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Market Snapshot

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

Dow 34207.84 +123.69 (0.36%)
Nasdaq 13471.02 -64.75 (-0.48%)
SP 500 4155.86 -3.26 (-0.08%)
10-yr Note +1/32 1.618
NYSE Adv 1920 Dec 1328 Vol 965.5 mln
Nasdaq Adv 2355 Dec 1700 Vol 3.7 bln

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

Moving the Market

-- Growth stocks faded early gains amid another wave of selling in cryptocurrencies

-- Value/cyclical stocks outperformed in positive territory

-- Consolidation activity persisted

Value outpaces growth in mixed session
21-May-21 16:15 ET
Dow +123.69 at 34207.84, Nasdaq -64.75 at 13471.02, S&P -3.26 at 4155.86

[BRIEFING.COM] The S&P 500 (-0.1%) and Nasdaq Composite (-0.5%) closed slightly lower on Friday, fading a positive start as growth stocks succumbed to renewed selling interest. The Dow Jones Industrial Average (+0.4%) and Russell 2000 (+0.3%), however, closed in positive territory.

The session started in a broad-based advance led by the value/cyclical stocks, which were supported by preliminary data from the IHS that showed manufacturing and service-sector activity accelerate in May. The cyclical stocks entered the session as weekly laggards.

The growth stocks were up slightly, but they moved steadily lower in a trade that coincided with another wave of selling in cryptocurrencies, which appeared to undercut risk sentiment. Cryptocurrencies were hit by reports that China intends to crack down on bitcoin mining and trading.

From a sector perspective, the financials (+0.9%), industrials (+0.4%), materials (+0.3%), and energy (+0.2%) sectors were among the top performers, although they closed off session highs. The information technology (-0.5%), consumer discretionary (-0.6%), and communication services (-0.3%) sectors -- where the mega-cap growth stocks reside -- underperformed.

Deere (DE 359.75, +4.53, +1.3%) was further aided by a better-than-expected earnings report and upbeat guidance. Applied Materials (AMAT 128.66, -1.65, -1.3%) also exceeded quarterly expectations and issued upside guidance, but AMAT shares closed lower alongside other growth stocks. NVIDIA (NVDA 599.67, +15.07) rose 2.6% after announcing a 4:1 stock split.

Separately, the White House lowered the price tag of its infrastructure bill to $1.7 trillion from $2.2 trillion, but Senate Republicans reportedly did not see the revised bill as a major improvement. The Biden administration was able to lower the price tag by moving some spending to other bills and by reducing spending on broadband.

U.S. Treasuries finished little changed in a quiet trading session. The 2-yr yield was flat at 0.15%, and the 10-yr yield was flat at 1.63%. The U.S. Dollar Index increased 0.2% to 89.99. WTI crude futures rose 2.7%, or $1.69, to $63.64/bbl.

Total trading volume at the Nasdaq was lighter than usual at approximately 3.7 billion shares exchanged.

Reviewing Friday's economic data:

Existing home sales decreased 2.7% m/m in April to a seasonally adjusted annual rate of 5.85 million (Briefing.com consensus 6.09 million) from an unrevised 6.01 million in March. Total sales in April were up 33.9% from a year ago when they were severely depressed in the early stages of the pandemic. In the January-April period, they were up 20.0% year-over-year.
The key takeaway from the report is that the supply of existing homes for sale remains near all-time low levels. That is driving up the pace of price increases well beyond the pace of income gains, which is going to create affordability pressures for prospective buyers, particularly first-time buyers.
The preliminary IHS Markit Manufacturing for May increased to 61.5 from 60.5 in April. The preliminary IHS Markit Services PMI for May increased to 70.1 from 64.7 in April.

Looking ahead, investors will not receive any notable economic data on Monday.

Russell 2000 +12.2% YTD
Dow Jones Industrial Average +11.8% YTD
S&P 500 +10.6% YTD
Nasdaq Composite +4.5% YTD

Crude futures settle higher, supporting energy stocks
21-May-21 15:30 ET
Dow +206.55 at 34290.70, Nasdaq -21.62 at 13514.15, S&P +8.26 at 4167.38

[BRIEFING.COM] The S&P 500 is up 0.2% and is on pace to end the week with a fractional decline.

One last update on the sectors shows energy (+1.0%), and financials (+1.1%) leading the advance with a 1% gain. while the information technology (-0.2%), consumer discretionary (-0.3%), and communication services (-0.1%) sectors are the only sectors trading lower right now.

WTI crude futures settled higher by 2.7%, or $1.69, to $63.64/bbl.