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Market Snapshot

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

Dow 34079.18 -232.85 (-0.68%)
Nasdaq 13548.06 -168.65 (-1.23%)
SP 500 4348.87 -31.39 (-0.72%)
10-yr Note +3/32 1.928
NYSE Adv 1225 Dec 1978 Vol 1.1 bln
Nasdaq Adv 1492 Dec 2796 Vol 4.4 bln

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

Moving the Market

-- Geopolitical uncertainty heading into the long weekend

-- Disappointing growth-stock earnings reactions (again)

-- Fed officials continued to prepare the market for rate hikes

Buyers hold back in front of three-day weekend
18-Feb-22 16:15 ET
Dow -232.85 at 34079.18, Nasdaq -168.65 at 13548.06, S&P -31.39 at 4348.87

[BRIEFING.COM] The S&P 500 decreased 0.7% on Friday, as risk sentiment remained pressured by geopolitical uncertainty, disappointing growth-stock earnings reactions, and expectations for tighter monetary policy. The benchmark index was down as much as 1.2% intraday and up as much as 0.3%.

The Dow Jones Industrial Average also declined 0.7% while the Nasdaq Composite (-1.2%) and Russell 2000 (-0.9%) fared slightly worse.

Ten of the 11 S&P 500 sectors closed lower, with the heavily-weighted information technology sector (-1.1%) exerting influential weakness at the bottom of the standings. The consumer staples sector (+0.1%) was the only sector that closed higher, eking out a 0.1% gain.

Regarding Russia-Ukraine, the U.S. maintained that a Russian invasion was imminent, even as Russia's foreign minister accepted an invitation to meet with Secretary of State Blinken next week. Mr. Blinken would travel to Europe for the meeting on the condition that there is no invasion of Ukraine.

With the market closed on Monday for Presidents' Day, buyers preferred to wait and see for what transpires over the long weekend. There was a precautionary trade in the Treasury market, where the 10-yr yield declined four basis points to 1.93%. The U.S. Dollar Index rose 0.3% to 96.09. Oil prices settled lower ($91.21, -0.55, -0.6%).

The decline in long-term rates provided little relief for the growth stocks, as investors were dismayed to see another round of steep, earnings-driven declines in the space. Roku (ROKU 112.46, -32.25, -22.3%), DraftKings (DKNG 17.29, -4.77, -21.6%), and Redfin (RDFN 22.86, -5.78, -20.2%) each plunged more than 20.0% following their reports.

The 2-yr yield, meanwhile, held steady at 1.47% as Fed officials continued to prepare the market for rate hikes.

Briefly, New York Fed President Williams (FOMC voter) said he supports steadily raising rates, starting in March. Cleveland Fed President Mester (FOMC voter) also advocated for a March rate hike, adding it would be appropriate to remove accommodation at a faster pace if inflation doesn't moderate as expected.

Separately, DuPont (DD 78.77, -0.96, -1.2%) agreed to sell the majority of its Mobility & Materials business to Celanese (CE 144.25, -8.00, -5.3%) for $11 billion in cash.

Reviewing Friday's economic data:

Existing home sales increased 6.7% m/m in January to a seasonally adjusted annual rate of 6.50 million (Briefing.com consensus 6.08 million). Total sales in January were down 2.3% from a year ago.
The key takeaway from the report is the push to buy existing homes in January as mortgage rates increased -- and were expected to increase further. That left unsold inventory at a record low, which is going to keep price pressures elevated and prospective buyers, particularly first-time buyers, facing an affordability pinch in the face of such lean supply for lower-priced homes and higher mortgage rates.
The Conference Board's Leading Economic Index decreased 0.3% m/m in January (Briefing.com consensus +0.2%) following a revised 0.7% increase (from 0.8%) in December.

When the market reopens on Tuesday, investors will receive the Consumer Confidence Index for February, the FHFA Housing Price Index for December, the S&P Case-Shiller Home Price Index for December, and the preliminary IHS Markit Manufacturing/Services PMIs for February.

Dow Jones Industrial Average -6.2% YTD
S&P 500 -8.8% YTD
Russell 2000 -10.5% YTD
Nasdaq Composite -13.4% YTD

Crude futures settle off session lows
18-Feb-22 15:30 ET
Dow -185.20 at 34126.83, Nasdaq -146.62 at 13570.09, S&P -26.69 at 4353.57

[BRIEFING.COM] The S&P 500 is down 0.6%, and the Russell 2000 is down 0.4%.

Looking at the sectors before the close shows information technology (-0.9%), energy (-0.8%), and industrials (-0.8%) underperforming the broad market, while the materials (+0.1%) and consumer staples (+0.1%) sectors cling onto slim gains.

WTI crude futures settled higher by 0.6%, or $0.55, to $91.21/bbl after being down as much as 2.9% intraday.