Sector Investing

[ReturntoSender]

Stock Market Update

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

Market Snapshot
Dow 34077.63 -123.04 (-0.36%)
Nasdaq 13914.79 -137.58 (-0.98%)
SP 500 4163.26 -22.21 (-0.53%)
10-yr Note -2/32 1.608
NYSE Adv 1086 Dec 2145 Vol 856.2 mln
Nasdaq Adv 1202 Dec 2886 Vol 4.3 bln

Industry Watch
Strong: Real Estate
Weak: Consumer Discretionary, Information Technology

Moving the Market

-- Stocks take a breather after recent record-setting run

-- Losses were relatively broad-based with growth stocks underperforming

Red day, but it wasn't so bad
19-Apr-21 16:20 ET
Dow -123.04 at 34077.63, Nasdaq -137.58 at 13914.79, S&P -22.21 at 4163.26

[BRIEFING.COM] The S&P 500 declined 0.5% on Monday, putting a pause on the market's record-setting run. The Dow Jones Industrial Average (-0.4%) joined the benchmark index with a modest decline, while the Nasdaq Composite (-1.0%) and Russell 2000 (-1.4%) fell by at least 1.0%.

Losses were spread across ten of the 11 S&P 500 sectors, declining issues easily outpaced advancing issues at the NYSE and Nasdaq, and growth stocks underperformed value stocks. The latter was evident in the sharp declines in the Philadelphia Semiconductor Index (-2.5%) and ARK Innovation ETF (ARKK 120.44, -3.94, -3.2%).

The consumer discretionary sector (-1.1%) was the only S&P 500 sector that fell more than 1.0%, though. On the upside, Apple (AAPL 134.84, +0.68, +0.5%) provided support ahead of its product event on Tuesday, as did the real estate sector (+0.3%) with a small gain.

There was no specific catalyst for the negative bias, but there was an acknowledgement that the market was overheated and primed for some selling given the S&P 500 was up 7.0% over the prior four weeks. This view, in retrospect, might have been augmented by the weekend slide in bitcoin, which had similarly been on a tear.

Tesla (TSLA 714.63, -25.15, -3.4%) and Peloton (PTON 107.75, -8.46, -7.3%) were a pair of notable laggards following some negative press.

Specifically, a Tesla vehicle crashed, killing its two passengers, after the car was allegedly on auto-pilot mode with no driver. In Peloton's case, the Consumer Product Safety Commission issued a warning about the company's Tread+ product due to several incidents involving children, including one death.

In more positive corporate news, Q1 earnings reports continued to beat elevated expectations. Dow component Coca-Cola (KO 54.00, +0.32, +0.6%) warrants a mention, but it was Harley-Davidson (HOG 44.29, +3.91, +9.7%) that really pleased investors based off its 9.7% gain.

Elsewhere, the 10-yr yield increased three basis points to 1.60%, which some blamed for the relative weakness in the Nasdaq and growth stocks. The 2-yr yield was unchanged at 0.16%. The U.S. Dollar Index fell 0.5% to 91.10. WTI crude futures increased 0.3%, or $0.19, to $63.35/bbl.

Investors did not receive any economic data and will not receive any on Tuesday, either.

Russell 2000 +13.0% YTD
Dow Jones Industrial Average +11.3% YTD
S&P 500 +10.8% YTD
Nasdaq Composite +8.0% YTD

WTI crude futures settle in the green
19-Apr-21 15:30 ET
Dow -166.86 at 34033.81, Nasdaq -165.65 at 13886.72, S&P -29.37 at 4156.10

[BRIEFING.COM] The S&P 500 continues to struggle with a 0.7% decline amid a lack of a buy-the-dip mindset.

One last look at the S&P 500 sectors shows information technology (-1.1%) and consumer discretionary (-1.2%) leading the decline with losses over 1.0%, while the real estate sector (+0.03%) is the only sector clinging onto a gain.

WTI crude futures settled higher by 0.3%, or $0.19, to $63.35/bbl. On a related note, a report from CNBC indicated that Fundstrat's Tom Lee said he thinks the Energy Select Sector SPDR Fund (XLE 48.17, -0.23, -0.5%) could have another 45% upside if oil hits $80.00 per barrel.