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Market Snapshot

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

Dow 34814.13 +236.56 (0.68%)
Nasdaq 15161.53 +123.77 (0.82%)
SP 500 4480.88 +37.83 (0.85%)
10-yr Note -2/32 1.315
NYSE Adv 2244 Dec 981 Vol 962.5 mln
Nasdaq Adv 2726 Dec 1582 Vol 4.4 bln

Industry Watch
Strong: Energy, Financials, Industrials, Materials
Weak: Utilities

Moving the Market

-- Market rebounds modestly from recent losses

-- Value stocks had the performance edge over growth stocks

-- S&P 500 respects 50-day moving average (4432)

Market shows up with a good rebound
15-Sep-21 16:20 ET
Dow +236.56 at 34814.13, Nasdaq +123.77 at 15161.53, S&P +37.83 at 4480.88

[BRIEFING.COM] The stock market had a good day on Wednesday, rebounding modestly from recent losses. The S&P 500 (+0.9%), Nasdaq Composite (+0.8%), and Dow Jones Industrial Average (+0.7%) rose between 0.7-0.9% while the Russell 2000 gained 1.1%.

Value stocks were early leaders, as investors digested upwards momentum in energy prices; a huge upside surprise in the Empire State Manufacturing Survey for September, which checked in at 34.3 (Briefing.com consensus 18.6); and industrial production data for August that increased in-line with expectations.

The latter was well received because China reported industrial production data for August (along with retail sales and fixed asset investment data) that missed expectations. The gains broadened out to the mega-caps/growth stocks later in the day on no news, helping the S&P 500 distance itself from its 50-day moving average (4432).

Ten of the 11 S&P 500 sectors ended the session in positive territory, led by the cyclical energy (+3.8%), industrials (+1.1%), materials (+1.1%), and financials (+0.9%) sectors. The utilities sector (-0.2%) closed slightly lower.

Microsoft (MSFT 304.82, +5.03, +1.7%) was a positive force today after the company approved a new $60 billion share repurchase program and raised its dividend by 11%.

Highlighting the developments in the energy space, the EIA reported a larger-than-expected draw in weekly crude inventories (6.42 million), WTI crude futures settled above $72 per barrel ($72.52/bbl, +2.06, +2.9%), and JPMorgan downgraded Chevron (CVX 98.24, +2.04, +2.1%) to Neutral from Overweight with a $111 price target.

In other corporate news, Goldman Sachs (GS 401.95, -1.74, -0.4%) augmented its consumer business with an acquisition of GreenSky (GSKY 11.90, +4.13, +53.2%) for $2.24 billion, or $12.11/share, in stock. Wynn Resorts (WYNN 86.44, -4.81, -6.3%) fell 6% amid reports that China wants to tighten regulation on the gaming industry in Macao.

Longer-dated Treasury yields finished slightly higher, with selling interest picking up following the release of the industrial production report. The 10-yr yield settled higher by three basis points to 1.30% while the 2-yr yield remained unchanged at 0.21%. The U.S. Dollar Index decreased 0.2% to 92.48.

Reviewing Wednesday's economic data:

Total industrial production increased 0.4% in August (Briefing.com consensus 0.4%) following a downwardly revised 0.8% increase in July (from 0.9%). The capacity utilization rate increased to 76.4% (Briefing.com consensus 76.3%) from an upwardly revised 76.2% in July (from 76.1%).
The key takeaway from the report is that it showed industrial production finally eclipsed its pre-pandemic level; and it also showed industrial production was even stronger in August than meets the eye, registering a gain despite the impact of Hurricane Ida and ongoing semiconductor shortages.
The Empire State Manufacturing Survey increased to 34.3 in September (Briefing.com consensus 18.6) from 18.3 in August.
Import prices decreased 0.3% in August after increasing a revised 0.4% (from 0.3%) in July. Excluding oil, import prices decreased 0.1% after increasing a revised 0.1% (from 0.0%) in July.
Export prices rose 0.4% after increasing a revised 1.1% (from 1.3%) in July. Excluding agriculture, export prices rose 0.2% after increasing a revised 1.4% (from 1.6%) in July.
The weekly MBA Mortgage Applications Index increased 0.3% following a 1.9% decline in the prior week.

Looking ahead, investors will receive Retail Sales for August, the weekly Initial and Continuing Claims report, the Philadelphia Fed Index for September, and Business Inventories for July on Thursday.

S&P 500 +19.3% YTD
Nasdaq Composite +17.6% YTD
Dow Jones Industrial Average +13.8% YTD
Russell 2000 +13.1% YTD

Crude futures rise 3%
15-Sep-21 15:30 ET
Dow +250.62 at 34828.19, Nasdaq +125.71 at 15163.47, S&P +39.14 at 4482.19

[BRIEFING.COM] The S&P 500 is up 0.9% to trade at session highs in a relatively broad-based advance.

Ten of the 11 S&P 500 sectors are trading higher, none more so than the energy sector with a 3.8% gain amid higher energy prices. The financials (+1.1%) and industrials (+1.1%) sectors are still up more than 1.0%. The utilities sector (-0.1%) is the only sector trading lower.

WTI crude futures settled higher by 2.9%, or $2.06, to $72.52/bbl. On a related note, weekly crude oil inventories decreased by 6.42 mln barrels after decreasing by 1.53 mln barrels during the previous week.