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Market Snapshot

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

Dow 32223.42 +26.76 (0.08%)
Nasdaq 11662.79 -142.21 (-1.20%)
SP 500 4008.01 -15.88 (-0.39%)
10-yr Note +2/32 2.894
NYSE Adv 1612 Dec 1564 Vol 945.5 mln
Nasdaq Adv 1956 Dec 2515 Vol 4.9 bln

Industry Watch
Strong: Energy, Health Care, Utilities, Consumer Staples
Weak: Consumer Discretionary, Financials, Real Estate

Moving the Market

-- Growth stocks hold back the market

-- Lingering growth concerns

-- Energy stocks rise in tandem with oil prices

Growth stocks hold back the market
16-May-22 16:20 ET
Dow +26.76 at 32223.42, Nasdaq -142.21 at 11662.79, S&P -15.88 at 4008.01

[BRIEFING.COM] The S&P 500 lost 0.4% on Monday amid continued weakness in the large growth stocks, which were largely responsible for the underperformance of the Nasdaq Composite (-1.2%). The Russell 2000 (-0.5%) performed comparably to the benchmark index, while the Dow Jones Industrial Average (+0.1%) eked out a gain.

The consumer discretionary sector (-2.1%) was the weakest performer with a 2% decline, as heavyweights Amazon.com (AMZN 2216.21, -44.89, -2.0%) and Tesla (TSLA 724.37, -45.22, -5.9%) continued to struggle. The information technology sector (-0.9%) was another key laggard without the leadership of Apple (AAPL 145.54, -1.57, -1.1%).

Growth stocks in general remained out of favor, evident by the 1.1% decline in the Russell 3000 Growth Index, versus the 0.1% gain for the Russell 3000 Value Index. Energy stocks contributed to the outperformance of the value index and, more directly, the S&P 500 energy sector (+2.6%) as oil prices ($113.80, +3.48, +3.2%) continued to appreciate.

The increase in oil prices was linked to news that Shanghai was planning to phase in business re-openings, thereby increasing demand expectations out of China. Despite the reopening news, risk sentiment was still pressured by ongoing growth concerns stirred by a host of developments.

Namely, weaker-than-expected Chinese data for April, a negative print (-11.6) for the May Empire State Manufacturing Survey, a downwardly revised 2022 eurozone growth forecast from the European Commission, and a temporary ban on wheat exports from India that drove wheat futures higher ($1247.50/bu, +70.00, +5.4%).

The Treasury market, like last week, continued to manifest these growth concerns through a decline in the 10-yr yield, which fell six basis points to 2.88%. The 2-yr yield decreased one basis point to 2.58%. The U.S. Dollar Index fell 0.3% to 104.24.

Overall, there just wasn't a ton of conviction today, but at least the CBOE Volatility Index (27.47, -1.40, -4.9%) dipped further below 30.00 in a move reflecting decreased hedging interest. There might have been a wait-and-see mindset for the retail sales report and a speech from Fed Chair Powell tomorrow.

In corporate news, shares of Spirit Airlines (SAVE 19.27, +2.29, +13.5%) rallied 13.5% after JetBlue (JBLU 9.45, -0.61, -6.1%) officially commenced a hostile takeover bid for the company. Wix.com (WIX 66.68, -4.51, -6.3%) and Warby Parker (WRBY 16.51, -0.93, -5.3%) provided disappointing earnings news.

Monday's economic data was limited to the Empire State Manufacturing Survey for May, which dropped to -11.6 (Briefing.com consensus 15.0) from 24.6 in April. Looking ahead, investors will receive Retail Sales for April, Industrial Production and Capacity Utilization for April, the NAHB Housing Market Index for May, and Business Inventories for March on Tuesday.

Dow Jones Industrial Average -11.3% YTD
S&P 500 -15.9% YTD
Russell 2000 -20.6% YTD
Nasdaq Composite -25.5% YTD

Consumer discretionary still down into the close
16-May-22 15:35 ET
Dow +83.71 at 32280.37, Nasdaq -115.54 at 11689.46, S&P -8.70 at 4015.19

[BRIEFING.COM] Heading into the close, the S&P 500 (-0.2%) is still above the 4,000 level.

Continuing a general downward trend, the consumer discretionary sector is down the most of all 11 S&P 500 sectors before the close with a 2.0% decline. Giving some context for the general longer term trend, this sector is down 8.4% this month and down 27.7% for the year. Tesla (TSLA 725.02, -44.52, -5.3% ) and Amazon.com (AMZN 2224.63, -37.60, -1.7%) are notably dragging down the sector. Unsurprisingly, the energy sector is way up at 3.0%.

Crude oil futures settled higher by $3.48 (+3.2%) at $113.80/barrel.
Tech sector turns positive
16-May-22 14:55 ET
Dow +237.08 at 32433.74, Nasdaq -38.29 at 11766.71, S&P +12.58 at 4036.47

[BRIEFING.COM] The S&P 500 is currently up 0.4% to trade near session highs amid a nice turnaround in the information technology sector (+0.3%), which was down as much as 1.7% intraday.

Being the most heavily-weighted sector in the market, featuring household names like Apple (AAPL 147.35, +0.29, +0.2%), Microsoft (MSFT 265.03, +3.91, +1.5%), and Visa (V 199.53, +0.30, +0.2%), the tech sector has an influential role in the price action of the S&P 500. Today's decline in long-term rates might be playing a supportive factor for dip-buying activity in the sector.

Looking ahead, Walmart (WMT 148.66, +0.66, +0.5%) and Home Depot (HD 299.01, +2.98, +1.0%) will report earnings prior to Tuesday's open.
Occidental outperforms alongside oil, energy peers
16-May-22 14:35 ET
Dow +305.09 at 32501.75, Nasdaq -9.95 at 11795.05, S&P +19.28 at 4043.17

[BRIEFING.COM] The major averages have turned modestly higher in recent trading, the S&P 500 (+0.48%) firmly in second place.

S&P 500 constituents Occidental Petro (OXY 68.49, +4.41, +6.88%), CF Industries (CF 107.98, +4.12, +3.97%), and Ball Corp (BALL 72.34, +2.59, +3.71%) pepper the top of today's action. OXY benefits from higher crude oil prices on Monday, while BALL was the subject of a new wind energy partnership with a NextEra Energy (NEE 70.47, +0.67, +0.96%) subsidiary.

Meanwhile, social media giant Twitter (TWTR 37.84, -2.88, -7.07%) is today's top laggard amid what seems like a he said, she said verbal battle between Elon Musk and TWTR management regarding bot account sizes. The company also disclosed on Friday evening that it wouldn't employ a new employee stock buying program.
Gold climbs higher on Monday
16-May-22 14:00 ET
Dow +170.01 at 32366.67, Nasdaq -66.17 at 11738.83, S&P +3.88 at 4027.77

[BRIEFING.COM] In the last half hour the S&P 500 (+0.10%) has moved back into positive territory, while the tech-heavy Nasdaq Composite (-0.56%) remains modestly lower.

Gold futures settled $5.80 higher (+0.3%) to $1,814.00/oz, ending back-to-back losses as a modestly lower dollar and mixed equities saw a modest bump in demand for the yellow metal.

Meanwhile, the U.S. Dollar Index is down about -0.2% to $104.37.