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S&P 500 closes higher in defensive-led session
17-Jul-20 16:15 ET
Dow -62.76 at 26671.95, Nasdaq +29.36 at 10503.28, S&P +9.16 at 3224.73

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

[BRIEFING.COM] The S&P 500 eked out a 0.3% gain on Friday in a lackluster session led by the defensive-oriented sectors. The Nasdaq Composite (+0.3%) and Russell 2000 (+0.4%) rose comparably to the benchmark index, while the Dow Jones Industrial Average declined 0.2% amid relative weakness in financial and energy companies.

Negative factors in today's trade included Netflix (NFLX 492.99, -34.40, -6.5%) issuing cautious subscriber guidance, the preliminary University of Michigan Index of Consumer Sentiment for July dropping to 73.2 (Briefing.com consensus 77.6) from 78.1 in June, and the U.S. tallying another daily record in new coronavirus cases.

The lower consumer sentiment reading was closely linked with the resurgence in coronavirus cases, but investors remained willing to stay in the market. Many opted for a defensive stance that lifted the S&P 500 utilities (+2.3%), real estate (+1.4%), and health care (+1.4%) sectors into the leadership spots at the expense of the cyclical energy (-1.5%) and financials (-0.8%) sectors.

Several mega-cap technology stocks continued to underperform, taking note of the disappointing price action in Netflix as a possible precursor if they fail to live up to elevated expectations. Shares of Amazon (AMZN 2961.97, -37.93, -1.3%) fell 7.4% this week, including today's 1.3% decline.

In other earnings news, BlackRock (BLK 587.72, +20.76, +3.7%) and J.B. Hunt Transport (JBHT 136.82, +4.27, +3.2%) were some notable standouts, with the latter helping drive the outperformance of the Dow Jones Transportation Average (+1.1%).

U.S. Treasuries ended the session little changed. The 2-yr yield declined one basis point to 0.14%, and the 10-yr yield increased two basis points to 0.63%. The U.S. Dollar Index declined 0.4% to 95.95. WTI crude futures declined 0.5%, or $0.20, to $40.56/bbl.

Reviewing Friday's economic data:

Total housing starts increased 17.3% m/m in June to a seasonally adjusted annual rate of 1.186 million units (Briefing.com consensus 1.180 million). Building permits rose 2.1% to 1.241 million (Briefing.com consensus 1.290 million).
The key takeaway from the report is that single-unit permits (+11.8%) and starts (+17.2%) were both strong, which is good to see for a housing market that is short on supply.
The preliminary University of Michigan Index of Consumer Sentiment for July dropped to 73.2 (Briefing.com consensus 77.6) from the final reading of 78.1 for June. The July reading, which is just 1.4 points above the April low, slumped in conjunction with the renewed surge in coronavirus cases and moves by some states to pause or roll back reopening efforts.
The key takeaway from the report is the acknowledgment that sentiment is destined to sink further, creating a risk for a longer recession, if Congress fails to come through with another aggressive fiscal policy response that focuses on financial relief for households and state and local governments.

Looking ahead, there are no economic reports scheduled until next Wednesday, which will include Existing Home Sales for June.

Nasdaq Composite +17.1% YTD
S&P 500 -0.2% YTD
Dow Jones Industrial Average -6.5% YTD
Russell 2000 -11.7% YTD

Market Snapshot
Dow 26671.95 -62.76 (-0.23%)
Nasdaq 10503.28 +29.36 (0.28%)
SP 500 3224.73 +9.16 (0.28%)
10-yr Note 0/32 0.623
NYSE Adv 1609 Dec 1318 Vol 869.0 mln
Nasdaq Adv 1935 Dec 1311 Vol 4.5 bln

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

Moving the Market

-- S&P 500 closes slightly higher amid defensive-oriented leadership

-- Netflix (NFLX) shares fall 6.5% on cautious subscriber guidance

-- Preliminary University of Michigan Index of Consumer Sentiment for July dropped to 73.2 (Briefing.com consensus 77.6) from 78.1 in June

-- Relative weakness in financial and energy stocks

WTI crude futures post modest loss
17-Jul-20 15:25 ET
Dow -47.41 at 26687.30, Nasdaq +43.88 at 10517.80, S&P +13.50 at 3229.07

[BRIEFING.COM] The S&P 500 continues to trade higher by 0.4% and is on pace to close the week higher by 1.4%. Trading volume has been lighter than usual at the NYSE.

One last look at the S&P 500 sectors shows utilities (+2.4%), real estate (+1.7%), and health care (+1.6%) continuing to lead in gains, while the energy (-1.6%) and financials (-0.6%) remain today's laggards.

WTI crude futures settled lower by $0.20 (-0.5%) to $40.56/bbl.