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Modest gains to end the week
23-Oct-20 16:20 ET

Dow -28.09 at 28335.51, Nasdaq +42.28 at 11548.21, S&P +11.90 at 3465.39

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

[BRIEFING.COM] The S&P 500 increased 0.3% on Friday in a tight-ranged session that lacked conviction. The Russell 2000 gained 0.6%, and the Nasdaq Composite gained 0.4%. The Dow Jones Industrial Average, however, declined 0.1%.

The underperformance of the Dow was linked to weakness in Intel (INTC 48.20, -5.70, -10.6%) and American Express (AXP 100.99, -3.80, -3.6%) following their earnings reports. Intel warned about operating margin next quarter, and the 10.6% post-earnings decline pressured the top-weighted S&P 500 information technology sector (-0.1%).

The energy sector (-0.6%) was the only other sector that closed lower due to weakness in oil prices ($39.88/bbl, -0.77, -1.9%). A relatively strong finish in the market, meanwhile, was led by the communication services (+1.1%), consumer discretionary (+0.9%), and real estate (+0.7%) sectors.

The Dow Jones Transportation Average (+1.1%) was another area of relative strength amid solid gains in the airline stocks.

In stimulus news, Treasury Mnuchin said there were still significant differences despite meeting with House Speaker Pelosi numerous times this week. White House Chief of Staff Meadows, however, told reporters that he hopes to have a stimulus deal over the weekend.

Separately, Gilead Sciences (GILD 60.79, +0.12, +0.2%) received FDA approval for its remdesivir drug used to treat COVID-19. Shares spiked 5% on the news but ended the session with a 0.2% gain in a sell-the-news reaction.

U.S. Treasuries finished near their flat lines to reclaim early losses. The 2-yr yield increased one basis point to 0.16%, and the 10-yr yield declined one basis point to 0.84% after touching 0.87% at its high. The U.S. Dollar Index declined 0.2% to 92.72.

Reviewing today's economic data: the preliminary Markit Manufacturing PMI increased to 53.3 in October from 53.2 in September. The preliminary Markit Services PMI increased to 56.0 in October from 54.6 in September.

Looking ahead, investors will receive New Home Sales for September on Monday.

Nasdaq Composite +28.7% YTD
S&P 500 +7.3% YTD
Dow Jones Industrial Average -0.7% YTD
Russell 2000 -1.7% YTD


Market Snapshot
Dow 28335.51 -28.09 (-0.10%)
Nasdaq 11548.21 +42.28 (0.37%)
SP 500 3465.39 +11.90 (0.34%)
10-yr Note +2/32 0.840

NYSE Adv 1876 Dec 1097 Vol 721.9 mln
Nasdaq Adv 2113 Dec 1300 Vol 3.1 bln


Industry Watch
Strong: Communication Services, Consumer Discretionary, Real Estate

Weak: Information Technology, Energy


Moving the Market
-- Stock market closes higher in muted session

-- Intel (INTC) shares sold off following earnings report

-- Mixed messaging on stimulus prospects



WTI crude futures fall 2% and weigh on energy stocks
23-Oct-20 15:25 ET

Dow -50.52 at 28313.08, Nasdaq +13.44 at 11519.37, S&P +6.79 at 3460.28
[BRIEFING.COM] The S&P 500 is trading higher by 0.2% and is on pace to end the week with a modest decline. The index is down 0.7% this week, including today's gain.

One last look inside the S&P 500 shows communication services (+0.8%) being carried into the top spot amid gains in Alphabet (GOOG 1634.62, +18.93, +1.2%) and Facebook (FB 283.23, +5.12, +1.9%). The energy sector (-0.9%) remains at the bottom amid a decline in oil prices.

WTI crude futures settled lower by 1.9%, or $0.77, to $39.88/bbl. For the week, crude prices increased just 0.5%.