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Market Snapshot

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

Dow 35264.67 +162.82 (0.46%)
Nasdaq 14788.07 -72.09 (-0.49%)
SP 500 4436.75 +4.40 (0.10%)
10-yr Note -2/32 1.344
NYSE Adv 1760 Dec 1506 Vol 792.0 mln
Nasdaq Adv 2036 Dec 2260 Vol 3.9 bln

Industry Watch
Strong: Energy, Materials, Financials, Industrials
Weak: Information Technology, Health Care, Real Estate

Moving the Market

-- S&P 500 and Dow set intraday and closing record highs

-- Senate passes $1 trillion bipartisan infrastructure bill and votes to begin debate on the $3.5 trillion budget resolution plan

-- Value stocks outperformed at expense of the growth stocks

-- Treasury yields and oil prices increased

S&P 500 and Dow eke out record highs while Nasdaq slips
10-Aug-21 16:20 ET
Dow +162.82 at 35264.67, Nasdaq -72.09 at 14788.07, S&P +4.40 at 4436.75

[BRIEFING.COM] The S&P 500 (+0.1%) and Dow Jones Industrial Average (+0.5%) set intraday and closing record highs on Tuesday, as value/cyclical stocks outperformed at the expense of the growth stocks. The Russell 2000 increased 0.2%, while the Nasdaq Composite (-0.5%) was dragged lower by its technology components.

The major development today was the Senate passing the $1 trillion bipartisan infrastructure bill, as widely expected, and voting to begin debate on the $3.5 trillion budget resolution plan. As a reminder, House Speaker Pelosi said she won't bring the infrastructure bill to a vote unless the $3.5 trillion package is passed.

Prior to the decision late morning, there was already a pro-growth sentiment in the market: cyclical stocks were in the leadership positions, Treasury yields across the curve were trading modestly higher, and oil prices ($68.33/bbl, +1.78, +2.7%) were rebounding 3%.

There was little progress in the market for the rest of the session, as the growth stocks struggled amid the higher interest rates and rotational pressure.

The S&P 500 energy (+1.7%), materials (+1.5%), industrials (+1.0%), and financials (+1.0%) sectors finished with gains of at least 1.0%. Conversely, the information technology sector (-0.7%) -- the market's most heavily-weighted sector -- declined 0.7% and was joined by the real estate (-1.1%) and health care (-0.2%) sectors in the red.

Semiconductor stocks saw increased selling interest amid an industry report that indicated expectations for PC DRAM prices to decline by up to 5% qtr/qtr in the fourth quarter. The Philadelphia Semiconductor Index fell 1.2%.

Kansas City Southern (KSU 289.75, +20.15, +7.5%), meanwhile, was one of today's story stocks after Canadian Pacific (CP 72.21, -0.50, -0.7%) increased its bid to acquire KSU for $300 per share in cash and stock. KSU shares rose 7.5%.

Specifying the moves in the Treasury market, the 2-yr yield increased three basis points to 0.23%, and the 10-yr yield increased three basis points to 1.34%. The U.S. Dollar Index increased 0.1% to 93.07 and closed at its highest level since March.

Reviewing Tuesday's economic data:

Productivity was up a weaker than expected 2.3% in the second quarter (Briefing.com consensus 3.4%) and unit labor costs increased a lower than expected 1.0% (Briefing.com consensus 1.1%). That followed a downward revision to Q1 productivity to 4.3% (from 5.4%) and unit labor costs to -2.8% (from 1.7%).
The key takeaway from the report is the tame unit labor cost data. This is a number that Fed Chair Powell watches closely to help determine if rising wages are feeding into broader price inflation.
The NFIB Small Business Optimism Index for July decreased to 99.7 from 102.5 in June.

Looking ahead, investors will receive the Consumer Price Index for July, the Treasury Budget for July, and the weekly MBA Mortgage Applications Index on Wednesday.

S&P 500 +18.1% YTD
Dow Jones Industrial Average +15.2% YTD
Nasdaq Composite +14.7% YTD
Russell 2000 +13.4% YTD

Crude futures rebound 3%
10-Aug-21 15:30 ET
Dow +160.25 at 35262.10, Nasdaq -66.22 at 14793.94, S&P +4.84 at 4437.19

[BRIEFING.COM] The S&P 500 is up 0.1% and is trying to close at a record high.

One last look at the sector standings shows energy (+1.7%), materials (+1.6%), industrials (+1.0%), and financials (+1.0%) leading the market in gains. Conversely, the information technology (-0.7%), real estate (-0.9%), and health care (-0.2%) sectors underperform in the red.

WTI crude futures settled higher by 2.7%, or $1.78, to $68.33/bbl after entering the session with a 10% monthly decline.