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Market Snapshot

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

Dow 34323.05 +10.59 (0.03%)
Nasdaq 13738.02 +80.82 (0.59%)
SP 500 4195.99 +7.86 (0.19%)
10-yr Note -2/32 1.577
NYSE Adv 2228 Dec 1058 Vol 934.7 mln
Nasdaq Adv 3140 Dec 1107 Vol 4.2 bln

Industry Watch
Strong: Consumer Discretionary, Energy, Communication Services
Weak: Health Care, Consumer Staples, Information Technology

Moving the Market

-- Riskier stocks leave the blue-chips in the dust

-- Relative strength in the consumer discretionary and energy sectors

-- Resistance at the 4200 level for the S&P 500

Riskier stocks leave the blue-chips in the dust
26-May-21 16:15 ET
Dow +10.59 at 34323.05, Nasdaq +80.82 at 13738.02, S&P +7.86 at 4195.99

[BRIEFING.COM] The S&P 500 increased 0.2% on Wednesday in a lackluster session for the benchmark index. The Nasdaq Composite (+0.6%) fared slightly better, but it noticeably trailed the S&P Mid Cap 400 (+1.0%), the small-cap Russell 2000 (+2.0%), and the iShares Micro-Cap ETF (IWC 147.86, +3.99, +2.8%).

The blue-chip Dow Jones Industrial Average (+0.03%) closed relatively unchanged.

The divergence between blue-chips and riskier stocks wasn't catalyzed by anything specific, suggesting that the market remained in consolidation mode in which interest shifts from one group to another on any given day. In recent weeks, rotational activity has centered around growth versus value, except today.

There were, however, some factors that might have contributed to the muted interest in the S&P 500: missing leadership from its top-weighted technology sector (unch), resistance at the 4200 level, and a slight turnaround in the 10-yr yield, which settled one basis point higher at 1.57% after trading at 1.55% intraday.

The energy (+0.9%) and consumer discretionary (+0.9%) sectors were pockets of relative strength within the S&P 500. The health care (-0.6%) and consumer staples (-0.2%) sectors underperformed in negative territory.

Within the consumer discretionary sector, Amazon.com (AMZN 3265.16, +6.11, +0.2%) confirmed it will purchase Metro Goldwyn Mayer for $8.45 billion and that Andy Jassy will become CEO on July 5. There was also a report from Business Insider that suggested Amazon is discussing opening pharmacy retail locations using Whole Foods stores.

Retailers keyed off the positive earnings results and/or upbeat guidance from Dick's Sporting Goods (DKS 98.40, +14.23, +16.9%), Urban Outfitters (URBN 38.47, +3.51, +10.0%), and Abercrombie & Fitch (ANF 41.02, +2.97, +7.8%). The SPDR S&P Retail ETF (XRT 93.66, +2.63, +2.9%) rose 3%, further supported by a nice move in GameStop (GME 242.56, +33.13, +15.8%).

In other developments, Fed Vice Chair for Supervision Quarles (FOMC voter) said an uneven global recovery and the emergence of bottlenecks in some supply chains are two potential headwinds for the economy. Separately, CEOs from the leading financial institutions testified before the Senate Banking Committee regarding their pandemic-era policies.

The 2-yr yield was unchanged at 0.14%. The U.S. Dollar Index increased 0.5% to 90.04. WTI crude futures increased 0.2%, or $0.14, to $66.21/bbl.

Wednesday's economic data was limited to the weekly MBA Mortgage Applications Index, which decreased 4.2% following a 1.2% increase in the prior week. On Thursday, investors will receive Durable Goods Orders for April, the weekly Initial and Continuing Claims report, the second estimate for Q1 GDP, and Pending Home Sales for April.

Russell 2000 +13.9% YTD
Dow Jones Industrial Average +12.1% YTD
S&P 500 +11.7% YTD
Nasdaq Composite +6.6% YTD

Exxon confirms at least two new board members from proxy solicitor
26-May-21 15:30 ET
Dow +0.74 at 34313.20, Nasdaq +83.70 at 13740.90, S&P +6.74 at 4194.87

[BRIEFING.COM] The S&P 500 is up 0.2%, supported by relative strength in the consumer discretionary (+1.0%) and energy (+0.9%) sectors.

Within the energy sector, Exxon Mobil (XOM 58.89, +0.63, +1.1%) recently confirmed preliminary results from an election of Directors that the board will include two of Engine No. 1's nominees. Vote results for five nominees were too close to call and are still being counted.

WTI crude futures settled higher by 0.2%, or $0.14, to $66.21/bbl.