Sector Investing

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Market Snapshot
Dow 36338.30 -59.78 (-0.16%)
Nasdaq 15644.96 -96.59 (-0.61%)
SP 500 4766.18 -12.55 (-0.26%)
10-yr Note 0/32 1.514
NYSE Adv 1990 Dec 1333 Vol 702.5 mln
Nasdaq Adv 2141 Dec 2535 Vol 3.3 bln

Industry Watch
Strong: Consumer Staples, Materials, Industrials
Weak: Communication Services, Information Technology, Health Care

Moving the Market

-- Market slips into the close, led by the Nasdaq amid weakness in the mega-caps

-- Year-end rebalancing activity

-- Broader market held its ground

Mega-caps lead market lower to wrap up a record 2021
31-Dec-21 16:20 ET
Dow -59.78 at 36338.30, Nasdaq -96.59 at 15644.96, S&P -12.55 at 4766.18

[BRIEFING.COM] The major indices declined modestly on Friday amid some slippage into the close, but still wrapped up 2021 with double-digit percentage gains. The Nasdaq Composite fell 0.6% amid weakness in the mega-caps, while the S&P 500 (-0.3%), Dow Jones Industrial Average (-0.2%), and Russell 2000 (-0.2%) closed slightly lower.

There weren't any specific catalysts today, but the underperformance of the mega-caps suggested there was some year-end rebalancing activity in the mix. Some of that activity likely happened into the close, as the relatively weak finish coincided with an increase in trading volume.

Six of the 11 S&P 500 sectors closed higher while five closed lower. The consumer staples sector (+0.7%) was the only sector that gained more than 0.5%, while the communication services sector (-1.2%) declined more than 1.0%.

Illustrating the year-end activity, the Vanguard Mega Cap Growth ETF (MGK 260.76, -1.55) declined 0.6% today and ended the year with a 28.0% gain -- roughly equal to the 27.6% gain in the Invesco S&P 500 Equal Weight ETF (RSP 162.75, unch).

Pfizer (PFE 59.05, +0.65, +1.1%) outperformed amid news that its oral antiviral for COVID-19 was approved by UK regulators for people with mild-to-moderate disease and that Israel will offer a fourth coronavirus vaccine to nursing home residents.

The Dow Jones Transportation Average (+0.6%) was another an area of relative strength, particularly the non-airline components like Norfolk Southern (NSC 297.71, +2.98, +1.0%) and CSX (CSX 37.60, +0.28, +0.8%), which set record highs.

The Treasury market had an uneventful, abbreviated session. The 2-yr yield decreased one basis point to 0.73% (+61 bps in 2021), and the 10-yr yield was unchanged at 1.51% (+59 bps in 2021). The U.S. Dollar Index decreased 0.4% to 95.63. WTI crude futures fell 2.2%, or $1.70, to $75.15/bbl (+55.7% in 2021).

Investors did not receive any economic data on Friday. Looking ahead, investors will receive Construction Spending for November on Monday.

S&P 500 +26.9% YTD
Nasdaq Composite +21.4% YTD
Dow Jones Industrial Average +18.7% YTD
Russell 2000 +13.8% YTD

Crude futures end year at $75 per barrel
31-Dec-21 15:30 ET
Dow +66.70 at 36464.78, Nasdaq -37.27 at 15704.28, S&P +4.37 at 4783.10

[BRIEFING.COM] The S&P 500 is up 0.1% while the Dow (+0.2%) and Russell 2000 (+0.2%) retain a small advantage.

One last look at the sectors before the year ends shows real estate (+0.7%) and consumer staples (+0.7%) tied for the lead, while the communication services (-0.7%) and information technology (-0.1%) sectors trade lower.

WTI crude futures settled lower by 2.2%, or $1.70, to $75.15/bbl, ending the year with a 55.7% gain.