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Market Snapshot

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

Dow 35492.70 +560.54 (1.60%)
Nasdaq 15341.07 +360.14 (2.40%)
SP 500 4649.23 +81.21 (1.78%)
10-yr Note -5/32 1.484
NYSE Adv 2682 Dec 583 Vol 961.1 mln
Nasdaq Adv 3360 Dec 1144 Vol 4.5 bln

Industry Watch
Strong: Energy, Information Technology, Consumer Discretionary, Financials
Weak: Consumer Staples, Utilities

Moving the Market

-- Rebound-minded action permeates market

-- A belief that the market was oversold on a short-term basis and was due for a rebound

-- Nike (NKE) and Micron (MU) beat earnings expectations

-- S&P 500 reclaims 50-day moving average (4614)

Rebound bias permeates the market
21-Dec-21 16:20 ET
Dow +560.54 at 35492.70, Nasdaq +360.14 at 15341.07, S&P +81.21 at 4649.23

[BRIEFING.COM] The S&P 500 rallied 1.8% on Tuesday, bouncing back from a three-day skid amid a buy-the-dip mindset. The Dow Jones Industrial Average rose 1.6% while the Nasdaq Composite and Russell 2000 outperformed with 2.4% and 3.0% gains, respectively.

Nine of the 11 S&P 500 sectors closed higher, paced by the energy (+2.9%), information technology (+2.6%), consumer discretionary (+2.5%), and financials (+2.0%) sectors with 2-3% gains. The defensive-oriented utilities (-0.2%) and consumer staples (-0.1%) sectors were the exceptions.

There was a shift in sentiment, precipitated by a belief that the market had gotten oversold on a short-term basis and was due for a rebound. Conviction in buying efforts increased as the S&P 500 reclaimed its 50-day moving average (4614) after closing below the key technical level yesterday.

The mega-caps solidified the rally effort later in the day after a slow start to the session. The Vanguard Mega Cap Growth ETF (MGK 255.18, +5.77, +2.3%) advanced 2.3% after being up just 0.1% at its session low.

To be fair, there were some positive-sounding news in the mix. President Biden said the U.S. is "absolutely not" going back to March 2020 in terms of lockdowns and having to worry about serious infection. Separately, reports suggested that the door is still open for Senator Manchin (D-WV) to get on board with the Build Back Better Act.

Nike (NKE 166.63, +9.65, +6.2%) and Micron (MU 90.68, +8.65, +10.5%) supported their own causes with better-than-expected earnings reports, and the positive reactions carried over to the retail and semiconductor spaces. The SPDR S&P Retail ETF (XRT 87.77, +2.62) gained 3.1%. The Philadelphia Semiconductor Index gained 3.4%.

The rebound-minded action extended beyond equities. Briefly, Treasury yields settled higher in a curve-steepening trade, WTI crude futures rose 3.6%, or $2.45, to $71.11/bbl, copper futures rose 1.2% to $4.347/lb, and even cryptocurrencies saw some relief.

The 2-yr yield rose five basis points to 0.67%, and the 10-yr yield rose seven basis points to 1.49%. The U.S. Dollar Index decreased 0.1% to 96.49. The CBOE Volatility Index dropped 8.1% to 21.01, as hedging interest waned with the bullish price action in the major indices.

Reviewing Tuesday's economic data:

The Current Account Balance for the third quarter totaled $214.8 billion (Briefing.com consensus -$204.8 billion). The second quarter deficit was upwardly revised to $198.3 billion from $190.3 billion.

Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for December, Existing Home Sales for November, the third estimate for Q3 GDP, and the weekly MBA Mortgage Applications Index on Wednesday.

S&P 500 +23.8% YTD
Nasdaq Composite +19.0% YTD
Dow Jones Industrial Average +16.0% YTD
Russell 2000 +11.6% YTD

Crude futures rebound alongside equities
21-Dec-21 15:30 ET
Dow +541.27 at 35473.43, Nasdaq +321.68 at 15302.61, S&P +75.47 at 4643.49

[BRIEFING.COM] The S&P 500 is up 1.6% while the Russell 2000 is up 2.8%.

One last look at the sectors shows energy (+3.0%), information technology (+2.3%), and consumer discretionary (+2.2%) up more than 2.0%, while the utilities (-0.2%) and consumer staples (-0.1%) sectors remain in negative territory.

WTI crude futures settled higher by 3.6%, or $2.45, to $71.11/bbl amid the rebound-minded bias in the broader market.