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Down day for large-caps after President Trump tests positive for coronavirus
02-Oct-20 16:15 ET
Dow -134.09 at 27672.81, Nasdaq -251.59 at 11074.94, S&P -32.38 at 3348.42

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

[BRIEFING.COM] The S&P 500 fell 1.0% on Friday, but it was down as much as 1.7% after President Trump said he tested positive for COVID-19. Stimulus optimism boosted many value/cyclical stocks, which partially offset weakness in the information technology sector (-2.6%).

The Nasdaq Composite underperformed with a 2.2% decline, clipped by steep losses in mega-caps like Apple (AAPL 113.02, -3.77, -3.2%) and Tesla (TSLA 415.09, -33.07, -7.4%). The Dow Jones Industrial Average declined 0.5%, while the Russell 2000 gained 0.5%.

Generally, the market was caught up in the uncertainty on what President Trump's diagnosis would mean for the economy and other political issues. House Speaker Pelosi said the situation changed the dynamic on fiscal relief, which some investors interpreted a motivating factor to get a deal done, especially after a relatively disappointing September employment report.

Cyclical sectors showed relative outperformance early in the day and later gained steam on hopeful-sounding stimulus commentary that suggested Ms. Pelosi and Treasury Secretary Mnuchin were making serious progress towards a deal. Talks could continue this weekend with differences still remaining.

The industrials (+1.1%), energy (+1.0%), materials (+0.8%), and financials (+0.7%) sectors represented the cyclical gains. The real estate sector (+1.6%) advanced the most, though. Conversely, the same enthusiasm didn't apply to the mega-caps and other technology stocks, which outperformed the previous day.

Touching on the jobs data, which was understandably drowned out in today's health concerns and stimulus news, the headline nonfarm payrolls figure was 661,000 (Briefing.com consensus 800,000). The unemployment rate declined to 7.9% (Briefing.com consensus 8.2%) from 8.4% in August, but the labor force participation rate fell to 61.4% from 61.7%.

Longer-dated Treasuries moved higher following the report but pulled back into negative territory during the day. The 2-yr yield was flat at 0.13%, and the 10-yr yield increased two basis points to 0.70% after touching 0.65% at its low. The U.S. Dollar Index increased 0.1% to 93.84.

In other interesting developments, the S&P 500 closed below its 50-day moving average (3362), and WTI crude futures dropped 4.3%, or $1.66, to $37.05/bbl -- but the weaker prices didn't drag on the energy stocks.

Reviewing Friday's economic data:

The September employment report was relatively disappointing. Granted the unemployment rate dropped to 7.9% from 8.4%, but the offset to that seemingly good news is that the labor force participation rate fell to 61.4% from 61.7%. September nonfarm payrolls increased by 661,000 (Briefing.com consensus 800,000).
The key takeaway from the report is that it will contribute to concerns that the labor market recovery process is becoming more arduous and that the risk of permanent job losses is increasing with the absence of a stimulus plan and lower aggregate demand at small businesses.
The final University of Michigan Index of Consumer Sentiment for September ticked up to 80.4 (Briefing.com consensus 79.0) from the preliminary reading of 78.9. The final reading for August was 74.1.
The key takeaway from the report is that the improvement was attributed largely to improved attitudes about the outlook for the economy among upper-income households.
Factory orders in August increased 0.7% m/m (Briefing.com consensus 1.2%) following an upwardly revised 6.5% increase (from 6.4%) in July.
The key takeaway from the report is the affirmation that business spending continued to increase in August, evidenced by a 1.9% increase in new orders for nondefense capital goods excluding aircraft, versus a 2.6% increase in July.

Looking ahead, investors will receive the ISM Non-Manufacturing Index for September on Monday.

Nasdaq Composite +23.4% YTD
S&P 500 +3.6% YTD
Dow Jones Industrial Average -3.0% YTD
Russell 2000 -7.7% YTD

Market Snapshot
Dow 27672.81 -134.09 (-0.48%)
Nasdaq 11074.94 -251.59 (-2.22%)
SP 500 3348.42 -32.38 (-0.96%)
10-yr Note -1/32 0.692
NYSE Adv 1866 Dec 1135 Vol 901.1 mln
Nasdaq Adv 1609 Dec 1675 Vol 3.7 bln

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

Moving the Market

-- Down day for large-caps after President Trump tests positive for COVID-19

-- Hopeful-sounding stimulus commentary boosts value/cyclical stocks

-- Pronounced weakness in the information technology sector

-- September nonfarm payrolls increased by 661,000 (Briefing.com consensus 800,000), unemployment rate was 7.9% (Briefing.com consensus 8.2%)

WTI crude drops 4%, but energy stocks still outperforming
02-Oct-20 15:30 ET
Dow -42.91 at 27763.99, Nasdaq -213.68 at 11112.85, S&P -20.71 at 3360.09

[BRIEFING.COM] The S&P 500 continues to trade lower by 0.6% in a mixed trading session. Advancing issues outpace declining issues at the NYSE but not in the Nasdaq.

One last look at the S&P 500 sectors shows the top-weighted information technology down 2.2%, which is weighing heavily on the performance of the benchmark index. Conversely, the energy (+1.4%), materials (+1.4%), real estate (+1.6%), and utilities (+1.4%) sectors are up the most.

WTI crude futures settled sharply lower by 4.3%, or $1.66, to $37.05/bbl.