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Market Snapshot

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

Dow 35031.07 -68.93 (-0.20%)
Nasdaq 15286.63 -87.69 (-0.57%)
SP 500 4514.07 -5.96 (-0.13%)
10-yr Note +23/32 1.355
NYSE Adv 1238 Dec 1992 Vol 810.0 mln
Nasdaq Adv 1390 Dec 2928 Vol 4.1 bln

Industry Watch
Strong: Utilities, Real Estate, Consumer Staples
Weak: Materials, Energy, Information Technology

Moving the Market

-- Risk sentiment pressured by negative-sounding headlines

-- Losses were kept in check as buyers eased their way back into the large-caps

-- Defensive-oriented sectors outperformed

Stock market closes off session lows
08-Sep-21 16:20 ET
Dow -68.93 at 35031.07, Nasdaq -87.69 at 15286.63, S&P -5.96 at 4514.07

[BRIEFING.COM] The major indices closed lower on Wednesday, as investors digested another negative-sounding news cycle. The S&P 500 (-0.1%) and Dow Jones Industrial Average (-0.2%) finished slightly lower, the Nasdaq Composite lost 0.6%, and the Russell 2000 struggled with a 1.1% decline.

Briefly, several companies provided cautious outlooks, Axios reported that Senator Manchin (D-WV) would only support $1.5 trillion for any human infrastructure plan, Treasury Secretary Yellen warned about the economic consequences if lawmakers don't resolve the debt-ceiling issue, and ECB policymaker Holzmann said the central bank could tighten policy sooner than expected.

Looking more closely at the corporate influence, the S&P 500 materials sector (-1.0%) was one of the weakest sectors after Sherwin-Williams (SHW 296.69, -6.15, -2.0%) lowered its Q3 sales guidance due to raw material issues. Homebuilding stocks underperformed after Pulte Group (PHM 49.53, -3.19, -6.1%) said supply chain issues have increased during the second half of the year.

Apple (AAPL 155.11, -1.58, -1.0%), however, was one of the more influential laggards amid profit-taking interest after a record-setting run. AAPL's 1% decline was felt in all three large-cap indices and the information technology sector (-0.4%). The Philadelphia Semiconductor Index (-1.2%) was another weak spot.

Despite all that, the S&P 500 was down just 0.6% at its session low, and buyers gradually eased their way back into the large-caps throughout the afternoon.

Five of the 11 S&P 500 sectors closed higher, with the utilities sector (+1.8%) rising nearly 2.0% as yesterday's defensive bias carried over to today. The consumer staples (+0.8%) and real estate (+0.6%) sectors followed suit with more modest gains.

In the same vein, longer-dated Treasuries saw increased demand amid the negative bias in the major indices and a decent $38 billion 10-yr note auction. The 10-yr yield decreased four basis points to 1.33%, while the 2-yr yield increased one basis point to 0.22%. The U.S. Dollar Index increased 0.2% to 92.71. WTI crude futures rose 1.4%, or $0.92, to $69.32/bbl.

Separately, the Fed's Beige Book indicated that economic growth downshifted slightly to a moderate pace in early July through August due to the Delta variant. Businesses in most Districts remained optimistic about near-term prospects, though. The report was a non-event for the market.

Reviewing Wednesday's economic data:

Consumer credit increased by $17.0 bln in July (Briefing.com consensus $28.0B) after increasing an upwardly revised $37.9 bln (from $37.6 bln) in June.
The key takeaway from the report is that the expansion in consumer credit in July was the sixth straight increase in total outstanding credit and it followed on the heels of the largest increase since December 2010 seen in June.
Job openings increased to a record-high of 10.934 million in July from a revised 10.185 million (from 10.073 million) in June.
The weekly MBA Mortgage Applications Index decreased 1.9% following a 2.4% decline in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report on Thursday.

S&P 500 +20.2% YTD
Nasdaq Composite +18.6% YTD
Russell 2000 +13.9% YTD
Dow Jones Industrial Average +14.5% YTD

Crude futures settle higher, but energy stocks lag
08-Sep-21 15:30 ET
Dow -74.06 at 35025.94, Nasdaq -94.88 at 15279.44, S&P -7.34 at 4512.69

[BRIEFING.COM] The S&P 500 is down 0.2% after being down as much as 0.6% earlier in the day.

One last look at the sector performances shows materials (-1.0%) and energy (-1.0%) underperforming with 1% declines, while the utilities sector (+1.9%) shines with a 2% gain. The top-weighted information technology sector is down 0.5%.

WTI crude futures settled higher by 1.4%, or $0.92, to $69.32/bbl.