Industrials

Moving the Market

-- Nasdaq closes higher in weak session

-- Mega-cap technology stocks were among the few bright spots

-- Politically-minded headlines

-- Weekly initial jobless claims declined by 99,000 to 1.314 million (Briefing.com consensus 1.350 million)

WTI crude falls back below $40 per barrel
09-Jul-20 15:25 ET
Dow -353.94 at 25713.36, Nasdaq +45.38 at 10537.88, S&P -17.08 at 3152.73

[BRIEFING.COM] The S&P 500 is trading lower by 0.4%, while the Russell 2000 trades lower by 1.7%.

One last look at the S&P 500 sectors shows the consumer discretionary (+0.8%), information technology (+0.3%), and communication services (+0.03%) sectors trading higher amid strength in their mega-cap components, while the energy (-4.3%), financials (-2.2%), and industrials (-1.8%) sectors are underperforming.

WTI crude futures settled the session lower by $1.28 (-3.1%) to $39.63/bbl.