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Market Snapshot

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

Dow 35650.95 -320.04 (-0.89%)
Nasdaq 15413.27 -217.32 (-1.39%)
SP 500 4668.97 -43.05 (-0.91%)
10-yr Note +27/32 1.423
NYSE Adv 1015 Dec 2284 Vol 1.0 bln
Nasdaq Adv 1262 Dec 3142 Vol 4.4 bln

Industry Watch
Strong: Real Estate, Utilities, Consumer Staples, Health Care
Weak: Energy, Financials, Consumer Discretionary, Information Technology

Moving the Market

-- Major indices struggle in defensive session

-- Omicron variant hits UK policy and sentiment

-- Hesitation on the part of buyers in front of the FOMC policy meeting this week

-- Cyclical stocks underperformed, but so did the growth stocks

Major indices struggle in defensive session
13-Dec-21 16:20 ET
Dow -320.04 at 35650.95, Nasdaq -217.32 at 15413.27, S&P -43.05 at 4668.97

[BRIEFING.COM] The S&P 500 fell 0.9% on Monday in a defensive session, as investors digested the latest Omicron news and waited for the Fed's policy decision this week. The Dow Jones Industrial Average also declined 0.9%, while the Nasdaq Composite (-1.4%) and Russell 2000 (-1.4%) both declined 1.4%.

Risk sentiment was pressured by lingering growth concerns after UK Prime Minister Johnson warned of an impending "tidal wave" of new coronavirus cases and the British government upped its COVID-19 alert level. Cyclical stocks, including travel names, were among the weakest performers today.

The cyclical S&P 500 energy (-2.8%), consumer discretionary (-2.4%), and financials (-1.2%) sectors underperformed alongside the information technology sector (-1.6%). Accordingly, investors leaned defensively into the real estate (+1.3%), utilities (+1.2%), consumer staples (+1.2%), and health care (+0.9%) sectors.

After a record-setting rally last week, it's also plausible that investors saw the news as a convenient excuse to take profits and withhold buying conviction until the FOMC concludes its policy meeting on Wednesday. That's loosely based on the underperformance of the tech sector and growth stocks.

Apple (AAPL 175.74, -3.71, -2.1%) nearly reached a $3.0 trillion market capitalization after JP Morgan raised its price target on AAPL to a Street-high of $210. The firm also reiterated the stock with an Overweight rating and a "top pick into 2022." AAPL shares closed lower alongside the other mega-caps, even though long-term interest rates declined in their favor.

The Vanguard Mega Cap Growth ETF (MGK 258.09, -3.65, -1.4%) fell 1.4%, which was twice the decline of the Invesco S&P 500 Equal Weight ETF (RSP 158.58, -1.16, -0.7%).

Specifying the moves in the Treasury market, the 10-yr yield declined seven basis points to 1.42% while the 2-yr yield declined two basis points to 0.64% -- flattening the curve and corroborating growth concerns. The U.S. Dollar Index rose 0.3% to 96.36. WTI crude futures decreased 0.6%, or $0.46, to $71.24/bbl.

Pfizer (PFE 55.22, +2.44, +4.6%) was an individual standout with a 4.6% gain after agreeing to acquire Arena Pharma (ARNA 90.08, +40.14, +80.4%) for $6.7 billion, or $100 per share, in cash. The deal represented a 100% premium over ARNA's closing price from last Friday.

Investors did not receive any economic data on Monday. Looking ahead, investors will receive the Producer Price Index for November and the NFIB Small Business Optimism Index for November on Tuesday.

S&P 500 +24.3% YTD
Nasdaq Composite +19.6% YTD
Dow Jones Industrial Average +16.5% YTD
Russell 2000 +10.4% YTD

Crude futures settle lower
13-Dec-21 15:30 ET
Dow -221.28 at 35749.71, Nasdaq -147.44 at 15483.15, S&P -28.24 at 4683.78

[BRIEFING.COM] The S&P 500 is down 0.6% amid losses in seven of its 11 sectors.

One last look at the S&P 500 sectors shows energy (-2.3%), consumer discretionary (-2.1%), information technology (-1.0%), and financials (-1.0%) leading the retreat with losses between 1-2%. The health care (+1.0%), consumer staples (+1.4%), utilities (+1.5%), and real estate (+1.4%) sectors are each up at least 1.0%.

WTI crude futures settled lower by 0.6%, or $0.46, to $71.24/bbl.