Sector Investing

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Market Snapshot

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

Dow 34932.16 -433.28 (-1.23%)
Nasdaq 14980.93 -188.74 (-1.24%)
SP 500 4568.02 -52.62 (-1.14%)
10-yr Note +3/32 1.380
NYSE Adv 636 Dec 2634 Vol 1.1 bln
Nasdaq Adv 1267 Dec 3258 Vol 4.4 bln

Industry Watch
Strong: Consumer Staples, Utilities
Weak: Financials, Materials, Consumer Discretionary, Industrials

Moving the Market

-- Sharp losses amid growth concerns, although market closes off intraday lows

-- Europe tightens economic restrictions, Senator Manchin (D-WV) rejects Build Back Better Act

-- S&P 500 closes below 50-day moving average (4608)

Major indices decline sharply but off lows
20-Dec-21 16:20 ET
Dow -433.28 at 34932.16, Nasdaq -188.74 at 14980.93, S&P -52.62 at 4568.02

[BRIEFING.COM] The S&P 500 fell 1.1% on Monday amid pestering growth concerns, although the benchmark index was down as much as 1.9% intraday. The Nasdaq Composite (-1.2%) and Dow Jones Industrial Average (-1.2%) both declined 1.2% while the Russell 2000 lagged with a 1.6% decline.

Growth concerns were driven by new COVID restrictions in Europe, word from Senator Manchin (D-WV) that he won't support the $1.75 trillion Build Back Better Act, and a view that the Fed could be tightening policy at an inopportune time next year.

Sellers maintained control of the market until shortly after the close of European markets (11:30 a.m. ET). Buyers stepped in, spying a good entry point with the S&P 500 trading below its 50-day moving average (4608) and down as much as 4.3% from its intraday high last Thursday.

The S&P 500 still closed below that key technical level, but two of its 11 sectors did sneak into positive territory, namely utilities (+0.1%) and consumer staples (+0.04%). The cyclical financials (-1.9%), materials (-1.8%), industrials (-1.7%), and consumer discretionary (-1.7%) sectors closed sharply lower.

Moderna (MRNA 276.38, -18.42, -6.3%) fumbled a 9% gain, and closed lower by 6%, even though the company announced encouraging preliminary data for its COVID-19 booster shots. Oracle (ORCL 91.64, -4.98, -5.2%) fell 5% on confirmation of its acquisition of Cerner (CERN 90.49, +0.72, +0.8%) for $95.00/share in cash, or approximately $28.3 billion in equity value.

Elsewhere, a steepened Treasury yield curve signaled a more constructive perspective. The 10-yr yield increased two basis points to 1.42% after trading at 1.35% overnight. The 2-yr yield decreased two basis points to 0.62% amid a view that the Fed could still lean cautiously next year given the economic uncertainty of the Omicron variant.

WTI crude futures fell 3% ($68.66/bbl, -2.27, -3.2%) on expectations for weaker demand amid tighter economic restrictions. The U.S. Dollar Index decreased 0.1% to 96.51. The CBOE Volatility Index closed higher by 6.0% at 22.87 after topping 27.00 intraday.

Monday's economic data was limited to the Conference Board's Leading Economic Index (LEI), which increased 1.1% in November (Briefing.com consensus 1.0%) following a 0.9% increase in October. Looking ahead, investors will receive the Currant Account Balance for the third quarter on Tuesday.

S&P 500 +21.6% YTD
Nasdaq Composite +16.2% YTD
Dow Jones Industrial Average +14.1% YTD
Russell 2000 +8.3% YTD

Crude futures settle sharply lower amid demand concerns
20-Dec-21 15:30 ET
Dow -505.17 at 34860.27, Nasdaq -189.24 at 14980.43, S&P -59.54 at 4561.10

[BRIEFING.COM] The S&P 500 continues to trade lower by 1.3% amid losses in all 11 sectors.

One last look at the sectors shows financials (-2.3%), materials (-2.0%), industrials (-1.8%), and consumer discretionary (-1.8%) underperforming with sharp losses while the consumer staples (-0.1%) and utilities (-0.2%) sectors are down just 0.1-0.2%.

WTI crude futures settled lower by 3.2%, or $2.27, to $68.66/bbl amid demand concerns attributed to new COVID restrictions in Europe.