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Down day to end the week, Intel disappoints
24-Jul-20 16:20 ET
https://www.briefing.com/stock-market-update

Dow -182.44 at 26469.89, Nasdaq -98.24 at 10363.26, S&P -20.03 at 3215.63

[BRIEFING.COM] The stock market ended the week in negative territory in a mostly broad-based decline. The S&P 500 fell 0.6%, the Dow Jones Industrial Average fell 0.7%, and the Nasdaq Composite fell 0.9%. The small-cap Russell 2000 underperformed with a 1.5% decline.

Ten of the 11 S&P 500 sectors closed lower, but the health care (-1.1%) and information technology (-1.2%) sectors were the only sectors to decline more than 1.0%. Note, the tech sector was down as much as 2.7% intraday, while the consumer discretionary sector gained 0.3% as shares of Amazon (AMZN 3008.91, +22.36, +0.8%) recovered an early 3.3% decline.

Intel (INTC 50.59, -9.81, -16.2%) did very little recovering, with shares falling 16% after the company announced a six-month delay in its next-generation 7nm chip technology. While disappointing for Intel investors, the news was welcomed by investors of Advanced Micro Devices (AMD 69.40, +9.83, +16.5%).

Other negative factors today included China ordering the U.S. to close its consulate in Chengdu in response to the U.S. ordering China to close its consulate in Houston and a delay in the Republican coronavirus relief bill until next week.

On a more positive note, new home sales surged 13.8% m/m in June to a seasonally adjusted annual rate of 776,000 (Briefing.com consensus 680,000). That was the strongest pace of sales since July 2007 and higher than the pre-pandemic pace of 774,000 seen in January.

In other corporate news, Goldman Sachs (GS 201.47, -1.66, -0.8%) settled its 1MDB case for $3.9 billion, Verizon (VZ 56.85, +1.00, +1.8%) beat top and bottom-line estimates, American Express (AXP 95.33, -1.34, -1.4%) reported mixed quarterly results, and Walt Disney (DIS 117.61, -0.51, -0.4%) reportedly delayed several blockbuster movies by a year.

U.S. Treasuries finished little changed. The 2-yr yield declined one basis point to 0.14%, and the 10-yr yield was flat at 0.58%. Gold futures rose 0.4% to $1897.50/ozt -- its highest settlement price ever amid continued weakness in the U.S. Dollar Index (94.39, -0.30, -0.3%). WTI crude futures settled little changed at $41.08/bbl.

Reviewing Friday's economic data:

New home sales surged 13.8% m/m in June to a seasonally adjusted annual rate of 776,000 (Briefing.com consensus 680,000). That was the strongest pace of sales since July 2007 and higher than the pre-pandemic pace of 774,000 seen in January. On a yr/yr basis, new home sales were up 13.7%.
The key takeaway from the report is that sales activity in the new home market is quite healthy given the tight supply of existing homes for sale, low mortgage rates, pent-up demand, and an emerging, coronavirus-driven shift by city dwellers to suburban settings.

Looking ahead, investors will receive Durable Goods Orders for June on Monday.

Nasdaq Composite +15.5% YTD
S&P 500 -0.5% YTD
Dow Jones Industrial Average -7.3% YTD
Russell 2000 -12.0% YTD

Market Snapshot
Dow 26469.89 -182.44 (-0.68%)
Nasdaq 10363.26 -98.24 (-0.94%)
SP 500 3215.63 -20.03 (-0.62%)
10-yr Note 0/32 0.582
NYSE Adv 992 Dec 1937 Vol 711.3 mln
Nasdaq Adv 868 Dec 2356 Vol 4.2 bln

Industry Watch
Strong: Consumer Discretionary, Communication Services
Weak: Information Technology, Health Care

Moving the Market

-- Stocks close lower to end the week

-- Intel (INTC) shares declined 16% after announcing delay in 7nm chip technology and issuing downside Q3 EPS guidance

-- U.S.-China tensions, delay in GOP coronavirus relief bill

WTI crude settles little changed
24-Jul-20 15:25 ET
Dow -193.52 at 26458.81, Nasdaq -102.91 at 10358.59, S&P -23.45 at 3212.21

[BRIEFING.COM] The S&P 500 is down 0.7% and is on pace to end the week lower by 0.4%.

One last look at the S&P 500 sectors shows consumer discretionary (+0.3%) as the only sector trading higher. Laggards remain information technology (-1.2%) and health care (-1.2%), but no other sector is down more than 1.0%.

WTI crude futures settled little changed at $41.08/bbl.