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Market Snapshot

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

Dow 32944.19 -229.88 (-0.69%)
Nasdaq 12843.81 -286.15 (-2.18%)
SP 500 4204.31 -55.21 (-1.30%)
10-yr Note -1/32 2.007
NYSE Adv 819 Dec 2359 Vol 1.0 bln
Nasdaq Adv 1306 Dec 3070 Vol 5.2 bln

Industry Watch
Strong: Utilities
Weak: Communication Services, Consumer Discretionary, Information Technology

Moving the Market

-- Investors grow frustrated with the market and economy

-- President Putin reportedly describes a positive shift in talks with Ukraine, but market doesn't believe him

-- Higher oil prices, flatter Treasury yield curve

-- Consumer sentiment declines in March

Stocks close at session lows in frustrating session
11-Mar-22 16:20 ET
Dow -229.88 at 32944.19, Nasdaq -286.15 at 12843.81, S&P -55.21 at 4204.31

[BRIEFING.COM] The S&P 500 fell 1.3% on Friday, as investors appeared frustrated with the state of the market and economy. The Nasdaq Composite (-2.2%) and Russell 2000 (-1.6%) lost more than 1.5% while the Dow Jones Industrial Average lost 0.7%.

All 11 S&P 500 sectors closed in negative territory, leaving the benchmark index at session lows after it started the day with a 0.7% gain. The information technology (-1.8%), consumer discretionary (-1.8%), and communication services (-1.9%) fell nearly 2.0% while the utilities sector decreased just 0.4%.

The positive start transpired after President Putin reportedly described a positive shift in talks with Ukraine, but the problem for the market was that no one earnestly believed Mr. Putin was going to stop the invasion without a full surrender from Ukraine. On a related note, President Biden announced new economic actions against Russia in coordination with allies.

Other issues included higher oil prices ($109.10/bbl, +2.81, +2.6%) following a suspension in nuclear deal talks between the U.S. and Iran, a flatter Treasury yield curve, a decline in consumer sentiment for March, disappointing guidance from DocuSign (DOCU 75.01, -18.87, -20.1%) and Rivian (RIVN 38.05, -3.11, -7.6%), and continued weakness in Chinese ADRs.

DocuSign and Rivian, specifically, reminded investors that there's still room for further downside in the growth stocks should they not meet expectations. Oracle (ORCL 77.82, +1.17, +1.5%), meanwhile, stood out after providing upbeat revenue guidance.

The mega-caps were a heavy drag on the market. The Vanguard Mega Cap Growth ETF (MGK 210.96, -4.30) fell 2.0%, versus a 1.1% decline for the Invesco S&P 500 Equal Weight ETF (RSP 149.52, -1.59).

Strikingly, the Treasury market wasn't as excited as the stock market initially was following the Putin headline. It was relatively quiet, and the ensuing price action signaled concerns that the inflationary environment could lead the Fed to an aggressive rate-hike path and slow down growth even more.

The 2-yr yield increased three basis points to 1.75% while the 10-yr yield declined one basis point to 2.00%. The U.S. Dollar Index rose 0.6% to 99.11.

Reviewing Friday's economic data:

The preliminary March reading for the University of Michigan Consumer Sentiment Index checked in at 59.7 (Briefing.com consensus 62.5) versus the final reading of 62.8 for February. The March reading marks the lowest level for the index since October 2012.
The key takeaway from the report is that rising inflation is eating away at consumer sentiment, as consumers recognize their purchasing power has been reduced because their income is not keeping up with inflation. That is apt to translate into reduced discretionary spending activity. Notably, it was indicated in the report that personal finances were expected to worsen in the year ahead by the largest proportion since the survey started in the mid-1940s.

There is no economic data of note scheduled for Monday.

Dow Jones Industrial Average -9.3% YTD
S&P 500 -11.8% YTD
Russell 2000 -11.8% YTD
Nasdaq Composite -17.9% YTD

Crude futures settle above $109 per barrel
11-Mar-22 15:30 ET
Dow -84.49 at 33089.58, Nasdaq -216.18 at 12913.78, S&P -34.73 at 4224.79

[BRIEFING.COM] The S&P 500 is down 0.8% while the Nasdaq (-1.6%) and Russell 2000 (-1.1%) continue to underperform.

One last look at the sectors shows information technology (-1.2%), consumer discretionary (-1.3%), and communication services (-1.4%) lagging with declines over 1.0%. The utilities sector outperforms near its flat line.

WTI crude futures settled higher by $2.81 (+2.6%) to $109.10/barrel.