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Stocks close at highs in late-session push
22-Jul-20 16:15 ET
Dow +165.44 at 27005.84, Nasdaq +25.76 at 10706.21, S&P +18.72 at 3276.02

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

[BRIEFING.COM] U.S. stocks closed at session highs on Wednesday, with the S&P 500 and Dow Jones Industrial Average both gaining 0.6%, followed by modest 0.2% gains in the Nasdaq Composite and Russell 2000.

For most of the day, the S&P 500 traded slightly above its flat line, until buyers stepped in late in the session on no specific news catalyst. The S&P 500 utilities (+1.5%) and real estate (+1.3%) sectors strengthened their leadership positions, but the energy (-1.3%) and financials (-0.1%) sectors still closed lower.

In addition, Microsoft (MSFT 211.75, +3.00, +1.4%) and Tesla (TSLA 1592.33, +23.97, +1.5%) padded gains in front of their earnings reports after the close.

Other positive factors beside the gains in MSFT and TSLA included Pfizer (PFE 38.56, +1.87, +5.1%) and BioNTech (BNTX 104.17, +12.57, +13.7%) securing a vaccine supply agreement with the U.S. government for $1.95 billion upon FDA approval and Best Buy (BBY 97.36, +7.08, +7.8%) offering encouraging sales commentary.

The market kept its composure despite the U.S. ordering China to close its consulate in Houston by Friday, President Trump saying he thinks the coronavirus situation will "probably get worse before it gets better," and Texas Instruments (TXN 132.53, -2.95, -2.2%) falling 2% despite reporting upbeat earnings results and guidance.

Separately, Wynn Resorts (WYNN 76.10, -3.09, -3.9%) furloughed some Las Vegas workers amid disappointing demand. Spotify (SPOT 289.62, +13.24, +4.8%) confirmed it reached a new multi-year global license agreement with Universal Music Group.

U.S. Treasuries ended the session slightly higher. The 2-yr yield declined one basis point to 0.13%, and the 10-yr yield declined one basis point to 0.60%. The U.S. Dollar Index declined 0.2% to 94.95. Gold futures increased 1.1% to $1864.30/ozt. WTI crude futures increased 0.3% to $41.88/bbl.

Reviewing Wednesday's economic data:

Existing home sales surged 20.7% m/m in June to a seasonally adjusted annual rate of 4.72 million (Briefing.com consensus 4.70 million). That is the largest monthly increase on record, although the seasonally adjusted annual rate of existing home sales is still 18% lower than where it stood in February.
The key takeaway from the report is that inventory of existing homes continues to be constrained. That is a pressure point that will feed higher prices; but it's also a reality that should bolster the prospects for new home demand.
The FHFA Housing Price Index for July declined 0.3% following a revised 0.1% increase in June (from +0.2%).
The weekly MBA Mortgage Applications Index increased 4.1% following a 5.1% increase in the prior week.

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

Nasdaq Composite +19.3% YTD
S&P 500 +1.4% YTD
Dow Jones Industrial Average -5.4% YTD
Russell 2000 -10.7% YTD

Market Snapshot
Dow 27005.84 +165.44 (0.62%)
Nasdaq 10706.21 +25.76 (0.24%)
SP 500 3276.02 +18.72 (0.57%)
10-yr Note +1/32 0.594
NYSE Adv 1737 Dec 1203 Vol 829.0 mln
Nasdaq Adv 1475 Dec 1784 Vol 4.0 bln

Industry Watch
Strong: Real Estate, Utilities, Materials
Weak: Energy, Financials

Moving the Market

-- Stocks close at highs in late-session push

-- Market withstood lingering U.S.-China tensions, virus concerns

-- Upbeat earnings news

WTI crude futures inch higher
22-Jul-20 15:25 ET
Dow +124.06 at 26964.46, Nasdaq +8.06 at 10688.51, S&P +13.41 at 3270.71

[BRIEFING.COM] The S&P 500 is trading at session highs with a 0.4% gain. CNBC recently reported that Republican leadership is considering a $400/month in extended unemployment benefits through Dec. 31 in the next stimulus package.

One last look at the S&P 500 sectors shows eight of the 11 groups trading in positive territory. The utilities (+1.7%) and real estate (+1.1%) sectors remain in the lead, while the energy (-1.5%), financials (-0.4%), and communication services (-0.1%) sectors trade lower.

WTI crude futures settled higher by $0.12 (+0.3%) to $41.88/bbl.