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Stock Market Update

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

Market Snapshot
Dow 33821.30 -256.33 (-0.75%)
Nasdaq 13786.29 -128.50 (-0.92%)
SP 500 4134.94 -28.32 (-0.68%)
10-yr Note +1/32 1.588
NYSE Adv 863 Dec 2394 Vol 878.8 mln
Nasdaq Adv 990 Dec 3044 Vol 4.2 bln

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

Moving the Market

-- Market registers back-to-back losses, representing consolidation activity

-- Weakness in cyclical sectors; strength in defensive-oriented sectors

-- Better-than-expected earnings reports

Back-to-back losses
20-Apr-21 16:20 ET
Dow -256.33 at 33821.30, Nasdaq -128.50 at 13786.29, S&P -28.32 at 4134.94

[BRIEFING.COM] The S&P 500 declined 0.7% on Tuesday for its second straight decline, as it continued to consolidate its record-setting run. The Dow Jones Industrial Average (-0.8%) and Nasdaq Composite (-0.9%) performed similarly to the benchmark index, while the Russell 2000 struggled with a 2.0% decline.

Like yesterday, there was no specific selling catalyst, but the breadth and scope of the losses were greater today. Declining issues outpaced advancing issues by a 3:1 margin at the NYSE and Nasdaq. The cyclical energy (-2.7%), financials (-1.8%), and consumer discretionary (-1.2%) sectors underperformed with sharp losses.

Analyst commentary rehashed on how overstretched the S&P 500 had gotten, with roughly 95% of its components trading above their 200-day moving average, and how bullish investor sentiment had gotten over the past month. Despite the potential for further weakness, the market closed off session lows amid a late effort to buy the dip.

Throughout the day, some investors preferred to lean more defensively instead of de-risking. The defensive-oriented utilities (+1.3%), real estate (+1.1%), consumer staples (+0.6%), and health care (+0.4%) sectors finished in positive territory.

The consumer staples and health care sectors received earnings-driven support from Johnson & Johnson (JNJ 166.48, +3.79, +2.3%), Procter & Gamble (PG 137.75, +1.14, +0.8%), and Philip Morris International (PM 94.00, +2.33, +2.5%). JNJ also said it will resume its vaccine roll-out in Europe after the EMA supported its benefit-risk profile.

IBM (IBM 138.16, +5.04, +3.8%) and Travelers (TRV 155.73, +1.35, +0.9%) were other earnings-related gainers, even though TRV missed EPS estimates. United Airlines (UAL 50.30, -4.69, -8.5%) fell 8.5% after missing top and bottom-line estimates and possibly due to news that the U.S. State Department will increase its "Do Not Travel" advisory to roughly 80% of countries outside the U.S.

In other corporate news, Apple (AAPL 133.11, -1.73, -1.3%) introduced new iMacs, a new podcast subscription service, a Bluetooth tracking product, and a new Apple TV 4K. Microsoft (MSFT 258.26, -0.48, -0.2%) reportedly ended deal talks with Discord. Kansas City Southern (KSU 295.50, +39.10, +15.3%) received an 18% premium counteroffer from Canadian National Railway (CNI 110.15, -7.98, -6.8%).

U.S. Treasuries edged higher amid the negative bias in the broader equity market, pushing yields lower. The 2-yr yield decreased one basis point to 0.15%. The 10-yr yield decreased four basis points to 1.56%. The U.S. Dollar Index increased 0.2% to 91.24. WTI crude futures declined 1.2%, or $0.74, to $62.61/bbl.

Investors did not receive any economic data on Tuesday, and Wednesday's economic data will be limited to the weekly MBA Mortgage Applications Index and the weekly EIA crude inventory report.

Russell 2000 +10.8% YTD
Dow Jones Industrial Average +10.5% YTD
S&P 500 +10.1% YTD
Nasdaq Composite +7.0% YTD

Crude futures settle lower amid equity weakness
20-Apr-21 15:25 ET
Dow -292.36 at 33785.27, Nasdaq -152.11 at 13762.68, S&P -32.54 at 4130.72

[BRIEFING.COM] The S&P 500 is down 0.8% after retesting its session low about 25 minutes ago. The ability to hold the low has been seen as an encouraging short-term sign.

One last look at the S&P 500 sectors shows six of the 11 sectors trading lower by at least 1.0%, including a 2.7% decline in the energy sector. Four sectors trade higher, including the utilities (+1.3%) and real estate (+1.0%) sectors with gains of at least 1.0%.

WTI crude futures settled lower by 1.2%, or $0.74, to $62.61/bbl.