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Stocks close lower ahead of presidential debate
29-Sep-20 16:15 ET
Dow -131.40 at 27442.66, Nasdaq -32.28 at 11085.27, S&P -16.13 at 3335.47

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

[BRIEFING.COM] The S&P 500 declined 0.5% on Tuesday in a relatively lackluster session. The Nasdaq Composite (-0.3%), Dow Jones Industrial Average (-0.5%), and Russell 2000 (-0.4%) didn't stray too far away from the benchmark index.

The session was lackluster in the sense that there appeared to be a tacit agreement among participants to restrain conviction until tonight's presidential debate. Trading volume was lighter than usual. In another sense, today was a consolidation day following a two-day rebound in the market.

Sellers, meanwhile, made their presence known in the S&P 500 energy (-2.7%) and financials (-1.2%) sectors, more so the energy space given its outsized decline amid weaker oil prices ($39.20, -1.34, -3.3%). The communication services sector (+0.3%) was the only sector that closed higher, thanks to a 2% gain in Facebook (FB 261.79, +4.97, +1.9%).

The Philadelphia Semiconductor Index (+0.2%) also eked out a gain. Micron (MU 50.71, +0.99, +2.0%) rose 2% ahead of its earnings report after the close.

In other developments, the S&P 500's 50-day moving average (3355) provided technical resistance for the second straight day, the Conference Board's Consumer Confidence Index jumped to 101.8 in September (Briefing.com consensus 88.5) from an upwardly revised 86.3 (from 84.8) in August, and House Democrats introduced a $2.2 trillion stimulus bill.

While the $2.2 trillion price tag is still considered too high by Republicans, reports indicated that House Speaker Pelosi will continue talks with Treasury Secretary Mnuchin on Wednesday. With that said, the lack of a fiscal relief bill did not suppress consumer confidence this month due to an improving economy and lower coronavirus infection rates.

Elsewhere, defensive positions were taken in U.S. Treasuries, which pushed yields lower, and gold futures ($1903.20, +21.20, +1.1%). The 2-yr yield declined three basis points to 0.11%, and the 10-yr yield declined two basis points to 0.65%. The U.S. Dollar Index fell 0.4% to 93.91.

Reviewing Tuesday's economic data:

The Conference Board's Consumer Confidence Index jumped to 101.8 in September (Briefing.com consensus 88.5) from an upwardly revised 86.3 (from 84.8) in August. In February 2020, the index stood at 132.6.
The key takeaway from the report is the disclosure that consumers, bolstered by improved business and labor market conditions, expressed greater optimism about their short-term financial prospects, which could be a welcome support factor for consumer spending activity in the fourth quarter.
The S&P Case-Shiller Home Price Index increased 3.9% in July (Briefing.com consensus 3.9%) following a 3.5% increase in June.
The advance international trade in goods deficit totaled $82.9 bln in August following a $80.1 bln deficit in July. Advance wholesale inventories increased 0.5% in August following a 0.1% decline in July. Advance retail inventories increased 0.9% following a revised 1.2% increase in July (from +0.6%).

Looking ahead, investors will receive the ADP Employment Change Report for September, the Chicago PMI for September, the third estimate for Q2 GDP, Pending Home Sales for August, and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +23.6% YTD
S&P 500 +3.2% YTD
Dow Jones Industrial Average -3.8% YTD
Russell 2000 -9.8% YTD

Market Snapshot
Dow 27442.66 -131.40 (-0.48%)
Nasdaq 11085.27 -32.28 (-0.29%)
SP 500 3335.47 -16.13 (-0.48%)
10-yr Note +2/32 0.645
NYSE Adv 1105 Dec 1876 Vol 701.0 mln
Nasdaq Adv 1637 Dec 1764 Vol 3.3 bln

Industry Watch
Strong: Communication Services, Utilities
Weak: Energy, Financials, Industrials

Moving the Market

-- Stock market trades lower after rising sharply over past two sessions

-- Wait-and-see mindset ahead of tonight's presidential debate

-- Trading volume was lighter than usual

WTI crude falls back below $40/bbl
29-Sep-20 15:30 ET
Dow -69.29 at 27504.77, Nasdaq -22.87 at 11094.68, S&P -9.71 at 3341.89

[BRIEFING.COM] The S&P 500 continues to trade lower by 0.3% and has traded lower for most of the session.

One last look at the S&P 500 sectors shows energy down 2.5%, easily claiming today's laggard position over the financials sector (-0.8%). The utilities (+0.3%), communication services (+0.2%), and health care (+0.1%) sectors edge higher.

WTI crude futures settled back below $40/bbl, falling 3.3% (-$1.34) to $39.20/bbl.