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Stocks take a breather to end a record-setting week
18-Dec-20 16:20 ET
Dow -124.32 at 30178.99, Nasdaq -9.11 at 12755.55, S&P -13.07 at 3709.42

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

[BRIEFING.COM] The S&P 500 declined 0.4% on Friday, as the market took a breather after each of the major indices started the session at fresh record highs. The Dow Jones Industrial Average (-0.4%) and Russell 2000 (-0.4%) also declined 0.4%, while the Nasdaq Composite declined 0.1%,

At its low, the S&P 500 was down 1.0% amid a steady retreat throughout the day, until a wave of buyers before the close helped pare losses. The real estate (-1.8%) and energy (-1.7%) sectors still fell more than 1.5%, while the materials (+0.5%), consumer staples (+0.2%), industrials (+0.03%), and health care (+0.02%) sectors emerged into the green.

Some attributed negative-sounding stimulus headlines that highlighted continued disagreements for the lack of buying conviction. The last-minute bounce, however, came amid news that Senate Majority Leader McConnell was gauging support for a two-day continuing resolution to avoid a government shutdown and extend negotiations.

Price action might have also been influenced by market participants anticipating the flurry of activity after the close: quadruple-witching options expiration, quarterly rebalancing of S&P 500, annual reconstitution of the Nasdaq 100, Tesla's (TSLA 695.00, +39.10, +6.0%) inclusion into the S&P 500, and Nike's (NKE 137.28, -3.22, -2.3%) earnings report.

Intel (INTC 47.46, -3.19, -6.3%) shares, meanwhile, accelerated losses into the close on reports that Microsoft (MSFT 218.59, -0.83, -0.4%) will design its own chips for its Surface PC.

Separately, shares of FedEx (FDX 275.57, -16.69, -5.7%) and Moderna (MRNA 140.23, -3.77, -2.6%) struggled with the broad market despite some encouraging news. Specifically, FedEx beat top and bottom-line estimates, while the FDA advisory panel recommended in unanimous vote that Moderna's Covid vaccine should be authorized for emergency use.

U.S. Treasuries finished the session mixed in a quiet session for bonds. The 2-yr yield decreased two basis points to 0.11%, while the 10-yr yield increased two basis points to 0.95%. The U.S. Dollar Index increased 0.2% to 90.01. WTI crude futures rose 1.5%, or $0.71, to $49.04/bbl.

Reviewing Friday's economic data:

The Conference Board's Leading Economic Index increased 0.6% m/m in November (Briefing.com consensus 0.4%), marking the seventh straight month of positive readings. The index for October was revised to 0.8% from 0.7%.
The key takeaway from the report is the ongoing deceleration since May in the pace of growth for the leading indicators, which, according to the Conference Board, suggests a significant moderation in growth as the U.S. economy moves into 2021.
The current account deficit for the third quarter totaled $178.5 billion (Briefing.com consensus -$190.0 billion). The second quarter deficit was revised to $161.4 billion from $170.5 billion.

Investors will not receive any notable economic data on Monday.

Nasdaq Composite +42.2% YTD
Russell 2000 +18.1% YTD
S&P 500 +14.8% YTD
Dow Jones Industrial Average +5.8% YTD

Market Snapshot
Dow 30178.99 -124.32 (-0.41%)
Nasdaq 12755.55 -9.11 (-0.07%)
SP 500 3709.42 -13.07 (-0.35%)
10-yr Note -1/32 0.950
NYSE Adv 1339 Dec 1745 Vol 3.1 bln
Nasdaq Adv 1631 Dec 2003 Vol 7.0 bln

Industry Watch
Strong: Consumer Staples, Materials, Industrials, Health Care
Weak: Real Estate, Energy, Utilities

Moving the Market

-- Market takes a breather at end of record-setting week

-- Stimulus headline volatility

-- Quarterly rebalancing of S&P 500, annual reconstitution of the Nasdaq 100, Tesla (TSLA) inclusion into S&P 500 after the close, quadruple-witching options expiration

Crude futures settle higher but energy stocks fall
18-Dec-20 15:25 ET
Dow -258.00 at 30045.31, Nasdaq -90.10 at 12674.56, S&P -35.01 at 3687.48

[BRIEFING.COM] The S&P 500 is trading at fresh session lows with a 0.9% decline in a continuation of the day's downwards trend.

One last look at the sector performances shows energy (-2.0%), real estate (-2.0%), and financials (-1.3%) leading the broader decline, while the materials sector (-0.2%) is down the least. The top-weighted information technology sector is down 0.9%.

WTI crude futures settled higher by 1.5%, or $0.71, to $49.04/bbl.