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Market Snapshot

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

Dow 36068.87 -162.79 (-0.45%)
Nasdaq 14942.83 +6.93 (0.05%)
SP 500 4670.29 -6.74 (-0.14%)
10-yr Note 0/32 1.772
NYSE Adv 1174 Dec 2051 Vol 1.0 bln
Nasdaq Adv 1565 Dec 2943 Vol 5.2 bln

Industry Watch
Strong: Health Care
Weak: Industrials, Materials, Consumer Discretionary

Moving the Market

-- Stocks extend last week's losses amid de-risking efforts, but currently trade off session lows

-- 10-yr yield touches 1.81% before retracing to 1.77%

-- Deteriorating technical posture

Nasdaq completes comeback after 10-yr yield calms down
10-Jan-22 16:15 ET
Dow -162.79 at 36068.87, Nasdaq +6.93 at 14942.83, S&P -6.74 at 4670.29

[BRIEFING.COM] The S&P 500 (-0.1%) declined for the fifth straight session on Monday, but it only lost 0.1% after being down 2.0% intraday. The Nasdaq Composite (+0.1%) eked out a gain after being down 2.7% intraday, while the Dow Jones Industrial Average (-0.5%) and Russell 2000 (-0.4%) also closed well off session lows.

The intraday weakness was attributed to persisting concerns about rising rates and the Fed's agenda for policy normalization. The 10-yr yield hit 1.81% intraday before ending the session at 1.77%, or one basis point above Friday's settlement. The 2-yr yield rose three basis points to 0.90%.

Investors started to buy the dip soon after it looked like the 10-yr yield peaked for the day, finding a good excuse to buy into an oversold condition. The Nasdaq, for instance, was down 8.2% in less than five sessions and had fallen below its 200-day moving average (14690).

The S&P 500 couldn't reclaim its 50-day moving average (4675), though, as eight of its 11 sectors still closed lower. The industrials (-1.2%) and materials (-1.0%) sectors declined at least 1.0%, while the health care sector advanced 1.0%.

Evidently, cyclical stocks were lumped into the selling activity today. Besides downside momentum, risk sentiment in the space was pressured by a report from the Washington Post indicating that Senator Manchin (D-WV) is no longer interested in passing any legislation resembling the Build Back Better Act.

In the health care space, Pfizer (PFE 56.24, +0.52, +0.9%) told CNBC that a COVID-19 vaccine for the Omicron variant will be ready in March, and Moderna (MRNA 233.70, +19.84, +9.3%) provided an upbeat sales forecast for COVID-19 vaccines in 2022.

Separately, shares of Take-Two Interactive (TTWO 142.99, -21.61, -13.1%) dropped 13% on concerns that it overpaid for Zynga (ZYNG 8.44, +2.44, +40.7%). The cash-and-stock transaction at $9.86 per Zynga share gave the company a total enterprise value of approximately $12.7 billion.

The U.S. Dollar Index increased 0.3% to 95.97. WTI crude futures declined 1.1%, or $0.83, to $78.11/bbl.

Monday's economic data was limited to Wholesale Inventories, which increased 1.4% m/m in November (Briefing.com consensus 1.2%) following a revised 2.5% increase (from 1.2%) in October. Looking ahead, investors will receive the NFIB Small Business Optimism Index for December on Tuesday.

Dow Jones Industrial Average -0.7% YTD
S&P 500 -2.0% YTD
Russell 2000 -3.3% YTD
Nasdaq Composite -4.5% YTD

Crude futures settle lower
10-Jan-22 15:30 ET
Dow -306.35 at 35925.31, Nasdaq -111.31 at 14824.59, S&P -33.48 at 4643.55

[BRIEFING.COM] The S&P 500 is down 0.7% as the market continues to recoup losses.

One last look at the sectors shows industrials (-1.5%), materials (-1.4%), and consumer discretionary (-1.5%) down more than 1.0%, while the health care sector (+0.7%) outperforms in positive territory.

WTI crude futures settled lower by 1.1%, or $0.83, to $78.11/bbl.