Early momentum fades in negative session
29-Dec-20 16:15 ET
Dow -68.30 at 30335.61, Nasdaq -49.20 at 12850.23, S&P -8.32 at 3727.04
[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.4%), and Dow Jones Industrial Average (-0.2%) opened Tuesday's session at fresh record highs in a momentum trade, but they ended the session with slight losses amid a general sense of buyer exhaustion. The Russell 2000 (-1.9%) succumbed to increased profit-taking interest with a 2% decline.
Interestingly, declining issues outpaced advancing issues by a 2:1 margin at the NYSE and a 5:2 margin at the Nasdaq, but relative strength in some of the mega-caps like Amazon (AMZN 3322.00, +28.04, +1.2%) limited the large-cap index declines. Sector losses weren't that big, either, with no S&P 500 sector closing lower by more than 0.7%.
The information technology sector (-0.5%) was an influential laggard amid a reversal in shares of Apple (AAPL 134.87, -1.82, -1.3%), which set an all-time high for the first time since Sept. 2 at the open. Intel (INTC 49.39, +2.32, +4.9%) was one of the few gainers in the sector after activist hedge fund Third Point urged the company to explore strategic alternatives.
The health care (+0.4%) and consumer discretionary (+0.2%) sectors finished in the green.
In the latest stimulus news, the House officially passed a bill to increase stimulus checks to $2000, but Senate Majority Leader McConnell said the Senate will begin the process to address the stimulus checks later this week. Mr. McConnell also said the Senate will address section 230 social media liability reform and election fraud.
Separately, Boeing's (BA 216.25, +0.16, +0.1%) 737 MAX was flown commercially for the first time since March 2019 via American Airlines (AAL 15.86, -0.20, -1.3%).
U.S. Treasuries finished little changed in a quiet trading session. The 2-yr yield increased one basis point to 0.13%, and the 10-yr yield was flat at 0.93%. The U.S. Dollar Index declined 0.4% to 90.00. WTI crude futures increased 0.7%, or $0.33, to $47.97/bbl.
Tuesday's economic data was limited to the S&P Case-Shiller Home Price Index, which increased 7.9% in October (Briefing.com consensus 6.9%) following a 6.6% increase in September.
Looking ahead, investors will receive the Chicago PMI for December, Pending Home Sales for November, and the Advance International Trade in Goods, Retail Inventories, and Wholesale Inventories reports for November on Wednesday.
Nasdaq Composite +43.2% YTD
Russell 2000 +17.4% YTD
S&P 500 +15.4% YTD
Dow Jones Industrial Average +6.3% YTD
Dow 30335.61 -68.30 (-0.22%)
Nasdaq 12850.23 -49.20 (-0.38%)
SP 500 3727.04 -8.32 (-0.22%)
10-yr Note -1/32 0.934
NYSE Adv 1080 Dec 2029 Vol 724.3 mln
Nasdaq Adv 1078 Dec 2692 Vol 4.6 bln
Strong: Health Care, Consumer Discretionary
Weak: Information Technology, Energy, Industrials, Real Estate
Moving the Market
-- Large-cap indices set new highs at open, but buyer exhaustion kicked in
-- Profit-taking interest in recent high-flyers like small-caps and momentum stocks; mega-caps limit index declines
-- Senate Majority Leader McConnell said the Senate will address stimulus checks this week
Crude futures settle in the green
29-Dec-20 15:30 ET
Dow -22.22 at 30381.69, Nasdaq -30.89 at 12868.54, S&P -1.90 at 3733.46
[BRIEFING.COM] The S&P 500 is now trading back near its flat line with the help from its health care (+0.6%), consumer discretionary (+0.4%), communication services (+0.1%), and utilities (+0.1%) sectors.
The industrials sector is the weakest link with a 0.6% decline, while the top-weighted information technology sector is down 0.3% amid relative weakness in Apple (AAPL 135.38, -1.30, -0.9%). Interestingly, Apple set its first all-time high since Sept. 2 at today's open.
WTI crude futures settled higher by 0.7%, or $0.33, to $47.97/bbl.