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Market Snapshot

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

Dow 34607.72 -271.66 (-0.78%)
Nasdaq 15115.49 -132.76 (-0.87%)
SP 500 4458.58 -34.70 (-0.77%)
10-yr Note -2/32 1.328
NYSE Adv 1175 Dec 2013 Vol 776.0 bln
Nasdaq Adv 1440 Dec 2818 Vol 4.5 bln

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

Moving the Market

-- Major indices fade positive open and close at session lows with about 1% declines

-- Court rules against Apple (AAPL) on developer issue versus Epic Games

-- PPI data for August remained hot

Apple leads market lower on court ruling
10-Sep-21 16:20 ET
Dow -271.66 at 34607.72, Nasdaq -132.76 at 15115.49, S&P -34.70 at 4458.58

[BRIEFING.COM] The major indices lost about 1% on Friday, as the market faded a positive open and investors digested a mixed court ruling on Apple (AAPL 148.97, -5.10, -3.3%) versus Epic Games. The S&P 500 (-0.8%), Dow Jones Industrial Average (-0.8%), Nasdaq Composite (-0.9%), and Russell 2000 (-1.0%) closed at session lows.

The early index gains ranged between 0.6-0.7% in a buy-the-dip effort, but that quickly unraveled on no specific news. Late in the morning, a court ruled that Apple must give developers the ability to create their own payment options. In Apple's favor, the judge said the company isn't an antitrust monopolist in the submarket for mobile gaming transactions.

Shares of Apple subsequently fell 3%, and shares of Alphabet (GOOG 2838.42, -59.85, -2.1%) fell in sympathy given it owns the Google Play store.

The information technology (-1.0%) and communication services (-0.9%) sectors, which are home to AAPL and GOOG, underperformed along with the utilities (-1.4%) and real estate (-1.2%) sectors. No sectors finished higher, as selling accelerated into the close on no news.

Presumably, the inability to hold onto rebound gains fueled concerns about further equity weakness with the loss in price momentum. The benchmark index extended its losing streak to five sessions. The CBOE Volatility Index (20.89, +2.09, +11.1%) jumped above 20.00.

Another hot Producer Price Index report didn't appear to affect stocks all that much, but the Treasury was under some selling pressure because of it. Briefly, producer prices for final demand were up 0.7% m/m in August (Briefing.com consensus 0.6%), leaving them up 8.3% yr/yr, while core prices were up 6.7% yr/yr.

The 10-yr yield increased four basis points to 1.34% while the 2-yr yield was unchanged at 0.21%. The U.S. Dollar Index increased 0.2% to 92.62. WTI crude futures rose 2.3%, or $1.57, to $69.75/bbl.

In earnings news, shares of Affirm (AFRM 123.70, +31.64, +34.4%) soared about 35% after the company reported better-than-expected results and issued upbeat revenue guidance. Kroger (KR 42.67, -3.46, -7.5%), on the other hand, dropped 7.5% as rising costs pressured margins.

Reviewing Friday's economic data:

The Producer Price Index for final demand increased 0.7% month-over-month in August (Briefing.com consensus 0.6%) after increasing 1.0% in July. The index for final demand, less foods and energy, increased 0.6% month-over-month (Briefing.com consensus 0.6%) after increasing 1.0% in July. On a year-over-year basis, the Producer Price Index for final demand was up 8.3% on an unadjusted basis, versus 7.8% in July. That has lifted the index past its record increase from last month. The index for final demand, less foods and energy, was up 6.7% versus 6.2% in July.
The key takeaway from the report is that while the month-over-month change slowed from increases seen in June and July, the year-over-year growth rate in PPI rose to a fresh record.
Wholesale inventories increased 0.6% m/m in July (Briefing.com consensus 0.5%) following a downwardly revised 0.6% increase (+1.1%) in June.

Looking ahead, investors will receive the Treasury Budget for August on Monday.

S&P 500 +18.7% YTD
Nasdaq Composite +17.3% YTD
Dow Jones Industrial Average +13.1% YTD
Russell 2000 +12.8% YTD

Crude futures settle close to $70 per barrel
10-Sep-21 15:30 ET
Dow -145.12 at 34734.26, Nasdaq -83.29 at 15164.96, S&P -18.69 at 4474.59

[BRIEFING.COM] The S&P 500 is trading at session lows with a 0.4% decline. The Russell 2000 is down 0.2%.

One last look at the sector performances shows health care (-0.7%), information technology (-0.7%), communication services (-0.7%), and utilities (-0.7%) each down 0.7%, while the materials (+0.4%) and energy (+0.2%) sectors trade modestly higher.

WTI crude futures settled higher by 2.3%, or $1.57, to $69.75/bbl.