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Market Snapshot

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

Dow 34742.82 -34.94 (-0.10%)
Nasdaq 13401.89 -350.38 (-2.55%)
SP 500 4188.43 -44.17 (-1.04%)
10-yr Note -2/32 1.600
NYSE Adv 1071 Dec 2233 Vol 998.2 mln
Nasdaq Adv 1004 Dec 2991 Vol 4.7 bln

Industry Watch
Strong: Energy, Materials, Financials, Industrials, Consumer Staples, Utilities, Real Estate
Weak: Information Technology, Consumer Discretionary, Communication Services

Moving the Market

-- Negative momentum builds in the growth-stock space, takes steam off the cyclical trade

-- Dow trades at all-time highs, while Nasdaq retreats amid mega-cap weakness

Growth stocks bleed into the close
10-May-21 16:20 ET
Dow -34.94 at 34742.82, Nasdaq -350.38 at 13401.89, S&P -44.17 at 4188.43

[BRIEFING.COM] The S&P 500 fell 1.0% on Monday, as negative momentum accelerated in the heavily-weighted growth stocks with selling interest leaking into the broader market late in the day. The Nasdaq Composite (-2.6%) and Russell 2000 (-2.6%) both dropped 2.6%.

The Dow Jones Industrial Average was up as much as 0.9% intraday at all-time highs above the 35,000 level, but it retraced from that level and closed lower by 0.1%.

Growth stocks simply looked awful today on no specific macro catalyst, but some investors blamed the horrendous reaction to The Trade Desk's (TTD 489.60, -171.83, -26.0%) earnings report, Citigroup downgrading Alphabet (GOOG 2340.66, -57.03, -2.4%) and Facebook (FB 305.97, -13.11, -4.1%) to Neutral from Buy, and the early preference towards cyclical stocks as potential catalysts.

In addition, indiscernible efforts to buy the dip in growth stocks appeared to stoke concerns about further downside, and an intraday uptick in long-term interest rates added fuel to the fire. The Nasdaq Composite closed below its 50-day moving average (13,534) for the first time since the end of March. The 10-yr yield increased two basis points to 1.60%.

From a sector perspective, the S&P 500 information technology (-2.5%), communication services (-1.9%), and consumer discretionary (-2.0%) sectors took the brunt of the damage amid weakness in the mega-caps and semiconductor stocks. The Philadelphia Semiconductor Index dropped 4.7%.

Losses piled on in the afternoon, and the pronounced weakness in growth stocks took some steam out of the cyclical sectors. The materials (-0.4%) and energy (-0.1%) sectors, for example, closed lower after they were the top performers at the open, as copper and energy prices keyed off reopening optimism and the shutdown of the Colonial Pipeline over the weekend.

The defensive-oriented utilities (+1.0%), consumer staples (+0.8%), real estate (+0.4%), and health care (+0.1%) sectors finished as leaders in positive territory alongside the industrials sector (+0.1%).

Investors faded the commodity-related theme, as copper prices eventually settled down 0.3% to $4.72/lb after being up as much as 2.8% and RBOB gasoline futures settled fractionally lower (-0.02%) at $2.13/gallon after being up as much as 4.2%. WTI crude futures increased 0.1%, or $0.05, to $64.80/bbl.

The 2-yr yield increased one basis point to 0.15%. The U.S. Dollar Index was little changed at 90.22%.

Investors did not receive any economic data of note on Monday. The NFIB Small Business Optimism Index for April and the JOLTS - Job Openings report for March will be released on Tuesday.

Dow Jones Industrial Average +13.5% YTD
Russell 2000 +12.3% YTD
S&P 500 +11.5% YTD
Nasdaq Composite +4.0% YTD

WTI crude futures settle with marginal gain
10-May-21 15:30 ET
Dow +108.50 at 34886.26, Nasdaq -304.30 at 13447.97, S&P -27.94 at 4204.66

[BRIEFING.COM] The S&P 500 continues to trade lower by 0.7%, while the Russell 2000 is down 2.0%.

One last look at the sector performances shows information technology (-2.2%), consumer discretionary (-1.6%), and communication services (-1.8%) continuing to lead the retreat, while the consumer staples (+1.0%) and utilities (+1.4%) sectors are atop the standings in part due to their defensive-oriented characteristics.

WTI crude futures settled higher by 0.1%, or $0.05, to $64.80/bbl.