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Market Snapshot

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

Dow 33128.79 +67.29 (0.20%)
Nasdaq 12563.75 +27.74 (0.22%)
SP 500 4175.48 +20.10 (0.48%)
10-yr Note +3/32 2.941
NYSE Adv 1921 Dec 1207 Vol 975.6 bln
Nasdaq Adv 2401 Dec 1987 Vol 4.5 bln

Industry Watch
Strong: Energy, Financials, Real Estate, Materials
Weak: Consumer Staples, Consumer Discretionary

Moving the Market

-- Value stocks outperform growth stocks

-- 10-yr yield backs down from 3.00%

-- Waiting for the Fed decision tomorrow

Value stocks lead market higher
03-May-22 16:15 ET
Dow +67.29 at 33128.79, Nasdaq +27.74 at 12563.75, S&P +20.10 at 4175.48

[BRIEFING.COM] The S&P 500 gained 0.5% on Tuesday in a session driven by the value stocks. The Dow Jones Industrial Average (+0.2%) and Nasdaq Composite (+0.2%) both increased 0.2% while the Russell 2000 outperformed with a 0.9% gain.

Nine of the 11 S&P 500 sectors closed higher, paced by the energy (+2.9%), financials (+1.3%), real estate (+1.2%), and materials (+1.1%) sectors with gains over 1.0%. The consumer staples (-0.3%) and consumer discretionary (-0.3%) sectors were the two holdouts, and both declined 0.3%.

It was encouraging to see buyers follow though, albeit tentatively, on yesterday's efforts ahead of the Fed's highly-anticipated policy decision tomorrow. The rebound-minded action helped suppress hedging interest, as shown by the 9.6% decline in the CBOE Volatility Index (29.25, -3.09, -9.6%).

Other supportive factors included a four-basis-point decline in the 10-yr yield (2.96%), a 2% decline in oil prices ($102.86, -2.31, -2.2%), and a better-than-expected 2.2% m/m increase in factory orders for March (Briefing.com consensus 1.0%).

Growth stocks, however, did underperform in the wake of the 30% plunge in Chegg (CHGG 17.42, -7.56, -30.3%) following its disappointing revenue guidance. The Russell 3000 Growth Index closed flat, versus a 0.9% increase for the Russell 3000 Value Index.

Estee Lauder (EL 245.52, -15.11, -5.8%), Expedia Group (EXPE 150.31, -24.50, -14.0%), and Rockwell Automation (ROK 213.80, -36.24, -14.5%) were other earnings losers. Conversely, Pfizer (PFE 49.29, +0.95, +2.0%) and Avis Budget (CAR 285.28, +4.72, +1.7%) came out as earnings winners even though Pfizer issued downside FY22 guidance.

The 2-yr yield increased three basis points to 2.76% in a curve-flattening trade that didn't deter the bank stocks. The U.S. Dollar Index decreased 0.3% to 103.46.

Reviewing Tuesday's economic data:

Factory orders for manufactured goods increased 2.2% m/m in March (Briefing.com consensus +1.0%) following an upwardly revised 0.1% increase (from -0.5%) in February. Shipments of manufactured goods jumped 2.3% after increasing 1.1% in February.
The key takeaway from the report is that it supports the view that the slowdown in factory orders in February was temporary and that orders rebounded smartly in March as activity picked up with the effects of the Omicron variant fading.
Job openings increased to 11.549 million in March from a revised 11.344 million (from 11.266 million) in February.

Looking ahead to Wednesday, in addition to the FOMC Rate Decision, investors will receive the ADP Employment Change report for April, the ISM Non-Manufacturing Index for April, the the Trade Balance for March, and the weekly MBA Mortgage Applications Index.

Dow Jones Industrial Average -8.8% YTD
S&P 500 -12.4% YTD
Russell 2000 -15.4% YTD
Nasdaq Composite -19.7% YTD

Crude futures settle lower by 2%
03-May-22 15:30 ET
Dow +91.81 at 33153.31, Nasdaq +29.41 at 12565.42, S&P +21.61 at 4176.99

[BRIEFING.COM] The S&P 500 is up 0.5%, and the Russell 2000 is up 1.2%.

One last look at the S&P 500 sectors shows energy (+3.0%), financials (+1.6%), and materials (+1.3%) leading the advance, while the consumer discretionary (-0.5%) and consumer staples (-0.4%) sectors remain the only two sectors trading lower.

WTI crude futures settled lower by $2.43 (-2.3%) to $102.68/barrel.
Energy stocks rallying despite lower oil prices
03-May-22 14:55 ET
Dow +77.60 at 33139.10, Nasdaq +28.69 at 12564.70, S&P +22.84 at 4178.22

[BRIEFING.COM] The S&P 500 is up 0.5% after briefly returning to its flat line earlier this hour.

Impressively, energy stocks are among today's top-performing equities despite the 2% decline in oil prices ($102.90/bbl, -2.26, -2.2%). The S&P 500 energy sector is currently up 2.8% amid the broader trend into "value" stocks.

Looking ahead, Advanced Micro Devices (AMD 91.09, +1.28, +1.4%), Airbnb (ABNB 145.24, -7.46, -4.9%), Starbucks (SBUX 74.19, -1.16, -1.6%), and Lyft (LYFT 31.16, -0.35, -1.1%) are some notable companies that will report earnings after the close.