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Market Snapshot



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



Dow 35312.47 -48.26 (-0.14%)
Nasdaq 15309.37 +50.15 (0.33%)
SP 500 4524.12 +1.44 (0.03%)
10-yr Note 0/32 1.307

NYSE Adv 2042 Dec 1216 Vol 831.6 mln
Nasdaq Adv 2546 Dec 1816 Vol 4.2 bln


Industry Watch
Strong: Utilities, Real Estate, Communication Services, Consumer Staples

Weak: Financials, Materials, Energy, Industrials


Moving the Market
-- Nasdaq ekes out record highs to kick off September

-- Pro-defensive bias while cyclical stocks lagged

-- The ISM Manufacturing Index for August beat expectations, but employment index within the report entered contraction territory





Nasdaq ekes out record highs to kick off September
01-Sep-21 16:15 ET

Dow -48.26 at 35312.47, Nasdaq +50.15 at 15309.37, S&P +1.44 at 4524.12
[BRIEFING.COM] The Nasdaq Composite (+0.3%) eked out fresh record highs on the first day of September, as new money continued to flow into the market's largest stocks amid softer economic data. The S&P 500 (unch) closed little changed after coming within one point of its all-time high (4537.36) with a 0.3% gain in the afternoon.

To its credit, the small-cap Russell 2000 (+0.6%) outperformed the Nasdaq, while the Dow Jones Industrial Average declined 0.1%.

Notwithstanding the relative strength in the small-caps, there was a pro-defensive bias: the S&P 500 real estate (+1.7%) and utilities (+1.3%) sectors advanced more than 1.0% while Apple (AAPL 152.51, +0.68, +0.5%), Alphabet (GOOG 2916.84, +7.60, +0.3%), and Facebook (FB 382.05, +2.67, +0.7%) set all-time highs.

Conversely, the cyclical energy (-1.5%), financials (-0.6%), industrials (-0.4%), and materials (-0.3%) sectors underperformed in negative territory. The latest data on the manufacturing sector and labor market were cited for the performance gap.

Specifically, the employment index of the August ISM Manufacturing report slipped into contraction territory with a reading of 49.0, the ADP Employment Change report for August missed expectations by a wide margin, and China's August Caixin Manufacturing PMI (49.2) also slipped into contraction territory.

Granted, the headline ISM Manufacturing PMI for August was better than expected at 59.9% (Briefing.com consensus 58.5%).

AbbVie (ABBV 112.26, -8.52, -7.1%), meanwhile, was a specific drag on the health care sector (unch) after the FDA added warning-label changes to the company's arthritis treatment, Rinvoq. ABBV shares dropped 7% on the news.

The Treasury market, though, remained subdued in a wait-and-see trade for the August Employment Situation Report on Friday, which is the report on the labor market that carries the most weight for the Fed and the broader market.

The 10-yr yield was unchanged at 1.30%, and the 2-yr yield increased one basis point to 0.21%. The U.S. Dollar Index decreased 0.1% to 92.52. WTI crude futures increased 0.2%, or $0.11, to $68.55/bbl amid an expected OPEC+ decision to keep production-increases steady at 400,000 bpd.

Reviewing Wednesday's economic data:

The August ISM Manufacturing Index checked in at 59.9% (Briefing.com consensus 58.5%), up from 59.5% in July. A number above 50.0% is indicative of expansion. August marked the 15th straight month of expansion for the manufacturing sector, and at a faster pace than what was seen in July.
The key takeaway from the report is the same as before. Manufacturers and suppliers continue to struggle to meet increasing demand levels due to a range of factors that includes record-long raw material lead times, shortages of basic materials, transportation difficulties, worker absenteeism, and difficulty filling positions.
Total construction spending increased 0.3% m/m in July (Briefing.com consensus +0.2%) following a downwardly revised flat reading (from +0.1%) for June. Total private construction rose 0.3% m/m while total public construction spending increased 0.7%. On a year-over-year basis, total construction spending was up 9.0%.
The key takeaway from the report is the ongoing strength in private residential construction spending, which is a byproduct of strong demand driven by a scarce supply of existing homes for sale.
The ADP Employment Change report estimated 374,000 jobs were added to private-sector payrolls in August, which was well below the Briefing.com consensus of 660,000. The increase in July was downwardly revised to 326,00 from 330,000.
Total construction spending increased 0.3% m/m in July (Briefing.com consensus +0.2%) on the heels of an unrevised 0.1% increase in June.
The final IHS Market Manufacturing PMI for August checked in at 61.1, down from 61.2 in the preliminary reading.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Trade Balance for July, Factory Orders for July, and the revised Productivity and Unit Labor Costs for the second quarter on Thursday.

S&P 500 +20.5% YTD
Nasdaq Composite +18.8% YTD
Russell 2000 +15.8% YTD
Dow Jones Industrial Average +15.4% YTD



Crude futures settle slightly higher
01-Sep-21 15:30 ET

Dow -38.65 at 35322.08, Nasdaq +71.14 at 15330.36, S&P +4.27 at 4526.95
[BRIEFING.COM] The S&P 500 is up 0.1% after coming within one point of its all-time high earlier today. The Russell 2000 outperforms with a 0.5% gain.

One last look at the S&P 500 sectors shows utilities (+1.4%) and real estate (+1.3%) continuing to lead with gains over 1.0%. Conversely, the energy (-1.5%), financials (-0.6%), industrials (-0.4%), and materials (-0.2%) sectors trade lower.

WTI crude futures settled higher by 0.2%, or $0.11, to $68.55/bbl. On a related note, OPEC+ agreed to stick to their schedule of increasing supply by 400,000 bpd.