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Stocks falter amid disappointing stimulus update
19-Oct-20 16:20 ET
Dow -410.89 at 28195.36, Nasdaq -192.67 at 11478.81, S&P -56.89 at 3426.92

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

[BRIEFING.COM] The S&P 500 fell 1.6% on Monday, as risk sentiment was pressured by headlines indicating a stimulus deal doesn't appear imminent. The Nasdaq Composite fell 1.7%, the Dow Jones Industrial Average fell 1.4%, and the Russell 2000 fell 1.2%.

The day did start on a positive note before the major indices quickly embarked on a steady decline on no specific news. In the afternoon, the stimulus news appeared to have an algorithmic effect on the market considering House Speaker Pelosi gave the White House until Tuesday to reach a deal in order to get it done before the election.

The news wasn't necessarily surprising, as both sides had been divided on key issues for some time, but the update combined with the negative price action beforehand kept buyers sidelined. Every sector in the S&P 500 closed lower with losses ranging from 0.9% (utilities) to 2.1% (energy). The information technology sector fell 1.9%.

Moreover, today's slate of positive-sounding news was largely brushed aside. One exception was the airline stocks did rise on news that daily airline passenger levels reached one million for the first time since March. The U.S. Global Jets ETF (JETS 17.68, +0.19, +1.1%) increased 1%.

Other encouraging news included the NAHB Housing Market Index increasing to a new all-time high of 85 in October (Briefing.com consensus 83), China reporting hopeful economic data, and commentary that AstraZeneca's (AZN 52.44, -0.59, -1.1%) vaccine candidate could be available soon after Christmas.

In M&A activity, Intel (INTC 54.58, +0.42, +0.8%) was reported to be nearing a $10 billion agreement to sell its NAND memory unit to SK Hynix (HXSCL), and Concho Resources (CXO 27.26, -1.34, -2.8%) confirmed it will be acquired by ConocoPhillips (COP 32.70, -1.07, -3.2%) in an all-stock transaction valued at $9.7 billion.

Longer-dated Treasuries faced selling pressure despite the weakness in equities, which was reflective of cash-raising efforts. The 2-yr yield finished flat at 0.15%, while the 10-yr yield increased two basis points to 0.76%. The U.S. Dollar Index declined 0.3% to 93.44. WTI crude futures finished little changed at $40.84/bbl.

Looking ahead, the Housing Starts and Building Permits report for September is scheduled to be released on Tuesday.

Nasdaq Composite +27.9% YTD
S&P 500 +6.1% YTD
Dow Jones Industrial Average -1.2% YTD
Russell 2000 -3.3% YTD

Market Snapshot
Dow 28195.36 -410.89 (-1.44%)
Nasdaq 11478.81 -192.67 (-1.65%)
SP 500 3426.92 -56.89 (-1.63%)
10-yr Note -2/32 0.766
NYSE Adv 814 Dec 2174 Vol 834.0 mln
Nasdaq Adv 1089 Dec 2321 Vol 3.4 bln

Industry Watch
Strong: Utilities
Weak: Energy, Information Technology, Communication Services

Moving the Market

-- Stocks retreat in broad-based decline

-- Reports indicated that a stimulus deal did not appear imminent

WTI crude futures settle little changed while equities extend weakness
19-Oct-20 15:25 ET
Dow -448.86 at 28157.39, Nasdaq -208.67 at 11462.81, S&P -61.15 at 3422.66

[BRIEFING.COM] The S&P 500 is down 1.7% to trade at session lows as sellers retain control of the market. The Russell 2000 is down 1.3%.

One last look at the S&P 500 sectors shows information technology (-1.9%), health care (-1.9%), and communication services (-2.1%) leading the retreat with 2% declines. Apple (AAPL 116.29, -2.74, -2.3%) is exerting influential pressure on the major indices after holding up well earlier in the session.

WTI crude futures settled little changed at $40.84/bbl. It was a relatively uneventful day for crude prices.