Sector Investing

[ReturntoSender]

Market Snapshot

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

Dow 33301.93 +61.75 (0.19%)
Nasdaq 12488.93 -1.81 (-0.01%)
SP 500 4183.95 +8.76 (0.21%)
10-yr Note -3/32 2.768
NYSE Adv 1312 Dec 1832 Vol 993.0 mln
Nasdaq Adv 1797 Dec 2657 Vol 4.6 bln

Industry Watch
Strong: Information Technology, Materials, Energy
Weak: Communication Services, Utilities, Real Estate

Moving the Market

-- Major indices close mixed in volatile session

-- Information technology sector provided key leadership

-- Weakness in the communication services sector after Alphabet (GOOG) missed EPS estimates

-- Mixed earnings picture

Volatile session ends mixed and little changed
27-Apr-22 16:20 ET
Dow +61.75 at 33301.93, Nasdaq -1.81 at 12488.93, S&P +8.76 at 4183.95

[BRIEFING.COM] The S&P 500 increased 0.2% on Wednesday in a volatile session in which the benchmark index traded between a 0.3% decline and 1.6% gain. The Nasdaq Composite (unch), Dow Jones Industrial Average (+0.2%), and Russell 2000 (-0.3%) closed mixed and little changed, also fading intraday gains.

Intraday highs were largely mechanical in the sense that the market tried to rally from an oversold condition, although some attributed good earnings news from the likes of Microsoft (MSFT 283.22, +13.00, +4.8%), Visa (V 214.11, +13.01, +6.5%), and T-Mobile US (TMUS 129.84, +4.88, +3.9%) as an influential factor.

The whole earnings picture, when considering reactions and guidance, was somewhat mixed, though. Alphabet (GOOG 2300.41, -89.71, -3.8%) and Boeing (BA 154.46, -12.58, -7.5%) both struggled following their reports while Texas Instruments (TXN 169.39, +0.95, +0.6%) issued downside Q2 guidance.

The S&P 500 communication services sector (-2.6%) was easily the worst-performing sector, as weakness in Alphabet spread over to Meta Platforms (FB 174.95, -6.00, -3.3%) ahead of its earnings report after the close, and the bleeding continued in Netflix (NFLX 188.54, -9.86, -5.0%).

Conversely, the information technology (+1.4%), materials (+1.5%), and energy (+1.5%) sectors each gained roughly 1.5%. The outperformance of the heavily-weighted technology sector overshadowed an underlying negative bias in the broader market: declining issues outpaced advancing issues at both the NYSE and Nasdaq.

Besides the mixed earnings picture, buying conviction was restrained by global growth concerns, the inability for the market to sustain a rebound rally, and weakening technical factors.

Elsewhere, the Treasury market saw modest selling pressure after two days of gains. The 2-yr yield increased two basis points to 2.57%, and the 10-yr yield increased five basis points to 2.82%. The U.S. Dollar Index rose 0.7% to 102.97. WTI crude futures rose 0.3%, or $0.33, to $101.75/bbl.

Reviewing Wednesday's economic data:

The Advance report for International Trade in Goods for March showed a deficit of $125.3 billion, versus a revised $106.4 billion (from $106.6 billion) in February. The Advance report for Retail Inventories for March rose 2.0%, and the Advance report for Wholesale Inventories for March rose 2.3%.
Pending home sales decreased 1.2% m/m in March (Briefing.com consensus -1.5%) following a revised 4.0% decline (from -4.1%) in February.
The weekly MBA Mortgage Applications Index fell 8.3% following a 5.0% decline in the prior week.

Looking ahead, investors will receive the advance estimate for Q1 GDP and the weekly Initial and Continuing Claims report on Thursday.

Dow Jones Industrial Average -8.4% YTD
S&P 500 -12.2% YTD
Russell 2000 -16.1% YTD
Nasdaq Composite -20.2% YTD

Crude futures settle slightly higher
27-Apr-22 15:30 ET
Dow +180.40 at 33420.58, Nasdaq +18.69 at 12509.43, S&P +18.75 at 4193.94

[BRIEFING.COM] The S&P 500 is up 0.5% in a relatively underwhelming session given the inability to hold onto prior gains.

One last look at the S&P 500 sectors shows information technology (+1.6%), energy (+1.7%), and materials (+1.7%) trading higher by more than 1.5%, while the communication services sector (-2.8%) remains a pocket of weakness.

WTI crude futures settled higher by $0.33 (+0.3%) to $101.75/barrel.