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Market Snapshot

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

Dow 35100.93 -268.16 (-0.76%)
Nasdaq 15374.32 +10.81 (0.07%)
SP 500 4520.06 -15.37 (-0.34%)
10-yr Note -26/32 1.371
NYSE Adv 1000 Dec 2257 Vol 811.7 mln
Nasdaq Adv 1677 Dec 2716 Vol 3.9 bln

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

Moving the Market

-- Nasdaq sets record high in mostly negative session

-- Mega-caps provide key support

-- Longer-dated Treasury yields rise

Nasdaq closes at record high as investors stay faithful to the mega-caps
07-Sep-21 16:15 ET
Dow -268.16 at 35100.93, Nasdaq +10.81 at 15374.32, S&P -15.37 at 4520.06

[BRIEFING.COM] The Nasdaq Composite (+0.1%) eked out intraday and closing record highs on Tuesday, while the S&P 500 (-0.3%), Dow Jones Industrial Average (-0.8%), and Russell 2000 (-0.7%) closed lower, as investors leaned defensively into the mega-cap stocks.

The broader market struggled to attract buying interest, as investors digested reduced Q4 and 2021 GDP forecasts out of Goldman Sachs, the expiration of enhanced unemployment benefits, analyst downgrades to three health care Dow components, and a sell-off in cryptocurrencies that reminded some people about reducing risk.

Declining issues outpaced advancing issues by a 2:1 margin at the NYSE, the Invesco S&P 500 Equal Weight ETF (RSP 155.57, -1.31, -0.8%) declined 0.8%, and eight of the 11 S&P 500 sectors closed in negative territory. The industrials (-1.8%), utilities (-1.4%), and real estate (-1.1%) sectors lost more than 1.0%.

In the health care space, Johnson & Johnson (JNJ 172.32, -2.72, -1.6%), Merck (MRK 75.98, -1.28, -1.7%), and Amgen (AMGN 221.34, -5.03, -2.2%) were downgraded to Equal-Weight from Overweight at Morgan Stanley.

The decline in the S&P 500, however, was mitigated by the continued strength in the mega-caps. Apple (AAPL 156.69, +2.39, +1.6%) and Netflix (NFLX 606.71, +16.18, +2.7%) both set record highs, with NFLX receiving a Street-high, price-target increase ($780) at Atlantic Equities. The Vanguard Mega Cap Growth ETF (MGK 250.40, +0.72) advanced 0.3%.

The mega-caps lifted the S&P 500 information technology (+0.03%), consumer discretionary (+0.4%), and communication services (+0.5%) sectors into positive territory.

Interestingly, better-than-expected import and export data out of China for August was drowned out by the negative-sounding headlines and negative price action. Prices for oil ($68.40/bbl, -0.84, -1.2%) and copper ($4.28, -0.06, -1.3%) both declined more than 1.0%.

Longer-dated Treasury yields did rise, but the advance was attributed to speculation that the European Central Bank could announce a reduction to its asset purchases on Thursday when it concludes its policy meeting.

The 10-yr yield increased five basis points to 1.37% while the 2-yr yield increased one basis point to 0.21%. The U.S. Dollar Index advanced 0.6% to 92.55, which was another example of the defensive mindset in the market.

Investors did not receive any economic data on Tuesday. Looking ahead, investors will receive Consumer Credit for July, the Fed's Beige Book for September, the JOLTs report for July, and the weekly MBA Mortgage Applications Index on Wednesday.

S&P 500 +20.3% YTD
Nasdaq Composite +19.3% YTD
Russell 2000 +15.2% YTD
Dow Jones Industrial Average +14.7% YTD

Crude futures settle lower
07-Sep-21 15:25 ET
Dow -236.32 at 35132.77, Nasdaq +24.03 at 15387.54, S&P -10.78 at 4524.65

[BRIEFING.COM] The S&P 500 is down 0.2% while the Nasdaq (+0.2%) is on pace to close at a record high.

One last look at the sectors shows consumer discretionary (+0.6%), communication services (+0.5%), and information technology (+0.1%) still trading higher, while industrials (-1.5%), real estate (-1.2%), and utilities (-1.1%) are down more than 1.0%.

WTI crude futures settled lower by 1.2%, or $0.84, to $68.40/bbl amid lingering demand concerns.