Replies to post #6858 on Sector Investing

[ReturntoSender]

Charts on the Yield Curve - In Various Time Frames going back Three Years:

Charts on the the 30 Year T Bond Yield vs the 3 Month Treasury Note Yield - Note how uncommon it is to have the short term notes rising while the long term bond falls but until the short term yield is higher than the long term yield the yield curve is not inverted.

Yield Curve: The yield on the 30-year treasury bond minus the yield on the three-month T-Bills. When the yield curve spread is greater than 3.5% (very steeply upward sloping) it is bullish for stocks, and when the yield curve is negative (inverted) it is a bearish indication for stocks.
Formula: (Long Bond yield) - (T-Bill yield)
Gauge Elements: Magnitude
Updated: Weekly (as of Friday close)
Strategy
The yield curve will always be a factor in the future direction of the stock market, but it is most useful as an indicator when it becomes either very positive or inverted. Historically, an inverted yield curve has been followed by a recession and falling stock prices. A steep upwardly sloping yield curve with a spread of greater than 3.5% usually supports higher stock prices.

YIELD Curve A plot of treasury YIELDs across the various maturities at a specific point in time. At the front (left) of the YIELD curve are T-Bills with maturities of 12, 26 and 52 weeks. In the middle are Treasury Notes with maturities of 2, 5 and 10 years. At the end (right) of the YIELD curve are Treasury Bonds with maturities of 20 and 30 years. In a normal YIELD curve, YIELDs rise as the maturities increase. If the YIELD on shorter maturities is higher than that of longer maturities, then an inverted YIELD curve exists. An inverted YIELD curve is a sign of tight money and is bearish for stocks.
















How direct is the effect of bond movements on the market? Does the market move lower when bonds move higher and visa versa? Judge for yourself:

[ReturntoSender]

Amateur Investors Weekend Stock Market Analysis (3/8/14)

http://www.amateur-investor.net/Weekend_Market_Analysis_Mar_8_2014.htm

Tracking Mutual Fund Activity can give you an advantage as far as long term investing. Nearly a decade ago I developed an index called the Mutual Fund Panic Index (MFPI) which tracks inflows and outflows out of Equity Mutual Funds on a quarterly basis. Data can be tracked back to the early 1950's and what the research shows is that when outflows equal or exceed -18% (points A) significant bottoms have occurred followed by impressive rallies of at least 70% with each event. Also notice these events are rare with only "8" signals since the early 1950's.

The last Buy Signal was in late 2011 which is probably one reason why the market rallied strongly from 2012 into 2013. The S&P 500 bottomed at 1075 in October of 2011 so we have seen a 75% gain since then and a 181% rally from the March 2009 low of 667. In addition there was a long term Buy Signal with the March 2009 low as well.



Naturally one would ask since the MFPI has done so well in timing market bottoms does the reverse hold true in timing market tops? Unfortunately there isn't a strong correlation between inflows of money (18% or more) into Equity Mutual Funds and market tops in the S&P 500. Notice there have been several instances in which readings reached or exceeded 18% (points B) but the S&P 500 still moved substantially higher.

Next weekend I will show what conditions have led to market tops in the past using a combination of Investor Sentiment, Shiller PE Ratio's and Interest Rates.

[ReturntoSender]

From Briefing.com: 4:15 pm : The major averages finished the session on a modestly higher note, but not before heavy selling pressure sent the Nasdaq Composite (+0.3%) for a test of its 200-day moving average. The S&P 500, meanwhile, added 0.7% with all ten sectors posting gains.

Equities climbed at the open with the advance built on the relative strength of biotechnology and other momentum names. Despite the solid early gains in those areas, the market began fading from its high as multiple reports pointed to an escalation of tensions in Ukraine. Specifically, a skirmish reportedly took place at the Kramatorsk airbase, but there were inconsistencies with regard to the number of injured. Some reports put the number of casualties between four and 11, while others said there were no casualties. After these reports made the rounds, Ukraine's acting President Oleksandr Turchynov was quoted by Interfax as saying the airfield has been retaken from pro-Russian militants.

With participants watching the news from Ukraine, stocks continued their retreat into the early afternoon, while bonds rallied. The defensive sentiment was also present in the foreign exchange market, where the yen strengthened to 101.50 against the dollar.

Strikingly, equity indices notched their lows just after 13:00 ET and spent the next three hours in a sharp rally back into the green in a move that was accompanied by the return of yen weakness that sent the dollar/yen pair to 101.85.

The rally in equities and the dollar/yen pair seemed to follow reports from Nikkei, suggesting sources think Japan will lower its economic outlook in its upcoming April 17 report. Such a headline presumably fueled some speculation that the downgrade will ultimately invite more policy stimulus from Japan, which was music to the ears of a market that has cheered accommodative monetary policy for quite some time.

As a result of the afternoon rally, the S&P 500 returned to its morning high, while the Nasdaq clawed its way back into the green. Like the Nasdaq, biotechnology climbed off its lows, but the iShares Nasdaq Biotechnology ETF (IBB 217.61, +2.24) was unable to reclaim its 200-day moving average. The biotech ETF added 1.0%, while the broader health care sector advanced 1.1%. Contributing to the sector's strength were shares of Johnson & Johnson (JNJ 99.20, +2.06), which added 2.1% after the company beat on earnings.

Elsewhere, energy (+1.3%) and financials (+0.9%) spent the entire day trading ahead of the broader market, which facilitated the afternoon rebound.

Also of note, the utilities sector (+1.3%) ended ahead of the remaining groups after climbing steadily throughout the session. The rate-sensitive sector extended its year-to-date gain to 11.8%, which speaks to the overall cautious posture that has been exhibited by the market so far in 2014.

Treasuries posted gains, but retreated from their midsession highs during the afternoon rally in equities. The benchmark 10-yr yield slipped three basis points to 2.62%.

Participation was a bit above average as 771 million shares changed hands at the NYSE floor.

Reviewing today's data:

Consumer prices increased 0.2% in March, up from a 0.1% gain in February. The Briefing.com consensus expected the CPI to increase 0.1%. Excluding food and energy, core prices increased 0.2% in March and ended a string of three consecutive months of 0.1% gains. The consensus expected these prices to increase 0.1%. The surprises in both the headline and core indices were mainly the result of stronger-than-expected housing costs. The shelter index increased 0.3% in March and accounted for two-thirds of the gain in the core consumer price index. Housing costs increased 2.7% over the last 12 months, which was the largest yearly increase since March 2008. As expected, drought conditions in the west contributed to stronger-than-normal growth in food prices. Food costs increased 0.4% for a second consecutive month. Year-over-year, food prices are up 1.2%, which is the largest yearly gain since August 2012.
The Empire Manufacturing Survey for April registered a reading of 1.3, which was down from the prior month's reading of 5.6. Economists polled by Briefing.com expected the survey to improve to 7.5.
The April NAHB Housing Market Index rose to 47 from 46 while the Briefing.com consensus expected the reading to increase to 50.

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET, while March Housing Starts will be announced at 8:30 ET. March Industrial Production and Capacity Utilization will both be reported at 9:15 ET, while the day's data will be topped off with the Federal Reserve's Beige Book for April. The report will be released at 14:00 ET.

S&P 500 -0.3% YTD
Dow Jones Industrial Average -1.9% YTD
Nasdaq Composite -3.4% YTD
Russell 2000 -3.7% YTD

DJ30 +89.32 NASDAQ +11.47 SP500 +12.37 NASDAQ Adv/Vol/Dec 1327/2.15 bln/1552 NYSE Adv/Vol/Dec 1861/771.6 mln/1182

3:30 pm :

June gold slid to a session low of $1284.40 per ounce in early morning action on economic data showing the consumer price index rising 0.2% in March, up from a 0.1% gain in February. The Briefing.com consensus expected the CPI to increase to 0.1%. The yellow metal then inched slightly higher for the remainder of the session and settled at $1299.90 per ounce, or 2.1% lower.
May silver also traded in the red today. It slumped to a session low of $19.22 per ounce moments after pit trade opened and eventually settled with a 2.6% loss at $19.48 per ounce.
May crude traded in negative territory ahead of tomorrow's release of EIA inventory data. In addition, reports indicated that a tanker was due to load 1 mln barrels of oil at the recently reopened Hariga oil port in eastern Libya. The energy component brushed a session low of $103.02 per barrel as floor trade opened and touched a session high of $104.05 per barrel by mid-morning action. It eventually settled with a 0.4% loss at $103.68 per barrel.
May natural gas rose to a session high of $4.63 per MMBtu in morning action but slipped to $4.53 per MMBtu in early afternoon floor trade. It then consolidated near the unchanged line and settled at $4.57 per MMBtu, or 0.2% higher.

4:15PM Intel beats by $0.01, reports revs in-line; guides Q2 revs in-line, gross margin above consensus; reaffirms FY14 revs guidance; raises FY14 gross margin guidance 100 bps (INTC) 26.77 +0.21 : Reports Q1 (Mar) earnings of $0.38 per share, $0.01 better than the Capital IQ Consensus of $0.37; revenues rose 1.5% year/year to $12.76 bln vs the $12.81 bln consensus.

Q1 gross margin of 59.7% vs Street expectations of just above 59% (co guided for Q1 gross margin of 57-61%).
PC Client Group revenue of $7.9 billion, down 8% sequentially and down 1% year-over-year.
Data Center Group revenue of $3.1 billion, down 5% sequentially and up 11% year-over-year.
Internet of Things Group revenue of $482 million, down 10% sequentially and up 32% year-over-year.
Mobile and Communications Group revenue of $156 million, down 52% sequentially and down 61% year-over-year.
Software and services operating segments revenue of $553 million, down 6% sequentially and up 6% year-over-year.
"In the first quarter we saw solid growth in the data center, signs of improvement in the PC business, and we shipped 5 million tablet processors, making strong progress on our goal of 40 million tablets for 2014."

Co issues in-line guidance for Q2, sees Q2 revs of $12.5-13.5 bln vs. $12.96 bln Capital IQ Consensus; co sees Q2 gross margins of 61-65% vs Street expectations of ~60%.

Co reaffirms rev guidance and raises gross margin guidance for FY14, sees FY14 revs flat YoY at ~$52.7 bln vs. $53.15 bln Capital IQ Consensus; gross margin percentage: 61 percent, plus or minus a few percentage points, 1 percentage point higher than prior expectations; R&D plus MG&A spending: $18.9 billion, plus or minus $200 million, higher than prior expectations of $18.6 billion.

4:07PM Yahoo! beats by $0.01, reports revs in-line (YHOO) 34.21 +0.76 : Reports Q1 (Mar) earnings of $0.38 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.37; revenues rose 1.2% year/year to $1.09 bln vs the $1.08 bln consensus.

Display:

GAAP display revenue was $453 million for the first quarter of 2014, flat compared to the first quarter of 2013. Display revenue ex-TAC was $409 million for the first quarter of 2014, a 2 percent increase compared to $402 million for the first quarter of 2013.
The Number of Ads Sold increased approximately 7 percent compared to the first quarter of 2013.
Price-per-Ad decreased approximately 5 percent compared to the first quarter of 2013.

Search:

GAAP search revenue was $445 million for the first quarter of 2014, a 5 percent increase compared to $425 million for the first quarter of 2013. Search revenue ex-TAC was $444 million for the first quarter of 2014, a 9 percent increase compared to $409 million for the first quarter of 2013.
Paid Clicks increased approximately 6 percent compared to the first quarter of 2013. Price-per-Click increased approximately 8 percent compared to the first quarter of 2013.

Cash Balance
Cash, cash equivalents, and investments in marketable securities were $4.6 billion as of March 31, 2014 compared to $5 billion as of December 31, 2013, a decrease of $0.4 billion.

12:20PM Notable movers of interest (SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

KO (40.29 +4.03%): Reported EPS in-line, revs in-line.
TRIP (81.79 +2.54%): Tgt raised to $105 from $94 at Credit Suisse; Outperform.
SCHW (25.6 +1.21%): Beat on EPS by $0.02, reported revs in-line.

Large Cap Losers

VALE (13.53 -8.83%): Weakness in Brazil names (PBR, BRFS and TSU also lower).
INFY (51.6 -7.16%): Beat on EPS by INR3.03, reported revs in-line; raised dividend pay-out ratio to up to 40% of post-tax profits vs 30% prior.
NFLX (313.2 -5.54%): Trading lower following unfavorable mention on Mad Money.

Mid Cap Gainers

MDVN (56.07 +0.54%): Disclosed The Regents of the University of California filed a complaint against the company.
LPI (26.98 +1.58%): Co expects a Q1 loss on derivatives of ~ $31.1 mln.
AXLL (45.79 +0.95%): Provided update on repairs at Lake Charles, Louisiana, chemicals facility; sees Q1 adjusted EBITDA of $65-70 mln.

Mid Cap Losers

SWY (34.24 -9.92%): Co completed previously-announced spin-off of its Blackhawk Networks (HAWKB) unit to shareholders.
ZBRA (62.82 -8%): Guided Q1 above consensus; acquired MSI's Enterprise business from MSI for $3.45 bln.
AAN (28.43 -6.7%): Reduced 1Q2014 rev and earnings guidance; estimate severe winter weather will negatively impact EPS for the quarter $0.05-0.06; acquired Progressive Finance; transaction will be double-digit accretive to cash EPS in 2014 and significantly more accretive in 2015; issued open letter to shareholders to speak about acquisition of Progressive Finance; Board unanimously determined to reject Vintage Capital unsolicited proposal as inadequate and illusory.

11:30AM Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (130) outpacing new highs (51) (SCANX) : Stocks that traded to 52 week highs: AAV, AGRO, ANDE, ATHL, ATO, BAM, BAS, CQH, CRK, CWEI, CXO, DMLP, DTE, E, ECA, ECOL, EDGW, ERF, FFCO, GA, GAS, GLOG, HIL, HSKA, IM, KEG, KNX, LAKE, LNT, MCS, MPLX, NU, NWE, OFED, PEG, PES, PSXP, RDS.B, REI, RNR, RYAAY, SE, SLB, SLCA, SPCB, STO, TOT, TSM, UHAL, VOCS, WEC

Stocks that traded to 52 week lows: ACFN, ACST, AGEN, AMBI, AMRC, ARO, ARQL, ARRY, ASTI, ATRS, AUY, AVNW, AXR, BTX, CARB, CCCL, CDE, CHGG, CLSN, CLTX, CNCE, COOL, COUP, CRCM, CRDC, CRIS, CRMB, CTHR, CWTR, DRNA, DSCI, EDMC, EGAN, EGLT, ELGX, ELNK, ETH, EV, EXEL, EXPR, FMD, FOLD, FSYS, FUEL, FWM, GEVO, GIMO, GMAN, GNE, GOOG, HOV, IGC, IIVI, IMGN, IMPV, INFI, JAXB, JIVE, KANG, KBIO, KBR, KING, LDR, LEI, LITB, LIWA, LUB, LXRX, MBII, MELI, MGNX, MSG, NAK, NCQ, NEWL, NMR, NSPH, NTLS, OIBR, OIBR.C, ONCY, ONTX, ORBT, OVAS, PBY, PGNX, PIP, PKT, PMFG, PRAN, QSII, QTWO, QURE, RALY, RAX, REPH, RJET, RKUS, RNG, RSH, SBY, SPEX, SPU, SSNI, STEM, STNR, STRL, SWAY, TAXI, TBNK, TCS, TEAR, TECUA, TEDU, TEU, THLD, TNDM, TROV, TRVN, TZOO, VHI, VIP, VTUS, WMC, WPCS, WPRT, XNPT, XONE, ZNH, ZTS

ETFs that traded to 52 week highs: IXC, XLU, XOP

ETFs that traded to 52 week lows: none

11:27AM Relative sector strength (TECHX) : New two month lows for the Nasdaq 100/Comp and Russell 2000 this morning while the S&P/Dow still remain solidly above their weekly lows. Sectors that have displayed relative strength during the pullback include: Energy XLE, Oil Service OIH, Utility XLU, Staples XLP, REITs IYR.

11:23AM ATMI shareholders approve merger with Entegris (ENTG) (ATMI) 33.95 0.00 :

9:03AM Riverbed Technology: Elliot reaffirms $21 bid for Riverbed (RVBD) 18.86 :

"Elliott remains extremely interested in acquiring Riverbed, and our $21 cash offer still stands."
"Riverbed's stock is trading meaningfully below our $21 offer, below our initial offer of $19 and vastly below the levels at which other potential buyers are interested. Nevertheless, even at these levels, the stock price remains above the unaffected price of $16-17 per share. Shareholders clearly still expect that the Board will eventually do the right thing by engaging with Elliott and other potential buyers, but unfortunately our repeated requests for access to diligence materials have been ignored. By continuing its policy of ignoring premium offers and refusing to engage, this Board is depriving shareholders of significant potential value and opening the door to significant value degradation. Elliott continues to believe that the best path forward for Riverbed is for the Board to start acting in the best interest of shareholders by providing all interested buyers with access to diligence with an eye toward achieving a value-maximizing outcome."

Mellanox Technologies (MLNX) announced that the National Computational Infrastructure, hosted at the Australia National University, selected Mellanox's interconnect to support Australia's national research computing service.

Broadcom (BRCM) introduced the industry's first six stream 802.11ac MIMO platform for home networks. Broadcom's 5G WiFi XStream is up to 50% faster than MU-MIMO routers and gateways.

Axcelis Technologies (ACLS) has received an order for the co's next generation Purion M medium current implanter from a second leading chipmaker in Asia.

In reaction to disappointing earnings/guidance: LEDS -9%

8:02AM BlackBerry announced an investment in healthcare IT leader NantHealth (BBRY) 7.14 : Co announced an investment in healthcare IT leader NantHealth.
The companies intend to collaborate on the development of HIPAA and other government privacy certified, integrated clinical systems that transform the delivery of medical care.

6:43AM Motorola Solutions guides Q1 EPS and rev below consensus (EPS in-line with guidance); sells enterpreise business to Zebra (ZBRA) for $3.45 bln (MSI) 63.78 : Co issues downside guidance for Q1 (Mar), sees EPS of $0.50 vs. $0.52 Capital IQ Consensus and $0.46-0.52 guidance; sees Q1 (Mar) revs of $1.8 bln vs. $1.88 bln Capital IQ Consensus.

Sales results were below the company's previous revenue outlook, primarily due to softer demand in the North America Government business along with lower than anticipated Enterprise sales.
"Revenues in the quarter did not meet our expectations due primarily to lower than expected volumes in our North America Government business in addition to a push out of certain Enterprise orders late in the quarter. While revenues were less than anticipated in the first quarter, we remain confident that we are well positioned for long-term profitable growth based on our strong pipeline position."
In a separate press release issued today (see 6:31 comment), Motorola Solutions announced the sale of its Enterprise business to Zebra Technologies for $3.45 billion.

Micron Technology (MU) and Wave Systems (WAVX) are expanding their relationship to develop solutions designed to strengthen user protection against current and emerging threats to compute and embedded platforms.

[ReturntoSender]

From Briefing.com: 4:10 pm : The stock market ended the holiday-shortened week on a mixed note as the Dow Jones Industrial Average shed 0.1%, while the S&P 500 added 0.1% with seven sectors posting gains.

Equity indices faced an uphill climb from the opening bell after disappointing quarterly results from Google (GOOG 536.10, -20.44) and IBM (IBM 190.04, -6.36) weighed on the early sentiment. Google reported earnings $0.15 below the Capital IQ consensus estimate on revenue of $15.42 billion (expected $15.52), while IBM revealed in-line earnings on revenue that was roughly $500 million below expectations.

The results from the two pressured the technology sector (-0.3%), which was down as much as 1.0% during early action. The sector was able to shed the bulk of its losses thanks to strength among chipmakers and other high-beta components. Chipmakers rallied throughout the session after upbeat earnings from SanDisk (SNDK 82.99, +7.14) and Taiwan Semiconductor (TSM 20.71, +0.56) underpinned the space. The broader PHLX Semiconductor Index, meanwhile, jumped 1.9%.

Even though Google and IBM pressured the market early on, equity indices were able to rebound with help from several other major listings that reported above-consensus results. General Electric (GE 26.56, +0.44), Goldman Sachs (GS 157.44, +0.22), Morgan Stanley (MS 30.76, +0.87), and PepsiCo (PEP 85.55, +0.78) all beat their estimates.

Also of note, the biotech space remained volatile with the iShares Nasdaq Biotechnology ETF (IBB 222.16, -0.57) spending some time on each side of its flat line. Furthermore, the ETF ended just above its 200-day moving average (220.19) after spending the past week near that key level.

Although the Nasdaq and S&P 500 posted modest gains, the Dow Jones (-0.1%) was unable to catch up to its peers as losses in several large components like IBM, American Express (AXP 86.22, -1.18), and UnitedHealth (UNH 75.78, -2.41) acted as a wet blanket on the price-weighted index.

Treasuries retreated steadily throughout the session, causing the benchmark 10-yr yield to add nine basis points to 2.72%. The slide took place amid reports from Geneva indicating representatives from the European Union, United States, Ukraine, and Russia have reached an agreement on steps aimed at de-escalating the crisis in Ukraine. The agreement was announced by Russia's Foreign Minister Sergei Lavrov, who also said Ukraine needs 'decentralization' and 'more regional powers.'

Trading volume was above average thanks to a boost in activity resulting from options expiration. As a result more than 800 million shares changed hands at the New York Stock Exchange.

Today's data was limited to two releases:

The initial claims level increased to 304,000 for the week ending April 12 from an upwardly revised 302,000 for the week ending April 5. The Briefing.com consensus expected the initial claims level to increase to 312,000. The Department of Labor stated that there were no special factors impacting the claims data. However, we remain skeptical of that. Over the past few years, the DOL has had extreme difficulties managing the seasonal adjustment factors around the Easter holiday. With Easter falling on a later date this year, we suspect that the claims are underreporting actual layoff levels. We expect some volatility in the next few weeks before the initial claims level settles back in the 320,000 -- 330,000 range by the beginning of May.
The Philadelphia Fed's Business Outlook increased to 16.6 in April from 9.0 in March. The Briefing.com consensus expected the index to fall to 8.6. There was a general strengthening across the board. Shipments spiked to 22.7 in April from 5.7 in March. Most of the gain was the result of a significant strengthening in new orders demand, 14.8 from 5.7. The gains in shipments, however, may not be sustainable. Unfilled orders softened as the related index fell to 2.0 in April from 2.6 in March. Without a steady supply of backlogs, weaker new orders will pull down shipments growth. The employment index increased to 6.9 in April from 1.7 in March.

Monday's data will be limited to the Leading Indicators report for March, which will be released at 10:00 ET.

S&P 500 +0.9% YTD
Dow Jones Industrial Average -1.0% YTD
Nasdaq Composite -1.9% YTD
Russell 2000 -2.1% YTD

Week in Review: Stocks Rebound From Recent Pressure

The major averages finished the Monday session on a modestly higher note, but they ended below their best levels of the day after volatility during the last two hours of action forced the indices to test their flat lines. The S&P 500 rose 0.8%, while the Nasdaq added 0.6% after being up as much as 1.3%. The stock market began the session on an upbeat note, casting aside renewed concerns about the situation in Ukraine, where the country's army was called in over the weekend to deal with pro-Russian separatists in several cities in the Southeast. Instead, the market rallied in the morning after Citigroup's (C 48.22, +0.04) above-consensus quarterly results, combined with a better-than-expected March Retail Sales report, invited buyers into the mix. In all likelihood, the early advance was assisted by some short-covering as many areas that displayed weakness in recent sessions, showed relative strength.

On Tuesday, equities ended on a modestly higher note, but not before heavy selling pressure sent the Nasdaq Composite (+0.3%) for a test of its 200-day moving average. The S&P 500, meanwhile, added 0.7% with all ten sectors posting gains. Stocks climbed at the open with the advance built on the relative strength of biotechnology and other momentum names. Despite the solid early gains in those areas, the market began fading from its high as multiple reports pointed to an escalation of tensions in Ukraine. Specifically, a skirmish reportedly took place at the Kramatorsk airbase, but there were inconsistencies with regard to the number of injured. Some reports put the number of casualties between four and 11, while others said there were no casualties. After these reports made the rounds, Ukraine's acting President Oleksandr Turchynov was quoted by Interfax as saying the airfield has been retaken from pro-Russian militants.

The stock market ended the Wednesday session on an upbeat note with the Nasdaq (+1.3%) ending in the lead. The S&P 500 settled higher by 1.1% with all ten sectors posting gains. The benchmark index spent the entire trading day in the green, rallying to new highs during the last hour of action. The tech-heavy Nasdaq, meanwhile, briefly dipped into the red during morning action, but was able to recover swiftly. Stocks began the trading day with modest gains after the overnight session featured the release of China's Q1 GDP. Although the report could be classified as better-than-feared, it did not necessarily produce a clear-cut signal as the year-over-year reading of 7.4% beat estimates (7.3%), while the quarter-over-quarter growth of 1.4% was just below expectations (1.5%).
DJ30 -16.31 NASDAQ +9.29 SP500 +2.54 NASDAQ Adv/Vol/Dec 1791/1.78 bln/1042 NYSE Adv/Vol/Dec 1788/818.4 mln/1276

3:30 pm :

June gold slipped deeper into negative territory today as the dollar index erased earlier losses. The yellow metal pulled back from its session high of $1303.20 per ounce set in morning action and fell as low as $1292.80 per ounce. Unable to gain momentum, it settled 0.7% lower at $1294.20 per ounce.
May silver chopped around slightly below the unchanged line after retreating from a session high of $19.69 per ounce set moments after floor trade opened. It brushed a session low of $19.56 per ounce and eventually settled with a 0.2% loss at $19.60 per ounce.
May crude oil traded higher, rising as high as $104.78 per barrel in morning action. It dipped to a session low of $103.85 per barrel but recovered some of the gain in afternoon floor trade. The energy component eventually settled 0.6% higher at $104.31 per barrel.
May natural gas slipped to a session low of $4.48 per MMBtu in morning action but rallied sharply into positive territory following bullish inventory data that showed a build of 24 bcf when a larger build of 34-36 bcf was anticipated.
It inched higher for the remainder of the session and settled 4.6% higher at $4.74 per MMBtu, just below its session high of $4.75 per MMbtu.

5:12PM This week's biggest % gainers/losers (SCANX) : The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

Technology: ZIGO (19.25 +31.13%), GRUB (35.95 +16.31%), WBMD (44.99 +15.06%), SPLK (65.84 +12.74%), RALY (13.86 +12.5%)
Services: GLOG (28.04 +12.61%), GLNG (46.47 +12.6%)
Healthcare: AKBA (26.09 +41.18%), RGEN (15.84 +15.79%), AGN (133.92 +14.82%)
Financial: BOFI (85.3 +14.59%), AHL (44.45 +12.76%), IBKR (23.95 +12.6%)
Basic Materials: GDP (24.36 +35.94%), TPLM (9.83 +21.81%), HK (5.34 +17.88%), MPO (5.91 +17.03%), CRK (26.4 +12.53%), PSXP (57.66 +12.22%), AXAS (5.15 +12.2%)

This week's top 20 % losers

Technology: NQ (12.9 -19.32%), HIMX (9.12 -16.02%), OIBR (1.18 -15.11%)
Services: CNSI (26.41 -24.43%), PBY (10.26 -15.14%)
Healthcare: RARE (42.56 -26.54%), RTRX (14.5 -20.55%), ARWR (12.77 -19.53%), INO (2.52 -16%), DYAX (6.73 -15.24%), MGNX (20.02 -14.77%), NWBO (5.88 -14.16%), INSM (13.41 -14.04%), GWPH (46.2 -13.81%), ECYT (18.15 -13.2%)
Financial: MGI (14.81 -17.58%), NBG (4.48 -17.19%)
Basic Materials: CAK (0.7 -17.35%), PVG (5.48 -16.21%), ANV (3.63 -13.57%)

4:20PM Advanced Micro beats by $0.02, beats on revs; guides Q2 revs above consensus (AMD) 3.69 -0.07 : Reports Q1 (Mar) earnings of $0.02 per share, $0.02 better than the Capital IQ Consensus Estimate of ($0.00); revenues rose 28.4% year/year to $1.4 bln vs the $1.34 bln consensus; GAAP gross margin flat QoQ at 35%.

Computing Solutions segment revenue decreased 8 percent sequentially and 12 percent year-over-year. The sequential and year-over-year declines were due to decreased client unit shipments.
Operating loss was $3 million, an improvement from an operating loss of $7 million in Q4 2013 and $39 million in Q1 2013 driven by lower operating expenses.
Microprocessor average selling price (ASP) was flat sequentially and decreased slightly year-over-year.
Graphics and Visual Solutions segment revenue decreased 15 percent sequentially and increased 118 percent year-over-year driven largely by semi-custom SoCs. GPU revenue increased sequentially and year-over-year due to strong demand for the AMD Radeon R7 and R9 family of products.
Operating income was $91 million compared with $121 million in Q4 2013 and $16 million in Q1 2013. The sequential decline was primarily due to decreased revenue from semi-custom SoCs while the year-over-year increase was driven by higher sales of semi-custom SoCs.
GPU ASP increased sequentially and year-over-year driven by the Radeon R7 and R9 family of products.

Co issues upside guidance for Q2, sees Q2 revs +0-6% QoQ to ~$1.40-1.48 bln vs. $1.36 bln Capital IQ Consensus Estimate.

3:41PM Earnings Preview for the week of April 21 - 25 (SUMRX) : Of the companies reporting earnings for the week of April 21 - 25 some of the bigger names include:

Monday:
Pre Market - HAL, KMB, RCI, STI, LII, HAS, TNC
After Hours - CE, NFLX, RCII, ZION, WCN
Tuesday:
Pre Market - CMCSA, UTX, LMT, MCD, TRV, PHG, XRX, BK, GPC, ITW, OMC, CNC, SAH, PNR, IPG, HOG, CP, AKS, RF, SPG, ATI, LXK, ACI
After Hours - T, AMGN, GILD, YUM, CNI, DFS, FTI, WRB, NBR, SANM, PKG, VMW, JNPR, TMK, UIS, BCR, ISRG, CREE, ILMN, CBST,
Wednesday:
Pre Market - ERIC, PG, BA, DOW, JCI, DAL, GD, NOC, EMC, MAN, SVU, TMO, TEL, PX, NSC, IR, APD, BIIB, RAI, FDML, R, AVY, OCR, GDI, DPS, OC, ABG, APH, BEAV, PII, AMTD
After Hours - AAPL, IM, SWY, QCOM, CBI, TXN, AIZ, FB, SYK, ORLY, RE, NXPI, USTR, LRCX, USTR, LRCX, TSCO, RJF, FLS, LPLA, RHI, CCI, OII, VAR, CTXS, ETFC, FFIV, ZNGA, ANGI
Thursday:
Pre Market - GM, CAJ, VZ, ABC, NVS, UPS, AET, CAT, AAL, MMM, AVT, AZN, TWC, RTN, FCX, NUE, LLY, DLPH, LUV, MO, PAG, WM, ETR, SWK, RS, CAM, CMS, GPI, CCE, HSY, WCC, CELG, DGX, BTU, DHI, UFS, NLSN, POT, HOT, JBLU, NBL, SCG, BMS,
After Hours - MSFT, AMZN, SBUX, LVS, WFT, CB, V, RGA, PFG, EMN, UHS, RSG, MAS, BRCM, NEM, BIDU, CINF, FSL, SPN, HBI, CERN, SPWR, DV, P,
Friday:
Pre Market - HMC, F, ABBV, CL, WHR, LEA, AON, VFC, DTE, COV, TYC, STT, ALV, WY, DAN, LH, ALK, LPNT, MCO, BKW

12:34PM Notable movers of interest (SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers
SNDK (83.67 +10.31%): Beat on EPS by $0.19, beat on revs; sees Q2 revs of $1.55-1.625 bln vs $1.58 bln consensus; reaffirmed FY14 revs of $6.4-6.8 bln vs $6.67 bln consensus; target raised to $125 from $85 at Credit Suisse; assumed with an Overweight at Piper Jaffray; tgt $85; target raised to $77 at Cowen; target raised to $90 at Needham; target raised to $97 at Pacific Crest.
BHI (69.41 +4.67%): Beat on EPS by $0.06, reported revs in-line.
MS (30.91 +3.41%): Beat on EPS by $0.08, beat on revs.

Large Cap Losers

ADS (250.81 -5.02%): Beat on EPS by $0.07, missed on revs; guided Q2 EPS below, revs above consensus; raised FY14 guidance.
FITB (20.85 -4.55%): Missed on EPS by $0.06.
UNH (75.7 -3.18%): Beat on EPS by $0.01, reported rev in-line; reaffirmed FY14 EPS guidance, revs guidance.

Mid Cap Gainers

SHLD (35.5 +5.65%): Director disclosed purchase of 475000 shares, worth total of $15.94 mln on 4/15 and 4/16.
PVTB (29.34 +5.2%): Beat on EPS by $0.03.
BWP (15.75 +4.72%): Upgraded to Overweight from Underweight at JP Morgan; tgt raised to $18 from $14.

Mid Cap Losers

CHMT (23.61 -6.35%): Platform Specialty Products (PAH) announced agreement to acquire agrochemicals business from Chemtura for ~ $1 bln.
WU (15.4 -4.04%): Trading lower following Wal-Mart (WMT) news: WMT introduced exclusive money transfer service, cut fees by up to 50% for customers.
STLD (18.15 -3.97%): Reported Q1 adj. earnings of $0.16 per share, $0.02 worse than consensus (GAAP EPS was $0.17 vs $0.16 consensus), missed on revs.

12:28PM Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (126) outpacing new lows (38) (SCANX) : Stocks that traded to 52 week highs: AA, AAV, ADM, AEP, AGN, AGRO, ALSN, ALV, AN, ANDE, ARCW, ASX, ATHL, ATO, AXAS, BAM, BBW, BDC, BHI, BIOF, BKH, BLL, BPO, BRK.A, BRK.B, CAR, CCK, CENX, CJES, CLB, CLR, CMS, CNX, CODE, CPE, CQP, CWEI, CXDC, CXO, DIOD, DTE, DVCR, DVN, E, ECA, EGY, EIX, EMN, ERF, ESCA, FANG, FNHC, FTR, GA, GAS, GLBZ, GLNG, HAL, HIL, HOLI, HP, IIIN, IM, ITC, JFBI, KMB, KNL, KONA, LNT, LYB, MINI, MPLX, MTRN, MYE, NED, NEE, NFX, NLP, NS, NU, ORAN, ORM, PBA, PDS, PEG, PFIS, PLXS, PPC, PTEN, RDS.B, REI, RES, RHP, ROIC, RRC, RUSHB, SAFM, SE, SEP, SGY, SLB, SMIT, SNA, SPCB, SPN, SPRO, SRE, ST, SWN, TFSL, TRGP, TSLX, TSM, UHAL, VET, VLP, VNO, VOCS, VVC, WBC, WEC, WIN, WLL, WR, WRES, WSO

Stocks that traded to 52 week lows: ACFN, AMBT, ARQL, AUY, AVP, AXGN, BIOC, CFFI, COCO, CWTR, CYH, DRD, EGLT, EVRY, GLMD, GYRO, MGI, NEWL, OIBR.C, OPWR, PMFG, QSII, QURE, RBCAA, RDC, RSH, SBY, SDRL, SIGM, SQBK, SSN, STRL, SWAY, TEAR, TEDU, TZOO, UNXL, ZNH

ETFs that traded to 52 week highs: DIG, EWT, FXB, IEO, IGE, IXC, IYE, OIH, USCI, XLE, XLU, XOP

ETFs that traded to 52 week lows: none
BlackBerry (BBRY) announced the launch of the BlackBerry Smartphone App Development Award for Canada-Wide Science Fair 2014

Huawei has designed TrueTouch Gen4 capacitive touchscreen controllers from Cypress Semiconductor (CY) into five of its newest smartphones.

7:38AM Fairchild Semi beats by $0.01, misses on revs; guides Q2 revs in-line (FCS) 13.52 : Reports Q1 (Mar) earnings of $0.04 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.03; revenues rose 0.3% year/year to $344.1 mln vs the $348.63 mln consensus.
GMs

Co reported first quarter adjusted gross margin of 30.3%, down 100 basis points from the prior quarter but 250 basis points higher than the first quarter of 2013.
Adjusted gross margin in past quarters excluded accelerated depreciation related to a line closure.

Guidance:

Co issues in-line guidance for Q2, sees Q2 revs of $355-375 mln, excluding non-recurring items, vs. $362.88 mln Capital IQ Consensus Estimate.
Co expects adjusted gross margin to be 31.0 to 32.0% due primarily to higher sales and factory loadings as well as improved product mix which all more than offsets the impact of our merit increase.

7:04AM Trina Solar announces grid connection for 23.8 MW PV projects in UK (TSL) 12.00 : Co announced two of its PV power plants in the United Kingdom have successfully completed connection to the grid. The company is an investor in and sole project developer for these projects, which have a total capacity of 23.77 MW. The two projects, which are located in Cornwall and Dorset, commenced construction in December 2013 and were completed on schedule in March 2014. The two projects were developed using Trina PC05A 255Wp modules and will receive 1.6 Renewables Obligation Certificates (ROCs), equivalent to GBP 42.02 per megawatt-hour (MWh). They are expected to generate 24,673MWh electricity annually, reducing over 16,542 tons of carbon dioxide emissions. The projects will be able to supply clean energy to approximately 7,477 local homes each year.

6:49AM Taiwan Semi beats by $0.13, reports revs in-line; guides Q2 revs above consensus (TSM) 20.15 : Reports Q1 (Mar) earnings of NT 1.85 per share, NT 0.13 better than the Capital IQ Consensus Estimate of $1.72; revenues rose 11.6% year/year to NT 148.22 bln vs the NT 147.78 bln consensus.

Co issues upside guidance for Q2, sees Q2 revs of NT 180-183 bln vs. NT 171.75 bln Capital IQ Consensus Estimate. Co sees Q2 Gross profit margin is expected to be between 47.5 % and 49.5%.
Gross margin for the quarter was 47.5%, operating margin was 35.4%, and net profit margin was 32.3%.
Shipments of 28-nanometer process technology accounted for 34% of total wafer revenues. 40/45-nanometer accounted for 21% of total wafer revenues.
Advanced technologies, defined as 40/45-nanometers and more advanced technologies, accounted for 55% of total wafer revenues.
"In the first quarter, we saw much stronger demand for our wafers across all segments but more pronounced in mobile related applications, than we had initially predicted in Januar...Driven by better than expected 4Q'13 business, IC companies have turned more positive on their 2014 outlook. Meanwhile, the low level of supply chain inventory has prompted the IC companies to begin restocking inventory actively. Thanks to the better performance and higher yield and reliability of our advanced technologies, we saw a strong rebound of demand for our leading nodes extending beyond the first quarter. Based on our current business outlook and exchange rate assumption of 1 US dollar to 30.10 NT dollars, management expects overall performance for second quarter 2014 to be as follows":

6:37AM General Electric beats by $0.01, reports revs in-line; 2014 framework unchanged (GE) 26.12 : Reports Q1 (Mar) earnings of $0.33 per share, $0.01 better than the Capital IQ Consensus of $0.32; revenues fell 2.2% year/year to $34.18 bln vs the $34.43 bln consensus.

Industrial sales of $24 billion increased 8% compared to the first quarter of 2013. GECC revenues of $10.5 billion decreased 8% from last year. Industrial segment profits rose 12% to $3.3 billion. Industrial segment margins improved 50 basis points over the prior-year period. Industrial segment revenues grew 8%, with organic growth of 8%. Growth market revenues were up 7% for the quarter, with double-digit growth in five of nine growth regions. Services revenues grew 3%, with double-digit growth in Aviation and Oil & Gas. Equipment revenues grew 12%, on strong new product introductions and solid share positions. The breadth of the GE portfolio was reflected in the quarter as the Company offset market volatility in Appliances, Healthcare, and Mining.
Infrastructure orders for the quarter were $23.7 billion, flat with the year-ago period. GE's backlog of equipment and services at the end of the quarter was $245 billion, with increases in every segment over the year-ago period.
GE Capital earnings were flat, with ENI (excluding cash and equivalents) at $374 billion at quarter-end, down $7 billion from last quarter. General Electric Capital Corporation's (GECC) estimated Tier 1 common ratio (Basel 1) rose 32 basis points to 11.4%, and net interest margin was strong at 4.9%. During the quarter, GECC paid $500 million in dividends to the parent.
Also during the quarter, GE filed a registration statement with the SEC for the IPO of its North American Retail Finance business, the first step in a planned, staged exit from that business. The Company made good progress in accelerating efforts to achieve its simplification goals.
GE is on track to achieve its goal of $1 billion or more in structural cost-out for the year. Industrial structural costs in the first quarter were down $254 million versus the prior-year period, driven by simplification initiatives and benefits from restructuring investments.
"We're off to a good start to the year, and our 2014 framework remains unchanged. The environment is consistent with our expectations, with a positive bias. The GE team is executing with strong organic growth, consistent margin enhancement, cash growth with disciplined allocation, and a stronger GE Capital. We are on track for our Retail Finance IPO and remain committed to a GE that has 70% of our earnings from the Industrial businesses. GE is in good shape."

SanDisk (SNDK) reported first quarter earnings of $1.44 per share, excluding non-recurring items, which is higher than expected, while revenues rose 12.8% year/year to $1.51 billion which is higher than expected. SanDisk reports Q1 non-GAAP gross margin of 51.2% vs guidance of 47-49%, compared to 40.5% in Q1 of prior year. "We delivered record first quarter results, driven by 61 percent growth in our SSD revenue and strong retail performance...We are excited by the momentum we are building in our business as we continue to execute on our growth initiatives." The company sees Q2 revenues of $1.55-1.625 billion with reaffirmed fiscal year 2014 $6.4-6.8 billion which his line with estimates. The company sees FY14 non-GAAP gross margin of 47-49% (raised from 45-48%), reflecting continued strengthening of product mix. Co sees same range for gross margin in Q2.

Google (GOOG) reported first quarter earnings of $6.27 per share, which is worse than expected, while revenues rose 19.1% year/year to $15.42 billion which is line with estimate. Sites Revenues- Generated revenues of $10.47 billion, or 68% of total revenues, in the first quarter of 2014. This represents a 21% increase over first quarter of 2013 sites revenues of $8.64 billion. Network Revenue- Partner sites generated revenues of $3.40 billion, or 22% of total revenues, in the first quarter of 2014. This represents a 4% increase over first quarter of 2013 network revenues of $3.26 billion. Other Revenues- Were $1.55 billion, or 10% of total revenues, in the first quarter of 2014. This represents a 48% increase over first quarter of 2013 other revenues of $1.05 billion. International Revenues- Revenues from outside of the United States totaled $8.76 billion, representing 57% of total revenues in the first quarter of 2014, compared to 56% in the fourth quarter of 2013 and 55% in the first quarter of 2013. Paid Clicks- Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our Network members, increased approximately 26% over the first quarter of 2013 and decreased approximately 1% over the fourth quarter of 2013. Cost-Per-Click- Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our Network members, decreased approximately 9% over the first quarter of 2013 and remained constant from the fourth quarter of 2013. TAC- Traffic acquisition costs, the portion of revenues shared with Google's partners, increased to $3.23 billion in the first quarter of 2014, compared to $2.96 billion in the first quarter of 2013. TAC as a percentage of advertising revenues was 23% in the first quarter of 2014, compared to 25% in the first quarter of 2013. Operating Expenses- Operating expenses, other than cost of revenues, were $5.34 billion in the first quarter of 2014, or 35% of revenues, compared to $4.07 billion in the first quarter of 2013, or 31% of revenues. Depreciation and loss on disposal of property and equipment and amortization expenses were $1.09 billion for the first quarter of 2014, of which $1.06 billion was related to Google, compared to $899 million in the first quarter of 2013. Of the $1.09 billion, $116 million was related to amortization of Motorola intangibles, which Google will retain subsequent to the disposal of Motorola Mobile. Cash Flow and Capital Expenditures Net cash provided by operating activities in the first quarter of 2014 totaled $4.39 billion, compared to $3.63 billion in the first quarter of 2013. In the first quarter of 2014, capital expenditures were $2.35 billion, the majority of which was for production equipment, data-center construction, and real estate purchases. Free cash flow, an alternative non-GAAP measure of liquidity, is defined as net cash provided by operating activities less capital expenditures. In the first quarter of 2014, free cash flow was $2.05 billion "We expect to continue to make significant capital expenditures." Cash As of March 31, 2014, cash, cash equivalents, and marketable securities were $59.38 billion, which excludes cash classified as held for sale, compared to $58.72 billion as of December 31, 2013.

IBM (IBM) reported first quarter earnings of $2.54 per share, which is line with estimates, while revenues fell 3.9% year/year to $22.48 billion which his line with estimates. Non-GAAP gross margin +90 bps tp 47.6%. Revenue: $22.5 billion, down 4%; down 1% adjusting for currency, excluding divested customer care outsourcing business: Software, Services and Global Financing each grew, adjusting for currency; Software up 2% as reported and adjusting for currency. Services down 2%; up 2% adjusting for currency and excluding divested customer care outsourcing business. Global Financing up 3%, up 6% adjusting for currency. Systems and Technology down 23% as reported and adjusting for currency; Services backlog of $138 billion, up 1% adjusting for currency and excluding divested customer care outsourcing business; Business analytics revenue up 5%, up 6 percent adjusting for currency; Cloud revenue up more than 50%: For cloud delivered as a service, first-quarter annual run rate of $2.3 billion doubled year to year. The company reaffirm guidance for the fiscal year 2014 with EPS of least $18.00, excluding non-recurring items which his higher than expected. Geographic Regions. The Americas' first-quarter revenues were $9.6 billion, a decrease of 4% (down 2%, adjusting for currency) from the 2013 period. Revenues from Europe/Middle East/Africa were $7.6 billion, up 4% (up 1%, adjusting for currency). Asia-Pacific revenues decreased 12% (down 6%, adjusting for currency) to $5.0 billion. OEM revenues were $355 million, down 17% compared with the 2013 first quarter. Growth Markets Revenues from the company's growth markets decreased 11% (down 5%, adjusting for currency). Revenues in the BRIC countries - Brazil, Russia, India and China - decreased 11% (down 6%, adjusting for currency).

[ReturntoSender]

InvestmentHouse Weekend Market Summary

http://www.investmenthouse.com/weekendmarketsummary.htm

- Despite earnings misses, enough good news to propel stocks higher in the bounce.
- NASDAQ beats the first test in the rebound as growth plays catch up to NYSE large caps.
- Where have all the revenues gone? With what the US economy used to be. Now a revenues miss is considered a beat just as a 1.5% GDP economy is considered good.
- Jobless claims hold just over 300K.
- Philly Fed posts a 7 month high.
- Still a split market.

For a second session stocks continued the upside, still moving higher off of the Tuesday reversal session. We even heard talk Thursday about how this move 'has legs.' Art Cashen said on CNBC that the liquidation selling seen over the past several weeks could be over. Art is a market sage and is often right. I was struck, however, about how it was Holy Thursday and Art is a Catholic. The time of renewed hope is upon us. Connections?

In any event, the market rallied. Futures were not good thanks to IBM and GOOGL earnings. Those were plain misses. Yet GOOGL was called a success by some on CNBC. Maybe it is and will prove to be a buying point. I know that BAC's results on Wednesday were also called a success though it fell short on revenues. I know CMG was called a success as its revenues missed. UNH, AXP, DD, CMG and many others, indeed TWO-THIRDS of those reporting thus far have missed the top line revenues. Sales are not growing. They are continuing the lack of growth for quarter, after quarter, after quarter.

But, in this '1.5% average GDP is a great' European-style economy, some fancy footwork by management (read layoffs, working existing employees more, cutting benefits) to beat the bottom line, the fact that sales CONTINUE to decline is apparently not a worry. As long as companies 'invest' in themselves with stock buy backs and dividend payments stock prices continue to rise. And our government wonders why jobs remain low. Come on now guys and gals in the government. You know your policies are anti-investment policies for industry and entrepreneurs. You know that is why there are woeful levels of job openings. But, if the government can play fiction with the facts why can't the companies? Monkey see, monkey do.

Yes 2/3 of the companies reporting have missed the top line with 51% beating on the bottom line. Success! What an economy!

With that selective cognition of the facts, stocks overcame early weakness and rallied into the afternoon session before a slight dip into the close That dip took DJ30 negative, but growth was back in front, playing catch up to the strong Wednesday performance by the NYSE large caps.

SP500 2.54, 0.14%
NASDAQ 9.29, 0.23%
DJ30 -16.31, -0.10%
SP400 0.23%
RUTX 0.54%
SOX 1.85%

Volume: +19% NYSE, +3.5% NASDAQ. It was Holy Thursday before the Easter weekend so volume is usually light, but this time it was expiration so a bit of a bump there.

A/D: 1.4:1 NYSE, 1.7:1 NASDAQ. Ho-hum, but that is okay after the surge on the Wednesday move.

Maybe the 304K jobless claims (up from 302K prior) and a solid 16.6 on the April Philly Fed PMI (a 7 month high versus the 8.6 expected) helped boost prices past some poor earnings by IBM. Along with all of those scintillating 'beats' CNBC and other networks talk about, the market had the fuel it needed to get home on Thursday with overall gains.

CHARTS

The indices reversed Tuesday and built onto the gains into the weekend. That sets the stage for a follow through session this week, a session of strong gains on higher volume. I always view this as the next step after the initial sprint, kind of like the second leg of a relay race: the first leg gets your position in the race and if there is a successful passing of the baton then the next leg of the race can continue.

NASDAQ passed its first test as it clear the 10 day EMA . . . by a gnat's butt. It was surging well on the day, easily topping that level and looking at the 20 day EMA. It suffered that late selling and barely hung onto the 10 day. Not a pillar of strength (keeping it biblical; I can do that as I went to Holy Thursday services last night), but managing to close out the reversal week upside. Kind of a bobble of the baton but they kept hold of it.

SP500: Doji on the session but held a gain for the week that took SP500 back up through key levels. Now will there be follow through?

RUTX: Small caps cracked the 10 day EMA as well, also giving back some late. Solid move off the 200 day SMA. For now, that is all it is.

SOX: After laying back, SOX made the break Thursday, gapping up off the 50 day EMA lateral move. Good action at the 50 day all week, it was just holding back in reserve. Nice solid upside break.

OTHER MARKETS

Euro/Dollar: Flat on the session as the dollar paused after the week of gains.

1.3815 versus 1.3815 versus 1.3814 versus 1.3820 versus 1.3883 versus 1.3886 euro versus 1.3855 versus 1.3797 versus 1.3742 versus 1.3701 versus 1.3712 versus 1.3760 versus 1.3794 versus 1.3779 versus 1.3752 versus 1.3748 versus 1.3788 versus 1.3823 versus 1.3842 versus 1.3794

Dollar/Yen: Dollar a bit stronger.

102.44 versus 102.27 versus 101.80 versus 101.72 versus 101.43 versus 102.00 versus 101.70 versus 102.59 versus 103.10 versus 103.24 versus 103.92 versus 103.76 versus 103.68 versus 103.21 versus 102.81 versus 101.24 versus 101.99 versus 102.26 versus 102.25 versus 102.25 versus

Bonds: Dove lower after a three week run that included a breakout. Still holding the breakout, indeed the 10 day EMA, but a big hit to end the week.

10 year: 2.72% versus 2.64% versus 2.62% versus 2.64% versus 2.62% versus 2.65% versus 2.69% versus 2.68% versus 2.70% versus 2.73% versus 2.79% versus 2.80% versus 2.75% versus 2.73% versus 2.71% versus 2.68% versus 2.70% versus 2.75% versus 2.73% versus 2.77%

Oil: 103.85, +0.12. Right back to the February high at 105. Oil is pressing for a breakout. Joy.

Gold: 1294.20, -9.2. Slipped through the 200 day SMA after the sharp break lower Tuesday. Struggling to hold the move.

MARKET STATISTICS

NASDAQ
Stats: +9.29 points (+0.23%) to close at 4095.52
Volume: 1.894B (+3.61%)

Up Volume: 1.2B (-290M)
Down Volume: 732.04M (+388.16M)

A/D and Hi/Lo: Advancers led 1.72 to 1
Previous Session: Advancers led 2.44 to 1

New Highs: 52 (+19)
New Lows: 37 (+8)

S&P
Stats: +2.54 points (+0.14%) to close at 1864.85
NYSE Volume: 727M (+18.79%)

A/D and Hi/Lo: Advancers led 1.39 to 1
Previous Session: Advancers led 3.82 to 1

New Highs: 141 (+23)
New Lows: 69 (+4)

DJ30
Stats: -16.31 points (-0.1%) to close at 16408.54

SENTIMENT INDICATORS

VIX: 13.36; -0.82
VXN: 19.39; -1.02
VXO: 12.8; -0.73

Put/Call Ratio (CBOE): 0.85; -0.06

Bulls and Bears:

Bulls fade right back: 50.05 versus 54.6 versus 50.5 versus 54.6.

Bears bounce higher: 20.6 versus 18.6 versus 18.6 versus 7 of 8 weeks at mid-17.

Theory: When everyone is bullish and has put all their capital to work, where does the ammunition to drive the market come from? There is always new money to start a new year. After that is used will more money be coming? That is the question.

Note the extreme bullishness: it was this high in 2007 at the crash, in early 2005 as well.

Bulls: 50.5 versus 54.6 versus 50.5
54.7% 52.0% 54.6% 53.5% 46.5% 41.8% 45.9% 53.1% 57.6 56.1 60.6% 61.6% 60.0% 58.2% 57.1% 55.7% 53.6% 52.6% 55.2% 52.6 49.5 42.3% 45.4 46.4% 44.3% 42.3% 37.1% 37.1% 38.1% 43.3%.

Background: Last undercut 35%, the threshold for bullishness, in early June 2012.

Bears: 20.6 versus 18.6 versus 18.6
17.5% 17.4% 15.1% 17.2% 17.2% 17.4% 17.4% 15.3% 15.1 15.3% 15.2% 15.2% 14.0 14.3 14.3% 14.4 15.5 15.5% 15.6% 16.5% 18.5 21.6% 20.6% 18.6% 20.6% 21.6% 22.7% 23.7% 23.8% 21.6%.

Background: Over 35% is the threshold to be really be a good upside indicator. For reference, bearishness hit a 5 year high at 54.4% the last week of October 2008. The move over 50 took bearish sentiment to its highest level since 1995. Extreme negative sentiment. Prior levels for comparison: Bearishness peaked at 37.4% in September 2007. It topped the June 2006 peak (36%) on that run. That June peak eclipsed the March 2006 high (33%) and well above the 2005 highs that spawned new rallies (30% in May 2005, 29.2% in October 2005). That was a huge turn, unlike any seen in recent history.

MONDAY

This week is the lick log. Stocks have bounced off the selling with the Tuesday reversal, and Wednesday to Thursday brought them higher. NASDAQ and growth joined more on Thursday with the SOX and smaller issues really coming along. Growth in terms of NASDAQ and RUTX is still iffy; SOX looks solid. The NYSE large caps still look better than the growth areas in terms of leaders and money. Lick log indeed.

We have both some upside plays and downside. The upside are designed to play the bounce without necessarily needing a new breakout. Such is playing a bounce in the market that is not that certain. If it turns out to be a new rally, beautiful as we make even more on our plays. If it is just a bounce, we take our gain on plays designed to give profit without having to break a lot of ice to get where we want to go.

Also some downside as there are stocks that bounced with the market, but bounced right into resistance in patterns that need help. The market remains split in growth/large cap NYSE, and in upside and downside. If the bounce fizzles, if the follow through passing of the baton is bobbled and dropped, then those plays are ready. Heck, they may even be ready if the market does make a follow through given the bifurcation that still exists.

We go into the week with no expectations or hope of a rally to new highs, Easter renewal or not. We see upside possibilities, we see downside. Much of the upside we see is areas we really don't like to play, but if the upside keeps narrowing that may be all there is left. At least we can play downside as well; it is faster anyway, right?

Have a great Easter!

SUPPORT AND RESISTANCE

NASDAQ: Closed at 4095.52

Resistance:
The 10 day EMA at 4094 is being tested
4104 is the lower gap point from 12/20/13
4131 is the March 2014 low
The 50 day EMA at 4175
4240 is the lower November 2012 trendline
4246.55 is the January 2014 peak
4277 is the March lower gap point
4289 is the July 2000 recovery high
4342 is the upper channel line for the November 2012 to present uptrend.
4372 is the March 2014 high

Support:
4070 is the series of highs from late November/early December
3991 is the prior November 2013 high and the post-bear market high.
3968 is the February 2014 low
The 200 day SMA at 3949
3855 is the November low
3819 is the early October high
3801 is the September 2013 high.
The October low at 3750
3697 is the August high and a prior post-bear market high in the recovery.

S&P 500: Closed at 1864.85

Resistance:
1883.57 is the recent all-time high hit in early March.
1897 is the all-time high hit in April 2014

Support:
The December and January highs at 1848
1856 is the December 2012 up trendline
The 50 day EMA at 1848
1808 is the November and December 2013 twin peaks
1809 is the lower trendline from 11/2012
1775.22 is the October prior all-time high
1768 is the December 3013 low
The 200 day SMA at 1766
1738 is the February 2014 low
1730 is the September 2013 peak
1710 is the August 2013 peak.
1698 to 1700 are the July and August interim highs
1687 is the May high and post-bear market high
1685 is the mid-August 2013 upper gap point
1657 is the late August upper gap point
1654 is the June 2013 peak
1646 is the October 2013 low just before the surge into early 2014
1627 is the August 2013 low

Dow: Closed at 16,408.54

Resistance:
16,506 is the March 2014 peak
16,595 is a lower trendline off the 11/2012 low
16,589 is the December 2013 all-time high
16,632 is the April 2014 all-time high

Support:
16,257 is the January 2014 low
The 50 day EMA at 16,251
16,179 is the November 2013 peak.
The 200 day SMA at 15,774
15,739 is the December 2013 low
15,696 is the September 2013 peak
15,659 is the August 2013 peak
15,542 is the May 2013 intraday high
15,340 is the February 2014 low
15,318 is the June closing high
15,050 from the August 2013 interim recovery high
14,888 is the April peak and prior all-time high
14,844 is the June intraday low
14,762 is the August 2013 low
14,551 is the June 2013 intraday low on the selloff (14,659 closing)

Economic Calendar

April 17 - Thursday
- Initial Claims, 04/12 (8:30): 304K actual versus 312K expected, 302K prior (revised from 300K)
- Continuing Claims, 04/05 (8:30): 2739K actual versus 2800K expected, 2750K prior (revised from 2776K)
- Philadelphia Fed, April (10:00): 16.6 actual versus 8.6 expected, 9.0 prior
- Natural Gas Inventor, 04/12 (10:30): 24 bcf actual versus 4 bcf prior

April 21 - Monday
- Leading Indicators, March (10:00): 0.8% expected, 0.5% prior

April 22 - Tuesday
- FHFA Housing Price I, February (9:00): 0.5% prior
- Existing Home Sales, March (10:00): 4.60M expected, 4.60M prior

April 23 - Wednesday
- MBA Mortgage Index, 04/19 (7:00): 4.3% prior
- New Home Sales, March (10:00): 455K expected, 440K prior
- Crude Inventories, 04/19 (10:30): 10.013M prior

April 24 - Thursday
- Initial Claims, 04/19 (8:30): 312K expected, 304K prior
- Continuing Claims, 04/12 (8:30): 2750K expected, 2739K prior
- Durable Orders, March (8:30): 2.0% expected, 2.2% prior
- Durable Goods -ex tr, March (8:30): 0.5% expected, 0.1% prior (revised from 0.2%)
- Natural Gas Inventor, 04/19 (10:30): 24 bcf prior

April 25 - Friday
- Michigan Sentiment - Final, April (9:55): 82.6 expected, 82.6 prior

[ReturntoSender]

From Briefing.com (The Wennerstrom Innovator Award goes to AAPL) LOL RtS: 4:42PM Apple beats by $1.45, beats on revs on upside iPhone shipments; guides Q3 revs, gross margin in-line; raises dividend 8% (plans to do so annually), raises buyback 50% to $90 bln, announced 7:1 stock split (AAPL) 524.75 -9.95 : Reports Q2 (Mar) earnings of $11.62 per share, $1.45 better than the Capital IQ Consensus Estimate of $10.17; revenues rose 4.7% year/year to $45.65 bln vs the $43.59 bln consensus; gross margins of 39.3% vs. Street expectations near 37.5% (guidance 37-38%)... Buybacks added $0.81/share to EPS -- analyst models include buybacks).

Co issues in-line guidance for Q3, sees Q3 revs of $36-38 bln vs. $37.79 bln Capital IQ Consensus; sees Q3 gross margins of 37-38% versus Street expectations of just under 37.5%.
iPhone shipments 43.7 mln vs. ~38 mln estimates
iPad 16.4 mln vs. 19 mln est
Mac 4.13 mln vs. 4 mln est
Co announced that its Board of Directors has authorized another significant increase to the Company's program to return capital to shareholders. The co expects to utilize a total of over $130 billion of cash under the expanded program by the end of calendar 2015.
As part of the program, the Board has increased its share repurchase authorization to $90 bln from the $60 bln level announced last year. The Company expects to continue to utilize about $1 billion annually to net-share-settle vesting restricted stock units.
Co raises quarterly dividend 8% to $3.29 per common share, payable on May 15, 2014 to shareholders of record as of the close of business on May 12, 2014.
The co also plans to increase its dividend on an annual basis. With annual payments of $11 billion, Apple is among the largest dividend payers in the world.
Co also announced a 7:1 stock split.

5:56PM Teradyne beats by $0.05, beats on revs; guides Q2 EPS below consensus, revs in-line (TER) 19.18 -0.20 : Reports Q1 (Mar) earnings of $0.11 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.06; revenues rose 12.5% year/year to $321.01 mln vs the $315.74 mln consensus.

Bookings in the first quarter of 2014 were $450 million of which $366 million were in Semiconductor Test, $57 million in Wireless Test, and $27 million in System Test.

Co issues mixed guidance for Q2, sees EPS of $0.36-0.43, excluding non-recurring items, vs. $0.49 Capital IQ Consensus Estimate; sees Q2 revs of $460-490 mln vs. $475.18 mln Capital IQ Consensus Estimate.

4:37PM Texas Instruments clarification: Q2 GAAP EPS guidance of $0.55-0.63 was above the $0.52 GAAP Capital IQ Consensus Estimate (TXN) 46.46 -0.13 : We earlier incorrectly compared the guidance to a non-GAAP estimate. The prior comment has been edited.

4:32PM Texas Instruments beats by $0.03, reports revs in-line; guides Q2 EPS above consensus, revs in-line (TXN) 46.46 -0.13 : Reports Q1 (Mar) earnings of $0.44 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.41; revenues rose 3.4% year/year to $2.98 bln vs the $2.96 bln consensus.

Co issues mixed guidance for Q2, sees EPS of $0.55-0.63 vs. $0.52 Capital IQ Consensus Estimate; sees Q2 revs of $3.14-3.40 bln vs. $3.15 bln Capital IQ Consensus Estimate.

4:24PM Xilinx misses by $0.02, reports revs in-line; guides Q1 revs in-line (XLNX) : Reports Q4 (Mar) earnings of $0.53 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.55; revenues rose 16.1% year/year to $617.8 mln vs the $612.12 mln consensus.

Co issues in-line guidance for Q1, sees Q1 revs "up 0% to 4% sequentially" (roughly $618-642 mln) vs. $638.83 mln Capital IQ Consensus Estimate.

4:22PM Lam Research beats by $0.10, reports revs in-line; guides Q4 above consensus (LRCX) 52.25 -0.80 : Reports Q3 (Mar) non-GAAP earnings of $1.26 per share, $0.10 better than the Capital IQ Consensus Estimate of $1.16; revenues rose 38.7% year/year to $1.23 bln vs the $1.22 bln consensus.

Co issues upside guidance for Q4, sees EPS of $1.14-1.28 bln, excluding non-recurring items, vs. $1.09 Capital IQ Consensus Estimate; sees Q4 revs of $1.235-1.245 bln vs. $1.16 bln Capital IQ Consensus Estimate.

"We began 2014 by delivering another solid quarter with record shipments, record revenue, sequential operating margin expansion and very strong free cash flow," stated Martin Anstice, Lam Research's president and chief executive officer. "The consistency of our results reinforces the potential to deliver sustained outperformance through solid execution of our growth strategy. We believe that our product portfolio combined with the scale of our new technology offerings create a unique opportunity for Lam through the multi-patterning, 3D device and advanced packaging industry transitions. Together this combination of capability and opportunity underscores our commitment to deliver growth and value for our customers and our shareholders alike."

4:14PM Qualcomm beats by $0.09, misses on revs; guides Q3 EPS in-line, revs in-line; guides FY14 EPS in-line, revs in-line (QCOM) 80.71 +0.10 : Reports Q2 (Mar) earnings of $1.31 per share, $0.09 better than the Capital IQ Consensus Estimate of $1.22; revenues rose 4.0% year/year to $6.37 bln vs the $6.49 bln consensus.

Co issues in-line guidance for Q3, sees EPS of $1.15-1.25 vs. $1.25 Capital IQ Consensus Estimate; sees Q3 revs of $6.2-6.8 bln vs. $6.59 bln Capital IQ Consensus Estimate.
Co issues in-line guidance for FY14, sees EPS of $5.05-5.25 vs. $5.10 Capital IQ Consensus Estimate (prior forecast $5.00-5.20); sees FY14 revs of $26.0-27.5 bln vs. $26.8 bln Capital IQ Consensus Estimate (prior forecast $26-27.5 bln.)
2014 guidance includes benefit of $2 bln of stock repurchases planned over remainder of year.

4:10PM Facebook beats by $0.10, beats on revs (FB) 61.36 -1.67 : Reports Q1 (Mar) earnings of $0.34 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.24; revenues rose 71.6% year/year to $2.5 bln vs the $2.35 bln consensus.

Daily active users (DAUs) were 802 million on average for March 2014, an increase of 21% year-over-year. Mobile DAUs were 609 million on average for March 2014, an increase of 43% year-over-year.
Monthly active users (MAUs) were 1.28 billion as of March 31, 2014, an increase of 15% year-over-year. Mobile MAUs were 1.01 billion as of March 31, 2014, an increase of 34% year-over-year.
Revenue for the first quarter of 2014 totaled $2.50 billion, an increase of 72%, compared with $1.46 billion in the first quarter of 2013. Revenue from advertising was $2.27 billion, an 82% increase from the same quarter last year. Mobile advertising revenue represented approximately 59% of advertising revenue for the first quarter of 2014, up from approximately 30% of advertising revenue in the first quarter of 2013.
For the first quarter of 2014, GAAP income from operations was $1.08 billion, up 188% compared to $373 million in the first quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP income from operations for the first quarter of 2014 was $1.37 billion, up 144% compared to $563 million for the first quarter of 2013.
GAAP operating margin was 43% for the first quarter of 2014, compared to 26% in the first quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 55% for the first quarter of 2014, compared to 39% for the first quarter of 2013.

CFO Transition
Facebook today also announced that David Ebersman has informed the company of his intention to step down as chief financial officer after serving in the position for almost five years. On June 1, 2014, he will be succeeded as CFO by David Wehner, currently Facebook's Vice President, Corporate Finance and Business Planning. Ebersman will remain with the company through September to ensure a seamless transition of his responsibilities. Wehner joined Facebook in November 2012 from Zynga, where he served as CFO.

4:08PM Ingram Micro misses by $0.05, reports revs in-line, reaffirms FY rev guidance (IM) 30.25 -0.53 : Reports Q1 (Mar) earnings of $0.43 per share, excluding non-recurring items, $0.05 worse than the Capital IQ Consensus Estimate of $0.48; revenues rose 1.2% year/year to $10.38 bln vs the $10.42 bln consensus. For Q2, co expects revenue to increase YoY in the low- to mid-single digits.
"We had a good start to 2014, as we continued our trajectory of strong year-over-year gross margin expansion, while delivering top line growth consistent with sequential historical seasonality and in-line with our expectations. We remain confident in our expectations for full year 2014 worldwide revenue growth in the low- to mid- single-digits, in-line with overall global IT spending, and continued improvement in operating profitability."

4:03PM Ingram Micro Selected to provide mobility distribution and supply chain solutions to key Verizon Wireless (VZ) dealers (IM) 30.27 -0.51 : IM announced it has entered into a strategic sourcing and integrated supply chain services agreement with the 360 Group, a consortium of four of Verizon Wireless' largest national dealers including A Wireless, Diamond Wireless, Go Wireless and Moorehead Communications (dba as TCC).

Under the terms of the multi-year agreement, Ingram Micro Mobility has been named the preferred handset distributor and services provider for these key Verizon Wireless retailers.
As part of the agreement, Ingram Micro Mobility will integrate directly into more than 1,750 points of sale and will provide the 360 Group with a suite of industry-leading supply chain services, including supply chain management, strategic sourcing, device lifecycle management, logistics services, and reverse logistics and demand planning services.
Services under the agreement are expected to begin in the second quarter of 2014.
Ingram Micro Mobility will be integrated directly into the point of sale system of each of the 360 Group members. This integration is expected to enable the company to be highly efficient and productive in its services and delivery processes, which will help drive optimal device availability and inventory management, while reducing inventory obsolescence.

4:03PM TriQuint Semi beats by $0.05, reports revs in-line; guides Q2 EPS above consensus, revs above consensus (TQNT) : Reports Q1 (Mar) loss of $0.06 per share, $0.05 better than the Capital IQ Consensus Estimate of ($0.11); revenues fell 3.6% year/year to $177.6 mln vs the $176.2 mln consensus. Co issues upside guidance for Q2, sees EPS of $0.06-0.08 vs. $0.04 Capital IQ Consensus Estimate; sees Q2 revs of $215-225 mln vs. $200.77 mln Capital IQ Consensus Estimate.

4:10 pm : The stock market finished the Wednesday session on a modestly lower note, but it is worth mentioning today's retreat took place after six consecutive gains. The Dow Jones Industrial Average (-0.1%) and S&P 500 (-0.2%) settled not far below their flat lines, while the Nasdaq Composite (-0.8%) lagged throughout the session.

Equity indices started the day in the red, with the Nasdaq showing early weakness as large cap tech names and biotechnology weighed. The technology sector (-0.9%) slumped amid profit-taking in listings like Apple (AAPL 524.75, -6.95), Google (GOOG 526.94, -7.87), Microsoft (MSFT 39.69, -0.30), and Intel (INTC 26.75, -0.09), while biotech names retreated following quarterly reports from three major industry players.

Amgen (AMGN 113.32, -5.98) and Biogen (BIIB 306.75, +0.55) reported below-consensus results, while Gilead Sciences (GILD 73.86, +1.00) handily beat estimates. For its part, the iShares Nasdaq Biotechnology ETF (IBB 230.99, -3.73), which includes the three components among its top five holdings, lost 1.6% and settled just above its 20-day moving average. The broader health care sector (-0.5%), meanwhile, ended among the laggards.

Similar to health care, other heavily-weighted groups like consumer discretionary (-0.5%) and technology (-0.9%) weighed on the broader market, while financials (+0.2%) outperformed modestly.

The discretionary space suffered from sector-wide losses that included a 5.2% drop in the shares of Netflix (NFLX 353.50, -19.40) that took place after Amazon.com (AMZN 324.58, -4.74) announced it has secured a partnership agreement with HBO. Homebuilders also weighed on the sector after the New Home Sales report for March missed estimates. The iShares Dow Jones US Home Construction ETF (ITB 23.33, -0.37) lost 1.6%.

On the upside, energy (+0.5%) and industrials (+0.4%) spent the entire session in the green. Energy rallied even as crude oil slipped 0.2% to $101.47/bbl, while the industrial sector was underpinned by above-consensus results reported by Boeing (BA 130.63, +3.08). Transports also outperformed, but the Dow Jones Transportation Average (+0.1%) retreated from its best level of the session into the close. Delta Air Lines (DAL 37.09, +2.14) was a notable standout, soaring 6.1% after beating bottom-line estimates.

With stocks ending in the red, the CBOE Volatility Index (VIX 13.32, +0.13) inched higher, but remained near the lowest levels of the year.

Treasuries posted modest gains as the 10-yr note added six ticks, sending its yield lower by three basis points to 2.69%.

Trading volume was on the light side once again with less than 650 million shares changing hands at the NYSE.

Today's economic data focused on housing:

The weekly MBA Mortgage Index fell 3.3% to follow last week's increase of 4.3%.
New home sales declined 14.5% in March from an upwardly revised 449,000 (from 440,000) in February to 384,000. The Briefing.com consensus expected home sales to increase to 455,000. March sales were the lowest since 373,000 new homes were sold in July 2013. Winter weather conditions, which were unduly blamed for softness across the economy, again showed little effect in the new home sector. The return to more normal temperatures, which should have boosted sales from pent up demand, resulted in the weakest demand since the middle of last year.

Tomorrow, weekly initial claims and March Durable Orders will be reported at 8:30 ET.

S&P 500 +1.5% YTD
Dow Jones Industrial Average -0.5% YTD
Nasdaq Composite -1.2% YTD
Russell 2000 -1.3% YTD

DJ30 -12.72 NASDAQ -34.49 SP500 -4.16 NASDAQ Adv/Vol/Dec 835/1.62 bln/1828 NYSE Adv/Vol/Dec 1492/648.4 mln/1573

3:35 pm :

June gold rose for the first time in four sessions as economic data showed that new home sales declined 14.5% in March from an upwardly revised 449K (from 440K) in Feb to 384K. The Briefing.com consensus expected home sales to increase to 455K. The yellow metal brushed a session high of $1287.70 per ounce in early morning action and settled with a 0.3% gain at $1284.80 per ounce.
May silver also traded in positive territory today, climbing as high as $19.49 per ounce. It traded near the $19.42 per ounce level in afternoon action and settled with a 0.4% gain at $19.44 per ounce.
June crude oil dipped to a session low of $101.28 per barrel following inventory data that showed a build of 3.5 mln barrels for the week ending Apr 18 when consensus called for a smaller build of 2.3-3.0 mln barrels. It then oscillated between positive and negative territory and eventually settled at $101.47 per barrel, or 0.2% lower.
May natural gas chopped around in positive territory for most of the session, rising as high as $4.78 per MMBtu in morning action. It sold off into the red as it headed into the close and settled 0.2% lower at $4.73 per MMBtu.

12:26PM Notable movers of interest (SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

FTI (58.3 +5.20%): Beat quarterly EPS by $0.07 ($0.57 vs $0.50 estimate), revs rose 10.8% yoy to $1.82 bln vs $1.81 bln estimate; sees FY14 EPS of $2.55-2.75
DAL (36.63 +4.81%): Beat quarterly EPS by $0.05 ($0.33 ex items vs $0.29 estimate), revs rose 4.9% yoy to $8.92 bln bs $8.93 bln estimate; traffic increased 3.5% on a 1.7% increase in capacity
ILMN (154.95 +4.71%): Beat quarterly EPS by $0.02 ($0.46 ex items vs $0.44 estimate), revs rose 27.2% yoy to $421 mln vs $391.66 mln estimate; sees FY14 EPS of $2.10-2.23 ex items vs $2.06 estimate, rev growth of 21-23% (~$1.719-1.747 bln) vs $1.68 bln estimate

Large Cap Losers

ISRG (380.77 -9.84%): Reported Q1 earnings of $1.13 per share, revs fell 24.0% yoy to $464.7 mln vs $465.07 mln estimate; target lowered to $515 from $555 at ISI Group, to $465 from $595 at Jefferies, to $443 from $490 at Leerink Partners, to $403 from $423 at Canaccord Genuity, to $470 from $525 at WallachBeth
VMW (95.5 -9.18%): Beat quarterly EPS by $0.01 ($0.80 vs $0.79 estimate), revs rose 14.2% yoy to $1.36 bln vs $1.35 bln estimate; sees Q2 revs of $1.425-1.625 bln vs $1.44 bl estimate; reaffirmed FY14 revs of $5.94-6.10 bln vs $6.03 bln estimate
ERIC (12.26 -5.69%): Missed quarterly EPS by SEK 0.03 (SEK 0.90 vs SEK 0.93 estimate), revs fell 8.7% yoy to SEK 47.5 bln vs SEK 51.4 bln estimate

Mid Cap Gainers

SPWR (32.16 +9.50%): Announced it will team up with Google to finance $250 mln in residential solar lease projects; upgraded to Buy from Underperform at BofA/Merill; upgraded to Buy from Hold at Deutsche Bank
WWD (45.15 +9.06%): Beat quarterly EPS by $0.15 ($0.66 vs $0.51 estimate), revs fell 0.6% yoy to $482.5 mln vs $491.07 mln estimate; reaffirmed FY14 EPS of $2.10-2.30 vs $2.16 estimate, revs of $1.95-2.05 bln vs $2 bln estimate
MAN (84.24 +8.17%): Beat quarterly EPS by $0.18 ($0.86 vs $0.68 estimate), revs rose 2.9% yoy to $4.9 bln vs $4.83 bln estimate; sees Q2 EPS of $1.26-1.34 ex items vs $1.21 estimate

Mid Cap Losers

CREE (51.99 -10.44%): Beat quarterly EPS by $0.01 ($0.39 vs $0.38 estimate), revs rose 16.1% yoy to $405.2 mln vs $407.45 mln estimate; gross margin decreased 50 basis points from prior quarter; sees Q4 EPS of $0.38-0.44 ex items vs $0.44 estimate, revs of $430-460 mln vs $434.70 mln estimate; target lowered to $57 from $59 at Northland Capital; target lowered to $62 from $66 at UBS
IGT (12.65 -10.13%): Beat quarterly EPS by $0.01 ($0.20 vs $0.19 estimate), revs fell 14.5% yoy to $512.8 ml vs $495.41 mln estimate; reaffirmed FY14 EPS of $1.00-1.10 ex items vs $1.03 estimate
FDML (16.69 -10.12%): Missed quarterly EPS by $0.06 ($0.27 vs $0.33 estimate), revs rose 7.2% yoy to $1.78 bln vs $1.81 bln estimate

11:56AM Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (145) outpacing new lows (18) (SCANX) : Stocks that traded to 52 week highs: AAV, ABG, ALK, ANDE, APH, ARCW, ARCX, ASX, ATO, AVA, AWK, BANF, BAS, BHI, BIG, BIOF, BKH, BRK.A, BRK.B, BXE, BXP, CAT, CBPO, CFX, CHDX, CJES, CLCT, CLR, CNI, CNL, CRK, CSL, CSTM, CWEI, CXDC, CXP, DAL, DOV, DPS, DVCR, DVN, DY, DYN, EDE, EDN, EGAS, ENBL, ENG, EOG, EQM, EQT, ERF, ESTE, EXH, FN, FTK, GFN, GGAL, HA, HAL, HAR, HES, HIL, HP, ICGE, IRS, JJSF, KEG, KFS, KND, LAMR, LSI, MAR, MDU, MEMP, MEP, MINI, MPET, MPLX, MRH, MTDR, MTR, MU, NBR, NS, NSH, NVS, OCLR, PAC, PDS, PEBO, PES, PF, PFIE, PPC, PPL, PSX, QTS, R, RDNT, RE, RES, REV, RHI, RHP, RNR, RRC, RUBI, SAIC, SAL, SANM, SBSI, SD, SGY, SKX, SLB, SLCA, SLGN, SNA, SPCB, STAA, STS, SU, SWKS, SWN, TI, TNP, TOT, TPC, TRGP, TTI, UGI, UHAL, UNT, UPL, UTSI, VLP, VVC, WBC, WES, WFT, WRES, XEC, XEL, YUM

Stocks that traded to 52 week lows: AMRK, AQXP, AXGN, CACH, CREE, CTC, DARA, FLXN, IGT, INGN, LQDT, PBPB, QSII, SOQ, TGE, ZA, ZIXI, ZNH

ETFs that traded to 52 week highs: DBA, DIG, DVY, GULF, IEO, IGE, IOO, IXC, IYE, IYT, JO, MES, OIH, XES, XLE, XOP

ETFs that traded to 52 week lows: none


8:32AM SunPower and Google (GOOG) team up to finance $250 million in residential solar lease projects (SPWR) 29.37 : Co announced a new program that will provide financing to support ~ $250 mln of residential solar lease projects. Both companies are investing in the program, with Google committing up to $100 mln and SunPower committing ~$150 mln. Thousands of homeowners are expected to finance solar power systems through SunPower solar leases as a result of this program, joining ~20,000 Americans already leasing from SunPower

Axcelis Technologies (ACLS) received a follow-on order for the Optima HDx high current implanter from a leading chipmaker located in the Asia Pacific region

Altera (ALTR) announced the demonstration of its FPGA technology based on Intel's (INTC) 14 nm Tri-Gate process. The 14 nm-based FPGA test chips incorporate key intellectual property components - transceivers, mixed-signal IP and digital logic - used in Stratix 10 FPGAs and SoCs.

8:02AM SunEdison announces that it has closed on financing for two solar power plants (SUNE) 20.06 : Co announces that it has closed on financing for two solar power plants to be built in Ontario, Canada. Both plants should be operational by the end of 2014. The solar power plants will be composed of over 100,000 SunEdison Silvantis Photovoltaic Solar Modules, which will be manufactured in the province of Ontario.

7:02AM Entegris misses by $0.01, misses on revs; guides Q2 EPS below consensus, revs below consensus (ENTG) 12.36 : Reports Q1 (Mar) earnings of $0.12 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.13; revenues rose 0.4% year/year to $165.8 mln vs the $171.83 mln consensus. Co issues downside guidance for Q2, sees EPS of $0.10-0.14, excluding non-recurring items, vs. $0.15 Capital IQ Consensus Estimate; sees Q2 revs of $165-175 mln vs. $180.24 mln Capital IQ Consensus Estimate.

6:58AM EMC reports EPS in-line, revs in-line; lowers FY14 EPS, raises FY14 rev guidance slightly; raises dividend 15% (EMC) 26.78 : Reports Q1 (Mar) adj. earnings of $0.35 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.35; revenues rose 1.7% year/year to $5.48 bln vs the $5.43 bln consensus.

Co issues guidance for FY14, lowers adj. EPS to $1.90 from $1.95 vs. $1.94 Capital IQ Consensus Estimate; raises FY14 revs to $24.575 bln from $24.5 bln vs. $24.51 bln Capital IQ Consensus Estimate.
In addition, EMC's Board of Directors approved a 15% increase in the quarterly cash dividend paid to EMC shareholders. The first increased dividend of $0.115 per share of common stock will be paid on July 23, 2014 to shareholders of record as of the close of business on July 1, 2014.

SanDisk Corporation (SNDK) announced the availability of its 1Z-nanometer technology, the most advanced NAND flash process node in the world.

[ReturntoSender]

Bert Dohmen: "This Is Very Much Like 2008

"http://www.financialsense.com/contributors/bert-dohmen/very-much-like-2008

Well-known market timer Bert Dohmen said the directionless behavior of the major indexes, like the Dow (DIA) and the S&P 500 (SPY), over the past several months reflect a top in the market. He also cited slowing economic growth in the U.S. and a “monumental credit crunch” in China as his main two concerns in a recent interview with Financial Sense Newshour.

The market has been trading up and down for the past several months and really going nowhere. From your perspective, do you think we are seeing a consolidation or more of a topping process?

"This is typically what happens at a market top. You get this big churning up and down, up and down, until finally the market goes where it wants to go, and that's downward. And this churning action is really produced by the big money in the business: the big hedge funds, the big trading operations, and so on. They have to sell their large positions and that's being done. They sell a bunch of them…prices [go] back up again so that the prices get more attractive for them to sell. So you get this pattern of rising volume on declines and declining volume on rises, and that is what we call a distribution pattern. That means that stocks are being sold by the big smart money to the naive money, which is the typical money manager. So until they are finally rid of their whole load of stocks, and they are nicely positioned on the short side…then it can just fall by its own weight. In my opinion, that's where we are now."

What are your main concerns right now for the U.S.?

"Housing sales are really concerning, I think, because both new home sales and…existing home sales are down at an annualized rate of 24%. That's quite a bit. Now this is at a time when there's a real shortage of homes supposedly out there because nothing has been built for 5 years. So if you have low housing inventory and then you get low demand, that's not very good for the market. It really shows you that the market is weak. Now the homebuilders, of course, they're still out there raising prices, which diminishes demand even more. Maybe that's why we're seeing a decline in the new homes sales because they raised prices too fast and we're not going to pay those prices. It also means that banks are not making mortgage loans. So this is concerning. The opinion on Wall Street—probably 95% of all the economists you see in the news—they will tell you the economy is strengthening or will strengthen this year. Our opinion since late last year is that 2014 will see the economy getting weaker and weaker and possibly skirting a recession. And right now it seems that our forecast is on track from everything that we look at. The surprises are really on the negative side. But the economists are not recognizing it. This is very much like 2008.”

Outside of the U.S., what major problems do you see weighing on the market?

“China is having an enormous monumental credit crunch. No one can get a loan over there unless you are an SOE, which means a government owned company. If you're owned by the government, you're controlled by big party officials who are very well related and they can still get loans. No one else can... A China recession is now in progress—and I'm talking about a private sector recession, not the manipulated numbers that you see in GDP coming out of China. They include the government and they include big fudge factors as well. The private sector in China is in a recession right now. The ripples from that will go across the world—Asia first, of course, and then everywhere else.”

So you see a lot of headwinds facing the market right now. Are there any tailwinds or positives that could change your view?

"The potential positives are this: the Bank of Japan, in my opinion, sometime over the next four to six weeks will roll out another big stimulus program because they will see that the economy is weakening very rapidly since they just hiked sales taxes from 5% to 8% on April 1st. And that's a big big increase... The ECB will also [stimulate]. They made some comments now—the head of the ECB, Draghi—that the ECB is ready to act, ready to stimulate, and it’s generally thought now that over the next month or two the ECB will come out with some type of stimulus program; because they are now also fighting deflation. They're getting worried about deflationary forces. The strongest economy in Europe is Germany and Germany is just on the edge of no growth. That's very bad when the strongest one is weak.”

[ReturntoSender]

From Briefing.com: 4:15 pm : The major averages finished the Wednesday session on a modestly higher note with the Nasdaq Composite (+0.4%) in the lead. Like the Nasdaq, the Russell 2000 (+0.4%) also outperformed the S&P 500 (+0.2%), while the Dow Jones Industrial Average (+0.1%) lagged throughout the session.

For the third day in a row, the stock market maintained a narrow range amid spotty sector leadership. Trading volume remained light with just 579 million shares changing hands at the NYSE versus a long-term average of 700 million.

In all likelihood, the quiet environment was a reflection of a wait-and-see approach that has been employed by investors ahead of tomorrow's policy decision from the European Central Bank and the U.S. Nonfarm Payrolls report, which will be released on Friday at 8:30 ET (Briefing.com consensus 220K).

Tomorrow's ECB announcement has the potential to stir things up a bit as investors are anticipating some sort of action from the central bank. While the general consensus is eyeing an easing announcement, it remains unclear what type of stimulus could be introduced by President Mario Draghi tomorrow. Expectations range from a deposit rate cut to an introduction of a QE-style purchasing program, but ECB watchers are well aware that Mr. Draghi's favorite policy tool has been the threat of easing, rather than actual easing for quite some time now. The ECB decision will cross the wires at 7:45 ET with the press conference set to follow at 8:30 ET.

However, before moving into tomorrow, we would like to take a quick look at today's session, which was anything but thrilling. Seven of ten sectors finished in the green with the three largest cyclical groups-consumer discretionary (+0.4%), financials (+0.3%), and technology (+0.3%)-in the lead.

The top performer of the bunch-consumer discretionary-rallied on the back of retailers with the SPDR S&P Retail ETF (XRT 84.44, +0.64) advancing 0.8%, which pulled it back into the green for the quarter. The retail ETF swung to a quarter-to-date gain of 0.2%, but remained lower by 4.2% year-to-date.

Elsewhere, the financial sector, which has been the top performer of the week, added 0.3% with M&A activity contributing to the relative strength. Specifically, Protective Life (PL 69.36, +10.64) surged 18.1% after agreeing to be acquired by Japan's Dai-ichi Life for $70/share, representing a 19.2% premium to yesterday's closing price.

Also of note, the tech space received significant support from its largest component. Shares of Apple (AAPL 644.82, +7.28) spiked 1.1% on the record date for the upcoming 7:1 stock split. Starting Monday, the largest tech company by market cap will begin trading on a split-adjusted basis.

In addition to boosting the tech sector, Apple contributed to the relative strength of the Nasdaq Composite. However, the Nasdaq also drew strength from biotechnology as the iShares Nasdaq Biotechnology ETF (IBB 243.47, +2.55) regained its 100-day moving average, climbing 1.0%. The health care sector, meanwhile, ended in line with the S&P 500.

On the downside, energy (-0.1%), industrials (-0.1%), and telecom services (-0.3%) posted slim losses.

Treasuries ended flat after erasing their overnight gains. The 10-yr yield settled at 2.60%.

Economic data was plentiful and mostly disappointing:

According to the ADP National Employment Report, employment in the nonfarm private business sector rose by 179K in May. That was below the increase of 200K expected by the Briefing.com consensus. Also of note, the April reading was revised down to 215,000 from 220,000.
The trade deficit in April widened appreciably to $47.20 billion from an upwardly revised $44.20 billion (from -$40.40 billion) in March. The April number was worse than the Briefing.com consensus estimate of -$41.30 billion and was the biggest deficit since March 2012. This will be a negative component for Q2 GDP as the real trade deficit in April was 9.2% greater than the first quarter average.
First quarter productivity was revised lower to -3.2% (Briefing.com consensus -2.5%) from -1.7%. That was the largest decrease in productivity since the first quarter of 2008. Hours worked increased 2.2% and output decreased 1.1%. Unit labor costs, in turn, were revised up to 5.7% (Briefing.com consensus 4.8%) from 4.2% due to the decline in productivity and the 2.3% increase in hourly compensation.
The ISM Services report for May checked in at 56.3, which was above the Briefing.com consensus estimate of 55.5 and marked the highest reading for the survey since August 2013. The main takeaway was that the non-manufacturing sector continues to operate comfortably in a state of expansion as May 2014 marked the 52nd consecutive month with a reading above 50.0.
The weekly MBA Mortgage Index fell 3.1% to follow last week's downtick of 1.2%.

Tomorrow, Challenger Job Cuts for May will be reported at 7:30 ET, while weekly Initial Claims (Briefing.com consensus 310,000) will be released at 8:30 ET.

S&P 500 +4.3% YTD
Dow Jones Industrial Average +1.0% YTD
Nasdaq Composite +1.8% YTD
Russell 2000 -2.8% YTD

4:38 pm Trina Solar announces the offering of $150 mln convertible senior notes; commences concurrent offering of 8.8 mln ADSs (TSL) : Co announced the commencement of the offering of $150 million in aggregate principal amount of convertible senior notes due 2019. The Company also commenced a concurrent offering of 8,800,000 American Depositary Shares each representing 50 ordinary shares of the Company, par value of US$0.00001 per share. Deutsche Bank Securities Inc., Barclays Capital Inc., J.P. Morgan Securities LLC and Goldman Sachs (Asia) L.L.C. will act as joint book-running managers for the ADS Offering.

4:06 pm Universal Display announces its board of directors has approved a program to repurchase up to $50 mln of the co's outstanding shares of common stock from time to time over the next twelve months (OLED) : Co announced that its board of directors has approved a program to repurchase up to $50 mln of the company's outstanding shares of common stock from time to time over the next twelve months. Universal Display expects to enter into a trading plan established under Rule 10b5-1 under the Securities Exchange Act of 1934 to facilitate repurchases under the program. The amount and timing of repurchases will depend on a number of factors, including the price, availability of shares of the company's common stock, trading volume and general market conditions.

The repurchases may be made over the next twelve months on the open market, in block trades or otherwise. The program may be suspended or discontinued at any time.
The stock repurchase program will be funded using the company's working capital. As of March 31, 2014, the company had cash, cash equivalents and marketable securities of ~$267 mln.
As of May 5, 2014, the company had 46,493,987 shares of common stock outstanding.

4:01 pm SunPower announces intention to offer $400 mln aggregate principal amount of senior convertible debentures due 2021 (SPWR) :

Total Energies Nouvelles Activites USA, a subsidiary of Total S.A. (TOT) that owns approximately 60 percent of co's common stock, has agreed to purchase, and the initial purchasers have agreed to sell to Total Energies Nouvelles Activites USA, $250 mln aggregate principal amount of the $400 mln aggregate principal amount of debentures to be offered.
Co intends to use the net proceeds from the offering for general corporate purposes, including, but not limited to, retirement of existing indebtedness, pursuing its HoldCo strategy, capital expenditures, and working capital.

Large Cap Gainers

WAG (74.61 +4.26%): Reported May same store sales rose 4.4% from prior year; reported Q3 revs rose 6.5% yoy to $19.49 bln vs $19.22 bln estimate; mentioned positively at FBR Capital
UA (53.2 +4.11%): Upgraded to Buy from Hold at Jefferies, target raised to $65 from $50
VIP (8.73 +4.05%): Reuters reporting that co has resumed merger discussions with Hutchison Whampoa (HUWHY)

Large Cap Losers

COH (39.17 -2.96%): Downgraded to Neutral from Buy at Sterne Agee, target lowered to $41 from $51
VRX (128.44 -2.89%): Weakness in select large cap biotech/pharma names: BMY, AGN, TEVA also lower
PBR (13.79 -1.43%): Hearing rumors that Brazilian government has rejected the company's price request from April/May

Mid Cap Gainers

PL (69.3 +18.02%): To be acquired by Dai-ichi Life for $70 per share in a transaction valued at ~$5.7 bln
SPWR (34.68 +8.34%): Strength in select solar companies following Department of Commerce announcement of duties on solar products; FSLR also higher
MBI (12.42 +6.34%): CEO disclosed acquisiton of ~62.17k shaers at $11.70 per share worth ~$700k

Mid Cap Losers

TIBX (19.64 -5.53%): Sees Q2 EPS of $0.12-0.13 ex items vs $0.21 estimate, revs of $250-252 mln vs $267.5 mln estimate; downgraded at JMP Securities and Stifel
P (23.97 -2.60%): Announced listener hours during the month of May 2014 were 1.73 bln, an increase of 28% from 1.35 bln during the same period last year; defended at Susquehanna
DO (48.35 -2.44%): Announced that a subsidiary has received notice of termination of its drilling contract for the mid-water semisubmersible Ocean Vanguard from Statoil ASA (STO), its customer for the rig

11:56 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (149) outpacing new lows (65) (:SCANX) : Stocks that traded to 52 week highs: AAL, AAPL, AET, AGRX, AGX, AIG, AIZ, ALB, ALDR, AMAT, AMH, AMKR, AMOT, ASH, AVB, AVIV, BEE, BIG, BMA, BR, BRCM, CALM, CBG, CFN, CHC, CHSP, CI, CKEC, CLR, CORE, CP, CPN, CRZO, CSCD, CUR, CXDC, DAL, DCM, DDS, DFZ, DOC, DOM, DOX, DVA, DYN, EMES, EMN, ENSG, EOG, EQM, ERF, ESCA, ETE, ETR, FANG, FET, FLEX, GIS, GLOP, GMK, GTIM, H, HBI, HCC, HES, HRL, HSH, HST, HTZ, INTC, IRS, JBLU, JNJ, KEX, KR, LEG, LLL, LM, LRCX, LSBI, LUV, MEAS, MET, MGA, MGPI, MMP, MNKD, MWV, MXIM, NEN, NGL, NRG, NTT, NYLD, NYRT, OCIR, OCR, OHI, OPHT, PAHC, PES, PKY, PL, POL, PPG, PRE, RGEN, RNR, RSG, SAH, SBR, SCI, SGBK, SHO, SKX, SLCA, SNN, SOHO, SPIL, SRC, SRLP, SWHC, SWKS, SYA, SYPR, TDG, TEO, THRD, TLLP, TMH, TMK, TNET, TPX, TRGP, TRUE, TRV, TU, TUES, VET, VLCCF, VLP, VYFC, WAG, WAVX, WES, WFT, WLK, XL, ZBRA

Stocks that traded to 52 week lows: ACI, AEPI, AMDA, ANV, ASCMA, ASNA, AVD, BAXS, BOTA, CAS, CLF, CLVS, COH, COOL, CPWR, CRCM, CRIS, CRMB, DLIA, DRIV, EDMC, EGHT, END, ETH, FHCO, FSYS, FWM, GRVY, HHS, HMG, HTCH, ISNS, KEYW, KIPS, LCNB, MEIP, MELA, MFLX, MOSY, NCQ, NIHD, NILE, NSPH, NTWK, OGXI, OMEX, ONTX, ONVI, OXF, PENX, PERI, PIR, RFIL, RNF, RST, SCL, SPLS, STRM, SVM, TIBX, TSPT, UNTK, WTSL, YUME, ZNH

ETFs that traded to 52 week highs: IGE, IHF, IWF, IYM, KIE, NIB, OIH, QQQ, SEA, SMH, SOXX, SPY, UYM, VTI

ETFs that traded to 52 week lows: VXX

9:36 am Trina Solar 'disappointed' in U.S. Department of Commerce's announcement of preliminary findings in countervailing investigations on certain solar energy products originating in China (TSL) : Co notes the preliminary findings on June 3, 2014 by the U.S. Department of Commerce relating to the countervailing duty investigation concerning imports into the U.S. of certain crystalline silicon solar finished products and components from China. Trina Solar is one of the China-based suppliers of these products to the U.S.

"According to the Commerce Preliminary Subsidy Rate scheme, preliminary subsidy rates ranging from 18.56% to 35.21% were assigned to the exporters in China. Trina Solar as a compulsory respondent is found to be subject to a preliminary rate of 18.56%, the lowest among the Chinese exporters."
"Trina Solar is disappointed by the preliminary findings and believes the allegations made by SolarWorld are contrary to the principles of free and fair trade, and are unfounded. Trina Solar's transactions with all its customers in the United States are in accordance with international trade practices."
"We believe we will continue to grow our business in US profitably, and we will continue to play an important role in the U.S. market and serve our customers in the region."
"In addition to the U.S., Trina Solar continues to see robust demand for its products, driven largely by growth from key geographical regions, particularly China and Japan. At the same time, Trina Solar is able to achieve geographical diversification of its business , as previously noted, its sales from new and emerging markets also continue to accelerate."

9:04 am Synopsys, STMicroelectronics (STM) and Samsung (SSNLF) collaborate to accelerate adoption of 28-nm FD-SOI technology for SoC design (SNPS) : Co announced it has extended its collaboration with STMicroelectronics to include Samsung Electronics, enabling broader market adoption of ST's 28-nm FD-SOI technology for SoC design. Synopsys' Galaxy Design Platform is production-proven on multiple designs based on ST's 28-nm FD-SOI technology. This collaboration extends the Galaxy design flow to Samsung in support of their strategic agreement to offer dual sourcing of ST's 28-nm FD-SOI technology.

9:02 am Cohu: Costar (CSTI) will purchase substantially all the assets of Cohu's Electronics Division. The purchase price is $9.5 mln in cash plus up to $0.5 mln in contingent consideration. (COHU) : Co announced that it has entered into a definitive agreement with Costar Technologies, under which Costar, based near Dallas, Texas, will purchase substantially all the assets of Cohu's Electronics Division.

8:37 am Sanmina announces early settlement for its previously announced tender offer and consent solicitation (SANM) :

CO announced that on June 3, 2014 it had received tenders and consents from holders of ~$264.415 mln in aggregate principal amount of its 7% Senior Notes due 2019 representing approximately 52.88% of the outstanding Notes, in connection with the Company's previously announced cash tender offer and consent solicitation for any and all of the Notes.
The Company will make payment to the Depository Trust Company on June 4, 2014 for all Notes validly tendered as of the Early Tender and Consent Deadline.

8:21 am Gapping down (:SCANX) : Gapping down
In reaction to disappointing earnings/guidance: TIBX -13.4%, FCEL -12.7%, ASNA -4.6%, AEGN -2.7%, ABM -1.5%, LDOS -1.3%, MFRM -1.1%.

Select solar stocks trading lower after Commerce Dept declared new duties on solar product imports: JKS -6.6%, YGE -6.4%, TSL -6.3%, CSIQ -5.5%, JASO -3.9%, SOL -2.2%.

[ReturntoSender]

From Briefing.com: Weekly Recap - Week ending 20-Jun-14Dow +25.62 at 16947.08, Nasdaq +8.71 at 4368.04, S&P +3.39 at 1962.87

The major averages posted modest Friday gains to punctuate an upbeat week that saw relative strength among small-cap stocks. Fittingly, the Russell 2000 (+0.3%) settled just ahead of the S&P 500 (+0.2%). The two indices extended their weekly gains to 2.2% and 1.6%, respectively.

The S&P 500 spent the entire session in the green, but was limited to a four-point range as top-weighted sectors traded in mixed fashion. The modest gains were supported by the relative strength among groups like energy (+1.0%), health care (+0.8%), industrials (+0.4%), and financials (+0.3%), but the underperformance of consumer discretionary (-0.4%), technology (-0.3%), and consumer staples (-0.4%) kept the index from pulling too far away from its flat line.

The energy sector seized the lead shortly after the open and held that spot into the close. The group locked in a 2.7% gain for the week, which was driven in part by oil supply concerns following the escalation of sectarian tensions in Iraq. For its part, crude oil rose 0.7% to $106.81/bbl.

Commodities in general enjoyed a strong week with gold and silver futures adding to yesterday's big gains. Gold futures added $2.30 to $1316.60/ozt, bringing their total weekly advance to 3.3%. Silver, meanwhile, tacked on another 1.1% today to settle at $20.95/ozt, which represented a 6.6% gain for the week. Interestingly, miners were not boosted by the strength in metals as the Market Vectors Gold Miners ETF (GDX 25.82, -0.27) fell 1.0%.

Elsewhere, the health care sector made a noteworthy contribution to the advance with biotechnology powering the move. The iShares Nasdaq Biotechnology ETF (IBB 255.64, +5.08) rose 2.0%, extending its June gain to 6.7%.

On the flip side, the top-weighted sector-technology-kept the lid on the market as Oracle (ORCL 40.82, -1.69) weighed. The stock fell 4.0% after missing earnings and revenue estimates. High-beta chipmakers lagged for the better part of the session, but climbed into the close (PHLX Semiconductor Index +0.2%).

Also of note, the consumer discretionary space was pressured by quick-service restaurants following disappointing quarterly results from Darden Restaurants (DRI 47.58, -1.94).

The modest gains in the market did not stop some participants from demanding volatility protection as the CBOE Volatility Index (VIX 10.67, +0.05) rose 0.5% after marking a new low for the year.

On the fixed income side, the 10-yr note edged up one tick with its yield ending at 2.62%.

Participation was well above average, but that was a function of today's quadruple witching and S&P rebalancing. As a result, more than 1.7 billion shares changed hands at the NYSE floor.

On Monday, the Existing Home Sales report will be released at 10:00 ET.

Week in Review: The Beat Goes On

Equity indices pretty much ran in circles on Monday, having closed the session close to where they began. The indecisive nature was attributed to some worrisome-sounding headlines on the geopolitical front, yet the market action suggested it may have been owed more to a case of wait-and-see in front of Wednesday's FOMC meeting. Oil prices were little changed despite the news that the militant group, Islamic State of Iraq and Syria, took over yet another city in northern Iraq. The 10-yr note, gold prices, and the US Dollar Index, meanwhile, were also little changed, signaling that there wasn't a flight to safety on those headlines or the news that Russia cut off its gas supply to Ukraine after the two countries failed to agree on pricing.

The stock market ended the Tuesday session on a modestly higher note with participants gearing up for the latest policy directive from the FOMC. Small- and mid-cap stocks led the way with the Russell 2000 and S&P Mid Cap 400 climbing 0.7% and 0.8%, respectively. Meanwhile, the S&P 500 added 0.2% with five sectors posting gains. Overall, cyclical groups did the bulk of the grunt work as five of six growth-sensitive sectors advanced. Financials (+0.9%) seized the lead at the start of the session and never looked back. Top-weighted components like Bank of America (BAC) and Morgan Stanley (MS) posted respective gains of 2.0% and 2.5%, while the entire sector extended its June advance to 1.9%.

The major averages posted modest gains on Wednesday after the Federal Open Market Committee announced another $10 billion taper, which was widely expected. The S&P 500 added 0.8% with all ten sectors posting gains. Equity indices spent the first half of the session near their flat lines as market participants held pat ahead of the afternoon statement from the Fed. The $10 billion reduction lowered the size of monthly asset purchases to $35 billion, while the remainder of the policy statement struck a familiar tone. The Fed reiterated its commitment to the current level of interest rates, saying rates are likely to remain low for a considerable time after quantitative easing ends. Furthermore, the FOMC released its economic projections, but those were not too different from the prior forecast either. According to the projections, the Fed expects the jobless rate to be between 6.0% and 6.1% at the end of the year after calling for a rate between 6.1% and 6.3% in its last set of projections.

On Thursday, the major stock indices managed to hold fairly steady in what was a seesaw day of trading; longer-dated Treasuries experienced a notable reversal that left the 10-yr note down 12 ticks and yielding 2.63% while the front of the curve remain propped up with buying interest; commodity prices were higher with precious metals prices moving up sharply; and the US Dollar Index was down 0.3%. A 3.6% jump in gold prices to $1318.00/troy ounce and the weakness at the back end of the Treasury curve were cited as expressions of inflation concerns with market participants acting uneasy about the Fed's seemingly complacent view of inflation. The explanation was not entirely out of bounds, but it also wasn't above reproach given that the dollar failed to bounce and the front of the Treasury curve held up just fine. Accordingly, it is too early to say whether the action on Thursday reflected genuine inflation concerns.

 
 Index	   Started Week	 Ended Week    Change	% Change  YTD % 
 DJIA	     16775.74	  16947.08    171.34       1.0	  2.2 
 Nasdaq	      4310.65	   4368.04     57.39       1.3    4.6 
 S&P 500 1936.16	   1962.87     26.71       1.4    6.2 
 Russell 2000  1162.63	   1188.42     25.79       2.2    2.1

4:28 pm This week's biggest % gainers/losers (:SCANX) : The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

Technology:OPEN (104.67 +49.75%),SCTY (69 +34.16%),FIO (11.69 +31.26%),TWTC (40.83 +26.57%),BNFT (46.33 +25.27%),YGE (4.01 +25.25%)Services:EXPR (16.54 +22.73%),LE (34.62 +21.03%),GLOG (30.72 +20.73%),LAD (92.35 +20.45%)Industrial Goods:BLDP (4.27 +20.36%)Healthcare:KPTI (42.37 +74.91%),INSM (18.74 +49.8%),BLUE (40.71 +45.59%),COV (90.11 +26.65%),RARE (47.49 +20.61%)Basic Materials:TRGP (138.09 +26.49%),KWK (2.95 +24.79%),WMB (57.66 +23.65%),FSM (5.29 +22.71%)

This week's top 20 % losersUtilities:TGS (3 -10%)Technology:FNSR (19.91 -22.26%),CMGE (14.33 -22.18%),AFOP (18.47 -11.49%),UTEK (22.47 -10.43%),PERI (10.02 -9.45%)Services:DWA (24.47 -10.9%),DL (15.28 -10.53%),WBAI (33.74 -10.19%),PIR (15.18 -8.96%)Industrial Goods:PGEM (10.41 -9.94%)Healthcare:VRTX (64.96 -12.07%),UTHR (87.46 -10.65%),VSAR (29.75 -9.5%),TGTX (8.58 -9.07%)Financial:TSLX (18.11 -16.98%),QIWI (39.96 -10.34%)Consumer Goods:CXDC (8.54 -11.08%)Basic Materials:MTL (2.18 -12.72%),PZE (6.64 -8.85%)

3:39 pm Earnings Preview for the week of June 23 - 27 (:SUMRX) : Of the companies reporting earnings for the week of June 23 - 27 some of the bigger names include:

Monday: After Hours - MU, SONC

Tuesday: Pre Market - WAG, CCLAfter Hours - APOG

Wednesday: Pre Market - GIS, MON, BKS, APOL, OMN, LNNAfter Hours - BBBY, MLHR, CWST

Thursday: Pre Market - ACN, CAG, LEN, SJR, MKC, WOR, SCS, SCHN, WGO, MEIAfter Hours - NKE, PRGS

Friday: Pre Market - CMC, KBH, FINL AZZ

12:32 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

DISH (61.8 +3.33%): Seeing reports that Verizon (VZ) is interested in purchasing DISH spectrumYPF (32.9 +2.46%): NYPost reporting that Argentina has reatreated in bond discussionsKMI (36.19 +2.23%): Initiated with a Buy at UBS; mentioned positively in blog article

Large Cap Losers ORCL (40.37 -5.03%): Missed quarterly EPS by $0.03 ($0.92 vs $0.95 estimate), revs rose 3.3% yoy to $11.33 bln vs $11.47 bln estimate; sees Q1 adjusted EPS of $0.62-0.66 vs $0.64 estimate, revs +4% to +6% vs estimate of +4.7% (~$8.77 bln)JD (25 -3.21%): Initiated with a Neutral at NomuraREGN (288.69 -3.02%): Trading lower on sell side firm mention of cost concerns for Eylea for the treatment of macular edema

Mid Cap Gainers KMX (53.22 +17.54%): Beat quarterly EPS by $0.10 ($0.76 vs $0.66 estimate), revs rose 13.3% yoy to $3.75 bln vs $3.57 bln estimate; total used vehicle unit sales rose 9.8% and comparable store used unit sales grew 3.4% from prior year; upgraded to Outperform from Market Perform at William BlairBBRY (9.62 +5.83%): Mentioned positively at Citron Research; target raised to $12 from $11 at RBC Capital Markets; target raised to $9 from $7.50 at CowenCBST (71.64 +4.51%): Announced that the FDA has accepted and granted a priority review of the company's New Drug Application for ceftolozane/tazobactam for the treatment of complicated urinary tract Infections and complicated intra-abdominal infections

Mid Cap Losers EMES (100.18 -11.23%): Priced secondary public offering of 3,515,388 common units representing limited partner interests in Emerge Energy by selling unitholders at $109.06/shareNGLS (73.04 -10.44%): Co's parent company Targa Resources (TRGP) announced discussions regarding a potential business combination with Energy Transfer Equity (ETE) have been terminatedTIBX (19.42 -6.72%): Beat quarterly EPS by $0.01 ($0.14 ex items vs $0.13 estimate), revs rose 2.6% yoy to $252.3 mln vs $251.56 mln estimate; sees Q3 EPS of $0.15-0.19 ex items vs $0.22 estimate, revs of $267-279 mln vs $274.09 mln estimate; downgraded to Neutral from Positive at Susquehanna, target lowered to $19 from $24

11:33 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (267) outpacing new lows (24) (:SCANX) :

Stocks that traded to 52 week highs: AAN, ABBV, ABT, ACE, ACHN, AEM, AET, AFG, AGO, AIG, AMAT, AMOT, AMP, AMTX, AN, APA, APC, ARRS, ASBI, ATVI, AXDX, BANF, BCEI, BEE, BGCP, BHE, BHI, BMO, BNS, BP, BUD, CAM, CDW, CENT, CFN, CHD, CHK, CHMI, CHRW, CHSP, CHTR, CI, CJES, CL, CLR, CLS, CMRE, CNQ, CNS, CNSL, CNW, COF, CONE, COP, CPK, CSTM, CSX, CTAS, CTRN, CVX, DAN, DJCO, DLX, DOV, DPS, DRII, DVN, E, ECA, EDAP, EDE, EGN, EIX, ENL, ENR, EOG, EQM, EQS, ERF, ESL, ETE, ETR, EVER, EXR, FET, FL, FNV, FRNK, FTI, FTK, GAS, GCO, GIL, GLOG, GLOP, GLW, GPK, GRC, GRH, GRMN, GST, GWR, HAL, HALL, HBI, HCA, HCC, HES, HNRG, HOLI, HP, HRL, HRTG, HT, IBA, IDA, IDTI, IEX, IFF, IHS, IMO, INGR, INT, INTC, IPXL, IR, ISIL, ITT, JNJ, JOE, JONE, KMB, KO, KOG, KR, LAD, LE, LM, LRCX, LSG, LUX, MAR, MARK, MET, METR, MGA, MITSY, MJN, MKL, MMC, MO, MOH, MPLX, MRO, MTRN, NAVI, NBL, NBR, NFX, NI, NOV, NSC, NTCT, NVS, NWE, NWN, NXPI, NYRT, OIS, OPEN, ORM, OSUR, OXY, PAC, PCG, PDS, PEGI, PEP, PES, PFBI, PJC, PLKI, PNC, POR, PPS, PQ, PSX, PSXP, PTEN, PTSI, PXD, RAI, RES, REX, RGEN, RH, RMBS, RNR, RPM, RSG, RTK, RUK, RY, SANM, SAVE, SBR, SCS, SCYX, SD, SEB, SEM, SEMG, SIAL, SIG, SIRO, SLB, SLXP, SMLP, SNA, SON, SPB, SPN, ST, STEM, STJ, STZ, SUNE, SYA, SYK, SYRG, TAP, TAT, TBPH, TD, THG, TKR, TOT, TOWR, TPLM, TRNX, TRV, TRW, TSO, TTEC, TUES, UCBA, UHS, UNT, USB, VAL, VC, VET, VLP, VNCE, VVC, WAYN, WCN, WFC, WIN, WLB, WLFC, WLK, WLL, WPX, WR, WRB, XOM

Stocks that traded to 52 week lows: AVD, AXTI, BBGI, BECN, BKJ, BTH, CCCR, CLRX, COCO, COH, CUB, DB, GRVY, GSIT, NILE, PGEM, RITT, RSH, SPHS, TLYS, TRVN, UNTK, UTEK, VHI

ETFs that traded to 52 week highs: DIG, DVY, EWC, GSG, HYG, IEO, IGE, IHI, IOO, IWF, IXC, IYE, IYH, IYK, JNK, MOO, OEF, OIH, PPH, SMH, UYM, VTI, XES, XLE, XLV, XOP

ETFs that traded to 52 week lows: SMN

[ReturntoSender]

From Briefing.com: 4:15 pm : The major averages posted modest Tuesday losses after being unable to hold their opening gains. Small caps displayed relative weakness throughout the session, which resulted in the Nasdaq Composite (-0.5%) and Russell 2000 (-1.0%) ending behind the S&P 500 (-0.2%) and the Dow Jones Industrial Average (+0.03%).

Equities appeared to be on track for an upbeat session after the financial sector (+0.7%) got out to an early lead thanks to better than expected earnings from Goldman Sachs (GS 169.17, +2.17) and JPMorgan Chase (JPM 58.27, +1.98). The two influential sector components gained 1.3% and 3.5%, respectively, but their strength was not enough to keep the benchmark index out of the red.

The S&P 500 slumped to lows in the late morning after supplemental remarks to Fed Chair Yellen's semiannual testimony on monetary policy singled out biotechnology and social media stocks as groups that have had their valuations stretched. Appropriately, stocks from both arenas responded by pacing the late-morning retreat.

Most notably, the iShares Nasdaq Biotechnology ETF (IBB 252.43, -5.67) lost 2.2%, which put the ETF back near its lowest levels of the month. For its part, the health care sector (-0.9%) was the weakest performing group.

Meanwhile, another countercyclical sector-consumer staples-also ended near the bottom of the leaderboard. The sector lost 0.8% with tobacco names exerting pressure as Lorillard (LO 60.17, -7.05) tumbled 10.5% after agreeing to be acquired by Reynolds American (RAI 58.84, -4.34) for $68.88 per share. The deal announcement was followed by news that Moody's is reviewing ratings of both names for potential downgrades.

Outside of consumer staples and health care, the other two countercyclical sectors fared well. The telecom services sector rose 0.7% and utilities added 0.5%.

Turning back to the cyclical side, financials remained in the green throughout the day, while the industrial sector (+0.1%) crept into positive territory during the afternoon. Transports contributed to the rebound (Dow Jones Transportation Average +0.4%) with JB Hunt (JBHT 76.94, +2.65) leading the pack. The stock rallied 3.6% after reporting in-line results this morning.

Elsewhere, the top-weighted S&P 500 sector-technology (-0.2%)-underperformed intraday, but caught up to the S&P 500 ahead of the close. Social media names lagged, but were able to trim some of their losses. Facebook (FB 67.16, -0.73), Twitter (TWTR 37.88, -0.43), and Yelp (YELP 69.02, -2.09) lost between 1.1% and 2.9%.

Treasuries ended the day little changed after alternating between gains and losses. The 10-yr yield finished the day at 2.55%.

Participation bucked the recent trend with an above-average 716 million shares changing hands at the NYSE.

Economic data included June Retail Sales, June import/export prices, July Empire Manufacturing survey, and the Empire Manufacturing Survey:


Retail sales increased 0.2% in June following an upwardly revised 0.5% (from 0.3%) increase in May, while the Briefing.com consensus expected an increase of 0.7%
The June employment report signaled a strong increase in aggregate earnings and motor vehicle sales for the same month exceeded 17 million SAAR for the first time since July 2006. Both of those factors were expected to drive retail sales growth in June, yet failed to provide the oomph needed to accelerate consumer demand
It seems likely that consumers pocketed some of the extra earnings in June and increased their savings rate
Excluding motor vehicles, retail sales increased a 0.4% in June, which was the same growth rate following an upward revision (from 0.1%) in May. The consensus expected these sales to increase 0.6%
Export prices, excluding agriculture, fell 0.3% in June after increasing 0.1% in the prior reading
Excluding oil, import prices declined 0.1%, which followed last month's unchanged reading
The Empire Manufacturing Survey for July registered a reading of 25.6, which was well ahead of the prior month's reading of 19.3. It was also ahead of the Briefing.com consensus estimate, which was pegged at 13.2
Business inventories increased 0.5% in May following an unrevised 0.6% increase in April, while the Briefing.com consensus expected business inventories to increase 0.6%
Inventories for manufacturers (0.8%) and merchant wholesalers (0.5%) were known prior to the release. Only retailer inventories, which increased 0.2% in May after increasing 0.5% in April, were unknown

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET, while June PPI (Briefing.com consensus 0.2%) will be reported at 8:30 ET. The Net Long-Term TIC Flows report for May will cross the wires at 9:00 ET, while June Industrial Production (consensus 0.4%) and Capacity Utilization (expected 79.2%) will both be announced at 9:15 ET. The busy day of data will also include the 10:00 ET release of the NAHB Housing Market Index for July (consensus 50) and the July Fed Beige Book, which will be released at 14:00 ET.

S&P 500 +6.8% YTD
Nasdaq Composite +5.7% YTD
Dow Jones Industrial Average +2.9% YTD
Russell 2000 -0.8% YTD

DJ30 +5.26 NASDAQ -24.03 SP500 -3.82 NASDAQ Adv/Vol/Dec 779/1.62 bln/2052 NYSE Adv/Vol/Dec 1052/716.3 mln/2001 3:35 pm :

Precious metals were under pressure today as the dollar index advanced during Fed Chair Janet Yellen's Senate testimony.
The Fed Chair's comments stayed in-line with her prior message as she was optimistic about the direction of the economy and employment but remained cautious on the page of the recovery.
Aug gold fell into negative territory below the $1300 per ounce level from its session high of $1313.20 per ounce set in early morning pit trade. It traded as low as $1292.60 per ounce and eventually settled at $$1297.20 per ounce, or 0.7% lower.
Sep silver also retreated into the red after trading as high as $21.13 per ounce in early morning action. It brushed a session low of $20.67 per ounce and settled with a 0.1% loss at $20.89 per ounce.
Aug crude oil fell below the $100.00 per barrel level as the stronger dollar index pressured prices. The energy component traded as low as $98.99 per barrel in morning action and eventually settled with a 1.1% loss at $99.86 per barrel.
Aug natural gas pulled back from its session high of $4.15 per MMBtu set in early morning pit trade and traded as low as $4.09 per MMBtu. Unable to gain momentum, it settled with a 1.2% loss at $4.10 per MMBtu.

6:03 pm Adobe Systems and Google (GOOG) announce a 'digital type breakthrough' (ADBE) : Co announced the release of Source Han Sans, an open source typeface supporting Japanese, Chinese and Korean, as well as Latin, Greek and Cyrillic alphabets. It was developed in collaboration with Adobe's key partner Google (GOOG) and contracted foundry partners across East Asia (Changzhou SinoType, Iwata Corporation, and Sandoll Communication). "Source Han Sans marks a record-breaking typeface in terms of size, scale, complexity and support for Japanese, Chinese and Korean all within the same font family. It provides designers and developers creating content for international audiences one uniform font to use in print and Web files no matter the language - eliminating the need to license multiple fonts."

4:33 pm Apple and IBM announce exclusive partnership to transform enterprise mobility through a new class of business apps (AAPL) : The landmark partnership aims to redefine the way work will get done, address key industry mobility challenges and spark true mobile-led business change-grounded in four core capabilities:

a new class of more than 100 industry-specific enterprise solutions including native apps, developed exclusively from the ground up, for iPhone and iPad; unique IBM cloud services optimized for iOS, including device management, security, analytics and mobile integration; new AppleCare service and support offering tailored to the needs of the enterprise; and new packaged offerings from IBM for device activation, supply and management. The new IBM MobileFirst for iOS solutions will be built in an exclusive collaboration that draws on IBM's big data and analytics capabilities fused with Apple's consumer experience, hardware and software integration and developer platform. The combination will create apps that can transform specific aspects of how businesses and employees work using iPhone and iPad.

4:16 pm Intel beats by $0.02, reports revs in-line with raised guidance range; guides Q3 rev, gross margin above consensus; raises FY14 rev, gross margin guidance; adds $20 bln to buyback (INTC) : Reports Q2 (Jun) earnings of $0.55 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.53; revenues rose 8.0% year/year to $13.83 bln vs the $13.72 bln consensus -- co guidance raised to $13.4-14.0 bln from $12.5-13.5 bln on June 12.

Q2 gross margin of 64.5% vs Street expectations near 64% (co guided for Q2 gross margin of 64%, +/- a couple of percentage pts, rasied from 63% at midpoint). PC Client Group revenue of $8.7 billion, up 9 percent sequentially and up 6 percent year-over-year.Data Center Group revenue of $3.5 billion, up 14 percent sequentially and up 19 percent year-over-year.Internet of Things Group revenue of $539 million, up 12 percent sequentially and up 24 percent year-over-year.Mobile and Communications Group revenue of $51 million, down 67 percent sequentially and down 83 percent year-over-year.Software and services operating segments revenue of $548 million, down 1 percent sequentially and up 3 percent year-over-year.Co issues upside guidance for Q3, sees Q3 revs of $13.9-14.9 bln vs. $14.05 bln Capital IQ Consensus; gross margin 66% +/- a couple % points vs. 62.6% consensus.

Co issues upside guidance for FY14, sees FY14 revs of +5% to ~$55.34 bln vs. $54.72 bln Capital IQ Consensus Estimate. Gross margin percentage: 63 percent, plus or minus a few percentage points, from upper half of 61% +/- a few % points.
The company generated ~$5.5 billion in cash from operations, paid dividends of $1.1 billion, and used $2.1 billion to repurchase 74 million shares of stock.
Intel announced that it intends to return more cash to shareholders by lowering its cash balance further through increased share repurchases. The board of directors authorized an increase of $20 billion to its share repurchase program and the company is forecasting share repurchases of ~$4 billion in the third quarter, with additional share repurchases in the fourth quarter.

4:11 pm Yahoo! misses by $0.01, misses on revs (YHOO) : Reports Q2 (Jun) earnings of $0.37 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.38; revenues fell 2.9% year/year to $1.04 bln vs the $1.08 bln consensus.
Display:

GAAP display revenue was $436 million for the second quarter of 2014, an 8 percent decrease compared to $472 million for the second quarter of 2013. Display revenue ex-TAC was $394 million for the second quarter of 2014, a 7 percent decrease compared to $423 million for the second quarter of 2013; street expectations was $425 mln.The number of Ads Sold increased approximately 24% compared to the second quarter of 2013 (Street expectations +4.5%) Price-per-Ad decreased approximately 24% compared to the second quarter of 2013 (Street expectations -3%)Search:
GAAP search revenue was $428 million for the second quarter of 2014, a 2 percent increase compared to $418 million for the second quarter of 2013 (which included the Microsoft RPS guarantee). Search revenue ex-TAC was $428 million for the second quarter of 2014, a 6 percent increase compared to $403 million for the second quarter of 2013 (which included the Microsoft RPS guarantee); Street expectations $443.8 mln. The number of Paid Clicks increased approximately 3% compared to the second quarter of 2013. Price-per-Click increased approximately 15% compared to the second quarter of 2013.

4:10 pm Yahoo! -- Earnings Mover -- (YHOO) : Reverses as high as 36.89 (close 35.61). its two month high from June is at 36.17 with its four month high/range top from April is at 37.30.


Large Cap Gainers


RBS (11.21 +2.94%): Strength in financial related names (IBN, DB, C also higher).
APC (108.93 +2.84%): Co provided a financial update, including the establishment of a new unsecured five-year credit facility, the issuance of senior notes, and the sale of Western Gas Equity Partners (WGP) common units.
BBBY (61.02 +1.48%): Priced $1.5 bln of Senior Unsecured Notes, announced planned $1.1 bln accelerated share repurchase and planned $250 mln revolving credit facility.

Large Cap Losers

LO (61.77 -8.11%): Co to be acquired by Reynolds American (RAI) in a cash-and-stock transaction currently valued at $68.88 per LO share, or a total of $27.4 bln, including the assumption of net debt.
KORS (80.75 -5.74%): Downgraded to Hold from Buy at Maxim Group; tgt lowered to $85 from $109.
RAI (59.88 -5.22%): Co to acquire Lorillard (LO) in a cash-and-stock transaction currently valued at $68.88 per LO share, or a total of $27.4 bln, including the assumption of net debt; Moody's reviewing LO and RAI ratings for downgrade on deal announcement.

Mid Cap Gainers

ROC (83.18 +9.88%): Co to be acquired by Albemarle (ALB) in cash and stock transaction valued at ~ $6.2 bln; transaction values ROC at $85.53 per share.
GPRO (39.81 +8.06%): Initiated with a Mkt Outperform at JMP Securities; tgt $60.
CPA (151.29 +3.96%): Reported June passenger traffic increased 13.0% y/y.

Mid Cap Losers

AAN (31.32 -6.59%): Co lowered Q2 guidance; lowered EPS to $0.34-0.37 from $0.43-0.48 vs. $0.46 est; sees Q2 (Jun) revs of ~$672 mln from ~$675 vs. $678.43 mln est.
LXK (46.53 -5.88%): Downgraded to Underperform from Mkt Perform at Bernstein.
ACAD (21.07 -4.62%): Co appointed Stephen Davis as Chief Financial Officer and Chief Business Officer.

12:09 pm Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (102) outpacing new lows (49) (:SCANX) : Stocks that traded to 52 week highs: AAT, AB, ACM, AIV, AKR, ALB, AMD, ATVI, AVB, BAMM, BBL, BDSI, BIOA, BITA, BK, BLK, BLL, CALM, CBEY, CBG, CCK, CDXS, CENX, CHRW, COF, CSX, DFS, DVA, EDR, ELP, EPR, EQR, ESS, FRT, GA, GILD, GLRE, GLUU, GPN, GPRE, GRH, HST, IDTI, IESC, INTC, KMB, KOG, KRC, LE, LEA, LGIH, LRCX, LUV, MAA, MCO, MFC, MIC, MJN, MSFT, NAVI, NS, NSC, NTT, OILT, PBI, PES, PJC, PPC, PPS, PTP, PTR, PTSI, PXLW, QGEN, REX, ROC, RY, SAFM, SAVE, SCOK, SIAL, SIMO, SNDK, ST, SUSP, TBI, TGP, THRM, TIME, UBIC, UEIC, UMC, UNH, URI, URS, VNTV, WDC, WLL, WLP, WTM, XL, YUM

Stocks that traded to 52 week lows: ACXM, ALLY, AMBI, ARO, AVD, AXTI, BAA, BAXS, BECN, BSDM, BTH, CAB, CGG, CHCI, CHLN, CHUY, CLRX, CNHI, DRI, FHCO, FNGN, GFIG, GKNT, GMAN, GOMO, INFA, JCTCF, JE, KITE, LL, MCRI, MGT, NEWL, OPTT, OXF, PGEM, PRXI, PT, PVH, QRM, REXX, RUBI, SHOS, SPWH, STLY, TCCO, UDF, WFM, WTW

ETFs that traded to 52 week highs: DBB, DIA, EEM, EWT, FXB, IYF, IYT, OEF, QQQ, URE, VWO, XLK

ETFs that traded to 52 week lows: JJA, JJG, VXZ

11:01 am Vishay announces Vishay HiRel Systems has earned AS9100 Rev C and International Organization for Standardization (:ISO) 9001:2008 certification for its plant in Zhuhai, China (VSH) :

9:06 am Rackspace announced a new strategy to deliver public cloud services; Rackspace Cloud Monitoring is now free for all customers (RAX) : Rackspace (RAX) announced a new strategy to deliver public cloud services to the market with Fanatical Support.

Rackspace Cloud Monitoring is now free for all customers. Co enhanced its managed cloud service levels and launched a more transparent service-based pricing model that represents a clear view of infrastructure pricing and emphasizes the value of Rackpace's cloud management expertise. Managed Infrastructure service level offers an hourly service level rate of $0.005/GB RAM, with a $50 per month minimum, plus standard infrastructure rates. Managed Operations service level offers an hourly service level rate of $0.02/GB RAM, with a $500 per month minimum, plus standard infrastructure rates. Rackspace also will continue to provide volume pricing discounts, so as a customer grows, the price of additional servers declines.

8:31 am Cisco Systems announces a multi-year sales and go-to-market agreement with Microsoft (MSFT) designed to modernize data centers (CSCO) :

Co announced a multi-year sales and go-to-market agreement with Microsoft designed to modernize data centers through the delivery and acceleration of integrated solutions.Highlights:
Go-to-Market: Cisco and Microsoft agree to a three-year go-to-market plan focused on transforming data centers through the delivery of integrated solutions for enterprise customers and service providers.In year one, the companies will focus on six countries -- the United States, Canada, UK, Germany, France, and Australia -- with expansion to additional countries in the following years.Cisco and Microsoft will align partner incentive programs to accelerate solutions selling via mutual channel partners. Cisco and Microsoft sales teams will work together on cloud and data center opportunities, including an initial program focused on the migration of Windows 2003 customers to Windows 2012 R2 on the Cisco UCS platform.Cypress Semiconductor (CY) announced TechInsight's Teardown.com has found that a Cypress TrueTouch Gen5 controller drives the touchscreen of the new Gear Live smartwatch from Samsung (SSNLF).

Integrated Device Technology (IDTI) has shipped over 1 mln DDR4 registers, the result of growing demand for the next generation of DRAM modules needed for the coming Intel (INTC) Xeon processor E5-2600 v3 platform.

[ReturntoSender]

From Briefing.com: 4:10 pm : The stock market ended the Tuesday session on a broadly lower note. The S&P 500 lost 1.0% with all ten sectors ending in the red. The Russell 2000 outperformed, but still shed 0.3%.
Equity indices were on the defensive from the get-go with the early weakness attributed to disappointing data from overseas. China got the ball rolling overnight with a disappointing HSBC Services PMI report (50.0 from 53.1), which fell to its lowest level on record. Things looked a little bit better in Europe, where Services PMI readings from Germany, Great Britain, and Spain improved, but the overall eurozone reading unexpectedly slipped to 54.2 from 54.4.

Another item that kept dip-buyers on the sidelines was disappointing guidance provided by Target (TGT 58.03, -2.67). The retailer lost 4.4% after priming the market for below-consensus results that will include a $148 million expense stemming from the data breach that occurred last year.

Staying on the earning theme, apparel retailer Coach (COH 35.80, +1.49) rallied 4.3% after reporting better than expected earnings and revenue. For its part, the overall consumer discretionary sector (-0.7%) ended a bit ahead of the broader market.

Outside of the discretionary space, the industrial sector (-0.6%) was the only other cyclical group that was able to finish ahead of the broader market. Dow component Boeing (BA 121.27, +1.34) added 1.1%, which contributed to the relative strength. Transport stocks were not as fortunate with the Dow Jones Transportation Average falling 1.1%.

Other heavily-weighted sectors were not as fortunate with financials (-1.0%) and technology (-0.9%) ending in line with the S&P 500, while energy (-2.1%) lagged throughout the session. Pioneer Natural Resources (PXD 209.98, -12.43) pressured the sector, falling 5.6%, in reaction to below-consensus revenue. Marathon Oil (MRO 38.46, -0.76) also slumped, losing 1.9%, despite its better than expected earnings. Crude oil, meanwhile, fell 1.0% to $97.33/bbl.

Afternoon action saw equities extend their losses with the slide attributed to comments from Polish Foreign Minister Radoslaw Sikorski, who said Russia is poised to pressure or invade Ukraine. However, it is worth noting that the comments did not introduce anything new as Russian troop movements along the border with Ukraine have been watched for months. In all likelihood, the headline was a convenient excuse to take some money off the table after the market could not erase its early loss.

Also of note, the afternoon remarks helped Treasuries recover their intraday losses. The 10-yr note ended flat with its yield at 2.48% after the benchmark yield notched a session high just north of 2.52%.

Participation was a bit below average with fewer than 690 million shares changing hands at the NYSE.

Economic data was limited to Factory Orders and the ISM Services Index:


Factory orders increased 1.1% in June following a downwardly revised 0.6% decline (from -0.5%) in May
The Briefing.com consensus expected factory orders to increase 0.5%
Durable goods orders increased 1.7% in June after declining 0.9% in May, representing a significant upward revision from the advance release (+0.7%)
Excluding transportation, durable goods orders rose 1.9% in June, up from an originally reported 0.8% increase in the advance release
The ISM Non-manufacturing Index increased to 58.7 in July from 56.0, while the Briefing.com consensus expected an increase to 56.5
That was the highest reading since the ISM reformulated the index in January 2008
Including the old survey methods, the index reached its highest level since late 2005

Tomorrow, the weekly MBA Mortgage Index will be reported at 7:00 ET, while the June Trade Balance (Briefing.com consensus -$45.20 billion) will be released at 8:30 ET.

S&P 500 +3.9% YTD
Nasdaq Composite +4.2% YTD
Dow Jones Industrial Average -0.9% YTD
Russell 2000 -3.5% YTD

DJ30 -139.81 NASDAQ -31.05 SP500 -18.78 NASDAQ Adv/Vol/Dec 1128/1.75 bln/1676 NYSE Adv/Vol/Dec 859/688.3 mln/2199

3:30 pm :

Precious metals extended yesterday's losses as a stronger dollar index weighed on prices.
Dec gold slipped into negative territory after pulling back from a session high of $1291.20 per ounce in early morning action. It brushed a session low of $1283.30 per ounce and settled with a 0.3% loss at $1285.10 per ounce
Sep silver fell as low as $19.78 per ounce after retreating form a session high of $20.19 per ounce. Unable to find buying support, it settled at $19.83 per ounce, or 1.6% lower.
Sep crude oil trended lower into negative territory ahead of tomorrow's inventory data. A stronger dollar index also pressured prices.
The energy component pulled back from its session high of $98.15 per barrel and brushed a session low of $97.00 per barrel. It eventually settled with a 1.0% loss at $97.33 per barrel.
Sep natural gas, on the other hand, rose from its session low of $3.84 per MMBtu set in early morning action and traded in a consolidative pattern near the $3.90 per MMBtu level for the remainder of the session. It touched a session high of $3.91 per MMBtu and settled at $3.90 per MMBtu, booking a gain of 1.6%.

4:48 pm Ixia reports EPS in-line, beats on revs; guides Q2 EPS below consensus, revs below consensus (:XXIA) : Reports Q1 (Mar) earnings of $0.06 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $0.06; revenues fell 5.8% year/year to $114 mln vs the $111.11 mln consensus.

Co issues downside guidance for Q2, sees EPS of $0.01-0.05, excluding non-recurring items, vs. $0.10 Capital IQ Consensus Estimate; sees Q2 revs of $109-113 mln vs. $117.28 mln Capital IQ Consensus Estimate.

As previously announced, in July 2014, a Nasdaq hearings panel determined to continue the listing of the company's common stock provided that by Sept 12, 2014 the co becomes current in its periodic filings with the Securities and Exchange Commission and demonstrates compliance with all other requirements for continued listing. The co is working diligently to file its quarterly reports on Form 10-Q for the first and second quarters of 2014 by the end of the extension period.

On August 1, 2014, the company committed to and implemented a company-wide restructuring initiative to better align the company's operating costs with its business opportunities. The restructuring plan includes the elimination of approximately 5% to 6% of the company's employee base as of June 30, 2014. The company expects that the reduction in staffing will be substantially completed by September 30, 2014. The company's restructuring initiative will also include the elimination of currently open replacement positions as well as previously planned new headcount additions, the rationalization of certain facility costs and the reduction of other discretionary costs.

4:15 pm First Solar misses by $0.29, misses on revs; reaffirms FY14 EPS guidance, revs guidance (:FSLR) : Reports Q2 (Jun) earnings of $0.04 per share, $0.29 worse than the Capital IQ Consensus Estimate of $0.33; revenues rose 4.7% year/year to $544.4 mln vs the $812.19 mln consensus.
Q1 Metrics- Actuals


Q1 Gross Profit 17.0% , -7.0 bps q/q Q1 Production447 MW, +1% q/q; Q1 Cap Utilization 80%, -2 bps q/q; Q1 Conversion Efficiency 14.0%, +50 bps q/q 2014 Guidance
Reaffirms EPS guidance of $2.40-2.80 Raises GM guidance to 18-19%, Prior 17-18%Operating Expenses lowered to $365-385 mln from $380-395 mlnReaffirms Operating Income $290-340 million Reaffirms Operating cash flow $300-500 mln Module shipment 2.8 GW Reaffirms Revs guidance $3.7-4.0 bln Reaffims Production 1.9-2.0 GW
CapEx reaffirmed at $300-350 mln

4:14 pm Super Micro Computer beats by $0.01, beats on revs; guides SepQ EPS above consensus, revs above consensus (:SMCI) : Reports Q4 (Jun) earnings of $0.40 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.39; revenues rose 32.8% year/year and 14.5% sequentially to $428.1 mln vs the $396.0 mln consensus. Co issues upside guidance for Q1 (Sep), sees EPS of $0.36-0.42, excluding non-recurring items, vs. $0.35 Capital IQ Consensus Estimate; sees Q1 revs of $395-435 mln vs. $377.9 mln Capital IQ Consensus Estimate.

"Revenue growth was driven by higher sales into virtualization and cloud applications to internet data centers totaling 17.8% of fourth quarter revenue or 150% higher than last year which helped us to achieve record revenue for system sales of 55.2% of revenue.""We are looking forward to the new fiscal year and we have been preparing to be a strong market leader in the upcoming technology refresh cycle related to the Intel Grantley (Haswell new processor) launch. We have created new X10 based product lines optimized for Grantley which includes our new Ultra server architecture, our new Data Center Optimized line, and our TwinPro line to just name a few of the many products that will lead the industry in innovation and time to market."

12:36 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

DG (57.75 +3.29%): A Bloomberg story indicated that DG may explore Family Dollar (:FDO) bid.
ADM (48.75 +3.84%): Beat on EPS by $0.04, missed on revs.
REGN (331.5 +1.86%): Beat on EPS by $0.18, beat on revs; reaffirmed FY14 US EYLEA net product sales guidance.

Large Cap Losers

VIV (19.07 -6.38%): Telefonica S.A. (:TEF) and Telefonica Brasil submitted an offer to VIV for the combination of Telefonica Brasil and Global Village Telecom, which includes cash consideration of 11,962 mln Brazilian Reais and newly issued shares representing 12% of the share capital of the new Telefonica Brasil.
PXD (210.5 -5.35%): Reported Q2 (Jun) results, missed on revs; announced sale of Hugoton and Barnett Shale assets for $495 mln.
WLK (86.75 -2.82%): Missed on EPS by $0.22, missed on revs.

Mid Cap Gainers

USM (38.47 +14.46%): Upgraded to Strong Buy from Outperform at Raymond James.
TDS (25.97 +10.65%): Upgraded to Strong Buy from Outperform at Raymond James; tgt raised to $39 from $37.
NRF (17.23 +6.75%): Co to acquire Griffin-American Healthcare REIT II in $4 bln transaction.

Mid Cap Losers

BLMN (15.51 -21.73%): Missed on EPS by $0.02, reported revs in-line; guided FY14 EPS below consensus.
CRR (105.89 -13.17%): Weakness attributed to comments by ROSE that it was changing the completion design in the Eagle Ford wells to sand from ceramic proponents.
DWRE (53.66 -13.3%): Beat on EPS by $0.10, beat on revs; Tom Ebling, co's CEO, elected Chairman of the Board; Stephan Schambach named Chairman of the Board Emeritus.

11:56 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (88) outpacing new highs (42) (:SCANX) : Stocks that traded to 52 week highs: ADM, AKRX, AMED, CENX, CHKE, CLW, CORE, CTP, DDS, DLR, EW, EXPE, FCH, GCI, GTIV, HCA, HNRG, HSH, HSKA, IDIX, KALU, MAG, NBTF, NDZ, NMM, NVEC, PCRX, PEIX, PLNR, PTRY, REX, SCI, SCOR, SFBC, SIMO, SKM, SPBC, SPR, THC, TSRA, VDSI, X

Stocks that traded to 52 week lows: ACUR, ACXM, AEIS, AIXG, AKAO, ALCS, ALLT, ALLY, ANAD, ARCC, ASPN, ASTI, BEL, BLMN, BODY, BPHX, CERU, CGG, COCO, COOL, CPHC, CUB, CZR, DB, DGII, DSKX, ECOM, EGLE, ENZY, FE, GTXI, HGG, HGSH, HLF, HUSA, IKAN, IMN, ISNS, KIOR, LDR, LF, LPX, MFG, MMLP, NEWL, NILE, NKSH, NRX, NUS, NVDQ, NVGN, OCN, OIBR, OIBR.C, OMEX, PCL, PED, PLX, PRKR, PSTI, PT, PVH, QLGC, RDEN, RGDX, RIG, RP, SALE, SC, SKYW, SLRC, SPDC, TBBK, TESS, TEU, TGE, TNAV, UBS, UPI, VCRA, VGGL, VII, VSI, VSR, WAIR, WMS, XCO, XXIA

ETFs that traded to 52 week highs: none

ETFs that traded to 52 week lows: EWO, SGG

Semtech (SMTC) announced that Microchip Technology (MCHP) has adopted Semtech's long-range LoRa RF technology.

GT Advanced Technologies (GTAT 15.75, +1.62): +11.5% after its better than expected guidance overshadowed its disappointing results

Motorola Solutions (MSI 61.00, -3.11): -4.9% after reporting Q2 earnings of $0.47, which may not compare to the Capital IQ consensus estimate Canadian Solar (CSIQ) announced that it supplied 4 MW of Canadian Solar PV Modules for the Spanish Town Estate Solar project, recently acquired by NRG Energy (NRG).

[ReturntoSender]

InvestmentHouse Weekend Market Summary

http://www.investmenthouse.com/weekendmarketsummary.htm

- Air strikes in Iraq send market down, Russia ending another military exercise bounces it back up.
- NASDAQ moves back up into its range after cracking the bottom of it Thursday, but DJ30 leads the Friday move.
- Expiration week and stocks are bouncing into it.
- Still split leadership and a split market. This week it looks as if they want to come together a bit, but that is likely just temporary.

Thursday saw NASDAQ break the bottom of its 5 week range and the overnight futures looked grim after US air strikes against ISIS were authorized and indeed occurred on Friday. Dow futures were off triple digits on top of the Thursday sharp selling.

Then they weren't. Why? Because word hit that Russia was going to de-escalate the situation in Ukraine. What Russia did was end some military exercise on the exact date it said it would end the exercises. That was somehow viewed as a positive, likely because the West imputed Russia's actions at the border meant invasion. The irony is that Putin has done this several times during this ongoing fight, saying he is pulling back but never really pulling them all. Think of it as gasoline prices: every time there is a reason that spikes prices higher, they never seem to give up all of the spike even after the reason for the spike is alleviated. Prices remain a bit higher even after things normalize. Putin may have ended the war exercises, but likely more troops and war equipment remain.

That doesn't matter now does it? At least to the market and the day at hand. Sure when Putin cranks up the war machine again stocks will suffer, but Friday the notion Russia was packing up brought bids back into the market with big reversals on the indices.

SP500 22.02, 1.15%
NASDAQ 35.93, 0.83%
DJ30 185.66, 1.13%
SP400 1.02%
RUTX 1.04%
SOX 1.14%

Volume: Of course it fell on both NYSE (-8.2%) and NASDAQ (-10.7%). Once again volume is lower on the upside versus the downside, the opposite of what the upside desires.

A/D: 2.7:1 NYSE, 3:1 NASDAQ. Nothing shabby about the upside breadth.

Note how the indices were all up roughly 1%. Pretty even buying across the board. Also note that NASDAQ, the relative strength leader up to last Thursday, lagged Friday. The last holdout threatening a further break of its lateral range? Will it get a bailout from the large cap NYSE indices?

The problem Friday was not the bounce though that is part of the scenario. The market tends to show upside ahead of the weekend then geopolitical issues arise anew and stocks open lower Monday.

All in all, NASDAQ didn't really help its pattern, neither did RUTX. SOX threw in with NASDAQ as well, with a little gain in an ongoing trend lower below the 10 day EMA. Up, but outside of the large cap NYSE indices not a lot of power.

Nonetheless, SP500 and DJ30 were precisely in position to bounce even if NASDAQ was a bit sloppy Thursday. The large cap NYSE indices bounced off a sharp pullback to key support, and NASDAQ was able to recover its range. NASDAQ is still quite problematic after that Thursday lower closing low, but if SP500 and DJ30 want to put in a rather normal bounce from important support in an oversold condition, NASDAQ at least gets a reprieve.

THE MARKET

CHARTS

NASDAQ: The market relative strength leader for over a month is now having issues of its own. Broke to a lower closing low Thursday on higher volume, cracking its trading range and opening the door to further selling a la the rest of the indices. Recovered Friday, moving back over the 50 day EMA. Perhaps just a shakeout as some of its key components, e.g. AAPL, have put in nice pullbacks to consolidate good runs.

DJ30: Strong price surge off a full test of the 200 day SMA. Recaptured almost the entirety of the Tuesday and Thursday losses in one session. Doesn't mean it rallies to a new high, but it did bounce at key support after a 750 point drop in two weeks. In that light the bounce makes a lot of sense but damage was done and the question is what kind of base it needs to put in.

SP500: After closing just below the lower trendline from 2012 on Thursday, SP500 bounced as well, surging nicely. Lower volume, however, shows a lack of consensus on the upside move. Oversold, at a logical support level, surging upside.

SOX: Ugly downside engulfing pattern Thursday (gapped higher reversed to close lower than Wednesday), but gapped upside Friday. This pattern doesn't really change the Thursday downside engulfing pattern, leaving SOX in a more negative pattern that may bounce some with the market but is still weak.

RUTX: Continued its weeklong recovery from the second leg lower in its selloff from the early July lower high. Closed out the week right at the 10 day EMA, the point where it failed in mid-July and late July on its way to a lower low in the selloff. RUTX is bouncing from its last downside leg, but thus far that is no change from its weaker pattern.

SP400: The midcaps spent all week working laterally after the sharp late July drop. Holding over the 200 day SMA and working laterally, SP400 bounced Friday to a higher high but closing just below the 10 day EMA. SP400 has put in a full decline from its head and shoulders pattern and that means it can start to base from here, using this low as its low, or close to it, for the pattern/base that sets up. That means how it trades is a good indication for the rest of the market.

Summary: NASDAQ was a relative strength leader but started to crack on Thursday, threatening a drop that would certainly indicate the market had more consolidation, perhaps at deeper levels than last week's lows. Just as it was breaking, DJ30, SP400, SP500 bounced off of support. They can provide upside support and allow NASDAQ to continue its hold of the trend. SOX remains weak, however, and its move lower foretold SP500's and DJ30's break. Its Friday bounce was less than convincing, so watching SOX, NASDAQ in its trading range, and SP400 and its action after completing the downside pattern.

LEADERSHIP

Big Names: AAPL put in a nice test of the 50 day EMA. Rallied up the 20 day EMA several times, tested the 50 day, should be ready to rally some more if the trend holds. GOOG spent the week at support and the 200 day SMA is rising just below it. In position to bounce as well but the pattern still looked head and shoulderish. NFLX bounced nicely Wednesday and Thursday. PCLN surged Monday, consolidated nicely the rest of the week. These all look pretty solid and that bodes well for NASDAQ.

Consumer products: Up last week but somewhat precarious, e.g. CL, CLX. PG recovered but its pattern is so wild. Somewhat of a good sign investors are not flocking to these stocks.

Energy: Good recoveries Friday. APC bouncing off the 50 day EMA. CVX recovering but it broke the 50 day EMA and damaged its pattern. HAL is also struggling below the 50 day. Stocks are not collapsing but are undergoing a 3 week consolidation.

Metals: Still strong, e.g. STLD, AKS. Industrial metals/minerals still solid, e.g. CLF.

Chips/electronics: Still widely mixed. INTC, SWKS, MLNX, NVDA performing well. SLAB, ANAD, TXN are not.

MARKET STATISTICS

NASDAQ
Stats: +70.91 points (+1.72%) to close at 4183.9
Volume: 1.929B (-10.74%)

Up Volume: 1.66B (+150M)
Down Volume: 266M (-407.54M)

A/D and Hi/Lo: Advancers led 2.95 to 1
Previous Session: Advancers led 1.95 to 1

New Highs: 41 (+14)
New Lows: 27 (-13)

S&P
Stats: +20.22 points (+1.09%) to close at 1872.18
NYSE Volume: 622M (-8.26%)

A/D and Hi/Lo: Advancers led 2.72 to 1
Previous Session: Advancers led 2.16 to 1

New Highs: 91 (+45)
New Lows: 65 (-8)

DJ30
Stats: +181.04 points (+1.11%) to close at 16437.18

OTHER MARKETS

Bonds: Strong move on the week though Friday bonds were off: 2.42% versus 2.39%

Oil: 97.65, +0.03. Jumped off the early week selling but faded to flat. Down hard the past two months but trying to set up an oversold bounce.

Gold: 1311.00, -3.50. Bounced on the week but was off Friday, unable to hold a nice early surge. Held the 200 day SMA midweek and surged nicely.

USD/JPY: 102.01 versus 102.10.

SENTIMENT INDICATORS

VIX: 13.82; -1.07
VXN: 17.72; -1.39
VXO: 12.64; -1.37

Put/Call Ratio (CBOE): 0.61; -0.3

Bulls and Bears:

Bulls fall hard: 50.5% versus 55.6%

Bears climb back modestly: 17.1% versus 16.2%

Theory: When everyone is bullish and has put all their capital to work, where does the ammunition to drive the market come from? There is always new money to start a new year. After that is used will more money be coming? That is the question.

Note the extreme bullishness: it was this high in 2007 at the crash, in early 2005 as well.

Bulls: 50.5% versus 55.6%
55.6% versus 56.5% versus 56.6% versus 60.6% versus 57.6% versus 60.2% versus 61.4% versus 62.6% versus 62.2% versus 58.3% versus 57.2% versus 55.1 versus 55.7 versus 54.7 versus 51.6 versus 50.5 versus 54.6% versus 50.5 versus 54.7% 52.0% 54.6% 53.5% 46.5% 41.8% 45.9% 53.1% 57.6 56.1 60.6% 61.6% 60.0% 58.2% 57.1% 55.7% 53.6% 52.6% 55.2% 52.6 49.5 42.3% 45.4 46.4% 44.3% 42.3% 37.1% 37.1% 38.1% 43.3%.

Background: Last undercut 35%, the threshold for bullishness, in early June 2012.

Bears: 17.1% versus 16.2%
16.2% versus 17.2% versus 15.1% versus 15.2% versus 16.1% versus 16.3% versus 17.2% versus 17.4% versus 17.3% versus 18.3% versus 19.4% versus 20.6% versus 19.7% versus 21.7% versus 20.6 versus 18.6% 18.6% 17.5% 17.4% 15.1% 17.2% 17.2% 17.4% 17.4% 15.3% 15.1 15.3% 15.2% 15.2% 14.0 14.3 14.3% 14.4 15.5 15.5% 15.6% 16.5% 18.5 21.6% 20.6% 18.6% 20.6% 21.6% 22.7% 23.7% 23.8% 21.6%.

Background: Over 35% is the threshold to be really be a good upside indicator. For reference, bearishness hit a 5 year high at 54.4% the last week of October 2008. The move over 50 took bearish sentiment to its highest level since 1995. Extreme negative sentiment. Prior levels for comparison: Bearishness peaked at 37.4% in September 2007. It topped the June 2006 peak (36%) on that run. That June peak eclipsed the March 2006 high (33%) and well above the 2005 highs that spawned new rallies (30% in May 2005, 29.2% in October 2005). That was a huge turn, unlike any seen in recent history.

NEXT WEEK

A very full week of economic data though Monday starts quiet. JOLTS, Retail Sales, PPI, New York PMI, Industrial production. August expiration as well.

That is just the domestic economics. There is still the European economic crisis redeveloping, though is it a crisis when nothing was really done to fix the problems and they not surprisingly show up again?

Will Russia re-escalate after de-escalating? At some point it will happen again. More air strikes in Iraq? The President said it could be 'long-term' as his vacation in Martha's Vineyard starts.

Oftentimes in these geopolitical environments the market bounces Friday then is off on Monday. That is short term bobbles in the overall picture, however. The index patterns and the leadership tell the story. As of Friday, the market was still split with NASDAQ, despite Thursday, still the leader. As pointed out, many NASDAQ stocks are in good position to provide the index support after a couple of weeks pullback. With SP500 and DJ30 bouncing off of important support as you would expect after an oversold condition, this week, barring any new geopolitical surprise, is in good shape to rebound for expiration. Indeed, despite all of the geopolitics the past several weeks, the market is not all that bad. Thus when the indices fall to support and the negatives dissipate some, a bounce is pretty normal.

That said, we see a lot of mixed plays, i.e. a lot of downside possibilities and a lot of upside possibilities. Wow, nothing new there. That is the market's MO the past 6 weeks. Thus while AAPL, BABY, UA, ATHM, SFUN and others look in position to rally, FDX, SNDK and others look ready to fall further.

Eventually they come together. The question is whether it is to the upside or downside. This week it looks as if they want to merge a bit toward the upside overall as SP500 and DJ30 bounce toward NASDAQ. That works, but we would not be surprised to see the bounce run out of gas.

Have a great weekend!

SUPPORT AND RESISTANCE

NASDAQ: Closed at 4370.90

Resistance:
4372 is the March 2014 high
The 20 day EMA at 4394
4486 is the July 2014 high
4558 is the lower November 2012 trendline
4641 is the upper channel line formed off the 11/2012 low.

Support:
The 50 day EMA at 4361
4289 is the July 2000 recovery high
4277 is the March lower gap point
4246.55 is the January 2014 peak. Key level.
The 200 day SMA at 4186
4131 is the March 2014 low
4104 is the lower gap point from 12/20/13
4070 is the series of highs from late November/early December
3991 is the prior November 2013 high and the post-bear market high.
3968 is the February 2014 low
3946 is the April 2014 intraday low

S&P 500: Closed at 1931.59

Resistance:
The 50 day EMA at 1945
1966 is the December 2012 up trendline
1991 is the July 2014 high

Support:
1915 is the lower trendline from 11/2012
1902 from early May was the intraday all-time high.
1897 is the prior all-time high hit in April 2014
1883.57 is the early March high.
The 200 day SMA at 1863
The December and January highs at 1848
The April 2014 low at 1814
1808 is the November and December 2013 twin peaks
1775.22 is the October prior all-time high
1768 is the December 3013 low
1738 is the February 2014 low
1730 is the September 2013 peak
1710 is the August 2013 peak.
1698 to 1700 are the July and August interim highs
1687 is the May high and post-bear market high
1685 is the mid-August 2013 upper gap point

Dow: Closed at 16,553.93

Resistance:
16,736 is the penultimate all-time high from May 2014
The 50 day EMA at 16,775
16,970 is the June 2014 former all-time high
The 20 day EMA at 16,730

Support:
16,341 is the May low
16,632 is the April 2014 all-time high
16,589 is the December 2013 all-time high
16,506 is the March 2014 peak
The 200 day SMA at 16,349
16,257 is the January 2014 low
16,179 is the November 2013 peak.
15,739 is the December 2013 low
15,696 is the September 2013 peak
15,659 is the August 2013 peak
15,542 is the May 2013 intraday high
15,340 is the February 2014 low
15,318 is the June closing high
15,050 from the August 2013 interim recovery high
14,888 is the April peak and prior all-time high
14,844 is the June intraday low
14,762 is the August 2013 low
14,551 is the June 2013 intraday low on the selloff (14,659 closing)

ECONOMIC CALENDAR

August 8 - Friday
- Productivity-Prel, Q2 (8:30): 2.5% actual versus 1.4% expected, -4.5% prior (revised from -3.2%)
- Unit Labor Costs, Q2 (8:30): 0.6% actual versus 2.0% expected, 11.8% prior (revised from 5.7%)
- Wholesale Inventories, June (10:00): 0.3% actual versus 0.4% expected, 0.3% prior (revised from 0.5%)

August 12 - Tuesday
- JOLTS - Job Openings, June (10:00): 4.635M prior
- Treasury Budget, July (14:00): -$96.0B expected, -$97.6B prior

August 13 - Wednesday
- MBA Mortgage Index, 08/09 (7:00): 1.6% prior
- Retail Sales, July (8:30): 0.3% expected, 0.2% prior
- Retail Sales ex-auto, July (8:30): 0.3% expected, 0.4% prior
- Business Inventories, June (10:00): 0.4% expected, 0.5% prior
- Crude Inventories, 08/09 (10:30): -1.756M prior

August 14 - Thursday
- Initial Claims, 08/09 (8:30): 305K expected, 289K prior
- Continuing Claims, 08/02 (8:30): 2523K expected, 2518K prior
- Export Prices ex-ag., July (8:30): -0.3% prior
- Import Prices ex-oil, July (8:30): -0.1% prior
- Natural Gas Inventor, 08/09 (10:30): 82 bcf prior

August 15 - Friday
- PPI, July (8:30): 0.2% expected, 0.4% prior
- Core PPI, July (8:30): 0.2% expected, 0.2% prior
- Empire Manufacturing, August (8:30): 15.5 expected, 25.6 prior
- Net Long-Term TIC Fl, June (9:00): $19.4B prior
- Industrial Production, July (9:15): 0.3% expected, 0.2% prior
- Capacity Utilization, July (9:15): 79.2% expected, 79.1% prior
- Michigan Sentiment, August (9:55): 81.7 expected, 81.8 prior

[ReturntoSender]

From Briefing.com: 4:15 pm : The stock market started the first full week of September on a cautious note. The S&P 500 lost 0.3%, but the relative strength of small cap stocks helped the Russell 2000 (+0.2%) and Nasdaq Composite (+0.2%) finish ahead of the benchmark index.

Equity indices struggled from the get-go with the overall risk sentiment dampened by continued dollar strength that sent the US Dollar Index (+0.54, 84.28) near its best level of the year. The greenback surged on the back of yen weakness following a downward revision to Japan's Q2 GDP (to -7.1% from -6.8%), while also drawing strength from weakness in the British pound. The pound fell to 1.6110 from 1.6330 against the greenback after a weekend YouGov poll revealed majority support for Scottish independence with the referendum coming up on September 18.

Conversely, the dollar strength weighed on commodities with gold futures falling 0.9% to $1255.80/ozt. Similarly, crude oil also retreated, testing its 2014 low, before narrowing its loss to 0.7% by the pit close. The energy component settled at $92.64/bbl, but continued its rebound in electronic trading.

The early weakness in crude contributed to a defensive start for the energy sector (-1.6%), which ended near its worst level of the session. Dow components Chevron (CVX 126.21, -1.19) and ExxonMobil (XOM 97.77, -1.49) posted respective losses of 0.9% and 1.5% as the stronger dollar and cheaper oil weighed on earnings prospects of the two multinational giants.

Energy notwithstanding, other sectors ended much closer to their flat lines. The consumer discretionary sector (-0.5%) weighed amid weakness in the shares of Ford (F 16.80, -0.34) and General Motors (GM 33.24, -1.04) after Morgan Stanley downgraded the U.S. auto sector.

Elsewhere, the consumer staples sector (-0.6%) was pressured by Campbell Soup (CPB 43.39, -1.15), which fell 2.6% in reaction to an in-line report and disappointing guidance. Manufacturers of cosmetics also lagged after the CEO of L'Oreal (LRLCY 32.60, -0.73) made cautious comments about the industry. Peers Avon Products (AVP 13.66, -0.18) and Estee Lauder (EL 75.59, -1.19) lost 1.3% and 1.6%, respectively.

On the upside, the technology sector (+0.2%) outperformed throughout the session, which underpinned the Nasdaq. Top-weighted components like Google (GOOGL 601.63, +3.85), Microsoft (MSFT 46.47, +0.56), and Intel (INTC 35.33, +0.33) posted gains between 0.6% and 1.2%, while the top index member by weight-Apple (AAPL 98.35, -0.62)-lost 0.6%.

High-beta Nasdaq components also provided a measure of support with the PHLX Semiconductor Index adding 0.2% and the iShares Nasdaq Biotechnology ETF (IBB 273.06, +2.46) climbing 0.9%. Meanwhile, the broader health care sector (+0.1%) ended just above its flat line.

Treasuries rallied overnight, but spend the day in a steady retreat. The 10-yr note shed four ticks to boost its yield to 2.47%.

Participation remained light with fewer than 590 million shares changing hands at the NYSE floor.

Economic data was limited to the Consumer Credit report for July, which pointed to a $26.00 billion increase from an upwardly revised $18.80 billion (from $17.30 billion) in June, while the Briefing.com consensus expected an increase of $17.40 billion.

Tomorrow's data will be limited to the Job Openings and Labor Turnover Survey, which will be released at 10:00 ET.


Nasdaq Composite +10.0% YTD
S&P 500 +8.3% YTD
Dow Jones Industrial Average +3.2% YTD
Russell 2000 +0.7% YTD

DJ30 -25.94 NASDAQ +9.39 SP500 -6.17 NASDAQ Adv/Vol/Dec 1552/1.54 bln/1230 NYSE Adv/Vol/Dec 1159/587.8 mln/1888 3:35 pm :

The dollar index continued to weigh on precious metals today
Gold and silver sold off in early trade and basically remained there for the rest of the session
Dec gold finished $12.90 lower at $1254.30/oz, while Dec silver ended $0.20 lower at $18.97/oz.
Crude oil sold off from its overnight high of $93.56/barrel and fell as low as $91.80.
However, crude began to recover and closed $0.68 lower at $92.64/barrel. Oct crude is now at $92.94/barrel in electronic trading.
Natural gas futures rallied today and held it gains.
Oct nat gas rose as high as $3.89/MMBtu and finished out the day up $0.09 higher (or +2.4%) at $3.88/MMBtu.
Dec copper rallied this morning, but sold off later in the day to $3.17 from around $3.21/lb, erasing earlier gains. Dec copper ended the day unchanged at $3.17/lb.

4:16 pm Novatel Wireless announces strategic investment from HC2 (NVTL) :

In exchange for a combination of common stock, warrants and convertible preferred stock, HC2 will invest up to an aggregate of ~$23.7 mln in the Company, comprised of an initial cash investment of ~$14.4 mln, which was funded today, and up to another $9.3 mln if the warrants are exercised for cash. HC2's initial ownership stake in the outstanding common stock of the Company is ~17%. When and if the preferred stock is fully converted, HC2's ownership is expected to increase to ~ 18% and when and if both the preferred stock is fully converted and the warrants are fully exercised, HC2's ownership stake is expected to increase to ~25%, both percentages based on the Company's current outstanding shares. In connection with its investment, HC2 is also entitled to certain rights under an Investors' Rights Agreement with the Company, including Board observation rights and expected future appointments for Philip Falcone, HC2's Chairman, President & CEO, and Robert Pons, its Executive Vice President - Business Development, to the Novatel Wireless Board of Directors.
Upon the closing of this transaction, the Company issued to HC2 (a) 7,363,334 shares of its common stock at a price of $1.75 per share, (b) 5-year warrants to purchase an additional 4,117,647 shares of common stock at an exercise price of $2.26 per share and (c) 87,196 shares of Series C Convertible Preferred Stock at a price of $17.50 per share, with each share being convertible into 10 shares of the Company's common stock upon the satisfaction of certain conditions.

12:59 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

WDAY (93.4 +3.70%): Mentioned positively at Barron's
TWTR (52.31 +3.18%): Trading higher on reports that co will be testing a "Buy Now" feature and will add more retailers over the holidays
BA (128.08 +2.72%): Ryanair (RYAAY) entered into an agreement to acquire up to 200 new Boeing 737 MAX 200 airplanes

Large Cap Losers

CXO (128.74 -5.14%): Weakness in large cap oil and gas companies: EOG, PXD, WLL, APC, XEC, CLR also lower
LYG (4.73 -3.77%): Seeing speculation that co will fail the European Central Bank's review of assetsGM (33.38 -3.46%): US auto manufacturers downgraded to Cautious at Morgan Stanley

Mid Cap Gainers

GPRO (62.95 +7.15%): Initiated with an Outperform at FBN Securities
FEYE (33.55 +5.77%): Upgraded to Buy from Neutral at UBS
RAX (39.26 +5.41%): Higher following rumors that co may be a takeout candidate by CenturyLink (CTL)

Mid Cap Losers

HK (5.31 -6.40%): Weakness in mid cap oil and gas companies: NFX, RSPP, BCEI, CRZO also lowerAUY (7.39 -4.40%): Downgraded to Hold at GMP Securities
Z (131.79 -3.94%): Reported August monthly unique users of 86,293,000 vs 88,836,000 in prior month and 63,678,000 in prior year

12:13 pm Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (155) outpacing new lows (48) (:SCANX) :

Stocks that traded to 52 week highs: ADP, AEC, AIV, ALX, AMT, AMWD, AMX, ANDE, ANET, AOSL, ASR, AVB, AVGO, AWK, BDSI, BHBK, BKYF, BLX, BR, BRCM, BRK.B, BSQR, CAAS, CAH, CARO, CBK, CCI, CHA, CHDN, CHKP, CHL, CORE, COST, CP, CPT, CRAI, CTLT, CUZ, CVS, DECK, DFT, DK, DLPH, DRH, DSKY, ECL, EEQ, ENPH, ENR, EQR, ESS, FB, FDP, FDS, FIS, FISV, GD, GFIG, GGP, GPRO, GPT, HBI, HCA, HIW, HOT, HSII, HTLD, IDTI, IESC, IFN, IG, INTC, INTT, INVE, INXN, IRM, IT, ITMN, ITT, KEX, KINS, KLAC, KLIC, KMX, KR, KRC, LDL, LEA, LG, LQ, LVNTA, MAG, MAR, MAS, MBLY, MCK, MCO, MCRL, MEI, MHFI, MIK, MITT, MRK, MS, MSFT, NATH, NSC, NXPI, ODFL, ORLY, PHI, PIP, PNK, RADA, RAIL, RDY, RGS, RLJ, RPAI, RPT, RWC, SAIA, SAVE, SBAC, SEE, SHI, SKX, SNCR, SNP, SRE, THRM, TLK, TNAV, TRNO, TSO, UA, UDR, UEPS, UGI, UTSI, VC, VDSI, VFC, VGR, VIMC, VRTA, WIFI, WNR, WOOF, WPC, WSBF, WWAV, WYN, XPO, YY

Stocks that traded to 52 week lows: ABCO, ADGE, AKAO, ALXA, AMDA, AMPE, AMZG, ANTH, ARCO, ARTW, AWRE, BAXS, BTU, CHOP, CLD, CYTX, DLA, DRQ, EGT, ENZY, EXEL, EXXI, FHCO, FI, FST, GOMO, HIBB, IMRS, ISH, KEG, KGC, KIPS, LDR, LODE, MCD, MIND, PDII, RIG, RLJE, RVLT, SKY, TAC, TOWN, TRMR, UBNK, VCRA, WRLD, XUE

ETFs that traded to 52 week highs: IYR, IYT, PIN, SDY, SMH, SOXX, URE, UUP, VNQ, XLK

ETFs that traded to 52 week lows: JJA, RJA, SGG

9:12 am GSI Technology board unanimously rejects unsolicited acquisition proposal from GigOptix (GIG) (GSIT) : Co today announced that its board, in consultation with its financial and legal advisors, unanimously determined to reject GigOptix (GIG), Inc.'s unsolicited, non-binding and conditional proposal to acquire the company that had been publicly announced on August 19, 2014.

"The Board strongly believes that GSI Technology's prospects as a strong independent company are excellent and that our goal of continuing to build long-term stockholder value will be best served by remaining focused on the execution of our business plan."

Xilinx (XLNX) and Northwest Logic and Xylon, Xilinx Premier Alliance Members, announce the availability of a low cost Xilinx FPGA-based MIPI interface IP that is optimized for cost sensitive video displays and cameras.

Canadian Solar (CSIQ) announced that a wholly owned subsidiary of the Company has entered into an agreement with Sichuan Development Investment Management to establish an investment fund to finance the development, construction and ownership of solar power generation projects in China.

Advanced Energy Industries (AEIS) announced details on a new AE 3TL inverter accessory that enables solar installers, site designers and project developers to conserve space and increase project yield using an innovative technique to install Advanced Energy (AE) string inverters in a horizontal (0 ) orientation.

The August employment report came and went but not without leaving the impression that it was a good report for anyone who doesn't want to see the Federal Reserve raise the fed funds rate anytime soon.

That's because it showed a much weaker than expected nonfarm payroll gain of 142,000, which was well below consensus estimates and the prior 12-month average of 212,000. The report also revealed a drop in the labor force participation rate to 62.8% from 62.9%.

The reaction in the S&P futures market was swift and friendly as the futures spiked 10 points following the report's release. The cash market, however, was slow to respond and started the session on a relatively weak note. It eventually found its stride, though. The S&P moved steadily higher after finding technical support at the 1990 level and ended at its high for the day.

Fittingly, a late boost into the close was aided by Boston Fed President Rosengren who said the employment report was somewhat disappointing and that the Fed should be patient in removing stimulus, not raising rates until it is within one year of its mandate.

At about the same time, newswires were sharing the news that the IPO price range for Alibaba.com is expected to be $60-$66 and that 2.5 bln shares will be outstanding after the IPO (320 mln will be sold to the public at the IPO). That translates into an expected market cap of roughly $150-165 billion. That news certainly didn't hurt the fortunes of Yahoo (YHOO), which owns a 22.6% stake in Alibaba.com and will sell 121.7 mln shares at the IPO, according to CNBC.

It was also said late in the day that Dish Network (DISH 66.44, +0.60) is reportedly in talks with Deutsche Telekom about a T-Mobile (TMUS 30.67, +0.43) deal.

The burgeoning excitement about the Alibaba.com IPO solidified what was already a pretty solid day for the information technology sector (+0.7%), which outperformed the broader market. It did so, bolstered by healthy gains in a number of its components.

Akamai (AKAM 61.54, +1.12) jumped 1.9% after UBS started the stock with a Buy rating. Sandisk (SNDK 98.79, +2.56) increased 2.7% on the back of a Morgan Stanley upgrade to Overweight from Equal Weight.

Apple (AAPL 98.97, +0.85) supplier Avago Technologies (AVGO 87.88, +1.79) stayed hot following its earnings report earlier in the week, tacking on another 2.1%. AVGO has gained 16% over the last eight trading sessions.

Intuit (INTU 83.98, +1.72), which saw Bank of America reiterate its Buy rating after meeting with the company's CEO, also performed well on Friday.

Facebook (FB 77.26, +1.31), Microsoft (MSFT 45.91, +0.65), Google (GOOG 586.06, +4.08), and Micron (MU 32.94, +0.82) outperformed, too, as Friday's participants took a liking to many large-cap technology names.

The strength in Micron, combined with gains in Qualcomm (QCOM 75.81, +0.70), Texas Instruments (TXN 48.59, +0.33), and Intel (INTC 35.00, +0.10) gave the Philadelphia Semiconductor Index a nice 0.9% boost that accounted for nearly the entirety of its gains for the week. NVIDIA (NVDA 19.97, -0.06) didn't participate, though, as it slipped modestly in the wake of its announcement that it is suing Samsung and Qualcomm for infringing GPU patents in a number of mobile devices.

On a related note, chip makers RF Micro Devices (RFMD 12.31, +0.21) and TriQuint Semiconductor (TQNT 20.41, +0.41) both garnered some added buying attention after RF Micro Devices confirmed its shareholders approved the merger of equals between the two companies. Similarly, Ambarella (AMBA 36.90, +1.13), which is a supplier for GoPro (GPRO 58.75, +5.67), logged a healthy gain after reporting better than expected earnings and upbeat guidance.

That was more than Ciena (CIEN 19.38, +0.87) did on Thursday when it reported its quarterly results, yet the networking specialist bounced back on Friday with the help of a Goldman Sachs upgrade to Buy from Neutral.

[ReturntoSender]

From Briefing.com: 4:10 pm : The stock market ended the midweek session on an upbeat note with the Nasdaq Composite providing leadership. The tech-heavy index advanced 0.8%, while the S&P 500 added 0.4% with seven sectors posting gains.

Equities were driven into the red shortly after the open due to notable weakness in the energy sector. The growth-sensitive group was down in excess of 1.0% during the first hour of action, but narrowed its loss to 0.3% by the close. For its part, crude oil fell 1.1% to $91.71/bbl, ending the pit session at its lowest level since early January.

While the continued weakness in crude prices weighed on the sector, which is now down 4.1% for the month, the persistence of dollar strength also contributed negatively to earnings prospects of multinational companies like Chevron (CVX 124.28, -0.90) and ExxonMobil (XOM 96.81, -0.58). The Dollar Index (84.22, -0.06) climbed to its best level in 14 months before slipping in the early afternoon. The greenback retreated against the British pound after latest poll results from Scotland indicated majority support for staying in the UK (weekend YouGov poll gave a slight edge to the pro-independence movement). The pound/dollar pair climbed to 1.6210 after trading at 1.6070 in the early morning.

Despite the early weakness in the energy sector, equity indices were able to climb off their lows with help from top-weighted financials (+0.4%), health care (+0.7%), and technology (+0.8%). The three groups began the day ahead of the broader market and their strength pulled dip-buyers into the fray.

The technology sector finished in the lead with Apple (AAPL 101.00, +3.01) fueling the strength. The top-weighted sector component jumped 3.1%, while social media names also did some heavy lifting. Twitter (TWTR 52.91, +2.30) rallied 4.5% following an upgrade at UBS, while Facebook (FB 77.43, +0.76) and Yelp (YELP 82.64, +1.76) gained 1.0% and 2.2%, respectively.

Elsewhere, health care received significant support from biotechnology as the iShares Nasdaq Biotechnology ETF (IBB 274.41, +4.93) jumped 1.8%, which factored into the strong showing for the Nasdaq Composite.

Also of note, the industrial sector (+0.1%) was pushed into the green during afternoon action by the relative strength of defense contractors. The PHLX Defense Index added 0.7%, while transport stocks could not keep up with the broader market. The Dow Jones Transportation Average added 0.1%.

Treasuries slumped overnight and spent the duration of the session near their lows. The 10-yr note shed eight ticks to send its yield higher by three basis points to 2.54%.

Participation was a bit light with fewer than 600 million shares changing hands at the NYSE floor.

Economic data was limited to just two data points:


The weekly MBA Mortgage Index fell 7.2% to follow last week's uptick of 0.2%
Wholesale inventories increased 0.1% in July following a downwardly revised 0.2% (from 0.3%) increase in June
The Briefing.com consensus expected an increase of 0.5%
Overall, wholesale sales increased 0.7% in July after increasing by 0.4% in June

Tomorrow, weekly initial claims (Briefing.com consensus 300K) will be released at 8:30 ET, while the Treasury Budget for August (expected deficit of $129 billion) will cross the wires at 14:00 ET.

Nasdaq Composite +9.8% YTD
S&P 500 +8.0% YTD
Dow Jones Industrial Average +3.0% YTD
Russell 2000 +0.1% YTD

DJ30 +54.84 NASDAQ +34.24 SP500 +7.25 NASDAQ Adv/Vol/Dec 1706/1.68 bln/1072 NYSE Adv/Vol/Dec 1627/594.4 mln/1417 3:35 pm :

Dec gold fell for a third consecutive session despite touching a session high of $1253.80 per ounce in morning floor trade. The yellow metal retreated into negative territory in afternoon action and settled with a 0.3% loss at $1245.30 per ounce.
Dec silver pulled back towards the unchanged line after brushing a session high of $19.08 per ounce in morning action. It touched a session low of $18.90 per ounce and settled with a 0.1% gain at $18.93 per ounce.
Oct crude oil traded in negative territory on weaker-than-anticipated inventory data. The EIA reported that for the week ending Sep 5, crude oil inventories had a draw of 0.972 mln barrels when expectations called for a draw of 1.1-1.5 mln barrels.
The energy component pulled back from a session high of $92.53 per barrel and dipped as low as $91.22 per barrel. Unable to gain momentum, it settled at $91.71 per barrel, or 1.1% lower.
Oct natural gas also traded lower in a tight range between $3.94 and $3.97 per MMBtu. It eventually settled with a 0.5% loss at $3.96 per MMBtu.

4:12 pm JDS Uniphase reaffirms Q1 guidance in its release (JDSU) :

4:11 pm JDS Uniphase (Stock halted) to Separate into Two Industry-Leading Public Companies (JDSU) :

Two independent and publicly traded companies expected to enhance value by offering shareholders clear investment opportunities in distinct growth markets.An optical components and commercial lasers company.A network and service enablement company focused on the industry's transition to software-defined networks (SDN.V) and the need for increased network, service and application visibility. Expected combined expense reduction of approximately $50 million. Expected to be completed through a tax-free spinoff structure with separate corporate brand identities for each business to be announced at a later date. Expect to complete transaction by the third calendar quarter of 2015JDSU shareholders will receive a pro rata distribution of shares in the stand-alone CCOP company via a tax-free spinoff. During the periods preceding the separation, JDSU expects to incur significant one-time charges related to the separation and to achieving the expense savings referenced in the highlights. Cash expenditures to obtain the cost savings are expected to be between $75 and $100 million.Reaffirms Q1 Guidance
For the fiscal first quarter of 2015 ending September 27, 2014, the Company is reaffirming guidance of non-GAAP net revenue of $405 to $425 million and non-GAAP earnings per share of $0.08 to $0.12.

12:54 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

TWTR (52.44 +3.62%): Upgraded to Buy from Neutral at UBS, target raised to $65 from $50
AAPL (100.12 +2.17%): Bloomberg reporting that co will receive fees from banks for Apple Pay; target raised to $116 from $110 at Barclays
LUV (33.51 +1.82%): Target raised to $55 from $30 at Stifel, added to Stifel Select Buy list

Large Cap Losers

VLO (50.94 -3.32%): Weakness in large cap oil and gas stocks: PBR, PSX, ECA also lowerAVB (150.8 -3.23%): Announced offering of 4.5 mln shares of common stock
EBAY (51.08 -3.13%): Downgraded to Neutral from Overweight at Piper Jaffray, target lowered to $55 from $63

Mid Cap Gainers

NPSP (31.08 +20.61%): Briefing documents posted ahead of the FDA's Endocrinologic and Metabolic Drugs Advisory Committee review of Natpara for the treatment of Hypoparathyroidism seen as favorable with regards to the safety of the drug
PANW (97.85 +9.60%): Reported Q4 EPS of $0.11 (in-line), revs rose 58.5% yoy to $178.2 mln vs $161.26 mln estimate; billings +65% to $232.9 mln; sees Q1 EPS of $0.12 ex items vs $0.12 esitmate, revs of $178-182 mln vs $173.43 mln estimate; target raised at multiple research firms
SLCA (69.16 +7.21%): Increased FY14 adjusted EBITDA guidance range to $230-240 mln from $215-225 mln

Mid Cap Losers

AU (13.05 -15.75%): Co announced that, having evaluated several options to unlock further value in the business, the Board and management has decided to explore the possibility of restructuring the co into simpler and more focused entities
GTAT (12.91 -13.55%): Weakness following Apple presentation which revealed that sapphire screens will not be used in the new iPhone; downgraded to Neutral from Buy at Goldman, target lowered to $14 from $20; downgraded to Neutral from Overweight at Piper Jaffray, target $16; target lowered to $13 from $16 at Canaccord Genuity; downgraded to Sell at DoughertyJ
MEI (24.9 -6.21%): Weakness in Chinese internet related stocks: WUBA, ATHM also lower 12:39 pm

Riverbed Technology: Elliott responds to Riverbed announcement; 'Riverbed's Board has decided to ignore the wishes of shareholders on every count' (RVBD) : Elliott Management Corporation issued a public statement regarding Riverbed Technology (RVBD):

The larger message behind this vote was clear: It was a resounding rejection of Riverbed's refusal to engage with interested buyers and its decision to entrench by adopting a poison pill.Going against every modern principle of shareholder engagement and good corporate governance, Riverbed's Board has decided to ignore the wishes of shareholders on every count.Above all, the Board continues to ignore serious acquisition interest even after the company publicly admitted that it will miss its "10% growth plan" by a wide margin.As one of the company's largest shareholders, we intend to remain fully engaged, and we will continue to work toward a value-maximizing outcome.

11:59 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (100) outpacing new highs (48) (:SCANX) : Stocks that traded to 52 week highs: ADM, ARPI, ATVI, BLX, CARO, CMCSA, CMRX, CONE, CTLT, CVGW, CVTI, EARS, ENB, ENSV, EPD, EW, GMLP, INVE, IRF, IT, JACK, KINS, LE, LRCX, MARA, MATW, MDVN, MEP, MFRM, MO, NFBK, NTCT, OILT, OTIV, PANW, PIP, PRXL, QTS, RGS, SAIC, SXL, TCP, TEP, TFSL, TMH, TSQ, VC, XPO

Stocks that traded to 52 week lows: AGCO, ALXA, AMCC, AMPE, ANTH, AOI, ARCO, AREX, ARNA, ARTW, AVL, AWX, AXU, AXX, BAXS, BGC, BTU, CACQ, CIK, CLD, CRCM, CREE, CRS, CYTX, DLA, DRQ, DSCI, DWCH, DXLG, ECT, EDAP, EMXX, EPE, ERA, EXEL, EXXI, FI, FMC, FRM, FST, FVE, GES, GGB, GOMO, GTE, GTLS, HGG, HIBB, HLF, I, IMMR, IMRS, ISSC, IVC, KEG, KIPS, KOSS, KZ, LDR, LTRE, MAT, MCD, MDR, MDWD, MGCD, MILL, MM, MRC, NCMI, NUS, OMN, ONE, PERI, PGN, PHMD, PRGX, QRM, RCPI, RDC, REE, RIG, RIGL, RLOC, RNDY, RNF, SWHC, SZMK, TECU, THRX, TRGT, TWI, UAN, UBNK, VBIV, VCRA, VNET, VNOM, VVUS, WH, XUE

ETFs that traded to 52 week highs: none

ETFs that traded to 52 week lows: JJA, JJG, RJA, SGG

8:31 am S&P futures vs fair value: +0.50. Nasdaq futures vs fair value: +0.20. (:WRAPX) : U.S. equity futures remain near the middle of their overnight ranges, while markets in Europe are currently flirting with modest losses. Yesterday, shares of Apple (AAPL 97.55, -0.44) settled lower by 0.4% following an underwhelming product reveal. This morning, the stock is indicated to open lower by 0.5% with a Pacific Crest downgrade to 'Sector Perform' contributing to the weakness.

On a related note, GT Advanced Technologies (GTAT 13.87, -1.07) holds a pre-market loss of 7.3% following downgrades from Goldman Sachs and Piper Jaffray. Speculation prior to yesterday's event suggested GTAT sapphire screens would be used in the iPhone, but the Apple Watch was the only product announced to feature those screens.

7:04 am Microsemi to acquire Centellax -- terms not disclosed (MSCC) : Co announced it has signed an agreement to acquire Santa Rosa, Calif.-based Centellax, a supplier of high-speed analog and RF semiconductor products for the optical communications and Ethernet datacom markets. The terms of the transaction were not disclosed. The closing of the transaction is subject to customary closing conditions.

The transaction is not expected to have a material effect on Microsemi's revenues or expenses. Further, Microsemi reaffirms its revenue guidance for its fourth quarter of fiscal 2014.

The love for Apple (AAPL 101.00, +3.01) and the information technology sector that suddenly disappeared on Tuesday was found on Wednesday as there was a whole lot of rebound price action.

It was all pretty customary really. Apple and the broader market were broadsided on Tuesday, ostensibly on rate hike concerns and a prototypical sell-the-news response to Apple's new product announcements. True to form, the sell-off was quickly followed with a buy-the-dip inclination that pushed the S&P information technology sector to a higher closing level than was seen on Monday. In other words, the sector wasted little time making up Tuesday's losses.

The telltale sign on Wednesday that rate hike concerns were overplayed as a causal factor for Tuesday's selling was that the broader market traded higher despite long-term rates also pushing higher.

Apple, which gained 3.1%, and the information technology sector, which gained 0.8%, were the main engines behind the advance. There wasn't any shortage of opinion as to what Apple's new product announcements mean for the company. Pacific Crest Securities, for one, seemed disappointed as it downgraded Apple to Sector Perform from Outperform. Cowen, Oppenheimer, Barclays, and Deutsche Bank, on the other hand, said good things about the new product releases. Clearly, their views won out on Wednesday.

The spoils didn't belong just to Apple, though. 52 of the sector's 66 components ended Wednesday with a gain.

Alliance Data Systems (ADS 259.21, +13.57) led all comers with a 5.5% gain after falling 4.2% on Tuesday. The company announced the introduction of a GameStop branded private label credit card program.

Other notable movers included Akamai Technologies (AKAM 62.05, +0.88), which was mentioned in a Bloomberg article as a possible takeover target for Alibaba.com, Facebook (FB 77.43, +0.76), whose market cap eclipsed $200 billion, Microsoft (MSFT 46.84, +0.08), which logged its fifth consecutive gain following speculation it is interested in acquiring the maker of Minecraft for roughly $2.5 billion, Salesforce.com (CRM 60.70, +1.04), which signed an agreement to establish a new European data center in France, and Visa (V 216.88, +2.60) and Mastercard (MA 76.65, +0.58), which continued to feed off the introduction of the Apple Pay service.

Stocks like IBM (IBM 191.54, +1.99), Juniper Networks (JNPR 23.74, +0.39), and F5 Networks (FFIV 125.19, +2.16) also went along for the sector's rebound ride. Volume in each of those stocks, though, was comfortably below their respective three-month daily averages.

Google (GOOG 583.10, +2.09) was another heavyweight lending support. The company confirmed that it has acquired Lift Labs, which provides tremor-canceling devices for Parkinson's sufferers, and made a $145 million investment in SunEdison's (SUNE 21.00, +0.16) and TerraForm Power's (TERP 31.72, -0.11) largest solar plant in North America.

One stock in the sector that needs some sunshine is eBay (EBAY 51.10, -1.63). After dropping 2.8% on Tuesday, eBay declined another 3.1% on Wednesday as investors continued to worry about the competitive threat to PayPal presented by the Apple Pay service. Piper Jaffray downgraded eBay to Neutral from Overweight.

Outside of the S&P information technology sector, network security company Palo Alto Networks (PANW 98.75, +9.47) garnered a lot of acclaim from the analyst community after reporting its fourth quarter earnings results and issuing reassuring first quarter guidance. Industry peer FireEye (FEYE 34.85, +1.34) drafted off the report and on some active buying of September 35.50 calls.

Entertainment software maker Activision (ATVI 23.81, +0.08) ticked higher on its announcement that it sold more than $500 million of Destiny on day one, making it the biggest new video game franchise launch in history. Take-Two (TTWO 23.54, +0.32) and Electronic Arts (EA 37.81, +0.36) benefited from the news.

Separately, Twitter (TWTR 52.91, +2.30) continued to run, bolstered by a UBS upgrade to Buy from Neutral. The stock is up 73% from the low it reached on May 23.

Only need four characters to sum up that move: Wow!

[ReturntoSender]

From Briefing.com: Weekly Recap - Week ending 19-Sep-14Dow +13.75 at 17279.74, Nasdaq -13.64 at 4579.79, S&P -0.96 at 2010.4

The stock market finished an upbeat week on a mixed note. The S&P 500 shed less than a point, ending the week higher by 1.3%, while the Dow Jones Industrial Average (+0.1%) cemented a 1.7% advance for the week. High-beta names underperformed, which weighed on the Nasdaq Composite (-0.3%) and the Russell 2000 (-1.3%).

Equity indices displayed strength in the early going with the S&P 500 tagging the 2,019 level during the opening 30 minutes of the action. However, that represented the high watermark for the benchmark index, which returned to its flat line by the close.

The early advance followed the failed independence referendum in Scotland, which averted a potential storm in the financial markets. Once the uncertainty was cast aside, participants directed their focus to the Alibaba Group (BABA 93.89, +25.89) IPO, which represented the largest public debut to date. Shares of Alibaba opened at $92.70 after pricing at $68/share, but could not settle above the opening print.

Alibaba followed a similar pattern as the broader market with the latter being weighed down by influential sectors like financials (-0.3%), technology (-0.4%), and industrials (-0.1%).

Despite today's underperformance, the financial sector finished the week among the leaders with a solid gain of 1.5% since last Friday. Meanwhile, technology lagged since the open following disappointing quarterly results from Oracle (ORCL 39.80, -1.75). The stock tumbled 4.2% in reaction to below-consensus earnings/revenue and news that CEO Larry Ellison will step down from his post.

Also of note, Oracle's peer, SAP (SAP 74.00, -3.35), lost 4.3% after announcing the acquisition of Concur Technologies (CNQR 126.82, +19.02) for $129 per share. High-beta chipmakers were unable to fill the void left by the two software giants as evidenced by a 1.2% decline in the PHLX Semiconductor Index. Despite today's slide, the index still finished the week with a strong gain of 1.5%.

For its part, the industrial sector lagged amid weakness in machinery stocks after Caterpillar (CAT 102.47, -1.87) provided a disappointing update regarding its sales over the past three months. The Dow component lost 1.8%, while peer Joy Global (JOY 58.02, -1.20) fell 2.0%.

Caterpillar was the weakest performer in the Dow and the only stock that fell more than 1.0%. On the upside, 22 index components posted gains with Coca-Cola (KO 42.05, +0.26) leading the pack. The stock climbed 0.6%, contributing to the relative strength of the consumer staples sector (+0.2%).

Similar to consumer staples, the remaining three countercyclical groups settled ahead of the broader market. Telecom services and utilities both jumped near 1.0%, while health care (+0.1%) ended among the leaders despite volatile action in the biotech space. The iShares Nasdaq Biotechnology ETF (IBB 275.23, +0.16) tacked on 0.1%.

Treasuries spent the session in a steady climb, pressuring the 10-yr yield to 2.58%. Participation was well ahead of average thanks to the Alibaba IPO and quadruple witching. More than 1.8 billion shares changed hands at the NYSE floor.

Economic data was limited to the Leading Indicators report for August, which showed an increase of 0.2% on top of an upwardly revised 1.1% (from 0.9%) reading for July. The Briefing.com consensus estimate called for an increase of 0.4%. The difference between what was expected and what was reported can be traced directly to the building permits contribution, which subtracted 0.18 percentage points in August. Consensus estimates could not be updated in a timely manner to reflect the impact of the weaker than expected building permits report, which was released yesterday.

On Monday, the Existing Home Sales report for August will be released at 10:00 ET.

Week in Review: Stocks Rally While FOMC Stays the Course

The stock market welcomed the new trading week with a mixed session that saw relative strength among large-cap stocks, while high-beta names underperformed. The Dow Jones Industrial Average (+0.3%) and S&P 500 (-0.1%) finished near their flat lines, while the Nasdaq Composite and Russell 2000 both lost 1.1%. Equities began the day on a cautious note amid continued concerns regarding the strength of the global economy. Over the weekend, China reported its first decline in electricity production since 2009, while Industrial Production (6.9%; expected 8.8%) grew at its slowest pace since December 2008. Likewise, the Industrial Production report from the U.S. (-0.1%; Briefing.com consensus 0.3%) also left a bit to be desired.

The major averages posted solid gains on Tuesday ahead of Wednesday's policy directive from the Federal Open Market Committee. The S&P 500 rallied 0.8%, while the Russell 2000 (+0.3%) could not keep pace with the benchmark index. Equity indices hovered near their flat lines during the first two hours of action, but surged in reaction to reports from the Wall Street Journal concerning next day's FOMC statement. Specifically, Fed watcher Jon Hilsenrath indicated that the statement would once again reflect the Fed's intentions to keep the fed funds rate at the zero bound for a considerable time after quantitative easing is wound down. The report sent the market higher since it contrasted with recent speculation that the Fed would drop the 'considerable time' language from its guidance, thus implying a swifter rate hike.

Stocks ended the midweek session with slim gains after showing some intraday volatility in reaction to the release of the latest policy directive from the Federal Open Market Committee. The S&P 500 added 0.1%, while the relative strength among small caps sent the Russell 2000 higher by 0.3%. The key indices spent the first half of the session near their flat lines as participants stuck to the sidelines ahead of the FOMC statement, which conveyed no changes to the Fed's current policy course. As expected, the Fed reduced the monthly pace of its asset purchases by $10 billion to $15 billion, setting expectations for the program to be wound down at the next meeting. Furthermore, the Fed maintained the "considerable time" language in its forward guidance, suggesting the first rate hike remains somewhat distant.

The market finished the Thursday session on a higher note with the S&P 500 climbing 0.5%. The benchmark index registered an early high within the first 90 minutes and inched to a new session best during the final hour of the action. Equities rallied out of the gate with the financial sector (+1.1%) providing noteworthy support for the second day in a row. The growth-oriented sector extended its September gain to 1.9% versus a more modest uptick of 0.4% for the S&P 500. Although financials did some heavy lifting, other influential sectors like health care (+0.8%) and technology (+0.7%) also served up a measure of support.

 
 Index	   Started Week	  Ended Week    Change	% Change   YTD % 
 DJIA	     16987.51	  17279.74	292.23	   1.7	   4.2 
 Nasdaq	      4567.60	   4579.79	12.19	   0.3	   9.7 
 S&P 500	1985.54	   2010.40	24.86	   1.3	   8.8 
 Russell 2000  1160.61	   1146.92	-13.69	  -1.2	  -1.4

4:41 pm This week's biggest % gainers/losers (:SCANX) : The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

Technology:VNET (20 +29.12%),CNVR (34.27 +28.79%),EPIQ (17.29 +16.91%),SMCI (28.42 +11.53%)
Services:ULTA (120.38 +21.46%),XPO (38.62 +15.98%),RJET (11.94 +14.79%),FLWS (7.34 +11.03%)
Industrial Goods:APOG (40.65 +16.01%)
Healthcare:AVNR (11.04 +73.81%),AUXL (31.14 +35.78%),PTCT (40.93 +18.43%),TGTX (11.21 +16.3%),PAHC (22.71 +12.05%),ALNY (77.77 +11.1%)
Financial:GRT (13.68 +23.57%)Consumer Goods:CALM (91.08 +12.13%)
Basic Materials:NOR (5.12 +24.76%),X (45.19 +14.43%),AKG (2.46 +12.11%)

This week's top 20 % losers
Technology:SSNI (9.4 -20.69%),RAX (32.1 -16.93%),PLUG (4.43 -16.15%),GTAT (11.16 -14.7%),MBLY (47.85 -13.67%),YY (77.89 -12.73%)
Services:SHLD (27.68 -19.22%),RAD (5.35 -17.4%),PIR (12.74 -16.93%),VLCCF (9.99 -16.61%),NM (7.43 -13.1%)
Healthcare:PDLI (8.03 -19.41%),NPSP (27.13 -18.04%)
Financial:LEJU (13.28 -13.36%)
Consumer Goods:UVV (46 -12.78%)
Basic Materials:PEIX (15.97 -22.06%),HERO (2.39 -21.6%),CAK (0.53 -18.64%),GST (6.25 -16.84%),MCP (1.47 -15.48%)

4:10 pm Closing Market Summary: Upbeat Week Ends on Cautious Note (:WRAPX) : The stock market finished an upbeat week on a mixed note. The S&P 500 shed less than a point, ending the week higher by 1.3%, while the Dow Jones Industrial Average (+0.1%) cemented a 1.7% advance for the week. High-beta names underperformed, which weighed on the Nasdaq Composite (-0.3%) and the Russell 2000 (-1.3%).

Equity indices displayed strength in the early going with the S&P 500 tagging the 2,019 level during the opening 30 minutes of the action. However, that represented the high watermark for the benchmark index, which returned to its flat line by the close.

The early advance followed the failed independence referendum in Scotland, which averted a potential storm in the financial markets. Once the uncertainty was cast aside, participants directed their focus to the Alibaba Group (BABA 93.89, +25.89) IPO, which represented the largest public debut to date. Shares of Alibaba opened at $92.70 after pricing at $68/share, but could not settle above the opening print.

Alibaba followed a similar pattern as the broader market with the latter being weighed down by influential sectors like financials (-0.3%), technology (-0.4%), and industrials (-0.1%).

Despite today's underperformance, the financial sector finished the week among the leaders with a solid gain of 1.5% since last Friday. Meanwhile, technology lagged since the open following disappointing quarterly results from Oracle (ORCL 39.80, -1.75). The stock tumbled 4.2% in reaction to below-consensus earnings/revenue and news that CEO Larry Ellison will step down from his post.

Also of note, Oracle's peer, SAP (SAP 74.00, -3.35), lost 4.3% after announcing the acquisition of Concur Technologies (CNQR 126.82, +19.02) for $129 per share. High-beta chipmakers were unable to fill the void left by the two software giants as evidenced by a 1.2% decline in the PHLX Semiconductor Index. Despite today's slide, the index still finished the week with a strong gain of 1.5%.

For its part, the industrial sector lagged amid weakness in machinery stocks after Caterpillar (CAT 102.47, -1.87) provided a disappointing update regarding its sales over the past three months. The Dow component lost 1.8%, while peer Joy Global (JOY 58.02, -1.20) fell 2.0%.

Caterpillar was the weakest performer in the Dow and the only stock that fell more than 1.0%. On the upside, 22 index components posted gains with Coca-Cola (KO 42.05, +0.26) leading the pack. The stock climbed 0.6%, contributing to the relative strength of the consumer staples sector (+0.2%).

Similar to consumer staples, the remaining three countercyclical groups settled ahead of the broader market. Telecom services and utilities both jumped near 1.0%, while health care (+0.1%) ended among the leaders despite volatile action in the biotech space. The iShares Nasdaq Biotechnology ETF (IBB 275.23, +0.16) tacked on 0.1%.

Treasuries spent the session in a steady climb, pressuring the 10-yr yield to 2.58%. Participation was well ahead of average thanks to the Alibaba IPO and quadruple witching. More than 1.8 billion shares changed hands at the NYSE floor.

Economic data was limited to the Leading Indicators report for August, which showed an increase of 0.2% on top of an upwardly revised 1.1% (from 0.9%) reading for July. The Briefing.com consensus estimate called for an increase of 0.4%. The difference between what was expected and what was reported can be traced directly to the building permits contribution, which subtracted 0.18 percentage points in August. Consensus estimates could not be updated in a timely manner to reflect the impact of the weaker than expected building permits report, which was released yesterday.

On Monday, the Existing Home Sales report for August will be released at 10:00 ET.


Nasdaq Composite +9.7% YTD
S&P 500 +8.8% YTD
Dow Jones Industrial Average +4.2% YTD
Russell 2000 -1.6% YTD
Week in Review: Stocks Rally While FOMC Stays the Course

The stock market welcomed the new trading week with a mixed session that saw relative strength among large-cap stocks, while high-beta names underperformed. The Dow Jones Industrial Average (+0.3%) and S&P 500 (-0.1%) finished near their flat lines, while the Nasdaq Composite and Russell 2000 both lost 1.1%. Equities began the day on a cautious note amid continued concerns regarding the strength of the global economy. Over the weekend, China reported its first decline in electricity production since 2009, while Industrial Production (6.9%; expected 8.8%) grew at its slowest pace since December 2008. Likewise, the Industrial Production report from the U.S. (-0.1%; Briefing.com consensus 0.3%) also left a bit to be desired.

The major averages posted solid gains on Tuesday ahead of Wednesday's policy directive from the Federal Open Market Committee. The S&P 500 rallied 0.8%, while the Russell 2000 (+0.3%) could not keep pace with the benchmark index. Equity indices hovered near their flat lines during the first two hours of action, but surged in reaction to reports from the Wall Street Journal concerning next day's FOMC statement. Specifically, Fed watcher Jon Hilsenrath indicated that the statement would once again reflect the Fed's intentions to keep the fed funds rate at the zero bound for a considerable time after quantitative easing is wound down. The report sent the market higher since it contrasted with recent speculation that the Fed would drop the 'considerable time' language from its guidance, thus implying a swifter rate hike.

Stocks ended the midweek session with slim gains after showing some intraday volatility in reaction to the release of the latest policy directive from the Federal Open Market Committee. The S&P 500 added 0.1%, while the relative strength among small caps sent the Russell 2000 higher by 0.3%. The key indices spent the first half of the session near their flat lines as participants stuck to the sidelines ahead of the FOMC statement, which conveyed no changes to the Fed's current policy course. As expected, the Fed reduced the monthly pace of its asset purchases by $10 billion to $15 billion, setting expectations for the program to be wound down at the next meeting. Furthermore, the Fed maintained the "considerable time" language in its forward guidance, suggesting the first rate hike remains somewhat distant.

The market finished the Thursday session on a higher note with the S&P 500 climbing 0.5%. The benchmark index registered an early high within the first 90 minutes and inched to a new session best during the final hour of the action. Equities rallied out of the gate with the financial sector (+1.1%) providing noteworthy support for the second day in a row. The growth-oriented sector extended its September gain to 1.9% versus a more modest uptick of 0.4% for the S&P 500. Although financials did some heavy lifting, other influential sectors like health care (+0.8%) and technology (+0.7%) also served up a measure of support.

3:41 pm Earnings Preview for the week of September 22 - 26 (:SUMRX) : Of the companies reporting earnings for the week of September 22 - 26 some of the bigger names include:

Monday: Pre Market - AZO, NEOGAfter Hours - ASNATuesday: Pre Market - CCL, KMXAfter Hours - BBBY, SCS, AIR, CPRTWednesday:

Pre Market - ACN, PAYX, KBH, MTN
After Hours - WOR, JBL

Thursday: Pre Market - SCHL, OMNAfter Hours - NKE, MU, THO, DMND, ARCWFriday: Pre Market - BBRY, FINL

11:36 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (170) outpacing new lows (111) (:SCANX) : Stocks that traded to 52 week highs: ABAX, ABT, ADP, AGIO, AIG, AKAM, ALL, AMGN, APH, APOG, ARG, AVGO, BDL, BEP, BIDU, BJRI, BKYF, BLT, BRCM, BRK.A, BRK.B, BSTC, BURL, CAH, CALM, CATO, CFN, CFR, CHDX, CLC, CNI, CNSL, CODE, CORE, CSX, CTAS, CVGW, CW, DD, DECK, DFS, DRC, DTSI, ECL, EEP, EEQ, ENB, ENL, ENR, ENVE, EPIQ, ERIE, ETP, EW, EXP, FFIV, FHN, FISV, FTNT, FUBC, GBX, GD, GLNG, GMCR, GPC, GS, H, HAIN, HBAN, HCBK, HD, HDS, HIG, HII, HNT, HRG, HTLD, HUB.B, HURC, ICCC, IDSY, INFU, INGR, INN, ITW, JACK, JNJ, JPM, KLAC, KNX, KR, LAWS, LB, LLY, LMT, LNC, LOGM, LOW, LRCX, LUV, LYB, MAG, MAR, MDT, MDVN, MFC, MHFI, MKSI, MMC, MMM, MNK, MO, MS, MSFT, MSON, MTB, MTN, NFBK, NOC, NOK, NP, NSC, NWL, NXPI, ODFL, OTIC, PAYC, PBIP, PDEX, PEP, PMCS, PPC, PRU, PRXL, R, RAIL, RCL, RDY, RPM, RTN, RY, SAIA, SGNT, SHW, STT, SWIR, SWK, SWKS, TAYD, TCP, TFSL, THC, TLK, TMH, TRN, TRP, UBSI, UTHR, VAC, VDSI, VFC, VOYA, VRNT, VRTX, WFC, WLP, WM, WMS, WYN, ZTS

Stocks that traded to 52 week lows: ACPW, ACUR, AGCO, ALSK, ANR, ANTH, ARCO, AREX, AUY, BBGI, BGI, CACH, CCG, CDE, CEF, CERE, CLRB, COOL, CRIS, CRR, DDE, DO, DSKX, EBF, ECR, EDMC, EGLE, ELSE, END, ENZY, ESI, ESV, EXXI, FF, FI, FMC, FMD, FREE, FRO, FULL, FVE, GLOW, GTE, GUID, HCAP, HERO, HMNY, IMMR, IMRS, IRET, ISH, KBR, KEG, KGC, KIPS, KRA, KZ, LRN, LTRE, LYTS, LZB, MAT, MCF, MCHX, MEIL, MELA, MLAB, MTL, MVC, MXT, NCT, NE, NEON, NXTD, OGXI, PACD, PAL, PARN, PGH, PGN, PKD, PRSS, RDC, RGDO, RRC, SD, SDRL, SDT, SGYP, SNTA, SPEX, STXS, SUTR, SWHC, TAS, TDW, TLM, TRMR, TRS, TRUP, UAN, ULBI, USU, VALE, VPCO, VTG, WGA, WPRT, WSO, WTSL, ZEP

ETFs that traded to 52 week highs: DIA, GULF, IAI, IHF, IHI, IWF, IYF, IYG, IYH, IYM, IYT, OEF, PPH, QQQ, SMH, SOXX, SPY, UUP, UYG, UYM, VTI, XLB, XLF, XLV

ETFs that traded to 52 week lows: DBC, DJP, FXE, FXY, GSG, JJA, JJG, REMX, RJA, SGG, SIVR, SLV, SMN, VXX

SunEdison (SUNE) in partnership with BlueWave Capital of Boston, announced the completion of a 1.8 megawatt DC solar power plant constructed on a remediated EPA Superfund site in New Bedford, Massachusetts. Co also announced the donation of solar photovoltaic panels to power 10 Habitat for Humanity of Washington, D.C. homes in D.C.'s Ivy City neighborhood during GRID Alternatives' mid-Atlantic launch event.

7:02 am Violin Memory prices offering of $105.0 mln aggregate principal amount of convertible senior notes due 2019 in a private placement to qualified institutional buyers; co estimates that the net proceeds from this offering will be ~ $100.8 mln (VMEM) : The notes will be unsecured, senior obligations of Violin, and will pay interest semi-annually at a rate of 4.25% per year. The notes will be convertible, upon satisfaction of certain conditions, at an initial conversion rate of 177.8489 shares per $1,000 principal amount of notes, which is equivalent to an initial conversion price of ~ $5.62 per share, and will be subject to adjustment upon the occurrence of certain events.

NVIDIA (NVDA) introduced the first high-end products based on its Maxwell chip architecture -- the new GeForce GTX 980 and 970 GPUs

Scotland said "no" to independence, but the stock market said "yes" to Alibaba Group (BABA 93.89, +25.89) in its first day of trading as a publicly-traded company.

The world's largest e-commerce site priced its IPO at $68 on Thursday night and it closed Friday just shy of $94 per share.

Yahoo (YHOO 40.93, -1.15) probably won't admit to being a little peeved by that considering it sold just shy of 122 million shares at the IPO price, but a 38% move up from the IPO price makes it very clear that Yahoo shareholders were short-changed in a manner of speaking.

The silver lining is that Yahoo still owns a significant chunk of Alibaba stock. In any event, Yahoo was one of many tech sector components that traded down while Alibaba enjoyed most of Friday's trading spoils.

There was a huge rush of trading activity in BABA and YHOO. The former saw 271 million shares change hands while the latter traded 233 million shares or more than nine times its three-month average daily volume.

Trading activity in general was extremely heavy on Friday, which also marked the quarterly expiration of index options, stock options, index futures, and single-stock futures. Volume at the NYSE topped 1.8 billion shares versus a daily average of 632 million while Nasdaq volume topped 2.6 billion shares versus a daily average of 1.7 billion shares.

Oracle (ORCL 39.80, -1.75) had big volume and big losses to go along with it. The software company declined 4.2% after reporting some relatively disappointing first quarter results and announcing that Larry Ellison was stepping aside as CEO. Safra Catz and Mark Hurd are going to assume respective CEO positions while Mr. Ellison is going to assume the role of Executive Chairman and CTO.

Industry rival SAP (SAP 73.97, -3.38) also traded off sharply in the wake of its news that its subsidiary, SAP America, signed a definite merger agreement with Concur Technologies (CNQR 126.82, +19.02). The transaction has an enterprise value of $8.3 billion and translates to a $129 per share offer price for CNQR shareholders, which is a 28% premium to where the stock was trading on September 2 when Bloomberg reported it was exploring a sale.

By and large, it was a rough day for several software stocks. Red Hat (RHT 57.93, -2.73) and Tibco Software (TIBX 19.36, -1.43) both sold off after reporting their latest quarterly results and issuing some tepid guidance for the next quarter.

Microsoft (MSFT 47.52, +0.84), though, was a winning standout, not just within the industry group but within the broader market. Its stock hit a 52-week high on Friday on very heavy volume and no news of note. We suspect it held some low-beta appeal in a market some think has gotten overheated.

Google (GOOG 596.08, +6.81) and Facebook (FB 77.91, +0.91) also exhibited some relative strength within the information technology sector (-0.4%), which underperformed the broader market on Friday.

Apple (AAPL 100.96, -0.83) acted as a heavy weight on things. It had a good PR buzz going Friday with the launch of iPhone 6 in its stores, yet its stock got a buzz cut on profit-taking activity that hit much of the sector.

[ReturntoSender]

From Briefing.com: 4:10 pm : The stock market began the new trading week on the defensive note with small-cap stocks pacing the retreat. The Russell 2000 (-1.4%) and Nasdaq Composite (-1.1%) displayed relative weakness, while the S&P 500 lost 0.8% with all ten sectors ending in the red.

Global equities began showing some cracks overnight after China's Finance Minister Lou Jiwei poured cold water on hopes for new stimulus measures. Specifically, Mr. Lou said the government has no plans to change policies despite the recent string of disappointing data. A somewhat similar hawkish tone was conveyed by comments from Japan's Economy Minister Akira Amari, who said his country's government remains on track to implement another consumption tax hike.

The macroeconomic concerns have led to weakness in equities, while also weighing on growth-sensitive commodities like copper (-1.6% to $3.04/lb) and crude oil (-0.9% to $90.80/bbl). Unlike last week, the losses were not driven by a stronger dollar as the Dollar Index ended flat after wiping out its overnight decline.

Meanwhile, the weakness in crude prices spilled over to the energy sector (-1.4%), which slumped out of the gate and spent the entire day among the laggards. The sector widened its September loss to 5.6% and is now down 7.2% during the third quarter.

Similar to energy, the consumer discretionary sector (-1.5%) lagged from the start with high-beta names like Amazon.com (AMZN 324.50, -6.82), Netflix (NFLX 442.78, -14.74), Priceline.com (PCLN 1165.79, -20.33) exerting notable pressure. The three lost between 1.7% and 3.2%. Homebuilders also weighed on the sector following today's disappointing Existing Home Sales report. The iShares Dow Jones US Home Construction ETF (ITB 23.24, -0.50) lost 2.1%.

Elsewhere among cyclical groups, the financial sector (-0.7%) displayed relative strength in the morning, but settled just ahead of the broader market. The technology sector (-0.8%) also finished near the broader market, while industrials (-1.1%) were pressured by transports. The Dow Jones Transportation Average fell 1.4%.

Also of note, the materials sector (-0.1%) spent the bulk of the session in the green, but was pressured into negative territory by the close. The relative strength stemmed from a 33.2% surge in Sigma-Aldrich (SIAL 136.40, +34.03) after the company agreed to be acquired by Merck KGaA (MKGAF 93.70, +4.20) for $140.00/share, which represents a 37.0% premium to Friday's closing price.

On the countercyclical side, consumer staples (-0.2%) and telecom services (-0.1%) displayed relative strength, while utilities (-0.7%) ended near the S&P 500. For its part, the health care sector (-0.6%) outperformed even as biotechnology struggled. The iShares Nasdaq Biotechnology ETF (IBB 272.55, -2.68) lost 1.0%.

Treasuries ended near their highs after spending the day in the green. The 10-yr yield slipped one basis point to 2.56%.

Participation was in line with recent averages as more than 680 million shares changed hands at the NYSE.

Economic data was limited to the Existing Home Sales for August, which fell 1.8% to 5.05 million SAAR from a slightly downwardly revised 5.14 million SAAR (from 5.15 million SAAR) in July, while the Briefing.com consensus expected an increase to 5.20 million. The report revealed the first monthly drop in sales since March and overall sales are still down 5.3% year-over-year.

Tomorrow, the July FHFA Housing Price Index will be released at 9:00 ET.


Nasdaq Composite +8.4% YTD
S&P 500 +7.9% YTD
Dow Jones Industrial Average +3.6% YTD
Russell 2000 -2.8% YTD

DJ30 -107.06 NASDAQ -52.10 SP500 -16.11 NASDAQ Adv/Vol/Dec 555/1.74 bln/2211 NYSE Adv/Vol/Dec 510/681.4 mln/2565

4:01 pm TriQuint Semi announced that Ruckus Wireless (RKUS) selected TriQuint's two new high-performance 5GHz WLAN power amplifiers (TQNT) :

4:01 pm Adobe Systems acquires privately held Aviary, a developer of mobile software development kits; terms not disclosed (ADBE) : Co announced that it has acquired privately held Aviary, a developer of mobile SDKs (Software Development Kits) for the delivery of creative apps.


With millions of people already using Aviary-powered photo-editing apps and thousands of developers using Aviary's SDKs, across mobile platforms, the acquisition accelerates Adobe's strategy to make Creative Cloud a vibrant platform for third-party apps, through a new Creative SDK. Currently under development, Adobe Creative SDK is a software library that enables developers to tap into Adobe's creative technologies to build mobile apps and drive new connections between mobile devices and Adobe Creative Cloud desktop applications and services.2:16 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

SIAL (136.52 +33.36%): To be acquired by Merck KGaA (MKGAY) for $140 per share in cash
CLX (96.65 +6.71%): NYPost reporting that co rejected a takeover offer at a 20% premium; co announced it will sell its assets in Venezuela; reaffirmed guidance for FY14 EPS from continuing operations of $4.35-4.50 vs $4.41 estimate
MNST (91.04 +1.40%): Initiated with a Buy at ISI Group, target $110; target raised to $110 from $94 at Stifel

Large Cap Losers

YHOO (38.4 -6.18%): Downgraded to Neutral from Buy at BofA/Merrill; downgraded to Market Perform from Outperform at Bernstein; target raised at Oppenheimer and FBR Capital
TRIP (93.42 -5.04%): Weakness attributed to concerns that co may have experienced a data breach
AZO (502.44 -4.56%): Beat quarterly EPS by $0.03 ($11.28 vs $11.25 estimate), revs fell 1.5% yoy to $3.05 bln vs $3.08 bln estimate

Mid Cap Gainers

TTC (60.02 +4.09%): Upgraded to Outperform from Market Perform at Raymond James
DRC (81.96 +2.57%): To be acquired by Siemens (SIEGY) for $83 per share in cash
HOLX (24.66 +2.15%): Upgraded to Overweight from Neutral at Piper Jaffray

Mid Cap Losers

INVN (20.74 -11.22%): Downgraded to Neutral from Outperform at Robert W. Baird, target lowered to $23 from $30; defended at Rosenblatt
ATHM (40.79 -9.93%): Weakness in Chinese internet information provider stocks: BITA, WB also lower
UBNT (38.65 -8.00%): Mentioned cautiously at Wunderlich due to expectation of incremental weakness in Russia and Ukraine

11:38 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (239) outpacing new highs (47) (:SCANX) : Stocks that traded to 52 week highs: ARG, BDL, CHD, CIO, CLX, CNC, CNET, CNI, CNSL, CORE, CVTI, DECK, DPS, DTSI, EEQ, EMC, EPIQ, EW, FRS, GAI, HCA, HEP, HUM, ICCC, IDSY, LEG, MAG, MDVN, MO, MSON, NLS, NRIM, NVTL, NWL, PFSW, PTCT, PTEK, RCMT, SIAL, SNY, TATT, TAYD, THC, VAC, VDSI, VIAS, WLP

Stocks that traded to 52 week lows: ABCO, ACI, ADGE, AG, AGCO, AGI, AHPI, AKAO, AKO.A, ALCS, ALE, ALG, AMDA, AMRN, AMZG, ANGI, ANR, APEI, APO, APRI, ARCO, AREX, ARQL, ARTNA, ATW, AUY, AWRE, AXN, AXU, AXX, B, BAA, BABA, BAGL, BAXS, BCOV, BECN, BGC, BH, BHP, BIOC, BIOD, BPI, BRN, BTU, CACH, CALL, CARA, CASS, CBMX, CCG, CCS, CCSC, CDE, CEF, CHOP, CIK, CLD, CLF, CLFD, CLM, CLNT, CLRX, CNHI, CONN, COOL, CPST, CRIS, CRR, CRS, CSG, CTRL, CTT, CVGI, CYD, CYTX, DDE, DGII, DNR, DO, DRNA, DRQ, EBF, ECR, EGI, EGLE, ELRC, ELSE, ENZY, EOPN, EPRS, ERA, EROC, ESV, ETN, EXXI, FELE, FI, FLO, FLR, FMC, FRO, FULL, GBIM, GES, GGB, GLDD, GLF, GNCA, GOV, GRAM, GTE, GTI, GTLS, GTXI, GUID, HERO, HL, HLF, IAG, ICEL, IIVI, IMMR, IMPR, IMRS, IOSP, IRG, ISH, JE, JIVE, KBR, KEG, KGC, KRA, LOXO, LPI, MAT, MCF, MCP, MDR, MEIL, MELA, MLAB, MM, MOSY, MOV, MRKT, MTL, MVC, MZOR, NCI, NE, NGS, NKSH, NL, NMIH, OC, OI, OII, OMN, OREX, PACD, PBY, PDII, PERI, PGH, PIR, PKD, PLG, QNST, RBC, RBCN, RDC, RGDO, RGR, RIG, RLOC, RNDY, RNF, ROKA, RPRX, RPXC, RRC, RRST, RVLT, RVNC, SALT, SANW, SCL, SD, SDRL, SDT, SHOS, SIR, SNTA, SPKE, SRDX, SSD, SSNI, STRM, SUTR, SVBL, SVM, SWSH, SZYM, TACT, TCK, TDW, TEX, TGH, THRX, TLM, TLOG, TRMR, TRS, TTMI, TUP, TZOO, UAN, UFPT, USU, UTI, VALE, VCYT, VIVO, VNOM, VOLC, VPCO, VTG, WAC, WLT, WMK, WPRT, WSO, WTI, XCO, XIN, ZIOP, ZX

ETFs that traded to 52 week highs: HYD, NIB, UUP, XLB

ETFs that traded to 52 week lows: BAL, BNO, DBC, DJP, FXE, FXF, FXY, GSG, JJA, JJG, REMX, RJA, SGG, SIVR, SLV, UHN

ANADIGICS (ANAD) is shipping production volumes of its AWB7122 and AWB7222 small-cell power amplifiers to Nextivity.

9:05 am KEMET reaffirms Q2 guidance (KEM) : KEMET confirmed today that for the upcoming quarter ending September 30, 2014, it currently expects revenues to be in the range of $206 to $212 mln vs. $208.7 mln consensus, and that adjusted operating gross margins are currently expected to improve over the June 30, 2014 quarter by 100 to 200 basis points.

"The quarter appears to be developing as we expected and we believe that the final results will be consistent with our prior expectations. Margins continue to remain a primary focus and at this point the cost improvement actions are taking hold," stated Per Loof, KEMET's Chief Executive Officer. "We are also pleased to be recognized in an article by the Wall Street Journal recently as one of only four companies out of 1,300 filing with the SEC that had an audit conducted on our conflict minerals report."

8:03 am Altera and Baidu (BIDU) are collaborating on using FPGAs and convolutional neural network (:CNN) algorithms for deep learning applications set to play a critical role in the development of more accurate and faster online search (ALTR) : Altera (ALTR) and Baidu (BIDU), China's largest online search engine, are collaborating on using FPGAs and convolutional neural network (:CNN) algorithms for deep learning applications set to play a critical role in the development of more accurate and faster online search. Altera is demonstrating its work with Baidu at the High Performance Computing (:HPC) for Wall Street conference in NYC, taking place on Sept 22, 2014.

SunEdison (SUNE) announced a new project that will install 241 kW of solar PV micro-grids with battery storage in 54 remote Indian villages.

7:31 am Viasystems: TTM (TTMI) will acquire Viasystems for a combined consideration of $11.33 in cash and 0.706 shares of TTM common stock, or $16.46/share (40.7% premium); TTMI sees deal materially accretive to non-GAAP EPS in first year (VIAS) : TTM will acquire all outstanding shares of Viasystems for a combined consideration of $11.33 in cash and 0.706 shares of TTM common stock, which based on the closing market price on September 19, 2014 was valued at $16.46 per Viasystems share, or ~$368 million. The total enterprise value of the transaction, including the assumption of debt, is ~$927 million.

The combined company will be one of the world's leading printed circuit board manufacturers with a strong position in the automotive, aerospace and defense, medical, industrial and instrumentation, cellular phone and networking/telecom end markets. The combined company will have ~ 30,000 employees and 28 manufacturing facilities worldwide.

TTM has identified at least $25 million in pre-tax cost synergies which are expected to be realized within the first year. TTM believes that significant additional synergies will result from other integration efforts over a longer period of time.

This transaction is expected to be materially accretive to non-GAAP earnings per share in the first year.

TTM expects to utilize a new $1.3 billion senior secured credit facility to finance the cash portion of the purchase price, refinance certain debt at each company, and provide liquidity for working capital and general corporate purposes.Finisar (FNSR) demonstrated several new products for high-speed optical networking applications, including a low profile dual Wavelength Selective Switch and high-resolution Optical Channel Monitor that enable the design of next-generation ROADM linecards.

EMCORE (EMKR) announced the introduction of the Dual micro-Integrable Tunable Laser Assembly for the coherent market, which has begun customer sampling for qualification. EMCORE expects the Dual micro-ITLA to be commercially available in the first calendar quarter of 2015.

[ReturntoSender]

From Briefing.com: 4:15 pm : The stock market ended the Thursday session with solid gains. The Russell 2000 (+1.8%) led the way while the S&P 500 settled higher by 1.2% with eight sectors in the green.

The key indices surged at the start of the trading day after the overnight session featured upbeat economic data from overseas. On that note, Manufacturing PMI readings from China, Japan, and the Eurozone surpassed estimates, but the headline figures masked some weakness below the surface. For instance, China's HSBC Manufacturing PMI (50.4; expected 50.3) came in ahead of estimates, but the output and employment indices contracted.

Additionally, a set of better than expected quarterly results from several large cap names also provided a measure of support. However, stocks fell from their highs during the final 90 minutes of the action amid reports indicating a doctor, who treated Ebola patients in Africa, was rushed to Bellevue Hospital in New York. In all likelihood, the ten-point slip from highs reflected selling by weak-handed longs that entered the market during the recent rally.

For the first time this week, the Dow Jones Industrial Average (+1.3%) was able to settle ahead of the S&P 500 with help from 3M (MMM 145.05, +6.10) and Caterpillar (CAT 99.27, +4.70). The two names reported better than expected results and surged 4.4% and 5.0%, respectively. However, it is worth noting the better than expected results and guidance were primarily a by-product of cost cutting and deft management rather than robust demand. To wit, Caterpillar's revenues were up just 0.9% year-over-year while 3M's revenues were up just 2.8%, yet those two companies reported EPS increases of 12% and 11%, respectively.

The two Dow leaders underpinned the industrial sector (+2.2%), which spent the entire session atop the leaderboard. Transport stocks went along for the ride with the Dow Jones Transportation Average climbing 2.1%. GATX (GMT 60.63, +3.51) spiked 6.1% and had the best showing after its better than expected revenue overshadowed below-consensus earnings. On the downside, JetBlue Airways (JBLU 10.86, -0.32) lost 2.9% after missing bottom-line estimates.

Elsewhere, the energy sector (+1.8%) followed not far behind with help from crude oil. The energy component also climbed 1.8% to $82.01/bbl.

Meanwhile, the other commodity-related sector-materials (unch)-spent the day near its flat line. Fertilizer stocks lagged after Potash (POT 32.54, -0.24) reported disappointing results. Miners lagged in the early going, but the Market Vectors Gold Miners ETF (GDX 20.56, +0.12) turned positive by the close to end higher by 0.6%.

On the countercyclical side, the health care sector (+1.8%) was the only group that was able to outpace the market while consumer staples (-0.1%), telecom services (-1.2%), and utilities (+0.2%) lagged. Health care drew strength from biotechnology after Celgene (CELG 100.40, +5.64) reported strong results while the telecom sector was pressured by AT&T (T 33.66, -0.84), which fell 2.4% in reaction to a one-cent miss.

Treasuries retreated throughout the day and spent the final hour of the action just above their lows. The 10-yr yield rose six basis points to 2.28%.

Today's participation was ahead of average with more than 796 million shares changing hands at the NYSE floor.

Economic data was limited to Initial Claims, FHFA Housing Price Index, and Leading Indicators:


Weekly initial claims increased to 283,000 from a revised rate of 266,000 (from 264,000), while the Briefing.com consensus expected a reading of 285,000
Although the increase appears relatively large at first glance, it is worth noting last week's reading represented a 14-year low
The August Housing Price Index from the FHFA rose 0.5%, which followed a revised increase of 0.2% (from 0.1%) observed during the prior month
September Leading Indicators increased 0.8% after a revised unchanged reading in August (from +0.2%), while the Briefing.com consensus expected an increase of 0.5%

Tomorrow's data will be limited to the New Home Sales report (Briefing.com consensus 475,000), which will be released at 10:00 ET.

Nasdaq Composite +6.6% YTD
S&P 500 +5.5% YTD
Dow Jones Industrial Average +0.6% YTD
Russell 2000 -4.1% YTD

DJ30 +216.58 NASDAQ +69.95 SP500 +23.71 NASDAQ Adv/Vol/Dec 2178/1.78 bln/742 NYSE Adv/Vol/Dec 2415/797.0 mln/702 3:35 pm :

Crude oil trended higher today overall and finished up today's session 2% (or $1.49) higher at $82.01/barrel
Gold was notably weak today and ended trading near today's lows, ending 1.3% lower at $1229.20/oz
Dec silver lost 0.5% at $17.15/oz
Natural gas erased most of its losses today, but still closed with a modest loss (-1% at $3.62/MMBtu
Corn prices gained after USDA reports weekly exports, which came in higher than expectations (although declined notably from last week)

4:59 pm Micron recommends shareholders reject TRC Capital's 'mini-tender' offer (MU) : Co received notice of an unsolicited mini-tender offer by TRC Capital Corporation to purchase up to 4,000,000 shares of Micron's common stock, at a price of $27.00 per share. This offering price is approximately 4.59% below the closing price per share of Micron common stock on October 16, 2014, the last trading day before the mini-tender offer was commenced. Micron does not endorse this unsolicited mini-tender offer and recommends that shareholders reject the offer because the offer price is below the current market price for Micron shares and is subject to numerous conditions.

4:24 pm Altera beats by $0.01, beats on revs; guides Q4 revs in-line (ALTR) : Reports Q3 (Sep) earnings of $0.38 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.37; revenues rose 12.0% year/year to $499.61 mln vs the $491.43 mln consensus.

Co issues in-line guidance for Q4, sees Q4 revs -2% to-6% sequentially (~$469.6-489.6 mln) vs. $486.03 mln Capital IQ Consensus Estimate. Sees gross margin of 66-67%.

4:24 pm KLA-Tencor reports EPS in-line, beats on revs; Announces leveraged capital return plan (KLAC) : Reports Q1 (Sep) earnings of $0.47 per share, in-line with the Capital IQ Consensus Estimate of $0.47; revenues fell 2.3% year/year to $643 mln vs the $620.69 mln consensus.

KLA-Tencor also announced a plan to accelerate its strategy to drive stockholder return. The Board of Directors has authorized the financing of a leveraged recapitalization, which would feature a special cash dividend of $16.50 per share, representing approximately 23% of the Company's common stock price as of October 22, 2014, or an aggregate value of approximately $2.75 billion. The special cash dividend would be in addition to the Company's regular $0.50 per share quarterly cash dividend. T
In connection with the leveraged recapitalization, the Board of Directors has approved an increase to the Company's stock repurchase program for up to 3.6 million additional shares of the Company's common stock, which is valued at approximately $250 million based upon the closing price of the Company's common stock as of October 20, 2014. This is in addition to the $1 billion stock repurchase program previously announced in July 2014. KLA-Tencor expects to complete these share repurchases within 12 to 18 months.
Including the intended special cash dividend of $16.50 per share or an aggregate value of approximately $2.75 billion, the $250 million increase to the stock repurchase program announced today, and the $1 billion stock repurchase program previously announced in July 2014, the total capital that would be directed to stockholders would be approximately $4 billion in aggregate.

4:18 pm Ingram Micro misses by $0.01, beats on revs; guides Q4 EPS in-line, revs above consensus (IM) : Reports Q3 (Sep) earnings of $0.62 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.63; revenues rose 10.7% year/year to $11.24 bln vs the $10.91 bln consensus.

Non-GAAP operating margin of 1.43%
"We are benefiting from new wins and strong market share and we are enhancing earnings power through disciplined cost management and execution on our global organizational effectiveness program."Co issues guidance for Q4, sees EPS of $0.95-1.02, excluding non-recurring items, vs. $0.97 Capital IQ Consensus Estimate; sees Q4 revs increasing 8-12% y/y to 12.78-13.25 bln vs. $12.44 bln Capital IQ Consensus Estimate.

4:16 pm Maxim Integrated beats by $0.01, misses on revs; guides Q2 EPS below consensus, revs below consensus (MXIM) : Reports Q1 (Sep) earnings of $0.38 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.37; revenues fell 0.8% year/year to $580.3 mln vs the $600.71 mln consensus.

Co issues downside guidance for Q2, sees EPS of $0.26-0.32, excluding non-recurring items, vs. $0.38 Capital IQ Consensus Estimate; sees Q2 revs of $540-580 mln vs. $603.85 mln Capital IQ Consensus Estimate.

4:16 pm Juniper Networks beats by $0.01, reports revs in-line; guides Q4 EPS below consensus, revs below consensus (JNPR) : Reports Q3 (Sep) earnings of $0.36 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.35; revenues fell 5.1% year/year to $1.13 bln vs the $1.12 bln consensus.

Co issues downside guidance for Q4, sees EPS of $0.28-0.32, excluding non-recurring items, vs. $0.40 Capital IQ Consensus Estimate; sees Q4 revs of $1025-1075 bln vs. $1.17 bln Capital IQ Consensus Estimate.


The Company sees the long-term demand drivers as healthy and is confident in its innovation pipeline. However, Juniper is planning for the overall revenue environment to be challenging and therefore is taking a prudent and cautious stance on revenue over the next several quarters.
Q4 Non-GAAP gross margin will be approximately 64%, plus or minus 0.5%.
Q4 Non-GAAP operating expenses will be $480 million, plus or minus $5 million. This amount is $20 million below what the Company committed to achieving by Q1'15.
Q4 Non-GAAP operating margin will be roughly 18.5% at the midpoint of revenue guidance.2015 Outlook
Non-GAAP operating expenses will be $1,900 million, plus or minus $25 million, which is approximately $130 million lower than the full year 2014 operating expense levels. Capital Allocation: $1.5 billion of aggregate share repurchases to be completed before Q2'15.

4:18 pm Maxwell Tech beats by $0.02, beats on revs; guides Q4 revs above consensus (MXWL) : Reports Q3 (Sep) loss of $0.08 per share, $0.02 better than the Capital IQ Consensus Estimate of ($0.10); revenues fell 18.8% year/year to $41.59 mln vs the $39.5 mln consensus.

Co issues upside guidance for Q4, sees Q4 revs up 20-25% sequentially, which equates to roughly $49.9-51.58 vs. $45.76 mln Capital IQ Consensus Estimate.

4:13 pm Maxwell Tech announces development agreement with Corning (GLW) to advance Ultracapacitor technologies (MXWL) : Co announces a joint development agreement with Corning Incorporated (GLW) with the goal of advancing the state of capacitive energy storage technology by addressing the challenges frequently cited by ultracapacitor customers, including energy density, lifetime, operating environment, form factor and cost.

Unlike batteries, which produce and store energy by means of a chemical reaction, ultracapacitors store energy in an electric field. This electrostatic energy storage mechanism enables ultracapacitors to charge and discharge in as little as fractions of a second, perform normally over a broad temperature range (-40 C to +65 C), operate reliably through one million or more charge/discharge cycles and resist shock and vibration.
MXWL offers ultracapacitor cells ranging in capacitance from one to 3,400 farads and multi-cell modules ranging from 12 to 160 volts.

4:11 pm Microsoft beats by $0.06, beats on revs (MSFT) : Reports Q1 (Sep) earnings of $0.54 per share, $0.06 better than the GAAP Capital IQ Consensus Estimate of $0.48; revenues rose 25.2% year/year to $23.2 bln vs the $22 bln consensus.

Devices and Consumer revenue grew 47% to $10.96 billion; Commercial revenue grew 10% to $12.28 billion,

4:11 pm Freescale Semi beats by $0.07, reports revs in-line; guides Q4 revs below consensus (FSL) : Reports Q3 (Sep) earnings of $0.49 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus Estimate of $0.42; revenues rose 1.7% year/year to $1.21 bln vs the $1.21 bln consensus.

Adjusted EBITDA of $304 mlnCo issues downside guidance for Q4, sees Q4 revs of $1.075-1.125 bln vs. $1.18 bln Capital IQ Consensus Estimate. Gross margins are expected to decline ~75-100bps on a sequential basis.

4:07 pm Mattson beats by $0.01, beats on revs (MTSN) : Reports Q3 (Sep) earnings of $0.01 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of ($0.00); revenues rose 13.6% year/year to $38.4 mln vs the $34.49 mln consensus.

4:06 pm Juniper Networks announces expansion of capital return commitment and declares quarterly cash dividend; board approves $1.1 bln increase to current capital return plan; capital commitment includes $1.5 bln of share repurchases before end of q2 2015; company on track to return total of $4.1 bln to shareholders through 2016 (JNPR) :

4:04 pm Aehr Test Systems announces follow-on order for ABTS test system from leading IC manufacturer (AEHR) : Co announced that it has received a follow-on order for an ABTS test and burn-in system from a leading multi-national manufacturer of advanced logic integrated circuits for automotive, embedded processing, digital signal processing and analog applications. The order includes a down payment and volume pricing discount. This system is planned to ship in the second quarter of Aehr Test's fiscal 2015.
4:03 pm Micrel misses by $0.05, reports revs in-line; guides Q4 revs below consensus (MCRL) : Reports Q3 (Sep) earnings of $0.07 per share, $0.05 worse than the Capital IQ Consensus Estimate of $0.12; revenues rose 8.3% year/year to $67.5 mln vs the $67.89 mln consensus.


Co issues downside guidance for Q4, sees Q4 revs of $58.7-60.5 mln vs. $66.33 mln Capital IQ Consensus Estimate. "Consistent with the rest of the industry, Micrel saw bookings soften in the third quarter as the global economy remained lackluster. Looking ahead, without the benefit of any significant economic momentum, we believe that the demand for semiconductors in the fourth quarter of 2014 will follow the typical seasonal pattern of flat to down from the third quarter."4:02 pm Lattice Semi beats by $0.01, misses on revs; guides Q4 revs below consensus (LSCC) : Reports Q3 (Sep) earnings of $0.08 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.07; revenues fell 0.7% year/year to $86.6 mln vs the $89.35 mln consensus. Co issues downside guidance for Q4, sees Q4 revs of $83.1-86.6 mln vs. $91.10 mln Capital IQ Consensus Estimate.

12:47 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers


KMX (52.13 +7.86%): Raised share repurchase authorization by $2 bln.
ALXN (185 +6.77%): Beat by $0.11, beat on revs; raised guidance for FY14, above consensus.
ORLY (167.57 +6.49%): Stock hit a new all-time high after beating by $0.11, beat on revs; guided Q4 EPS below consensus; guided FY14 EPS above consensus, revs in-line.

Large Cap Losers

CTXS (61.53 -5.02%): Beat by $0.02, missed on revs; guided FY14 EPS in-line, revs below consensus; Downgraded at BofA/Merrill, Drexel Hamilton.
WFT (16.45 -2.95%): Missed Q3 estimates by $0.01, missed on revs.
T (33.53 -2.81%): Reported mixed Q3 results, misses on net adds, lowered next plan growth rate; Tgt lowered at Canaccord, RBC Capital Mkts, others.

Mid Cap Gainers

BRP (23.16 +21.83%): Brookfield Asset Mgmt (BAM) proposed to acquire the 30% of BRP it doesn't already own for $23.00/share.
DAN (20.43 +16.81%): Beat by $0.07, missed on revs; guided FY14 EPS above consensus, revs below consensus.
TSCO (70.16 +14.45%): Beat by $0.05, beat on revs; raised FY14 guidance to high end of prior guidance; Upgraded to Strong Buy at Raymond James.

Mid Cap Losers

AIRM (46.64 -15.95%): Sees Q3 EPS of $0.83-0.87 vs $1.07 Capital IQ Consensus Estimate.
YELP (59.09 -15.86%): Reported Q3 results that beat expectations on both top and bottom line, but guided Q4 revs below consensus; Downgraded at Stifel.
CAB (50.09 -13.55%): Misses Q3 consensus by $0.05, missed on revs, comps -11.2%; issued downside FY14 guidance.

11:46 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (123) outpacing new lows (68) (:SCANX) : Stocks that traded to 52 week highs: AAC, AAP, AAPL, AAT, ADP, AEC, AGIO, AKR, ALX, AMAG, AMGN, AMRE, ANAC, ARE, AWK, AWR, BABY, BBW, BCC, BCR, BDL, BFS, BSTC, CELG, CHRW, CHSP, CLDT, CMS, CORE, CSX, CUBE, CVS, CVTI, DCT, DPLO, DPS, DPZ, DRH, DTE, DUK, DVA, ED, EDE, EGP, ELS, EPIQ, EQR, EROS, FAF, FB, FNF, FRT, GD, GPC, GTS, HCN, HCT, HD, HNT, HPP, HT, IBP, IDA, IHT, ILMN, INFN, INN, IT, JACK, KR, KRC, LAWS, LB, LEG, LHO, LOW, MDXG, MLNX, MNST, MO, MUSA, NLS, NP, NU, NVR, OB, OMAB, ORLY, OVAS, PANW, PEB, POR, PRE, RDI, REG, REGN, RGLS, RLJ, ROX, SCSS, SGC, SMCI, SSS, STE, STRA, SXI, TE, TMH, TREE, TRV, TUBE, UGI, UHT, UNP, USBI, USPH, VAC, VR, VVC, WGL, WM, WMS, WSBC

Stocks that traded to 52 week lows: ABIO, ABX, ACAT, ADHD, AG, AMZG, ASPS, AU, AUY, AXU, BBCN, BMS, BVSN, CAB, CAKE, CDE, CFBK, CGG, CKSW, CLB, CLI, CYRN, CZZ, DDD, DWSN, EGAN, EPAX, ESSX, FATE, GFA, GSS, HIL, HL, HLSS, HMY, IKGH, IPCM, KGC, MUX, NGD, OIBR, PCP, PDII, PME, PPP, PRLB, PRSS, PZG, QNST, RNO, RYAM, SAND, SBS, SEAC, SGNL, SMLR, SQI, STCK, SUSQ, TRIB, TRX, TUP, UBSH, UGP, UTEK, WF, WG, XNY

ETFs that traded to 52 week highs: IBB, XLU

ETFs that traded to 52 week lows: GDX

9:02 am Ultratech misses by $0.23, misses on revs (UTEK) : Reports Q3 (Sep) loss of $0.23 per share, $0.23 worse than the Capital IQ Consensus Estimate of ($0.00); revenues rose 13.8% year/year to $33.8 mln vs the $46.09 mln consensus.
"We remain confident that the long-term outlook for Ultratech is strong, with our best-in-class solutions for laser spike annealing, advanced packaging, wafer inspection and high-brightness LED solutions, which continue to address the developing needs of the industry."

[ReturntoSender]

4:10 pm: From Briefing.com: It was another day and another session where the stock market simply refused to buckle to selling interest. The major indices all logged modest gains, which is noteworthy given how far they have advanced from their mid-October lows.
There wasn't a lot of news driving Monday's gains, which leads one to think that the fear of missing out on a year-end rally continues to keep a bid in the market.

The S&P 500 and S&P 500 information technology sector were in sync on Monday as each increased 0.3%. Apple (AAPL 108.8, -0.20) didn't help either as it dipped 0.2% on light volume.

A renewed spring in the step of the semiconductor stocks, which have gotten tripped up the last few sessions, helped make a winning difference for the sector.

Texas Instruments (TXN 51.56, +0.66), NVIDIA (NVDA 20.02, +0.23), Lam Research (LRCX 79.92, +0.99), and Applied Materials (AMAT 22.63, +0.20) were among the standouts that also helped drive a 0.8% gain in the Philadelphia Semiconductor Index.

Intel (INTC 33.26, -0.32), however, was a notable laggard. It dipped 1.0% on no news.

Separately, Cisco (CSCO 25.15, -0.18) trailed behind as well in what was a tough day for many stocks catering to the telco space after AT&T (T 35.12, +0.21) noted its FY15 capital expenditures would be in the $18 billion range versus a budget of $21 billion for FY14.

Stocks getting caught in AT&T's capex web included the likes of Alcatel Lucent (ALU 3.17, -0.15), Ciena (CIEN 15.31, -1.31), ADTRAN (ADTN 20.11, -1.42), Ericsson (ERIC 11.63, -0.17), and Juniper Networks (JNPR 21.50, -0.41).

AT&T issued that capex guidance in conjunction with the news that it plans to acquire lusacell, Mexico's third-largest wireless operator.

In another notable piece of news, Internet service providers were under the gun after President Obama advanced his views on net neutrality to the FCC, suggesting that the consumer broadband business should be reclassified and regulated more like a public utility. AT&T voiced its opposition to the idea of regulating the Internet, saying it would participate in a legal challenge to such action should the FCC put such rules in place. Comcast (CMCSA 52.95, -2.20), Time Warner Cable (TWC 136.50, -7.10), and Verizon (VZ 50.72, -0.14) clearly weren't fans of the president's proposals either.

Moving on, there were a whole lot of fans of Alibaba Group (BABA 119.15, +4.59) on Monday, which said it sold $2 billion in gross merchandise value in just over an hour as part of its 11.11 Shopping Festival. That festival represents the world's largest 24-hour online sale.

BABA's performance along with the enthusiasm in China over the November 17 launch date for the Shanghai-Hong Kong Stock Connect, which will enable foreign investors to buy and sell Shanghai 'A' shares using Hong Kong brokers, drove some big gains in the Chinese Internet stocks. Weibo (WB 19.74, +0.71), Changyou.com (CYOU 23.40, +0.99), YY, Inc. (YY 82.43, +2.93), Baidu (BIDU 247.58, +11.04), Dangdang (DANG 13.26, +0.49), and Qihoo 360 Technology (QIHU 74.00, +2.71) all jumped more than 3.0% in Monday's trading.

Naturally, what proved to be good for Alibaba also proved to be good for Yahoo (YHOO 49.41, +0.86), one of its largest shareholders.

With Monday's gains, BABA and YHOO are up 40% and 31%, respectively, from their mid-October lows.

[BRIEFING.COM] The stock market began the new trading week on an unassuming note with the key indices registering modest gains. The S&P 500 added 0.3% while Russell 2000 (+0.5%) outperformed.

Equity indices began the trading near their flat lines after the overnight session did little to change investor sentiment. China's Shanghai Composite stood out, soaring 2.3%, after it was confirmed that the Shanghai-Hong Kong exchange link will begin operating on November 17.

Domestically, the S&P 500 resisted some mild selling efforts during the opening hour, but was able to advance alongside the biotechnology group. The iShares Nasdaq Biotechnology ETF (IBB 295.20, +5.06) gained 1.7% while the health care sector (+1.0%) settled in the lead despite starting among the laggards. Dow component Merck (MRK 58.81, -0.53) lost 0.9% after reporting disappointing trail data, but that had little impact on the sector.

Like health care, the remaining countercyclical groups started in the red, but ended with gains. The consumer staples sector added 0.4% with Dean Foods (DF 16.40, +1.98) surging 13.7% after beating bottom-line estimates and guiding Q4 earnings above consensus.

Elsewhere, the six cyclical sectors ended mixed with respect to the market. Technology (+0.3%) struggled at the start, but was able to end in-line with the S&P 500 amid strength in chipmaker names. The PHLX Semiconductor Index settled higher by 0.8% with just four names registering losses.

Similarly, industrials (+0.5%) and financials (+0.5%) finished ahead of the market while consumer discretionary (-0.1%) and energy (-0.8%) spent the bulk of the session in the red.

The discretionary sector was sent to lows during morning action after President Obama said the Federal Communications Commission should regulate the internet like a utility. The news pressured internet service providers with Charter Communications (CHTR 146.62, -9.75), Comcast (CMCSA 52.95, -2.20), and Time Warner Cable (TWC 136.50, -7.10) losing between 4.0% and 6.2%.

Meanwhile, homebuilders prevented the sector from registering additional losses. The iShares Dow Jones US Home Construction ETF (ITB 24.79, +0.24) rose 1.0% with Toll Brothers (TOL 32.96, +0.74) jumping 2.3% after issuing strong guidance for the fourth quarter.

For its part, the energy sector started in the lead, but slid to the bottom of the leaderboard with crude oil adding pressure. The energy component fell 1.4% to $77.26/bbl. Greenback strength presented a headwind with the Dollar Index (87.81, +0.16) erasing its overnight loss to end higher by 0.2%.

Treasuries retreated throughout the session, sending the 10-yr yield higher by six basis points to 2.36%.

Participation was in-line with long-term averages as 700 million shares changed hands at the NYSE floor.

Investors did not receive any economic data of note and tomorrow's session will also be quiet on the economic front. Also of note, the bond market will be closed for Veterans Day.
Nasdaq Composite +11.4% YTD S&P 500 +10.3% YTD Dow Jones Industrial Average +6.3% YTD Russell 2000 +1.4% YTD

4:42 pm STMicroelectronics announced that it has completed the repurchase of 20 mln shares of its common stock under its share buy-back program (STM) : The shares were repurchased between July 7 and November 10, 2014 on the Borsa Italiana Stock Exchange in open market transactions for a total of about $156 mln.

4:17 pm Juniper Networks announced that Rami Rahim has been named CEO, effective immediately; Shaygan Kheradpir has resigned as CEO and director of the company (JNPR) : Co announces that Rami Rahim has been named CEO, effective immediately. Rahim has also been appointed to the BoD. Rahim previously served as executive vp and general manager, Juniper Development and Innovation.
Shaygan Kheradpir has resigned as CEO and director of the Co. His resignation follows a review by the BoD of his leadership and his conduct in connection with a particular negotiation with a customer.

4:10 pm Vivint Solar misses by $0.39, beats on revs; guides Q4 revs below consensus (VSLR) : Reports Q3 (Sep) loss of $0.66 per share, excluding non-recurring items, $0.39 worse than the Capital IQ Consensus of ($0.27); revenues rose 260.9% year/year to $8.3 mln vs the $7.49 mln consensus.

MW Booked of ~62 MWs for the quarter, up 206% year-over-year. MW Installed of ~49 MWs, up 196% year-over-year. Total cumulative MWs installed were ~178 MWs as of September 30, 2014. Installations were 6,935 for the quarter, up 137% year-over-year. Cumulative installations were 28,856 as of September 30, 2014.

4:05 pm Rackspace beats by $0.01, reports revs in-line; guides Q4 revs below consensus (RAX) : Reports Q3 (Sep) earnings of $0.16 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.15; revenues rose 18.4% year/year to $460 mln vs the $458.62 mln consensus. Total server count in the third quarter of 2014 increased to 110,453, up from 107,657 servers at the end of the previous quarter. Revenue per server grew to $1,405 per month up from $1,375 in the previous quarter. Co issues downside guidance for Q4, sees Q4 revs of $469-476 mln vs. $477.02 mln Capital IQ Consensus Estimate; This range includes an expected negative foreign currency impact of approximately $5 million in the quarter or 110 basis points of sequential growth; Co expect Adjusted EBITDA margin to range between 33 percent to 35 percent for the fourth quarter of 2014.

12:35 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers


BMRN (86.86 +3.52%): Upgraded to Buy from Neutral at Goldman; tgt raised to $104 from $78.
NSC (116.13 +2.9%): Upgraded to Overweight from Equal-Weight at Morgan Stanley.
TGT (65.49 +2.05%): Upgraded to Buy at Stifel ahead of earnings, $76 PT.

Large Cap Losers

TWC (137.57 -4.2%): Lower following comments from President Obama calling for increased internet regulation (CMCSA & CHTR also lower).
PBR (10.57 -3.03%): Reports out that the company may face a criminal US investigation for alleged bribery.
GM (30.96 -1.99%): Lower following reports that the company had ordered replacement ignition switches two months before announcing the recall.

Mid Cap Gainers

DDD (36.15 +4.87%): Reported Q3 in-line with downside preannouncement; reaffirmed lowered FY14 guidance.
OIBR (0.5 +4.49%): Higher following reports that the daughter of Angola's President made a $1.5 bln bid for Portugal Telecom (PT).
FEYE (31.92 +4.25%): Added to Focus List at JP Morgan.

Mid Cap Losers

RYN (29.29 -13.6%): Beat Q3 consensus estimates by $0.08, missed on revs; realigns strategy, cut dividend 17%, restated financials from Q1/2; lowered FY14 guidance, guided FY15.
MTZ (25.29 -11.67%): Downgraded to Hold from Buy at BB&T Capital Mkts; lower following AT&T (T) announcing FY15 capex would be down almost 15% y/y.
JCP (7.28 -6.91%): Cautious view shared in a profile by Barron's this weekend.

11:44 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (218) outpacing new lows (47) (:SCANX) : Stocks that traded to 52 week highs: ABBV, ABCB, ABG, ACCO, ACE, ADP, ADSK, AEL, AFG, AIRT, ALK, ALL, AMAG, AMBA, AMP, AMRE, AMWD, ANIP, ASBC, ASH, ATNI, BABA, BAM, BC, BDL, BG, BJRI, BLUE, BMRN, BPY, BR, BRK.A, BRKL, BUSE, CACC, CASY, CB, CDK, CEA, CFFN, CFR, CHDN, CHRS, CLC, CNBKA, CPN, CQB, CRMT, CSX, CTSH, CVA, CVS, DDR, DENN, DFS, DHR, DHX, DIN, DPLO, DPZ, DRE, DXCM, EROS, ETP, EW, FCZA, FDP, FDS, FFBC, FFG, FII, FTD, FTNT, FUR, GEO, GMCR, GPC, GPI, GPN, GSBC, GWB, HAWK, HBOS, HCSG, HI, HIG, HII, HTBK, HURC, HVB, IDTI, IDXX, IFN, INGN, INGR, INTU, IP, ITC, ITW, JAH, JBLU, JCOM, JPM, KR, KWR, LEG, LEN, LG, LLY, LNBB, LNT, LSTR, LUV, MCO, MERC, MFRM, MGEE, MKL, MMC, MMM, MNR, MNST, MO, MPAA, MRGE, MSEX, MTD, MUSA, NAVG, NCLH, NEE, NU, NWN, ODFL, OZRK, PAHC, PANW, PEBK, PERY, PII, PLKI, PLL, PLNR, PLOW, PLT, POR, PPL, QTM, RAI, RDY, RGA, RGLS, RHI, RJF, ROG, ROL, ROST, SALM, SAVE, SBCF, SCG, SCSS, SEE, SERV, SFST, SHW, SIG, SLM, SMCI, SNE, SPR, SQBK, SRCL, SSNC, STRA, STT, SWIR, SWK, SXT, SYF, TARO, TDY, TFSL, TGS, TOF, TREE, TRV, TSRA, TXN, TXRH, UBSI, UEIC, UGI, UIL, UNP, UPS, UTL, UVE, VAL, VDSI, VFC, VOYA, VPRT, WAB, WAL, WGL, WM, WR, WRI, WSBF, WTR, WU, WWAV, XNPT, Y, YHOO, ZLTQ, ZTS

Stocks that traded to 52 week lows: ABIO, AKBA, AMRN, AMSC, ANF, ATL, AVL, BVSN, CHLN, CRNT, CVO, CYRN, CYTX, DCIX, DNDN, DSS, EPRS, ESSX, EVGN, FRPT, GBSN, HNSN, INVN, KOP, KTOS, LIQT, LOV, LPHI, MIND, MIXT, NADL, NAVB, NKA, OGXI, PANL, PFMT, PRTO, REN, RYAM, RYN, TCPI, THRX, UG, UVV, VOLC, XNY, YUMA

ETFs that traded to 52 week highs: DIA, DVY, IGV, IWF, IYF, IYG, IYJ, IYK, IYT, OEF, RTH, SDY, SPY, UYG, VTI, XLF, XLI, XLK, XLP

ETFs that traded to 52 week lows: none


9:07 am JDS Uniphase: Sandell to vote against Director nominees at JDS Uniphase; Investor retains proxy solicitation firm Okapi Partners to advise; potential value estimated at between $19 and $26 per share (JDSU) : Sandell Asset Management Corp has announced its intent to vote against certain of the company's nominees for Director at JDSU's 2014 Annual Meeting of Stockholders. Sandell had originally notified the Company of its intention to make a precatory proposal requesting that the Board task its financial advisors to evaluate further strategic alternatives, in addition to the previously announced proposed spin-off of its CCOP business, to maximize the value of the Company's various business segments as well as its substantial tax assets in a timely manner; however, the Company refused to include the proposal in its proxy statement. Proxy solicitation and investor response firm Okapi Partners LLC has been retained by Sandell to provide advice in regards to any shareholder outreach efforts.

8:32 am Solar Power announced that its newly established and wholly owned subsidiary, SPI Solar Power Engineering, entered into two engineering, procurement and construction agreements for an aggregate of 80 megawatts of solar projects in China (SOPW) : Co announces its wholly owned subsidiary, SPI Solar Power Engineering (Suzhou Xinwei), entered into two engineering, procurement and construction (:EPC) agreements for an aggregate of 80 megawatts (MW) of solar projects in China. The two agreements call for Suzhou Xinwei to provide EPC services to two projects - one ground-based utility project of 70 MW in Huade County, Inner Mongolia Region and one distributed generation project of 10 MW in Shunde County, Guangdong Province.

Construction of the Huade Project is scheduled to begin in early Dec 2014 and be completed with grid connection by the end of July 2015. Construction of the Shunde Project is scheduled to begin in Nov 2014 and be completed by the end of Dec 2014 with grid connection.

7:16 am KVH Industries misses by $0.07, reports revs in-line; guides Q4 EPS in-line, revs in-line (KVHI) : Reports Q3 (Sep) earnings of $0.07 per share, excluding non-recurring items, $0.07 worse than the Capital IQ Consensus Estimate of $0.14; revenues rose 10.2% year/year to $44.3 mln vs the $44.55 mln consensus.

Co issues in-line guidance for Q4, sees GAAP EPS of $0.10-0.15 vs. GAAP $0.11 Capital IQ Consensus Estimate; sees Q4 revs of $47-51 mln vs. $48.00 mln Capital IQ Consensus Estimate. Adjusted EBITDA was $5.9 million for the third quarter of 2014 compared to $4.9 million in the third quarter of 2013.7:03 am Canadian Solar to supply 4 MW energy storage solution to Independent Electricity System Operator to support the Ontario grid (CSIQ) : The 4 MW project will provide an energy storage solution for ancillary services applications in Ontario by leveraging Canadian Solar's extensive project development expertise and success in the Canadian energy market. In addition, this project was one of twelve selected by IESO in a competitive application process that was completed in July 2014.

1:31 am SunPower acquires SolarBridge Technologies (SPWR) : SunPower (SPWR) expanded its product portfolio for its residential customers with the acquisition of SolarBridge Technologies, Inc., a leader in integrated microinverter technologies for the solar industry. SunPower will utilize this technology, which converts direct current generated by a single solar photovoltaic panel into alternating current (:AC), to develop next generation microinverters for use with SunPower's high efficiency solar panels. Terms of the acquisition were not disclosed.

[ReturntoSender]

From Briefing.com: There are consolidation days and then there are consolidation days. Wednesday was more of the latter, which is to say the broader market looked to be stuck in concrete for most of the session. When it was all said and done, the S&P 500 gave back just over a point and declined less than 0.1%.

The Russell 2000 was the winning standout with a 0.6% gain and was followed by the Nasdaq, which jumped 0.3%.

Apple (AAPL 11.25, +1.55), which has a 9.3% weight in the Nasdaq Composite and a 3.6% weight in the S&P 500, was instrumental as a support factor. It moved up 1.4% on no news of note, although we suspect investors were drawn to the stock for its relative strength and its standing as a company that is least likely to report any news in the near term that would qualify as a material disappointment.

The best-performing stock in the sector, however, was Yahoo (YHOO 50.60, +1.55), which jumped 3.2%. That gain was fueled by the company's announcement that it will pay $640 million in cash to acquire BrightRoll, a leading programmatic video advertising platform. BrightRoll is expected to have net revenues in excess of $100 million and offers Yahoo an enhanced ability to compete against the likes of Google (GOOG 547.31, -2.98) and its YouTube property given BrightRoll's ability to attract advertisers and publishers.

It didn't hurt Yahoo either that Alibaba (BABA 118.20, +3.66) recouped most of what it lost on Tuesday.

Another stock rebounding from a weak showing on Wednesday was Juniper Networks (JNPR 20.87, +0.59). It tacked on 2.9% on some bargain hunting activity.

Other winning standouts in the sector included Avago Technologies (AVGO 87.05, +0.89), Computer Sciences Corp. (CSC 61.25, +1.05), EMC Corp. (EMC 29.43, +0.41), Jabil Circuit (JBL 21.35, +0.32), Qualcomm (QCOM 70.29, +0.65), Teradata (TDC 44.58, +0.87), and Visa (V 251.95, +2.70).

None of those stocks were driven by any news of note. Separately, Topeka Capital Markets initiated coverage of Visa and MasterCard (MA 84.35, -0.24) with Hold ratings.

Hold was an operative word on Wednesday as many stocks inside the S&P 500 information technology sector (+0.2%) behaved as if they were in a holding pattern.

There was more action found outside the sector in names like Alibaba, as mentioned above, and Twitter (TWTR 42.54, +2.95), which increased 7.5% following its first ever Analyst Day and declaration that it believes it is growing at a faster pace than IDC data indicate.

Cree (CREE 34.88, +0.96) was another name attracting bargain hunting interest following a sharp decline of late.

Postscript: After the close, Cisco (CSCO 25.11, -0.04) reported a fiscal first quarter profit of $0.54 per share that was slightly ahead of expectations on a 1.3% increase in revenue. Separately, it announced that CFO, Frank Calderoni, recently informed the company of his decision to step down, effective January 1, 2015. Kelly A. Cramer, Sr. VP of Business Technology and Operations Finance, has been named as Calderoni's replacement.

On its conference call, Cisco said it sees second quarter non-GAAP EPS of $0.50 to $0.52 (up 6-11%) and revenue growth of 4-7%. Those guidance ranges are below analysts' current expectations.

Shares of CSCO were down 1.0% in after-hours trading as of this writing.

4:20 pm Brooks Automation beats by $0.01, beats on revs; guides Q1 EPS below consensus, revs above consensus (BRKS) : Reports Q4 (Sep) earnings of $0.07 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.06; revenues rose 10.7% year/year to $122.5 mln vs the $117.74 mln consensus.

Co issues guidance for Q1, sees EPS of $0.05-0.07, excluding non-recurring items, vs. $0.08 Capital IQ Consensus Estimate; sees Q1 revs of $125-130 mln vs. $124.85 mln Capital IQ Consensus Estimate.CEO said, "We achieved sequential growth across all business segments during the fourth quarter, as well as year-over-year growth across all segments for the fiscal year. Growth came with higher margins as we continued to focus on higher value-added products and solutions."

4:15 pm Cisco Systems beats by $0.01, reports revs in-line; Sr. VP Kelly Kramer apointed CFO after Calderoni steps down (CSCO) : Reports Q1 (Oct) earnings of $0.54 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.53; revenues rose 1.3% year/year to $12.24 bln vs the $12.16 bln consensus.

"We are still in a tough environment, but seeing encouraging trends as cities, businesses, governments and schools are becoming more digitized."

Frank Calderoni recently notified Cisco of his decision to step down as executive vice president and chief financial officer of Cisco, effective January 1, 2015. Cisco plans to appoint Kelly A. Kramer to succeed Mr. Calderoni. She is currently senior vice president, Business Technology and Operations Finance of Cisco. Cisco repurchased ~41 million shares of common stock under the stock repurchase program at an average price of $24.58 per share for an aggregate purchase price of $1.0 billion during the first quarter of fiscal 2015.

4:15 pm Closing Market Summary: Energy and Financials Prevent S&P 500 From Posting Gains (:WRAPX) : The stock market ended the midweek session on a mixed note. The Nasdaq (+0.3%) and Russell 2000 (+0.5%) registered modest gains while the S&P 500 (-0.1%) settled just below its flat line.

Equity indices began the day in negative territory, but the broad weakness was not brought upon by macroeconomic developments. Instead, the benchmark index took a step back after soaring 12.0% off its mid-October low. However, the index could not be held down for long, charging back to its unchanged level before noon ET.

Heavily-weighted financials (-0.3%) and energy (-0.9%) were largely responsible for the opening weakness as the pair accounts for nearly 30.0% of the entire market. The energy sector continued retreating throughout the day while crude oil fell 1.0% to $77.11/bbl. For its part, the financial sector was able to cut its loss in half, but the group kept the benchmark index under pressure into the afternoon. Large banks were the source of the weakness after Bank of America (BAC 17.28, -0.04), Citigroup (C 53.42, -0.39), JPMorgan Chase (JPM 60.56, -0.81), Royal Bank of Scotland (RBS 11.82, -0.22), HSBC (HSBC 50.22, -0.35), and UBS (UBS 17.38, +0.05) were hit with a collective fine of $4.30 billion that was imposed by regulators from the U.S., U.K., and Switzerland. The fine marks the first action taken in a currency-rigging probe that began last year.

The daylong weakness in the two groups prevented the S&P 500 turning positive, but the benchmark index did not go down without a fight. The top-weighted sector-technology-registered a modest gain of 0.2% with help from Apple (AAPL 111.25, +1.55), while consumer discretionary (+0.5%) and industrials (+0.1%) also settled in the green.

Discretionary shares were underpinned by apparel names after Fossil (FOSL 112.48, +8.73) and Macy's (M 61.57, +2.98) reported better than expected results. However, both lowered their guidance and Fossil announced a $1 billion buyback. Retail names in general had a strong showing with the SPDR S&P Retail ETF (XRT 91.54, +1.67), which contains a selection of staple stocks, spiking 1.9%.

Elsewhere, the industrial sector rallied behind transport stocks. The Dow Jones Transportation Average added 0.4% with shipper Matson (MATX 35.21, +5.98) surging 20.5% after agreeing to acquire Horizon Lines (HRZL 0.65, +0.28) for $0.72 per share and the repayment of debt.

Treasuries notched their highs shortly before the start of the session, but retreated throughout the day. The 10-yr yield ended unchanged at 2.36%.

Participation was in-line with long-term averages but below recent trends with 702 million shares changing hands at the NYSE floor.

Economic data was limited to Wholesale Inventories and the MBA Mortgage Index:

Wholesale inventories increased 0.3% in September after increasing a downwardly revised 0.6% (from 0.7%) in August, while the Briefing.com consensus expected an uptick of 0.2% The BEA assumed that wholesale inventories declined 0.1% in the advance estimate for Q3 GDP, but inventory growth greatly exceeded the estimate, which should result in a positive revision to third quarter growth The weekly MBA Mortgage Index slipped 0.9% to follow last week's decline of 2.6% Tomorrow, weekly Initial Claims (Briefing.com consensus 280K) will be released at 8:30 ET while the Job Openings and Labor Turnover Survey will be reported at 10:00 ET. The day's data will be topped off with the 14:00 ET release of the Treasury Budget for October.
Nasdaq Composite +11.9% YTD S&P 500 +10.3% YTD Dow Jones Industrial Average +6.3% YTD Russell 2000 +1.9% YTD

4:09 pm MagnaChip Semi announces completion of audit committee's investigation; update on restatement process; Files to delay form 10-Q (MX) : Subject to management's completion of the restated financial statements and related disclosures for the restatement periods as well as the reviews and audit to be conducted by Samil PwC, the Company currently anticipates filing its 2013 Form 10-K by Jan 30, 2015, with the quarterly reports on Form 10-Q for the first three quarters of 2014 to be filed as soon as practicable thereafter. However, because of the nature and amount of work that needs to be completed to file the 2013 Form 10-K, the Company cannot be certain how much time will ultimately be required to complete the restatement process and accordingly there remains a substantial risk that additional time will be required.

Co also filed to delay the filing of its Form 10-Q.

1:04 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

JD (27.37 +6.04%): Announced it sees record orders during 2014 Singles Day sales event, saw over 14 mln orders on November 11, increase of over 120% y/y.
M (61.18 +4.42%): Reported Q3 earnings of $0.61 per share, $0.11 better than the Capital IQ Consensus Estimate of $0.50; revenues fell 1.3% year/year to $6.2 bln vs the $6.33 bln consensus; Q3 same store sales of -0.7% vs ~1.4% estimate; reaffirmed margin expectations.
YHOO (50.35 +2.65%): Announced a definitive agreement to acquire BrightRoll, a leading programmatic video advertising platform for ~$640 mln in cash; also there were reports that some investors want Yahoo & AOL (AOL) to merge.

Large Cap Losers

SJM (100.42 -4.11%): Guided OctQ and FY15 EPS and revenue below consensus on weaker coffee sales; Heard downgraded to Neutral at Northcoast following guidance cut.
E (40.21 -3.15%): Downgraded to Hold at Deutsche Bank.
CNHI (7.89 -2.77%): Heard initiated with an Underperform at Macquarie; tgt $7.

Mid Cap Gainers

FOSL (112.41 +8.35%): Reported Q3 results that beat consensus estimates by $0.14, beat on revs; guided Q4 EPS below consensus, revs below consensus; guided FY14 EPS in-line; Announced $1 bln share buyback; also announced that they have renewed their global licensing agreement with Michael Kors (KORS) through 2024.
AEO (13.49 +7.83%): Raised Q3 EPS guidance above consensus; Q3 comps -5%; Positive commentary out from Janney, Topeka.
PE (17.67 +7.48%): Beat Q3 consensus estimates by $0.03, reported revs in-line; guided 2H14 daily production above 1H14; Initiated with a Overweight at Johnson Rice.

Mid Cap Losers

RICE (26.75 -5.44%): Reported Q3 loss of $0.11 per share, $0.07 worse than the Capital IQ Consensus Estimate of ($0.04); revenues rose 234.1% year/year to $79.12 mln vs the $80.3 mln consensus.
JBLU (12.41 -4.13%): Downgraded to Neutral from Overweight at JP Morgan.
FANG (64.72 -4.12%): Announced pricing of secondary common stock offering of 2 mln shares by selling shareholders.

12:02 pm Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (131) outpacing new lows (80) (:SCANX) : Stocks that traded to 52 week highs: AAPL, AAT, ADP, AGIO, AMWD, ANIP, ARIS, ASML, ATHL, ATNI, BANF, BC, BIDU, BIN, BMI, BRK.A, BSET, BUSE, CACC, CAH, CATO, CDK, CEA, CHDN, CHE, CHFN, CHKP, CLC, CNC, CORE, CSH, CSL, CSX, CVTI, DHR, DHX, DRI, DTSI, DYAX, ENR, ENV, EROS, FBMS, FDS, FFG, FIZZ, FTD, FTNT, GK, GPI, HAWK, HBNK, HCSG, HI, HNT, HSP, HVB, IBN, IDCC, IDXX, IFN, INCY, INGN, IP, IQNT, IRM, KAR, KFRC, KNX, LABL, LB, LBTYA, LBY, LNDC, LOGM, LOW, MATX, MHG, MKSI, MMS, MNRK, MOH, MUSA, NAVI, NCLH, NKE, NSC, ODP, OMER, PAHC, PDCO, PERY, PG, PII, PRGS, PRI, PRK, PTX, QLYS, QTM, RDI, RDY, RGS, RHI, ROG, SAM, SBCF, SERV, SHLX, SPLP, SSNC, STZ, SUSQ, SWIR, SXT, TOF, TREE, TXRH, UBSI, USLM, UVE, VAC, VFC, VTAE, VVC, WAL, WERN, WMS, WSBC, WU, YHOO

Stocks that traded to 52 week lows: ACUR, AIXG, AMSC, ANGI, ARO, AXX, BPZ, CACH, CALL, CANF, CCSC, CEL, CERE, CGEN, CHOP, CPAH, CRNT, CYTX, DISCA, DISCK, DRD, EPAX, EPRS, ESSX, EVGN, EZCH, FMD, GRAM, GRVY, GSV, HCAP, HIIQ, HLF, HMG, IFMI, INVN, KOP, KTOS, LAND, LND, LPTN, MELA, MGI, MZOR, NAVB, NBG, NCTY, NKA, NMM, NSLP, NYMX, OXGN, PAL, PED, PHMD, PTNR, REN, RESI, RFIL, RNO, ROIA, ROIAK, RYN, SDLP, SEAS, SFUN, SFY, STAA, STAY, SWSH, THRX, TRUP, TS, UCP, USEG, W, WGA, WSTL, WTSL, XIN

ETFs that traded to 52 week highs: QQQ, RTH, XLK, XRT

ETFs that traded to 52 week lows: FXB

8:32 am Solar Power announced that its subsidiary, SPI Solar Power, has entered into a framework agreement to acquire Guodian Nailuen Tumed Left Banner PV Electricity for $101.3 mln (SOPW) : Co announces its subsidiary, SPI Solar Power, has entered into a framework agreement to acquire Guodian Nailuen Tumed Left Banner PV Electricity. Guodian Nailuen, a PV project company, operates 65 megawatts of existing PV projects in Tumed Left Banner County, Nailuen, Inner Mongolia, which were connected to the grid in 2013. The aggregate purchase price to acquire Guodian Nailuen is $101.3 mln, of which US$65.2 mln is in the form of lease financing.

[ReturntoSender]

Trend Changes and the Dangers of Crying Wolf


http://www.financialsense.com/contributors/jon-strebler/trend-changes-dangers-crying-wolf

[ReturntoSender]

From Briefing.com: Weekly Recap - Week ending 21-Nov-14Dow +91.06 at 17810.06, Nasdaq +11.10 at 4712.97, S&P +10.75 at 2063.50

The major averages ended an upbeat week with modest gains despite pulling back from their early highs. The S&P 500 gained 0.5% while the Nasdaq Composite (+0.2%) underperformed.

The stock market-and specifically equity futures-donned their party hats in the early morning hours after two major central banks spiked the punchbowl. Most notably, the People's Bank of China announced its first rate cut in two years, lowering its deposit rate 25 basis points to 2.75% and trimming its one-year lending rate 40 basis points to 5.60%. The news boosted U.S. futures and European equities, while comments made by European Central Bank President Mario Draghi also contributed to increased risk tolerance.

Mr. Draghi served up another reminder that low eurozone inflation has become increasingly challenging and the central bank is ready to act fast if current trends continue. The euro (1.2390) responded by returning near its early November low, while the resulting greenback strength sent the Dollar Index (88.29, +0.70) to a fresh four-year high.

The Dollar Index finished near its best level of the day while equities endured a bit of a hangover following the early morning extravaganza. Despite the pullback, all ten sectors ended in the green with telecom services (+0.1%) bringing up the rear.

Cyclical sectors fared better than their defensively-oriented counterparts with commodity-linked groups posting solid gains. The strength in these areas could be traced back to the news of the rate cut in China that underpinned miners and steelmakers. Rio Tinto (RIO 47.51, +2.20) surged 4.9% while the broader materials sector (+1.3%) settled in the lead. As for steelmakers, the Market Vectors Steel ETF (SLX 41.08, +1.54) soared 3.9%.

Manufacturers of heavy machinery also rallied with Caterpillar (CAT 106.45, +4.36) jumping 4.3%. The Dow component gave a boost to the industrial sector (+1.0%), which ended among the leaders.

Also of note, the energy sector (+1.2%) rallied with help from crude oil, which rose 1.1% to $76.53/bbl. However, crude ended well below its early high in the neighborhood of $77.75/bbl.

Elsewhere, the consumer discretionary sector (+0.2%) could not hold its early gain amid weakness in select retailers. GameStop (GME 37.86, -5.67) fell 13.0% after missing earnings/revenue expectations and guiding lower while Gap (GPS 38.46, -1.68) lost 4.2% after reporting in-line with its warning from November 6 and lowering its earnings guidance for fiscal year 2015. High-beta sector components also lagged with Expedia (EXPE 84.69, -1.39) and Netflix (NFLX 360.28, -7.86) ending lower by 1.6% and 2.1%, respectively.

Similarly, technology (+0.2%) could only hold a slim portion of its opening advance with Apple (AAPL 116.35, +0.04), Intel (INTC 35.60, -0.35), and Microsoft (MSFT 47.96, -0.73) pressuring the top-weighted sector from its early high.

Interestingly, Treasuries spent the day in a steady advance from their morning lows. The 10-yr note ended at its best level of the day with the benchmark yield down three basis points at 2.31%.

Today's participation was ahead of recent averages with roughly a billion shares changing hands at the NYSE floor.

Monday's session will be free of notable economic data.

Week in Review: S&P 500 Posts Fifth Consecutive Weekly Advance

The stock market began the week on an unassuming note. The S&P 500 (+0.1%) added just over a point while the Nasdaq (-0.4%) and Russell 2000 (-0.8%) underperformed throughout the session. The benchmark index started under modest pressure, but was able to finish near its best level of day with help from countercyclical sectors. News from overseas contributed to the early weakness as Japan's preliminary GDP report for Q3 revealed the second consecutive decline (-0.4%; expected 0.5%), meaning the country is now in recession. The news gave an overnight boost to the yen, but the currency was back to unchanged against the dollar (116.20) by the start of the U.S. session. The yen weakened a bit during the session, sending the dollar/yen pair to 116.50.

The major averages ended Tuesday near their highs with the S&P 500 (+0.5%) registering its fifth consecutive advance. The benchmark index settled at a fresh record high while the Nasdaq Composite (+0.7%) outperformed after struggling on Monday. The Tuesday session began on a flat note, but the health care sector (+1.6%) quickly pulled away from its unchanged level thanks to significant strength in biotechnology. The iShares Nasdaq Biotechnology ETF (IBB) jumped 2.2% and contributed to the relative strength of the Nasdaq. In addition to drawing support from biotech, the Nasdaq received a solid boost from chipmakers after SunEdison (SUNE) agreed to acquire First Wind for $2.40 billion as part of a joint venture with TerraForm Power (TERP). Shares of SUNE soared 29.4% while the broader PHLX Semiconductor Index spiked 1.9% with all but two components registering gains.

Equities ended the midweek session on a lower note with Tuesday's leader-Russell 2000-pacing the retreat. The small cap index lost 1.1% while the S&P 500 surrendered 0.2% with seven sectors finishing in the red. The benchmark index slumped at the start due to notable losses among several heavily-weighted sectors. However, the S&P 500 was able to pull away from its late-morning low thanks to relative strength in consumer discretionary (+0.5%), consumer staples (+0.4%), and energy (+0.6%). Although the trio helped the S&P 500 recover from its low, the index could not complete its comeback as industrials (-0.3%), technology (-0.6%), and health care (-0.5%) weighed.

Thursday ended on a modestly higher note despite a cautious start. The S&P 500 added 0.2% while the Nasdaq Composite (+0.6%) and Russell 2000 (+1.1%) outperformed. Equities faced some pressure at the start after disappointing data from overseas led to profit taking in Europe. Specifically, China's HSBC Manufacturing PMI came in at 50.0, which represents the difference between expansion and contraction, while Japan reported a slim downtick to 52.1 from 52.4. As for the eurozone, Manufacturing PMI slipped to 50.4 from 50.6 and Services PMI fell to 51.3 from 52.3. The key indices began inching away from their lows right after the open and the cautious sentiment evaporated in a hurry after better than expected Existing Home Sales (5.26 million; Briefing.com consensus 5.17 million), Leading Indicators (0.9%; consensus 0.6%), and Philadelphia Fed Survey (40.8; expected 18.3) crossed the wires at 10:00 ET.

 
 Index	    Started Week  Ended Week   Change  % Change  YTD % 
 DJIA	     17634.74	  17810.06	175.32	   1.0	 7.4 
 Nasdaq	      4688.54	   4712.97	24.43	   0.5	12.8 
 S&P 500	2039.82	   2063.50	23.68	   1.2	11.6 
 Russell 2000  1173.80      1172.42      -1.38	  -0.1	0.8

3:32 pm Earnings Preview for the week of November 24 - 28 (:SUMRX) : Of the companies reporting earnings for the week of November 24 - 28 some of the bigger names include:

Monday: Pre Market - TSL, NM, DCIX, ENTAAfter Hours - ANW, BRCD, NUAN, DY, QIHU, CPRT, WDAY, PANW, ANFI, KANG, VMEM

Tuesday: Pre Market - TECD, HRL, CPB, VAL, SIG, TIF, BECN, BWS, PLL, CHS, CBRL, DSW, YGE, FRED, EV, DANG, LG, AMWD, MOV, DAKT, CTRN, XCRA, DSX, NJRAfter Hours - HPQ, ADI, CUB, CTRP, PWRD, VNET, TIVO, VEEV, BLOX, NMBL, AVAV, XNET

Wednesday: Pre Market - DE, SDRL, SOLAfter Hours - LEDS

12:41 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

ADSK (62.49 +6.99%): Beat Q3 consensus estimates by $0.03, beat on revs; guided Q4 EPS below consensus, revs above consensus; Co raised billings growth and net subscriptions.
ROST (88.85 +6.78%): Beat Q3 consensus estimates by $0.06, beat on revs; reaffirmed Q4 EPS guidance; Tgt raised at Canaccord, Telsey, FBR, others.
HTZ (24.06 +5.76%): The company appointed John Tague President and CEO effective Nov 21, 2014; positive reception from activist shareholders.

Large Cap Losers
GPS (38.01 -5.31%): Reported Q3 earnings in-line with preannouncement; lowered FY15 EPS guidance; Tgt lowered at Mizuho, Canaccord Genuity, others.
MAT (31.2 -1.08%): Resumed with a Neutral at Goldman.
RBS (11.82 -0.96%): The co recognized an error in its calculation of the modeled Common Equity Tier 1 ratio for the 2014 European Banking Authority stress test results which led to RBS's published CET1 stress test ratios being overstated.

Mid Cap Gainers

BID (42.38 +8.03%): Announced that CEO William F. Ruprecht will step down by mutual agreement with the Board; Ruprecht to continue as Chairman, President, and CEO until a successor is in place.
SPLK (68.19 +5%): Beat Q3 consensus estimates by $0.01, beat on revs; guided Q4 revs above consensus; guided FY16 revs above consensus; Tgt raised at FBR, Stifel, BMO, others.
AWAY (31.3 +4.16%): Rose following rumors than Priceline (PCLN) may be interested in buying the co.

Mid Cap Losers GME (38.24 -12.18%): Missed Q3 consensus estimates by $0.04, missed on revs; guided Q4 EPS below consensus; guided FY15 EPS below consensus; Downgraded at Telsey.WX (35.12 -2.88%): Downgraded to Hold from Buy at Jefferies; tgt lowered to $38 from $40.DDS (118.43 -2.16%): Downgraded to Neutral from Buy at BofA/Merrill.

11:50 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (275) outpacing new lows (41) (:SCANX) : Stocks that traded to 52 week highs: AA, AAPL, ABBV, ABMD, ACCO, ACE, ACMP, ADM, ADSK, AEC, ALKS, ALL, AMGN, AMOT, AMP, AMT, ANAC, APD, APOG, ARG, ASH, AUPH, AUXL, AXS, BAP, BCR, BDL, BDX, BEP, BERY, BG, BGCP, BIG, BLK, BLT, BMY, BOOT, BPL, BPY, BR, BRCD, BRK.A, BRK.B, BURL, CASY, CATO, CB, CFN, CHD, CHKP, CIM, COKE, COST, COV, CQB, CSCO, CSL, CST, CSTE, CSX, CTLT, CVTI, DDC, DG, DGX, DHI, DHIL, DHR, DIN, DISH, DJCO, DLPH, DLTR, DNB, DPS, DPZ, EA, EEFT, EEP, EEQ, EHIC, ELLI, ESRX, FAF, FARM, FDP, FDX, FFIV, FFNW, FIS, FISV, FL, FLT, FNF, FTNT, GD, GLP, GNCMA, GNTX, GPC, GPI, GPN, HBI, HCC, HDB, HI, HIG, HON, HRC, HRL, HSNI, HTLD, IBCA, IBN, IDCC, INCR, INCY, INGR, INTC, INTU, IPXL, IRF, ITW, JAH, JBLU, JCOM, JJSF, JLL, JWN, KMG, KNX, KONA, KR, LB, LBRDK, LBY, LEG, LEN, LEN.B, LM, LNC, LNDC, LOW, LQ, LSTR, LVLT, LWAY, M, MAG, MCRL, MDT, MERC, MHG, MIK, MLI, MMC, MMM, MMP, MNST, MPC, MRGE, MTD, MTG, MUSA, MWV, NAVI, NCLH, NDAQ, NICE, NKE, NOC, NTES, NVEE, NWL, NXPI, ODFL, ODP, PAYC, PEI, PEP, PETM, PH, PHM, PJC, PLL, PPG, PRAH, PSEM, QTM, QTNT, QTWO, QVCA, RAI, RAX, RBA, RCL, RCPT, RDCM, RDI, RDN, RDY, RE, RFMD, RGA, RHP, RHT, RIC, RL, ROST, RPM, RTN, SBAC, SBFG, SCI, SEE, SEP, SERV, SHO, SHW, SIRO, SJR, SNA, SNPS, SPR, SSNC, STOR, STRT, STX, STZ, SUSQ, SWFT, SWI, SWKS, SXL, SYK, TAP.A, TASR, TCP, TCX, TFSL, TFX, THG, THI, TQNT, TRV, TSM, TSO, TSRA, TTWO, TUES, TXN, TXT, UCFC, UNP, USB, USCR, V, VAC, VAL, VAR, VFC, VOYA, VR, VRNT, WAB, WAT, WBB, WERN, WHR, WLDN, WRB, WSM, XRAY, Y, ZUMZ

Stocks that traded to 52 week lows: AM, AMDA, APDN, ASPN, ATAI, BANX, BIND, BRN, CRDC, CRNT, DSCO, ECT, FORD, HSON, LQDT, LXRX, MCP, MOLG, MRVC, NBS, NSPR, ORPN, OTIV, OXFD, PICO, PRSS, RENN, RVLT, SIFY, SMT, SPHS, SR, SYRX, SZYM, UAMY, VIVO, VJET, VLTC, WAIR, WHZ, XNY

ETFs that traded to 52 week highs: DIA, DVY, IGN, IGV, IHI, IWF, IYF, IYH, IYJ, IYK, IYT, KIE, MDY, MOO, OEF, PPA, PSK, QQQ, RTH, SDY, SMH, SOXX, SPY, UUP, UYG, VTI, XLB, XLF, XLI, XLK, XLP, XLV, XLY, XRT

ETFs that traded to 52 week lows: none

2:23 am Alibaba prices offering of $8.0 bln of Senior Unsecured Notes (BABA) : Co announced the pricing of an offering of $8.0 billion aggregate principal amount of senior unsecured notes, consisting of:

$300 million floating rate notes due 2017 at an issue price per note of 100.000%
$1,000 million 1.625% notes due 2017, at an issue price per note of 99.889%
$2,250 million 2.500% notes due 2019 at an issue price per note of 99.618%
$1,500 million 3.125% notes due 2021 at an issue price per note of 99.558%
$2,250 million 3.600% notes due 2024 at an issue price per note of 99.817%
$700 million 4.500% notes due 2034 at an issue price per note of 99.439%

The People's Bank of China surprised global markets with the first cut to its benchmark lending rate in two years and ECB President Draghi implied in remarks he made that more stimulus is needed to arrest disinflationary forces in the eurozone. With those thoughts in mind, it will perhaps come as little surprise to hear that the stock market strung together another winning session on Friday

The indices did fade from their opening highs, yet if one is long the stock market, a gain is still better than no gain. Including Friday's 0.5% advance, the S&P 500 is up 13.3% from its October low, demonstrating that the last five weeks have been very good for anyone who is long the stock market.

On Friday, the S&P 500 information technology sector was a quiet participant in the advance. It trailed the market with a 0.2% gain that was held in check by losses in Intel (INTC 35.59, -0.63) and Microsoft (MSFT 47.98, -0.72), both of which came on the back of cautious analyst remarks

In the case of Intel, which surged 4.7% on Thursday, it fell 1.0% after the analyst at Credit Agricole went against the grain and downgraded the stock to Sell from Underperform. That move seemed to overshadow RBC Capital Markets, Cowen, FBR Capital, and Stifel all raising their price targets for Intel, so it could very well have been a case of profit-taking activity after a big run in Intel's stock that clearly went against the grain of Credit Agricole's prior Underperform rating. Entering Friday's trading, INTC was up 38% for the year.

eBay (EBAY 54.42, -0.12) was another company that drew a Sell rating. That came courtesy of Evercore ISI, which previously had a Hold rating on the stock.

Jefferies, meanwhile, put a lid on Microsoft's stock after initiating coverage with an Underperform rating and $40 price target. The firm also tagged Symantec (SYMC 25.33, -0.07) and Salesforce.com (CRM 58.19, -0.12) with Underperform ratings as part of new coverage on a host of technology issues that included Buy ratings for Adobe Systems (ADBE 71.32, +0.88), CA Technologie

[ReturntoSender]

From Briefing.com: With the steep drop in oil prices(-9.3% to $66.85/bbl), Black Friday took on a new meaning this year. That drop was precipitated by a Thanksgiving Day decision out of OPEC to leave its production quota unchanged at 30 million barrels per day.

Worries about excess supply were wrapped up in the price decline, yet OPEC's non-move was also seen as a shot across the bow of higher-cost U.S. shale producers whose output has lessened the need for OPEC's oil. Those concerns were easy to spot in the S&P 500 energy sector, which declined 6.3% on this black-and-blue Friday.

The broader market held up reasonably well.

While plummeting oil prices are a negative for the energy companies, they are a bonus for users of oil, like the transportation companies. In turn, lower oil prices will translate into lower gas prices, which is a positive for consumer discretionary spending.

Technology companies are largely immune to oil price swings or are certainly less exposed to price swings. Accordingly, the S&P 500 information technology sector was neither abnormally high nor abnormally low on Friday. It was up, though, gaining 0.4% versus a 0.3% decline for the S&P 500.

Not surprisingly, there wasn't a lot of news in the space on Friday. The retail and energy companies hogged most of the spotlight in that respect. Still, there was a positive bias in the sector, which saw 53 of its 66 components trade higher.

Apple (AAPL 118.93, -0.07) was among the minority of stocks that lost ground despite early reports from the retailers highlighting strong demand for Apple's products. Separately, a Digitimes article cited sources as saying chip orders for the latest iPhone will slow in the first quarter from the fourth quarter and that shipments for its latest iPhone devices might have already peaked.

Google (GOOG 541.37, +1.00), meanwhile, shrugged off a report indicating the European Parliament passed a non-binding resolution that calls for antitrust regulators to break up Google.

Amazon.com (AMZN 338.46, +4.89) certainly drew its fair share of Black Monday, Tuesday, Wednesday, Thursday, and Friday interest. Channel Advisor reported that Amazon's online sales rose 25.9% year-over-year on Thanksgiving Day. Piper Jaffray for its part raised its price target for AMZN to $400 from $350; the firm has an Outperform rating on the stock. Amazon was also seen as a beneficiary of the drop in oil prices, which should help lower transportation and shipping costs.

First Solar (FSLR 48.74, -2.78), on the other hand, got knocked around pretty good along with alternative energy stocks, which got clipped on the drop in oil prices.

First Solar, which dropped 5.4%, was the S&P 500 information technology sector's worst-performing component by far on Friday. Its nearest competitor was SanDisk (SNDK 103.04, -1.22), which declined 1.2% on no news.

The best-performing sector component was KLA-Tencor (KLAC 69.44, +2.11). It gained 3.1% in the face of a report that the analyst at Berenberg started coverage with a Hold rating, saying she thinks the stock is fairly valued. The same analyst started coverage of Lam Research (LRCX 82.75, +0.56) with a Buy rating on the belief it is positioned to gain market share in the etching market.

Their gains helped the Philadelphia Semiconductor Index outperform with a 0.3% gain. Industry peer Applied Materials (AMAT 24.05, +0.18) helped, too, advancing 0.8%. Prior to the open, it was said that the effective date of the Tokyo Electron Share Exchange has been moved from December 30, 2014, to March 24, 2015. The merger of equals between the two companies was first announced on September 24, 2013.

Weekly Recap - Week ending 28-Nov-14Dow +0.49 at 17828.24, Nasdaq +4.31 at 4791.63, S&P -5.27 at 2067.56

The stock market endured some post-Thanksgiving indigestion brought on by severe weakness in the energy sector (-6.4%). The S&P 500 (-0.3%) ended at its lowest point of the day while the Nasdaq (+0.1%) eked out a slim gain thanks to the absence of energy stocks within the tech-heavy index.

Equities began the Black Friday session with investors paying more attention to the oil pits than mall parking lots as black gold was taking a beating. This morning, crude oil was trading near $69.00/bbl after yesterday's OPEC decision to maintain output at 30 million barrels per day. That represented a 6.0% loss, which led to comparable weakness in the energy sector.

Despite the plunge in energy, the market was able to recover with help from health care (+0.6%), technology (+0.5%), and the two consumer sectors (discretionary +1.2%; staples +1.3%), both of which benefited from strength among retailers. Dow component Wal-Mart (WMT 87.54, +2.56) spiked 3.0% after more than 22 million customers visited Wal-Mart stores on Thursday, suggesting a strong start to the holiday shopping season. The broader SPDR S&P Retail ETF (XRT 94.31, +0.84) advanced 0.9%.

However, as the session neared the end, the focus shifted to the oil pits once again where crude dropped below yesterday's low to $67.28/bbl, representing an 8.7% decline.

In turn, the slide in crude pressured the energy sector, and the broader market, to a fresh low for the day. Major sector components took a beating with BP (BP 39.32, -2.27), Chevron (CVX 108.87, -6.24), ExxonMobil (XOM 90.54, -3.94), and Halliburton (HAL 42.20, -5.14) sinking between 4.2% and 10.9%.

Elsewhere, the materials sector (-2.3%) could not escape the overall weakness among commodities. Copper tumbled 3.7% to $2.847/lb while gold fell 2.5% to $1.167.80/ozt. Last, but not least, silver cratered 7.0% to $15.44/ozt. Miners and steelmakers felt the weight with Market Vectors Steel ETF (SLX 39.50, -1.42) and Market Vectors Gold Miners ETF (GDX 18.36, -1.74) plunging 3.5% and 8.7%, respectively.

Making matters worse for commodities was the strengthening dollar, evidenced by a 0.5% advance in the Dollar Index (88.41, +0.39).

The commodity weakness also pressured some components of the industrial sector (-0.8%) like Caterpillar (CAT 100.60, -5.19), which fell 4.9%. However, the sector was able to avoid larger losses thanks to a flat finish from the Dow Jones Transportation Average. Still, the bellwether surrendered its intraday gain after a tug-of-war between railroad stocks and airlines. Rail carriers, who benefit from higher oil prices, tumbled with CSX (CSX 36.49, -1.42), Norfolk Southern (NSC 111.67, -5.53), and Union Pacific (UNP 116.81, -6.00) falling between 3.8% and 4.9%. In turn, air carriers like Delta Air Lines (DAL 46.67, +2.43) and United Continental (UAL 61.23, +4.63) cheered lower fuel prices, soaring higher by 5.5% and 8.2%, respectively.

When the dust settled, the major outage in the energy sector proved too much for the stock market to overcome. Furthermore, the inability of the sector to recover even a small portion of its losses, led to profit taking from areas that displayed strength. For instance, the iShares Nasdaq Biotechnology ETF (IBB 303.90, +0.03) ended flat after being up near 1.0% at the start. Meanwhile, small caps made new lows into the afternoon with the Russell 2000 ending lower by 1.5%.

Treasuries benefited from the sloppy equity session with the 10-yr yield sliding five basis points to 2.18%.

Participation was relatively heavy considering the abbreviated session. More than 635 million shares changed hands at the NYSE floor.

Monday's data will be limited to the November ISM Index, which will be released at 10:00 ET (Briefing.com consensus 58.0).

Week in Review: Stocks Climb Into Thanksgiving

The major averages kicked off the holiday-shortened week with an advance that was paced by the Russell 2000 (+1.2%). The small-cap index was followed by the Nasdaq Composite (+0.9%) while the Dow (+0.04%) and S&P 500 (+0.3%) ended closer to their flat lines. Stocks rallied out of the gate with upbeat action overseas contributing to the early strength. Equities in China and Hong Kong spiked in reaction to Friday's PBoC rate cut while European markets were boosted by increased expectations of a forthcoming sovereign QE program from the European Central Bank. To that point, Credit Suisse said it expects the ECB to announce plans for sovereign asset purchases in December. ECB member and German Bundesbank President Jens Weidmann pushed back against the easing expectations, reminding that monetary policy alone is unable to create growth and requires corresponding measures from the fiscal side. Despite Mr. Weidmann's comments, the market's expectation for more QE manifested itself through increased demand for Italian and Spanish debt. Italian and Spanish 10-yr yields both fell five basis points to their respective 2.15% and 1.97%.

Equities ended the Tuesday session on a flat note. The S&P 500 shed 0.1% after spending the day in a ten-point range while the other indices also settled near their unchanged levels. Despite the flat finish, equity indices rallied at the start after the second revision to Q3 GDP surprised to the upside (3.9%; Briefing.com consensus 3.2%). However, the opening spike marked the session high for the S&P 500, which returned to unchanged by the end of the first hour.

The key indices ended Wednesday near their best levels of the day with the Nasdaq Composite (+0.6%) finishing in the lead. The S&P 500 settled higher by 0.3% while the Dow Jones Industrial Average hovered near its flat line throughout the session. Meanwhile, the benchmark index spent the day in a slow and steady advance despite a heavy batch of disappointing economic data that was reported on Wednesday. The index did show some signs of defensive posturing as all four countercyclical sectors ended ahead of the market while cyclical sectors traded in mixed fashion. The telecom services sector (+1.2%) finished in the lead after trending higher throughout the day, but more notably, the heavily-weighted health care sector (+0.7%) posted a solid gain with help from biotechnology.

Index Started Week Ended Week Change % Change YTD %
DJIA 17810.06 17828.24 18.18 0.1 7.6
Nasdaq 4712.97 4791.63 78.66 1.7 14.7
S&P 500 2063.50 2067.56 4.06 0.2 11.9
Russell 2000 1172.42 1173.23 0.81 0.1 0.8

Take a FREE TRIAL of Briefing.com's complete Live market analysis of the U.S. stock and bond markets, technology stocks, economic releases, earnings reports, and day trading highlights

12:36 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

AAL (49.12 +9.23%): Strength in major airlines and cruise companies due to decreasing oil prices: UAL, LUV, DAL, RCL, CCL also higher
WMT (87.71 +3.21%): Co issued positive comments on early Black Friday results; reiterated with a Neutral at MKM Partners
TGT (73.93 +2.45%): Co said it had a "strong early start" to Black Friday weekend; reierated with a Neutral at MKM Partners

Large Cap Losers

CLR (40 -21.83%): Weakness in large cap oil & gas companes following OPEC decision to not cut production: CXO, WFT, CPG, EC, STO, HAL, APA, ECA also lower
CP (193.09 -8.00%): Weakness in railroads following declines in natural gas prices which lessens the demand for thermal coal: NSC, KSU, UNP, CNI, CSX also lower
ABX (11.96 -7.54%): Weakness in gold companies: GG also lower

Mid Cap Gainers

JBLU (14.71 +8.16%): Strengh in regional airlines following the decrease in oil prices: ALK, SAVE, ALGT, CPA, LFL also higher
JCP (8.03 +3.65%): Mentioned positively in blog article
VEEV (33.35 +3.00%): Continued strength following strong Q3 results and Q4 guidance reported on Tuesday

Mid Cap Losers

LPI (10.25 -34.80%): Weakness in mid-cap oil & gas companies following OPEC decision to not cut production: OAS, EPE, KOG, PE, WLL, TLM, PWE, RSPP also lower
SLCA (31.46 -24.95%): Continued weakness following downgrade to Market Perform from Outperform at Wells Fargo on Wednesday
GLNG (41.55 -15.98%): Price target lowered to $52 from $57 at Jefferies, reiterated with a Hold

11:52 am Stocks/ETFs that traded to new 52 week highs/lows this session- New highs (176) outpacing new lows (60) (:SCANX) : Stocks that traded to 52 week highs: AAL, ABBV, ABC, ACE, ACN, ADP, AGN, AIV, AKAM, ALK, ALL, AMAT, AMGN, AMT, AON, APH, AVGO, AVNR, BC, BDX, BEE, BERY, BIG, BKW, BMY, BRCM, BRK.B, BUD, CAG, CAH, CB, CBG, CCL, CDNS, CELG, CENX, CFN, CHKP, CHTR, CIM, CLX, COL, COST, COV, CSCO, CTSH, CUBE, CVA, CVS, DAL, DGX, DHR, DIS, DISH, DLPH, DLR, DLTR, DPS, DRH, DRI, EAT, EIX, EQR, ESRX, FDX, FIS, FISV, FNF, FOXA, FTNT, GD, GGP, HAS, HBAN, HCN, HCP, HD, HLT, HON, HPQ, HST, INCY, INFY, INTC, JBHT, JBLU, JWN, KIM, KMB, KMX, KO, KR, LB, LBRDK, LBTYA, LBTYK, LEG, LHO, LM, LRCX, LUV, LYV, M, MA, MAC, MAR, MCK, MDT, MDVN, MHFI, MMC, MNST, MO, MU, MYL, NAVI, NCLH, NKE, NOC, NVDA, NVS, NWL, NXPI, OMC, PANW, PEP, PG, PGRE, PPG, QVCA, RAI, RCL, RGC, ROST, RPAI, RTN, SAVE, SBAC, SCG, SCI, SEE, SHO, SKT, SNE, SPR, STOR, STZ, SWFT, SWKS, SYK, SYMC, TGT, TJX, TMO, TQNT, TRV, TSM, TXN, UAL, UDR, UNH, UPS, USB, V, VFC, VRTX, VTR, WFC, WMT, WU, WYN, XEL, XL, XRAY, ZMH, ZTS

Stocks that traded to 52 week lows: AM, APA, ATW, BBEP, BHP, BP, CAM, CIE, CLR, CVE, DNOW, DNR, DO, ECA, EPE, ESV, FCX, FLS, FMSA, FTI, HAL, HP, JOY, KOG, KOS, LINE, LNCO, LPI, MBT, MDU, MEOH, MRO, MUR, NBL, NBR, NE, OAS, OIS, OKS, OXY, PDS, PGH, PTEN, PWE, PXD, RES, RIG, ROSE, SDRL, SID, SLB, SM, SPN, STO, TLM, TS, VIP, WFT, WLL, WPX

ETFs that traded to 52 week highs: DIA, IBB, ICF, IGN, IGV, IHF, IHI, ITA, IWF, IYF, IYG, IYH, IYK, IYR, IYT, KIE, OEF, PFF, PPA, PPH, PSK, QQQ, RTH, SDY, SMH, SOXX, SPY, URE, UYG, VNQ, XBI, XLF, XLK, XLP, XLV, XLY, XRT

ETFs that traded to 52 week lows: BNO, DBC, DJP, FXA, FXY, GSG, JJC, OIH, OIL, REMX, RSX, UGA, UHN, USCI, USO, XES, XOP

Note: To reduce the list of stocks making 52 week highs/lows to a manageable size we have filtered out stocks below $2 bln in market cap and below 1 mln average volume. Without this filter 459 stocks made 52 week highs and 228 stocks made 52 week lows.

9:01 am Ingram Micro announced that it has made a binding offer for the acquisition of ANOVO (IM) : Co announced it has made a binding offer for the acquisition of ANOVO, a France based provider of reverse logistics and repair services for high-tech products such as smartphones and set-top boxes across Europe and Latin America. Upon completion of the acquisition, which is expected in early 2015, ANOVO is anticipated to contribute in excess of $300 mln in annual revenue and be modestly accretive to IM's non-GAAP diluted earnings per share. Further details were not disclosed.

[ReturntoSender]

Hindenburg Omen

http://www.amateur-investor.net/Weekend_Market_Analysis_Dec_6_2014.htm

My comments concerning the Hindenburg are fairly simple. It is extremely unusual to have the number of new lows expanding while the number of new highs in the market are dwindling even as the stock market hits new highs. This was happening prior to the sell off in late September and early October. It is happening again. Only 6% New Highs on Friday December 6th.

http://markets.wsj.com/usoverview



Here you will see that the number of New Lows has been above 84 several times even as the number of New Highs has been faltering again. Down to 6% on Friday which is the average number of new highs seen at past major market tops.



The final reading necessary to suggest a valid Hindenburg Omen is in place is a negative reading on the McClellan Oscillator which we have recently seen:



It might be foolish to think that the stock market could sell off during once of the most favorable seasonal periods for the stock on an annual basis. Plus it is true that overbought market often grow even more overbought. Eventually though all markets form a top and finally succumb to enough selling to see enter a bear market. I personally think that we will need to see another set of Hindenburg warnings within the next 30 days at even higher highs.

Next year could get interesting. The stock market is overbought and overvalued. The Schiller P/E ratio shows that the market has rarely been so overvalued



One thing that normally precedes a major market top is an inverted yield curve. We are certainly a long way from inverted at this time but we are moving rapidly in that direction:



RtS

[ReturntoSender]

InvestmentHouse Weekend Market Summary:

http://www.investmenthouse.com/weekendmarketsummary.htm

- Jobs report wows, but a nation starved for good economics is easily pleased.
- Stocks indecisive whether jobs news was good or bad, but closed higher for good measure.
- Irony's sense of humor: Administration claims jobs victory on the day it is announced China is now the world's largest economy.
- 'Tis the season . . . for seasonal workers.
- Gaining ground? Participation rate holds steady.
- Factory Orders down for third month.
- First BAC said card sales were down and consumer credit shows a huge drop in credit card use.
- Some turning a bit more bearish at year end just because. But little tax loss or profit taking selling this year as funds still play catch up.

Good news good news? Good news bad news? Was it good news? Market a bit indecisive after purportedly great jobs report, but the same leaders win out.

At 321K non-farm payrolls, jobs topped expectations by 40% while October and September were revised higher to 243K (from 214K) and 271K (from 256K), respectively. Best reading for jobs since January 2012. In addition, hourly wages rose 0.4% versus 0.2% expected (0.1% October), the best reading since 1/2013.

Truly prosperity has returned to America. Yes, you can detect just a hint of sarcasm. Definitely better news but as has been the case, better news in numbers but not the kind of improvement that is leading to a better standard of living in the US, certainly not back to the levels experienced prior to the recession. As Rick Santelli, the closest at guessing the number of all the CNBC pundits, put it, it took six years to get what should have been accomplished in 2 years.

It took six years to get this jobs print?

But Mr. Santelli's comments pertained only to the overall numbers. He did not have the benefit of looking at the details, those same details that each month show the top line is mostly illusory. Yes there are more jobs, but the jobs are not 'American' jobs, i.e. the kind of standard of living improving, breadwinner jobs that are the hallmark of all prior US recoveries. Indeed, strikingly, the US LOST 150K full jobs in a month creating 321K jobs. That tells you the quality of jobs right there.

Indeed, the market was uncertain of the meaning when the news hit. Stocks jumped, stocks sold, investors laughed, investors cried. It took awhile, and there was never any heavy selling, but stocks did move higher on the day. Again.

We felt that would be the case, i.e. the trend continuing after the news hit. Moreover, the same stocks in the lead continued to lead Friday after digesting the Jobs Report: chips (SOX), small caps (RUTX), and . . industrials (DJ30).

SP500 3.45, 0.17%
NASDAQ 11.32, 0.24%
DJ30 58.69, 0.33%
SP400 0.18%
RUTX 0.80%
SOX 1.00%

VOLUME: NYSE -5.5%, NASDAQ +3%

A/D: NYSE 1.1:1. NASDAQ 2:1

THE NEWS

Jobs for everyone! Well, not really. And not a permanent job either.

321K non-farm, best since 1/2012.

Unemployment: 5.8%, in line and steady from October.

Hourly wages: 0.4% versus 0.2% versus 0.1% October. Best since 1/2013.

Workweek: moved back up to 34.6 hours after falling to 34.5 hours in October.

U6 (underemployed added in): 11.4%, down from 12.7% in November 2013.

Those are the headlines, the trumpeted, heralded, bragged about headlines. 'Fate, it seems, is not without a sense of irony.' As all the President's men and the President himself took time from their busy golf schedules to proclaim victory, it was announced that China is now the world's largest economy, 2 years ahead of the schedule.

'Fate, it seems, is not without a sense of irony.' Morpheus from 'The Matrix'

Now, as the great Paul Harvey would say, the rest of the story.

321K jobs in a month. Compared to the prior six years that seems impressive. But, this is America. Used to be you had BETTER have 300K+ jobs a month in recovery or it was just an uptick.

Reagan: 23 months of 300K+ months of jobs. And we are not talking just 300K but 400K, 500K, 700K, and yes, even 1M PER MONTH.

Bush 1 and Clinton: 27 months of 300K+ over 10 years

1960's: 8 months of 300K+ with three over 400K.

Bush 2: That jobless recovery produced seven 300K+ jobs months.

Obama: 2. 2? In six years? But I suppose that makes sense given this 'great' economy as Jason Furman, head of the President's Economic Council called it on Tuesday has produced just three quarters of 4+% GDP growth in six years.

That's all we got? One G** damn hit?
You can't say G** damn on the air.
That's alright, nobody is listening anyway. - - 'Major League' 1989

Also consider the size of the labor force. In the 1980's it was 29% smaller, and thus 300K jobs was a MUCH LARGER proportion of jobs than today. There needs to be 500K jobs per month now to even come close to those levels.

Household survey versus Non-farms: flat jobs, temps not full-time.

The 300K+ jump in non-farm jobs didn't see a similar jump in jobs reported per the household survey used to calculate the unemployment rate.

Indeed, the household survey showed just +4K net jobs after taking out the 150K fulltime jobs LOST in November. 77K of the jobs were part-time.

What the hell? Are we relegated to creating copious amounts of low paying crap jobs here in the US?

This is Where the Jobs Are?

Friday morning just after the jobs release and before we could dig into the numbers I said likely the numbers reflected a large increase in seasonal jobs, i.e. retail. With Amazon and others attempting to avoid a fiasco such as last year and announcing they would hire tens of thousands of seasonal helpers, that was a pretty safe conclusion.

Indeed, 50K of the jobs were in retail. Leisure and hospitality 38K. Professional services (secretaries) 63K. Temps 22.7K.

Participation: Steady at 62.8%, matching the 1978 low. An additional 69K were 'not in the labor force.' More jobs we are told, but also more people leaving the workforce.

Match that with unemployment holding at 5.8%. Participation rate flat, 69K more out of the work force. Are there all of these new jobs? Sure there is some discrepancy between the two reports; always is. But this is not clearing up, and when viewed in conjunction with the other data, yet again you see the same old trends that show a weaker overall jobs market.

Jobs by age: 'No young workers, thank you.'

Grey boom: 55 and over moved to an all-time high employment level at 32.8M

Under 24 NNA (Need Not Apply): -169K in this demographic as again the younger generation is unwanted. Go ahead, get that school loan, load up on the debt, then go live a Mom and Dad's house while you work in a part time job at the Gap or as a secretary. Four years of college goes a long way.

The headlines trumpet the most jobs created in 2014 in the new millennium. 278K/month for the past three months. Yet, as we have discussed each month for now 6 years, the jobs created are low end that not even the younger workers can work. It may have taken six years to get to this level, but what level is it? Do we just look at the numbers and give the thumbs up? Are we that starved for good news that millions of low paying, low-skill, dead end, standard of living decimating jobs are good enough for America? It is not enough to say we have produced the jobs. We have to produce jobs that are commensurate to the US being and, now sadly, retaking, the number one spot in economics in the world.

Factory Order in a mini-recession.

October: -0.7% versus 0.2% expected versus -0.5% prior

October is typically a slowdown month. People save some money in order to prepare for the holiday spending spree. October economic reports thus often suffer the fate of existing at the wrong time of the year.

This October, however, followed two months of lower orders, September (-0.5%) and August (-10%). Holy cow, after surging into July, Factory Orders have reversed those gains.

Take out defense spending ant orders drop further, down to -1.2%.

Business investment: Not surprisingly, it is no better, coming in at -1.6%.
Oil's decline accounted for some of the drop as the price drop attributed for the lower cost of refinery feedstock orders. Some silver lining in there, but too few.

Consumer Credit: Student loans, no credit card debt, and Automobiles

Smallest growth rate since 11/2013 and the first 3-month decline since the great crash and the 2012 string that took QE3 to correct.

Student and auto loans account for 93% of the total growth.

Credit Cards? As BAC reported early last week, sales from credit cards are lower. Indeed in October they plummeted 66% year/year.

THE MARKET

CHARTS

Friday continued the recent trends, i.e. SP500 holding gains but going nowhere, SOX surging, RUTX continuing a solid recovery, NASDAQ recovering the Monday loss, and DJ30 continuing to plow upwards.

SOX: Another solid 1% advance capped a Tuesday to Friday run. SOX is riding a three week run from the breakout over the July and September peaks and thus far showing no signs of relenting.

RUTX: After the 2-day plunge to the 200 day SMA, RUTX is on a steady recovery, up Tuesday, Wednesday, and Friday. It is still below the November peak as well as the August and July peaks, but it is working steadily. Not flashy but doing the job.

DJ30: A good week, rising off the very flat lateral move over Thanksgiving. Steady trend up the 10 day EMA. Not spectacular, but steady. MACD is starting to lag the move some. Still moving up but now MACD is added to slower volume. Something to watch, but it is a year end move that doesn't need a lot of trade to work.

SP500: Up on the week and just cracking to a new closing high Friday. Still over the 10 day EMA, working slowly higher, and sliding along the upper trendline to its long uptrend channel from 11/2012.

NASDAQ: Up to close out the week, but unable to recapture the pre-Monday drop highs. Still solid but lacking help from some big names such as GOOG.

LEADERSHIP

Biotechs: Large and small enjoyed another solid week. PTCT, ACHN,

Techs: Outside of some big names continuing to lag, there is some great action. ACXM, ENPH (chips), SWIR, SWI, SIMO, OCLR, PLNR, BSFT.

Retail: GPS, LB, COST, ROST, TJX. Not all is steady: BIG, AEO, FIVE.

Internet: Showing signs last week. LLNW, TRLA, BIDU, NTES

MARKET STATS

NASDAQ
Stats: +11.32 points (+0.24%) to close at 4780.76
Volume: 1.724B (+2.95%)

Up Volume: 1.07B (+393.51M)
Down Volume: 679.28M (-350.72M)

A/D and Hi/Lo: Advancers led 1.94 to 1
Previous Session: Decliners led 1.51 to 1

New Highs: 155 (+35)
New Lows: 111 (+12)

S&P
Stats: +3.45 points (+0.17%) to close at 2075.37
NYSE Volume: 755M (-5.48%)

A/D and Hi/Lo: Advancers led 1.1 to 1
Previous Session: Decliners led 1.76 to 1

New Highs: 186 (+15)
New Lows: 134 (+18)

DJ30
Stats: +58.69 points (+0.33%) to close at 17958.79

SENTIMENT INDICATORS

VIX: 11.82; -0.56
VXN: 14.37; -0.61
VXO: 11.15; -0.79

Put/Call Ratio (CBOE): 1.03; -0.03

Bulls and Bears:

Bulls: 53.4% versus 56.5%. Backed off considerably after that month-long move toward 60.

Bears: 13.9% versus 13.8% versus 14.9%. Ticked up but still well off the 14.9% three weeks back.

Theory: When everyone is bullish and has put all their capital to work, where does the ammunition to drive the market come from? There is always new money to start a new year. After that is used will more money be coming? That is the question.

Bulls: 53.4%
56.5% versus 56.4% versus 55.5% versus 54.6% versus 47.0% versus 35.3% versus 37.8% versus 45.5% versus 47.5% versus 48.0% versus 52.5% versus 57.6% versus 56.1% versus 52.5%

Background: Last undercut 35%, the threshold for bullishness, in early June 2012.

Bears: 13.9%
13.8% versus 14.9% versus 14.8% versus 15.1% versus 16.3% versus 18.2% versus 17.3% versus 14.1% versus 15.1% versus 15.3% versus 15.2% versus 14.1% versus 13.3% versus 15.1% versus 16.2%

Background: Over 35% for bears is the threshold to be really be a good upside indicator. The best indication is when bears cross up through bulls as the two merge. Right now bulls are coming back down from the 60 level that has consistently marked market tops over the past two years. The rapid decline in progress is pushing the bulls/bears lines toward one another. Still far from a cross with bulls falling faster than bears are rising, but bears are warming up to the notion of market weakness.

OTHER MARKETS

Bonds (10 year): 2.31% versus 2.24% versus 2.29% versus 2.29% versus 2.22 versus 2.17% versus 2.21% versus 2.24% versus 2.26% versus 2.30% versus 2.31% versus 2.34% versus 2.35% versus 2.32% versus 2.34% versus 2.32% versus 2.35% versus 2.36% versus 2.36% versus 2.30% versus 2.38% versus 2.34% versus 2.33% versus 2.339% versus 2.33% versus 2.31%

Oil: 65.84, -0.97. So much for attempting to bounce. Monday was up but the rest of the week was a slow fade to a slightly lower closing low.

Gold: 1190.40, -17.38. After rallying to the 50 day EMA on Monday, pausing for a new move, the jobs data pushed gold back down from the 50 day EMA.

$/JPY: 121.42 versus 119.78 versus 119.81 versus 119.21 versus 118.36 versus 118.63 versus 117.58 versus 117.93 versus 118.27 versus 117.73 versus 117.96 versus 118.00 versus 116.98 versus 116.47 versus 116.29 versus 115.74 versus 115.53 versus 115.32 versus 114.86 versus 114.60 versus 114.98 versus 114.64 versus 113.60 versus 113.73 versus 112.32 versus 109.23 versus 108.89 versus 108.16 versus 107.83 versus 108.13 versus 108.17 versus 107.20 versus 106.88

Euro/$: 1.2289 versus 1.2379 versus 1.2313 versus 1.2383 versus 1.2473 versus 1.2452 versus 1.2509 versus 1.2477 versus 1.2442 versus 1.2386 versus 1.2549 versus 1.2543 versus 1.2532 versus 1.2455 versus 1.2520 versus 1.2486 versus 1.2432 versus 1.2480 versus 1.2421 versus 1.2455 versus 1.2387 versus 1.2486 versus 1.2456 versus 1.2493 versus 1.2525 versus 1.2610

MONDAY

The Thanksgiving hiccup is out of the way along with the most recent Jobs hype, SOX and RUTX along with DJ30 reasserted themselves, and the rest of the market recovered off the two days of selling. Now can they push the rally into Christmas?

Looks as if they can, but then there are stories from Barron's discussing NASDAQ's ascent once again toward 5,000. Barron's this weekend says that the approach is raising fears of another overpriced bubble destined to pop. Barron's notes, however, that this time it is different at the same time acknowledging when you say things are different they never really are different. Okay, I guess that is the same as saying it with your fingers crossed.

No doubt stocks are getting a bit lofty and as the weekly bulls show, there are fewer the past week even as stocks continue to trend higher. Perhaps part of the fear of flying crowd?

We are not saying that stocks will just keep running. No, we are playing a yearend move that may possibly continue into January. Not trying to make anything more out of it than that. We identified the season pattern (the 'pat' scenario) back in September and early October, said it could very well play out as your classic selloff into an October bottom then yearend run, and thus we were ready when October bottomed when many experts were saying not to trust the market. It was a pat seasonal play, right down to the pundits getting scared. The rebound ensued, and now it is pushed by the fund managers that allowed themselves to be scared out of the two big rallies of the year and must make up lost ground.

That is all. Nothing more than that. If we get more, great. Kind of a play off of the old 'those who expect nothing are never disappointed' line, but that is kind of how you have to look at the market. Be ready, take what it gives you, and if it wants to give a bit more, take that as well. There are too many times IT is taking and not giving, so when it is there, pony up.

That said, with SOX and RUTX still looking solid, we intent to keep playing the move. There are many stocks out there with big, long bases in place, foundations for new, strong moves. This weekend we are looking at several of those that are what we call turning the corner, i.e. coming up off of long bases, making that first run and testing it. If the test holds, they are good to go, and of course that is when we want to move in.

Maybe it is an oversimplification of what is going on, but it has worked and nothing has really changed. The employment data came, it rattled around the market for the morning, then the market moved higher. If the international shenanigans are kept to a minimum, the market has a good shot at closing out the year with a continuing of the current run off the October low.

Have a great weekend!

SUPPORT AND RESISTANCE

NASDAQ: Closed at 4780.76

Resistance:

Support:
The 20 day EMA at 4710
4650 is some support
The 50 day EMA at 4615
4610 is the September 2014 post-bear market high.
4566 is the lower gap point from late October
4486 is the July 2014 high
The 200 day SMA at 4383
4372 is the March 2014 high
The August low at 4321
4316 is the lower gap point from October 2014
4289 is the July 2000 recovery high
4277 is the March lower gap point
4246.55 is the January 2014 peak
4185, the May lower gap point
4131 is the March 2014 low
4104 is the lower gap point from 12/20/13
4070 is the series of highs from late November/early December

S&P 500: Closed at 2075.37

Resistance:
2076 is the all-time high from November
2085 is the December 2012 up trendline

Support:
2027 is the lower trendline from 11/2012
The 50 day EMA at 2017
2011 is the September prior all-time high
1991 is the July 2014 high
The 200 day SMA at 1942
1905 is the August 2014 low
1902 from early May was the intraday all-time high.
1897 is the prior all-time high hit in April 2014
1883.57 is the early March high.
The December and January highs at 1848
The April 2014 low at 1814
1808 is the November and December 2013 twin peaks
1775.22 is the October prior all-time high

Dow: Closed at 17,958.79

Resistance:

Support:
The 10 day EMA at 17,842
The 50 day EMA at 17,392
17,351 is the September 2014 all-time high.
17,152 is the mid-July post bear market high
17,068 is the early July 2014 peak
16,970 is the June 2014 former all-time high
16,946 is the June 2014 peak
The 200 day SMA at 16,818
16,736 is the penultimate all-time high from May 2014
16,632 is the April 2014 all-time high
16,589 is the December 2013 all-time high
16,506 is the March 2014 peak
16,341 is the May low
16,334 is the August 2014 low
16,257 is the January 2014 low
16,179 is the November 2013 peak.
15,739 is the December 2013 low
15,696 is the September 2013 peak
15,659 is the August 2013 peak

ECONOMIC CALENDAR

December 5 - Friday
- Nonfarm Payrolls, November (8:30): 321K actual versus 230K expected, 243K prior (revised from 214K)
- Nonfarm Private Payr, November (8:30): 314K actual versus 228K expected, 236K prior (revised from 209K)
- Unemployment Rate, November (8:30): 5.8% actual versus 5.8% expected, 5.8% prior
- Hourly Earnings, November (8:30): 0.4% actual versus 0.2% expected, 0.1% prior
- Average Workweek, November (8:30): 34.6 actual versus 34.6 expected, 34.5 prior (revised from 34.6)
- Trade Balance, October (8:30): -$43.4B actual versus -$42.0B expected, -$43.6B prior (revised from -$43.0B)
- Factory Orders, October (10:00): -0.7% actual versus 0.2% expected, -0.5% prior (revised from -0.6%)
- Consumer Credit, October (15:00): $13.2B actual versus $16.5B expected, $15.5B prior (revised from $15.9B)

December 9 - Tuesday
- Wholesale Inventories, October (10:00): 0.2% expected, 0.3% prior
- JOLTS - Job Openings, October (10:00): 4.735M prior

December 10 - Wednesday
- MBA Mortgage Index, 12/06 (7:00): -4.3% prior
- Crude Inventories, 12/06 (10:30): -3.689M prior
- Treasury Budget, November (14:00): -$59.0B expected, -$135.2B prior

December 11 - Thursday
- Initial Claims, 12/06 (8:30): 295K expected, 297K prior
- Continuing Claims, 11/29 (8:30): 2350K expected, 2362K prior
- Retail Sales, November (8:30): 0.4% expected, 0.3% prior
- Retail Sales ex-auto, November (8:30): 0.2% expected, 0.3% prior
- Export Prices ex-ag., November (8:30): -0.9% prior
- Import Prices ex-oil, November (8:30): -0.2% prior
- Business Inventories, October (10:00): 0.3% expected, 0.3% prior
- Natural Gas Inventor, 12/06 (10:30): -22 bcf prior

December 12 - Friday
- PPI, November (8:30): -0.1% expected, 0.2% prior
- Core PPI, November (8:30): 0.1% expected, 0.4% prior
- Michigan Sentiment, December Preliminary (9:55): 89.5 expected, 88.8 prior

[ReturntoSender]

From Briefing.com: Weekly Recap - Week ending 12-Dec-14Dow -315.51 at 17280.83, Nasdaq -54.57 at 4653.60, S&P -33.00 at 2002.33

The major averages ended the week on a broadly lower note with the S&P 500 registering its first weekly decline in more than two months. The benchmark index fell 1.6% to widen its weekly loss to 3.5% while the Nasdaq Composite (-1.2%) displayed relative strength, but still lost 2.7% for the week.

Last evening, the House of Representatives passed a $1.1 trillion spending bill to fund the government through September, but that news took the back seat to today's main event, which took place in the oil trading pits with other markets responding to the happenings there.

Overnight, the International Energy Agency issued its fourth global demand forecast cut in five months, which kept the pressure on crude oil ($57.80/bbl). The energy component ended the pit session lower by 3.7% for the day and lost nearly 11.0% for the week.

Furthermore, the decline widened oil's slide from the mid-year high of $107.73/bbl to 46.3%, thus rekindling concerns about how this drop will be handled by energy companies and other entities that rely on a higher price of the commodity. This was most notable in the energy sector (-1.9%), which ended the week lower by 7.8%.

Of course there is another side to lower oil prices, and the benefit that consumers are expected to receive from cheaper gasoline did not go unnoticed. However, the broader implications of the big plunge in crude price caused a reduction in overall risk exposure. Understandably, the consumer discretionary sector (-0.6%) was a spot of relative strength with retailers and restaurant names showing strength. The SPDR S&P Retail ETF (XRT 92.28, +0.57) gained 0.6%.

However, the remaining cyclical sectors ended in-line with or behind the broader market. Equities tried to stage a comeback from their opening lows with a near-record high reading of the Michigan Sentiment Index providing a short-lived confidence boost that evaporated over the next hour. A fresh round of selling in the afternoon sent the major averages to new lows into the close.

Outside of energy, commodity-linked sectors like industrials (-1.8%) and materials (-2.8%) bore the brunt of the pressure while influential groups like financials (-2.0%) and technology (-1.5%) did little to stem the bleeding.

Among industrials, transport stocks held up relatively well with the Dow Jones Transportation Average losing 'only' 0.9%, but defense contractors kept the sector behind the broader market. The PHLX Defense Index lost 2.9% with Dow components Boeing (BA 120.77, -2.60) and General Electric (GE 24.89, -0.52) each tumbling 2.1%.

Elsewhere, the technology sector ended in-line with the market. Apple (AAPL 109.85, -1.77) and IBM (IBM 155.38, -5.69) lost 1.6% and 3.5%, respectively, with the latter weighing on the Dow. On the upside, Adobe Systems (ADBE 76.06, +6.32) surged 9.1% after reporting better than expected results.

Shares of Adobe helped the Nasdaq Composite end a bit ahead of the broader market, but the index was also kept from sliding deeper into the red by the outperformance of biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 306.10, -3.95) lost 1.3% after making a brief intraday appearance in the green. As for health care, the sector ended just a step ahead of the market.

Safe haven demand gave a boost to Treasuries with the 10-yr yield ending lower by eight basis points at 2.10%, which represented a 21-basis point decline for the week.

Also of note, the CBOE Volatility Index (VIX 21.82, +1.74) spiked almost 9.0% to its highest level since late October as participants showed demand for downside protection.

The sell-off invited above average participation with more than 940 million shares changing hands at the NYSE floor.

Economic data included PPI and Michigan Sentiment:

Producer prices declined 0.2% in November after increasing by 0.2% while the Briefing.com consensus expected a decline of 0.1%
As expected, energy prices fell for the fifth consecutive month with total costs declining 3.1% in November, which followed a 3.0% decline in October
Gasoline prices dropped 6.3%
After increasing 1.0% in October, food prices declined 0.2%
Excluding food and energy, core PPI was unchanged in November after increasing 0.4% while the consensus expected an increase of 0.1%
The University of Michigan Consumer Sentiment Index increased to 93.8 in the preliminary December reading from 88.8 while the Briefing.com consensus expected an increase to 89.5
The December reading marked the highest point in consumer sentiment since the index reached 96.9 in January 2007
Strong improvements in the labor market and lower gasoline prices offset a slightly downward trending stock market, which helped boost sentiment

On Monday, the Empire Manufacturing Index for December (Briefing.com consensus 14.0) will be released at 8:30 ET while November Industrial Production (consensus 0.7%) and Capacity Utilization (consensus 79.3%) will cross the wires at 9:15 ET. The NAHB Housing Market Index for December (expected 58) will be reported at 10:00 ET and the Net Long-Term TIC Flows for October will cross at 16:00 ET.

Week in Review: All Eyes on Crude

The stock market slumped on Monday as the S&P 500 ended lower by 0.7% with seven sectors in the red. The price-weighted Dow (-0.6%) finished a little ahead of the benchmark index while the Nasdaq (-0.8%) and Russell 2000 (-1.3%) lagged. Equity markets around the world started the new week on a mostly lower note. However, continued hopes for stimulus from the PBoC sent China's Shanghai Composite higher by 2.8% to extend its gain over the past month to 25.0%. The advance took place after the latest trade data showed a better than expected surplus of $54.47 billion, which resulted from a 6.7% drop in imports (expected +3.5%). Hopes for additional stimulus were also present in Europe, but the key indices there could not stay out of the red amid weakness in growth-sensitive listings. Fittingly, cyclical sectors were responsible for the weakness in the U.S. with energy (-3.9%) taking it on the chin amid another decline in crude oil.

The major averages ended the Tuesday session on a mixed note after starting the day with sharp losses. The Russell 2000 and Nasdaq Composite paced the rebound, climbing 1.7% and 0.5%, respectively, while the S&P 500 settled just below its flat line. Equity futures were pressured in the morning after the overnight session featured a 5.4% plunge in China's Shanghai Composite, which endured its biggest one-day decline since 2009. The dive occurred after the index soared 25.0% in a month and was catalyzed by the People's Bank of China taking measures to tighten liquidity conditions. The central bank fixed the USDCNY exchange rate at its highest level since July and imposed stricter collateral rules on short-term loans. The cautious sentiment carried over to the European session with Greece's ASE Index sinking 12.8% while the country's 10-yr yield surged 91 basis points to 7.95% after Prime Minister Antonis Samaras called for a presidential election. This took place right after the country was granted a two-month extension to meet its bailout requirements and the early indications suggest the election could put the Coalition of the Radical Left (Syriza) in power, which rattled markets. Adding insult to injury, Germany reported a 3.1% decline in November imports, which was the biggest drop in almost two years. Despite the global weakness, U.S. equities did not spend much time near their early lows. In fact, the Russell 2000, which led the rebound, marked its low five minutes into the session and never looked back.

Equities ended the Wednesday session on a broadly lower note. The S&P 500 lost 1.6% with all ten sectors ending in the red while the Russell 2000 (-2.1%) underperformed. For the second day in a row, the major averages slumped at the start, but unlike Tuesday, the key indices could not stage a comeback on Wednesday with a big drop in the energy sector (-3.1%) keeping the market under pressure throughout the session. The energy sector widened its fourth-quarter loss to 15.9% with crude oil settling lower by 4.5% at $60.92/bbl. The slide took place after China reported its lowest year-over-year growth in CPI (1.4%) and OPEC cut its demand forecast. In addition, crude stockpiles showed an unexpected build.

Stocks rebounded from Wednesday's broad-based weakness on Thursday, but the key indices slipped on an oil patch ahead of the close as WTI crude fell to $60/bbl. The S&P 500 added 0.5% after being up as much as 1.5% intraday. The Thursday rebound likely included a short covering element as the key indices rallied through the first hour and respected narrow ranges into the afternoon. However, selling into the close pressured the indices from their highs. Investors received a pre-market confidence boost from a better than expected Retail Sales report and a larger than expected decline in weekly initial claims. In turn, the data helped the Dollar Index (88.59, +0.33) rebound from three consecutive declines. However, the dollar strength wasn't entirely due to economic data as the greenback entered the morning with a solid overnight gain against the yen. The dollar/yen pair climbed to 119.00 (+1.1%), and retraced most of its decline from Wednesday.

Index Started Week Ended Week Change % Change YTD %
DJIA 17958.79 17280.83 -677.96 -3.8 4.2
Nasdaq 4780.75 4653.60 -127.15 -2.7 11.4
S&P 500 2075.37 2002.33 -73.04 -3.5 8.3
Russell 2000 1182.43 1152.45 -29.98 -2.5 -1.0

The Technology sector performed in-line with the broader market today. The S&P 500 Information Technology Index closed down -1.6% while the S&P closed down 1.6%. In a broader Tech Sector view, the top performing industry group was the Software Industry (-0.4%), while IT Services (-2.8%) led all decliners in the sector.

The Software Industry's performance was led primarily by Adobe (ADBE 76.06 +6.32). The stock rose 9% following its report of strong Q4 financial results after the close yesterday, beating average analyst estimates on EPS and reporting revenues in-line with consensus. One of ADBE's most important metrics, cloud subscription additions, reached 644k, also above expectations, which were approximately 530k.

In addition to the afore mentioned bullish earnings results, the ADBE announced it has entered into a definitive agreement to acquire Fotolia, a marketplace for royalty free photos, images, graphics and HD video. The company plans to integrate Fotolia into its Creative Cloud, providing members with access to purchase over 34 million images and videos.

The combination of positive news stories led to ADBE receiving some positive analyst notes. Jefferies reiterated its Buy rating for ADBE, raising its price target to $90 from $83. UBS also maintained its Buy rating on the stock, raising its price target to $87 from $85.

Here are some other top performing large caps in the tech sector:

LinkedIn (LNKD 219.90 +2.54) - No news to support the move, but the stock rose 1.2% while the broad market tumbled.

Twitter (TWTR 37.10 +0.40) - Up 1.1% on no company specific news today, yesterday though, Topeka noted that several major events may potentially be driving up material engagement on the site. These events include the Ebola crisis, Midterm elections in the US, Cyber shopping, and the Ferguson, MO trial, among others. They also noted that given
TWTR's size, it is unlikely that these five events collectively will drive up MAUs enough to overshoot 4Q average analyst estimates.

Top decliners in the sector:

Mastercard (MA 84.13 -3.56) - No news to support 4% fall today.

Citrix Systems (CTXS 60.00 -2.31) - The stock fell 3.7% on no company specific news.

Intl Business Systems (INTC 155.38 -5.69) - No news behind 3.5% drop.

There were also a few interesting IPOs today worth noting.

Hortonworks (HDP 26.38) is the developer of Hadoop, a data management tool for enterprises. Hortonworks is seeking to advance the market adoption of Hadoop and provide enterprises with a new data management platform that enables them to harness the power of big data. The company's stock priced at $16 per share this morning, leading to a 64% rally on its opening trading day.

New Relic (NEWR 33.99) has developed a proprietary Software Analytics suite of products. The line of products, which are cloud-based, enable organizations to collect, store, and analyze enormous amounts of software data in real-time. This allows for optimal performance analysis helpful in making data-driven decisions. The company's stock had a stellar opening day rising 47% from its original pricing at $23.
5:34 pm This week's biggest % gainers/losers (:SCANX) : The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

Healthcare:CALA (29.85 +182.4%),BLUE (91.28 +104.16%),SGMO (16.53 +45.77%),ABIO (1.02 +41.55%),MDGN (5.12 +38.38%),TGTX (18.25 +32.25%),CLDN (17.25 +32.18%),CEMP (19 +31.76%),SRNE (5.8 +30.34%),CBST (96.31 +29.52%),OTIC (36.72 +28.93%),CCXI (5.6 +28.15%),ALDR (25.27 +25.78%),KITE (54.79 +25.55%),NVDQ (17.58 +25.21%)
Industrials:RVLT (1.26 +28.57%)
Consumer Discretionary:ODP (7.79 +23.26%)
Information Technology:LEDS (0.68 +26.13%)
Energy:FRO (2.25 +66.67%),LEI (0.19 +45.77%)

This week's top 20 % losers

Healthcare:MEIP (4.2 -32.8%),NYMX (0.33 -32.41%)
Materials:ANV (0.74 -46.57%)
Industrials:OPTT (0.65 -34.3%)
Consumer Discretionary:WTSL (0.07 -75.05%),CONN (17.44 -50.52%),DLIA (0.01 -38.62%)
Information Technology:DRIV (16.89 -33.79%),ISNS (2.73 -31.75%)
Financials:CTRE (12.26 -32.53%)
Energy:IVAN (0.51 -46.88%),MPO (1.07 -42.16%),GRH (0.55 -41.49%),EOX (0.97 -38.21%),REN (1.1 -37.14%),SARA (0.16 -35.52%),NKA (2.88 -31.91%),FST (0.36 -31.03%),ECR (5.56 -29.53%)
Consumer Staples:RCPI (0.15 -30.36%)

3:29 pm Earnings Preview for the week of December 15 - 19 (:SUMRX) : Of the companies reporting earnings for the week of December 15 - 19 some of the bigger names include:

Monday: After Hours - PAY, FCEL

Tuesday: Pre Market - NAV, DRI, FDS
After Hours - HEI

Wednesday: Pre Market - FDX, GIS, JOY, EGRX
After Hours - ORCL, JBL, MLHR, APOG

Thursday: Pre Market - ACN, RAD, CAG, WOR, SAFM, SCHL, WGO, BRLI, MCS, NEOG
After Hours - NKE, CTAS, PIR, AIR, RHT

Friday: Pre Market - KMX, BBRY, PAYX, FINL

12:49 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers
ADBE (76.72 +10.01%): Beat Q4 consensus estimates by $0.06, reported revs in-line; Acquires Fotolia for approx $800 mln in cash; Price tgt raise at RBC Capital Mkts, FBR, others.CAJ (32.95 +1.67%): Disclosed an investor update with reaffirmed FY14 projections and increased dividend news.SPLS (16.57 +2.89%): Upgraded to Buy from Underperformat BofA/Merrill.
Large Cap Losers
EMR (58.44 -4.7%): Heard downgraded to Hold from Buy at Deutsche Bank.CTXS (60.61 -2.73%): Initiated with a Underweight at Piper Jaffray; tgt $63.SHW (246.96 -2.85%): Co issued FY14 sales at low end of previous range; guided FY15 ~in-line.
Mid Cap Gainers
TLM (4.99 +35.23%): Multiple reports out this morning that Repsol (REPYY) may be close to a deal to acquire TLM.CTRP (46.36 +7.76%): Positive mention at Chinese firm 86 Research suggesting insiders are accumulating shares.GPRO (62.57 +4.2%): Upgraded to Overweight from Neutral at JP Morgan.
Mid Cap Losers
SSTK (62.17 -13.26%): Down following Adobe's (ADBE) acquisition of Fotolia announced last night.
ESL (103.11 -12.27%): Reported Q4 (Oct) earnings of $1.82 per share, excluding non-recurring items, $0.09 worse than the Capital IQ Consensus Estimate of $1.91; revenues rose 6.7% year/year to $548.1 mln vs the $554.38 mln consensus.
WIN (8.57 -8.64%): Unfavorable mention on Thursday's Mad Money; Co announced that Tony Thomas has been appointed President and CEO effective immediately; Company notes they remain committed to REIT spinoff.

12:35 pm JDS Uniphase: Sandell Asset Management issues statement after the release of final voting results from the JDSU's 2014 Annual Meeting of Stockholders, 'results should be a wake-up call to the Board of Directors ' (JDSU) : "Sandell is encouraged by the support it received from JDSU stockholders, who together voted approximately 57.9 million shares 'AGAINST' current Director Martin Kaplan, or more than 34% of the shares voting at the Annual Meeting. Furthermore, Mr. Kaplan was elected with only 47% of total outstanding shares voting in his favor; approximately 35.4 million shares either voted to abstain or were broker non-votes. The fact that Sandell was able to generate such strong support without actively soliciting proxies from stockholders speaks in our view to the profound frustration of the investor base to the entrenchment actions taken by this Company's Board of Directors (the 'Board') and its refusal to conduct a more fulsome process to unlock stockholder value."

12:13 pm Stocks/ETFs that traded to new 52 week highs/lows this session- New lows (107) outpacing new highs (16) (:SCANX) : Stocks that traded to 52 week highs: ADBE, BMS, CY, DAL, ED, ETR, HCN, HCP, HTA, ODP, SHO, SO, SPLS, TTWO, UAL, VTR

Stocks that traded to 52 week lows: ABEV, AM, AMD, APA, APC, AU, BBEP, BBVA, BHP, BP, BSMX, BTU, CAM, CBI, CCJ, CHK, CIE, CIG, CLR, CNQ, COP, CVE, CVX, CX, CXO, CZZ, DDD, DVN, ECA, EPE, ERF, ESV, FCX, FLR, FLS, FSLR, FTI, GGB, GME, HAL, HES, HFC, HP, HSBC, IBM, JEC, JOY, KBR, KLXIV, KOS, LINE, LYB, MBT, MDU, MRO, MT, MUR, NBL, NBR, NE, NOV, NRG, OKS, OXY, P, PAA, PAGP, PBR, PBR.A, PSX, PTEN, PWR, PXD, QEP, RDC, RDS.A, RES, RGP, RIG, RIO, SBS, SDRL, SFUN, SID, SLB, SMFG, SPF, SPN, SPWR, STO, SU, TCK, TOT, TS, UPL, VALE, VALE.P, VIP, VMW, VZ, WFT, WLK, WLL, WPX, WPZ, YNDX, ZU

ETFs that traded to 52 week highs: none

ETFs that traded to 52 week lows: AFK, AMJ, BJK, BNO, DBC, DIG, ECH, EEB, EWA, EWM, EWW, EWY, EWZ, FXA, FXC, GSG, HYG, IEO, IGE, ILF, IXC, IYE, JNK, KOL, OIH, OIL, PBW, RSX, SEA, SGG, SLX, UGA, UHN, USCI, USO, XES, XLE, XME, XOP

Note: To reduce the list of stocks making 52 week highs/lows to a manageable size we have filtered out stocks below $2 bln in market cap and below 1 mln average volume. Without this filter 81 stocks made 52 week highs and 542 stocks made 52 week lows.

8:31 am Marvell increases share repurchase authorization by $250 mln; cumulative total authorized now amounts to $3.25 bln (MRVL) : Through November 1, 2014, Marvell had approximately $213 million available in the share repurchase program. Under the share repurchase program and through the end of the third quarter of fiscal 2015, Marvell has repurchased and retired over 220 million shares or about 30 percent of the outstanding shares.

[ReturntoSender]

InvestmentHouse - Stocks and Oil Fall Together (Weekend Newsletter)

http://www.investmenthouse.com/weekendmarketsummary.htm

- Stocks and oil fall together. Weaker world economy? Increased supply? Does it matter?
- Yearend rally is off the rails, but leaders continue holding the line, holding out the chance for a little Christmas magic.
- IEA cuts its oil forecast as well.
- Michigan Sentiment surges as citizens accept lower growth, lower standards of living as the new normal.
- Looking for indications of a new bounce attempt. Some indicators gelling, but still has to show it.

Stocks sell again, oil blamed, but low oil historically is good for economies, good for stocks.

Last week the one thing we felt could derail the yearend rally did just that: international issues. It started with Mario Draghi and the ECB doing nothing in terms of QE. It worsened when the PBOC tightened liquidity. It continued with oil plunging, again, and pundits speculating it was all about a slower world economy.

Friday oil took another $2+ hit and stocks suffered a 1.2% to 1.8% kick per the stock indices. Oil is blamed, understandably so, given it has accounted for virtually all of the US economic growth in the recovery and because the drop is viewed as a lack of world demand, ominous for economic output and thus earnings.

Of course as touched upon Thursday, is it really lack of demand or a massive new amount of supply causing the decline? No question without the US entry as a top crude producer oil prices would be higher. Then again, without the US entry into the market the US economy would not be as strong as it is and the entire world economics would be slower and thus perhaps oil prices lower via lack of demand. Interesting give and take.

If it is oil, it is just a recent phenomena. Oil put in its last high in June and has dropped from 108 to 58 in a steady, sharp slide. Stocks, on the other hand, have rallied with just one big hiccup (October), and just this past week started to sell. If it is oil causing stock weakness, it is something the market just woke up to.

Oil or just the market having gas? To borrow a phrase from former Secretary of State Hillary Clinton, what difference does it make? Can you imagine the CEO of GM after people died from a known issue with an electrical switch saying 'what difference, at this time, does it make?' Can you imagine how she would have been strung up by the media, Congress, the public? Of course it does matter because it can continue if not corrected, but that is another story and, apparently, another election to come. After Thursday, I would suggest Elizabeth Warren will have a lot to do with who is the democratic nominee in 2016 as the democrats push aside Clinton again. But I digress.

Either way stocks were off sharply again Friday, ending a week that saw sharp declines, attempts at reversals, but not enough to overcome the sellers. Perhaps just too much upside off of the October low, perhaps there are economic issues bubbling up under the surface that the economic data as reported is not picking up. In any event, the holiday rally is off the rails and the best it can hope for now is a pullback to next support and then a more traditional Christmas rally, i.e. from Christmas into the first few days of 2015.

SP500 -33.00, -1.62%
NASDAQ -54.56, -1.16%
DJ30 -315.51, -1.79%
SP400 -1.35%
RUTX -1.24%
SOX -1.73%

VOLUME: NYSE +21%. NASDAQ +1.1%. Some serious distribution on the NYSE indices as volume spiked on sharp selling. Distribution means dumping of stocks. 4 distribution sessions in the past 10 is fairly significant and suggests continued pressure on stocks.

A/D: -3.8:1 NYSE, -2.5:1 NASDAQ. Pretty strong but not as strong as the Wednesday -4 and -5:1.

Support was the issue Friday, and for several of the indices that next level did not hold. On others it did. Those that did break support are already at the next.

Leadership took hits but if you look at our positions, for the most part they remain in solid position. That seems surprising to many given the strength of the selling, but it is showing that some groups are simply using the selling to test and set up for a new move. As long as there are leaders doing just that, the market has the foundation to bounce after it finds the key support. The 38% Fibonacci retracement of the October move is getting closer, and if the upside still has momentum that should provide some kind of bounce.

It doesn't hurt that the VIX contracts are entering backwardation, that situation where the near term contract is valued higher than longer term contracts. When that occurs the market has bottomed over the past few years. When that lines up with a solid support level in the indices, the bounces are solid.

Friday was basically play management. We took some gain on DECK as it tripped the initial target. We closed STX, SNDK, and ACXM with trailing stops, and also closed VICR. Most of our positions, however, held up very well on the day and on the week. As noted, if leadership holds good support and good patterns, the ability to post up and give us an end of year run remain.

THE NEWS

November PPI fell 0.25 thanks to a 3.1% energy and 7.7% fuel decline. The core was 0.0% when energy was stripped out. Deflation? Hardly. Lower prices in fuel is a good thing for economies. Plenty of other items are not deflating but are inflating in price. There is concern that iron ore and other metals prices are floundering lower as well. With China no longer buying to hoard in addition to building ghost cities, the demand just isn't what it was.

IEA lowered its oil outlook for 2015 for the fourth time in as many months. Dropped daily demand expectations by 230K/bbl per day down to 900K. Demand down, supply up. Perfect storm for oil prices.

Are the sentiment measures correct?

Michigan Sentiment, Preliminary surges to the highest since January 2007 (96.9). 93.8 blasted past expectations (89.5). Wages may be stagnant at best (real median incomes are 5% lower than 2007 and HIS Global Insight says it will take until 2019 to hit new highs!), but the consensus reports (Conference Board, Michigan Sentiment) show a more sanguine, even enthused, consumer.

Is this the 'new normal' as well, i.e. satisfied with less economic growth (because we don't remember what real growth is like) and thus satisfied with lower levels of living standards?

Frightening when you think of the parallels of 'settling,' e.g. willing to allow and accept complete government intrusion into every aspect of our lives. I have not heard one person complain of the passage of the appropriations bill Thursday night in the House that codified the NSA's ability to gather all of our electronic communications for use as it sees fit. Give us our iPhones, our student loans, our subprime auto loans, our false promises of affordable care, and we don't care. Disturbing.

THE MARKET

CHARTS

SP500: Broke the lower trendline and the 50 day EMA Friday but held the 50 day SMA at the close. Still 22 points over the 38% Fibonacci retracement of the October surge (1980), but at support from the 50 day and the late July, August peaks. Wasn't showing any signs of slowing as of Friday, but it is getting in the zone and now start looking for some doji at these prior highs to see if the sellers are losing momentum.

NASDAQ: Down on the week but not gutted. Gapped lower Friday but holding over the 50 day EMA and well over the late October gap point at 4600ish. So far a very normal test, though well, well above the 38% Fibonacci retracement of the October run (4545). Closer support at the 50 day (4631) down to 4600.

DJ30: Two big dives lower Wednesday and Friday left DJ30 at the 50 day SMA and September prior all-time high. Good place to hold but could give up some more ground to the 38% Fibonacci retracement (17,176; closed at 17,280). As with SP500, not showing any slowing as of the Friday close, but time to start looking for bottoming signals. A doji with tail would be nice.

RUTX: Gapped downside to the 200 day MA, closing at that level. This is the bottom of the 5 week trading range, still holding the range despite all the selling. Okay, it will show the next move from here. Duh.

SOX: As with NASDAQ, a down week but a rather normal fade. Undercut the 20 day EMA Friday, still well over the 38% Fibonacci retracement (645; closed at 671). 656 is the next real support from the November gap and the September peak.

LEADERSHIP:

Talking about leadership on a week when the large cap indices lost 4% may seem strange, but was is likely stranger to most is that almost all of our plays held near support, basically ignoring the selling or using it to make modest, orderly tests of recent moves.

Now perhaps these stocks are simply the last holdouts that will be taken out and shot, but they are holding up well in the selling. They of course have to continue holding their patterns, but if there is another break lower where the indices test that next support and rebound, they will be in great shape to continue their upside moves after some nice tests.

Plays holding up in lots of market selling:

Biotech: ACHN, CLDX, EXAS, PETX, PTCT, XON

Electronics: BSFT, ENPH, OCLR, SIMO

Tech/Software: AAPL, FLTX, ZBRA

Retail: BWLD, CRTO, EVLV

Internet: LLNW, TRLA

Miscellaneous: CMLS (radio), NMBL, SWIR (telecom), TREX (building materials)

Some leaders had issues: STX, SNDK. When you have that kind of selling something has got to give. Mostly, however, the leadership that had the good patterns, the sound bases that show accumulation over time, held up even after a week of pretty intense downside in the stock indices.

MARKET STATS

NASDAQ
Stats: -54.57 points (-1.16%) to close at 4653.6
Volume: 1.834B (+1.11%)

Up Volume: 507.57M (-772.43M)
Down Volume: 1.36B (+780.41M)

A/D and Hi/Lo: Decliners led 2.46 to 1
Previous Session: Advancers led 1.52 to 1

New Highs: 57 (-36)
New Lows: 190 (+74)

S&P
Stats: -33 points (-1.62%) to close at 2002.33
NYSE Volume: 1B (+21.3%). Volume jumping on the selling as stocks are dumped.

A/D and Hi/Lo: Decliners led 3.8 to 1
Previous Session: Advancers led 1.37 to 1

New Highs: 52 (-49)
New Lows: 360 (+147). Getting more extreme but not there yet. Need to see 500+.

Stats: -315.51 points (-1.79%) to close at 17280.83

SENTIMENT INDICATORS

VIX: 21.08; +1. VIX is close to backwardation right now, i.e. when the near term contract as a percentage of the next month's contract reaches a value historically greater than normal. When that has occurred over the past couple of years the market was near a bottom. Not there yet, but another shakeout in the indices could do the trick.
VXN: 22.51; +2.11
VXO: 20.89; +2.61

Put/Call Ratio (CBOE): 1.13; +0.14

Bulls and Bears:

Bulls: 51.5% versus 53.4% versus 56.5%. Still backing off from near 60%, a red flag top indicator for the market the past few years. Never made 60% on this trip so after a bit of backtracking the market would be in position to move higher again.

Bears: 14.8% versus 13.9% versus 13.8% versus 14.9%. Bounced back up to the level hit a month back. Bears are stubborn, but they usually move less than the emotions on their sleeve bulls.

Theory: When everyone is bullish and has put all their capital to work, where does the ammunition to drive the market come from? There is always new money to start a new year. After that is used will more money be coming? That is the question.

Bulls: 51.5%
53.4% versus 56.5% versus 56.4% versus 55.5% versus 54.6% versus 47.0% versus 35.3% versus 37.8% versus 45.5% versus 47.5% versus 48.0% versus 52.5% versus 57.6% versus 56.1% versus 52.5%

Background: Last undercut 35%, the threshold for bullishness, in early June 2012.

Bears: 14.8%
13.9% versus 13.8% versus 14.9% versus 14.8% versus 15.1% versus 16.3% versus 18.2% versus 17.3% versus 14.1% versus 15.1% versus 15.3% versus 15.2% versus 14.1% versus 13.3% versus 15.1% versus 16.2%

Background: Over 35% for bears is the threshold to be really be a good upside indicator. The best indication is when bears cross up through bulls as the two merge. Right now bulls are coming back down from the 60 level that has consistently marked market tops over the past two years. The rapid decline in progress is pushing the bulls/bears lines toward one another. Still far from a cross with bulls falling faster than bears are rising, but bears are warming up to the notion of market weakness.

OTHER MARKETS

Bonds (10 year): 2.08% versus 2.18% versus 2.16% versus 2.22% versus 2.26% versus 2.31% versus 2.24% versus 2.29% versus 2.29% versus 2.22 versus 2.17% versus 2.21% versus 2.24% versus 2.26% versus 2.30% versus 2.31% versus 2.34% versus 2.35% versus 2.32% versus 2.34% versus 2.32% versus 2.35% versus 2.36% versus 2.36% versus 2.30% versus 2.38% versus 2.34% versus 2.33% versus 2.339% versus 2.33% versus 2.31%

Soaring to a new closing high on this move. Only the early October intraday spike is higher.

Oil: 57.81, -2.14.

Gold: 1222.50, -3.10. Tested the Tuesday surge higher, still trying to keep the rebound off the early November low going but facing serious resistance.

$/JPY: 118.75 versus 119.07 versus 118.12 versus 119.76 versus 120.55 versus 121.42 versus 119.78 versus 119.81 versus 119.21 versus 118.36 versus 118.63 versus 117.58 versus 117.93 versus 118.27 versus 117.73 versus 117.96 versus 118.00 versus 116.98 versus 116.47 versus 116.29 versus 115.74 versus 115.53 versus 115.32 versus 114.86 versus 114.60 versus 114.98 versus 114.64 versus 113.60 versus 113.73 versus 112.32 versus 109.23 versus 108.89 versus 108.16 versus 107.83 versus 108.13 versus 108.17 versus 107.20 versus 106.88

What a move over the past month. Taking a breather last week, testing the 20 day EMA, but the trend is still in place.

Euro/$: 1.2462 versus 1.2389 versus 1.2439 versus 1.2366 versus 1.2318 versus 1.2289 versus 1.2379 versus 1.2313 versus 1.2383 versus 1.2473 versus 1.2452 versus 1.2509 versus 1.2477 versus 1.2442 versus 1.2386 versus 1.2549 versus 1.2543 versus 1.2532

MONDAY

December expiration is this week and that precedes the shortened Christmas week. Christmas falls on Thursday this year and that means, according to the NYSE rules, Friday will be a half day session. No one will be there, but it will be a half day session because the market cannot be closed for more than 1.5 days during a normal trading week.

So much for the vagaries of the NYSE calendar rules.

The indices closed hard Friday, meaning they closed with big losses and at session lows. No signs of slowing such as bouncing up off the lows, showing doji with tails, etc. As noted, most are still well above the 38% Fibonacci retracement, but many are also at nearer potential support levels. Thus you start watching for indications they are trying to use these levels as support, i.e. selling lower then reversing off those lows to a doji, or gapping lower then rebounding and holding the gains. That action suggests the sellers are losing their grip, that the buyers are starting to move back in after the selling.

Also watch how stocks that have not broken down perform. Biotechs, drugs, retail, semiconductors, leading techs. If they hold their patterns/support, when combined with index action described above, the rebound probability jumps.

Energy is worth watching as well. It has been hammered. When buyers sense it is time, they move into leaders that held up and some of the worst hit sectors as a value perception play.

This move is at the point it needs to show a rebound if the rally, and I am not talking about the yearend rally now but the overall rally, is going to hold. December is usually up. It is clearly not thus far. When December is negative it tends to speak to how the market performs the following year. Thus, for the upside, you want to see this selling start to abate pretty soon and a continued move upside return.

We go into this week cautious of course but willing to let plays that are holding patterns and support work. It appears that when the international issues hit the market some decided to avoid the Christmas rush and book some gains. Again, we are looking at how the stocks that held the line continue to perform and for any signs of a bottom forming such as that further selloff to close support and then bounces to close higher off those lows. As we saw last week that is not always the all clear, but it shows the buyers are trying to step in, and if you string a couple of those sessions together back to back, that probabilities climb sharply.

Have a great weekend!

SUPPORT AND RESISTANCE

NASDAQ: Closed at 4653.60

Resistance:
4782 is the November 2014 peak

Support:
4650 is some support
4631 is the October 2014 upside gap point
The 50 day EMA at 4632
4610 is the September 2014 post-bear market high.
4566 is the lower gap point from late October
4486 is the July 2014 high
The 200 day SMA at 4394
4372 is the March 2014 high
The August low at 4321
4316 is the lower gap point from October 2014
4289 is the July 2000 recovery high
4277 is the March lower gap point
4246.55 is the January 2014 peak
4185, the May lower gap point
4131 is the March 2014 low
4104 is the lower gap point from 12/20/13
4070 is the series of highs from late November/early December

S&P 500: Closed at 2002.33

Resistance:
2011 is the September prior all-time high
The 50 day EMA at 2020
2034 is the lower trendline from 11/2012
2076 is the all-time high from November
2093 is the December 2012 up trendline

Support:
The 50 day SMA at 2001
1991 is the July 2014 high
The 200 day SMA at 1946
1905 is the August 2014 low
1902 from early May was the intraday all-time high.
1897 is the prior all-time high hit in April 2014
1883.57 is the early March high.
The December and January highs at 1848
The April 2014 low at 1814
1808 is the November and December 2013 twin peaks
1775.22 is the October prior all-time high

Dow: Closed at 17,280.33

Resistance:
17,351 is the September 2014 all-time high.
The 50 day EMA at 17,436
17,991 is the all-time high

Support:
17,152 is the mid-July post bear market high
17,068 is the early July 2014 peak
16,970 is the June 2014 former all-time high
16,946 is the June 2014 peak
The 200 day SMA at 16,853
16,736 is the penultimate all-time high from May 2014
16,632 is the April 2014 all-time high
16,589 is the December 2013 all-time high
16,506 is the March 2014 peak
16,341 is the May low
16,334 is the August 2014 low
16,257 is the January 2014 low
16,179 is the November 2013 peak.
15,739 is the December 2013 low
15,696 is the September 2013 peak
15,659 is the August 2013 peak

ECONOMIC CALENDAR

December 12 - Friday
- PPI, November (8:30): -0.2% actual versus -0.1% expected, 0.2% prior
- Core PPI, November (8:30): 0.0% actual versus 0.1% expected, 0.4% prior
- Michigan Sentiment, December Preliminary (9:55): 93.8 actual versus 89.5 expected, 88.8 prior

December 15 - Monday
- Empire Manufacturing, December (8:30): 14.0 expected, 10.2 prior
- Industrial Production, November (9:15): 0.7% expected, -0.1% prior
- Capacity Utilization, November (9:15): 79.3% expected, 78.9% prior
- NAHB Housing Market , December (10:00): 58 expected, 58 prior
- Net Long-Term TIC Fl, October (16:00): $164.3B prior

December 16 - Tuesday
- Housing Starts, November (8:30): 1035K expected, 1009K prior
- Building Permits, November (8:30): 1060K expected, 1080K prior

December 17 - Wednesday
- MBA Mortgage Index, 12/13 (7:00): 7.3% prior
- CPI, November (8:30): -0.1% expected, 0.0% prior
- Core CPI, November (8:30): 0.1% expected, 0.2% prior
- Current Account Balance, Q3 (8:30): -$95.0B expected, -$98.5B prior
- Crude Inventories, 12/13 (10:30): 1.454M prior
- FOMC Rate Decision, December (14:00): 0.25% expected, 0.25% prior

December 18 - Thursday
- Initial Claims, 12/13 (8:30): 292K expected, 294K prior
- Continuing Claims, 12/06 (8:30): 2510K expected, 2514K prior
- Philadelphia Fed, December (10:00): 26.5 expected, 40.8 prior
- Leading Indicators, November (10:00): 0.5% expected, 0.9% prior
- Natural Gas Inventor, 12/13 (10:30): -51 bcf prior

[ReturntoSender]

From Briefing.com: Stocks, bonds, commodities, and currencies... they were all in on Tuesday's action and they all saw plenty of volatility. It was a roller-coaster session indeed that tossed and turned on the back of oil price movements and swings in the Russian ruble.

Russia effectively stole the headline spotlight after its central bank raised its key lending rate to 17.0% from 10.5% in an effort to limit ruble depreciation risks and inflation risks.

That move sent the Russian stock market into a tailspin, caused all sorts of palpitations for the ruble, and triggered a negative start, along with a slide in WTI crude futures below $54.00 per barrel, for the U.S. stock market. The dollar-denominated RTS Index declined 12.4% on Tuesday after being down more than 16.0%.

The U.S. stock market soon turned around from its opening losses, riding the relative strength of the energy sector, a sharp rebound in WTI crude futures above $57.00 per barrel, and a bounce in the ruble that tempered some of the fears seen earlier when it was down as much as 18% against the dollar.

The turnaround effort in the U.S., however, ran into a wall around 11:30 a.m. ET when selling efforts picked up again in a broad-based manner. The major indices would end the day mired in negative territory close to, or at, their lows of the session. The Nasdaq Composite (-1.2%) trailed behind the Dow Jones Industrial Average (-0.7%) and S&P 500 (-0.9%).

The S&P 500 information technology sector (-1.5%) was one of the worst-performing sectors on Tuesday, trailing behind only the consumer discretionary sector, which declined 1.6%.

The underperformance was easy to pinpoint when taking into account that heavyweights like Apple (AAPL 106.75, -1.48, -1.4%), Google (GOOG 495.39, -18.41, -3.6%), Microsoft (MSFT 45.16, -1.51, -3.2%), Facebook (FB 74.69, -2.30, -3.0%) and Yahoo (YHOO 48.85, -0.97, -2.0%) were among its biggest decliners.

The weakness in Microsoft and Google stemmed from analyst downgrades. Bank of America/Merrill Lynch cut its rating on Microsoft to Underperform from Neutral, noting concerns about margin leverage, while JPMorgan Chase cut its price target for Google from $670 to $600, citing concerns about growing competition from Facebook and the shift from desktop to mobile search.

Facebook's weakness wasn't news-driven; rather, it was consistent with a generally weak outing for the social media space, evidenced by a 2.1% drop in the Global X Social Media Index ETF (SOCL 17.40, -0.38). To that end, Twitter (TWTR 35.13, -1.72, -4.7%) was on the losing end of things, too, after Evercore cut its price target from $55 to $45. Other laggards included LinkedIn (LNKD 215.62, -2.40, -1.1%), Groupon (GRPN 6.83, -0.18, -2.6%), and Russian ADR Yandex (YNDX 16.82, -0.86, -4.9%).

Yahoo didn't have any specific news afflictions. It announced the closing of its BrightRoll acquisition, saying the transaction should enhance its EBITDA. The weakness in Yahoo, then, looked to be an offshoot of the profit taking that hit the broader market.

The same could be said for Apple, which was found not guilty of violating antitrust law in a jury case considering its use of iTunes 7.0 firmware and software in its iPod model. The favorable ruling was returned after just three hours of deliberations.

There was a lot of red seen across the sector as 54 of the 66 components comprising the sector finished Tuesday with a loss.

The best-performing component was Applied Materials (AMAT 23.85, +0.46), which jumped 2.0% on heavier than average volume and no news. Its gains helped the Philadelphia Semiconductor Index (-0.7%) outperform the market. On a related note, Needham said Tuesday it thought the SOX Index could outperform the Nasdaq again in 2015 after outperforming in 2013 and 2014, noting that the industry is less prone to cyclical booms and busts than in the past.

Cognizant Technology (CTSH 51.22, +0.71) for its part tacked on 1.4% after Deutsche Bank raised its price target from $58 to $69 and named the company its top pick in IT services.

Elsewhere, Amazon.com (AMZN 295.06, -11.01) had a rough day. It shed 3.6% and fell below $300 for the first time in five weeks following news reports that Google is aiming to get more competitive with Amazon. Including Tuesday's loss, AMZN is down 26% since the start of the year.

Priceline (PCLN 1045.84, -32.80) could feel Amazon's pain. It declined 3.0% after Goldman Sachs removed the stock from its Conviction Buy List.

Unisys (UIS 26.10, +1.88), on the other hand, bucked the broader selling trend and rallied close to 8% after naming Peter A. Altabef its President and CEO effective January 1, 2015. Mr. Altabef previously served as President and CEO of Perot Systems Corporation and MICROS Systems.

4:16 pm Closing Market Summary: Stocks Slump With One Eye on Russia (:WRAPX) : The stock market endured a volatile session on Tuesday with investors keeping one eye on the oil market and one on the dollar/ruble exchange rate. The Russell 2000 (-0.1%) registered the slimmest decline while the S&P 500 settled lower by 0.9% after failing to hold its 100-day (1988) and 50-day moving averages (2001).

Yesterday evening, the Central Bank of Russia hiked its key interest rate by 650-basis points to 17.0% with the move aimed at halting the recent freefall in the ruble. The news gave a brief boost to the Russian currency, but the ruble was down more than 18.0% (77.93) against the dollar this morning, which invited concerns about potential economic and financial risks stemming from the continued plunge. This sent participants scrambling in search of safe havens, which boosted Treasuries and the yen.

Meanwhile in the commodity market, crude oil was down in excess of 2.5% this morning, but the energy component spiked off its low shortly after the start of the pit session. Oil was able to return to its flat line, but could not make a sustained move into the green, ending with a nine-cent loss at $55.87/bbl.

The rebound in crude occurred as equities climbed off their lows, while the ruble managed to reclaim its overnight loss. Also of note, the dollar/yen pair narrowed its decline to about 110 pips (116.70), allowing the Dollar Index (87.93, -0.53) to climb off its low. The index hovers just below its November high going into tomorrow's FOMC policy directive, which will be released at 14:00 ET.

While the FOMC statement is likely to acknowledge continued growth and strength in the U.S. labor market, it is unlikely that it will have a strong hawkish undertone considering the recent weakness in crude oil and the resulting impact on inflation.

Only two sectors ended the day in the green with energy (+0.7%) representing the lone advancer on the cyclical side. The energy sector was able to rally as participants deemed the growth-sensitive sector oversold on a short-term basis after losing 8.1% so far in December. Today's advance trimmed the sector's month-to-date loss to 7.0% with Dow component Chevron (CVX 101.70, +0.84) climbing 0.8%.

Also of note, the industrial ended on its flat line, owing its outperformance to defense contractors, and specifically, shares of Boeing (BA 124.25, +2.17). The stock jumped 1.8% after the company hiked its quarterly dividend 25.0% to $0.91 per share and increased its share repurchase plan to $12 billion.

The remaining cyclical sectors could not stay out of the red with consumer discretionary (-1.6%), financials (-1.0%), and technology (-1.5%) driving the market to fresh lows during afternoon action.

Notably, the tech sector trailed the broader market throughout the day, but its underperformance proved to be a significant drag in the afternoon. Google (GOOGL 498.16, -17.68) and Microsoft (MSFT 45.22, -1.45) posted respective losses of 3.4% and 3.1%, with the latter suffering from a Bank of America/Merrill Lynch downgrade to 'Underperform' from 'Neutral.'

The underperformance of technology kept the Nasdaq (-1.2%) behind the S&P 500 throughout the day while afternoon weakness in the biotech space pressured the tech-heavy index to a fresh low ahead of the close. The iShares Nasdaq Biotechnology ETF (IBB 293.67, -3.99) and the health care sector both lost 1.3%.

Treasuries ended near their highs with the 10-yr yield lower by seven basis points at 2.05%.

Participation was ahead of average with more than 996 million shares changing hands at the NYSE floor.

Economic data was limited to Housing Starts and Business Permits:


Housing starts declined 1.6% in November to 1.028 million from an upwardly revised 1.045 million (from 1.009 million) while the Briefing.com consensus expected a reading of 1.035 million Recent gains in the NAHB Homebuilders survey suggested rapid construction growth is on the near-term horizon. Over the last 12 months, however, housing starts have averaged 994,000 per month and recent trends are slightly upward moving. Homebuilders may be saying that they expect strong demand growth, yet the lackluster housing starts data clearly show that they are not actively preparing for accelerated demand Building Permits declined 5.2% to 1.035 million while the consensus expected a reading of 1.060 million Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while November CPI (Briefing.com consensus -0.1%), Core CPI (consensus 0.1%), and Q3 Current Account Balance (consensus -$95.00 billion) will all be reported at 8:30 ET. Also of note, the FOMC will release its latest policy directive at 14:00 ET.
Nasdaq Composite +8.9% YTD
S&P 500 +6.7% YTD Dow Jones Industrial Average +3.0% YTD Russell 2000 -2.0% YTD

2:52 pm General Electric reaffirms 2014 revenue outlook of +0-5% at Investor Meeting (GE) :

Industrial ++- Strong Industrial segment growth ... +10% 3Q YTD; Margin expansion ... +50 bps. 3Q YTD GE Capital ~$6.7B- Delivering on 2014 framework ... TY ~$6.9B; Phase 1 of Retail Finance transaction + Nordics sale Corporate - Will outperform $500MM cost out target; Restructuring > gains ... 2 higher restructuring & other charges ... TY ~(11) Total operating earnings- Positive impact of share reduction CFOA $14-17B- Total year tracking to framework; ~$3B GE Capital dividends Total revenues 0-5%- Industrial segment organic 4-7% ... +5% 3Q YTD; GE Capital 0-(5)% ... (5)% 3Q YTD

1:03 pm Amkor announced that it has granted GLOBALFOUNDRIES a non-exclusive license to its proprietary copper pillar wafer bump technology (AMKR) : The agreement provides for the transfer of the co's copper pillar wafer bump technology to GLOBALFOUNDRIES and a license under Amkor's intellectual property to enable GLOBALFOUNDRIES to bump wafers based on this technology.

12:29 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

CLR (33.02 +6.69%): Oil & gas companies outperforming on the day as oil stabilizes and jumps despite dropping to $53.68 earlier (SU, APA, EPD also notably higher).
CVS (93.67 +4.23%): At Analyst Day guided FY15 EPS in-line, reaffirmed FY14 guidance; raised dividend 27%; added $10 bln buyback.
MNST (108.72 +3.53%): Upgraded to Buy from Outperform at Credit Agricole.

Large Cap Losers

WHR (177.1 -3.41%): Co sees FY15 ongoing business diluted EPS of $14.00-15.00 vs $14.41 mln Capital IQ Consensus Estimate; sees FY14 ongoing business diluted EPS of $10.90-11.10 (lowered from previous guidance of $11.50-12.00) vs $11.65 Capital IQ Consensus Estimate.
PGR (25.82 -1.6%): Announced that it has agreed to acquire a controlling position in ARX Holding Corp, the parent company of American Strategic Insurance and its affiliates, for ~$875 mln in cash.
S (3.98 -1.73%): Reports out the co may be fined $105 mln for overcharging.

Mid Cap Gainers

TLM (7.58 +47.95%): Repsol (REPYY) confirmed plans to acquire Talisman Energy for $8.00 per common share in all-cash transaction.
GRUB (33.27 +4.82%): Upgraded to Buy from Neutral at Goldman; tgt raised to $43 from $42; Heavy activity in the Mar 35 calls.
SPWR (24.46 +5.16%): Upgraded to Overweight from Equal-Weight at Morgan Stanley.

Mid Cap Losers

NAV (30.9 -11.84%): Reported Q4 (Oct) loss of $0.88 per share, $0.98 worse than the Capital IQ Consensus Estimate of $0.10 (GAAP $0.08); revenues rose 9.3% year/year to $3.01 bln vs the $3.01 bln consensus.
OCN (20.93 -5.96%): Reports out that the co's compliance issues may be under scrutiny; The co confirmed they are working closely with the Office of Mortgage Settlement Oversight on two issues.
QIHU (57.6 -3.44%): The co announced it has formed a strategic partnership with Coolpad Group Limited a smartphone co in China, through investing $409.05 mln in cash to take a 45% stake in a joint venture with Coolpad.

12:10 pm Stocks/ETFs that traded to new 52 week highs/lows this session- New lows (108) outpacing new highs (7) (:SCANX) : Stocks that traded to 52 week highs: AXTA, CVS, ED, KR, ROST, SPLS, WM

Stocks that traded to 52 week lows: ABEV, ABX, AEM, APA, APC, ARCC, AU, AVP, BBVA, BSMX, CAM, CCJ, CIG, CLR, CMLP, CNO, CNQ, COP, CRC, CVE, CVX, CX, DDD, DNR, DVN, EBR, ECA, ESV, EXH, FCX, FLR, FLS, FSLR, FTI, GLNG, GOOGL, HAL, HES, HFC, HLF, HP, IBM, JEC, KOS, L, LINE, LUK, LVS, MBT, MCD, MDU, MGM, MPEL, MRO, MUR, NBL, NE, NEM, NGLS, NRG, OGE, OIBR, OIBR.C, OII, OKE, OKS, OUT, OXY, P, PAA, PAGP, PBR, PBR.A, PSX, PTEN, PWR, QEP, RGP, RIG, S, SBS, SE, SFUN, SGEN, SLB, SMFG, SPN, SSYS, SU, SWN, TCK, TOT, TSU, UPL, VALE, VALE.P, VIP, VIV, WFT, WLK, WLL, WPX, WPZ, WYNN, XOM, YNDX, YPF, ZU

ETFs that traded to 52 week highs: none

ETFs that traded to 52 week lows: AFK, AMJ, BJK, BKF, BNO, DBC, DIG, DJP, ECH, EEB, EMB, EPOL, EPU, EWA, EWM, EWW, EWZ, GDXJ, GSG, GULF, HYG, IEO, IGE, ILF, IXC, IYE, JNK, KOL, MES, OIH, OIL, PBD, PBW, REMX, RSX, SEA, SGG, TBT, UGA, UHN, USCI, USO, XES, XLE, XME, XOP

Note: To reduce the list of stocks making 52 week highs/lows to a manageable size we have filtered out stocks below $2 bln in market cap and below 1 mln average volume. Without this filter 39 stocks made 52 week highs and 655 stocks made 52 week lows.

10:01 am Google and Verizon (VZ) enter into global patent license agreement (GOOG) : Co and Verizon (VZ) have entered into a long-term patent cross-license agreement covering a broad range of products and technologies. The agreement allows each company to reduce the risk of future patent litigation.
"Verizon has long championed patent reforms and industry actions that promote innovation," said Verizon General Counsel Randal Milch. "We look forward to striking similar deals with other high-tech companies also concerned with the innovation tax that patent trolls often collect."

9:01 am Amtech Systems reaches $21 mln in solar orders to-date in Q1 FY2015 on a large order from Asia; total solar & non-solar orders reach $28 mln (ASYS) : Co announced that since October 1, 2014, it has received approximately $28 million in orders, including $21 million in orders for its solar products. The $21 million in solar orders includes a significant order from a leading Chinese manufacturer and the previously announced order from Mission Solar Energy. The orders are expected to ship within the next three to nine months.

7:32 am SunEdison announced that is has closed its second fund for distributed generation projects in the United States with Barclays and Citi; lease pass-through fund is valued at $117 mln (SUNE) :

Co announced that is has closed its second fund for distributed generation projects in the United States with Barclays and Citi.The lease pass-through fund is valued at $117 million, and follows on the Barclays and Citi fund closed earlier this year.

7:31 am Charles & Colvard entered into a new exclusive supply agreement on December 12, 2014 with Cree (CREE) for purchases of silicon carbide crystals (CTHR) :

Co entered into a new Exclusive Supply Agreement on December 12, 2014 with Cree, Inc. (CREE) for purchases of silicon carbide (SiC) crystals. The new Exclusive Supply Agreement supersedes and replaces the existing Amended and Restated Exclusive Supply Agreement with Cree that is set to expire in 2015.The new Exclusive Supply Agreement is set to expire in June 2018; however, provided certain conditions are met, Charles & Colvard has a renewal option to extend the term of the agreement for an additional two-year period.

6:03 am Cabot Micro announced that its Board has elected David H. Li as President and CEO and member of the Board, effective January 1, 2015; William P. Noglows will continue to serve as Executive Chairman of the Board (CCMP) : As President and CEO, Mr. Li, who is currently Cabot Microelectronics' Vice President of the Asia Pacific Region, will succeed Mr. Noglows, who has served as the company's Chairman, President and CEO since 2003.

[ReturntoSender]

From Briefing.com: The Technology Sector outperformed the broader market for the second day in a row on Tuesday, S&P 500 Information Technology Index +0.28% versus the S&P 500 +0.17%.

In regards to news, not much was released on Tuesday in the Information Technology space, aside from a ChannelAdvisor's report updating holiday cyber sales results. ChannelAdvisor reported that Google (GOOG 530.59 +5.72) had its best showing since Thanksgiving and Cyber Saturday, posting 19.5% y/y sales growth. Additionally, ChannelAdvisor mentioned that Amazon (AMZN 306.29 -0.26) is the YTD holiday winner, posting 19.7% increase in sales in comparison to last year's holiday season.

On to the analyst actions:

LinkedIn (LNKD 231.49 -1.51) had its target raised to $270 from $235 at Evercore, which maintained its Buy rating on the stock.

Workday (WDAY 84.86 +0.72) was initiated with an Overweight rating at First Analysis Securities.

Sierra Wireless (SWIR 47.16 +1.76) had its target raised to $53 from $36 at Canaccord Genuity, which maintain it at a Buy. Canaccord Genuity noted that it believes the acquisition of Maingate is consistent with Company management's strategy to leverage its strong balance sheet and bolster its higher-margin Enterprise Solutions business with margin-accretive recurring revenue business models. Further, the firm believes Maingate's strong presence in Europe, especially in Nordic countries, and strong position in leading M2M verticals such as security, energy, and payments complements the SWIR's M2M businesses in Europe and accelerates the company's end-to-end device-to-cloud strategy. Firm maintains belief SWIR is well positioned to benefit from strong LT industry growth trends in its industry-leading OEM solutions business.

Salesforce.com (CRM 60.50 +0.64) was initiated with a Hold at Drexel Hamilton.

Nokia (NOK 8.08 +0.12) was upgraded to Buy from Increase at Inderes.

Apple (AAPL 112.54 -0.40): Oppenheimer reiterated its Outperform rating on Apple, also noting a $130 price target on the stock. Oppenheimer noted last week that the Korean News outlet, ETNews, reported that Samsung is planning to produce 340-380 million smartphones in 2015, or 10-20% growth Y/Y. The same report further noted Samsung plans to maintain market share by reinforcing its mid-to low-end offerings. Oppenheimer's Samsung (SSNLF) outlook is significantly more negative-it models a y/y decline. The firm is raising AAPL FY15E and FY16E (above analyst consensus) revenues/EPS to $221B/$7.85 and $235B/$8.83 from $220B/$7.80 and $229B/$8.58 based on strong iPhone 6 and 6 Plus sales momentum in the December quarter and updated outlook for Apple Watch in FY16.

Yahoo (YHOO 50.02 -1.13) had its target raised to $60 at Topeka Capital Markets. Topeka noted that it believes Tumblr is an under-appreciated asset within core Yahoo but is growing nicely in both users and revenues and is expected to turn a profit in 2015. While Instagram, which is owned by Facebook (FB 80.61 -0.84) is garnering the spotlight (rightfully so), they see Tumblr elevating its status over the coming year and its rising value reflected in core Yahoo's valuation as the monetization story builds. Topeka is increasing its 2015 estimates. The firm awaits the next catalyst on a plan for tax efficient monetization of the Asian assets, expected between now and the announcement of 4Q results.

Lastly, Red Hat (RHT 70.45 +1.56) was initiated with a Buy at Cantor Fitzgerald, which set its price target at $81.

4:10 pm : The Dow Jones Industrial Average (+0.4%) and S&P 500 (+0.2%) rallied to new record highs on Tuesday with the Dow crossing above the 18,000 mark for the first time. However, widespread losses in the biotechnology group prevented the Nasdaq Composite (-0.3%) from taking part in the rally.

Equity indices began the day in the green after a better than expected revision to Q3 GDP (5.0%; Briefing.com consensus 4.3%) provided a pre-market boost. The GDP report was a bright spot among a torrent of mostly disappointing data, which was taken in stride by the market.

Nine of ten sectors registered gains with the energy space (+1.3%) ending in the lead. The growth-sensitive sector opened ahead of other groups and held the lead into the close. Crude oil, meanwhile, settled higher by 3.1% at $57.09/bbl and continued its advance in electronic trading with the move taking place even as the Dollar Index (90.13, +0.36) climbed 0.4%.

The energy sector was followed closely by materials (+0.8%) while the remaining cyclical groups also settled ahead of the broader market. Consumer discretionary (+0.6%) and financials (+0.6%) enjoyed broad support while the technology sector (+0.3%) rallied behind its top components like Google (GOOGL 538.77, +6.47), Intel (INTC 37.43, +0.22), and Microsoft (MSFT 48.45, +0.47). The three names gained between 0.6% and 1.2%, but the largest component-Apple (AAPL 112.54, -0.40)-shed 0.4% and kept the Nasdaq pressured.

However, Nasdaq's woes were not isolated to its largest member. Biotech names retreated across the board with the iShares Nasdaq Biotechnology ETF (IBB 294.70, -14.38) dipping below its 50-day average (294.47). The biotech ETF was able to reclaim that level ahead of the close, but still ended the day lower by 4.7%. For its part, the health care sector (-2.2%) was the only group that ended behind the S&P 500.

The underperformance of biotechnology prevented the S&P 500 from extending its gain, while the price-weighted Dow Jones Industrial Average benefitted from containing just four health care names with two of the four priced below $60/share. In total, only five Dow components registered losses while the two largest listings-Visa (V 265.26, +1.05) and Goldman Sachs (GS 195.50, +1.06) gained 0.4% and 0.6%, respectively. Today's outperformance extended the Dow's year-to-date gain to 8.7%, but the index remains behind the S&P 500, which has added 12.7% so far in 2014.

Elsewhere among Dow members, shares of Coca-Cola (KO 42.97, +0.62) gained 1.5% after The Wall Street Journal reported the company plans to cut between 1,000 and 2,000 jobs globally. As for the broader consumer staples sector (+0.8%), the countercyclical group ended among the leaders.

Treasuries ended near their lows with the 10-yr yield spiking ten basis points to 2.26%.

Today's participation was below average with fewer than 700 million shares changing hands at the NYSE floor.

Economic data was plentiful, including GDP, Durable Orders, FHFA Housing Price Index, Michigan Sentiment, Personal Income/Spending, and New Home Sales:


Third quarter GDP was revised up to 5.0% in the third estimate after an originally reported 3.9% gain, which was the largest increase since a 6.9% spike in Q3 2003
The Briefing.com consensus expected GDP to be revised up to 4.3%
Real final sales were revised up to 5.0% from 4.1%, which was the largest increase since Q1 2006 when sales climbed 5.5%
Consumption was revised up to 3.2% from 2.2% after increasing 2.5% in Q2 2014
Durable goods orders declined 0.7% in November after increasing a downwardly revised 0.3% (from 0.4%) in October
The Briefing.com consensus expected an increase of 2.7%
A large portion of the miss was a result of seasonal adjustments impacting nondefense aircraft orders
Excluding transportation, durable goods orders declined 0.4% while the consensus expected an increase of 1.0%
The October Housing Price Index from the FHFA rose 0.6%, which followed an unchanged reading in September
New home sales in November hit an annualized rate of 438,000, which was down from the revised October rate of 445,000 (from 458,000) and worse than the rate of 460,000 that had been broadly expected by the Briefing.com consensus
The University of Michigan Consumer Sentiment Index was virtually unchanged at 93.6 (from 93.8) in the final December reading while the Briefing.com consensus expected no change
The December sentiment reading marked the highest point since January 2007
Personal income increased 0.4% in November while the Briefing.com consensus expected an increase of 0.5%
Personal spending increased 0.6% in November while the consensus expected an increase of 0.5%
Core PCE prices were flat in November while the consensus expected an uptick of 0.1%


There is no economic data on tomorrow's schedule with the session scheduled to end early at 13:00 ET.

Nasdaq Composite +14.1% YTD
S&P 500 +12.7% YTD
Dow Jones Industrial Average +8.7% YTD
Russell 2000 +3.4% YTD

4:12 pm CalAmp beats by $0.02, reports revs in-line; guides Q4 EPS in-line, revs below consensus (CAMP) : Reports Q3 (Nov) adj. earnings of $0.25 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.23; revenues fell 0.4% year/year to $63.23 mln vs the $63.28 mln consensus.

Wireless Datacom revenue up 9% sequentially and 10% year over year to a record $54.6 million. Satellite revenue down 4% sequentially and 37% year over year to $8.6 million.
Co issues guidance for Q4, sees EPS of $0.26-0.30, excluding non-recurring items, vs. $0.29 Capital IQ Consensus Estimate; sees Q4 revs of $66-70 mln vs. $70.84 mln Capital IQ Consensus Estimate. "We anticipate Wireless Datacom revenue in the fourth quarter will be higher on both a year-over-year and sequential quarter basis, while Satellite segment revenue is expected to be down modestly on a sequential quarter basis to approximately $8 million. We are pleased with our near term growth prospects and anticipate that continued execution and investments in key strategic initiatives and geographic expansion will drive profitable growth into fiscal 2016 and beyond"

2:10 pm GT Advanced Tech. actively pursuing ASF furnace sales without exclusivity restrictions following bankruptcy court approval of settlement agreement with Apple (AAPL) (GTATQ) : Co announced that following the Bankruptcy Court's recent approval of its Settlement Agreement with Apple (AAPL), GT is now pursuing ASF furnace opportunities for sapphire cover glass applications across the broader smartphone market as well as ongoing opportunities in the LED and Industrial markets.


Under the Settlement Agreement, all previous exclusivity restrictions have been lifted and GT retains control of its intellectual property as well as ownership of its production, ancillary and inventory assets located in Mesa. GT has been provided with a rent-free lease of the Mesa facility through the end of 2015 and a subsequent rent-free lease of a portion of the facility for storage through 2019, subject to early termination by Apple on 6-months prior notice, which can be issued no sooner than July 1, 2016. Apple has been provided with a mechanism for recovering its $439 mln pre-payment made to GT whereby Apple will receive a portion of ASF sales for each furnace that GT sells.

1:14 pm Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (428) outpacing new lows (73) (:SCANX) : Stocks that traded to 52 week highs: AAT, AAWW, ABMD, ABT, ACC, ACN, AEE, AEL, AEP, AHC, AIG, AIV, AKR, ALCO, ALE, ALL, ALTR, AMAT, AMC, AMP, ANW, AOS, APD, APH, APU, ARCB, ASH, AVB, AVIV, AVOL, AXL, AXS, AXTA, AYN, AZO, BBK, BCPC, BEE, BERY, BFAM, BFS, BGCP, BKD, BKN, BKYF, BMI, BMY, BR, BRCD, BURL, BWLD, BXP, BYM, CAKE, CASY, CATO, CAVM, CBF, CBOE, CBRL, CCK, CDNS, CDR, CDW, CFNL, CHD, CHFN, CHKP, CHRW, CHSP, CI, CINF, CL, CLX, CMCSA, CMCSK, CME, CMS, COBZ, CODE, COLM, COV, CPIX, CPK, CRAI, CRI, CSCO, CSF, CSFL, CSL, CTAS, CTCT, CTRN, CTSH, CUBE, CUK, CVS, CXW, CY, D, DCT, DD, DDR, DGRS, DGRW, DGX, DHIL, DHR, DIN, DIS, DLPH, DLTR, DLX, DOC, DRE, DRI, DRII, DTE, DUK, DYAX, EAT, ECHO, EDE, EDR, EFX, EIX, EMC, ENTA, EOT, EQR, EQY, ESRT, ESS, ETM, EVT, FAF, FARO, FB, FDEF, FDS, FFBC, FHN, FII, FISV, FNF, FOX, FOXA, FR, FRT, FSBW, FTNT, FV, FWRD, G, GCBC, GFED, GGP, GIB, GIII, GK, GLW, GNCMA, GPC, GPK, GSIG, GT, GXP, HAIN, HBAN, HBIO, HCA, HCN, HD, HFBC, HII, HIW, HME, HMN, HNI, HON, HPQ, HPT, HR, HRG, HRTG, HSIC, HSKA, HST, HTA, HTBK, HVB, HWAY, HWKN, HZO, IART, IBKR, IDCC, IDT, IDTI, IMKTA, INCR, INDB, INGR, IR, IRC, ITG, JACK, JBHT, JBL, JCOM, JMM, JNS, JOB, JWN, KAI, KAR, KFRC, KIM, KMB, KNL, KNX, KRC, KRG, KTWO, KWR, LAMR, LB, LDL, LE, LG, LHCG, LHO, LLL, LMT, LNBB, LNC, LNT, LOW, LTC, MAA, MAC, MARA, MAS, MATW, MBFI, MD, MDT, MKC, MKSI, MKTX, MMM, MMS, MMSI, MPG, MPWR, MS, MSFG, MTD, MUA, MUSA, MWV, MYC, MYF, NAC, NAVI, NBH, NDAQ, NEE, NHI, NICE, NKX, NNN, NOC, NPF, NRO, NSAM, NTRI, NU, NUW, NWE, NWL, NWN, NXR, O, OCUL, OHI, ORCL, ORLY, OUTR, PAY, PEB, PEOP, PG, PKG, PKOH, PLCE, PLD, PLL, PMCS, PNC, PNW, PNX, POOL, PPG, PPS, PRGS, PRI, PRK, PRLS, PSCC, PSCF, PSCT, PSCU, PVTB, QLYS, QQEW, QTM, QVCA, RAND, RAX, RCII, RCPT, REG, REV, REXR, RFMD, RHP, RHT, RIT, RKT, RLJ, RMD, ROIC, ROL, ROST, RPM, RSG, RVSB, SAFT, SCG, SCI, SCOR, SEE, SF, SFG, SHO, SHW, SIGM, SKT, SKYY, SLGN, SMCI, SMTC, SNA, SPB, SPG, SPTN, SRCE, SRCL, SSS, ST, STBA, STBZ, STI, STR, STT, STX, STZ, STZ.B, SUI, SURG, SWIR, SWK, SWKS, SWX, SXT, SYF, SYK, SYMC, TA, TASR, TE, TEL, TEVA, TFM, TJX, TMP, TQNT, TRCB, TRI, TROW, TRV, TSQ, TTWO, TUBE, TXRH, UBA, UDR, UIL, UNF, UPS, USAK, USB, USCR, UTL, V, VAL, VNO, VOYA, VUSE, WAG, WAL, WASH, WCG, WDFC, WFC, WM, WSO, WSTC, WTBA, WY, XENT, XOXO, XPO, YORW, ZFGN, ZMH, ZUMZ

Stocks that traded to 52 week lows: AM, ANTH, ASPS, ATRM, BCBP, BORN, CAPN, CBLI, CHKR, CHLN, CHT, CLRX, CNXR, CRNT, DHRM, DSWL, EARS, ELTK, EXD, EXE, EXEL, EYES, FTSM, GALE, GALT, HEAR, HIE, HNSN, HTY, IMGN, INVT, INWK, ISHG, JMI, KWK, LMRK, LPHI, LTRE, LUB, MCOX, MEET, MEP, MIND, MR, NCTY, NEFF, NEOT, OCN, ONP, PBIB, PLX, PSTR, PTNR, PTNT, RFIL, RGDX, RNO, RXII, RYI, SDLP, SJT, SVLC, SYRX, TGB, TGD, UQM, VCSH, VLTC, VRTB, VVUS, WMGI, XONE, ZU
ETFs that traded to 52 week highs: DIA, DVY, IAI, ICF, IGN, IGV, IHF, IHI, ITA, IWF, IYF, IYG, IYJ, IYR, MDY, OEF, PPA, RTH, SKYY, URE, UUP, UYG, VNQ, XLF, XLP, XLU, XLY, XRT

ETFs that traded to 52 week lows: BJK, DJP, EPOL, FXA, FXB, FXE, FXF, UNG

12:35 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

CHK (19.86 +7.82%): Announced the closing of its asset sale to Southwestern Energy, also authorized a $1 bln common stock repurchase program.
HTZ (24.07 +6.46%): Announced that it increased U.S. retail prices for all Hertz, Dollar and Thrifty car rentals reserved for pick-up on or after January 1, 2015.
CLR (39.66 +4.34%): The co lowered its 2015 cap-ex, production guidance; Buy rating maintained at Stifel, price tgt lowered to $50 from $55.

Large Cap Losers

PCYC (120.06 -9.61%): Sector wide weakness in biotechnologies (INCY, CELG, REGN also lower).
GMCR (137.06 -1.95%): Confirmed it is voluntarily recalling certain MINI Plus Brewer Systems that were produced prior to July 2014 due to a burn hazard.

Mid Cap Gainers

DDS (122.43 +4.93%): Reports out the company has received takeover interest from Hudson Bay.
RDN (16.98 +4.3%): Announced that it will sell Radian Asset Assurance to Assured Guaranty (AGO) for a purchase price of ~$810 mln.
RBA (26.33 +3.42%): Announced it achieved Q4 gross auction proceeds of $1.2 bln, a record for Q4 and an increase of 11.7% YoY.

Mid Cap Losers

ZU (23.16 -8.85%): Lower following cautious comments from ITG.
NBR (12.71 -2.98%): Downgraded to Reduce from Neutral at Global Hunter.
SAVE (73.76 -2.74%): Airlines lower after a report out discussing that their oil hedges may actually be doing more harm than good as oil prices continue to drop.

7:31 am SunEdison announced an agreement with JPM Capital Corporation whereby they will invest up to $75 mln in a $175 mln solar energy development fund (SUNE) :

Co announced an agreement with JPM Capital Corporation whereby they will invest up to $75 million in a $175 million solar energy development fund. TerraForm Power (TERP) will use the financing to purchase up to 60 megawatts of solar power projects that SunEdison will develop and construct in 2014 and 2015. This funding enables SunEdison to continue to offer advantageous pricing and financing to customers, and grows TerraForm Power's already robust project pipeline.From yesterday

Semiconductors lead the way on Monday as the Information Technology Sector (+1.06%) outperformed the S&P 500 index (+0.38%) by a good-sized margin. The Philadelphia SOX Index rallied 1.54%, and included only one decliner, Sunedison (SUNE 19.22 -0.43). Top-gaining Semiconductors on the day were Kla-Tencor (KLAC 72.16 +2.44), RF Micro Devices (RFMD 16.51 +0.55), Cree Inc. (CREE 32.13 +0.92), ASML Holding (ASML 109.52 +2.68), and Skyworks Solutions (SWKS 74.42 +1.72).

Technology news stories:

Sierra Wireless (SWIR 45.40 +3.22) rose 7.6% after it announced an agreement to acquire Sweden-based Wireless Maingate for $90 million. The transaction expands its position in the M2M value chain with the addition of wireless connectivity and value-added services for European customers. With a strong base of recurring revenue, Maingate expects 2014 revenue of over US $19 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) of US $6 million. The deal, which is expected to close in February 2015, is assumed by SWIR to be immediately accretive to its earnings.

Although it didn't post gains on Monday, Oracle (ORCL 45.65 -0.35) announced it has signed an agreement to acquire Datalogix, the industry-recognized leader at connecting offline consumer spending to digital marketing that helps marketers increase the effectiveness and measurability of their advertising. ORCL has been a high flyer in recent days after reporting strong earnings results for its fiscal second quarter. The stock has rallied as much as 12% since reporting those results on Dec 17.

In other news, Twitter (TWTR 38.43 +1.35) jumped 3.6% amid rumors that the CEO Costello may be stepping down. The company did not confirm these rumors today, and this isn't the first time this chatter has circulated. Certainly something to keep an eye on though, as many investors believe a change in management would be beneficial to the company's future.

It was a busy day for analyst actions in the sector. Here are some notable ratings changes:

BlackBerry (BBRY 10.68 +0.69) made news again today. TD Securities upgraded the stock to a Buy from a Hold, sending the stock 6.9% higher. BBRY's stock price fell almost to $9 after it reported earnings results on Dec 19, but has rallied back nearly 20% in two days' trading.

Seagate Technology (STX 68.63 +0.23) had its price target raised to $83 from $70 at Brean Capital, which maintained its buy rating for the stock.

Western Digital (WDC 114.28 +0.40) also had its price target raised at Brean Capital, to $150 from $125. Brean Capital maintained its Buy rating for the stock.

RF Micro Devices (RFMD 16.51 +0.55) reiterated a Buy at Brean Capital, its price target raised to $20 from $16.

Stratasys (SSYS 82.60 +1.45) rose 1.8% following a reiterated Overweight rating at Piper Jaffray, which raised its price target raised to $130 from $120.

Palo Alto Networks (PANW 125.72 +1.36) rallied 1.1% higher following Piper Jaffray's Overweight reiteration, which bumped its price target raised to $150 from $130.

[ReturntoSender]

From Briefing.com: Weekly Recap - Week ending 26-Dec-14The stock market added to its holiday gain with a Friday advance that was paced by the Nasdaq Composite (+0.7%). For its part, the S&P 500 (+0.3%) climbed to a new record high at 2,088.77 with seven sectors ending in the green.

Although the major averages posted decent-sized gains, the advance occurred on below-average volume. In fact, today's NYSE floor volume of 436 million shares represented the second-lowest total of the year. This was well below the 50-day average of 808 million and only ahead of Wednesday's 340 million that was registered in a shortened session. Anemic volume wasn't unique to the U.S. session as equity indices across Europe were closed altogether while markets across Asia enjoyed a low-volume rally.

Seven sectors finished the day in the green with countercyclical utilities (+1.2%) and telecom services (+1.1%) in the lead. However, the two represent just a small fraction of the market and their performance was not as impactful as the strength in the third largest group by weight-health care (+0.7%).

The health care sector was powered by biotechnology as the industry group continued its rebound from a slip earlier in the week. The iShares Nasdaq Biotechnology ETF (IBB 306.61, +6.81) gained 2.3% and narrowed its weekly decline to 3.3% after being down as much as 7.9% at its lowest point on Tuesday.

Biotechnology was largely responsible for the outperformance of the Nasdaq, but the index also drew strength from large cap technology names like Apple (AAPL 113.99, +1.98), Google (GOOGL 541.52, +4.59), and Qualcomm (QCOM 75.62, +0.96). Chipmakers, meanwhile, struggled to keep pace with the PHLX Semiconductor Index adding 0.1%. As for the technology sector (+0.4%), the top-weighted cyclical group settled ahead of the broader market.

Elsewhere among cyclical sectors, consumer discretionary (+0.5%) was the only other area of outperformance thanks to broad strength. Groupon (GRPN 8.14, +0.25) caught some attention, spiking 3.2% after Korea Times reported that Goldman Sachs may purchase Groupon-owned Ticket Monster.

Other cyclical sectors finished behind the broader market with energy (unch) ending at the bottom of the leaderboard. The growth-sensitive sector began the day among the leaders, but was pressured from its early high by intraday weakness in crude oil. Crude futures were up as much as 1.0% overnight following reports of an attack on an oil storage tank at Libya's largest port. The strength was short-lived as oil reversed, and tumbled throughout the day to end lower by 2.0% at $54.65/bbl. The resulting weakness in the sector pressured major components like Chevron (CVX 113.25, -0.22) and ExxonMobil (XOM 93.21, -0.57), which in turn, weighed on the Dow Jones Industrial Average (+0.1%).

In other commodities, copper futures fell 1.5% to $2.812/lb into the neighborhood of early December lows while gold climbed 1.8% to $1.194.30/ozt.

Treasuries posted modest gains with the 10-yr yield slipping one basis point to 2.25%.

Monday's session will be free of economic data.

Week in Review: New Records for Dow and S&P 500

The stock market kicked off the abbreviated week with a Monday advance that sent the Dow Jones Industrial Average and S&P 500 to new all-time highs. The Dow finished ahead of the S&P 500 with 27 of its 30 components ending higher. Meanwhile, the S&P 500 was held back by the underperformance of health care names, and especially, biotechnology. Health care was weak due in large part to a large loss in Gilead Sciences (GILD), which followed reports that pharmacy benefits manager Express Scripts (ESRX) is going to displace Gilead's hepatitis C drug, Sovaldi, in favor of a less expensive offering from AbbVie (ABBV), Viekira Pak, which recently won FDA approval and will become the exclusive option in the formulary for patients with genotype 1 hepatitis C.

The Dow Jones Industrial Average (+0.4%) and S&P 500 (+0.2%) rallied to new record highs on Tuesday with the Dow crossing above the 18,000 mark for the first time. However, widespread losses in the biotechnology group prevented the Nasdaq Composite (-0.3%) from taking part in the rally. Equity indices began the day in the green after a better than expected revision to Q3 GDP (5.0%; Briefing.com consensus 4.3%) provided a pre-market boost. The GDP report was a bright spot among a torrent of mostly disappointing data, which was taken in stride by the market. Nine of ten sectors registered gains with the energy space (+1.3%) ending in the lead. The growth-sensitive sector opened ahead of other groups and held the lead into the close. Crude oil, meanwhile, settled higher by 3.1% at $57.09/bbl and continued its advance in electronic trading with the move taking place even as the Dollar Index (90.13, +0.36) climbed 0.4%.

The stock market had the rug pulled out from under it as the Christmas Eve session headed for the close. The S&P 500 ended flat after surrendering a five-point gain while the Nasdaq Composite (+0.2%) outperformed. The key indices started with slim gains and inched higher into the afternoon amid light volume, before a wave of selling interest knocked the indices from their highs. Only 340 million shares changed hands at the NYSE floor, which was a far cry from the average full session total of about 826 million. Only three sectors finished in the green while energy (-0.8%) played the role of Grinch. The growth-sensitive group could not make it into positive territory as crude oil weighed. The energy component fell 3.6% to $55.08/bbl with a larger than expected inventory build contributing to the weakness.

Bond and equity markets were closed on Thursday for Christmas.
Index Started Week Ended Week Change % Change YTD %
DJIA 17804.80 18053.71 248.91 1.4 8.9
Nasdaq 4765.38 4806.86 41.48 0.9 15.1
S&P 500 2070.65 2088.77 18.12 0.9 13.0
Russell 2000 1195.96 1215.21 19.25 1.6 4.4

The Technology Sector moved higher with the broader market on Friday as investors returned from the brief holiday break, although volume was still relatively low. The S&P Information Technology Index closed 0.41% higher, outperforming the S&P 500, which closed 0.33% higher.

On a broader scale, Technology Hardware, Storage & Peripherals lead all Information Technology industry groups, gaining 1.5% as it outperformed the broader market. Software was the only declining industry group, falling 0.2% on the final Friday of the 2014.

First, Reports that Obama is planning to increase funding to combat cyber hacking boosted cyber security shares on Friday. Related stocks include: Fireeye (FEYE 33.21 +0.83), Palo Alto Networks (PANW 127.43 +1.44), Imperva (IMPV 52.19 +0.32), Fortinet (FTNT 31.31 +0.13), Symantec (SYMC 26.54 -0.04), Check Point Software (CHKP 80.06 -0.38), Qualys (QLYS 40.17 +1.28), CyberArk Software (CYBR 41.83 +0.23).

In other news, the KoreaTimes reported that Goldman Sachs (GS 195.45 -0.44)) is considering purchasing Ticket Monster from Groupon (GRPN 8.14 +0.25). Groupon is reportedly considering the sale of at least a 20% stake and is also considering handing over managerial duties, selling over half of its stake. Note that this report has not yet been confirmed by Groupon or Goldman.

Although there wasn't much news released in the sector on Friday, there were still several large gainers and losers, here are some of the top movers in the space:

Baidu (BIDU 234.88 +3.90), Apple (AAPL 113.99 +1.98), LinkedIn (LNKD 235.25 +3.42), Qualcomm (QCOM 75.62 +0.96), First Solar (FSLR 44.34 +0.67), Google (GOOG 534.03 +5.26), Ambarella (AMBA 55.94 +3.89), GoPro (GPRO 69.23 +2.82), F5 Networks (FFIV 133.66 -1.45).

12:29 pm Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (276) outpacing new lows (48) (:SCANX) : Stocks that traded to 52 week highs: AAL, AAWW, AEE, AEP, AEPI, AFFX, AIG, AKR, ALE, AMED, AMSG, ANW, AOS, APD, APH, ARMK, ASH, ATO, AVA, AVY, AWK, AWR, BC, BERY, BFAM, BFK, BFS, BGCP, BLT, BMI, BMTC, BR, BRKL, CBRL, CCL, CCRN, CDK, CDNS, CDR, CDW, CERN, CFI, CHFN, CHRW, CLC, CMS, COTY, CPIX, CPK, CTB, CUK, CVS, D, DCT, DDC, DDR, DF, DGRS, DGRW, DMF, DMO, DNP, DRE, DTE, DUK, DY, ED, EDE, EE, EFX, EIX, ELS, EMC, EQY, ESGR, ESRT, ESRX, ETB, ETR, EXAM, EXC, FAF, FARO, FCB, FDEF, FE, FFNW, FR, FTNT, GABC, GGG, GIII, GLW, GPC, GPK, GPT, GXP, HA, HAWK, HAWKB, HE, HEI.A, HFBC, HIW, HNH, HNI, HPQ, HR, HTBK, HTD, HVB, HWKN, IBCA, IDA, IHT, IIM, IMDZ, INGR, IPG, IR, IRC, ITC, ITRI, JAH, JBL, JBSS, JBT, JKHY, JLL, JNS, JOB, JOUT, JRN, KMB, KWR, LAMR, LB, LBAI, LBY, LDL, LE, LEG, LFC, LII, LKFN, LNCE, LNT, MAC, MACK, MATW, MGEE, MKTX, MRGE, MTD, MUA, MUSA, NEE, NHI, NI, NNN, NSAM, NU, NUW, NWE, NWL, NWN, O, ODP, OTTR, PCCC, PCG, PEB, PEG, PKOH, PLL, PLMT, PNM, PNW, PNY, POR, PPG, PPL, PRGS, PRI, PSCT, PSCU, PVTB, RAND, RAX, RBA, RCII, RECN, RIT, RL, RMD, ROG, ROIC, ROP, RPM, RSG, RVSB, SCG, SCI, SCS, SFBS, SHO, SHW, SIX, SKT, SLGN, SLM, SNA, SNV, SO, SOR, SPLS, SRCE, SRE, SSNC, SSP, ST, STBA, STL, STR, SVU, SWK, SWX, SXT, SYF, SYMC, TA, TASR, TCX, TE, TEG, TMP, TREC, TRI, TRK, TSRA, TTPH, UEIC, UFI, UGI, UIL, UNF, USAK, USCR, UTG, UTL, UTMD, V, VA, VA, VAL, VONE, VONV, VOYA, VTWG, VUSE, VVC, WASH, WCG, WD, WEC, WGL, WHR, WM, WR, WSTC, WTR, WY, WYN, XEL, XOXO, ZFGN

Stocks that traded to 52 week lows: CFBK, CHKR, CHNR, CNYD, CVRR, DHRM, DSWL, EFF, EQT, FTEK, FTGC, FTSM, HEAR, HELI, HIE, IFON, IGLD, IMNP, JMI, KUTV, LPHI, MEET, MOSY, MTSL, MXE, NEFF, NSPR, ONP, ORMP, PBFX, PBMD, PBT, PLX, PSTI, PSTR, RGDX, ROYT, RTGN, SRF, TFSC, TWN, UPL, VRTA, VSCI, WBAI, WMGI, WPCS, XXII

ETFs that traded to 52 week highs: DIA, DVY, IHF, ITA, MDY, PPA, RTH, VTI, XLU, XLY
ETFs that traded to 52 week lows: CSJ, DBC, EPOL, GSG, JJC, UHN, UNG, USCI

[ReturntoSender]

From Briefing.com: Only the Utilities and Energy Sectors underperformed the Technology Sector on Tuesday. The S&P Technology Sector Index fell 0.70% versus the S&P 500, which only fell 0.49%. All industry groups in the space ended the day lower, with Technology Hardware, Storage & Peripherals leading decliners, closing down 1.1%. With the entire sector ending lower, it may be a good time to take note of those stocks that were able to buck the trend and show strength in the headwinds of a weak broader market. Yahoo (YHOO 51.22 +0.69), Computer Sciences Corp (CSC 64.44 +0.46), Juniper Networks (JNPR 22.67 +0.08), and Ebay (EBAY 57.22 +0.19) were all able to close in the green.

While the news wire was fairly thin today, there were several analyst actions with commentary worth noting:

Xerox (XRX 14.01 -0.13): Argus reiterated its Hold rating for XRX on Tuesday, noting that Xerox has agreed to sell its information technology outsourcing business to Atos for $1.05 billion. The disposition of this business, in which Xerox has been a second-tier player, should enable the company's services business to focus on core competencies, including business process outsourcing and document outsourcing. As a result of the planned sale, Xerox has reduced its non-GAAP EPS guidance for both 2014 and 2015. Meanwhile, the stock has already experienced its big move from deep-value territory, which prompted Argus' mid- 2010 upgrade, to something approaching fair value, which prompted Argus' mid-2014 downgrade.

Yelp (YELP 54.24 +1.23): MKM Partners announced that it is maintaining its Buy rating for YELP. In support of this decision, MKM noted that current valuation implies revenue growth deceleration from 60-90% over the past 4- years to 15% in the next 4-years and that EBITDA margin will level in the mid-30% range. MKM sees a very different path for the business in this time frame. While the stock is pinned under confusion with Local Business Account disclosures, MKM encourages investors to take a deeper look into the composition of revenue growth and the margin profile of this business. MKM sees very meaningful stock price appreciation over the next several yrs. It also noted that the company is a misunderstood stock and still one of the best long term growth stories in the sector.

Fireye (FEYE 32.41 -0.59): The cyber security company maintained its Buy rating at Topeka Capital, which mentioned that while the security peer group has risen on average 53% YTD, FEYE is among only a few security stocks that are down YTD and being down 24% puts the company in the #1 slot among the under-performers. Firm believes FEYE will play catchup in 2015 based on: 1) Its position in the Advanced Persistent Threat mkt; 2) An expansion of its Total Addressable Market via entry into Endpoint Protection and; 3) Heightened awareness following several highly publicized breaches about the importance of Incidence Response. Additionally, Topeka noted that the #1 needle mover for the company's stock price is for it to exhibit operating margin expansion through Op-Ex discipline. FEYE ranks #1 in terms of potential price appreciation among firm's security universe.

Akamai Technologies (AKAM 64.07 +0.28): DA Davidson announced that it maintains AKAM at a Buy, raising its price target to $86 from $72. Firm views the company's tech as significantly differentiated in the market, both on the CDN side of the business and on the security and performance side. AKAM's ability to deploy capabilities at the edge of the network is one such differentiator. DA Davidson believes AKAM's strong balance sheet and solid cash flow generation also offer it a competitive advantage in the market. DA Davidson continues to anticipate strong top and bottom line growth throughout 2015 and beyond.

Synnex (SNX 78.10 +0.54): Brean Capital maintained its buy rating on the stock, while raising its price target to $90 from $85. Brean Capital believes the company is no longer just cyclical, also noting that it believes SNX's overall mix continues to shift favorably with the integration of the recently acquired IBM (IBM 160.05 -0.46) BPO business, legacy Concentrix business, and growing traction with the company's Hyve offering -- all of which favorably impact margin and revenue growth. Brean Capital views the anticipated Windows Server refresh cycle along with a stable PC environment as boding favorably for co over the course of 2015, which it believes will help the company manage EPS expectations and deliver on them accordingly. In fact, firm noted that unlike other IT Distributors, SNX does not have any European exposure, and as such, does not include any European-associated macro risk.

4:09 pm Closing Market Summary: Stocks Retreat Amid Light Volume (:WRAPX) : The stock market ended the Tuesday session on a broadly lower note. The Nasdaq Composite (-0.6%) was the weakest performer among the major averages while the S&P 500 (-0.5%) ended a bit ahead of the tech-heavy index.

Equities began the day in negative territory and remained below their flat lines until the close. However, participation was very limited with just 525 million shares changing hands at the NYSE floor. The light activity was also reflected by narrow trading ranges with the S&P 500 bounded between 2,080 and 2,084 for most of the session.

Overall, cyclical sectors were responsible for the bulk of the weakness as three of six growth-sensitive groups settled in-line with or behind the broader market while the utilities sector (-2.1%) was the only laggard on the countercyclical side.

The utilities sector spent the entire session at the bottom of the leaderboard to narrow its 2014 gain to 26.6%. Despite today's retreat, the rate-sensitive group remains on track to finish the year ahead of the other nine sectors while health care, which has spiked 24.5% in 2014, is all but sure to finish the year in the second place.

Similar to utilities, the energy sector (-0.6%) slumped out of the gate amid early weakness in crude oil, which endured a volatile session. The energy component faced selling pressure overnight, but was able to climb into the green this morning, ending higher by 0.8% at $54.10/bbl. Today's uptick in the price of crude could not prevent oil services provider Civeo (CVEO 3.92, -4.35) from slashing its guidance for next year, which caused the stock to plunge 52.6%.

Elsewhere, other influential sectors like industrials (-0.5%) and technology (-0.7%) kept the market under pressure while consumer discretionary (-0.4%), financials (-0.1%), and health care (-0.4%) displayed relative strength.

For the most part, the health care sector withstood weakness in the biotech group that pressured the iShares Nasdaq Biotechnology ETF (IBB 304.62, -3.39) lower by 1.1%. This in turn contributed to the underperformance of the Nasdaq Composite.

Treasuries notched their highs shortly after the opening bell before retreating throughout the day. The 10-yr yield slipped one basis point to 2.19%.

Economic data was limited to Consumer Confidence and Case-Shiller 20-City Index:


The Conference Board's Consumer Confidence Index increased to 92.6 in December from an upwardly revised 91.0 (from 88.7) while the Briefing.com consensus expected an increase to 94.4
Over the last month, gasoline prices dropped to their lowest point in more than five years, equity markets have reached historic highs, and the employment situation improved notably, but the December reading came in below the 94.1 that was recorded in October
The Case-Shiller 20-city Home Price Index for October rose 4.5% against a 4.4% increase expected by the Briefing.com consensus
The prior month's reading was revised down to 4.8% from 4.9%

Tomorrow, weekly MBA Mortgage Index will be released at 7:00 ET while Initial Claims will be reported at 8:30 ET (Briefing.com consensus 290K). The Chicago PMI report for December (consensus 60.0) will cross the wires at 9:45 ET while the Pending Home Sales report for November (expected 0.8%) will be released at 10:00 ET.
Nasdaq Composite +14.4% YTD
S&P 500 +12.6% YTD
Dow Jones Industrial Average +8.5% YTD
Russell 2000 +4.1% YTD12:56 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

GG (18.82 +5.85%): Gold companies strong as the precious metal jumps $22 on the day to $1203.9 (ABX also higher).
HSP (62.9 +1.06%): Received FDA approval for Dyloject Injection, a proprietary nonsteroidal anti-inflammatory drug analgesic.
AKAM (64.23 +0.69%): Price target raised to $86 from $72, maintain Buy at DA Davidson

Large Cap Losers

SWN (27.45 -6.05%): Announced a company update and guidance for 2015: Sees FY15 production of 970-980 Bcfe, increased 2015 CapEx to $2.6 bln from $2.4 bln in 2014.

Mid Cap Gainers

ARCP (9.03 +6.49%): Corvex disclosed a 7.1% stake in 13D - notes they have had discussions to explore additions to the Board.
YELP (54.5 +2.8%): Bullish commentary from MKM Partners, firm maintains their Buy rating on the company.
MIC (70.48 +1.78%): Announced that it has completed the acquisition of an additional stake in Idaho Wind Partners; Management further expressed confidence in outlook saying they expect FCF for 2014 and 2015 to be above previous guidance.

Mid Cap Losers

GSAT (2.73 -7.46%): Additional cautious blog out this morning leading to today's decline.
CXW (37.35 -1.24%): Announced that the Federal Bureau of Prisons elected not to renew its contract at CCA's owned and operated 2,016-bed Northeast Ohio Correctional Center.

11:45 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (194) outpacing new lows (76) (:SCANX) : Stocks that traded to 52 week highs: AAL, AAVL, ACC, ACOR, AEL, AEPI, ALGT, ALK, ALV, AMED, AVIV, AXL, AYN, AYR, BC, BERY, BFS, BJRI, BKD, BKE, BLT, BMI, BNDX, BRKL, BSET, CAKE, CASY, CATO, CBL, CBRL, CCL, CDR, CFI, CFNL, CHCO, CHFN, CHRS, CHSP, CJJD, CMCSA, CMCSK, CMPR, COTY, CPF, CRI, CSBK, CSG, CTB, CTCT, CTWS, CUK, DCT, DDR, DDS, DIN, DLTR, DMF, DOOR, DRI, DRII, DY, EBTC, ELS, EQY, ESSA, EWBC, FCH, FFBC, FFNW, FR, FRME, FWRD, GGP, GIII, GK, HA, HAIN, HI, HMHC, HMN, HNI, HPP, HPT, HR, HRG, HSP, HTA, HVB, HW, IART, IDT, IFNA, IIM, INDB, INGN, INN, INTL, IPG, ISBC, JACK, JAH, JBLU, JBSS, KNL, KNX, KR, KRG, LAWS, LBY, LDL, LEG, LKFN, LNBB, LNCE, LOW, LTM, M, MAC, MCRL, MIG, MIK, MMV, MRGE, MTOR, MUSA, NATH, NBB, NBTB, NDRM, NHI, NJR, NSAM, OHI, OLP, OMER, OSBC, OTTR, OUTR, PEI, PF, PKOH, PLAY, PLD, PNFP, POOL, PSCD, PTRY, PVTB, QLGC, QTNT, RCII, REG, RFMD, RIT, RL, RLJ, ROL, RPAI, RPT, RYAAY, SAFT, SBCF, SCHL, SCX, SIGM, SIX, SKT, SNV, SSNC, SSS, STL, SVU, SWX, SYBT, TQNT, TROW, TTPH, TWC, TXRH, UBA, UBNK, UBP, UBSI, UCFC, USAK, VAC, VNO, WAL, WDFC, WHR, WSBF, WSM, XENE, ZUMZ

Stocks that traded to 52 week lows: AMRS, ASTI, AWF, BLIN, BSDM, CAPN, CBRX, CCIH, CEL, CHKR, CLSN, CLWT, CVEO, CVRR, DCM, DSWL, ELTK, ESEA, EVGN, FRD, FTSM, GF, GLOW, GNI, HELI, HSOL, ICD, IDN, IMNP, INVT, LIQD, LMRK, LOOK, LRE, LUB, MGIC, MGN, MIN, MSN, MY, NAME, NBG, NCTY, NDRO, ONTX, ORMP, PBMD, PBT, PKO, PKX, PLX, PT, PTNR, RCON, SDR, SHIP, SPP, SRF, SWN, SWZ, TGC, TLP, UAMY, UPL, UQM, VOC, VRNG, VRTA, VVUS, WBAI, WHZ, WPCS, XGTI, XXII, YUMA, ZU

ETFs that traded to 52 week highs: RTH, VNQ, XLI, XRT

ETFs that traded to 52 week lows: BNO, DJP, GREK, GSG, UGA, USCI

9:03 am Viasystems: TTM Technologies (TTMI) announces receipt of all foreign approvals to acquire Viasystems; expect the acquisition to close in the first half of 2015 (VIAS) :
6:03 am Chipmos Technology subsidiaries approve merger agreement (IMOS) :

Co announced that the required greater than 50% of shareholders of both IMOS and ThaiLin Semiconductor have voted in person or by proxy to approve the proposed merger of the two ChipMOS' subsidiaries. The respective special general meetings were held on December 30, 2014.

[ReturntoSender]

InvestmentHouse Weekend Market Summary - Stocks Cannot Hold

http://investmenthouse2.com/cntdirplus.asp?name=IHDaily&zid=2770189&eeid=XFcqVytdVygELD4ZXlAyUFpZGFAqWg==

- Stocks cannot hold an early jobs, Fed-speak bounce.
- Jobs more of the same as headlines show improvement but hollow improvement.
- Indices at next resistance, and next test in the recovery.

But jobs were great so why didn't the market rally?

Maybe because they were not so great? Maybe another month of rising jobs, falling unemployment that just doesn't feel like it to the majority of the country?

How about those Wholesale Inventories rising 0.8%, almost 3x expectations (0.3%)? But sales FELL 0.3%. Clear to see why inventories rose: not selling all the goods. This even as much of the goods for the country sit on ships outside Long Beach, still waiting to be unloaded because longshoremen don't want more efficient machines to phase out their jobs. It sucks to have your industry die off and your job become unneeded. Happened to me several years after college. Had to go a different route. So I did. It happens.

But, I digress.

How about Europe? After a couple of economic reports showed some tantalizing improvement, industrial production slid off the map. Germany -0.1% versus 0.4% expected. France -0.3% versus 0.3% expected. UK -0.1% versus 0.2% expected. Spain o.0% versus 0.7% expected. Spain continues to be the recent 'best in category.' High praise indeed for the EU.

The ECB didn't help either when, just two weeks before its next meeting when most expect some serious attempt at QE, we find out Draghi is still reviewing what type of QE program the ECB might initiate, including revisiting a private plan as well. No stock markets liked it. Draghi say, Draghi don't do? Again?

Futures were lower on the European news, perhaps on the French hostage situations as well. The jobs report jumped futures to positive.

Evans speaks again. I was working at my desk, the financial stations on as usual (muted of course). I looked up and saw Fed President Evans. Not a tape of his recent speech, but live on CNBC giving an interview. A current voting Fed president giving an interview on a financial station, discussing the Fed's policy. What the heck is going on? Why even bother with a statement anymore? Each statement is either undermined or bolstered by the parade of Fed presidents out on the stump, auditioning for their post-FOMC careers in front of the Wall Street powerful (not on CNBC, but those watching it).

Anyway, Evans pulled a 'republican Congress' move, you know, making statements that totally eviscerate any future plans (e.g. stating the government would never be shut down again, signaling the White House it can pretty much do as it wants). Evans was on air to further explain his comment earlier in the week that rate hikes at the wrong time would be 'a catastrophe.' Well, he explained it all right, saying the Fed should not increase rates until 2016 if things transpire as he sees them unfolding. Indeed, he said things were indeed unfolding just as he expected. So no hikes until 2016? What more could a market ask?

Apparently more because after opening higher, the stock indices peaked almost instantly. They sold into midmorning. Negative. 'Great' jobs, rates flat until 2016 and who knows how far beyond, Obama handing out free passes to community college (do green cards come with those?), the Republican Congress happy to do nothing again now that they are in power. Market nirvana, yet stocks sold.

Weak bounce into lunch, a second attempt to the last hour, then backsliding. Some great individual moves but overall the indices faded the Wednesday to Thursday jump higher, all closing lower ex-SOX.

SP500 -17.33, -0.84%
NASDAQ -32.12, -0.68%
DJ30 -170.50, -0.95%
SP400 -0.82%
RUTX -0.87%
SOX 0.13%

VOLUME: -13% NYSE, -17% NASDAQ. At least volume backed off from the higher volume Thursday.

A/D: -1.7:1 NYSE, -2:1 NASDAQ. Negative breadth but not as strong downside as it was upside Thursday. All kinds of positives.

The indices struggled, but they did manage to hold over some of the support recovered Thursday, e.g. the 50 day EMA. Lower volume, modest breadth. The Thursday move was not trashed. Not helped, but not trashed. As for 2015's start, down the first five sessions thanks to the Friday fade. Not a great start, but next week is a new week with a patient Fed, reinforced by Mr. Evans' 'wait until 2016' timetable for rate hikes. Oh, I get it; we just missed the first part of Yellen's statement: it was one year and six months after QE ends.

THE ECONOMY

All about the jobs. Of course there is more than just the number.

Stronger jobs, stronger jobs! We have recovered all lost jobs!

Really? Perhaps in numbers if you buy the seasonally/politically adjusted numbers, but if you look at most other measures in the report, only in the Administration's dreams.

Wages: The inverse of the non-farm jobs chart. There is no recovery at all for most of America as the wages they earn from the jobs that replaced the jobs they lost as the crisis started just don't pay worth a flip. Gasoline tax cut? Gasoline will have to go negative about $15/gallon for it to make up for the difference in hourly earnings pre-collapse.

Jobs Quality: Again the low-paying sectors were right at the top of job creation. Food Service/Drinking Establishments up 43.6K, education and health 48K, leisure and hospitality +36K. Professional and Business services (secretaries) up 37.3K. Retail plummeted, rising just 7.7K versus 56K in November.

Construction jumped to 48K. The only area of serious jobs that grew significantly. Yet, bartenders are still moving in on manufacturing.

And how about that workforce?

Participation Rate: 62.7%, back to a 38 year low.

Out of workforce: 92.9M with 451K leaving the workforce.

Thanks to those 451K taking it for the team and leaving the workforce, the unemployment rate fell to 5.6%. The INSANE aspect of this is that MANY on the financial stations, so gung hopeful for the year were saying this was just excellent news. As if a low unemployment rate is the end in itself. Just like the jobs: doesn't matter if they are quality, just give us numbers. Doesn't matter that 92.9M working aged people out of 317M total US population (edging closer to one-third total population) are completely out of the work force because, damn it, the unemployment rate is lower that it was pre-crisis.

Mission Accomplished!
How about that age gap? Still there? You betcha!

Indeed, those 55+ in the workforce hit an all-time high! 39.2M, +1.3M year/year. Impressive sir. Especially as they put in an all-time high in November as well!

Note the 'everything else' category, ages 16 to 54: the red line remained flat after dropping in November's 'big month.' Again the younger group NNA for jobs. Millions with diplomas, huge tuition debts, more coming with 'free' community college, living at mom and dad's with no job prospects.

7 years of college down the drain . . . --Bluto, 'Animal House' (1977)

Oh yes, and for those keeping score from last month's rundown of Presidents and 300+K job months, there are STILL just 2 months of 300K jobs during this President's 6 year reign.

So many inconsistencies.

2.9M jobs claimed created in 2014. Unemployment falls to 5.6%.

At the same time: 252K jobs created yet 451K people leave the workforce.

2.9M jobs created but those out of the work force rise to 92.9M, an all-time record. So the most jobs created in a year in decades but also the most people out of the workforce, ever.

Wages fall 0.2% while November's surge that supposedly marked a new recovery era of jumping wages was written down to 0.2% from 0.4%. How are wages FALLING when unemployment is at pre-Recession lows and the most jobs since 2009 were created?

Not even addressing the jobs type or quality. There are serious problems in the US economy in the type of jobs created and the warping of the workforce. Why work at a menial, low pay job when you can just not work and get pretty much the same without the hassle?

Quit, get the benefits, work some cash jobs you don't pay taxes on, avoid Obamacare expenses for insurance policies you couldn't even use anyway because you cannot afford the deductible (but are mandated to buy), and come out better or as well than if you did what the Administration wants and work one or two or three menial jobs.

THE MARKET

CHARTS

SP500: After surging through the 50 day EMA and the lower trendline to the long uptrend channel, Friday SP500 gave back part of the move. Held above the 50 day EMA but closed below the channel. Three channel breaches in three months. Kind of important to SP500 that Friday was just a pause after two strong moves. If not, it has set up something of a head and shoulders. Have that SPY play still in the hopper.

NASDAQ: Fared a bit better in terms of the day though the pattern is still worrisome. After gapping through the 50 day EMA Thursday NASDAQ faded to test, tapping at the 50 day EMA on the low, rebounding a bit to hold the 10 day EMA on the close. Lower trade on the test, a positive. As with SP500, needs to hold and continue higher from here.

DJ30: As with the other large cap indices, faded Friday after two solid moves and touching near the early December high. Holding at the 10 day EMA but a very important test to hold and break through the 18K level. If not, well there is the DIA to short for a move near 17K.

RUTX: Thursday a gap over the November/December trading range then a test here as well. More or less at the top of that range, and if there is going to be a January Effect, at some point, it should hold around here and rally.

SP400: After rallying to the November high Thursday, the midcaps faded to the 20 day EMA. As with RUTX, they need to hold here and start back up.

SOX: Doji Friday after a big gap higher Thursday through the 50 day EMA. Double bottom at the July and September highs with the bounce starting Wednesday. Not bad action, indeed positive on the Friday session, but with the look of the other indices it is all 'what have you done for me lately.'

LEADERHIP:

Electronics/Chips: Fitting as they were positive on a weak market session. TSEM broke higher on solid volume. VIMC hit our initial target in less than a week, surging Thursday and Friday. SPIL. RBCN looks ready to turn.

Social Media/Internet: TWTR turned nicely higher. FB tested, but put in a good upside break for the week. PLNR continued its bounce off the breakout test. YELP gapped upside off the 5 week lateral move that could be the bottom.

Biotech/Drugs: ACAD broke nicely higher Friday. TGTX faded Friday, but lower volume, still in good shape. XLRN enjoyed a good week though closed flat Friday after gapping higher.

MARKET STATS

NASDAQ
Stats: -32.12 points (-0.68%) to close at 4704.07
Volume: 1.666B (-17.69%)

Up Volume: 634.31M (-1.066B)
Down Volume: 1.06B (+674.04M)

A/D and Hi/Lo: Decliners led 1.95 to 1
Previous Session: Advancers led 2.9 to 1

New Highs: 83 (-12)
New Lows: 52 (+11)

S&P
Stats: -17.33 points (-0.84%) to close at 2044.81
NYSE Volume: 732.1M (-13.69%)

A/D and Hi/Lo: Decliners led 1.7 to 1
Previous Session: Advancers led 3.32 to 1

New Highs: 152 (-47)
New Lows: 63 (+30)

DJ30
Stats: -170.5 points (-0.95%) to close at 17737.37

SENTIMENT INDICATORS

VIX: 17.55; +0.54
VXN: 18.4; +0.25
VXO: 16.27; +1.16

Put/Call Ratio (CBOE): 0.99; +0.14

Bulls and Bears:

Bulls: 50.5% versus 56.4% versus 52.5% versus 49.5% versus 51.5% versus 53.4% versus 56.5%. Right back down with a big drop after touching 56% again. Not punching through and that is a decent indication that investors are not totally gung ho.

Bears: 15.2% versus 14.9% versus 15.8% versus 14.9% versus 14.8% versus 13.9% versus 13.8% versus 14.9%. Starting to skew just a bit to the slightly more bearish side. Still, a stubbornly low number of bears, and that is an important indication that while bulls capped out at lower levels, there are still just not many bears.

Theory: When everyone is bullish and has put all their capital to work, where does the ammunition to drive the market come from? There is always new money to start a new year. After that is used will more money be coming? That is the question.

Bulls: 50.5%
56.4% versus 52.5% versus 49.5% versus 51.5% versus 53.4% versus 56.5% versus 56.4% versus 55.5% versus 54.6% versus 47.0% versus 35.3% versus 37.8% versus 45.5% versus 47.5% versus 48.0% versus 52.5% versus 57.6% versus 56.1% versus 52.5%

Background: Last undercut 35%, the threshold for bullishness, in early June 2012.

Bears: 15.2%
14.9% versus 15.8% versus 14.9% versus 14.8% versus 13.9% versus 13.8% versus 14.9% versus 14.8% versus 15.1% versus 16.3% versus 18.2% versus 17.3% versus 14.1% versus 15.1% versus 15.3% versus 15.2% versus 14.1% versus 13.3% versus 15.1% versus 16.2%

Background: Over 35% for bears is the threshold to be really be a good upside indicator. The best indication is when bears cross up through bulls as the two merge. Right now bulls are coming back down from the 60 level that has consistently marked market tops over the past two years. The rapid decline in progress is pushing the bulls/bears lines toward one another. Still far from a cross with bulls falling faster than bears are rising, but bears are warming up to the notion of market weakness.

OTHER MARKETS

Bonds (10 year): 1.95%
2.02% versus 1.97% versus 1.94% versus 2.04% versus 2.12% versus 2.17% versus 2.19% versus 2.21% versus 2.25% versus 2.26% versus 2.165% versus 2.17% versus 2.21% versus 2.14% versus 2.05% versus 2.11% versus 2.08% versus 2.18% versus 2.16% versus 2.22% versus 2.26% versus 2.31% versus 2.24% versus 2.29% versus 2.29% versus 2.22 versus 2.17% versus 2.21% versus 2.24% versus 2.26% versus 2.30% versus 2.31% versus 2.34% versus 2.35% versus 2.32% versus 2.34% versus 2.32% versus 2.35%

Bouncing right back up off the 10 day EMA test.

Oil: 48.36, -0.43. Worked laterally Wednesday to Friday, again trying to form a shelf to test the 10 day EMA.

Gold: 1216.10, +15.60. Starting to bounce after testing the break through the 50 day EMA.

$/JPY: 118.50 versus 119.69 versus 119.43 versus 118.39 versus 119.62 versus 120.50 versus 119.81 versus 119.51 versus 120.67 versus 120.31 versus 120.48 versus 120.79 versus 119.99 versus 119.49 versus 118.83 versus 118.86 versus 116.81 versus 117.61 versus 118.75 versus 119.07 versus 118.12 versus 119.76 versus 120.55 versus 121.42 versus 119.78 versus 119.81 versus 119.21 versus 118.36 versus 118.63 versus 117.58 versus 117.93 versus 118.27 versus 117.73 versus 117.96 versus 118.00 versus 116.98 versus 116.47 versus 116.29 versus 115.74

After moving up modestly on the week, the dollar sold hard versus the yen Friday, and that played as much a role in the market selling as anything.

Euro/$: 1.1842 versus 1.1789 versus 1.1839 versus 1.1890 versus 1.1934 versus 1.2002 versus 1.2099 versus 1.2156 versus 1.2143 versus 1.2183 versus 1.2203 versus 1.2171 versus 1.2223 versus 1.2225 versus 1.2284 versus 1.2345 versus 1.2509 versus 1.2448 versus 1.2462 versus 1.2389 versus 1.2439 versus 1.2366 versus 1.2318 versus 1.2289 versus 1.2379 versus 1.2313 versus 1.2383 versus 1.2473 versus 1.2452 versus 1.2509 versus 1.2477 versus 1.2442 versus 1.2386 versus 1.2549 versus 1.2543 versus 1.2532

Despite the ECB's indecisiveness regarding what kind of QE to use at such a late date, the euro rallied. Oh yeah; if no QE, no diluting the euro so that makes sense.

MONDAY

The market appears to want it all: strong economic data yet 0% interest rates as well. The December data has not been that strong; not shriveling, but not as strong as wanted if this economy is supposedly taking off. Jobs apparently didn't do the job, and the prospect that 0% rates were here for another year (as confirmed by Evans) was not enough by itself. Man, hard to please. You print several trillion dollars, the Administration raises the debt by almost $8T in 6 years and the market acts PO'ed? Ingrates.

So, with the Friday action as less than thrilling post-jobs (raising the question again if jobs were any good despite the gains), the indices are left in a vulnerable position. There is some leadership though not a wide swath in many sectors across the market. With the mediocre leadership (in numbers, not quality), the index patterns are worrisome as they test levels that will either roll over and form a head and shoulders, or they will continue the Thursday strength and break higher. Critical point.

Thus we are still looking at some solid upside plays to go along with the solid plays we entered on the week. They are certainly out there. Of course, given the index patterns you also need to consider downside if the Wednesday and Thursday move stalls out. SPY, BRCM are on and we are considering some DIA and some individual downside play as well to keep BRCM company.

Evans says don't worry until 2016. Jobs were supposedly more than good enough. The economic data in December is not great but not tanking. Seems like enough to keep stocks going. I guess Europe is an issue with the ECB still trying to figure out how to spell QE. There is also earnings season just ahead, and don't forget the yen. It started to rise Friday after trying to consolidate for a week.

Again, an important juncture as the indices tested a good rebound right at some resistance. Enough leadership but not dominating; it still needs to grow and improve. We anticipate more upside and are letting our positions run, but don't assume the market has to go up without a further test. The index patterns are not reassuring, and the response to Evans and the jobs report just were not that inspiring.

Have a great weekend!

SUPPORT AND RESISTANCE

NASDAQ: Closed at 4704.07

Resistance:
4811 is the November 2014 peak (intraday)

Support:
The 50 day EMA at 4673
4631 is the October 2014 upside gap point
4610 is the September 2014 post-bear market high.
4566 is the lower gap point from late October
4547 is the December low
4545 is the 38% Fibonacci retracement
4486 is the July 2014 high
The 200 day SMA at 4431
4372 is the March 2014 high
The August low at 4321
4316 is the lower gap point from October 2014
4289 is the July 2000 recovery high
4277 is the March lower gap point
4246.55 is the January 2014 peak
4185, the May lower gap point
4131 is the March 2014 low
4104 is the lower gap point from 12/20/13

S&P 500: Closed at 2044.81

Resistance:
2055 is the lower trendline from 11/2012
2076 is the all-time high from November
2079 is the intraday all-time high from November
2118 is the December 2012 up trendline

Support:
The 50 day EMA at 2035
2011 is the September prior all-time high
1991 is the July 2014 high
1972 is the December 2014 low
The 200 day SMA at 1963
1905 is the August 2014 low
1902 from early May was the intraday all-time high.
1897 is the prior all-time high hit in April 2014
1883.57 is the early March high.
The December and January highs at 1848
The April 2014 low at 1814
1808 is the November and December 2013 twin peaks
1775.22 is the October prior all-time high

Dow: Closed at 17,742.19

Resistance:
17,991 is the early December all-time high

Support:
The 50 day EMA at 17,588
17,351 is the September 2014 all-time high.
17,152 is the mid-July post bear market high
17,068 is the early July 2014 peak
17067 is the December 2014 low
The 200 day SMA at 16,981
16,970 is the June 2014 former all-time high
16,946 is the June 2014 peak
16,736 is the penultimate all-time high from May 2014
16,632 is the April 2014 all-time high
16,589 is the December 2013 all-time high
16,506 is the March 2014 peak
16,341 is the May low
16,334 is the August 2014 low
16,257 is the January 2014 low
16,179 is the November 2013 peak.
15,739 is the December 2013 low
15,696 is the September 2013 peak
15,659 is the August 2013 peak

ECONOMIC CALENDAR

January 5 - MONDAY
- Auto Sales, December (14:00): 6.1M prior
- Truck Sales, December (14:00): 7.9M prior

January 6 - TUESDAY
- Factory Orders, November (10:00): -0.7% actual versus -0.4% expected, -0.7% prior
- ISM Services, December (10:00): 56.2 actual versus 58.5 expected, 59.3 prior

January 7 - WEDNESDAY
- MBA Mortgage Index, 01/03 (7:00): 11.1% actual versus -18.2% prior
- ADP Employment Change, December (8:15): 241K actual versus 230K expected, 227K prior (revised from 208K)
- Trade Balance, November (8:30): -$39.0B actual versus -$41.8B expected, -$42.2B prior (revised from -$43.4B)
- Crude Inventories, 01/03 (10:30): -3.062M actual versus -1.754M prior
- FOMC Minutes, 12/17 (14:00): Fed is patient, won't raise before April meeting, rest of the world is something to worry about.

January 8 - THURSDAY
- Challenger Job Cuts, December (7:30): 6.6% actual versus -20.7% prior
- Continuing Claims, 12/27 (8:30): 2452K actual versus 2365K expected, 2351K prior (revised from 2353K)
- Initial Claims, 01/03 (8:30): 294K actual versus 290K expected, 298K prior
- Continuing Claims, 12/27 (8:30): 2452K actual versus 2365K expected, 2351K prior (revised from 2353K)
- Natural Gas Inventor, 01/03 (10:30): -131 bcf actual versus -26 bcf prior
- Consumer Credit, November (14:00): $15.0B expected, $13.2B prior
- Consumer Credit, November (15:00): $14.1B actual versus $15.0B expected, $16.0B prior (revised from $13.2B)

January 9 - FRIDAY
- Nonfarm Payrolls, December (8:30): 252K actual versus 245K expected, 353K prior (revised from 321K)
- Nonfarm Private Payrolls, December (8:30): 240K actual versus 235K expected, 345K prior (revised from 314K)
- Unemployment Rate, December (8:30): 5.6% actual versus 5.7% expected, 5.8% prior
- Hourly Earnings, December (8:30): -0.2% actual versus 0.2% expected, 0.2% prior (revised from 0.4%)
- Average Workweek, December (8:30): 34.6 actual versus 34.6 expected, 34.6 prior
- Wholesale Inventories, November (10:00): 0.8% actual versus 0.3% expected, 0.6% prior (revised from 0.4%)

[ReturntoSender]

From Briefing.com: Much like the rest of the market, the Technology Sector had a wild trading day. The sector climbed at the open before falling sharply in a roller coaster like fashion, but closed relatively unchanged as the thrill ride came to an end. The S&P Information Technology Index fell just 0.06%, outperforming the S&P 500 which fell 0.26% on Tuesday.

A few earnings stories crossed the wire today. Synnex (SNX 77.87 +6.90) soared 9.7% after it reported better than expected Q4 results on Tuesday morning. The company reported Q4 EPS of $1.83 and revenues which rose 25.0% year-over-year to $3.82 billion, both of which beat expectations by a fair margin.

WebMD Health (WBMD 41.11 +0.70) announced that it sees 2014 revenues in the range of $570-580 million. WebMD plans to indicate, at an investor conference this week, that revenue and Adjusted EBITDA for the quarter and year ended December 31, 2014 are expected to be at the high end of the ranges provided in the November 5, 2014 Form 8-K. In addition, with respect to the outlook for 2015, WebMD plans to indicate that management is pleased with advertising and sponsorship sales activity for its Public Portals in the fourth quarter of 2014.

Channel Advisor's (ECOM 9.93 -11.32) shares plunged 53.5% announcing preliminary revenue results for the quarter ended December 31, 2014. Based on information available as of the date of this release, ChannelAdvisor expects revenue for the fourth quarter of 2014 to be approximately $23.7 million, compared to the prior guidance of revenue in the range of $25.6 to $26.1 million.

In other news, Apple (AAPL 110.22 +0.97) reported that it was granted a patent for a camera system similar to GoPro (GPRO 49.87 -6.91). Shares of GPRO plummeted 12.2% with many investors being reminded of Apple's historical dominance over its competition. Even if only a result of brand loyalty, when Apple enters into a new industry, it puts immense pressure on all competitors to lower costs and continue innovation.

Analyst related actions included Hewlett-Packard's (HPQ 39.81 -0.11) downgrade to Sector Perform from Outperform at Pacific Crest.

NetApp (NTAP 39.32 -0.56) was downgraded to Sector Perform from Outperform at Pacific Crest.

SAP AG (SAP 66.89 -0.81) was upgraded to Mkt Outperform from Mkt Perform at JMP Securities.

Lastly, Juniper Networks (JNPR 22.40 -0.05) was downgraded to Neutral from Buy at Sun Trust Rbsn Humphrey.

5:06 pm Linear Tech beats by $0.02, reports revs in-line; increases quarterly dividend 11% (LLTC) : Reports Q2 (Dec) earnings of $0.51 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.49; revenues rose 5.4% year/year to $352.58 mln vs the $354.55 mln consensus.

Second quarter net income and earnings per share were positively impacted by a lower effective income tax rate of 22%. In addition, the Company had no interest expense compared with $12.3 million of interest expense in the second quarter of the prior fiscal year as a result of the extinguishment of the Convertible Senior Notes at the end of fiscal 2014.The Board of Directors approved an increase in the Company's quarterly dividend from $0.27 per share to $0.30 per share."Revenues declined 5% sequentially from our first quarter and were up 5% year over year, which was within our guidance. We had expected this sequential decline as the second quarter has historically been seasonally weak for us. Bookings declined slightly although improved as the quarter progressed. The industrial end-market showed the most strength."

4:10 pm : The stock market enjoyed broad-based support at the start of the Tuesday session, but the opposite was true when the session ended. The S&P 500 lost 0.3% with eight sectors settling in the red.

The final standing masks the fact that the benchmark index was up in excess of 1.0% at the start of the day. The S&P 500 spent the first 90 minutes near its high, but the absence of intraday buying interest opened the door to a retreat that accelerated when the S&P cut through its 50-day moving average (2046/2047).

Commodity-related sectors fueled the pullback from highs with energy (-0.7%) and materials (-1.2%) ending the day at the bottom of the barrel. The two groups struggled to keep pace with the market in the early going and their underperformance became more notable during the afternoon retreat. Alcoa (AA 15.80, -0.37) ended lower by 2.3% despite reporting better than expected results for the quarter. Commodities, meanwhile, endured another rough day. Copper fell 4.6% to $2.60/lb while crude oil settled lower by 0.3% at $45.92/bbl after hitting an overnight low under the $44.50/bbl level.

Like energy and materials, the remaining cyclical sectors came unglued during the afternoon, but the discretionary sector (-0.1%) was able to end ahead of the S&P 500 even as homebuilders cratered. This morning, KB Home (KBH 13.87, -2.70) rallied in reaction to its revenue beat on earnings that included a deferred tax asset valuation allowance; however, the stock plunged to its October low after management said during its post-earnings conference call that the company does not expect to hit its margin goal in 2015. Instead, first-quarter margins are expected to show a significant year-over-year decline. The news sent shares of KBH lower by 16.3% while the iShares Dow Jones US Home Construction ETF (ITB 25.99, -0.68) fell 2.6% as investors adjusted their expectations for the growth-sensitive industry.

Elsewhere, the technology sector (-0.1%) spent the day ahead of the broader market with Apple (AAPL 110.16, +0.91) contributing to the relative strength. The largest sector component jumped 0.8% after Credit Suisse upgraded the stock to 'Outperform' from 'Neutral.' Other large cap sector members ended mixed with Google (GOOGL 501.80, +4.74) climbing 1.0% and Microsoft (MSFT 46.36, -0.25) falling 0.5%.

The technology sector helped the Nasdaq Composite (-0.1%) finish the day a bit ahead of the broader market. Similarly, biotechnology stocks outperformed with the iShares Nasdaq Biotechnology ETF (IBB 314.97, -0.09) ending little changed, but the health care sector (-0.5%) settled among the laggards.

Treasuries registered modest gains with the 10-yr yield slipping one basis point to 1.90%.

Today's participation was ahead of average with more than 850 million shares changing hands at the NYSE floor.

Economic data was limited to JOLTs and Treasury Budget:

The Job Openings and Labor Turnover Survey showed that openings increased to 4.972 million from 4.830 million in November
The Treasury Budget for December showed a surplus of $1.90 billion, which followed the prior surplus of $53.20 billion
The Briefing.com consensus expected the surplus to hit $3.00 billion

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while December Retail Sales (Briefing.com consensus 0.1%) and December Import/Export Prices will cross the wires at 8:30 ET. The Business Inventories report for November (consensus 0.3%) will be reported at 10:00 ET while the Fed's January Beige Book will be released at 14:00 ET.

Dow Jones Industrial Average -1.2% YTD
Nasdaq Composite -1.6% YTD
S&P 500 -1.7% YTD
Russell 2000 -2.0% YTD

DJ30 -27.16 NASDAQ -3.21 SP500 -5.23 NASDAQ Adv/Vol/Dec 1468/2.01 bln/1584 NYSE Adv/Vol/Dec 1465/853.0 mln/1646 3:35 pm :

In electronic trade, WTI crude oil rallied back into positive territory, erasing today's losses
Feb crude oil closed pit trading $0.15 lower at $45.95/barrel, but is now up 1% at $46.50/barrel.
Natural gas futures also rallied in electronic trade, extending gains
Feb nat gas is now +6% at $2.96/MMBtu
Feb gold rose $5 today to $1233.80/oz, while Mar silver ran notable higher today, ending $4% higher at $17.13/oz
Copper remained in the red all day, closing today's session at $0.09 lower at $2.64/lb

12:41 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

CELG (122.8 +4.95%): Favorable commentary on Monday's Mad Money following a bullish presentation on Monday at the JPMorgan Healthcare Conference.
MHFI (90.49 +5.52%): Reports out that the co's S&P unit is close to a Justice Department settlement over ratings.
VRTX (123.08 +4.03%): Bloomberg had an article out citing Vertex as a possible target for Shire's (SHPG) next acquisition.

Large Cap Losers

GG (20.79 -2.92%): Co sees Q4 asset impairment charge of $2.3-2.7 bln due to Ceero Negro mine in Argentina.
MPC (82.96 -2.88%): Downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $97 from $104.
SNN (35.21 -2.22%): Downgraded to Neutral from Buy at UBS.

Mid Cap Gainers

PCYC (147.13 +18.93%): Co announced it sees Q4 IMBRUVICA revs of $185 mln; sees FY15 net product revs of ~$1 bln for IMBRUVICA, representing a 103% increase over the expected FY15 total.
SNX (78.9 +11.17%): Beat Q4 consensus estimates by $0.14, beats on revs; guided Q1 EPS and rev above consensus.
IHS (117.05 +6.28%): Beat Q4 consensus estimates by $0.13, reported revs in-line; guided FY15 EPS below consensus, revs in-line.

Mid Cap Losers

AUY (4.12 -12.9%): Downgraded to Neutral from Overweight at HSBC Securities.
GPRO (52.32 -7.85%): Lower following news that Apple (AAPL) received a patent for a Go-Pro like camera.
NSM (24.47 -6.17%): Mortgage servicing companies under pressure following reports out that California may suspend Ocwen Fincl's (OCN) mortgage license.

12:03 pm Stocks/ETFs that traded to new 52 week highs/lows this session- New highs (80) outpacing new lows (18) (:SCANX) : Stocks that traded to 52 week highs: ACAD, ACT, AGIO, AGN, ALK, ARMK, AVGO, BDN, BEE, BERY, BMR, BMRN, BRCD, BSX, CBL, CDK, CDW, CELG, CLNY, CLX, CODE, COV, CSCO, CTSH, CUBE, CVS, CY, DHI, DIS, DPS, DRE, FISV, FTNT, GFI, GGP, GLW, GPK, HCN, HCP, HCT, HOLX, IBB, ISIS, JNS, KIM, KR, LEG, LEN, LH, LHO, LULU, MAC, MAR, MNK, MO, MRK, NNN, NOC, NPSP, NVS, NXPI, ONNN, OPK, PCG, PFE, PHM, RKT, ROST, SAPE, SHO, SPG, UAL, UDR, UNH, VFC, VRX, VTR, WM, WMT, WY

Stocks that traded to 52 week lows: AR, AVP, CAM, CNX, CRC, EXH, FIVE, FTI, HFC, HLX, MT, MWE, NOV, PSX, RES, RRC, TEX, WPZ

ETFs that traded to 52 week highs: FXI, IBB, ICF, IHI, ITB, IYH, IYR, URE, VNQ, XBI, XHB

ETFs that traded to 52 week lows: BNO, DBB, DBC, DJP, FXE, FXF, GSG, JJC, OIL, UGA, UHN, URA, USCI, USO

Note: To reduce the list of stocks making 52 week highs/lows to a manageable size we have filtered out stocks below $2 bln in market cap and below 1 mln average volume. Without this filter 309 stocks made 52 week highs and 121 stocks made 52 week lows.

9:02 am JDS Uniphase: Sandell releases letter to the Board; reiterates the need for JDSU to pursue further strategic actions to maximize shareholder value (JDSU) : Highlights of the remarks include:

"The continued existence of what we believe are the Company's improper Bylaws is an even greater concern given the continued refusal of JDSU to pursue additional strategic alternatives to maximize shareholder value, including conducting a formal sale process for the CCOP business. Based on very recent discussions with industry participants, we are highly confident that there are parties interested in acquiring the Company's CCOP business in an expeditious manner. It is thus paramount that JDSU open a comprehensive data room so that interested parties may conduct due diligence as soon as possible. Furthermore, investors have received little comfort that the Company is creatively exploring all options to unlock the value associated with the Company's extensive net operating loss carryforwards (NOLs), which together have a tax-effected book value in excess of $2.3 bln."

Axcelis Technologies (ACLS) announced that it has received a multi-product, multi-fab, follow-on order for the Purion Platform from one of the world's leading chip manufacturers in Asia Pacific.

6:31 am Brooks Automation and Chart Industries (GTLS) have entered into a strategic collaboration agreement to develop and distribute automated cryogenic storage solutions (BRKS) : The partnership will leverage Brooks' leadership position in automated sample storage and Chart's leadership position in liquid-nitrogen cooled storage freezers

The collaboration began in early 2014 and is anticipated to lead to the launch of the first joint product by the middle of this year. Both companies will have rights to distribute products developed through this collaboration.

[ReturntoSender]

From Briefing.com: The Technology Sector fell for the fourth time in five days on Thursday. The S&P 500 Information Technology Index fell 1.46%, underperforming the S&P 500, which fell 0.92%. It was a sea of red for the sector today, with all industry groups closing in the red. Technology Hardware, Storage & Peripherals led the sector lower, falling 2.66% on the day. Worst performing large caps in the group include Apple (AAPL 106.82 -2.98), Hewlett Packard (HPQ 38.19 -1.27), and 3D Systems (DDD 28.33 -1.39).

Elsewhere, Lending Club (LC 22.09 +1.03) and Google (GOOG 501.79 +0.92) announced a new pilot program partnership to facilitate low-interest financing to eligible Google partners. Eligible Google partners will have access to financing with low interest and no fees, enabling them to invest in business development and other growth opportunities, hire additional staff and plan for future expansion. Currently, the pilot program is available to Google reseller partners in the U.S. who meet certain eligibility criteria. Eligible partners can obtain two-year loans of up to $600,000 to invest in growth initiatives. With an interest-only structure in the first year and a fully amortizing second year, the loan payback schedule is designed to match the cash-flow profile of growth investments.

Blackberry (BBRY 10.11 -2.40) pulled back 19.8% from yesterday's late spike on Samsung (SSNLF) M&A speculation. Subsequent reports have indicated both companies denied talks. Globe and Mail article also out last night suggested BBRY dismissed a 'handful' buyers in lieu of pursuing its own turnaround plan.

Intel (INTC 36.19 -0.16) reported earnings after the close on Thursday. The company reported Q4 (Dec) earnings of $0.74 per share, $0.08 better than the analyst estimates of $0.66. Additionally, INTC reported revenues rose 6.4% year/year to $14.72 billion vs the $14.71 billion consensus. INTC issued in-line guidance for Q1, noting it sees Q1 revs of $13.2-14.2 billion and a gross margin of 60%, +/- a few % points.

In analyst related news, Xilinx (XLNX 41.04 -0.33) was downgraded to Equal Weight from Overweight at Barclays, its price target lowered to $45 from $54.

Silicon Labs (SLAB 44.17 -2.79) was downgraded to Equal Weight from Overweight at Barclays.

SAP AG (SAP 66.88 -0.09) was upgraded to Outperform from Perform at Oppenheimer.

Yelp (YELP 50.12 -2.08) was upgraded to Hold form Sell at Evercore ISI.

Corning (GLW 23.02 -0.23) was upgraded to Overweight from Neutral at JP Morgan.

Global Payment (GPN 84.68 -0.02) was upgraded to Overweight from Neutral at JP Morgan, its price target raised to $97 from $89.

4:15 pm : The major averages continued their rough week with the S&P 500 (-0.9%) registering its fifth consecutive decline after failing to hold the 100-day moving average (2007). The price-weighted Dow Jones Industrial Average (-0.6%) fared a bit better while the Nasdaq Composite (-1.5%) and Russell 2000 (-1.7%) underperformed.

This morning, market participants were greeted by an astounding move in the foreign exchange market. Specifically, the Swiss franc was up as much as 25.0% against the dollar after the Swiss National Bank abandoned the EURCHF 1.20 floor and lowered the benchmark deposit rate to -0.75%. The move was likely taken in anticipation of a QE announcement from the ECB, and the dollar/franc pair was able to narrow its loss to 15.0% (0.8687); however, that was still large enough to resonate with investors who were lulled into a false sense of security by the SNB's pledge to maintain the exchange rate floor.

Equity indices began the day with slim gains, but the morning strength faded alongside crude oil, which slid from a session high at $51.00/bbl to $46.57/bbl. The energy component ended the day lower by 4.1%, but that masked the fact that crude fell almost 9.0% from its best level of the day. Furthermore, that pullback was closely correlated with a broad-market slide, which was paced by cyclical sectors.

The two top-weighted groups-technology (-1.5%) and financials (-1.3%)-spent the day at the bottom of the leaderboard and their underperformance prevented the market from staging a notable rebound. Most large cap tech components held up relatively well, but Apple (AAPL 106.86, -2.94) fell 2.7% after Mizuho downgraded the stock to 'Neutral' from 'Buy.' Similarly, high-beta social media names lagged with the likes of Facebook (FB 74.05, -2.23), LinkedIn (LNKD 213.21, -6.22), and Yelp (YELP 50.12, -2.08) falling between 2.8% and 4.0%. Chipmakers also struggled, but the PHLX Semiconductor Index (-0.8%) ended ahead of the broader market thanks to an 8.7% surge in Taiwan Semiconductor (TSM 22.89, +1.83) after the company beat earnings estimates and issued upbeat guidance.

Elsewhere, the financial sector retreated under the weight of two more quarterly reports that missed their mark. Citigroup (C 47.23, -1.82) reported below-consensus earnings and revenue while Bank of America (BAC 15.20, -0.84) delivered a one-cent beat on light revenue. The two names posted respective losses of 3.7% and 5.2% while the sector extended its January decline to 6.1%.

Also of note, the consumer discretionary sector (-1.3%) finished among the laggards as retailers and homebuilders struggled. The SPDR S&P Retail ETF (XRT 92.12, -2.16) lost 2.3% while iShares Dow Jones US Home Construction ETF (ITB 24.60, -1.30) fell 5.0% despite better than expected earnings from Lennar (LEN 42.48, -3.28). The stock fell 7.2% after company management made cautious comments about its outlook, echoing the remarks made earlier this week by KB Home (KBH 12.39, -1.15).

On the upside, consumer staples (+0.2%) and utilities (+0.7%) posted gains while another countercyclical sector-health care (-1.1%)-was pressured by biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 307.70, -7.87) lost 2.5%, which contributed to the underperformance of the Nasdaq.

Treasuries registered solid gains with the 10-yr yield sliding nine basis points to 1.76%.

Today's participation was ahead of average with more than 850 million shares changing hands at the NYSE floor.

Economic data included Initial Claims, PPI, Empire Manufacturing, and the Philadelphia Fed Survey:


The initial claims level increased to 316,000 from an upwardly revised 297,000 (from 294,000) while the Briefing.com consensus expected a drop to 290,000
That was the largest initial claims level since the beginning of June 2014 when 318,000 claims were filed
It is possible that the rise in claims is the beginning of an upward move in layoff levels from energy-related activities. Low oil prices are expected to cause layoffs as fracking becomes uneconomical
Producer prices declined 0.3% in December after declining 0.2% in November while the Briefing.com consensus expected a decline of 0.4%
Total energy prices fell 6.6% in December, which was the sixth consecutive month of price declines
Excluding food and energy, core PPI increased 0.3% in December after being flat in November. The consensus expected an uptick of 0.1%
The Empire Manufacturing Survey for January registered a reading of 9.9, which was above the prior month's reading of -1.2 and also above the Briefing.com consensus estimate, which was pegged at 6.5
The Philadelphia Fed's Manufacturing Business Outlook Survey dropped to 6.3 in January from a downwardly revised 24.3 (from 24.5) while the Briefing.com consensus expected a drop to 19.0
That was the lowest level since the index turned negative (-6.3) in February 2014

Tomorrow, December CPI will be released at 8:30 ET (Briefing.com consensus -0.4%) while Industrial Production (consensus -0.1%) and Capacity Utilization (expected 79.9%) will cross the wires at 9:15 ET. The Michigan Sentiment Index for January (consensus 94.1) will be reported at 9:55 ET.

Dow Jones Industrial Average -2.8% YTD
S&P 500 -3.2% YTD
Nasdaq Composite -3.5% YTD
Russell 2000 -4.0% YTD

DJ30 -106.38 NASDAQ -68.50 SP500 -18.60 NASDAQ Adv/Vol/Dec 619/1.82 bln/2472 NYSE Adv/Vol/Dec 1101/858.2 mln/2005

4:09 pm Intel beats by $0.08, reports revs in-line; guides Q1 revs in-line, gross margin a tad light; reaffirms FY15 guidance (INTC) : Reports Q4 (Dec) earnings of $0.74 per share, $0.08 better than the Capital IQ Consensus of $0.66; revenues rose 6.4% year/year to $14.72 bln vs the $14.71 bln consensus.


PC Client Group revenue of $8.9 bln, down 3 percent sequentially and up 3 percent year-over-year.Data Center Group revenue of $4.1 bln, up 11 percent sequentially and up 25 percent year-over-year.Internet of Things Group revenue of $591 mln, up 12 percent sequentially and up 10 percent year-over-year.Software and services operating segments revenue of $557 million, flat sequentially and down 6 percent year-over-year. Co issues in-line guidance for Q1, sees Q1 revs of $13.2-14.2 bln vs. $13.77 bln Capital IQ Consensus; gross margin 60%, +/- a few % points vs. ests of ~61%.

Co reaffirms guidance for FY15, sees mid single digit rev growth vs. +4% consensus with gross margin 62%, +/- a couple % points.
Cap-ex $10 bln, R&D +MG&A spend ~$20 bln.

3:45 pm :

WTI crude oil displayed huge volatility again today, ultimately closing $2.19 lower at $46.36/barrel
This is well off of today's high of $51.27/barrel
Feb natural gas fell 6 cents today to close at $3.17/MMBtu
Feb gold rose $29.60 to $1264.60, while Mar silver rose $0.11 to $17.10/oz

4:07 pm Tessera Tech raises 2015 recurring revenue guidance to $235 mln vs $223.9 mln Capital IQ Consensus Est, up from $195 mln; reaches litigation dissolution agreement with Amkor Tech (AMKR) (TSRA) : Co has entered into an agreement with Amkor Technology (AMKR) to settle all pending litigation between the two companies. Under the terms of the agreement, Amkor will pay Tessera a total of $155 million, comprised of sixteen equal quarterly recurring payments commencing in 1Q15, and continuing through 4Q18. This settlement includes the resolution of the previously awarded judgment of $128.3 million plus interest, as well as additional amounts related to the settlement of other proceedings.
Co stated "This settlement puts our disputes behind us, and opens the door for Amkor and Tessera to have technical collaboration discussions on advanced packaging technologies."
Co also raised 2015 recurring revenue guidance to $235 mln vs $223.9 mln Capital IQ Consensus Est, up from $195 mln.

4:02 pm JDS Uniphase issues statement in response to Sandell; Board remains committed to acting in the best interest of all shareholders and to strong corporate governance and Board remains committed to evaluating all opportunities for additional or greater value creation (JDSU) :

The JDSU Board of Directors remains committed to acting in the best interest of all shareholders and to strong corporate governance.
Consistent with the Board's historical approach of regularly reviewing corporate governance best practices, and after discussions with many of the Company's shareholders both before and after the December 2014 Annual Meeting, the Company undertook an evaluation of potential changes to the advance notice provisions of the Company's bylaws. The Board expects to finalize its decision on any such changes in this calendar quarter following additional shareholder outreach.

Large Cap Gainers

TSM (22.74 +7.98%): Reported Q4 (Dec) earnings of NT$3.08 per share, NT$0.08 better than the Capital IQ Consensus Estimate of NT$3.00; revenues rose 52.6% year/year to NT$222.52 bln vs the NT$220.22 bln consensus.
KRFT (65.14 +3.79%): Upgraded to Conviction Buy from Buy at Goldman.
TGT (75.94 +2.16%): Announced plans to discontinue operating stores in Canada; raised Q4 US comp guidance to +3% from +2%.

Large Cap Losers

BBY (34.79 -12.82%): Reported adj. holiday comps +2.6%, raised comp guidance to in-line with estimates, raised operating margin guidance slightly; guided 1H16 comps, margins down.
MGA (92.98 -4.16%): Downgraded to Hold from Buy at TD Securities; tgt lowered to $110 from $120.
BAC (15.43 -3.83%): Reported Q4 (Dec) earnings of $0.32 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.31; revenues fell 12.7% year/year to $20.15 bln vs the $21.01 bln consensus.

Mid Cap Gainers

PPC (34.71 +10.09%): Announced a special cash dividend of $5.77 per share.
LC (22.29 +5.84%): Announced a new pilot program in partnership with Google (GOOG) to facilitate low-interest financing to eligible Google partners.
ECA (13.02 +3.91%): Heard upgraded earlier to Buy from Hold at Tudor Pickering.

Mid Cap Losers

PODD (31.26 -18.81%): Downgraded to Mkt Perform from Outperform at Raymond James, downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $35 from $45.
BBRY (10.11 -19.75%): Announced it has not engaged in discussions with Samsung (SSNLF) with respect to any possible offer to purchase BlackBerry.
LEN (43.4 -5.16%): Despite earnings that beat both top and bottom line estimates, co guided for slightly lower gross margins in FY15 as the "core homebuilding business is well positioned to deliver strong top and bottom-line growth throughout the year; see FY15 gross margins of ~24% vs. 25.4% last year.

4:07 pm Tessera Tech raises 2015 recurring revenue guidance to $235 mln vs $223.9 mln Capital IQ Consensus Est, up from $195 mln; reaches litigation dissolution agreement with Amkor Tech (AMKR) (TSRA) : Co has entered into an agreement with Amkor Technology (AMKR) to settle all pending litigation between the two companies. Under the terms of the agreement, Amkor will pay Tessera a total of $155 million, comprised of sixteen equal quarterly recurring payments commencing in 1Q15, and continuing through 4Q18. This settlement includes the resolution of the previously awarded judgment of $128.3 million plus interest, as well as additional amounts related to the settlement of other proceedings.

Co stated "This settlement puts our disputes behind us, and opens the door for Amkor and Tessera to have technical collaboration discussions on advanced packaging technologies."
Co also raised 2015 recurring revenue guidance to $235 mln vs $223.9 mln Capital IQ Consensus Est, up from $195 mln.

4:02 pm JDS Uniphase issues statement in response to Sandell; Board remains committed to acting in the best interest of all shareholders and to strong corporate governance and Board remains committed to evaluating all opportunities for additional or greater value creation (JDSU) :

The JDSU Board of Directors remains committed to acting in the best interest of all shareholders and to strong corporate governance.
Consistent with the Board's historical approach of regularly reviewing corporate governance best practices, and after discussions with many of the Company's shareholders both before and after the December 2014 Annual Meeting, the Company undertook an evaluation of potential changes to the advance notice provisions of the Company's bylaws. The Board expects to finalize its decision on any such changes in this calendar quarter following additional shareholder outreach.

11:55 am Relative sector weakness (:TECHX) : Sectors displaying relative weakness in recent trade include: Retail XRT, Housing XHB, Discretionary XLY.

11:53 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (195) outpacing new lows (158) (:SCANX) : Stocks that traded to 52 week highs: AAT, ADVS, AEC, AFFX, AGIO, AKR, ALGT, ANTM, APTS, APU, ARE, ASPX, AVB, AVID, AVIV, AWR, AXL, AYN, BDN, BFY, BIP, BLE, BMR, BMRN, BNDX, BNJ, BNY, BOTJ, BPY, BSE, BTT, BXP, CBL, CCA, CHD, CIVI, CLX, COR, CRL, CRME, CUBE, CXH, DCT, DEG, DENN, DFT, DLR, DMB, DPS, DRE, EIM, ELS, ENX, EPR, EQR, EQY, ESS, EVM, EXR, FCE.A, FCE.B, FRT, G, GGP, GRT, HCN, HCP, HDB, HIW, HME, HNP, HQL, HR, HRC, IART, IFF, IFNA, IGR, IMKTA, INAP, INN, IQI, IRM, ITC, ITCI, JRS, KIM, KITE, KRFT, KTF, KTF, LFC, LPT, LTC, MAA, MAC, MCA, MFL, MFT, MHK, MHN, MIY, MJI, MMS, MNE, MNP, MNST, MO, MPA, MPW, MRGE, MUJ, MUS, MVF, MYC, MYJ, MYM, NAC, NAN, NBD, NBIX, NEV, NID, NIQ, NKX, NMO, NMZ, NNN, NNP, NPSP, NPT, NQI, NQP, NRO, NTES, NVCN, NVS, NVSL, NVX, NXJ, NXN, NXZ, NZH, O, OFC, OHI, PCG, PEI, PENN, PMF, PML, PMM, PMO, PPG, PPS, PSA, PSG, PZC, QURE, REXR, RFI, RKT, RMD, RPAI, RQI, RUTH, SBRA, SERV, SKT, SLG, SPG, SRC, STZ, STZ.B, TA, TCO, TLYS, TNET, UBA, UDR, UHT, UIHC, UTHR, VBLT, VCV, VKI, VKQ, VMO, VNO, VVC, WBB, WGL, WM, WRE, XON

Stocks that traded to 52 week lows: AEG, AEGN, AIMC, AIXG, AKS, ANAT, ANGI, ANY, AR, ARCX, ASCMA, ASTI, ATNM, ATU, AWAY, BALT, BCOR, BKU, BONT, BOOM, BPI, BSDM, CACQ, CAK, CAS, CCS, CEL, CFX, CG, CHMI, CLB, CM, CMC, CNO, CNSI, CNTF, CPSS, CTG, CX, DISCA, DISCK, DMD, EHTH, ELRC, EOX, EVTC, FC, FCEL, FIBK, FSC, FSIC, FUEL, GBCI, GEF, GEF.B, GHL, GNBC, HFC, HHC, HSC, ICLD, IGLD, IOC, ITT, JGH, JOE, KBH, KNM, KOP, LALT, LEI, LF, LOCM, LOJN, LPHI, MAT, MCEP, MCP, MDSY, MEP, MHR, MIXT, MN, MOV, MSL, MTSL, NMIH, NMR, NTI, NWPX, OCLS, OII, P, PACD, PANL, PCLN, PERI, PFBX, PFMT, PGI, PHIIK, PKO, PODD, PRIM, PZN, REXX, RLOG, RPXC, RS, RSH, RSO, RYAM, SB, SBLK, SFUN, SGM, SLF, SMTP, SODA, SPE, SPF, SRV, SSN, SSTK, SSYS, STAA, STRI, TAT, TD, TGB, TRC, TRMK, TWIN, TWMC, TZOO, UBS, UCP, USAP, UTEK, UTI, VECO, VIDE, VRA, VSCI, WB, WCC, WDR, WGO, WNR, WPCS, WPRT, WTW, WWE, XONE, XXII, YOKU, ZEUS, ZU

ETFs that traded to 52 week highs: FXI, ICF, IEF, IYR, URE, UUP, VNQ

ETFs that traded to 52 week lows: EPOL, EWO, FXE, FXS

6:26 am Taiwan Semi beats by NT$0.08, beats on revs; guides Q1 revs above consensus (TSM) : Reports Q4 (Dec) earnings of NT$3.08 per share, NT$0.08 better than the Capital IQ Consensus Estimate of NT$3.00; revenues rose 52.6% year/year to NT$222.52 bln vs the NT$220.22 bln consensus.

Gross margin for the quarter was 49.7%, operating margin was 39.6%, and net profit margin was 35.9%.Co issues upside guidance for Q1, sees Q1 revs of NT$ 221-224 bln vs. NT $205.11 bln Capital IQ Consensus.
Gross profit margin is expected to be between 48.5% and 50.5%; Operating profit margin is expected to be between 38.5% and 40.5%. TSMC further expects the capital expenditures for 2015 to be between US$11.5 billion and US$12 billion.

[ReturntoSender]

From Briefing.com: Monday was literally the calm before the storm. The stock market meandered its way through trading, processing the Greek election results that went in favor of the anti-austerity, and left wing, Syriza party, and the specter of a massive snowstorm due to hit the Northeast, beginning Monday evening.

The storm is expected to dump up to two feet of snow, and perhaps more, on major population centers that include New York City, Boston, and Hartford. The major exchanges have indicated they will be open for trading on Tuesday, yet participation is expected to be light as governors from the states in the affected region have urged people to stay home if possible.

The week began with modest gains for each of the major indices, although the S&P 500 information technology sector (-0.4%) did not contribute to the effort that saw the S&P 500 gain 0.3%. That was owed partly to a disappointing showing from Seagate Technology (STX 59.06, -4.92, -7.7%) following its quarterly results and outlook and some hesitation ahead of Microsoft's (MSFT 47.01, -0.17, -0.4%) report after Monday's close.

In an otherwise slow day of corporate news, some of the more notable sector news items included the following:

Seagate Technology (STX 59.06, -4.92, -7.7%) reported Q2 (Dec) non-GAAP earnings of $1.35 per share, in-line with expectations. Revenues rose 4.8% year/year to $3.7 bln. The company said on its conference call that pricing has been competitive, but that it believes it's a temporary issue and that it has not partaken in the price erosion. Sees march quarter revenue of "at least" $3.45 bln. Notes that it is generally optimistic about the 2015 outlook, tempered somewhat by the instability of the European business environment and commodity volatility. Says it would be more aggressive with its buyback program with the stock sub-60 and that it does not believe it will disappoint anyone with its capital return.

Western Digital (WDC 100.98, -5.12, -4.8%) dropped 4.8% in response to the results from peer company Seagate Technology. Western Digital is scheduled to report its quarterly results after the close on Tuesday, January 27.

IBM (IBM 156.36, +0.49, +0.3%) has been subject to recent speculation that it is on the cusp of laying off potentially more than 100,000 of its employees. That speculation was dismissed as baseless by the company, which reminded everyone it recently took a $600 million charge for a workforce rebalancing that will affect several thousand people.

EMC (EMC 28.33, -0.37, -1.3%) has moved the date it will publish fourth-quarter and full-year 2014 financial results by one day from January 28, 2015, to January 29, 2015, due to the expected winter storm

Microsoft (MSFT 47.01, -0.17, -0.4%): after Monday's close, the company reported Q2 (Dec) GAAP earnings of $0.71 per share, in-line with expectations on an 8.0% year/year increase in revenue to $26.47 bln that was slightly above expectations. The EPS figure include $0.06 in unfavorable items ($0.02 from restructuring/integration and $0.04 from an IRS tax adjustment). Devices and Consumer revenue grew 8% to $12.9 billion. Commercial revenue grew 5% to $13.3 billion. Separately, Microsoft announced its intention to complete the existing $40 bln share repurchase authorization by Dec 31, 2016. Shares of MSFT were trading 3.0% lower in after-hours action as of this post.

Texas Instruments (TXN 55.05, -0.01, -0.02%): after Monday's close, the company reported Q4 (Dec) GAAP earnings of $0.69 per share, in-line with analysts' average expectation. EPS included a $0.05 loss for a Federal Tax Credit and a $0.02 loss on a sale of assets. The quarter was in-line with the company's guidance of $0.64-0.74. Revenues rose 8.0% year/year to $3.27 bln, which was also in-line with estimates. For Q1, Texas Instruments sees EPS of $0.57-0.67 and revenues of $3.07-3.33 bln. The midpoint of its EPS estimate is in-line with expectations. TXN shares were down 0.5% in after-hours action. Some other developments outside the S&P 500 information technology sector included the following:

A Bloomberg real M&A column cited Atmel (ATML 8.61, +0.14, +1.7%) and Freescale (FSL 26.18, +0.19, +0.7%) as feasible takeover targets for Samsung Electronics.

AT&T (T 33.18, -0.19, -0.6%) has entered into an agreement with NII Holdings (NIHDQ) to acquire its wireless business in Mexico for US$1.875 bln, less the outstanding net debt of the business at closing, in a transaction pursuant to Section 363 of the U.S. Bankruptcy Code. Under terms of the agreement, AT&T will acquire companies, which operate under the name Nextel Mexico, holding all of NII's wireless properties in Mexico, including spectrum licenses, network assets, retail stores and ~3 million subscribers. AT&T expects the transaction to close in mid- 2015.

Analyst Action:

Yahoo! (YHOO 49.44, +0.49, +1.0%): FBR Capital lowers its target to $56 from $60 based on Alibaba's (BABA 103.99, +0.88, +0.9%) lower stock price since they last published.

Electronic Arts (EA 49.47, -0.32, -0.6%): downgraded to Buy from Strong Buy at Needham, target raised to $51 from $49... target raised to $55 from $45 at Credit Suisse; Outperform... target raised to $48 from $41 at MKM Partners; Neutral

Alliance Data (ADS 300.65, +2.11, +0.7%): target raised to $341 from $330 at Deutsche Bank; Buy

VeriSign (VRSN 55.81, -1.00, -1.8%) downgraded to Underperform from Neutral at Credit Suisse

Take-Two (TTWO 30.50, +0.64, +2.1%) target lowered to $31 from $34 at Credit Suisse; Neutral... Take-Two target raised to $35 from $30 at MKM Partners; Buy

Upcoming earnings reports on Tuesday:

Before the open: Corning (GLW 23.91, +0.06, +0.3%), Lexmark (LXK 40.02, +1.50, +3.9%)

After the close: Apple (AAPL 113.10, +0.12, +0.1%), Applied Micro (AMCC 6.22, +0.30, +5.1%), AT&T (T 33.18, -0.19, -0.6%), Electronic Arts (EA 49.47, -0.32, -0.6%), Freescale Semi (FSL 26.18, +0.19, +0.7%), Juniper Networks (JNPR 22.15, +0.14, +0.6%), VMware (VMW 82.46, -0.52, -0.6%), Western Digital (WDC 100.98, -5.12, -4.8%) and Yahoo! (YHOO 49.44, +0.49, +1.0%).

4:15 pm : The stock market began the new week on a quiet note with the Dow (unch), Nasdaq (+0.3%), and S&P 500 (+0.3%) settling near their flat lines. The small-cap Russell 2000 (+1.0%) outperformed, but the action took place against the backdrop of anemic trading volume as the East Coast braced for Winter Storm Juno.

Because of the incoming storm, a State of Emergency was already declared in Connecticut, New York, New Jersey, and Massachusetts, while the New York Stock Exchange announced plans to open and operate as usual on Tuesday. The NYSE operated as usual today, but that did not stop some participants from sitting the session out. Intraday volume was light, but a surge in late-afternoon activity brought the final tally (780 million) relatively close to the 50-day average (803 million).

The intraday lack of trading activity masked the fact that the weekend featured an important election in Greece. As expected, the anti-bailout Syriza party came away victorious, and despite failing to secure absolute majority, the party was able to form a coalition with Independent Greeks-a party that also opposes EU bailouts. So far, Syriza officials have been very careful when discussing the future of Greece with Yanis Varoufakis, who is expected to be named finance minister, saying a euro exit is not in the plans and that talks of a 'Grexit' should not be sensationalized.

Equity futures retreated at the Sunday open while the euro tested the 1.1100 level before bouncing into the 1.1250 area where it spent the bulk of the day. Similarly, equity futures erased the bulk of their losses ahead of the cash open.

The S&P 500 dipped below its 50-day moving average (2,047) in the early going, but the index found itself back above that level shortly thereafter. The S&P 500 returned to its flat line by 11:00 ET and traded within six points of that level for the remainder of the session.

Five of ten sectors registered gains with energy (+1.4%) holding the lead throughout the day. The sector narrowed its January decline to 1.8% while crude oil fell 1.0% to $45.12/bbl. Crude traded higher intraday after OPEC secretary general said prices could reach $200/bbl if producers choose not to increase supply, but selling into the pit close pressured the energy component into negative territory.

Elsewhere among cyclical sectors, financials (+0.5%) and consumer discretionary (+0.6%) outperformed while technology (-0.4%) struggled throughout the day. Notably, the discretionary sector received support from homebuilders after D.R. Horton (DHI 24.38, +1.28) reported better than expected results. The stock surged 5.5% while the iShares Dow Jones US Home Construction ETF (ITB 25.34, +0.52) gained 2.1%.

It wasn't all sunshine for discretionary shares as Mattel (MAT 26.64, -1.40) lost 5.0% after issuing cautious guidance and announcing the resignation of its Chief Executive Officer.

Also of note, the technology sector spent the day behind other groups due to relative weakness among heavily-weighted components like Google (GOOGL 536.72, -5.23), Oracle (ORCL 43.90, -0.29), Intel (INTC 35.80, -0.64), and Microsoft (MSFT 47.01, -0.17).

Over on the countercyclical side, health care (+0.5%) ended in the green while consumer staples (unch), telecom services (-0.4%), and utilities (unch) lagged throughout the session.

Treasuries registered modest losses with the 10-yr yield climbing two basis points to 1.82%.

Tomorrow, Durable Orders for December (Briefing.com consensus 0.5%) will be reported at 8:30 ET while the November Case-Shiller 20-city Index (consensus 4.3%) will be released at 9:00 ET. The Consumer Confidence report for January (consensus 96.0) will cross at 10:00 ET, alongside New Home Sales for December (consensus 450,000).


Nasdaq Composite +0.8% YTD
S&P 500 -0.1% YTD
Russell 2000 -0.3% YTD
Dow Jones Industrial Average -0.8% YTD

DJ30 +6.10 NASDAQ +13.88 SP500 +5.27 NASDAQ Adv/Vol/Dec 1850/1.58 bln/1041 NYSE Adv/Vol/Dec 2136/779.7 mln/952 3:40 pm :

Mar WTI crude oil rose as high as $46.35/barrel, but lost all of those gains in the last two hours of trading and fell into negative territory
Mar crude finished up the day $0.39 lower to $45.17/barrel
Natural gas futures were in the red all day with the Mar contract closing $0.10 lower at $2.88/MMBtu
Copper climbed higher all day and finished $0.04 higher at $2.54, easily off its $2.42/lb LoD
Precious metals were weak today as well with Feb gold losing $13 to $1279.40/oz and Mar silver declining $0.32 at $17.98/oz

4:35 pm Texas Instruments reports EPS in-line, revs in-line; guides Q1 EPS in-line, revs in-line (TXN) : Reports Q4 (Dec) GAAP earnings of $0.69 per share, in-line with the Capital IQ Consensus Estimate of $0.69. EPS includes a $0.05 loss for a Federal Tax Credit and a $0.02 loss on a sale of assets. This is in line with co's guidance of $0.64-0.74; revenues rose 8.0% year/year to $3.27 bln vs the $3.27 bln consensus. Gross Margins were 58.0%, in line with street expectations. Free cash flow for the year was up 18 percent from a year ago to $3.5 billion or 27 percent of revenue.

Co issues in-line guidance for Q1, sees EPS of $0.57-0.67 vs. $0.62 Capital IQ Consensus Estimate; sees Q1 revs of $3.07-3.33 bln vs. $3.19 bln Capital IQ Consensus Estimate.

4:18 pm Aehr Test Systems announces order for FOX(TM)-XP Multi-Wafer System evaluation (AEHR) : Co announced a purchase order from a leading IC manufacturer for a custom FOX Multi-Wafer Test System WaferPak Contactor and evaluation activities, with the customer evaluation plan including milestones for providing the WaferPak contactor, developing test plans and supporting correlation studies over the next two quarters.

4:17 pm Microsoft reports EPS in-line, revs in-line (MSFT) : Reports Q2 (Dec) GAAP earnings of $0.71 per share, in-line with the Capital IQ Consensus of $0.71; revenues rose 8.0% year/year to $26.47 bln vs the $26.27 bln consensus. EPS include $0.06 in unfavorable items ($0.02 from restructuring/integration and $0.04 from an IRS tax adjustment).

Devices and Consumer revenue grew 8% to $12.9 billion, with the following business highlights:Surface revenue of $1.1 billion, up 24%, driven by Surface Pro 3 and accessoriesOffice 365 Home and Personal subscribers increased to over 9.2 million, up 30% sequentially over prior quarterSearch advertising revenue grew 23%, with Bing U.S. market share at 19.7%, up 150 basis points over prior yearXbox console sales totaled 6.6 million units, with strong holiday season performancePhone Hardware revenue of $2.3 billion, with 10.5 million Lumia units sold driven by growth in affordable smartphonesWindows OEM Pro revenue declined 13%; revenue was impacted by the business PC market and Pro mix returning to pre-Windows XP end of support levels and by new lower-priced licenses for devices sold to academic customersWindows OEM non-Pro revenue declined 13%, with license growth from opening price point devicesCommercial revenue grew 5% to $13.3 billion, with the following business highlights:Commercial cloud revenue grew 114% driven by Office 365, Azure and Dynamic CRM Online, and is now on an annualized revenue run rate of $5.5 billionOffice Commercial products and services revenue declined 1%; transactional revenue was impacted by the continued transition to Office 365 and declines in commercial PCs following the XP refresh cycleServer products and services revenue grew 9%, with double-digit growth of SQL Server and System CenterWindows volume licensing revenue increased by 3%, with annuity revenue growth partially offset by declining transactional revenue.Co also announced its intention to complete the existing $40 bln share repurchase authorization by Dec 31, 2016.

4:10 pm Rambus beats by $0.01, reports revs in-line; guides Q1 revs below consensus; guides FY15 revs below consensus; announced 20 mln share repurchase program (RMBS) : Reports Q4 (Dec) earnings of $0.07 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.06; revenues fell 1.9% year/year to $72 mln vs the $72.47 mln consensus.

Co issues downside guidance for Q1, sees Q1 revs of $70-75 mln vs. $76.55 mln Capital IQ Consensus Estimate. Co issues downside guidance for FY15, sees FY15 revs of $300-315 mln vs. $316.57 mln Capital IQ Consensus Estimate. Co also announced that its Board of Directors has approved a new share repurchase program authorizing the repurchase of up to 20 million shares.

4:09 pm Sanmina beats by $0.04, reports revs in-line; guides Q2 EPS in-line, revs in-line (SANM) :

Reports Q1 (Dec) earnings of $0.61 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.57; revenues rose 15.4% year/year to $1.67 bln vs the $1.68 bln consensus.
Co issues in-line guidance for Q2, sees EPS of $0.50-0.55, excluding non-recurring items, vs. $0.52 Capital IQ Consensus Estimate; sees Q2 revs of $1.575-1.625 bln vs. $1.61 bln Capital IQ Consensus Estimate.

"Revenue for the first quarter was in line with our expectations and up 15 percent year over year. We executed well and delivered solid operating margin in spite of a challenging mix of business. Our outlook for the second quarter is slightly down sequentially primarily due to seasonality, and we believe demand will improve in the second half of the year. We remain optimistic in our ability to drive profitable growth in fiscal 2015."

4:05 pm Pericom Semi beats by $0.08, rev just below estimates; guides Q3 revs below consensus; initiates $0.06 quarterly dividend (PSEM) : Reports Q2 (Dec) earnings of $0.22 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.14; revenues rose 4.1% year/year to $33.3 mln vs the $33.64 mln consensus.

Co issues downside guidance for Q3, sees Q3 revs of $31.5-33.5 mln vs. $33.83 mln Capital IQ Consensus Estimate. non-GAAP gross margins are expected to be ~ 45.0%.

The Company announced today that Pericom's Board of Directors has approved the initiation of quarterly cash dividends, commencing with a dividend of $0.06 per share of common stock for the quarter ended December 27, 2014. The payment of this dividend will be made on February 24, 2015 to shareholders of record on February 10, 2015.

4:35 pm Texas Instruments reports EPS in-line, revs in-line; guides Q1 EPS in-line, revs in-line (TXN) : Reports Q4 (Dec) GAAP earnings of $0.69 per share, in-line with the Capital IQ Consensus Estimate of $0.69. EPS includes a $0.05 loss for a Federal Tax Credit and a $0.02 loss on a sale of assets. This is in line with co's guidance of $0.64-0.74; revenues rose 8.0% year/year to $3.27 bln vs the $3.27 bln consensus. Gross Margins were 58.0%, in line with street expectations. Free cash flow for the year was up 18 percent from a year ago to $3.5 billion or 27 percent of revenue.

Co issues in-line guidance for Q1, sees EPS of $0.57-0.67 vs. $0.62 Capital IQ Consensus Estimate; sees Q1 revs of $3.07-3.33 bln vs. $3.19 bln Capital IQ Consensus Estimate.

4:18 pm Aehr Test Systems announces order for FOX(TM)-XP Multi-Wafer System evaluation (AEHR) : Co announced a purchase order from a leading IC manufacturer for a custom FOX Multi-Wafer Test System WaferPak Contactor and evaluation activities, with the customer evaluation plan including milestones for providing the WaferPak contactor, developing test plans and supporting correlation studies over the next two quarters.

4:17 pm Microsoft reports EPS in-line, revs in-line (MSFT) : Reports Q2 (Dec) GAAP earnings of $0.71 per share, in-line with the Capital IQ Consensus of $0.71; revenues rose 8.0% year/year to $26.47 bln vs the $26.27 bln consensus. EPS include $0.06 in unfavorable items ($0.02 from restructuring/integration and $0.04 from an IRS tax adjustment).

Devices and Consumer revenue grew 8% to $12.9 billion, with the following business highlights:Surface revenue of $1.1 billion, up 24%, driven by Surface Pro 3 and accessoriesOffice 365 Home and Personal subscribers increased to over 9.2 million, up 30% sequentially over prior quarterSearch advertising revenue grew 23%, with Bing U.S. market share at 19.7%, up 150 basis points over prior yearXbox console sales totaled 6.6 million units, with strong holiday season performancePhone Hardware revenue of $2.3 billion, with 10.5 million Lumia units sold driven by growth in affordable smartphonesWindows OEM Pro revenue declined 13%; revenue was impacted by the business PC market and Pro mix returning to pre-Windows XP end of support levels and by new lower-priced licenses for devices sold to academic customersWindows OEM non-Pro revenue declined 13%, with license growth from opening price point devicesCommercial revenue grew 5% to $13.3 billion, with the following business highlights:Commercial cloud revenue grew 114% driven by Office 365, Azure and Dynamic CRM Online, and is now on an annualized revenue run rate of $5.5 billionOffice Commercial products and services revenue declined 1%; transactional revenue was impacted by the continued transition to Office 365 and declines in commercial PCs following the XP refresh cycleServer products and services revenue grew 9%, with double-digit growth of SQL Server and System CenterWindows volume licensing revenue increased by 3%, with annuity revenue growth partially offset by declining transactional revenue.Co also announced its intention to complete the existing $40 bln share repurchase authorization by Dec 31, 2016.

4:16 pm Closing Market Summary: Energy Sector Paces Quiet Advance (:WRAPX) : The stock market began the new week on a quiet note with the Dow (unch), Nasdaq (+0.3%), and S&P 500 (+0.3%) settling near their flat lines. The small-cap Russell 2000 (+1.0%) outperformed, but the action took place against the backdrop of anemic trading volume as the East Coast braced for Winter Storm Juno.

Because of the incoming storm, a State of Emergency was already declared in Connecticut, New York, New Jersey, and Massachusetts, while the New York Stock Exchange announced plans to open and operate as usual on Tuesday. The NYSE operated as usual today, but that did not stop some participants from sitting the session out. Intraday volume was light, but a surge in late-afternoon activity brought the final tally (780 million) relatively close to the 50-day average (803 million).

The intraday lack of trading activity masked the fact that the weekend featured an important election in Greece. As expected, the anti-bailout Syriza party came away victorious, and despite failing to secure absolute majority, the party was able to form a coalition with Independent Greeks-a party that also opposes EU bailouts. So far, Syriza officials have been very careful when discussing the future of Greece with Yanis Varoufakis, who is expected to be named finance minister, saying a euro exit is not in the plans and that talks of a 'Grexit' should not be sensationalized.

Equity futures retreated at the Sunday open while the euro tested the 1.1100 level before bouncing into the 1.1250 area where it spent the bulk of the day. Similarly, equity futures erased the bulk of their losses ahead of the cash open.

The S&P 500 dipped below its 50-day moving average (2,047) in the early going, but the index found itself back above that level shortly thereafter. The S&P 500 returned to its flat line by 11:00 ET and traded within six points of that level for the remainder of the session.

Five of ten sectors registered gains with energy (+1.4%) holding the lead throughout the day. The sector narrowed its January decline to 1.8% while crude oil fell 1.0% to $45.12/bbl. Crude traded higher intraday after OPEC secretary general said prices could reach $200/bbl if producers choose not to increase supply, but selling into the pit close pressured the energy component into negative territory.

Elsewhere among cyclical sectors, financials (+0.5%) and consumer discretionary (+0.6%) outperformed while technology (-0.4%) struggled throughout the day. Notably, the discretionary sector received support from homebuilders after D.R. Horton (DHI 24.38, +1.28) reported better than expected results. The stock surged 5.5% while the iShares Dow Jones US Home Construction ETF (ITB 25.34, +0.52) gained 2.1%.

It wasn't all sunshine for discretionary shares as Mattel (MAT 26.64, -1.40) lost 5.0% after issuing cautious guidance and announcing the resignation of its Chief Executive Officer.

Also of note, the technology sector spent the day behind other groups due to relative weakness among heavily-weighted components like Google (GOOGL 536.72, -5.23), Oracle (ORCL 43.90, -0.29), Intel (INTC 35.80, -0.64), and Microsoft (MSFT 47.01, -0.17).

Over on the countercyclical side, health care (+0.5%) ended in the green while consumer staples (unch), telecom services (-0.4%), and utilities (unch) lagged throughout the session.

Treasuries registered modest losses with the 10-yr yield climbing two basis points to 1.82%.

Tomorrow, Durable Orders for December (Briefing.com consensus 0.5%) will be reported at 8:30 ET while the November Case-Shiller 20-city Index (consensus 4.3%) will be released at 9:00 ET. The Consumer Confidence report for January (consensus 96.0) will cross at 10:00 ET, alongside New Home Sales for December (consensus 450,000).

Nasdaq Composite +0.8% YTD
S&P 500 -0.1% YTD
Russell 2000 -0.3% YTD
Dow Jones Industrial Average -0.8% YTD

4:10 pm Rambus beats by $0.01, reports revs in-line; guides Q1 revs below consensus; guides FY15 revs below consensus; announced 20 mln share repurchase program (RMBS) : Reports Q4 (Dec) earnings of $0.07 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.06; revenues fell 1.9% year/year to $72 mln vs the $72.47 mln consensus.

Co issues downside guidance for Q1, sees Q1 revs of $70-75 mln vs. $76.55 mln Capital IQ Consensus Estimate. Co issues downside guidance for FY15, sees FY15 revs of $300-315 mln vs. $316.57 mln Capital IQ Consensus Estimate. Co also announced that its Board of Directors has approved a new share repurchase program authorizing the repurchase of up to 20 million shares.

4:09 pm Sanmina beats by $0.04, reports revs in-line; guides Q2 EPS in-line, revs in-line (SANM) :

Reports Q1 (Dec) earnings of $0.61 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.57; revenues rose 15.4% year/year to $1.67 bln vs the $1.68 bln consensus.
Co issues in-line guidance for Q2, sees EPS of $0.50-0.55, excluding non-recurring items, vs. $0.52 Capital IQ Consensus Estimate; sees Q2 revs of $1.575-1.625 bln vs. $1.61 bln Capital IQ Consensus Estimate.
"Revenue for the first quarter was in line with our expectations and up 15 percent year over year. We executed well and delivered solid operating margin in spite of a challenging mix of business. Our outlook for the second quarter is slightly down sequentially primarily due to seasonality, and we believe demand will improve in the second half of the year. We remain optimistic in our ability to drive profitable growth in fiscal 2015."

4:05 pm Pericom Semi beats by $0.08, rev just below estimates; guides Q3 revs below consensus; initiates $0.06 quarterly dividend (PSEM) : Reports Q2 (Dec) earnings of $0.22 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.14; revenues rose 4.1% year/year to $33.3 mln vs the $33.64 mln consensus.

Co issues downside guidance for Q3, sees Q3 revs of $31.5-33.5 mln vs. $33.83 mln Capital IQ Consensus Estimate. non-GAAP gross margins are expected to be ~ 45.0%.

The Company announced today that Pericom's Board of Directors has approved the initiation of quarterly cash dividends, commencing with a dividend of $0.06 per share of common stock for the quarter ended December 27, 2014. The payment of this dividend will be made on February 24, 2015 to shareholders of record on February 10, 2015.

1:08 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

MPEL (24.49 +6.66%): Upgraded to Buy from Hold at Union Gaming.
ETE (58.03 +7.44%): Regency Energy Partners LP Comm (RGP) and Energy Transfer Partners (ETP) entered into a definitive merger agreement valued at $18 bln; Energy Transfer Equity, owns the general partner and 100% of the incentive distribution rights of both Regency and ETP; ETE also approved an increase in its quarterly dividend.
HCA (72.87 +6.16%): The co will replace Safeway (SWY) in the S&P 500 after the close of trading today.

Large Cap Losers

STX (58.13 -9.14%): Reported Q2 (Dec) non-GAAP earnings of $1.35 per share, in-line with the Capital IQ Consensus of $1.35; revenues rose 4.8% year/year to $3.7 bln vs the $3.74 bln consensus; gross margin 28.2%; Sees MarQ revenue of 'at least' $3.45 bln, Capital IQ consensus $3.59 bln.
GWW (235.97 -4.07%): Misses Q4 consensus estimates by $0.03, reported revs in-line; lowered FY15 guidance on FX and Canadian macro environment.
RCI (36.51 -3.36%): Downgraded to Hold from Buy at Canaccord Genuity.

Mid Cap Gainers

MWV (51.87 +15.16%): Announced that they have entered into a definitive combination agreement with Rock-Tenn (RKT) to create a leading global provider of consumer and corrugated packaging in a transaction with a combined equity value of $16 bln.
SEMG (69.7 +8.8%): Sandell Asset Management releases letter to the Board SemGroup; Believes intrinsic value of shares to be up to $104/share in a takeout.
DXCM (61.78 +6.63%): Announced that it has received FDA approval for its Dexcom G4 Platinum Continuous Glucose Monitoring System with Share.

Mid Cap Losers

NBG (1.54 -8.33%): Weakness in several Greek stocks following the election of anti-austerity party Syriza.
BKD (34 -7.38%): Announced it sees Q4 CFFO at $0.53 vs $0.67 Capital IQ Consensus Est; Co lowered 2015 CFFO prelim excluding items, to $2.60 to $2.75, replacing its previously announced preliminary range of $2.95 to $3.10 vs $3.05 Consensus.
MAT (26.9 -4.07%): Issued downside guidance for Q4 (Dec), sees EPS of $0.52, excluding non-recurring items vs. $0.96 Capital IQ Consensus Estimate; sees Q4 (Dec) revs of $1.99 bln vs. $2.13 bln Capital IQ Consensus Estimate; CEO Bryan Stockton resigns.

[ReturntoSender]

Another Profits Recession Is Underway - Implications For The Stock Market

Feb. 9, 2015 7:39 AM ET

http://seekingalpha.com/article/2897786-another-profits-recession-is-underway-implications-for-the-stock-market?ifp=0

[ReturntoSender]

InvestmentHouse Weekend Market Summary - Indices at New Highs. Time For a Pullback?

http://www.investmenthouse.com/frblog.php

- A Greece deal helps stocks end the week with a Grecian rally.
- SP500, DJ30 end their tests, surge with the Dow at an all-time high, NASDAQ that much closer to its 2000 peak
- Leadership from all areas contributes to more gains.
- Jobless claims: lower than goodness, but starting to trend higher.
- Experts fret over why consumers are not spending. Rather obvious.
- Indices at new highs. Time for a pullback? Seems logical, but maybe not.

On again, off again Europe and Greece were finally on. Greece received a 4 month emergency extension of sorts, but it was really a bad deal for Greece. After all the campaign promises, all the post-election tough rhetoric, in the end Greece caved, fearing having to go it alone sans the EU. The deal was so bad the German Kaiser of Finance quipped he would not like to be the one explaining the deal to the Greek voters. Hmm. Sounds like the same situation for the republicans after the 2014 election now that they are going to uphold absolutely none of their election promises. Ironic isn't it? The republicans are playing not to lose the 2016 election, but in so doing they are guaranteeing their defeat. They, as with so many people, will never learn from history.

Stocks started the session lower because there was no Greece deal. An EU office said there would most likely not be a deal at the meeting, understandable if he didn't feel Greece would cave like a ditch dug in mud.

Moreover, the US rig count fell again, dropping by 48 rigs to 1310 total in the US. A long way to go to get to the level T. Boone Pickens said it would take to turn prices back up. There is SO MUCH speculation about how this time things are different, how oil and gas companies are so efficient that they can 'turn it on or turn it off' as necessary. What a crock of crapola.

Boone Pickens knows the industry better than anyone alive. More than that, it is just economics: prices are way down, rigs are way down, but production is still increasing. How can that be possible the television experts query with high-pitched whiney voices? Here's how: economics. Prices are down, the producers fear they could go lower, so they are producing like crazy to make as much of their capital investment back as possible before things really hit the skids. Thus production is increasing, driving inventories higher, and of course putting downward pressure on prices. They will do it until they can't. Then the game is over and a lot of M&A starts as the companies with money buy those who need a bailout. Oh yes, and don't forget the lawsuits that will surge due to breach of contract claims, etc. Ah, the good old days of the 1980's once again for the lawyers. Heck, I might put the shingle back out and make some easy money with these cases. Been there, done that, have the experience of the cleanup after the 1980's. Money to be picked up off the ground. But, alas, I digress. And, there is NO WAY I would go back to that again. Love being in court and arguing, hate the prep work.

So stocks had no reason to be happy and they started lower. But it did not last. As we suspected, within the first hour they bottomed, specifically at the 30 minute mark with a big doji with tail. That started stocks upside and they climbed the entire session.

Thus when the announcement came that a Greece deal was in the bag, stocks didn't seem to really care. They continued higher for sure, but there was no massive new spurt. There was a last hour ramp to session highs, but that was an expiration thing. The indices broke to higher highs when many felt they would not and placed bets accordingly. As the indices did break to higher highs that meant those bets had to be rolled out or otherwise covered. The result was a last hour short squeeze that ensured DJ30's new all-time high.

SP500 12.85, 0.61%
NASDAQ 31.27, 0.63%
DJ30 154.67, 0.86%
SP400 0.76%
RUTX 0.32%
SOX 0.61%

VOLUME: NYSE +20%, NASDAQ +10%. Higher volume thanks to expiration, but even with relative large jumps it was not enough to push either exchange volume to average. A very anemic expiration week re volume.

A/D: 2.1:1 NYSE, 1.2:1 NASDAQ. Rather incredibly puny breadth given the percentage gains. Of course with DJ30 leading and NASDAQ 100 up easily more than NASDAQ overall, it was clearly a large cap day. As such weaker breadth is understandable. Not great, but understandable.

So DJ30 joined ranks with SP500, SP400, RUTX at new all-time highs. NASDAQ is not there yet but came a bit closer. SOX is nowhere near a new all-time high, but it has been a dog for a decade and thus we have to cut it some slack. Heck, that makes it one of the best plays there is, at least it has been in terms of leadership.

New highs mean some worry, others don't. Sure there will be at test. Sure there are valuations that are stretched. Sure this is built on a house of cards, a house of sticks, etc. Valuations, however, are no measure of a market run; they only matter at a market bottom. Yes there will be a test, but when the market shows it doesn't have a fear of flying, it behooves us to allow ourselves to go along for the ride. Keep an eye on leaders and on the exits if need be, but definitely go along for the ride.


THE NEWS

Jobless Claims are better overall but the trend is a bit worrisome.

Thursday saw jobless claims fall back below 300K, allowing a collective sigh of relief from the economic cheerleaders. Certainly the trend has been lower over the past year. Or has it? Overall, yes. In numbers, yes. But the last several months are worrisome.

Since October continuing claims and jobless claims are on the rise:




The drop in oil prices has hammered oil producing states:



What happened in October? QE ended. Coincidence or is there a connection? Hard to draw conclusions yet, but something we are going to watch closely. Wonder if the Fed is watching as well?


Experts puzzle as to why consumers are not increasing spending.

Sometimes you have to wonder how people with so much education say such stupid things. You wonder but you know why: they are so married to what they learned from the books that they cannot divorce their thoughts from their theories even when reality screams otherwise.

Case in point: all this week experts were on CNBC, Fox Business, and Bloomberg wondering why consumers were just not spending all of this new found money from the improved jobs market and of course the declines in energy costs.

Putting aside that a lot of the spending that is occurring is due to forced insurance outlays thanks to the ACA, the reasons are rather clear and rather simple.

First, given that many people gave up big engine vehicles in order to simply be able to drive to work with gasoline prices over $3/gallon, the savings from gasoline price drops are just not that dramatic. $10 a week saved with a smaller engine car isn't going to tip the balance of retail spending, particularly when you are forced to spend a rather huge chunk of your earnings on health insurance you may or may not want.

Second, what about that jobs market? An economy creating millions of hourly, low-wage jobs is not the same as one creating millions of well-paying fulltime jobs. So, you get a job and you are paid minimum wage or a bit more. You only get to work 29 hours a week, however, because the ACA says if you work more your employer has to provide everyone expensive insurance or pay a fine.

How on EARTH can you equate, as the experts are, a 29 hour per week low paying service job to a fulltime job someone enjoyed before the economy tanked? A person in one of these jobs, hell, even TWO of these jobs is not 'back' to where he or she was pre-crash. It is the height of absurdity to even consider this to be the case. Apparently to these experts one job is fungible with another. Yet we know that is not the case. So, we have to hear idiotic commentary from ivory tower idiots, spreading misinformation to whoever listens. Of course with the financial station's continually waning viewership, maybe that is not doing any harm. It certainly is not helping those that do watch.



THE MARKET

CHARTS

DJ30: A new all-time high as the Dow pushed past the late December prior peak. Good jump in volume though it was expiration so it doesn't mean that much. The move, however, was after a nice little 1-2-3 pullback just below the prior high. Good test, good rest, and on its way higher. Now the key is to drive it home and not just give it right back.

NASDAQ: NASDAQ has already put in a very solid breakout (gapped higher). A solid six session run since the breakout, 8 straight upside sessions all told. Looked to be slowing, but then on Friday it punched it and put in the best move in four sessions. Not a broad move but a large cap move. Not the best action and while Friday was nice, it now has to show it can sustain it versus the inevitable breakout test.

SP500: Similar to DJ30, the large caps jumped higher after a three day pause just after the initial breakout to a new high. Good price action though volume lagged, and MACD is thus far lagging. Doesn't mean it will stay that way but it is lagging the price move a bit. That, however, is not the determinative factor. Some volume would be nice to support the move.

SOX: Very similar action to SP500, i.e. breaking to a higher high, immediately moving laterally, followed by a Friday break upside. Excellent action as the chips, already a leader, continue to show their strength.

SP400: The midcaps made the first break higher to a new high. They have not slowed much since though they did test immediately upon the break. Hmmm. Who else did that? Perhaps that means SP500, SOX still have plenty of move left in them. Anyway, while not as straight up as NASDAQ, SP400 broke sharply higher Friday.

RUTX: Not blowing things away, but a steady climb up the 10 day EMA. A bit volatile Friday, reaching down to the 10 day EMA, but a nice recovery. Solid.


LEADERSHIP:

Financial: Some good action. JPM jumped sharply after a nice test of the break over the 200 day SMA. C showing similar action, jumping off the 200 day SMA test. MA surging to a new high as V jumped back up.

Drugs/Biotech: Another good day. TXMD surged for us. CELG gapped and ran higher to the January peak, moving on strong trade.

Social: Another good session on top of Thursday's run. FB added to its big move. GRUB surged upside off a test. TWTR was not as spectacular, but solid.

Chips: Some up, some down Friday, but overall a solid week. AFOP. MTSN surging. CREE enjoying a solid week and Friday.

Software: FEYE exploding higher still. SPLK continues its run.

Heavy machinery: TEX surging in a turnaround. B exploded upside.

Big Names: AMZN broke higher off a test. AAPL jumped higher to a new high as well. GOOG tested back to the 10 day EMA; still in position but needs to make this move.


MARKET STATISTICS

NASDAQ
Stats: +31.27 points (+0.63%) to close at 4955.97
Volume: 1.725B (+9.87%)

Up Volume: 1.1B (+223.7M)
Down Volume: 630.87M (-67.69M)

A/D and Hi/Lo: Advancers led 1.15 to 1
Previous Session: Advancers led 1.15 to 1

New Highs: 132 (+4)
New Lows: 30 (+4)

S&P
Stats: +12.85 points (+0.61%) to close at 2110.3
NYSE Volume: 830.6M (+19.82%)

A/D and Hi/Lo: Advancers led 2.13 to 1
Previous Session: Decliners led 1.09 to 1

New Highs: 164 (+18)
New Lows: 14 (0)

DJ30
Stats: +154.67 points (+0.86%) to close at 18140.44


SENTIMENT INDICATORS

VIX: 14.3; -0.99
VXN: 14.67; -0.77
VXO: 14.05; -0.97

Put/Call Ratio (CBOE): 0.79; -0.1

Bulls and Bears:

Bulls: 56.6% versus 52.5% versus 49.0% versus 53.1% versus 49.0%. Definite uptrend, definite surge the past two weeks from 49%. Approaching the 60%ish level that has terminated most market rallies the past few years.

Bears: 14.1% versus 15.2% versus 16.3% versus 16.3% versus 17.4% versus 16.3% versus 15.2%. Plunging back to the lows though still overall in a very narrow range. That is not a good thing, the narrow range, because there is an overall lack of bears in the market.

Theory: When everyone is bullish and has put all their capital to work, where does the ammunition to drive the market come from? There is always new money to start a new year. After that is used will more money be coming? That is the question.




Bulls: 56.6%
52.5% versus 49.0% versus 53.1% versus 49.0% versus 48.0% versus 50.5% versus 56.4% versus 52.5% versus 49.5% versus 51.5% versus 53.4% versus 56.5% versus 56.4% versus 55.5% versus 54.6% versus 47.0% versus 35.3% versus 37.8% versus 45.5% versus 47.5% versus 48.0% versus 52.5% versus 57.6% versus 56.1% versus 52.5%

Background: Last undercut 35%, the threshold for bullishness, in early June 2012.

Bears: 14.1%
15.2% versus 16.3% versus 16.3% versus 17.4% versus16.3% versus 15.2% versus 14.9% versus 15.8% versus 14.9% versus 14.8% versus 13.9% versus 13.8% versus 14.9% versus 14.8% versus 15.1% versus 16.3% versus 18.2% versus 17.3% versus 14.1% versus 15.1% versus 15.3% versus 15.2% versus 14.1% versus 13.3% versus 15.1% versus 16.2%


Background: Over 35% for bears is the threshold to be really be a good upside indicator. The best indication is when bears cross up through bulls as the two merge. Right now bulls are coming back down from the 60 level that has consistently marked market tops over the past two years. The rapid decline in progress is pushing the bulls/bears lines toward one another. Still far from a cross with bulls falling faster than bears are rising, but bears are warming up to the notion of market weakness.


OTHER MARKETS

Bonds (10 year): 2.09%.
2.11% versus 2.08% versus 2.14% versus 2.03% versus 1.99% versus 1.98% versus 1.99% versus 1.95% versus 1.94% versus 1.81% versus 1.77% versus 1.78% versus 1.68% versus 1.67% versus 1.76%

Holding support the past week but that is about all.


Oil: 50.82, -1.01. 51.83, -0.29. Trying to bounce off a test of the move. Nice inverted head and shoulders forming.


Gold: 1204.60, -3.00. Broke down last week, or more accurately, broke lower in its continuing downtrend.


$/JPY: 119.08 versus 119.04 versus 118.70 versus 119.34 versus 118.83 versus 118.915 versus 120.26 versus119.48 versus 118.62 versus 118.987 versus 117.56 versus 117.21 versus 117.58 versus 117.52 versus 117.40 versus 118.30 versus 117.54 versus 117.88 versus 118.45

Flat-lining along the 50 day EMA. Again, it is now over that level versus under it as in January. Now, however, the pair is in an almost three month lateral move.


Euro/$: 1.1379 versus 1.1366 versus 1.1398 versus 1.14 versus 1.1390 versus 1.1409 versus 1.1294 versus 1.1315 versus 1.1324 versus 1.1318 versus 1.1474 versus 1.1387 versus 1.1481 versus 1.1336 versus 1.1290 versus 1.1318 versus 1.1287 versus 1.1375 versus 1.1263 versus 1.1204 versus 1.1366 versus 1.1590 versus 1.1550 versus 1.1543 versus 1.1609 versus 1.1789 versus 1.1764 versus 1.1832 versus 1.1842 versus 1.1789 versus 1.1839 versus 1.1890 versus 1.1934 versus 1.2002 versus 1.2099 versus 1.2156

Still a very nice 5-week pennant, holding the 20 day EMA the past week and in great position to move higher. Just hasn't done it.


MONDAY

New highs all around last week thanks to DJ30 making the break higher Friday. NASDAQ on a two week tear straight up. SP400 on a week-plus upside move. With all of the big moves you can get uncomfortable with the upside. The pundits are split. Some say watch out, others say the move is just getting started.

Both could be right, at least to degrees. Impressive run to higher highs and new all-time highs; these kind of breakouts typically lead to tests. But SP500 and DJ30 just put in tests and are now breaking higher. Ditto SOX. NASDAQ and SP400 are still moving higher and seem overdone near term. They are ripe for a test while SP500 and DJ30 and even SOX move higher.

Or not. They very well can continue higher. Maybe THEY take a short 2 to 3 day respite as well and then continue. Consider NASDAQ is just 180 or so points from its all-time high. That type of milepost, particularly one so discussed, so famous as the NASDAQ all-time high, can act as a magnet pulling prices to it similar to a moth drawn to a flame. Thus despite being perhaps overbought near term, there is a tremendous pull on NASDAQ toward that high.

A lot of the news is out: jobs, earnings, FOMC, Greece/Europe. There can always be stories that upset the move, but right now the market is moving in something of a sweet spot. There are always pauses, tests, and pullbacks; just saw some, right? And . . . the move overall continues.

This may just be one of those situations. The leaders keep setting up and breaking higher. Financials are coming around. Energy slowed but is still moving upside. Industrial equipment is turning the corner upside, e.g. TEX. If new leaders continue to step up, the market has the support it needs to keep making the breaks higher. Just look at SP500 and DJ30 breaking upside: industrials, financials breaking higher as well. Hand in hand.

Thus we will continue looking for plays to take advantage of a further upside moves.

Have a great weekend!


SUPPORT AND RESISTANCE

NASDAQ: Closed at 4955.97

Resistance:
5132.52 is the 3/2000 all0time high

Support:
The 10 day EMA at 4864
4815 is the December 2014 prior market peak
4811 is the November 2014 peak (intraday)
4774 is the January high
4751 is the January 2015 lower high
The 50 day EMA at 4739
4631 is the October 2014 upside gap point
4610 is the September 2014 post-bear market high.
4566 is the lower gap point from late October
4563 and 4567 are the January lows
4547 is the December low
The 200 day SMA at 4518
4486 is the July 2014 high
4372 is the March 2014 high
The August low at 4321
4316 is the lower gap point from October 2014
4289 is the July 2000 recovery high
4277 is the March lower gap point
4246.55 is the January 2014 peak


S&P 500: Closed at 2110.30

Resistance:
2155 is the December 2012 up trendline

Support:
2094 is the all-time high
2091 is the lower trendline from 11/2012
2079 is the intraday all-time high from November
2076 is the all-time high from November
2062 is the January 2015 lower high
The 50 day EMA at 2050
2011 is the September prior all-time high
1991 is the July 2014 high
The 200 day SMA at 1988
1972 is the December 2014 low
1905 is the August 2014 low
1902 from early May was the intraday all-time high.
1897 is the prior all-time high hit in April 2014
1883.57 is the early March high.
The December and January highs at 1848
The April 2014 low at 1814
1808 is the November and December 2013 twin peaks
1775.22 is the October prior all-time high


Dow: Closed at 18,140.44

Resistance:

Support:
18,104 is the December all-time high
17,991 is the early December interim
17,923 is the January 2015 lower high
The 50 day EMA at 17,691
17,351 is the September 2014 all-time high.
The 200 day SMA at 17,158
17,152 is the mid-July post bear market high
17,068 is the early July 2014 peak
17067 is the December 2014 low
16,970 is the June 2014 former all-time high
16,946 is the June 2014 peak
16,736 is the penultimate all-time high from May 2014
16,632 is the April 2014 all-time high
16,589 is the December 2013 all-time high
16,506 is the March 2014 peak
16,341 is the May low
16,334 is the August 2014 low
16,257 is the January 2014 low
16,179 is the November 2013 peak.
15,855 is the October 2014 low
15,739 is the December 2013 low


ECONOMIC CALENDAR

February 23 - Monday
Existing Home Sales, January (10:00): 4.95M expected, 5.04M prior

February 24 - Tuesday
Case-Shiller 20-city, December (9:00): 4.3% expected, 4.3% prior
Consumer Confidence, February (10:00): 99.3 expected, 102.9 prior

February 25 - Wednesday
MBA Mortgage Index, 02/21 (7:00): -13.2% prior
New Home Sales, January (10:00): 471K expected, 481K prior
Crude Inventories, 02/21 (10:30): -7.716M prior

February 26 - Thursday
Initial Claims, 02/21 (8:30): 290K expected, 283K prior
Continuing Claims, 02/14 (8:30): 2400K expected, 2425K prior
CPI, January (8:30): -0.6% expected, -0.4% prior
Core CPI, January (8:30): 0.1% expected, 0.0% prior
Durable Orders, January (8:30): 1.8% expected, -3.3% prior (revised from -3.4%)
Durable Goods -ex tr, January (8:30): 0.6% expected, -0.8% prior
FHFA Housing Price I, December (9:00): 0.8% prior
Natural Gas Inventor, 02/21 (10:30): -111 bcf prior

February 27 - Friday
GDP - Second Estimate, Q4 (8:30): 2.1% expected, 2.6% prior
GDP Deflator - Second, Q4 (8:30): 0.0% expected, 0.0% prior
Chicago PMI, February (9:45): 58.0 expected, 59.4 prior
Michigan Sentiment -, February (10:00): 93.8 expected, 93.6 prior
Pending Home Sales, January (10:00): -3.7% prior
Pending Home Sales, January (10:00): 2.2% expected, -3.7% prior

[ReturntoSender]

From Briefing.com: Fed Chair Yellen continued her economic and monetary policy testimony before the House Financial Services Committee on Wednesday. As expected, that testimony didn't produce any surprises.

The biggest surprise arguably on Wednesday was the showing of oil prices. They traded below $49.00/bbl in front of the weekly inventory report from the Energy Information Administration and then rallied back to settle up $1.75 at $51.01/bbl despite the indication that there was another large build (8.4 mln barrels) in crude stockpiles. The favorable price action in the face of bearish data undoubtedly triggered some short-covering activity that aided the rebound effort.

Unlike oil prices, the S&P 500 information technology sector (-0.7%) didn't show a lot of vitality on Wednesday. It struggled under the weight of Apple (AAPL 128.78, -3.36, -2.6%), which fell prone to profit-taking efforts, and Hewlett-Packard (HPQ 34.67, -3.82, -9.9%), which was discarded after a disappointing earnings report and outlook.

Notable news items from sector components included the following:

Accenture (ACN 90.60, -0.25, -0.3%): Announces acquisition of Gapso, an advanced analytics services and solutions provider based in Brazil; details not disclosed

Akamai Technologies (AKAM 69.43, -0.69, -1.0%): Announced a partnership with Solid State Networks, a provider of game deployment solutions and resources that provide game developers and publishers with a platform to quickly and reliably deploy, deliver and manage online games.

Apple (AAPL 128.78, -3.39, -2.6%): Smartflash confirms it won a $532.9 million patent infringement verdict against Apple

Broadcom (BRCM 44.99, -0.32, -0.7%): Introduced a new smartwatch platform that reduces power consumption for Android Wear devices.

Citrix Systems (CTXS 64.14, +0.49, +0.8%): Announces extension of collaboration with Google by providing XenMobile support for Android for Work

F5 Networks (FFIV 118.83, -0.76, -0.6%): Announced Guardian Fast Start, a new global channel program focused on technical enablement and designed to empower F5 UNITY Partners to deliver advanced F5 implementations to customers.

First Solar (FSLR 58.54, +3.84, +7.0%): Reported Q4 (Dec) earnings of $1.89 per share, well ahead of analysts' average expectation. Revenues rose 31.3% year/year to $1.01 bln, which was shy of estimates. For Q1, sees EPS of ($0.35) to ($0.25), excluding non-recurring items, and revenues of $550-650 mln. The company said financial guidance for revenue, earnings, and operating cash flow for the first quarter is lower relative to results in prior periods primarily due to the completion of the Desert Sunlight and Topaz projects and the retention of projects on balance sheet in relation to the announced plan to pursue a joint YieldCo vehicle with SunPower. This is also expected to weigh on financial results in future quarters over the near-term. However, the Company believes this strategy will generate significant value for shareholders over the long-term.

Google (GOOG 543.86, +7.77, +1.5%): Introduces Google Flights to help plan trips

Hewlett-Packard (HPQ 34.67, -3.82, -9.9%): Reported Q1 (Jan) earnings of $0.92 per share, excluding non-recurring items, a penny better than expected. Revenues fell 4.7% year/year to $26.84 bl, which was below expectations. Revenue was either flat or down across its four divisions. For Q2, sees EPS of $0.84-0.88 FX impact $0.09), excluding non-recurring items, which is below expectations. For FY15, lowers EPS to $3.53-3.73 (including a $0.30 FX headwind), excluding non-recurring items, from $3.83-4.03. HP expects full year revenue to decline 4-6% (~$104.8-107.0 bln) and free cash flow of ~$3.5-4.0 bln (lowered from prior guidance of $6.5-7.0 bln).

Microchip Technology (MCHP 51.35, -0.18, -0.4%): Announced it strengthened its commitment to the industrial space by licensing the EtherCAT technology for its next-generation Ethernet controllers. Separately, filings indicated that the CEO sold 150,372 shares at $50.76-51.18 worth ~$7.7 mln

Seagate Technology (STX 60.01, -0.69, -1.1%): Filings indicated the CEO sold 50,000 shares at $61.87 worth ~$3.1 mln

TE Connectivity (TEL 72.16, +0.57, +0.8%): Announced that its wholly owned subsidiary, Tyco Electronics Group S.A., has priced an offering of 550 million aggregate principal amount of its 1.100% senior notes due 2023. The 550 million senior notes due 2023 will be issued at a price of 99.680% and will have a stated interest rate of 1.100% per year, payable annually. TE Connectivity intends to use the net proceeds of this offering for general corporate purposes.

Yahoo! (YHOO 44.43, +1.05, +2.4%): Benefitted from speculation of a possible Yahoo! Japan (YAHOY) spin-offIn industry news, Reuters reported that China will no longer approve state purchases from companies including Apple, Cisco, and Citrix Systems due in part reportedly to Western cybersurveillance concernsElsewhere in the technology space:

Amazon.com (AMZN 385.48, +6.89, +1.8%): Digitimes, citing an Economic Daily News report, indicated that Amazon has lowered tablet orders to Compal Electronics and Quanta Computer by 30%.

Applied Micro Circuits (AMCC 5.11, +0.41, +8.7%): CEO disclosed purchase of 10,000 shares at $4.95 worth ~$50K (transaction date 2/25)

Aruba Networks (ARUN 22.24, +3.86, +21.0%): Spiked on reports suggesting Hewlett Packard is in discussions to purchase Aruba Networks

BlackBerry (BBRY 10.52, +0.25, +2.6%): Announces it is working with Google to enable BES12, a cross-platform EMM solution by BlackBerry to manage devices equipped with Android for Work FireEye (FEYE 45.39, +1.42, +3.2%): Singapore Telecommunications and FireEye launched their first joint Advanced Security Operations Centre. The new ASOC combines FireEye's leading security expertise with SingTel's deep info-communications capabilities and extensive regional data infrastructure.

Integrated Device Technology (IDTI 20.79, -0.28, -1.2%): Announced that it has developed with NVIDIA and Orange Silicon Valley a supercomputing platform that can analyze 4G to 5G base station bandwidth data in real time, enabling network operators to monetize the voluminous data flowing through their communications systems.

SunEdison (SUNE 22.85, -0.44, -1.9%): Announced a plan to electrify 20 million people in underserved communities around the world. The initiative will be led by SunEdison Social Innovations, a global group focused on developing new business models and new technologies which make renewable energy in rural communities economically sustainable over the long term, while also contributing to social and environmental benefits to the community.

VMware (VMW 84.50, +1.10, +1.3%): Announced the appointment of Bask Iyer to the role of SVP and Chief Information Officer. Iyer is leaving Juniper Networks where he has served as senior vice president and chief information officer, responsible for the company's technology and business operations, including critical services around business transformation, global businessservices, IT, and real estate and workplace services.

Analyst Action:

Adobe Systems (ADBE 78.07, +0.39, +0.5%): initiated with a Buy at Pivotal Research Group

Agilent (A 42.20, +0.14, +0.4%): upgraded to Buy from Neutral at BTIG Research

Akamai Technologies (AKAM 69.43, -0.69, -1.0%): target raised to $79 from $72 at UBS; Buy

Apple (AAPL 128.78, -3.39, -2.7%): target raised to $150 from $130 at Stifel

Ciena (CIEN 20.79, +0.40, +2.0%): target raised to $25 from $23 at Northland Capital; maintain Outperform

First Solar (FSLR 58.54, +3.84, +7.0%): target raised to $54 from $50 at RBC Capital Mkts; Sector Perform.... target raised to $69 from $62 at Robert W. Baird; Outperform... First Solar upgraded to Market Perform from Under Perform at Northland Capital; target raised to $51 from $46... First Solar upgraded to Neutral from Underperform at Bank of America/Merrill Lynch

Hewlett-Packard (HPQ 34.67, -3.82, -9.9%): target lowered to $38 from $39at RBC Capital Markets; Sector Perform... target lowered to $43 from $46 at Monness Crespi & Hardt; Buy

TE Connectivity (TEL 72.16, +0.57, +0.8%): target raised to $76 from $72 at RBC Capital Markets; Outperform4:15 pm : The stock market ended the midweek session on a flat note after spending the trading day in a narrow range. The S&P 500 shed 0.1% while the Nasdaq (-0.02%) registered its first loss since February 9.

Once again, today's session featured below-average activity with only 688 million shares changing hands at the NYSE floor, which was the lowest total registered so far this week.

Equity indices faced some selling pressure at the start with the top-weighted technology sector (-0.7%) responsible for the early weakness. Specifically, Hewlett-Packard (HPQ 34.67, -3.82) pressured the sector after reporting uninspiring results for the quarter. The Dow component plunged 9.9% after its one-cent beat was overshadowed by a 4.7% year-over-year decline in revenue and below-consensus guidance.

Despite the opening weakness, the market was able to reclaim its early loss by midday, but renewed selling in the tech sector sent equity indices to fresh lows during the afternoon. The largest stock by weight-Apple (AAPL 128.73, -3.44)-fell 2.6% to lead the afternoon pullback. Despite today's loss, Apple remains higher by 9.9% since the end of January.

Meanwhile, the remaining cyclical sectors finished closer to their flat lines. Industrials (-0.1%) and materials (-0.3%) settled in the red while energy (+0.4%), financials (+0.1%), and consumer discretionary (+0.8%) outperformed.

The energy sector eked out a modest gain while crude oil spiked 3.6% to $51.01/bbl even though today's Energy Information Administration's storage report showed a larger than expected inventory build of 8.427 million barrels (consensus 4.2 million). WTI crude notched a session low under $49.00/bbl after the inventory report before climbing to a fresh high.

For its part, the discretionary sector received solid support from momentum names like Amazon.com (AMZN 385.37, +6.78), Netflix (NFLX 478.33, +3.45), and Priceline (PCLN 1250.86, +31.07) while homebuilders lagged despite a better than expected New Home Sales report. The iShares Dow Jones US Home Construction ETF (ITB 27.76, -0.39) lost 1.4%.

On the flip side, the industrial sector settled just ahead of the broader market, but transport stock lagged with the Dow Jones Transportation Average sliding 0.5%.

Countercyclical sectors ended in mixed fashion with the utilities space (-1.6%) widening its February decline to 6.2%.

Treasuries settled near their highs after climbing off their intraday lows with the 10-yr yield slipping two basis points to 1.96%. The Treasury market showed little reaction to Fed Chair Yellen's testimony in front of the House Financial Services Committee, which struck a similar tone to remarks made yesterday before the Senate Banking Committee.

Economic data was limited to New Home Sales and MBA Mortgage Index:


New home sales fell 0.2% in January to 481,000 from an upwardly revised 482,000 (from 481,000) while the Briefing.com consensus expected a drop to 470,000
For most of 2014, home sales hovered near 430,000 and showed little volatility. Over the last two months, however, sales have broken out of their doldrums.
The move correlates with improvements in the NAHB Home Builders Index, which showed increasing strength in both current and expected sales. It also comes during a time when the average conventional mortgage rate fell below 4.00%
The weekly MBA Mortgage Index fell 3.5% to follow last week's 13.2% plunge

Tomorrow, weekly Initial Claims (Briefing.com consensus 290K), January CPI (consensus -0.6%), and Durable Orders for January (expected 1.7%) will be reported at 8:30 ET while the December FHFA Housing Price Index will be released at 9:00 ET.

Nasdaq Composite +4.9% YTD
S&P 500 +2.7% YTD
Russell 2000 +2.5% YTD
Dow Jones Industrial Average +2.3% YTD

4:06 pm Emulex to be acquired by Avage Technologies (AVGO) for $8 per share in cash; expected to be immediately accretive to Avago's EPS, on a non-GAAP basis (ELX) : Avago Technologies Limited (AVGO) announced it will acquire Emulex in an all-cash transaction valued at ~ $606 million, or $609 million net of cash and debt acquired.


Emulex to operate as a business unit within Avago's enterprise storage segmentSenior members of the Emulex management team and all of the directors of Emulex, collectively owning approximately 2.5 percent of Emulex's outstanding shares have executed Tender and Support Agreements in support of the transaction.12:58 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

MGA (110.22 +7.79%): Beat Q4 consensus EPS estimates by $0.19, beat on revs; guided FY15 revs below consensus; approved stock split; raised quarterly dividend.
S (4.94 +6.63%): Shares trading higher after an Engadget article suggesting Comcast (CMCSA) may enter the wireless arena.
FMS (39.07 +5.31%): Reported Q4 EPS $1.11 vs. $1.04 consensus; net income 318 mln (+5% in constant currency, +7% at actual rates); revs increased 23% YoY to 6.5 bln vs 6.5 bln.

Large Cap Losers

HPQ (34.89 -9.35%): Beat Q1 consensus EPS estimates by $0.01, missed on revs; guided Q2 and FY15 EPS below consensus including FX headwind; price target lowered at RBC Capital Mkts, Mizuho, others.
CHK (18 -9.46%): Missed Q4 consensus EPS estimates by $0.13, beat on revs; guided FY15 production +3-5% (adj. for asset sales); cap-ex -26% before acquisitions.
PBR (6.37 -7.14%): Moody's downgraded Petrobras' ratings to Ba2; maintains review for downgrade. Mid Cap Gainers

NFX (35.79 +13.01%): Missed Q4 consensus EPS estimates by $0.06, missed on revs; projects 2015 production expected to grow ~18% Y/Y.
CBI (45.58 +9.25%): Reported Q4 (Dec) earnings of $1.47 per share, $0.03 better than the Capital IQ Consensus Estimate of $1.44; revenues rose 12.4% year/year to $3.37 bln vs the $3.43 bln consensus; lowered bottom end of FY15 guidance but maintained the top end.
ICLR (67.76 +10.09%): Beat Q4 consensus EPS estimates by $0.11, reported revs in-line; guided FY15 EPS above consensus, revs in-line.

Mid Cap Losers

LC (20.33 -14.02%): Reported Q4 EPS in line, beat on revs; guided FY15 revs in line; price target lowered to $16 at Compass Point, Sell rating maintained.
CLGX (34.03 -5.24%): Missed Q4 consensus EPS estimates by $0.02, reported revs in-line; guided FY15 EPS below consensus, revs in-line.
HEI (57.95 -6.29%): Reported Q1 (Jan) earnings of $0.41 per share, $0.04 worse than the Capital IQ Consensus Estimate of $0.45; revenues rose 0.5% year/year to $268.19 mln vs the $285.85 mln consensus; reaffirmed FY15 guidance.

12:33 pm Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (224) outpacing new lows (39) (:SCANX) : Stocks that traded to 52 week highs: AAC, ABC, ABM, ABT, ADP, AFH, AGO, AGU, ALGT, AMC, AMWD, AMZN, APH, APRI, ARMH, ASMI, ASX, AVG, AVGO, AVY, AZO, B, BAM, BCV, BFR, BR, BSX, BURL, CAH, CARB, CAVM, CBRL, CCK, CDW, CERN, CGI, CHKP, CHRS, CHTR, CMCSA, CMCSK, CNLMU, COT, COWN, CPRX, CRRC, CSII, CTAS, CVTI, DDS, DEA, DEG, DG, DGRW, DIS, DLTR, DOX, DRI, DW, DXGE, DY, EMAN, ENV, EOS, EPAM, EVT, EXLS, EXPD, FCZA, FICO, FLEX, FLTX, FLWS, FMS, FONE, FORM, FTCS, FTNT, G, GB, GIII, GPX, GRX, HAE, HAIN, HASI, HAWKB, HBAN, HBI, HCSG, HDS, HII, HRL, HSII, HTLF, HUM, HWAY, IART, ICE, ICLR, IFF, IGT, INN, INTL, INTU, IPG, ISLE, JACK, JAH, JBHT, JBLU, JBT, JCOM, JEQ, JKHY, JRN, JW.A, KKD, KLIC, KSS, LABL, LAMR, LBY, LCI, LEN, LLNW, LMT, LO, LOW, LQ, LVNTA, LXFT, MA, MATX, MCK, MIK, MLR, MMM, MMSI, MNST, MO, MODN, MOS, MPWR, MTSN, MTT, NICE, NOW, NRZ, NVET, OMC, ONEQ, ONFC, OPK, ORA, PAHC, PAM, PAYX, PCYC, PFNX, PLAY, PPG, PRAH, PRFZ, PSCD, PSCH, PSCI, PSCT, PSEM, PSO, PTCT, QQQ, QQXT, QTWO, RAI, RDVY, RECN, RJET, RRGB, SBUX, SEIC, SERV, SF, SFBC, SKYW, SMCI, SMTC, SNA, SNPS, SPIL, SQBK, SWKS, SXT, TCON, TDG, TECH, TEL, TGT, TJX, TMO, TNET, TSM, TSRO, TXN, TY, TYL, UA, ULTA, USCR, UTHR, V, VFC, VIPS, VMC, VONE, VONG, VRSK, VRSN, WCIC, WM, WU, WWAV, WYN, ZAGG

Stocks that traded to 52 week lows: ACTS, ADGE, CAS, CCSC, CIB, CLTX, DRL, DWSN, ELON, FENG, FULL, GES, GNI, GRAM, GYRO, HNR, INVT, IVAN, JASN, LAS, MGH, MNI, MX, NMIH, NUTR, PLM, QIHU, QUIK, RCPI, SCON, SDPI, SODA, SPDC, TST, TTI, UPIP, VBLT, WBAI, XXII

ETFs that traded to 52 week highs: FDN, IWF, IYJ, IYK, MDY, MOO, QQQ, RTH, XHB, XLB, XLY

ETFs that traded to 52 week lows: DBA, JO, SGG, SMN

[ReturntoSender]

From Briefing.com: Weekly Recap - Week ending 06-Mar-15Dow -278.94 at 17856.78, Nasdaq -55.44 at 4927.37, S&P -29.78 at 2071.26

The major averages ended the week on a broadly lower note with the Dow (-1.5%) and S&P 500 (-1.4%) surrendering the bulk of their 2015 gains. The two indices narrowed their respective quarter-to-date gains to 0.2% and 0.6% while the Nasdaq Composite (-1.1%) outperformed and remains higher by 4.0% since the end of 2014.

Equity indices succumbed to selling pressure that began during pre-market action after the February Nonfarm Payrolls report came in ahead of expectations. According to the report, 295,000 payrolls were added last month while the Briefing.com consensus expected a reading of 240,000. The Unemployment Rate fell to 5.5% from 5.7%, but that resulted from shrinking labor force participation. Also of note, hourly earnings increased just 0.1% after a 0.5% increase in January (Briefing.com consensus 0.2%).

In addition to pressuring equities, the better than expected headline number was met with aggressive selling in the Treasury market, sending the 10-yr yield higher by 12 basis points to 2.24%. Altogether, today's congruent weakness in stocks and bonds suggests participants believe this report increased the likelihood that the Fed will hike rates as early as June. That being said, the anemic wage growth provides some ammunition for the other side of the rate hike argument.

What the FOMC is thinking-or what we should say is what the market thinks the FOMC is thinking-is that there is no way wage growth isn't going to accelerate with the type of payroll gains we have seen over the last 12 months. Accordingly, it would be prudent to raise the fed funds rate sooner rather than later (i.e. at or close to the middle of the year). That sentiment was echoed by Richmond Fed President and FOMC voting member, Jeffrey Lacker, who voiced his support for raising rates as early as June.

Given that narrative, the greenback rallied, sending the Dollar Index (97.66, +1.28) to its highest level since September 2003. Conversely, that strength weighed on commodities like gold (1164.20/ozt, -32.00) and crude oil (49.62/bbl, -1.14) with crude notching its low after the latest Baker Hughes rig count revealed the 13th consecutive weekly decline in the number of operational oil and gas rigs in the U.S. (down 75 to 1192).

On a related note, the energy sector (-1.7%) settled behind the other cyclical groups, but it was the countercyclical side that faced the most aggressive selling. The utilities sector lost 3.1% to widen its 2015 decline to 8.8% while consumer staples (-1.9%), health care (-1.9%), and telecom services (-1.5%) settled a bit closer to the broader market.

Meanwhile, most cyclical sectors ended near the S&P 500 while financials (-0.8%), consumer discretionary (-1.2%), and technology (-1.2%) outperformed slightly. The financial sector began the day with a solid gain, but succumbed to the overall market pressure. The early strength followed last night's news that all 31 major banks cleared the Fed's baseline for required capital levels.

As for the top-weighted technology sector, the group spent the day ahead of the broader market thanks to the shares of Apple (AAPL 126.60, +0.19). The largest stock by weight ended flat, but was up more than 2.0% after the Wall Street Journal reported the stock will replace AT&T (T 33.48, -0.52) in the Dow Jones Industrial Average on Thursday, March 19.

Apple's daylong retreat from its early high proved that the Friday session focused more on the broad macro environment rather than moves among individual stocks.

For the first time this week, NYSE floor volume crossed the 750 million mark as more than 883 million shares changed hands.

Economic data reported this morning was limited to Nonfarm Payrolls and Trade Balance:

Nonfarm payrolls added 295,000 jobs in February after adding a downwardly revised 239,000 (from 257,000) while the Briefing.com consensus expected an increase of 240,000
It is difficult to label this report as good. Headline payrolls topped expectation, which is obviously a good result; however, average hourly earnings increased marginally (0.1%) after growing by 0.5% in January
Lackluster wage growth combined with the improvement in payrolls led to a 0.4% increase in aggregate wages. To put that in perspective, even after the downward revision to the January payroll numbers, aggregate income increased a much stronger 0.7% last month
Since consumption growth and economic growth in general follow the trend in income, the February employment results were decidedly worse than January even though this month's headline payroll number far exceeded both expectations and the prior level.
The unemployment rate fell to 5.5% in February from 5.7% in January while the consensus expected a drop to 5.6%
The decline was completely due to another exodus in labor market participation that dropped the participation rate to 62.8% from 62.9% in January
The U.S. trade deficit declined to $41.80 billion in January from a downwardly revised $45.60 billion (from $46.60 billion) while the Briefing.com consensus expected a decline to $42.00 billion
The goods deficit declined by $3.40 billion to $61.60 billion from $65.00 billion. The services surplus increased to $19.90 billion from $19.40 billion, a gain of $0.50 billion

Monday's session will be free of economic data.

Week in Review: Sliding From Record Highs

The first trading day of March was a good day for the stock market and a lousy day for the Treasury market. The former rallied, featuring a return above 5,000 for the Nasdaq Composite and new record closes for both the Dow Jones Industrial Average and S&P 500. The latter, meanwhile, languished and perhaps breathed some added life into the stock market on rebalancing efforts. To be fair, both the stock and bond markets had reason to advance today. The People's Bank of China cut its key lending rate by 25 basis points to 5.35% and each piece of economic data out of the U.S. fell short of consensus estimates. While the rout in the Treasury market was unfolding, a rally in the stock market was playing out, suggesting perhaps that a rotational move out of Treasuries and into stocks was helping to support things.

The stock market endured a broad-based retreat on Tuesday that caused the S&P 500 (-0.5%) to surrender the bulk of its advance from Monday. The benchmark index settled ahead of the Nasdaq Composite (-0.6%) with eight sectors registering losses. All in all, it is worth pointing out that the pullback occurred after the S&P 500 rallied nearly 3.5% in just three weeks, suggesting the retreat resulted from profit taking after a big run. Equity indices began the day amid pressure from a few influential sectors like health care (-0.9%), technology (-0.8%), and industrials (-0.7%). The three sectors lagged throughout the day while the remaining sectors finished closer to their flat lines.

Equity indices registered their second consecutive retreat on Wednesday with the S&P 500 losing 0.4%. The benchmark index managed to cut its loss in half by the closing bell while the Nasdaq Composite (-0.3%) outperformed. For the second day in a row, the market opened amid broad pressure, but heavily-weighted health care and technology sectors hit their lows during the opening hour and climbed off those lows into the afternoon. The health care sector (+0.4%) registered a modest gain while technology (-0.3%) finished ahead of most other cyclical sectors.

The market ended Thursday on a modestly higher note with the Nasdaq Composite (+0.3%) settling in the lead while the S&P 500 (+0.1%) ended just above its flat line. In a way, the Thursday session fit right in with recent affairs as equity indices maintained narrow ranges amid light volume. The S&P 500 spent the day inside a nine-point range while NYSE floor volume totaled fewer than 675 million shares (50-day average 766 million). Six of ten sectors registered gains with three of four countercyclical groups ending ahead of the broader market. To that point, consumer staples (+0.3%), health care (+0.4%), and utilities (+0.8%) spent the day ahead of the S&P while telecom services (-0.1%) lagged.

Index Started Week Ended Week Change % Change YTD %
DJIA 18132.70 17856.78 -275.92 -1.5 0.2
Nasdaq 4963.53 4927.37 -36.16 -0.7 4.0
S&P 500 2104.50 2071.26 -33.24 -1.6 0.6
Russell 2000 1233.37 1217.52 -15.85 -1.3 1.1

The first week of March ended on a rather emphatic down note, with indices falling at least 1.1% across the board on Friday. Although Nonfarm payrolls topped Street expectations, average hourly earnings grew marginally (+0.1%), and ultimately overshadowed the increase in employment.

The S&P 500 information technology sector (-1.15%) outperformed the S&P 500 Index (-1.4%), benefiting a bit from the announcement that Apple (AAPL 126.60, +0.19, +0.2%) will be joining the Dow Jones Industrial Average, replacing AT&T (T 33.48, -0.52, -1.5%). Not surprisingly, there were only three other stocks in the sector that posted gains in the wake of a broad market sell-off, including: Ebay (EBAY 59.87, +0.76, +1.3%), Juniper Networks (JNPR 23.57, +0.42, +1.8%), and Qualcomm (QCOM 71.51, +0.58, +0.8%).

Notable news items from sector components were limited and included the following:



Apple (AAPL): Will replace AT&T (T) in the Dow Jones Industrial Average after the close of trading on Wednesday, March 18. The change will be effective with the opening of trading on Thursday, March 19. The index change was prompted by Visa (V 269.34, -4.79, -1.8%) 4:1 stock split which is scheduled to be effective at the same time. The post-split adjusted lower price of Visa will reduce the weighting of the Information Technology sector in the index.Elsewhere in the technology space:

Perceptron (PRCP 11.60, -0.04, -0.3%): Announces the launch of SMART3D, its laser scanning system. The SMART3D System automatically provides 3D polygonised models for reverse engineering, 3D printing or graphical web content. It also can be used for the verification of production parts against nominal part geometry data.

Verizon Wireless (VZ 48.29, -0.63, -1.3%): Tweets that Samsung (SSNLF) Galaxy S6 pre orders will start April 1st

Maxpoint Interactive (MXPT 9.76): opened for trading at $11 after pricing IPO at $11.50
Analyst Action:

Marvell Technologies (MRVL 16.56, +0.05, +0.3%): upgraded to Positive from Neutral at Susquehanne; price target raised to $20 from $14

Methode Electronics (MEI 42.69, -0.30, -0.7%): downgraded to Hold from Buy at Craig

HallumScanSource (SCSC 36.60, -0.28, -0.8%): price target set to $43.90 at FinTrust Advisors; Buy

Exar (EXAR 10.71, -0.01, -0.1%): price target set to $14 at ROTH Capital; Buy

HealthEquity (HQY 22.19, +0.69, +3.2%): price target set to $28 at Leerink Partners; Outperform

Proofpoint (PFPT 55.39, -1.50, -2.6%): price target set to $65 at Piper Jaffray; Overweight

Barracuda Networks (CUDA 38.45, -0.16, -0.4%): price target set to $44 at Piper Jaffray; Overweight

Cyber-Ark Software (CYBR 59.78, -3.09, -4.9%): price target set to $54 at Piper Jaffray; Neutral

NXP Semi (NXPI 99.48, -0.19, -0.2%): price target raised to $120 from $95 at Susquehanna; Positive

Google (GOOG 567.69 -7.65, -1.3%): price target raised to $682 from $629 at Citigroup; Buy

Cirrus Logic (CRUS 32.78, +0.54, +1.7%): price target raised to $37.50 from $35 at Northland Capital; Outperform

SunEdison (SUNE 22.64, -0.53, -2.3%): price target raised to $33 from $28 at RBC Capital; Outperform

Finisar (FNSR 22.23, +1.90, +9.4%): price target raised to $23 from $19 at RBC Capital; Outperform

Plantronics (PLT 53.26, -0.59, -1.1%): price target raised to $60 from $55 at ROTH Capital; Buy

SunEdison (SUNE) and Solar Grid Storage LLC announced that SunEdison has acquired the energy storage project origination team, project pipeline, and subject to customary consents and assignments, four operating storage projects from Solar Grid Storage. SunEdison now offers battery storage solutions to complement solar and wind projects worldwide, providing solutions that can benefit utilities, municipalities, businesses, and consumers alike.

6:36 am Methode Electronics beats by $0.18, misses on revs; raises FY15 EPS above consensus, reaffirms FY15 revs guidance (MEI) : Reports Q3 (Jan) earnings of $0.68 per share, $0.18 better than the Capital IQ Consensus Estimate of $0.50; revenues rose 8.5% year/year to $206 mln vs the $209.71 mln consensus.

Co issues guidance for FY15, sees EPS of $2.50-2.60 from $2.20-2.30 vs. $2.27 Capital IQ Consensus Estimate; reaffirms FY15 revs of $870-885 mln vs. $884.12 mln Capital IQ Consensus Estimate. Consolidated gross margins as a percentage of sales improved to 25.5 percent in the Fiscal 2015 first nine months compared to 20.8 percent in the Fiscal 2014 period.

6:29 am Canadian Solar misses by $0.06, reports revs in-line; guides Q1 and FY15 (CSIQ) : Reports Q4 (Dec) earnings of $1.28 per share, $0.06 worse than the Capital IQ Consensus Estimate of $1.34; revenues rose 84% year/year to $956.2 mln vs the $953.94 mln consensus.

Total solar module shipments in the fourth quarter of 2014 were 1,125 MW, with 897 MW recognized in revenue, compared to 770 MW recognized in the third quarter of 2014 and 621 MW in the fourth quarter of 2013. Co issues guidance for Q1, sees Q1 revs of $725-775 vs. $713.18 mln Capital IQ Consensus. Expects Q1 total module shipments to be in the range of ~1,000 MW to 1,030MW, including ~55 MW of shipments to the Company's utility-scale solar projects that will not be recognized into first quarter 2015 revenue. Co issues guidance for FY15, sees FY15 revs of $2.8-3.0 bln vs. $3.44 bln Capital IQ Consensus; Absent the planned change in the Company's energy business model from a build-to-sell to a build and operate model, revenue for 2015 would be ~$1.0 billion to $1.1 billion higher.Sees total module shipments to be in the range of ~4.0 GW to 4.3 GW, including 3,300MW to 3,500 MW of third-party module sales, 235 MW to 275 WW of project and EPC sales, and 460 MW to 490 MW of shipments to projects which will be held on the balance sheet pending the launch of a YieldCo vehicle. At the end of February of 2015, the Company had a pipeline of late -stage, utility-scale solar projects totaling ~1.4 GW DC. Canadian Solar's late-stage, utility-scale solar project pipeline is expected to increase by ~1.0 GW DC to 2.4GW DC with the Recurrent acquisition.

[ReturntoSender]

From Briefing.com: The stock market got hit hard Tuesday on the back of earnings concerns and emerging market worries that were tied to a strengthening dollar. To that end, the U.S. Dollar Index (+1.0% at 98.60) traded at levels last seen in 2003 as the euro traded below 1.07 against the greenback and the dollar-yen cross moved above 121.

Concerns that the Federal Reserve might raise interest rates too soon and some technical selling pressure that took the S&P 500 below its 50-day simple moving average (2062/2060) also weighed on sentiment and kept buyers sidelined.

Every sector ended the day lower. The information technology sector (-2.2%) teamed up with the financial sector (-2.1%) to pace Tuesday's losses.

Every component in the S&P 500 information technology sector other than NVIDIA (NVDA 23.05, +0.44, +1.9%), which was upgraded at Bank of America/Merrill Lynch, closed the day with a loss. Out of the 65 components that lost ground, 57 declined at least 1.0%.

Notable news items from sector components included:

Accenture (ACN 88.06, -2.73, -3.0%): Company and Adobe announced the expansion of their alliance to deliver greater marketing ROI to companies through the launch of Accenture Customer Engagement, a cloud-based managed service that simplifies the development, execution and measurement of digital marketing.

Adobe Systems: (ADBE 76.12, -1.81, -2.3%): Company and IBM announced IBM Interactive Experience will build specialized enterprise consulting capabilities for Adobe Marketing Cloud.

Cognizant Technology (CTSH 60.75, -1.15, -1.9%): Announced that it has engaged with Cholamandalam Investment and Finance Company Limited, a financial services provider in India, to digitally transform its vehicle finance business operations, from loan origination through recovery, in order to reduce costs, improve business agility, and deliver an integrated customer experience.

Facebook (FB 77.76, -1.68, -2.1%): FriendBlog confirmed it will shut down April 9

First Solar (FSLR 59.94, -1.12, -1.8%): Company and SunPower (SPWR 32.46, -0.71, -2.1%) filed S-1 for YieldCo venture. Company name is 8point3 Energy Partners. Proposed maximum aggregate offering is $50 mln and underwriters are Goldman and Citigroup

Hewlett-Packard (HPQ 32.67, -0.28, -0.9%): Announced a new portfolio designed specifically for the needs of service providers to create differentiated services, increase speed and agility, and drive business growth. HP innovative portfolio includes servers, networking and Service Provider Ready solutions to help service providers create differentiated services.

IBM (IBM 157.81, -2.96, -1.8%): Announced the opening of its newest SoftLayer cloud center in Drummondville, just outside of Montr al, Qu bec, Canada. The Montr al facility is part of IBM's $1.2 billion investment to expand its global cloud services portfolio.

Qualcomm (QCOM 72.07, -0.64, -1.1%): The company's Board of Directors authorized the repurchase of up to $15 billion of its common stock. The $15 billion program replaces the previous program, which had a $2.1 billion authorization remaining. Qualcomm intends to repurchase $10 billion of its common stock within approximately twelve months of the date of this announcement. The Board also approved a 14 percent increase in Qualcomm's quarterly cash dividend, raising the annualized dividend payout to $1.92 per share of common stock. Separately, Qualcomm disclosed that on March 5, 2015, it entered into definitive documentation to establish an unsecured commercial paper program pursuant to which it may issue short-term, unsecured commercial paper notes not to exceed $4 bln.

TE Connectivity (TEL 71.47, -0.66, -0.9%): Names Terrence Curtin as President. Mr. Curtin was most recently President of the company's Industrial Solutions segment which includes TE's Aerospace, Defense, Oil and Gas business

Xilinx (XLNX 39.88, -0.77, -1.9%): Raised quarterly dividend $0.02 per share to $0.31, effective in the June quarter
Elsewhere in the technology space:

Alibaba (BABA 82.97, +0.44, +0.5%): Named Jeff Zhang head of marketplace websites, according to reports. Separately, its subsidiary Alibaba Cloud Computing confirmed that China's Central Government Procurement Center moved its official site to AliCloud over a year ago, according to reports.

Aruba Networks (ARUN 24.40, -0.03, -0.2%): Announced that the Houston Airport System has deployed Aruba's 802.11ac solution to enable free Wi-Fi service to customers and guests in its two public passenger airports.

Cypress Semiconductor (CY 15.27, -0.24, -1.7%): Announced that networking equipment maker Exablaze has selected Cypress's QDR-IV SRAM for its ExaLINK Fusion networking switch.

Priceline (PCLN 1194.30, -22.70, -1.9%): Announced its intention to offer Senior Notes in an underwritten public offering; size not disclosed. The co plans to use the net proceeds from the offering of the notes for general corporate purposes, which may include share repurchases, repayment of debt and acquisitions, among other uses.

Qihoo 360 Technology (QIHU 45.16, -2.46, -4.9%): Reported Q4 (Dec) earnings of $0.75 per share, excluding non-recurring items, which was ahead of analysts' average expectation. Revenues rose 94.6% year/year to $431.21 mln, which also exceeded estimates. For Q1, sees revenues of $375-380 mln, which is ahead of expectations. Company also noted that its Board of Directors authorized the repurchase of up to an additional $200 million of the Company's American Depositary Shares.

Taiwan Semi (TSM 23.05, -0.40, -1.8%): Company said its revenues for February 2015 on a consolidated basis were approximately NT$62.65 billion, a decrease of 28.1% from January 2015 and an increase of 33.8 % over February 2014. Revenues for January through February 2015 totaled NT$149.77 billion, an increase of 52.4% compared to the same period in 2014.

Twitter (TWTR 45.84, -1.75, -3.7%): ReCode discussed that Twitter plans to acquire Periscope, a video startup.

Analyst Action:

Amazon.com (AMZN 369.87, -8.69, -2.4%): upgraded to Outperform from Peer Perform at Wolfe Research

Apple (AAPL 125.02, -2.12, -1.9%): target raised to $160 from $140 at Evercore ISI; Buy Monness Crespi & Hardt raised its target to $145 from $125

Cree (CREE 38.85, +0.04, +0.1%): target raised to $34 from $29 at Canaccord Genuity; Hold

Electronic Arts (EA 55.17, -1.50, -2.7%): downgraded to Hold from Buy at Needham

Fairchild Semi (FCS 17.84, -0.01, -0.1%): initiated with a Buy at Drexel Hamilton; target $25

Hewlett-Packard (HPQ 32.67, -0.28, -0.5%): upgraded to Buy from Neutral at UBS; target to $40 from $37.25

NVIDIA (NVDA 23.05, +0.44, +1.9%): upgraded to Buy at Bank of America/Merrill Lynch

Qualcomm (QCOM 72.07, -0.64, -1.1%): target raised to $76 from $75 at Cowen; Outperform target raised to $87 from $84 at Canaccord Genuity; Buy target raised to $87 from $80 at Brean Capital; Buy

Symantec (SYMC 23.86, -0.61, -2.5%): upgraded to Buy from Hold at Standpoint Research4:10 pm : The stock market endured a daylong selloff on Tuesday with the S&P 500 (-1.7%) sliding below its 50-day moving average. The benchmark index surrendered its Q1 gain and is now down 0.7% since the end of 2014 while the Dow (-1.8%) underperformed.

Equities stumbled out of the gate after the Dollar Index (98.60, +1.01) continued its charge, climbing to a fresh 12-year high during overnight action. The index spent the morning near its overnight high and built on that gain into the afternoon. The greenback strength sent the euro into the 1.0700 area while the Dollar Index extended its March gain to 3.4%.

The continued greenback strength fueled concerns about the earnings prospects of multinational companies while also putting pressure on overseas entities that conduct their dealings in dollars. As a result, a wave of recent downward earnings revisions has lowered 2015 EPS growth expectations to just 1.1% from 9.8% on December 1, according to S&P Capital IQ.

The diminished prospects for solid earnings growth broadsided the six growth-sensitive sectors while countercyclical groups did not fare much better. Sellers remained in control throughout the day with the two largest sectors by weight-technology (-2.2%) and financials (-2.1%)-pacing the retreat.

Large cap tech names like Apple (AAPL 124.56, -2.58), Google (GOOGL 559.85, -14.25), and Facebook (FB 77.57, -1.87) lost between 2.0% and 2.5% while Qualcomm (QCOM 71.88, -0.82) outperformed, falling 1.1%, after announcing a $15 billion repurchase program and increasing its quarterly cash dividend to $0.48/share from $0.42/share.

Elsewhere among cyclical sectors, the consumer discretionary space ended in-line with the broader market, but that masked an 11.5% surge in the shares of Urban Outfitters (URBN 44.06, +4.55) after the apparel retailer beat bottom-line estimates and reported revenue in-line with its warning from February 9.

Also of note, the energy sector (-1.4%) represented the lone outperformer on the cyclical side even though crude oil fell 3.1% to $48.40/bbl.

On the countercyclical side, the utilities sector (-0.2%) settled just below its flat line after failing to hold its intraday gain. Still, the group ended atop today's leaderboard, benefitting from bond strength that pressured the 10-yr yield to 2.13% (-6 bps).

Today's participation was ahead of recent averages with more than 830 million shares changing hands at the NYSE floor.

Economic data was limited to Wholesale Inventories and JOLTS:

Wholesale inventories increased 0.3% in January after a downward revision revealed no change (from +0.1%) in December
The Briefing.com consensus expected a decline of 0.1%
Surprisingly, the sharp drop in petroleum prices did not lead to a large decline in petroleum inventories. These inventories only declined 1.1% in January after declining 7.2% in December. Altogether, nondurable goods inventories declined a modest 0.1% in January.
The January Job Openings and Labor Turnover Survey showed that job openings increased to 4.998 million from 4.877 million

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while the Treasury Budget for February (Briefing.com consensus -$192 billion) will cross the wires at 14:00 ET.

Nasdaq Composite +2.6% YTD
Russell 2000 +0.4% YTD
S&P 500 -0.7% YTD
Dow Jones Industrial Average -0.9% YTD

DJ30 -332.78 NASDAQ -82.64 SP500 -35.26 NASDAQ Adv/Vol/Dec 668/1.73 bln/2241 NYSE Adv/Vol/Dec 840/832.8 mln/2276 3:35 pm :

The dollar index continues to hold its gains, which has been weighing on most commodities today
Natural gas futures traded higher all day today and ended pit trading $0.06 higher to $2.73/MMBtu
WTI crude oil slid lower and fell as low as $48.20/barrel. Apr crude closed near that LoD, ending $1.56 lower at $48.40/barrel
Apr gold finished floor trading $6.50 lower at $1160.10/oz, while May silver lost $0.15 to $15.64/lb
May corn gained $0.05 to $3.88/bushel following bullish USDA WASDE numbers.

4:05 pm SolarCity has opened its second Las Vegas-area operations center in North Las Vegas (SCTY) : This latest expansion pushes SolarCity's total Nevada staffing to more than 1,100 people.

4:04 pm VeriFone beats by $0.03, reports revs in-line; guides Q2 below consensus; lowers FY15 guidance (PAY) : Reports Q1 (Jan) earnings of $0.44 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.41; revenues rose 11.4% year/year to $487 mln vs the $483.23 mln consensus.

Co issues downside guidance for Q2, sees EPS of $0.41-0.42, excluding non-recurring items, vs. $0.46 Capital IQ Consensus Estimate; sees Q2 revs of $485-489 mln vs. $505.11 mln Capital IQ Consensus Estimate.

Co issues downside guidance for FY15, lowers EPS to $1.78-1.82, excluding non-recurring items, from $1.85-1.90 vs. $1.90 Capital IQ Consensus; lowers FY15 revs to $1.99-2.00 bln from $2.02-2.04 bln vs. $2.03 bln Capital IQ Consensus Estimate.

11:47 am Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

CS (25.07 +6.5%): Announced Prudential (PUK) CEO Tidjane Thiam will become its new CEO.
NVDA (22.94 +1.46%): Upgraded to Buy at BofA/Merrill.

Large Cap Losers

EEP (36.25 -4.43%): Announced and priced an underwritten public offering of 8 mln of its Class A Common Units, representing limited partner interests, at $36.70 per Class A Common Unit.
EA (55 -2.94%): Downgraded to Hold from Buy at Needham.

Mid Cap Gainers

URBN (43.15 +9.21%): Beat Q4 consensus EPS estimates by $0.03, revs in-line with last month's preannouncement; Upgraded at Janney, William Blair, others.
SVU (10.66 +4.61%): Upgraded to Buy from Hold at Deutsche Bank; tgt to $13 from $8.50.
LEAF (48.04 +2.23%): Upgraded to Buy at BofA/Merrill.

Mid Cap Losers

AKRX (45.08 -13.04%): Underperforming following Actavis (ACT) launch of generic version of Temovate (clobetasol cream).
UNFI (75.8 -6.97%): Missed Q2 consensus EPS estimates by $0.02, reported revs in-line; guided FY15 EPS in-line, revs below consensus; Price target lowered at Oppenheimer and Canaccord Genuity.
TRN (29.76 -6.24%): Downgraded to Equal Weight from Overweight at a boutique firm.

11:42 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (208) outpacing new highs (39) (:SCANX) : Stocks that traded to 52 week highs: AEO, ANAC, ASX, BLUE, BWINA, CBMG, CEMP, CFRX, COL, CPRX, CRL, ESLT, ETFC, FCS, FNRG, FSFG, GTT, GY, HPTX, IMKTA, INAP, MDVX, MMS, NVDA, OCUL, PAM, PNK, PRQR, RCKY, SCAI, SCMP, SMMT, SSP, SVU, SWKS, URBN, VRX, WBB, ZAGG

Stocks that traded to 52 week lows: ACRX, ACTG, ADGE, AGNC, AHC, AKG, AMDA, AMZG, ANDE, AOI, ARCO, ARLP, ASRV, ATLS, ATV, AUQ, AVAL, BALT, BBD, BICK, BIOS, BONT, BPT, BSBR, CBD, CECE, CHK, CHNR, CIB, CKP, CNX, CPAH, CPL, CPPL, CTRL, CUZ, CVGI, CVSL, DNN, DO, DPG, DRWI, DSCI, DWSN, DXM, EAC, EBR, EC, ECA, EDD, EEML, EGAN, EGI, EGP, EJ, ELP, ERII, ESSX, ESV, ETAK, EXK, FCO, FDML, FENG, FHCO, FIVE, FOSL, FPP, FTEK, FUEL, FULL, GAS, GEF, GEF.B, GEOS, GES, GFA, GLF, GLRI, GPL, GRAM, GRC, GSOL, GSV, GUID, HNR, HOS, HSBC, HTS, HWCC, I, IGOV, IO, IPI, IRET, ISH, ISHG, ITUB, JIVE, JOEZ, JONE, JOY, KEYW, KOF, LAQ, LFL, LFVN, LODE, MDSY, MDU, MERU, MLHR, MNTX, MPO, MRIN, MSM, MTGE, MX, MXE, MXPT, NAO, NE, NFG, NGD, NGG, NGS, NLY, NOR, NRP, NWPX, OCRX, OESX, ONVO, ORIG, ORN, OTIV, PAAS, PBR, PBR.A, PGN, PHIIK, PLTM, PN, PPP, PQ, PRGN, PRIM, PRXI, PVH, PW, QIHU, RAVN, RCI, RDC, RIG, RL, RLJE, RLOG, RNET, ROYT, RSO, RUSHA, RYAM, SB, SEED, SGF, SIF, SJR, SJT, SMLP, SNOW, SPDC, SSE, STB, SWN, TC, TDW, TGC, TGD, TIF, TKC, TKF, TRX, TSU, TTF, TU, UG, ULTR, UPIP, UUUU, VALE, VALE.P, VBLT, VIV, VMEM, VNCE, VRA, WHLR, WILN, WIN, WRES, WYNN, XGTI, XNET, XOM, XRA, YNDX, ZINC

ETFs that traded to 52 week highs: UUP

ETFs that traded to 52 week lows: BWX, DBA, EPU, EWZ, FUD, FXA, FXE, ILF, KOL, NLR, RJA, SGG, SIL, XME

8:38 am Taiwan Semi announces its net revenues for February 2015 (TSM) : On a consolidated basis, revenues for February 2015 were approximately NT$62.65 billion, a decrease of 28.1% from January 2015 and an increase of 33.8 % over February 2014. Revenues for January through February 2015 totaled NT$149.77 billion, an increase of 52.4% compared to the same period in 2014.

8:02 am JinkoSolar Holding signs RMB 320 mln loan agreement with China Development Bank (JKS) : JKS announced that JinkoSolar Power Co., Ltd., a subsidiary of the Company, has signed a RMB320 million loan agreement with China Development Bank. The loan will be used for PV solar power plant projects in Henfeng County, Jiangxi Province, China. According to the terms of agreement, the Jiangxi Branch of CDB will provide a 15-year loan totaling RMB320 million to finance a 50MW PV solar power plant project developed by Jinko Power in Yangjia Village, Lianhe Township, Hengfeng County, Jiangxi Province. The project was connected to the grid in February of 2015.

8:02 am Microvision reports EPS in-line, misses on revs (MVIS) : Reports Q4 (Dec) loss of $0.08 per share, in-line with the Capital IQ Consensus Estimate of ($0.08); revenues fell 42.6% year/year to $0.7 mln vs the $1.7 mln consensus.

2015 Objectives and Outlook:

"2015 is expected to be a transformational year for MicroVision. We expect to achieve significant year-over-year growth by focusing attention on making our customers successful whether providing high quality components or assisting them with their go-to-market efforts," said Alexander Tokman, president and CEO of MicroVision.

8:01 am Xilinx raises quarterly dividend $0.02 per share to $0.31, effective in the June quarter (XLNX) :

Rudolph Technologies (RTEC) announced that a major outsourced assembly and test manufacturer has selected the JetStep Advanced Packaging Lithography System for evaluation. The tool, which ships this week, will be used to develop copper pillar bumping and through silicon via processes used in the development of next-generation flip chip technology.

[ReturntoSender]

From Briefing.com: A bit of a seesaw day of trading in the stock market on Tuesday as participants waited impatiently to see if the latest policy directive from the Federal Reserve (out on Wednesday at 2:00 p.m. ET) will include the word "patient" in it. Reportedly, the removal of that word will be a signal to the market that the Federal Reserve is angling to raise the fed funds rate sooner rather than later (i.e. in June).

The early action was marked by broad-based selling while the afternoon action saw a steady stream of buying interest that helped the major indices rebound from their worst levels of the morning, which followed a disappointing Housing Starts report for February.

At one point, the Nasdaq Composite was down more than 20 points, but it eventually finished with an 8-point gain. A bounce in the biotech stocks and gains in Apple (AAPL 127.04, +2.09, +1.7%) helped spearhead the turnaround effort.

The broader market, measured by the S&P 500, couldn't manage a positive finish, yet it did recapture slightly more than half of an early 16-point loss. It did so with the help of the information technology sector (+0.1%), which was the only sector in the S&P 500 to record a gain on the day.

Notable news items from the sector included:

Adobe Systems (ADBE 79.66, +1.33, +1.7%): Announced Adobe Document Cloud in the office and across devices. Adobe Document Cloud will address the waste and inefficiency associated with document processes. Adobe was slated to report its quarterly results after the close of trading on Tuesday.

Apple (AAPL 127.04, +2.09, +1.7%): There was a Wall Street Journal report that Apple may develop web TV service. There was a subsequent NY Post indicating that Apple may offer shared programming data with TV service.

eBay (EBAY 59.49, -0.08, -0.1%): Company and Sotheby's jointly announced the launch of the Sotheby's live auctions experience on eBay. Part of eBay's new live auctions platform, ebay.com/sothebys is now available for browsing and advance bidding on Sotheby's unique items leading up to the launch of Sotheby's first live auctions on eBay on April 1.

IBM (IBM 156.96, -0.12, -0.1%): Company and Twitter (TWTR 46.93, +0.50, +1.1%) announced the availability of industry-first cloud data services that allow business professionals and developers to extract actionable business insights from Twitter data. With more than 100 early client engagements underway, the IBM and Twitter global partnership is already helping enterprise clients apply social data to business decisions.

Microsoft (MSFT 41.69, +0.13, +0.3%): Premiere Global named Microsoft Skype for Business elite launch partner

Teradata (TDC 42.74, +0.55, +1.3%): Highlighted in Bloomberg M&A column as potential target for shareholder activism and/or a takeoutElsewhere in the technology space:

Cree (CREE 37.54, +0.44, +1.3%): Has expanded its $1.5 million commitment to provide LED lighting for new Habitat for Humanity homes built in the United States. Building on the company's 2010 pledge to provide Cree LED downlights, Cree is now offering Habitat for Humanity affiliates the New Cree LED Bulb, making whole-home LED lighting possible for Habitat homeowners.

Groupon (GRPN 7.84, +0.02, +0.4%): Announced the appointment of two new executives: Carol Campagnolo to Senior Vice President of Human Resources and Jay Sullivan to Senior Vice President of Consumer Product.

OmniVision (OVTI 25.53, -0.61, -2.1%): Announced that its ultra-low power OV788 video processor will enable high-definition video streaming capabilities on Acer's Build Your Own Cloud platform.

Analyst Action:

Alibaba (BABA 84.50, +0.50, +0.6%): upgraded to Buy from Hold at Stifel; target $99 Added to Stifel Select List

Facebook (FB 79.36, +1.29, +1.8%): initiated with a Buy at Brean Capital; target $96... target raised to $96 from $90 at Nomura; Buy

LinkedIn (LNKD 258.71, -1.46, -0.7%): initiated with a Sell at Brean Capital; target $208

Micron (MU 27.63, -0.88, -3.2%): target lowered to $40 from $44 at RBC Capital Markets; Outperform

Paycom Software (PAYC 32.67, +0.72, +2.3%): initiated with a Buy at Brean Capital; target $45

Salesforce.com (CRM 67.55, +1.12, +1.2%): initiated with a Hold at Brean Capital; target $70

Seagate Technology (STX 53.66, -1.18, -2.2%): target lowered to $62 from $67 at RBC Capital Markets; Outperform

Twitter (TWTR 46.93, +0.50, +1.1%): initiated with a Buy at Brean Capital; target $61

Western Digital (WDC 96.59, -1.61, -1.7%): target lowered to $116 from $122 at RBC Capital Markets; Outperform

Workday (WDAY 83.40, -0.47, -0.7%): initiated with a Hold at Brean Capital; target $86

Yahoo (YHOO 43.79, +0.28, +0.6%): Argus initiates with a Hold

4:10 pm : The stock market ended the Tuesday session on a mixed note ahead of Wednesday's release of the latest policy directive from the Federal Reserve. The Nasdaq Composite added 0.2% while the S&P 500 and Dow Jones Industrial Average lost 0.3% and 0.7%, respectively.

Equity indices endured some selling in the early going, but the Nasdaq spent the day ahead of the broader market thanks to relative strength in the technology sector (+0.1%). Specifically, shares of Apple (AAPL 127.04, +2.09) climbed 1.7%, which underpinned the sector and the Nasdaq. Meanwhile, most large cap components struggled, which was also the case with high-beta chipmakers. The PHLX Semiconductor Index fell 0.7%. That being said, the daylong strength within the technology sector helped the broader market erase the bulk of its early decline.

The Nasdaq received another measure of support from biotechnology with the iShares Nasdaq Biotechnology ETF (IBB 356.25, +2.28) climbing 0.6% to a new record. However, the health care sector (-0.3%) could not turn positive.

Similarly, another influential sector-industrials (-0.4%)-ended in the red even though transport stocks displayed relative strength with the Dow Jones Transportation Average ending just below its flat line. The broader sector could not follow suit as the largest component-General Electric (GE 25.31, -0.14)-lost 0.6%.

Elsewhere among cyclical sectors, energy (-0.5%) settled among the laggards as crude oil faced continued pressure. The energy component fell 1.2% to $43.15/bbl after marking a session low at $42.75/bbl this morning. Crude oil endured a volatile day and made a brief appearance in the green while the Dollar Index (99.66, +0.06) spent the session near its unchanged level. However, the Dollar Index is likely to be active tomorrow when investors respond to the FOMC policy statement.

The main point of focus will be whether the Fed decides to keep its reference to remaining "patient" ahead of the first rate hike. In a recent appearance before the Senate Banking Committee, Fed Chair Janet Yellen said that removing the call for patience would open the door to a potential rate hike at any policy meeting that follows.

Treasuries held solid gains in the morning, but the 10-yr note cut its gain in half, sending the benchmark yield lower by two basis points to 2.06%.

Today's participation was below average with roughly 700 million shares changing hands at the NYSE floor.

Economic data was limited to February housing starts, which declined 17.0% to 897,000 from an upwardly revised 1.081 million (from 1.065 million) while the Briefing.com consensus expected a decline to 1.041 million. Record snowfall in the Northeast and extreme cold in the Midwest likely played a large part in curtailing new construction. Housing starts in these regions declined 45.0% in February, from 262,000 in January to 144,000. Those regions accounted for 64.0% of the entire February decline in housing starts.

Still, the weather can't be completely at fault. Poor underlying economic conditions likely caused some of the February pullback. For example, in the West region, warmer-than-normal temperatures should have helped offset some of the decline from the East, but that did not happen. Starts fell 18.2% to 239,000 in February from 292,000.

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while the Federal Open Market Committee will release its latest policy statement at 14:00 ET.

Nasdaq Composite +4.3% YTD
Russell 2000 +3.2% YTD
S&P 500 +0.7% YTD
Dow Jones Industrial Average +0.2% YTD

DJ30 -128.34 NASDAQ +7.93 SP500 -6.99 NASDAQ Adv/Vol/Dec 1399/1.59 bln/1375 NYSE Adv/Vol/Dec 1449/700.3 mln/1609

3:35 pm :

Natural gas futures rallied today apparently on a Northeast cold blast, boosting demand for heating fuel
Ultimately, Apr nat gas closed 5.5% higher today at $2.86/MMbtu
WTI crude oil futures were weak again and fell for a sixth consecutive session
Apr crude finished $0.51 lower at $43.43/barrel
Apr gold lost $5.50 today to $1147.90/oz, while May silver fell $0.08 to $15.53/oz
May copper declined $0.03 to $2.64/lb

12:42 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

AAL (53.36 +6.25%): To replace Allergan (AGN) in the S&P 500.
REGN (466.09 +3.17%): Favorable mention on Monday's Mad Money.
TKC (12.18 +1.92%): Reports out that Alfa Telecom may purchase a stake in Turkcell.

Large Cap Losers

MU (27.52 -3.44%): Unfavorable mention on Monday's Mad Money.
MAC (92.2 -2.83%): Announced that its Board unanimously determined that the unsolicited, conditional proposal from Simon Property Group (SPG) for $91/share undervalues Macerich and is not in the best interests of it and its stockholders.
CAT (78.47 -1.88%): Reaffirmed FY15 guidance ahead of BofA/Merrill Industrials Conf.; Sees FY15 EPS $4.75 vs $4.81 Capital IQ Consensus; revs $50 bln vs $49.98 bln Capital IQ Consensus

Mid Cap Gainers

VEEV (27.77 +11.39%): Announced that GlaxoSmithKline (GSK) has selected Veeva for multichannel CRM.
MGM (21.79 +10.83%): Land and Buildings sends letter to MGM resorts proposing a REIT conversion to unlock substantial real estate value and also announced that it intends to nominate four candidates for Board.
QUNR (31.43 +8.16%): Reported Q4 (Dec) results, beat on revs; guided Q1 revs above consensus; upgraded at HSBC Securities.

Mid Cap Losers

AXTA (27.67 -5.4%): Filed for a 35 mln share common share offering by selling shareholders, including affiliates of The Carlyle Group (CG).
CRZO (45.39 -4.16%): Priced 4.5 mln share secondary offering of its common stock at $45.50 per share.
FTI (35.63 -3.68%): Initiated with a Reduce at GMP Securities.

11:42 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (136) outpacing new lows (123) (:SCANX) : Stocks that traded to 52 week highs: ABC, ACT, AFMD, ALG, ALNY, AMAG, ANAC, ARIA, BBY, BERY, BFR, BIB, BMA, BMRN, BSX, BURL, CAF, CEMP, CENTA, CLDX, CLNY, CNCE, CNK, CONE, CPRX, CTLT, CTSO, CUTR, DDS, DLTR, DRI, DW, EIG, ESLT, ESPR, ETFC, FBMS, FDP, FLKS, FOLD, FRSH, FV, GGAL, GILT, GRUB, GTN, GTT, HAIN, HALO, HBI, HCC, HCHC, HMHC, HPTX, HXL, IBB, IBP, INFN, INSM, IPXL, IRS, ISBC, ITG, JBLU, JEQ, JKHY, JOF, JRN, KAI, KCG, KEYS, KMG, KYO, LEVY, LLNW, LTM, LXFT, MANH, MASI, MATW, MDCA, MHFI, MIK, MLR, MMS, MNK, MSCI, MSO, MTN, MYRG, NBIX, NCLH, NEOG, NLNK, OLED, PAM, PBIP, PCYC, PNK, PRSC, REGN, REV, ROL, SBH, SCHL, SKYW, SPLP, SPNC, SRCL, SRDX, SSD, SSP, SUNE, SUSQ, SVU, TA, TEO, TGS, TGT, TSEM, TSRO, TWOU, TYL, UA, ULTI, USCR, UTHR, VAC, VICR, VLRS, VRTX, WAL, WSM, XL, Y, ZNH

Stocks that traded to 52 week lows: ACRX, ACTG, ANR, ARLP, ASPS, AUMN, AXPW, BELFA, BIS, BOCH, BOOM, CALL, CBD, CIG, CIZN, CMLS, CNNX, CTG, CTIC, CUI, CVEO, DANG, DEJ, DNN, DNOW, DOVR, DSKY, DWSN, EDD, EGF, EGY, EJ, ELON, ETAK, ETF, FENG, FORD, FREE, FTEK, FTGC, GEOS, GHI, GLF, GLRI, GOL, GORO, GULTU, HELI, HNR, IPI, IRG, JOEZ, KBR, KEYW, KYE, LAYN, LEJU, LF, LFL, LITB, LOCM, LOR, MAT, MGF, MIL, MRIN, MRVC, MTLS, MX, NADL, NDRO, NTG, NTP, OII, ORMP, OTIV, PBT, PCOM, PDBC, PFIE, PFMT, PICO, PKX, PLUG, POWL, PRGN, PT, PTY, PVH, QUIK, RCPI, REDF, RENN, ROYT, RYAM, SCHN, SDLP, SFY, SINA, SMLP, SMTX, SPRT, SRF, SSE, SVBL, SXCP, TAHO, TCPI, TGB, TGEN, TMST, TRCH, TRX, TST, UCP, UPIP, WIA, WIW, WLB, WRES, YOKU, ZHNE, ZU

ETFs that traded to 52 week highs: IBB, IHF, XBI, XRT

ETFs that traded to 52 week lows: AFK, DJP, OIL, PPLT, RJA, USCI, USO

8:05 am NetList announces it has prevailed against a second wave of attacks on the validity of three Netlist patents asserted against the ULLtraDIMM product from SanDisk (SNDK) and Diablo Technologies (NLST) : Co announces it has prevailed against a second wave of attacks on the validity of three NLST patents asserted against the ULLtraDIMM product from SanDisk (SNDK) and Diablo Technologies. The United States Patent and Trademark Office for the second time, rejected concerted attempts to invalidate these fundamental patents.

Fifteen petitions in total have been filed against the seven NLST patents asserted against SNDK and Diablo. Both parties are now barred from filing IPR petitions on the '185, '833, and '187 patents in the pending litigation. The PTAB did institute reviews of two NLST patents related to self-test technologies and two patents related to load reduction. These reviews are expected to conclude later this year.

8:04 am JinkoSolar Holding announces Information from fire accident at one of its raw material processing workshops; no casualties and damages to be between RMB0.5 million - RMB1 million (JKS) : JKS provided information in relation to a fire accident that occurred at one of its raw material processing workshops in Shangrao city, Jiangxi Province, China. The fire broke out on the morning of March 17, 2015 and was put out by firefighters within one hour. There were no casualties and the surrounding area and communities were not impacted. The Company estimates the damages to be between RMB0.5 million to RMB1 million. The incident is not expected to have any material impact on the Company's operations, financials or delivery commitments to its customers.

[ReturntoSender]

From Briefing.com: There were two markets on Wednesday: the one before the Federal Open Market Committee (FOMC) policy decision at 2:00 p.m. ET and the one after the FOMC decision at 2:00 p.m. ET.

The one before the decision was weak. The one after the decision was decidedly strong.

Stocks, bonds, and commodities all rallied sharply after the release of the policy directive, which didn't contain the word "patient" in it, but nonetheless still sounded quite dovish in its totality when also taking into account committee members' lowered central tendency projections for real GDP and PCE inflation for the next two years and the potential path of the fed funds rate this year.

The first impression of things is that market participants are not fearing a rate hike in the near future. That was evident in the 2-yr note yield dropping 13 basis points to 0.54% and the U.S. Dollar Index getting crushed as the euro and the yen soared.

The S&P 500, which was trading at 2161 just before the release, ended Wednesday at 2099. Every sector participated in the advance, with energy (+2.9%) and utilities (+2.7%) at the front of the pack. The information technology sector (+1.3%) outperformed the S&P 500 (+1.2%) by a slim margin.

Notable news from sector components included the following:

Adobe Systems (ADBE 76.89, -2.77, -3.5%): Reported Q1 (Feb) earnings of $0.44 per share, excluding non-recurring items, which was ahead of analysts' average expectation. Revenues rose 10.9% year/year to $1.11 bln, which was also ahead of estimates. Company sees Q2 revenue in the range of $1.125-1.175 bln and EPS in the range of $0.41-0.47, excluding items.

Apple (AAPL 128.47, +1.43, +1.2%): Digitimes details news that Apple iPhone 6 shipments may reach 53 mln in Q1

Motorola Solutions (MSI 66.65, +1.33, +2.0%): A new $26 mln Project 25 communications system from Motorola Solutions has now been implemented by Las Vegas Metropolitan Police Department to help officers communicate

Oracle (ORCL 44.13, +1.26, +3.0%): Reported Q3 (Feb) earnings of $0.68 per share, in-line with estimates. Revenues rose 0.2% year/year to $9.33 bln, which was slightly below expectations. Without the strengthening of the U.S. dollar, total revenues would have been up 6% as measured in constant currency. Said currencies continue to remain volatile so it is only providing outlook in constant currency (which is not comparable to estimates. Sees Q4 revenue growth of 1-6% in constant currency, non-GAAP EPS of $0.90-0.96, and GAAP EPS of $0.76-0.82. Separately, Oracle announced that its Board of Directors declared a quarterly cash dividend of $0.15 per share of outstanding common stock, reflecting a 25% increase over the current quarterly dividend of $0.12.

Qualcomm (QCOM 70.23, +0.42, +0.6%): Announced its DragonBoard 410c product's support of Windows 10; support targeted at IoT devices and Internet of Everything (IoE) applications Xilinx (XLNX 41.60, +0.62, +1.5%): Announced availability of its 100G IEEE 802.3bj Reed-Solomon FEC IP for data center, service provider, and enterprise applications.Elsewhere in the technology space:

Agilent (A 42.12, +0.54, +1.3%): Announced Mike McMullen, President and COO of the company, has been elected CEO by its board of directors, effective immediately. McMullen succeeds William (Bill) Sullivan, who becomes a company advisor until he retires on Oct. 31, 2015.

Microsemi Corporation (MSCC 34.68, +0.82, +2.4%): Announced it will acquire Vitesse Semiconductor (VTSS 5.34, +1.45, +37.3%) for $5.28 per share through a cash tender offer; total transaction value is ~$389 mln; Under terms, VTSS has 21 day go-shop-period to solicitsuperior proposals. Based on current assumptions, Microsemi expects the acquisition to be $0.16 to $0.20 per share accretive in its first full fiscal year ending September 30, 2016. Separately, Microsemi said as of this date it remains comfortable with its Jan. 22, 2015 non-GAAP guidance for its second fiscal quarter of 2015, ending March 29, 2015.

TripAdvisor (TRIP 84.31, +0.92, +1.1%): Unveiled an online travel review guide with review-writing tips based on a survey of more than 100,000 travelers and hospitality business owners.Analyst Action:

Apple (AAPL 128.50, +1.46, +1.2%): target raised to $130 from $124 at Jefferies; Hold

FLIR Systems (FLIR 31.51, -0.43, -1.4%): downgraded to Outperform from Strong Buy at Raymond James; target lowered to $38 from $41

Micron (MU 28.15, +0.49, +1.8%): target lowered to $40 from $45 at Jefferies; Buy

Oracle (ORCL 44.13, +1.26, +2.9%): target raised to $50 from $47.50 at Credit Suisse; Outperform

Priceline (PCLN 1181.69, +28.12, +2.4%): Piper Jaffray reiterates Overweight rating4:15 pm : The stock market spent the first half of the Wednesday session in the red, but surged into the green following the latest policy statement from the Federal Open Market Committee. The S&P 500 settled higher by 1.2% with all ten sectors ending in the green.

Over the past few days, much of the discussion centered around today's FOMC Statement with participants speculating whether the central bank was going to remove its call for patience. Although the Fed took out "patient," the statement remained quite dovish as the Fed lowered its 2015 GDP forecast range to 2.3%-2.7% from 2.6%-3.0% that was expected in December. Furthermore, the central bank lowered its inflation forecast range to 0.6%-0.8% from 1.0%-1.6%.

Staying on the inflation theme, the committee noted that it needs to be "reasonably confident" that inflation will move back towards the 2.0% objective before hiking rates.

The S&P 500 spiked about 20 points immediately following the statement and continued its advance as the afternoon progressed. Similarly, Treasuries surged in reaction to the diminished likelihood of June rate hike with the 10-yr yield falling 10 basis points to 1.95%. The benchmark note continued its advance during electronic trading, pressuring its yield to the lowest level since early February (1.92%).

Conversely, the dovish tone weighed on the greenback, sending the Dollar Index (97.48, -2.11) lower by 2.2% to last week's levels. Notably, the euro jumped nearly 3.0% to 1.0900, and the pullback in the dollar gave a boost to commodities. Gold futures spiked 1.7% to $1168.20/ozt while crude oil rallied 3.0% to $44.77/bbl. In turn, the energy sector (+2.9%) finished the day in the lead while the utilities sector (+2.7%) led the countercyclical side.

The utilities sector solidified its spot atop this week's leaderboard (+4.3% week-to-date) while the top-weighted countercyclical group-health care (+1.3%)-settled in-line with the market. Interestingly, biotechnology struggled to keep pace with the iShares Nasdaq Biotechnology ETF (IBB 358.14, +1.89) climbing 0.6%. To be fair, the biotech ETF still managed to register its fifth consecutive gain while setting a fresh record high.

Switching back to the cyclical side, the top-weighted technology sector (+1.3%) finished just ahead of the broader market with Oracle (ORCL 44.13, +1.26) providing support. The sector heavyweight spiked 2.9% after reporting in-line earnings on below-consensus revenue; however, the company boosted its quarterly dividend by 25.0% to $0.15/share. In other sector earnings, Adobe (ADBE 76.89, -2.77) lost 3.5% after its cautious guidance for Q2 overshadowed a bottom-line beat.

Elsewhere, transport stocks underperformed after FedEx (FDX 173.30, -2.41) beat bottom-line estimates and guided below consensus estimates. Shares of FDX fell 1.4% while the broader Dow Jones Transportation Average added 0.4%. For its part, the industrial sector (+1.2%) settled in-line with the broader market.

Today's participation was ahead of average with more than 860 million shares changing hands at the NYSE floor.

Economic data was limited to the weekly MBA Mortgage Index, which fell 3.9% to follow last week's 1.3% decline.

Tomorrow, weekly Initial Claims (Briefing.com consensus 293K) and Q4 Current Account Balance (consensus -$105.00 billion) will be reported at 8:30 ET while February Leading Indicators (expected 0.2%) and March Philadelphia Fed Survey (consensus 6.9) will both be released at 10:00 ET.


Nasdaq Composite +5.2% YTD
Russell 2000 +3.9% YTD
S&P 500 +2.0% YTD
Dow Jones Industrial Average +1.4% YTD

DJ30 +227.11 NASDAQ +45.39 SP500 +25.07 NASDAQ Adv/Vol/Dec 1799/1.84 bln/1115 NYSE Adv/Vol/Dec 2552/862.8 mln/562 3:35 pm :

Following the Fed statement, the dollar index swiftly dropped to a new low for today, which provided support to select commodities
Gold and silver spiked as a result, while crude oil climbed higher
Apr gold closed pit trading $3.20 higher at $1151.10/oz, but rallied above $1172/oz after the Fed statement
May silver closed flat at $15.53/oz, but surged above $16/ox post-Fed
Natural gas was already up notably ahead of tomorrow's EIA weekly storage report
Apr nat gas closed $0.06 higher at $2.92/MMBtu
Copper, on the other hand, was in the red all day. May copper finished the session $0.08 lower at $2.56/lb, but rallied as high as $2.61/lb post-Fed

4:16 pm Novatel Wireless Officers receive 30% of salary as company stock (MIFI) : Co announced a new compensation structure for the Company's executive management. Each of the Company's executive officers has volunteered to receive 30% of their 2015 base salary in the form of stock, rather than cash.

Michael Newman, Executive Vice President and Chief Financial Officer, agreed to take 30% of his base salary in the form of restricted stock commencing with his hire in September 2014, and earlier this week, Dr. Slim Souissi, President and Chief Operating Officer, started receiving 30% of his 2015 base salary in the form of restricted stock.

4:08 pm Jabil Circuit beats by $0.05, reports revs in-line; guides Q3 EPS in-line, revs in-line; reaffirms FY15 EPS guidance, revs guidance (JBL) : Reports Q2 (Feb) earnings of $0.50 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.45; revenues rose 20.5% year/year to $4.31 bln vs the $4.27 bln consensus.

Co issues in-line guidance for Q3, sees EPS of $0.43-0.55, excluding non-recurring items, vs. $0.47 Capital IQ Consensus Estimate; sees Q3 revs of $4.35-4.55 bln vs. $4.43 bln Capital IQ Consensus Estimate.

Co reaffirms guidance for FY15, sees EPS of $1.85-2.15, excluding non-recurring items, vs. $2.02 Capital IQ Consensus Estimate; sees FY15 revs of $17.5-18.5 bln vs. $18.02 bln Capital IQ Consensus Estimate.

"We are squarely on track to deliver targeted revenue and earnings for the fiscal year, all while continuing to invest for future growth."

12:52 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

ZMH (117.38 +1.82%): Reports out that regulators may conditionally clear Biomet bid
BP (38.53 +1.88%): Up on M&A speculation.

Large Cap Losers

ADBE (76.26 -4.27%): Reported Q1 (Feb) earnings of $0.44 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.39; revenues rose 10.9% year/year to $1.11 bln vs the $1.08 bln consensus; guided Q2 EPS and revs below consensus.
FDX (172.11 -2.05%): Beat Q3 consensus EPS estimates by $0.13, reported revs in-line; narrowed FY15 EPS, just below consensus; Lowered global growth outlook for 2015.

Mid Cap Gainers
HLF (37.31 +8.35%): Up following reports that a California judge has thrown out an investor lawsuit related to claims that the company is a pyramid scheme.
AKRX (48.21 +9.96%): Announced the filing of its previously outstanding financials, restated Q2 and Q3 statements due to an error in fair value allocation of assets acquired and liabilities assumed.
RAD (8.26 +4.82%): Heavy call activity seen followed by M&A speculation.

Mid Cap Losers

SQM (16.81 -23.94%): Under heavy pressure after Potash's (POT) representatives on SQM's board resigned after the Chilean Public Prosecutor made allegations of wrongdoing by SQM and its management.
NAV (28.13 -7.89%): Downgraded to Underweight from Equal-Weight at Morgan Stanley.
RSPP (25.4 -6.17%): Priced 5 mln shares of its common stock by the Company and 4 mln shares of its common stock by certain of the Company's stockholders at $25.80/share.

11:58 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (167) outpacing new lows (113) (:SCANX) : Stocks that traded to 52 week highs: ABC, ACGL, ACT, AFMD, AIN, AKAM, ALGT, AMAG, AMOT, AMPE, AYI, BANR, BBC, BERY, BIB, BIIB, BKYF, BOH, BSFT, CACC, CAF, CAJ, CATY, CCBG, CEMP, CERU, CGI, CNC, CNK, CONE, CORT, CPF, CPIX, CPRX, CSFL, CSH, CTLT, CTSO, CUBI, CVGW, DGX, DK, EBIX, EBSB, EIG, ESLT, ESPR, ETFC, EWBC, FDS, FHN, FLKS, FRME, FRSH, FTNT, GFF, GGAL, GTT, HBAN, HCBK, HCC, HMHC, HMPR, HNT, HPTX, HTBK, HTLF, HUM, HW, HZNP, IBB, IBP, IIVI, INDB, INS, INSM, IPKW, IPXL, IRIX, IRS, ITG, JAZZ, JBL, JBLU, JEQ, JRN, KAI, KEY, KMG, KYO, LCI, LOGM, LTM, LVNTA, MATW, MDCO, MDGN, MDVN, MEI, MGLN, MLR, MMS, MNK, MNRO, MOH, MPWR, MRTX, MSCC, MSCI, MSO, MTSI, MVIS, MYL, NBIX, NCLH, NLNK, NTRS, NVDA, OLED, ONCE, PBIP, PCYC, PFPT, PFSI, PRGO, PUK, PVTB, QRVO, QUNR, REV, RGEN, RLH, RLI, RMD, ROG, RRGB, SCHL, SCI, SEMI, SIGI, SMMT, SPNC, SSP, STI, STMP, SUSQ, SYNC, SYNT, TA, TBNK, TGTX, TM, TROV, TSRO, TTMI, TYL, UAM, UBSI, UWN, VICR, VRTX, VTSS, WAL, WBS, WFC, WNR, ZAGG

Stocks that traded to 52 week lows: ACFN, ACTG, ANDE, ASCMA, ASPS, ATLS, AVP, AXPW, BALT, BBDO, BCH, BOCH, BPT, CIZN, CKH, CKP, CLF, COMT, CRK, CVEO, DAR, DNOW, DRYS, DWSN, DXR, EBIO, EGY, EJ, ESCR, ETAK, FAM, FCO, FMY, FREE, FTEK, FTGC, GEOS, GLBS, GLF, GORO, GULTU, IDI, IF, IPI, IRG, JOEZ, KBR, KEYW, KYE, LAYN, LEJU, LND, LODE, MAT, MCF, MDW, MGF, MICT, MIL, MIND, MTR, MX, NADL, NDRO, NOA, NOV, NTG, NTP, OMEX, ORMP, OTIV, OXY, PBT, PDBC, PDI, PFIE, PFMT, PHII, PICO, PLPC, PM, PRGN, PTY, RAS, ROYT, RYAM, SA, SFY, SGF, SMLP, SMM, SPEX, SQM, SRF, SRV, SSE, SVBL, SWSH, TGB, TGC, TORM, TRCH, TRX, TTF, UPIP, WG, WHZ, WRES, WTI, WYNN, XGTI, XPL, ZU

ETFs that traded to 52 week highs: EWJ, IAI, IBB, PPH

ETFs that traded to 52 week lows: AFK, DBA, DBC, DJP, FXB, FXS, GREK, JJA, OIL, PPLT, RJA, USO, VNM, XES

10:48 am Cadence Design and ARM (ARMH) announce strategic IP interoperability agreement (CDNS) : The multiyear agreement provides reciprocal access to relevant IP portfolios from the Cadence IP Group and ARM. Additionally, the agreement grants both companies rights to manufacture test chips containing Cadence IP and ARM IP and to provide development platforms to customers.

The IP Interoperability Agreement covers existing and future ARMCortex processors, ARM Mali GPUs, ARM CoreLink system IP, ARM Artisan physical IP, and ARM POP IP; Cadence Design IP including cores for PCI Express, MIPI, USB, HDMI, DisplayPort, Ethernet, analog, DDR/LPDDR PHY protocols

[ReturntoSender]

From Briefing.com: The stock market started Wednesday's session on a positive note, underpinned by a continued drop in long-term rates. The uptrend didn't last long though as renewed selling efforts in longer-dated Treasuries took yields higher which, in turn, knocked stocks lower.

The Treasury market action was all the more interesting because there was ample reason for longer-dated securities to do well today and they didn't. To wit, the April Retail Sales report showed no growth in sales versus March, import prices declined 0.4% in April, excluding oil, March business inventories were weaker than expected, weekly mortgage application volume declined 3.5%, and the $24 billion 10-yr note auction saw solid demand.

By the closing bell, the major averages were little changed.

The S&P 500 information technology sector (+0.5%) was the best-performing sector on Wednesday, bolstered by gains in the vast majority of its components. Apple (AAPL 126.01, +0.15, +0.1%) was among them, although it underperformed the sector.

The semiconductor group, which was a source of sector weakness on Tuesday, was a source of support on Wednesday, evidenced by the 0.6% gain in the Philadelphia Semiconductor Index.

Notable news items from sector components included the following:

Accenture (ACN 95.68, +0.26, +0.3%): Company and Moven have signed a services agreement to jointly develop digital banking solutions. In conjunction with the services agreement, the companies have also entered into an alliance agreement to provide digital banking solutions to banks. Through the services agreement, Accenture and Moven will collaborate on design and implementation services for developing digital banking capabilities.

Cisco (CSCO 29.35, +0.12, +0.4%): After Wednesday's close, reported Q3 (Apr) earnings of $0.54 per share, excluding non-recurring items, which was slightly ahead of analysts' average expectation. Revenues rose 5.1% year/year to $12.14 bln, slightly ahead of estimates. Cash flow from operations was $3.0 billion for Q3, compared with $2.9 billion in Q2. Cisco repurchased ~35 million shares of common stock under the stock repurchase program at an average price of $28.39 per share. Cash and cash equivalents and investments are $54.4 bln.

Facebook (FB 78.47, +0.98, +1.3%): Launched a new product for publishers 'Instant Articles' that allows them to create fast, interactive articles on Facebook. Separately, CNBC reported that Facebook announced contractors and vendors doing a significant amount of work with Facebook in the U.S. will be required to pay their workers at least $15 an hour in addition to other required benefits.

Microchip Technology (MCHP 49.65, +0.56, +1.2%): Announced that a wide variety of brands from car makers General Motors and Toyota Motor, including both volume and luxury vehicles, continue to deploy Microchip's MOST50 devices in their infotainment systems.

Salesforce.com (CRM 71.79, +0.02, +0.03%): Company and Sage forge strategic partnership to enable small businesses to run completely in the cloud.

Teradata (TDC 40.64, +0.63, +1.6%): Bloomberg reported that Matrix Asset Advisors, Inc., issued another letter calling for Teradata to consider selling itself.

Elsewhere in the technology space:

Alibaba (BABA 87.53, +0.76, +0.9%): Tmall.com, China's largest third-party B2C platform for brands and retailers and a business of Alibaba Group Holding has teamed up with The Walt Disney, America's mass media and entertainment company to be the first exclusive distributor of their Marvel Studio's 2015 blockbuster, Avengers: Age of Ultron merchandise on Tmall.com. This is the first time Alibaba Group has opened up its resources in connecting brands and filmmakers to establish a convenient model in developing a movie-related merchandise market made available online for movie fans.

Amazon.com (AMZN 426.87, -4.15, -1.0%): Citing people involved with the matter, TheInformation reported that Wal-Mart is prepping to launch a service that would compete with Amazon Prime

Ericsson (ERIC 11.30, +0.03, +0.3%): Announced a new contract with Far EasTone, whereby Far EasTone will make Ericsson its sole supplier, tasked with expanding and optimizing the telecom operator's 4G network

EZchip (EZCH 14.84, -4.73, -24.2%): Hit hard Wednesday after it was learned that EZCH's NPS-400 product line is currently not in Cisco's (CSCO 29.35, +0.12, +0.4%) plans. Cisco is the company's largest customer. Cisco's routing platform has recently begun production shipments with EZchip's NP-5 network processor, and based upon current information, EZCH does not believe a next generation successor for the NP-5 is likely to ship for approximately three years.

FireEye (FEYE 43.46, +2.16, +5.3%): Stock spiked on rumors of potential takeover interest in the company

JDS Uniphase (JDSU 12.50, +0.13, +1.1%): Announced Securities Purchase Agreement that will result from the planned spin-off of the CCOP business unit from JDSU. The company said that it has signed a definitive agreement with Amada Holdings Co., Ltd. of Japan, a manufacturer of machine tools for metal fabrication, to purchase up to $40 million of preferred stock of a subsidiary of Lumentum Holdings Inc., the publicly-traded company that will result from the planned spin-off of the CCOP business unit from JDSU. The spin-off is expected to happen in the third calendar quarter of 2015 and the final amount of Amada's investment will be determined based on initial trading of Lumentum Holdings Inc. common stock

Teradyne (TER 20.42, -0.03, -0.2%): The company announced it will acquire privately held Universal Robots, a Danish collaborative robot producer, for $285 million net of cash acquired plus $65 million if certain performance targets are met extending through 2018. The acquisition has been approved by the Board of Directors of each company and is expected to close in the second quarter of 2015 subject to customary closing conditions and regulatory approval. Collaborative robotics is a $100 million segment of the industrial robotics market growing at more than 50% per year.

TSMC (TSM 24.44, +0.06, +0.3%): According to industry sources that spoke with Digitimes, TSMC has reportedly landed SSD controller chip orders from Apple.

Analyst Action:

AOL (AOL 50.77, +0.25, +0.5%): downgraded to Hold from Buy at Deutsche Bank... downgraded to Neutral from Buy at Monness Crespi & Hardt

Microsoft (MSFT 47.62, +0.28, +0.6%): upgraded to Buy from Hold at Deutsche Bank; target to $55 from $44

Sohu.com (SOHU 66.78, -0.71, -1.1%): downgraded to Neutral from Overweight at JP Morgan

(Disclosure: Briefing.com has a business relationship with Microsoft)

4:13 pm Lam Research announced its Kiyo F Series conductor etch system is enabling the transition of 3D NAND and advanced DRAM into volume production (LRCX) : Co announced its Kiyo F Series conductor etch system is enabling the transition of 3D NAND and advanced DRAM into volume production.

Key etch requirements for these applications include achieving tight critical dimension (CD.V) uniformity and control for 3D NAND and uniform etch depth for DRAM.Leveraging proprietary Mixed-Mode Pulsing (MMP) technology, the Kiyo F Series delivers the performance needed for advanced memory applications while maintaining high productivity. As a result, the product has won numerous critical etch market positions for advanced memory and other technology inflections, which is leading to additional market share gains.

4:12 pm Cisco Systems beats by $0.01, reports revs in-line -- co will guide Q4 on the call (CSCO) : Reports Q3 (Apr) earnings of $0.54 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.53; revenues rose 5.1% year/year to $12.14 bln vs the $12.07 bln consensus.

Cash flow from operations were $3.0 billion for Q3, compared with $2.9 billion in Q2. Cisco repurchased ~35 million shares of common stock under the stock repurchase program at an average price of $28.39 per share.Cash and cash equivalents and investments are $54.4 bln.

4:10 pm : The stock market ended the midweek session on a flat note after sliding from its opening high. The S&P 500 settled just below its flat line to register its third consecutive decline while the Nasdaq Composite (+0.1%) outperformed throughout the day.

Prior to the open, the Retail Sales report for April (0.0%; Briefing.com consensus 0.2%) missed expectations for the fifth consecutive month. The economic disappointment helped Treasuries extend their overnight gains with the benchmark 10-yr yield hitting a morning low at 2.19%; however, Treasuries reversed from their morning highs and spent the day in a steady retreat (10-yr yield +3 bps to 2.28%) while the stock market followed suit.

Only four sectors registered gains, but the top-weighted technology sector (+0.5%) held the lead throughout the session and prevented the S&P 500 from registering a larger loss. In addition, the sector fueled the Nasdaq's outperformance with large cap names like Intel (INTC 32.64, +0.39), Microsoft (MSFT 47.62, +0.27), and Qualcomm (QCOM 69.73, +0.95) climbing between 0.6% and 1.4%.

Elsewhere among cyclical sectors, the industrial space (+0.2%) also spent the day in the green even as transport stocks lagged notably. The Dow Jones Transportation Average lost 1.1%, widening its year-to-date decline to 6.4% as 17 of its 20 components ended in the red. Delta Air Lines (DAL 46.78, +0.68) was a notable standout, adding 1.5% after announcing a $5 billion buyback program and boosting its dividend 50% to $0.135.

On the downside, the utilities sector (-1.1%) spent the session behind its peers while the consumer discretionary space (-0.6%) was the second-weakest performer. Sector heavyweight Comcast (CMCSA 56.28, -1.05) fell 1.8% while retailers also struggled following the disappointing economic data. The SPDR S&P Retail ETF (XRT 98.30, -0.29) lost 0.3%.

Also of note, the energy sector (-0.3%) was among the early leaders, but the growth-sensitive group was pressured by crude oil, which fell 0.4% to $60.46/bbl. The energy component could not rally even as the Dollar Index (93.72, -0.81) lost 0.9%.

Today's participation was in-line with Monday and Tuesday as roughly 700 million shares changed hands at the NYSE floor.

Economic data included Retail Sales, Import/Export Prices, Wholesale Inventories, and MBA Mortgage Index:


Retail sales were flat in April after increasing an upwardly revised 1.1% (from 0.9%) in March while the Briefing.com consensus expected retail sales an increase of 0.2%
Auto manufacturers reported a steep decline in the number of units sold in April (16.5 million SAAR from 17.1 million SAAR). That translated into a 0.4% decline at motor vehicle and parts dealers, down from a prior 2.9% increase
Excluding motor vehicles, retail sales increased a modest 0.1% after increasing an upwardly revised 0.7% (from 0.4%) in March while the consensus expected an increase of 0.4%
In the first quarter, the added income that was derived from lower oil prices was used to stockpile additional savings instead of boosting consumption. Now that gasoline prices are again on the rise, consumers are not only not liquidating their savings to pay for the higher gasoline costs, but they are adding more to their savings stockpile
Export prices, excluding agriculture, decreased 0.7% in April after increasing 0.2% in the prior reading
Excluding oil, import prices fell 0.4%, which followed last month's 0.4% decline
Business inventories increased 0.1% in March after increasing a downwardly revised 0.2% (from 0.3%) in February while the Briefing.com Consensus expected an increase of 0.2%
The changes in inventories for manufacturers (-0.2%) and merchant wholesalers (0.1%) were known prior to the release. The only new information was that retailer inventories increased 0.3% in March, down from a 0.5% increase in February
The weekly MBA Mortgage Index fell 3.5% to follow last week's 4.6% decline

Tomorrow, weekly Initial Claims (Briefing.com consensus 275K) and April PPI (consensus 0.2%) will be released at 8:30 ET.

Nasdaq Composite +5.2% YTD
Russell 2000 +2.4% YTD
S&P 500 +1.9% YTD
Dow Jones Industrial Average +1.3% YTD

11:52 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (98) outpacing new lows (50) (:SCANX) : Stocks that traded to 52 week highs: AAPC, ACLS, ALN, AMAG, AME, AOS, AVG, AVY, AXTA, AYI, BLMT, BT, CALM, CDK, CNO, CSRE, DEG, DHR, DRC, EBIX, ELOS, EMKR, ETE, EWBC, EXR, FCB, FDEF, FDS, FEUZ, FFKT, FISV, FIX, FRC, GAME, GT, GTIM, HASI, HCKT, HIFS, HOTR, HSP, HUBS, IBKR, ICCC, IDTI, ING, IPHI, IPKW, JBLU, KALU, KEY, KTWO, LLNW, LYG, MCK, MMAC, MOH, MTSL, NAP, NEM, NHTC, NICE, NVEE, OCR, OPK, OZRK, PAYC, PLL, PLXS, POWR, QABA, QCRH, QTWO, RBA, RELY, RGEN, SAR, SBCF, SCI, SCLN, SEIC, SHLX, SIGM, SLM, SNA, SNPS, SWK, SYT, TER, TFX, TRR, USAT, VRTU, WBS, WIFI, WNS, WVVI, ZBRA

Stocks that traded to 52 week lows: AJX, AKAO, APAM, ARAY, AVP, BSM, BWINB, CBAY, CDNA, CEL, CLTX, CNP, CRCM, CRD.B, DEST, DRWI, DXM, EMMS, ESI, ESIO, EZCH, GLRE, INF, INPH, IPDN, KEM, KORS, KSU, MCF, MDW, MNTX, NCS, NNVC, NPF, NQP, NSPR, NYRT, OFG, ONTY, ORN, PFIS, PHIIK, PTNR, PX, REXI, RFP, RLJE, SHLO, SRT, STRI

ETFs that traded to 52 week highs: CROP, EWK, EWN, MOO

ETFs that traded to 52 week lows: JJA

[ReturntoSender]

From Briefing.com: The stock market started Thursday in rally mode, continued the day in rally mode, and finished the day in rally mode. The end result is that the S&P 500 closed at a new all-time high.

The impetus for the rally effort was an indirect one as some weaker-than-expected producer price index data once again reinforced the notion that the Federal Reserve will most likely not be raising the fed funds rate anytime soon. That thinking sparked some buying interest in the Treasury market that sent yields lower at both the front end and back end of the Treasury curve.

The S&P 500 information technology sector (+1.7%) was the clear winner in Thursday's session, which featured nice-sized gains in many of the large-cap components, including Apple (AAPL 128.95, +2.94, +2.3%) and Facebook (FB 81.37, +2.93, +3.7%). Altogether 61 of the sector's 66 components ended the day with a gain.

Notable news items from sector components included the following:

Apple (AAPL 128.95, +2.94, +2.3%): According to Fortune, it was told by sources that Apple's home automation platform, HomeKit, is likely to launch in early fall. There had been speculation HomeKit would arrive in early summer.

Applied Materials (AMAT 19.86, -0.07, -0.4%): After Thursday's close, reported Q2 (Apr) earnings of $0.29 per share, excluding non-recurring items, slightly ahead of analysts' average expectation. Revenues rose 3.8% year/year to $2.44 bln. For Q3, sees EPS of $0.31-0.35, excluding non-recurring items, and revenues +2-6% quarter-over-quarter to ~$2.49-2.59 bln. The guidance ranges are in-line with analysts' average expectations.

Avago Technologies (AVGO 126.94, +3.81, +3.1%): According to people familiar with the matter, Reuters reported that the company has reached out to Xilinx (XLNX 44.99, +1.26, +2.9%), Maxim Integrated Products (MXIM 34.10, +1.58, +4.9%), and Renesas Electronics Corp to gauge potential takeover interest. It was noted, however, that such discussions have not reached an advanced stage.

Computer Sciences (CSC 67.28, +2.77, +4.3%): Reuters, citing people familiar with the matter, said Computer Sciences is planning to break into two companies, separating its government business from its commercial information technology division.

Fidelity National Information Services (FIS 64.55, +0.69, +1.1%): Disclosed that effective May 8, 2015, Peter J.S. Smith resigned from his position as Chief Accounting Officer to pursue other employment opportunities. In connection with his resignation, Mr. Smith has agreed to provide services to the Company on a transitional basis.

Jabil Circuit (JBL 24.24, +0.68, +2.9%): Announced it has secured approval from the Penang State government in Malaysia to purchase 20 acres of land at the Batu Kawan Industrial Park to support expansion plans.The new site will focus on manufacturing products for the Enterprise, Industrial, Medical and Aerospace sectors.

Lam Research (LRCX 78.25, +1.01, +1.3%): Announced its Kiyo F Series conductor etch system is enabling the transition of 3D NAND and advanced DRAM into volume production

Symantec (SYMC 25.90, +0.58, +2.3%): After Thursday's close, reported Q4 (Mar) earnings of $0.43 per share, excluding non-recurring items, slightly below analysts' average expectation. Non-GAAP revenues fell 6.2% year/year to $1.55 bln. For Q1, sees EPS of $0.41-0.44, excluding non-recurring items, and revenues of $1.50-1.54. The high end of both guidance ranges is below analysts' average expectation. For FY16 sees EPS of $1.80-1.90, excluding non-recurring items, and revenues of $6.21-6.35 bln.
Elsewhere in the technology space:

Alibaba (BABA 88.40, +0.87, +1.0%): Acquired a minority stake in the logistics provider Shanghai YTO Express; financial terms not disclosed

CyberArk (CYBR 61.50, +0.20, +0.3%): Announced that Vodafone (VOD 36.93, +0.03, +0.1%) has implemented CyberArk to protect and manage its privileged accounts, identities and applications

FireEye (FEYE 42.39, -1.07, -2.5%): Cisco (CSCO 29.05, -0.30, -1.0%) downplayed acquisition rumors on its earnings conference call, with CEO John Chambers saying he "wouldn't bet on" the acquisition rumor (i.e. CSCO-for-FEYE) that circulated Wednesday. Separately, re/code reported that sources it spoke to familiar with FireEye's management said the company isn't willing to entertain takeover offers before it reaches $1 billion in annual revenue

Integrated Silicon (ISSI 20.14, +1.40, +7.5%): Cypress Semiconductor (CY 13.14, +0.49, +3.9%) sent letter to the Board of Integrated Silicon Solution offering to acquire 100% of its outstanding shares of common stock for $19.75 per share in cash. In the letter it was noted that the board of directors of Cypress has approved this proposal and that the proposal is superior to the $19.25 per share sale price ISSI agreed to in the Agreement and Plan of Merger entered into with the "Consortium" on March 12, 2015

Netease.com (NTES 140.83, +10.83, +8.3%): Reported Q1 (Mar) earnings of $1.55 per share, which was ahead of analysts' average expectation. Revenues rose 55.5% year/year to $590.46 mln, also ahead of estimates. In February 2014, the Company announced that its board of directors approved a new share repurchase program of up to US$100 million of the Company's outstanding ADSs for a period not to exceed 12 months. This program expired on February 16, 2015, and no ADSs were repurchased under it.

PMC-Sierra (PMCS 8.58, +0.21, +2.5%): Company agreed to purchase 5,500,348 shares of PMC common stock from Relational at a price of $8.16075 per share, for a total purchase price of approximately $44,886,965. The purchase of the shares is expected to be completed on May 14, 2015. Pursuant to the Stock Repurchase Agreement, the Company has agreed to repurchase the shares of common stock at a 2.5% discount to the last closing price per share of the Company's common stock on May 13, 2015, the date the agreement was entered into.

Analyst Action:

BlackBerry (BBRY 10.32, +0.06, +0.6%): target raised to $11 from $10 at Cowen

Cisco Systems (CSCO 29.05, -0.30, -1.0%): downgraded to Neutral at Sterne Agee CRT...Cisco Systems target raised to $32 from $30 at MKM Partners

EZchip (EZCH 14.79, -0.05, -0.3%): target lowered to $15 from $20 at Chardan Capital Markets

Intuit (INTU 103.82, +1.58, +1.6%): target raised to $100 from $85 at Deutsche Bank

Linear Tech (LLTC 47.11, +1.05, +2.3%): upgraded to Neutral from Underweight at JP Morgan

Teradyne (TER 20.72, +0.30, +1.5%): downgraded to Hold from Buy at Craig Hallum

YY (YY 64.87, -1.50, -2.3%): downgraded to Neutral from Overweight at JP Morgan

4:10 pm : The major averages registered solid gains on Thursday with the S&P 500 climbing 1.1%. The benchmark index settled at a fresh record high of 2121.10 while the Nasdaq Composite (+1.4%) outperformed.

Equity indices spiked out of the gate and spent the rest of the day in a slow drift higher with all ten sectors taking part in the advance. The top-weighted technology sector (+1.7%) followed yesterday's outperformance with another strong showing that kept the group in the lead throughout the session. Large cap names like Apple (AAPL 128.95 +2.94), Google (GOOGL 549.20, +9.71), Microsoft (MSFT 48.72, +1.09), and Facebook (FB 81.37, +2.93) gained between 1.8% and 3.7%, which helped overshadow a 1.0% decline in the shares of Cisco Systems (CSCO 29.05, -0.30) after the company reported a one-cent beat and issued in-line guidance. It is worth noting that Cisco's report triggered a Sterne Agee CRT downgrade to 'Neutral.'

Meanwhile, high-beta chipmakers could not keep pace with the sector, but the PHLX Semiconductor Index still gained 1.2%, ending ahead of the broader market. However, another high-beta group, biotechnology, contributed to the strength in the Nasdaq. To that point, iShares Nasdaq Biotechnology ETF (IBB 355.59, +4.74) gained 1.4% and climbed above its 50-day moving average (350.53) after struggling with that level since the end of April. In turn, the health care sector (+1.4%) settled among the leaders.

Similar to health care, the countercyclical consumer staples sector (+1.5%) also settled ahead of the S&P 500. Avon Products (AVP 7.07, +0.40) was a notable mover within the group after it was reported that PTG Capital offered $18.75 per share of AVP; however, Avon responded to the report, saying no such offer has been received and that it was unable to verify the existence of PTG Capital. Shares of AVP briefly rallied to their 50-day moving average (8.09), before narrowing their gain to 6.0% by the close.

Overall, five sectors added 1.0% or more while consumer discretionary (+0.4%) and energy (+0.1%) represented the only two laggards of note.

The discretionary sector was weighed down by apparel retailers after Kohl's (KSS 64.62, -9.89) delivered an uninspiring report. The stock fell 13.3% after disappointing comparable store sales and below-consensus revenue overshadowed a bottom-line beat.

Elsewhere, the energy sector lagged amid a pullback in crude oil. WTI crude settled lower by 1.0% at $59.88/bbl. even as the Dollar Index (93.40, -0.21) slipped 0.2%, registering its third consecutive decline.

Today's advance in equities was accompanied by a rallying Treasury market with the 10-yr yield falling five basis points to 2.23%.

Once again, participation was relatively light with roughly 700 million shares changing hands at the NYSE floor.

Economic data included Initial Claims and PPI:


The initial claims level declined to 264,000 for the week ending May 9 from an unrevised 265,000 while the Briefing.com consensus expected an increase to 275,000
That was the third consecutive week that the initial claims level remained below 270,000
The four-week moving average dropped to 271,750 from 279,500, which is the lowest level since April 22, 2000
The continuing claims level remained at 2.229 mln for the week ending May 2 after a slight upward revision (from 2.228 mln) for the week ending April 25
After the first increase since October 2014, producer prices resumed their downward trajectory in April with the PPI declining 0.4% in April after increasing 0.2% in March while the Briefing.com consensus expected an increase of 0.2%
Food prices declined 0.9% in April after declining 0.8% in March. These prices haven't increased on a month-to-month basis since November 2014.
Excluding food and energy, core PPI declined 0.2% in April after increasing 0.2% in March while the consensus expected an increase of 0.1%

Tomorrow, the Empire Manufacturing Index for May (Briefing.com consensus 4.5) will be released at 8:30 ET while April Industrial Production (consensus 0.1%) and Capacity Utilization (expected 78.4%) will both be reported at 9:15 ET. The day's data will be topped off with the 10:00 ET release of the preliminary reading of the Michigan Sentiment Index for May (expected 96.0).

Nasdaq Composite +6.7% YTD
Russell 2000 +3.5% YTD
S&P 500 +3.0% YTD
Dow Jones Industrial Average +2.4% YTD

DJ30 +191.75 NASDAQ +69.10 SP500 +22.62 NASDAQ Adv/Vol/Dec 2026/1.61 bln/876 NYSE Adv/Vol/Dec 2350/696.7 mln/753 3:35 pm :

The dollar index slid off of today's low, which gave a little support to precious metals late in the day
June gold ended $7.10 higher to $1225.00/oz, while July silver rose $0.26 to $17.49/oz
WTI oil remained in the red all day, ultimately closing $0.58 lower at $59.88/barrel.
Nat gas held gains after surged higher following the weekly storage data
June nat gas rose $0.07, closing at $3.00/MMBtu today

4:08 pm Applied Materials beats by $0.01, beats on revs; guides Q3 in-line (AMAT) : Reports Q2 (Apr) earnings of $0.29 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.28; revenues rose 3.8% year/year to $2.44 bln vs the $2.4 bln consensus.

Silicon Systems Group (SSG) orders were $1.70 billion, up 19 percent, with increases in foundry, flash and DRAM more than offsetting a decline in logic/other. SSG new order composition was: foundry 36 percent; DRAM 31 percent; flash 21 percent; and logic/other 12%.Co issues in-line guidance for Q3, sees EPS of $0.31-0.35, excluding non-recurring items, vs. $0.33 Capital IQ Consensus; sees Q3 revs of +2-6% QoQ to ~$2.49-2.59 bln vs. $2.51 bln Capital IQ Consensus Estimate.

1:21 pm Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (167) outpacing new lows (63) (:SCANX) : Stocks that traded to 52 week highs: ACIW, ACLS, AET, AHS, AKAM, AME, ANCX, ANSS, ANTM, AOS, ASB, ATVI, AVOL, AVY, AXTA, BANC, BF.A, BKCC, BOH, BPMC, BTO, BX, CALM, CATY, CDK, CFG, CIVI, CLVS, CMT, COLB, CORI, CRTO, CSCD, CSRE, CTRP, CVG, CYNI, CYRN, EBF, EBIX, EGRW, ELNK, ERI, EWBC, EXR, FDEF, FDS, FFA, FFKT, FISV, FIX, FRC, GAME, GIL, GPN, GS, GSL, GT, HASI, HCKT, HON, HSII, HUBS, HW, ICE, ICUI, IEUS, IFV, IMN, IMPV, INBK, INFA, ING, INTG, INTU, IPHI, IR, IRMD, ISBC, ISSI, JBL, JCTCF, JNPR, JPM, KALU, KEY, KMPH, KTWO, KWEB, LBY, LOGI, LTM, LYG, MCK, MDLZ, MKC, MMAC, MMI, MTG, NDAQ, NEM, NHTC, NICE, NOAH, NTES, NYCB, OBAS, OPK, OZRK, PAYC, PBH, PBHC, PERY, PFSW, PLAB, PLXS, PNFP, POWR, PRMW, PVTB, QABA, QLIK, QTWO, RARE, RBA, RELY, RGEN, RHT, ROCK, ROP, RTIX, SABR, SBCF, SBCP, SBNY, SEV, SHLX, SIVB, SKX, SLM, SLTC, SNA, SNPS, SNX, SPNS, SSB, SSFN, SWK, SYT, TDG, TFX, THRM, TNP, TRR, TXT, UEC, USAT, USCR, VMC, WBS, WIBC, WMS, WNS, WPPGY, WTFC, WX, ZBRA

Stocks that traded to 52 week lows: ALXA, AMPE, AUDC, AVP, BDR, BKH, BSM, CEL, CIM, CLTX, DCTH, DEST, DSCI, EMMS, FREE, FTR, GBL, GFY, HH, HOG, HTCH, I, IDN, INPH, IPDN, JMT, KNDI, KORS, KSU, LF, LOV, MCF, MDW, MPEL, MZF, NBB, NBD, NDLS, NEOT, NSPR, NTX, NUM, NUO, NYRT, PLPC, PTNR, RCMT, RCPI, RFP, RGSE, RSO, RST, SHLO, SNI, SPEX, STRI, TGEN, TRGT, TRIV, VALU, VDTH, VPG, WIN

ETFs that traded to 52 week highs: CROP, CUT, EWK, EWN, IGV, IYG, KBE, KRE, MOO

ETFs that traded to 52 week lows: VXX

[ReturntoSender]

From Briefing.com: It wasn't a good start to the shortened week for the stock market. Each of the major indices fell at least 1.0% as buyers proved to be a reluctant bunch.

That reluctance started early and it continued for most of Tuesday's session, which saw the S&P 500 flirt with testing support at its 50-day simple moving average (2096). The fact that the S&P 500 didn't pierce that level was perhaps the lone bright spot in Tuesday's action, which saw all ten sectors lose ground and all 30 Dow components end with a loss.

The catalysts for Tuesday's weakness were debatable, yet proximate causes included the following:

Some angst that the better than expected Durable Orders and New Home Sales reports for April fell in the realm of encouraging a rate hike from the Federal Reserve before the end of the year
A surge in the dollar, which weighed heavily on commodities and related stocks (the U.S.

Dollar Index rose 1.3% to 97.29)
Crude prices -2.7% to $58.04/bbl
Greek officials firing a barb that the country could possibly miss its debt payment to the IMF next week

The continued underperformance of the Dow Jones Transportation Average (-1.6%), which is deemed to have leading indicator status; and
The absence of any leadership

The worst-performing areas on the day were among the most economically-sensitive sectors, including energy (-1.6%), materials (-1.2%), and industrials (-1.1%). The information technology sector (-1.4%), meanwhile, was another key drag on things with losses in Apple (AAPL 129.63, -2.91) factoring prominently in its underperformance.

Notable news items from sector components included the following:\

Apple (AAPL 129.62, -2.92, -2.2%): A Nikkei Asian Review article reported that Apple is considering a JPY 200 bln ($1.62 billion) bond sale

EMC (EMC 26.29, -0.55, -2.1%): Company announced it has entered into a definitive agreement to acquire privately-held Virtustream. EMC Federation service provider partners will receive access to Virtustream's xStream cloud management software platform and be enabled to adopt and deliver their own branded services based upon it. The all-cash transaction is expected to close in the third quarter of 2015. Deal is valued at approximately $1.2 billion, and has been approved by the boards of directors of both EMC and Virtustream and the requisite Virtustream stockholders. The transaction is expected to have no material impact to EMC financial results in 2015 and is expected to be additive to revenues and accretive to EPS in 2016.

Hewlett-Packard (HPQ 33.38, -1.38, -4.0%): Announced it would acquire ConteXtream, a provider of OpenDaylight-based, carrier-grade SDN fabric for network functions virtualization; terms were not disclosed.

Qualcomm (QCOM 69.36, -0.15, -0.2%): Company and Daimler announced a strategic collaboration focused on pioneering innovation in the connected car. In the first phase of the collaboration, the companies will focus on transforming future vehicles with mobile technologies that enhance in-car experiences and vehicle performance such as 3G/4G connectivity, wireless charging technology for in-vehicle use and implementation of the Qualcomm Halo Wireless Electric Vehicle Charging technology. Separately, Qualcomm Technologies, a subsidiary of Qualcomm, announced that NTT DOCOMO is the first operator to adopt and implement the Qualcomm Snapdragon Sense ID biometrics platform.
SanDisk (SNDK 66.39, -0.69, -1.0%): Introduced the new SanDisk Z400s SSD, a cost effective solid-state drive designed to replace hard-disk drives in computing platforms and embedded applications.

In industry news, IDC said global smartphone growth is expected to slow to 11.3% in 2015 as market penetration increases in top markets. According to a new mobile phone forecast from the International Data Corporation Worldwide Quarterly Mobile Phone Tracker, smartphone shipments are expected to grow 11.3% in 2015, which is down from 27.6% in 2014. This is on par with IDC's previous smartphone forecast of 11.8% growth in 2015. IDC expects 2015 to bring two notable milestones. First, IDC projects this to be the first year in which China's smartphone growth, forecast to be 2.5% in 2015, will be slower than the worldwide market.

Elsewhere in the technology space:

Alcatel-Lucent (ALU 3.77, -0.07, -1.8%): Announced selection by the Beijing and Nanning Railway Bureaus, to upgrade communication networks for several rail lines in China

Amazon.com (AMZN 425.47, -2.16, -0.5%): The Wall Street Journal reported that Amazon.com plans to compete with Etsy (ETSY 17.09, -0.08, -0.5%) in the handmade marketplace.

FireEye (FEYE 45.16, +0.09, +0.2%): After Tuesday's close, company announced its intention to offer, subject to market conditions and other factors, $300.0 million aggregate principal amount of convertible senior notes due 2035 and $300.0 million aggregate principal amount of convertible senior notes due 2035 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. FireEye expects to use a portion of the net proceeds of the offering of the notes to pay the cost of the prepaid forward stock purchase transactions and to use the remaining proceeds of the offering for general corporate purposes, including capital expenditures, investments, working capital and potential acquisitions and strategic transactions. FireEye said it has no commitments with respect to any such acquisitions or investments at this time.

Microchip Technology Inc. (MCHP 47.76, -0.64, -1.3%): Announced that the Volvo Car Group has migrated from MOST25 to the MOST150 standard in its all-new Volvo XC90 model, using Microchip's OS81110 Intelligent Network Interface Controllers

Priceline (PCLN 1195.78, -12.72, -1.1%): Announced an additional $250 mln investment in Ctrip.com International (CTRP 81.99, -2.64, -3.1%). The investment will be made via a convertible bond and Ctrip has granted permission to The Priceline Group to increase its ownership in Ctrip through the acquisition of Ctrip's American depositary shares in the open market so that The Priceline Group may hold up to 15% of Ctrip's outstanding shares. Immediately following issuance of the new $250 million bond and assuming conversion of the two bonds, The Priceline Group will own securities representing approximately 10.5% of Ctrip's outstanding shares.

Qihoo 360 Tech. (QIHU 54.71, -0.55, -1.0%): The company announced it has entered into an agreement with Coolpad Group Limited to increase its ownership stake in the COOLPAD E-COMMERCE INC., the joint venture established by with Coolpad in April 2015, to 49.5% by purchasing 4.5% shares in the JV from Cooldpad in the total consideration of $45 million.

QLogic (QLGC 15.34, +0.04, +0.3%): Announced an expanded distribution agreement with Arrow OEM Computing Solutions under which Arrow will offer QLogic's complete portfolio of 10Gb Ethernet, Fibre Channel, and converged networking solutions throughout Europe, the Middle East and Africa.

Qualys (QLYS 39.75, +0.39, +1.0%): Announced a technology partnership agreement with NopSec to provide enhanced prioritization and remediation, to more efficiently protect networks from fast evolving threats and ensure compliance

Twitter (TWTR 36.51, -0.09, -0.3%): Re Code, citing multiple sources familiar with the situation, reports that Twitter has been in discussions to purchase FlipBoard in an all-stock deal that values FlipBoard at more than $1 billion, but that the talks seem to be stalled right now

Analyst Action:

Apple (AAPL 129.62, -2.92, -2.2%): target raised to $140 from $135 at Cowen

Ciena (CIEN 23.16, -0.08, -0.3%): target raised to $28 from $21 at RBC Capital Markets

eBay (EBAY 58.72, -1.00, -1.7%): upgraded to Buy from Hold at Axiom Capital; target raised to $70 from $60

First Solar (FSLR 51.06, -4.01, -7.3%): downgraded to Underperform from Sector Perform at RBC Capital Markets

4:20 pm : It wasn't a good start to the shortened week for the stock market. Each of the major indices fell at least 1.0% as buyers proved to be a reluctant bunch.

That reluctance started early and it continued for most of Tuesday's session, which saw the S&P 500 flirt with testing support at its 50-day simple moving average (2096). The fact that the S&P 500 didn't pierce that level was perhaps the lone bright spot in Tuesday's action, which saw all ten sectors lose ground and all 30 Dow components end with a loss.

The catalysts for Tuesday's weakness were debatable, yet proximate causes included the following:

Some angst that the better than expected Durable Orders and New Home Sales reports for April fell in the realm of encouraging a rate hike from the Federal Reserve before the end of the year
A surge in the dollar, which weighed heavily on commodities and related stocks (the U.S. Dollar Index rose 1.3% to 97.29)
Crude prices -2.7% to $58.04/bbl
Greek officials firing a barb that the country could possibly miss its debt payment to the IMF next week
The continued underperformance of the Dow Jones Transportation Average (-1.6%), which is deemed to have leading indicator status; and
The absence of any leadership

The stock market managed to finish off its worst levels of the day as buying support came in just under 2100 on the S&P 500.

The worst-performing areas on the day were among the most economically-sensitive sectors, including energy (-1.6%), materials (-1.2%), and industrials (-1.1%). The information technology sector (-1.4%), meanwhile, was another key drag on things with losses in Apple (AAPL 129.63, -2.91) factoring prominently in its underperformance.

Pockets of relative strength were found among the market's more defensive-oriented groups like telecom services (-0.4%), consumer staples (-0.7%), and utilities (-0.7%), although the consumer discretionary sector (-0.6%) was one cyclical sector that held up reasonably well.

Separately, Charter Communications (CHTR 179.78, +4.45) and Time Warner Telecom (TWC 183.60, +12.42) bucked the broader trend after it was announced that Charter will acquire Time Warner Telecom in a cash-and-stock deal valued at approximately $78.7 billion, including debt.

The stock market's weak showing and the rumblings about Greece contributed to a significant pickup in the CBOE Volatility Index (VIX 14.07, +1.94), which jumped 16%. The latter hit its lows for the year last week, offering participants the opportunity to add some downside protection at relatively cheap prices. Additionally, the 10-yr Treasury yield dropped eight basis points to 2.13% on some safe-haven positioning.

Given the scope of Tuesday's losses, it was no surprise to see decliners beat advancers at the NYSE and Nasdaq by a significant margin. In turn, trading volume increased with 792 million shares changing hands at the NYSE. That was comfortably ahead of last Tuesday when 739 million shares were traded, marking the heaviest trading session in the prior week.

A look at today's economic data:

The Conference Board's Consumer Confidence Index increased to 95.4 in May from a downwardly revised 94.3 (from 95.2) in April. The Briefing.com Consensus expected the index to decrease to 94.0.
New home sales increased 6.8% in April to 517,000 from an upwardly revised 484,000 (from 481,000) in March. The Briefing.com Consensus expected new home sales to increase to 510,000.
Sales topped 500,000 for the third time in the first four months of 2015. Trends are significantly stronger than they were at this time in 2014, when an average of only 421,000 homes were sold each month.
Sales growth was the strongest in the Midwest (+36.8%), which offset declines in both the Northeast (-5.6%) and West (-2.3%).
Supply problems continue to plague the sector. During normal periods of buying and selling, supply usually runs at about 6 months' at the current sales pace. Lackluster construction growth during the recovery has pushed the supply rate down to 4.8 months.
The median new home sales price increased 8.3% y/y to $297,300.
Durable goods orders declined 0.5% in April after increasing an upwardly revised 5.1% (from 4.4%) in March. The Briefing.com Consensus expected durable goods orders to decrease 0.6%. A steep decline in defense (-12.8%) and nondefense (-4.0%) aircraft orders made up the bulk of the April decline.
Excluding transportation, durable goods orders increased 0.5% in April after increasing an upwardly revised 0.6% (from 0.4%) in March. The consensus expected these orders to increase 0.3%.
Orders of nondefense capital goods excluding aircraft increased 1.0% in April after increasing 1.5% in March. Shipments -- which factor into second quarter GDP calculations -- increased 0.8% in April after increasing 1.0% in March. That is the first time shipments of business capital have increased for two consecutive months since July and August 2014.

DJ30 -190.48 NASDAQ -56.61 SP500 -21.86 NASDAQ Adv/Vol/Dec 688/1.60 bln/2225 NYSE Adv/Vol/Dec 663/792 mln/2440

3:15 pm :

The dollar has extended its morning rally well into afternoon trading, which put selling pressure on oil, precious metals and copper going into the close
A set of positive mid-morning housing, producer and consumer economic data has caused the dollar index to currently trade up 1.4% to 97.33
Precious metals extended earlier losses into the close, fueled largely by inverse movements with the dollar index
June gold closed at -1.7% to $1186.70/oz and July silver closed at -1.8% to $17.05/oz
WTI oil also finished down 2.72% to $58.04/barrel for the session, driven by multiple catalysts- dollar strength, Mid-east tensions and considerations on the slowing of US oil rig shutdowns.
Natural gas closed modestly lower by 2.1% to $2.82/MMBtu while July copper lost 1.1% and closed at $2.78/lb

11:43 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (138) outpacing new highs (62) (:SCANX) : Stocks that traded to 52 week highs: AEC, ALN, ALR, ATAI, BPMC, BSQR, CAF, CAG, CBPO, CBS.A, CRUS, CTRP, CVC, DE, DRRX, DSKX, EHIC, ERI, ERN, FFKT, FOMX, FSI, FTNT, GGAC, GKNT, GTN, GTN.A, HALO, HCKT, HMST, INNL, IRMD, JFC, KWEB, LTM, MGPI, MOMO, MSCI, NORD, OLED, OPY, OSBC, OUTR, OZRK, PANW, PFSI, PLAY, PMC, PZZA, Q, QQQC, RELY, SAGE, SBCP, SIEN, TCX, TMUS, TRR, TWC, VRX, VSTO, ZSPH

Stocks that traded to 52 week lows: AAME, ACI, ACST, ACXM, AI, ANR, AP, APOL, ARLP, AXE, BBDO, BIOL, BLH, BLIN, BLT, BOOM, BTU, CBD, CDI, CDNA, CECO, CEL, CENX, CGEN, CIM, CKP, CLI, CLUB, CNAT, CNS, CPST, CRD.B, CSTM, CTIC, CTL, DAVE, DEJ, DEST, DGICA, DGSE, DSCI, DTF, DX, DXM, EGP, ELRC, ENZ, EOX, FCFS, FHCO, FOSL, FPT, FTEK, FTR, FXEN, GALT, GGB, GRC, GTY, HEAR, HGG, HK, HMY, HWCC, I, IGT, IKAN, IMRS, IO, ISH, JOE, KEM, KORS, LMIA, LTRX, MCF, MFV, MHG, MLHR, MNI, MTRX, MUH, MXWL, NATH, NCZ, NDLS, NGD, NNVC, NOR, NQP, NRP, NSC, NSPH, NTX, NUM, NYRT, OAKS, OESX, OMEX, ORN, QUIK, RBCN, RELL, RFIL, RFP, RGSE, RNWK, ROKA, RST, RXII, RYN, SGI, SGNL, SHLO, SHOS, SKBI, SPEX, SPW, SYNL, SYX, TC, TDC, TESS, TGD, TGH, TRIV, TROX, TRX, USEG, VIV, VPCO, VSAR, WHZ, WILN, WIN, WPG, WTW, WYNN

ETFs that traded to 52 week highs: EWH, HAO

ETFs that traded to 52 week lows: FUD, FXY, JJA, JO, RJA

Axcelis Technologies (ACLS) announced that it has received an order for a 200mm Purion H single wafer, high current implanter from TowerJazz Semiconductor. The system is scheduled to ship in the third quarter.

[ReturntoSender]

From Briefing.com: The stock market took a breather on Wednesday, but found its winning stride again on Thursday with the help of a dovish-sounding European Central bank, the "yes" vote in Greece to the austerity program, and uplifting earnings results from the likes of Citigroup (C 58.59, +2.13, +3.8%), Netflix (NFLX 115.81, +17.68, +18.0%), and Intel (INTC 29.90, +0.21, +0.7%).

The major indices closed at, or near, their highs for the day with the Nasdaq Composite (+1.3%) leading the way.

Once again, large-cap technology issues played a prominent role in the advance, none more so than Google (GOOG 579.85, +19.63, +3.5%), which rallied 3.5% ahead of its earnings report after Thursday's close. That report, by the way, turned out better than expected. Shares of GOOG were trading 8.0% higher in extended action as of this posting, which will be a supportive factor for the S&P 500 information technology sector come Friday morning.

The strength in Google and many of its peers, like Apple (AAPL 128.51, +1.69, +1.3%) and Microsoft (MSFT 46.66, +0.90, +2.0%), helped the information technology sector (+1.3%) outperform the S&P 500 (+0.8%).

Notable news items from sector components included the following:

Accenture (ACN 101.46, +1.50, +1.5%): Company and Hyundai Heavy Industries are collaborating to design a 'connected smart ship' that will enable ship owners to better manage their fleets and achieve potential operational savings through the application of digital technologies.

Corning (GLW 19.53, +0.48, +2.5%): Announced $2 bln share repurchase program; the program will expire on December 31, 2016.

eBay (EBAY 65.59, +2.15, +3.4%): Before Thursday's open, eBay reported Q2 non-GAAP EPS of $0.76 and revenue +7% to $4.4 bln, with strength across both PayPal and eBay. This excluded $0.3 billion of eBay Enterprise revenue that is now presented as discontinued operations. eBay and PayPal (PYPL) split will go into effect after the close on Friday. The full-year 2015 guidance provided for eBay specifically calls for net revenues to grow 3-5% on an FX-neutral basis with GAAP earnings per diluted share in the range of $1.40 - $1.45 and non-GAAP earnings per diluted share in the range of $1.72-1.77. Separately, managment announced that it has concluded the sale of its Enterprise division, for $925 mln, to Permira and Sterling Partners. The transaction, which is expected to close in the second half of 2015, is subject to certain regulatory approvals and customary closing conditions.

Facebook (FB 90.85, +1.09, +1.2%): According to The Wall Street Journal, Facebook's Oculus business acquired Israeli company Pebbles for approximately $60 million.

Google (GOOG 579.85, +19.63, +3.5%): After Thursday's close, reported Q2 (Jun) earnings of $6.99 per share, which was well ahead of analysts' average expectation. Revenues rose 11.1% year/year to $17.73 bln. Company said, "Had foreign exchange rates remained constant from the second quarter of 2014 through the second quarter of 2015, our revenues in the second quarter of 2015 would have been $1,103 million higher with a constant currency growth rate of 18% year over year." Google Website revenue: +13% year-over-year. Total TAC, as % of revenue, up 23%. Operating expenses as % of revenue were 35%. Q2 Aggregate Paid Clicks: +18 year-over-year and +7% quarter-over-quarter. Paid Clicks on Google sites +30% year-over-year and 10% quarter-over-quarter. Paid Clicks on Member sites -9% year-over-year and -2% quarter-over-quarter. Q2 Aggregate cost per click: -11% year-over-year and -4% quarter-over-quarter. CPC on Google sites -16% year-over-year and -5% quarter-over-quarter. CPC Google Member sites -3% year-over-year and -3% quarter-over-quarter.

Microsoft (MSFT 46.66, +0.90, +2.0%): Acquired FieldOne, provider of field service management solutions; terms not disclosed.

Qualcomm (QCOM 64.54, +0.67, +1.0%): Company issued statement on European Competition Authority Announcement, saying the following: "We were informed that the European Commission has taken the procedural step of "initiating proceedings" against Qualcomm with regard to the two ongoing investigations into Qualcomm's sale of chipsets for mobile devices. This step allows investigators to gather additional facts, but it represents neither an expression by the Commission on the merits of the case nor an accusation against the Company. While we were disappointed to hear this, we have been cooperating and will continue to cooperate with the Commission, and we continue to believe that any concerns are without merit."

Elsewhere in the technology space:

Advanced Micro Devices (AMD 1.87, -0.09, -4.6%): After Thursday's close, reported Q2 (Jun) loss of $0.17 per share, excluding non-recurring items, in-line with the company's preannouncement. Revenues fell 34.6% year/year to $942 mln. Company said, "Strong sequential revenue growth in our EESC segment and channel business was not enough to offset near-term challenges in our PC processor business due to lower than expected consumer demand that impacted sales to OEMs." For Q3, sees revenues of +3-9% quarter-over-quarter to ~$970-1027 mln. The high end of the range is below analysts' average expectation.

Fairchild Semi (FCS 15.07, -1.74, -10.4%): Before Thursday's open, reported Q2 (Jun) earnings of $0.12 per share, excluding non-recurring items, which was worse than analysts' average expectation. Revenues fell 4.4% year/year to $355.2 mln, which was also less than expectations. FCS reported second quarter adjusted gross margin of 33.2 percent, up 160 basis points from the prior quarter and 20 basis points lower than the second quarter of 2014. Adjusted gross margin increased nearly two points sequentially due primarily to higher factory loadings and manufacturing cost controls in the prior quarter. For Q3, FCS sees revenues of $355-375 mln. The high end of that range is below analysts' average expectation. Fairchild said, "Demand was weaker than expected during the second quarter from some mobile and appliance customers, the wireless telecom sector as well as general market distribution. We expect to increase sales in the third quarter due primarily to higher mobile and wireless telecom demand. Company expects adjusted gross margin to be 34.0 to 35.0 percent due primarily to lower manufacturing unit costs and improved product mix."

FireEye (FEYE 48.28, -0.31, -0.6%): Announced its state government focused intelligence sharing initiative with the National Fusion Center Association. The initiative is a collaboration between FireEye and the NFCA, including the joint development of Automated Threat Intelligence Exchange Network for the California State Threat Assessment System.

JDS Uniphase (JDSU 11.17, +0.02, +0.2%): Company announced several key dates in connection with the separation of its Communications and Commercial Optical Products business segment as a separate public company to be named Lumentum Holdings Inc., and the special dividend distribution of ~80.1% of Lumentum's common stock to JDSU shareholders. For every five shares of JDSU common stock held, JDSU shareholders will receive one share of Lumentum common stock. The special dividend distribution is expected to be effective at 12:01 am on Saturday, August 1, 2015. The distribution will be paid on the first trading day thereafter, Monday, August 3. The distribution of Lumentum common stock will complete the formal separation of CCOP from JDSU. After the distribution, Lumentum will be an independent, publicly-traded company.

Taiwan Semi (TSM 22.73, +0.17, +0.8%): Before Thursday's open, reported Q2 EPS of NT$3.06, which was ahead of analysts' average expectation. Revenues increased 12% year-over-year to NT$205.4 trln. Gross margin for the quarter was 48.5%, operating margin was 37.5%, and net profit margin was 38.7%. For Q3, TSM said revenue is expected to be between NT$207-210 bln. Gross profit margin is expected to be between 47% and 49% and operating profit margin is expected to be between 36.5% and 38.5%.

YY, Inc. (YY 58.42, +0.86, +1.5%): Formed a special committee of independent and disinterested directors, to review and evaluate its received 'going-private' proposal. The Board also authorized the Special Committee to, and expects that the Special Committee will, retain independent advisors, including independent financial and legal advisors, to assist it in the process of reviewing and evaluating the Proposal.

Analyst Action:
Accenture (ACN 101.45, +1.50, +1.5%): initiated with a Buy at Sun Trust Robinson Humphrey; target $115

Avago Technologies (AVGO 134.70, +2.98, +2.3%): initiated with an Outperform at BMO Capital

Google A (GOOGL 601.78, +17.82, +3.1%): upgraded to Outperform at BMO Capital Markets; target to $670

Intel (INTC 29.90, +0.21, +0.7%): upgraded to Hold from Sell at Ascendient Capital... Needham upgrades to Buy from Hold and sets target price at $37... Cowen raised its target to $33 from $32... Northland Capital raised its target to $32 from $31; Market Perform... Piper Jaffray cut its target $1 to $37

Paychex (PAYX 47.91, +0.15, +0.3%): downgraded to Neutral from Buy at Goldman Sachs

4:10 pm : The stock market finished Thursday on a higher note with the Nasdaq Composite (+1.3%) and S&P 500 (+0.8%) posting solid gains while the Dow Jones Industrial Average (+0.4%) ended the day closer to its flat line.

Equity indices spiked at the start, responding to overnight strength in the futures market. Shortly after yesterday's close, Intel (INTC 29.90, +0.21) and Netflix (NFLX 115.81, +17.68) reported better than expected results, which led to a surge in Nasdaq futures in particular.

Earnings notwithstanding, Nasdaq and S&P 500 futures received a second boost after the Greek parliament voted 229-64-6 in favor of austerity measures that will allow bailout negotiations to continue with the country expected to receive EUR86 billion in rescue funds. Furthermore, the European Central Bank, which held a policy meeting today, raised the country's allowance to Emergency Liquidity Assistance by EUR900 million, which will pave the way for Greek banks to open as soon as Monday.

As the U.S. opening bell approached, the focus shifted back to earnings with Citigroup (C 58.59, +2.13) and Goldman Sachs (GS 211.18, -1.78) reporting better than expected results. However, Goldman Sachs spent the day in negative territory, snapping its five-day streak. Still, the financial sector (+1.0%) ended among today's leaders, but Goldman's relative weakness kept the Dow under pressure.

Likewise, UnitedHealth (UNH 124.93, -0.93) also pressured the Dow despite reporting better than expected results. The stock narrowed its loss to 0.7% by day's end after being down as much as 3.1% following yesterday's record close. Furthermore, UnitedHealth pressured the health care sector (+0.5%), but hospital names also weighed. For instance, Community Health (CYH 60.99, -1.42) and Universal Health (UHS 141.25, -1.18) lost 2.3% and 0.8%, respectively, after Keybanc Capital Markets downgraded both listings to 'Sector Weight' from 'Overweight.' Biotechnology, however, picked up the slack with iShares Nasdaq Biotechnology ETF (IBB 395.67, +4.91) climbing 1.3%. That strength, combined with a solid showing from the technology sector (+1.3%) kept the Nasaq ahead of the broader market throughout the day.

Large cap technology components like Apple (AAPL 128.51, +1.69), Google (GOOGL 601.78, +17.82) and Microsoft (MSFT 46.66, +0.90) climbed between 1.3% and 3.1% while Intel alternated between gains and losses before settling higher by 0.7%. Other chipmakers struggled, evidenced by the PHLX Semiconductor Index, which eked out a modest gain (+0.2%).

Overall five sectors ended ahead of the broader market, but only two cyclical groups displayed relative strength while consumer staples (+1.0%), telecom services (+1.4%), and utilities (+1.5%) outperformed on the countercyclical side.

On the downside, the materials sector (-0.3%) spent the day in negative territory amid broad weakness while the energy sector (+0.1%) was able to stay in the green even though crude oil fell 1.0% to $50.91/bbl.

Treasuries displayed losses during overnight action, but a morning recovery returned the benchmark 10-yr yield to unchanged by the close (2.35%).

Today's participation was a bit lighter than yesterday with 723 million shares changing hands at the NYSE floor.

Economic data included Initial Claims, NAHB Housing Market Index, and Philadelphia Fed Survey:


The initial claims level declined to 281,000 for the week ending July 11 from a downwardly revised 296,000 (from 297,000) while the Briefing.com consensus expected a decline to 283,000
The four-week moving average increased to 282,500 from 279,250, which is the first time that the four-week moving has surpassed 280,000 since the end of April
The continuing claims level decreased to 2.215 mln for the week ending July 4 from a downwardly revised 2.327 mln (from 2.334 mln) while the consensus expected a decrease to 2.285 mln
The NAHB Housing Market Index for July rose to 60 from 59 while the Briefing.com consensus expected the index to hold at 59
The Philadelphia Fed's Business Outlook Survey declined to 5.7 in July from 15.2 in June while the Briefing.com consensus expected a drop to 12.5
There was a general softening in manufacturing conditions across all areas with four out of the nine survey subcomponents contracting in July
The Shipments Index declined to 4.4 in July from 14.3 while Employment conditions were notably weak
The Number of Employees Index turned negative, falling from 3.8 in June to -0.4 in July
The Average Employee Workweek Index dropped to 4.0 from 4.7

Tomorrow, June CPI (Briefing.com consensus 0.3%) and June Housing Starts (consensus 1.12 million)/Building Permits (expected 1.15 million) will be reported at 8:30 ET while the preliminary reading of the Michigan Sentiment Index for July (consensus 96.5) will be released at 10:00 ET.

Nasdaq Composite +8.3% YTD
Russell 2000 +5.4% YTD
S&P 500 +3.1% YTD
Dow Jones Industrial Average +1.6% YTD

DJ30 +70.08 NASDAQ +64.24 SP500 +16.89 NASDAQ Adv/Vol/Dec 1893/1.68 bln/942 NYSE Adv/Vol/Dec 2165/724.8 mln/966

3:40 pm :

The dollar index continued to trade higher today, which weighed on commodities
Both oil and natural gas futures both remain near today's lows in electronic trade and also had separate catalysts weighing on prices
WTI crude has been weak following a number of variables, including the Iran nuclear agreement, which raises future oil exports, the OPEC report and the IEA oil report
Natural gas futures felt additional pressure today from the weekly nat gas storage data
Ultimately, Aug crude closed $0.49 lower to $50.91/barrel, while Aug nat gas lost $0.06 to $2.86/MMBtu
Aug gold fell $3.60 today to $1143.70/oz, while Sept silver lost $0.07 to $14.98/oz
Sept copper ended the session unchanged at $2.52./lb

12:02 pm Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (268) outpacing new lows (143) (:SCANX) : Stocks that traded to 52 week highs: ABCD, ABCO, ABG, ACET, ACN, AEO, AEPI, AF, AFG, AFMD, AIG, AIZ, ALDW, ALGN, ALGT, ALK, AMCX, AMED, AMSF, ANAC, ANSS, AOI, APPF, ASGN, ASND, AVY, BBP, BCS, BEAT, BFAM, BHBK, BKU, BLKB, BNCL, BNCN, BOFI, BRKL, BTO, BUD, BZC, C, CARA, CASY, CATY, CBSH, CBU, CBZ, CEB, CFNL, CHCO, CHDN, CHE, CIVI, CLGX, CMCSA, CMCSK, CNOB, COF, COLB, CRTO, CSFL, CSL, CTBI, CTRX, CUBI, CUK, CVBF, CVC, CVS, DATA, DCM, DG, DIS, DOX, DST, DXCM, DXYN, DY, EBAY, EFSC, EGBN, EL, ELLI, ENH, ENSG, EROS, ESGR, ESNT, EURN, EW, FCB, FCF, FICO, FISV, FLML, FNB, FNBC, FRME, FULT, FV, FXCB, GD, GMED, GNCMA, GPI, GPN, GRX, GSBC, GTN, HAFC, HAIN, HDS, HFWA, HIG, HMN, HOMB, HPY, HRTG, HSIC, HSP, HTBK, HZNP, IBCP, IMGN, INDB, INN, JBLU, JNP, JPM, LAD, LAZ, LEG, LHCG, LION, LKFN, LKQ, LNCE, LPCN, LUX, MAN, MBLY, MCO, MDCO, MHLD, MIDD, MMAC, MSCI, MTB, MTN, NAT, NBTB, NCLH, NDRM, NFLX, NGHC, NJ, NNA, NSTG, NTRI, NTT, NVO, NVR, NVS, NWBO, OCFC, OKSB, ONFC, OPB, OSIR, OUTR, PANW, PEGA, PFNX, PFPT, PGR, PLMT, PNC, PNFP, PRAH, PRK, PSCF, PVTB, PZN, Q, QADA, QGEN, QLIK, QQQ, QQXT, QTWO, RAI, RDY, RE, REPH, RGA, RLH, RLI, RMTI, RNST, RTRX, SBCF, SBNY, SBUX, SCHW, SCL, SFBS, SFNC, SFST, SGU, SIGI, SIRO, SNFCA, SNPS, SPSC, SQBG, SRNE, STBA, STBZ, STFC, STI, STMP, STNG, STRZA, SUBK, SUPN, SUSQ, SYF, TDY, TECH, TG, TGLS, THG, TI, TLMR, TMK, TOWN, TPX, TREE, TSCO, TSO, TSRO, TSS, TWC, TWX, TYL, UBSI, UCBI, UFCS, UFPI, ULTA, USB, USCR, VGR, WAL, WASH, WBA, WDFC, WFC, WIBC, WIX, WNS, WSBC, WSM, WTFC, XNCR, XON, YDKN, ZGNX

[ReturntoSender]

From Briefing.com: 4:33 pm Texas Instruments misses by $0.01, reports revs in-line; guides Q3 below consensus (TXN) :

Reports Q2 (Jun) earnings of $0.65 per share, $0.01 worse than the Capital IQ Consensus of $0.66 vs. $0.60-0.70 guidance; revenues fell 1.8% year/year to $3.23 bln vs the $3.26 bln consensus and $3.12-3.38 bln guidance, inclusive of notably weak demand in communications equipment and continued strong demand in automotive. Co issues downside guidance for Q3, sees EPS of $0.62-0.72 vs. $0.74 Capital IQ Consensus Estimate; sees Q3 revs of $3.15-3.41 bln vs. $3.45 bln Capital IQ Consensus Estimate."our core businesses of Analog and Embedded Processing, together, grew slightly year over year and comprised 85 percent of second-quarter revenue. Analog delivered its eighth consecutive quarter of year-over-year growth. "Gross margin of 58.2 percent was up 1 percentage point from a year ago, reflecting the diversity and longevity of our product portfolio, as well as the efficiency of our manufacturing strategy.

4:32 pm MKS Instruments beats by $0.01, beats on revs; guides Q3 EPS in-line, revs in-line (MKSI) : Reports Q2 (Jun) earnings of $0.62 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.61; revenues rose 18.0% year/year to $218.0 mln vs the $210.8 mln consensus. Co issues in-line guidance for Q3, sees EPS of $0.50-0.64, excluding non-recurring items, vs. $0.54 Capital IQ Consensus Estimate; sees Q3 revs of $195-215 mln vs. $204.4 mln Capital IQ Consensus Estimate.

4:27 pm Xilinx beats by $0.01, misses on revs; guides Q2 revs below consensus (XLNX) :

Reports Q1 (Jun) earnings of $0.55 per share, $0.01 better than the Capital IQ Consensus of $0.54; revenues fell 10.4% year/year to $549 mln vs the $555.39 mln consensus. Co issues downside guidance for Q2, sees Q2 revs -2 to -6% QoQ to ~$516-538 mln vs. $575.15 mln Capital IQ Consensus; gross margin 69-70%; additional guidance implies EPS of ~$0.42-49 vs. $0.56 consensus.

4:13 pm Mellanox Tech beats by $0.13, beats on revs; guides Q3 revs above consensus (MLNX) : Reports Q2 (Jun) earnings of $0.75 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus Estimate of $0.62; revenues rose 58.7% year/year to $163.1 mln vs the $157.9 mln consensus. Co issues upside guidance for Q3, sees Q3 revs of $165-170 mln vs. $163.4 mln Capital IQ Consensus Estimate.

Non-GAAP operating margin was 22.2% vs 20.6% in 1Q15."Our InfiniBand solutions continue to take market share on the TOP500 list, and we now connect 51.4% of the systems...Faster interconnects are needed in multiple data-intensive markets and applications such as database, Big Data, financials, machine learning, Web 2.0, cloud, high-performance computing, health care, insurance, transportation, homeland security, media and entertainment and many more. Mellanox is the first company to provide such end-to-end solutions to the market. We expect 25 Gigabit Ethernet to be the new 10, 50 to be the new 40, and 100 Gigabit Ethernet to do the heavy-lifting for data intensive markets."
4:12 pm F5 Networks beats by $0.07, reports revs in-line; guides Q4 EPS just above consensus, revs in-line (FFIV) :

Reports Q3 (Jun) earnings of $1.67 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $1.60; revenues rose 9.8% year/year to $483.6 mln vs the $481.17 mln consensus. Co issues guidance for Q4, sees EPS of $1.72-1.75, excluding non-recurring items, vs. $1.71 Capital IQ Consensus; sees Q4 revs of $500-510 mln vs. $504.28 mln Capital IQ Consensus Estimate. "Within the past three years, quarterly revenue from the sale of software modules and virtual editions has more than doubled, accounting for more than a third of product revenue in Q3. As more of our customers deploy hybrid solutions and adoption of our software modules increases, we believe this trend will continue, augmented by a steady ramp in sales of our cloud-based Silverline subscription offerings. "From a vertical market perspective, Enterprise and US Federal were significant contributors to the quarter's revenue gains. Within our geographical regions, the US, the UK and northern Europe all delivered solid year-over-year growth.

4:10 pm SanDisk beats by $0.32, beats on revs (shares halted, will resume at 16:25 ET) (SNDK) : Reports Q2 (Jun) earnings of $0.66 per share, $0.32 better than the Capital IQ Consensus Estimate of $0.34; revenues fell 24.3% year/year to $1.24 bln vs the $1.2 bln consensus.

Co will guide on the call
4:09 pm Ultra Clean Holdings beats by $0.05, beats on revs; guides Q3 EPS above consensus, revs above consensus (UCTT) : Reports Q2 (Jun) earnings of $0.10 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.05; revenues fell 11.5% year/year to $117.5 mln vs the $114.34 mln consensus.

Co issues upside guidance for Q3, sees EPS of $0.09-0.12 vs. $0.05 Capital IQ Consensus Estimate, Excluding intangible asset amortization costs of $1.4 million; sees Q3 revs of $117.0-122.0 mln vs. $115.56 mln Capital IQ Consensus Estimate.

4:08 pm Qualcomm beats by $0.04, reports revs in-line; guides Q4 EPS below consensus, revs below consensus; Announces Strategic Realignment Plan (QCOM) : Reports Q3 (Jun) earnings of $0.99 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.95; revenues fell 14.3% year/year to $5.83 bln vs the $5.85 bln consensus. Co issues downside guidance for Q4, sees EPS of $0.75-0.95 vs. $1.08 Capital IQ Consensus Estimate; sees Q4 revs of $4.7-5.7 bln vs. $6.13 bln Capital IQ Consensus Estimate.

Please see 16:02 comment for information on the Strategic Realignment Plan.

4:02 pm Qualcomm announces strategic realignment plan (QCOM) : Co has initiated a Strategic Realignment Plan designed to improve execution, enhance financial performance and drive profitable growth

QCOM also announced that it has entered into an agreement with JANA Partners pursuant to which Mark McLaughlin and Tony Vinciquerra have been added to the Board of Directors and a third director to be selected by the Company and consented to by JANA will be added promptly. The core elements of the new plan include:

Aggressively right-sizing the cost structure by eliminating approx $1.4 bln in spending, including an approx $300 mln reduction in annual share-based compensation grants; Company expects to achieve this run-rate by the end of fiscal year 2016Reviewing alternatives to the Company's corporate and financial structure Reaffirming the Company's plan to return significant capital to stockholders Adding new Directors with complementary skills while reducing the average tenure of the Board of Directors Further aligning executive compensation with performance, including returns on investment Disciplined investment in areas that further Qualcomm's leadership positions, build upon the Company's core technologies and capabilities and offer attractive growth opportunities and returns
4:03 pm Cirrus Logic beats by $0.06, beats on revs; guides Q2 revs above consensus (CRUS) : Reports Q1 (Jun) earnings of $0.54 per share, $0.06 better than the Capital IQ Consensus Estimate of $0.48; revenues rose 85.2% year/year to $282.6 mln vs the $270.66 mln consensus.

Co issues upside guidance for Q2, sees Q2 revs of 290-310 mln vs. $274.26 mln Capital IQ Consensus Estimate. Q1 GAAP and non-GAAP gross margin of ~47%. Co sees Q2 gross margin between 45-47%.

4:10 pm : The stock market ended the midweek session on a lower note with the Nasdaq Composite pacing today's retreat. The tech-heavy index lost 0.7% while the Dow (-0.4%) and S&P 500 (-0.2%) settled closer to their flat lines.

Equities faced selling pressure at the open as investors reacted to earnings from a few large companies. Most notably, Apple (AAPL 125.14, -5.61) surrendered 4.3% after below-consensus iPhone sales growth and cautious guidance for Q4 overshadowed a bottom-line beat. The largest stock by market cap kept the technology sector (-1.7%) pressured throughout the day while four other sectors registered losses.

To be fair, the tech sector was also weighed down by a 3.7% decline in Microsoft (MSFT 45.51, -1.77) after the company reported a loss, which resulted from $8.4 billion in charges related to the phone unit acquisition from Nokia. Furthermore, high-beta chipmakers also struggled with the PHLX Semiconductor Index falling 2.5% amid losses in all 30 components. Linear Technology (LLTC 40.40, -2.72) had the worst showing, ending lower by 6.3% in reaction to disappointing results and below-consensus guidance.

Elsewhere among cyclical sectors, industrials (-0.5%) retreated with Dow component Caterpillar (CAT 79.76, -2.46) dropping 3.0% ahead of its earnings report. Meanwhile, another Dow member-Boeing (BA 146.47, +1.47)-advanced 1.0% after beating estimates and guiding in-line with analyst expectations.

Similar to industrials, the energy sector (-0.7%) ended among the laggards with Baker Hughes (BHI 58.25, -2.39) tumbling 3.9% amid reports Halliburton's (HAL 41.54, -0.32) acquisition of BHI is facing an antitrust probe. On a related note, crude oil settled lower by 3.2% at $49.25/bbl.

On the upside, the financial sector (+0.7%) rallied into the afternoon while the consumer discretionary space (+0.4%) was boosted by a 7.7% surge in Chipotle (CMG 725.82, +52.75) after the company reported a one-cent beat on below-consensus revenue. Homebuilders also contributed to the strength in the discretionary space, evidenced by a 2.1% increase in iShares Dow Jones US Home Construction ETF (ITB 27.99, +0.58) following a better than expected Existing Home Sales report for June.

Also of note, most countercyclical sectors outperformed with health care (+0.2%), consumer staples (+0.2%), and utilities (+0.5%) ending ahead of the broader market while the telecom services sector (-1.0%) lagged.

Treasuries advanced during morning action, but an afternoon retreat narrowed the gain in the 10-yr note to just two ticks with its yield slipping one basis point to 2.32%.

Today's participation was ahead of recent averages as more than 820 million shares changed hands at the NYSE floor.

Economic data included FHFA Housing Price Index, Existing Home Sales, and the MBA Mortgage Index:


The FHFA Housing Price Index rose 0.4% in May after increasing 0.4% in April
Existing Home Sales for June increased 3.2% from May to an annualized rate of 5.49 million units while the Briefing.com consensus expected a reading of 5.40 million
The weekly MBA Mortgage Index ticked up 0.1% to follow last week's 1.9% decline

Tomorrow, weekly Initial Claims will be released at 8:30 ET (Briefing.com consensus 279K) while June Leading Indicators (consensus 0.2%) will be reported at 10:00 ET.

Nasdaq Composite +9.2% YTD
Russell 2000 +4.4% YTD
S&P 500 +2.7% YTD
Dow Jones Industrial Average +0.2% YTD

DJ30 -68.25 NASDAQ -36.35 SP500 -5.06 NASDAQ Adv/Vol/Dec 1352/1.87 bln/1487 NYSE Adv/Vol/Dec 1297/821.1 mln/1796 3:40 pm :

WTI crude oil futures sold off today, which followed the weekly API storage data late yesterday and this morning's EIA storage data
Sept crude finished floor trading -3.2% at $49.25/barrel, but extended losses a bit in electronic trading
The dollar index was trading higher today, and despite some pullback in afternoon activity, the strength weighed on commodities today
Sept copper futures were weak again and closed up today's session -5% at $2.43/lb
In the precious metals space, Aug gold lost 1.1% to $1091.40/oz, while Sept silver fell -0.3% at $14.73/oz

11:42 am Stocks/ETFs that traded to new 52 week highs/lows this session- New lows (86) outpacing new highs (25) (:SCANX) : Stocks that traded to 52 week highs: ABT, ACN, BK, C, CELG, CMCSA, CMCSK, COF, DRI, DXCM, ESRX, EW, GOOG, GOOGL, JBLU, MDLZ, MNST, NKE, PANW, RAI, SBUX, TMO, UA, WBA, XON

Stocks that traded to 52 week lows: AA, ABX, AMAT, APA, AR, ATI, AU, AUO, AUY, AXLL, BWP, CAR, CHK, CIG, CNQ, COH, COP, CPN, CVE, DAR, DNR, DO, DVN, ECA, EGO, EMC, EMR, EOG, EPD, ESV, ETP, FCX, FLR, FLS, FTI, FTR, GG, GGB, GOL, HES, HUN, INTC, JOY, KATE, KGC, KLAC, LINE, MRO, MUR, NBL, NE, NRG, NSC, NUE, NYLD, OAS, OGE, OI, OII, OXY, PAA, POT, PPC, PXD, QEP, RIG, RXN, S, SE, SFM, SID, SLW, SNH, SNI, SU, SVU, TAHO, TCK, TSU, TYC, URI, VALE.P, VIAB, VIV, WLL, X

ETFs that traded to 52 week highs: IHI, XLP

ETFs that traded to 52 week lows: AMJ, DBC, DIG, DJP, EPU, EWC, EWY, FXC, GDX, GLD, IAU, IGE, IXC, IYE, KOL, OIH, PPLT, SIL, SIVR, SLV, SLX, THD, URA, XES, XLE, XME, XOP

Note: To reduce the list of stocks making 52 week highs/lows to a manageable size we have filtered out stocks below $2 bln in market cap and below 1 mln average volume. Without this filter 105 stocks made 52 week highs and 433 stocks made 52 week lows.

8:04 am Arch Coal announces the early tender deadline in private debt exchange offer has been extended to August 4, 2015 from July 21 (ACI) : As of 5:00 p.m. New York City time on July 21, 2015, approximately $487 million aggregate principal amount of Old 7.000% 2019 Notes, $169 million aggregate principal amount of Old 9.875% 2019 Notes and $398 million aggregate principal amount of Old 7.250% 2021 Notes have been validly tendered pursuant to the Exchange Offer.

8:01 am BlackBerry to acquire secure, networked crisis communications firm, AtHoc; terms not disclosed (BBRY) : The AtHoc platform will integrate with BlackBerry's enterprise portfolio and trusted global network to offer customers new capabilities for safety, security and mission-critical business communication. The transaction is expected to be completed in BlackBerry's 2016 fiscal third quarter and is subject to customary closing conditions.

[ReturntoSender]

From Briefing.com: You were either a buyer, a seller, or sat on your hands this morning as the markets opened following the worst three day span in more than four years. Yesterday's selloff likely claimed many trading stops, but today was a different story (at least until the final hour of trade). For its part, the Dow Jones Industrial Average (15666.44, -204.91 -1.29%) led the markets lower today - following initial strength, the index could not hold on and added to weekly losses, ending today about 4.8% versus the Monday open. Fueled at the open by the overnight session's announcement by the People's Bank of China cut its main lending rate 25 basis points to 4.6% and lowered its reserve requirement ratio 50 basis points to 18.0%, the markets showed initial strength.

As a result, the Shanghai Composite finished the session -7.6%, resisting the global rebound. Other US indices finished - S&P 500 (1867.62, -25.59 -1.35%) and Nasdaq Composite (4506.49, -19.76 -0.44%). A late rush of selling at the close brought all three major indices below flat lines, despite spending the majority of the day more than +1.0%.

Strength today came notably from technology. Names like Apple (AAPL 103.74, +0.62 +0.60%), Adobe (ADBE 74.57, +0.30 +0.40%) and Facebook (FB 83.00, +0.91 +1.11%) finished the day with nice gains. Notable technology sector outperformers were Social Media, (SOCL 16.63, +0.30 +1.84%), Solar (TAN 27.64, +0.62 +2.29%) and Internet (FDN 64.01, +0.19 +0.30%) all finished notably higher on the session, resisting the late session selling surge. Other sectors finished XLU -3.09%, XLF -1.68%, XLB -1.57%, XLE -1.45%, IYZ -1.27%, XLI -1.19%, XLV -1.01%, XLP -0.76%, XLY -0.43%.

The S&P 500 Information Technology sector ended the session in the green, opposite the broader market. Notable sector component Qorvo (QRVO) finished the day leading the pack, as the stock operated in a trading range today between $52.97-49.78. In spite of an overall positive trading day among the three major indices, it seems the rally held up its hands and just gave up in the last hour, dictating late trade in technology among other sectors.

Notable news items among sector components:

Apple (AAPL) was mentioned favorably in a Barron's report out midday.
Intel (INTC 25.87, -0.38 -1.45%) and BlueData announced a broad strategic technology and business collaboration, as well as an additional equity investment in BlueData from Intel Capital. The collaboration will bring together BlueData's infrastructure software for big data with data center architecture based on Intel Xeon processor technology. Intel Capital's investment, its third in BlueData since 2012, is part of a $20 million funding round led by the chip maker's strategic investment arm.

Elsewhere in the technology space:

Inovalon (INOV 20.98, +0.37 +1.80%) announced a deal to acquire Avalere Health for $140 million. The purchase price is comprised of $135 million of cash and $5 million of restricted stock. Avalere reported $47.1 million of revenue in the calendar year ended December 31, 2014 and, given the expected timing of closing, the transaction is estimated to be mildly accretive in 2015, adding a penny or less of Non-GAAP diluted net income per share.
Atmel (ATML 7.41, +0.82 +12.44%) announced CEO Steven Laub extended his retirement date to facilitate the completion of the ongoing strategic evaluation process.
Nidec (NJ 18.35, +0.46 +2.57%) announced it acquired a 100% ownership interest in Arisa, S.A., a press machine manufacturer based in Spain, from its founding families on August 24, 2015.
Twitter (TWTR 24.48, -0.78 -3.11%) was notified by the SEC that it wants the company to describe alternative metrics to explain trends in user agreement. From the letter, "Please describe the alternative metrics you anticipate presenting in future filings to explain trends in user engagement and advertising services revenue. Also, please describe your reasons for choosing such metric."
China Telecom (CHA 54.87, +1.69 +3.18%) confirmed that Wang Xiaochu has resigned from his position as the Executive Director, Chairman and CEO.
Taiwan Semi (TSM 18.76 flat) announced TSMC Solar, its 100% owned subsidiary, will cease manufacturing operations at the end of August 2015 as TSMC believes that its solar business is no longer economically sustainable.
Authentidate Holding (ADAT 0.29, +0.16 +137.70%) and Peachstate Health Management, LLC d/b/a AEON Clinical Laboratories announced the companies have entered into a non-binding letter of intent for the acquisition of all of the outstanding membership interests of AEON in exchange for shares of a newly created class of Series E Preferred Stock of Authentidate. The Letter of Intent contemplates the AEON members will be issued such number of Series E Shares as shall be convertible into 19.9% of the outstanding shares of the Company's Common Stock on the date of the closing of the merger transaction, and an additional 5% of the outstanding shares of the Company's Common Stock upon approval of the merger transaction by the shareholders of the Company.

China Information Tech (CNIT 1.38, +0.10 +7.81%) announced certain management changes - appointed Zhiqiang Zhao as President, Junping Sun as Chief Investment Officer, and Zhixiong Huang as Chief Operating Officer.
Hortonworks (HDP 23.18, -0.87 -3.62%) announced it has signed a definitive agreement to acquire Onyara, Inc., the creator of and key contributor to Apache NiFi, a top-level open source project. Financial terms of the deal were not disclosed.
Plexus (PLXS 35.55, -0.40 -1.11%) announced a $30 million share repurchase program during FY16.

GSE Systems (GVP 1.34 flat) announced Christopher Sorrells has been appointed Interim Chief Operating Officer, effective August 25, 2015. Earnings among notable tech names:

Best Buy (BBY 32.96, +3.69 +12.61%) reported Q2 (Jul) earnings of $0.49 per share on revenues which rose 0.8% year/year to $8.53 billion. Comps were +3.8% (+2.7% ex-100 bps impact from installment billing); adj. operating margin was +50 bps to 3.4%.

Leju Holdings (LEJU 5.20, +0.21 +4.21%) reported Q2 (Jun) earnings of $0.12 per share on revenues which rose 34.4% year/year to $157.8 million.
ReneSola (SOL 1.16, -0.01 -0.85%) reported Q2 (Jun) loss of $0.02 per share on revenues which fell 30.7% year/year to $268.4 million. SOL issued upside guidance for Q3, sees Q3 revs of $330-340 million and gross margin to be in the range of 15% to 16%. ReneSola currently has a total of ~77.4MW in existing projects, including 51.1MW in the United Kingdom, 1.2MW in Japan, 9.7MW in Bulgaria and 15.4MW in Romania. The Company also has a late stage project pipeline with over 200MW in development across the UK, U.S. and Japan.
Companies reporting tonight: JKHY, NMBL, SLH
Analyst actions:

AAPL was upgraded to Outperform from Market Perform at Wells Fargo, ADBE was upgraded to Outperform from Neutral at Robert W. Baird, AVGO was upgraded to Buy from Outperform at Credit Agricole, WDAY was upgraded to Buy from Neutral at DA Davidson,
PAY was upgraded to Overweight from Neutral at Piper Jaffray, VNTV was upgraded to Neutral from Negative at Susquehanna, ROVI was upgraded to Overweight from Neutral at JP Morgan, TER was upgraded at Craig Hallum and Credit Suisse,
CHT was upgraded to Buy from Neutral at Citigroup

4:19 pm Transocean to propose cancellation of third and fourth installments of dividend; Co was previously paying a $0.15/quarter dividend (RIG) :

Co announced today that the company will convene an Extraordinary General Meeting of Shareholders. The EGM, which will be open to shareholders of record as of October 12, 2015, will be held at 5:00 p.m., CEST, on October 29, 2015, in Cham, Switzerland. The Board of Directors will propose the following items for approval at the EGM:

The election of Jeremy D. Thigpen, the company's President and Chief Executive Officer, as a member of the Board for a term extending until completion of the 2016 Annual General Meeting. The cancellation of the third and fourth installments of the dividend approved at the company's annual general meeting held on May 15, 2015. A reduction of the par value of each share of the company to CHF 0.10 from currently CHF 15. A portion of the aggregate par value reduction amount is proposed to be used to reduce the company's balance sheet loss as recorded on the company's standalone statutory balance sheet, and the remainder is proposed to be allocated to the company's statutory capital reserves. In light of the deterioration of the offshore drilling market and concerns regarding the timing of the market's recovery, the company is evaluating its investments in affiliates as recorded on its Swiss standalone statutory balance sheet for impairment on an interim basis. Based on analysis carried out to date, the company expects the carrying amount of these investments to be further impaired. As a result, the company may recognize an aggregate loss associated with these non-cash impairments, expected to be in excess of CHF 2 billion, on its Swiss interim standalone statutory balance sheet as of July 31, 2015. SThe cancellation of all shares of the company that have been repurchased to date under the company's share repurchase program approved in 2009, as required under Swiss law.
4:10 pm : The stock market ended the Tuesday session on a lower note despite starting the day with a sharp spike. The S&P 500 lost 1.4% after being up 2.9% while the Nasdaq Composite surrendered 0.4% after being up 3.6%.

The market began the day with a broad-based spike after most global stock markets rebounded during overnight action. Interestingly, the rebound did not include China's Shanghai Composite as the index lost 7.6%. That being said, the focus will be on the index tonight considering the People's Bank of China cut its main lending rate 25 basis points to 4.6% and lowered its reserve requirement ratio 50 basis points to 18.0% this morning.

The PBoC rate-cut announcement took place well after Asian markets ended for the day, and the news was met with a spike in S&P futures. Once the trading day began, the S&P 500 rallied through the first two hours of action, but returned into the middle of its trading range during the afternoon, and fell to lows during the final 60 minutes of the session.

In some ways, the selling during the final hour resembled action observed on Monday morning as liquidity dried up notably and bid-ask spreads widened past typical levels. The S&P 500 surrendered nearly 40 points during the final hour, pulling all sectors into the red. Interestingly, the utilities sector (-3.2%) ended at the bottom of the leaderboard as the rate-sensitive group suffered from higher yields intraday and extended its losses during afternoon selling.

More notably, heavily-weighted sectors like financials (-1.7%), industrials (-1.6%), and health care (-1.4%) ended in the red while consumer discretionary (-0.4%) and technology (-1.2%) surrendered their gains after being up more than 3.0% apiece.

The late afternoon tumble occurred after the Treasury market closed for the day, but 10-yr note futures rallied after the cash close. The benchmark instrument settled on its low with the yield up 13 basis points at 2.13%, but safe-haven demand drove the yield to 2.09% after the cash close.

Interestingly, the CBOE Volatility Index (VIX 37.08, -3.66) ended on its high, but still finished the day well below yesterday's settlement despite the late swoon.

Once again, corporate news was relegated to the backburner, but investors did receive a couple earnings reports this morning. Best Buy (BBY 32.95, +3.68) soared 12.6% after beating earnings and revenue estimates while Toll Brothers (TOL 35.08, -2.98) lost 7.8% after missing earnings and revenue estimates.

Economic data included Consumer Confidence, New Home Sales, Case-Shiller 20-city Index, and FHFA Housing Price Index:

The Conference Board's Consumer Confidence Index increased to 101.5 in August from an upwardly revised 91.0 (from 90.9) while the Briefing.com consensus expected an increase to 93.1
The August jump in confidence wiped away all of the discomfort from July and returned the index past June levels (99.8) to the highest mark since January 2015
New home sales increased 5.4% in July to 507,000 from a downwardly revised 481,000 (from 482,000) while the Briefing.com consensus expected an increase to 511,000
After starting the year on a tear, new home sales have settled into a range of around 500,000 per month since March
The Case-Shiller 20-city Home Price Index for June rose 5.0% against a 5.1% increase expected by the Briefing.com consensus
This followed the previous month's increase of 4.9%
The FHFA Housing Price Index for June rose 0.2%, which followed a revised increase of 0.5% in May (from 0.4%)

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while July Durable Orders (Briefing.com consensus -0.6%) will be reported at 8:30 ET.

Nasdaq Composite -4.9% YTD
Russell 2000 -8.4% YTD
S&P 500 -9.3% YTD
Dow Jones Industrial Average -12.1% YTD

DJ30 -204.91 NASDAQ -19.76 SP500 -25.60 NASDAQ Adv/Vol/Dec 1537/2.15 bln/1511 NYSE Adv/Vol/Dec 1390/1.23 bln/1750
3:40 pm :

The dollar index continued to trade in positive territory all day, which helped weigh on commodities
Following recent losses, commodities, as measured by the Bloomberg Commodity Index, are at a 16-year low
Oil prices remain a big story
Oil rallied this morning, but have since given back some. Oct crude finished today's pit session +2.8% at $39.32/barrel. In electronic trade, crude is at $39.05/barrel
In other energy, Sept nat gas rose +1.5% to $2.69/MMBtu today.
Precious metals lost out today, while copper futures rallied
Dec gold lost -1.3% today to end at $1138.90/oz, while Sept silver fell -0.5% to $14.65/oz
Sept copper gained +2.2% to $2.31/lb

11:50 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (148) outpacing new highs (10) (:SCANX) : Stocks that traded to 52 week highs: ARL, BEAT, EVBS, FBNK, GAS, MPB, PPO, RCPT, UEPS, YCB

Stocks that traded to 52 week lows: ACC, AFB, AIQ, AQMS, ARC, ARCW, ARMF, BBG, BBGI, BCEI, BDN, BEBE, BKH, BMR, BRG, BSI, BVN, CAAS, CEQP, CHEF, CJES, CKP, CLNT, CMCO, CORR, CRD.A, CRDC, CRZO, CSB, CUZ, CVM, CYTR, DAKT, DCIX, DDC, DHF, DNAI, DRAM, DSW, ECR, EDR, EGO, EGP, FARM, FLAG, FSBK, FSTR, FVE, GBNK, GBSN, GEOS, GFN, GGN, GHM, GLPW, GNRT, GSM, HFBC, HGSH, HRZN, HURC, HZO, IRC, IRT, JW.A, KEM, KTOS, LMBS, LPT, MAB, MARA, MCC, MCF, MDM, MDVX, MIL, MITL, MN, MNR, MNTX, MOV, MTX, MYE, MYOS, NAVI, NHLD, OCIP, ODC, OFG, PCCC, PDFS, PHX, PJC, PKOH, PLM, POM, PRGX, PRIM, PSTI, PTEN, QDEL, QUAD, RAS, RBY, REGI, REXR, RLOG, RMGN, RNWK, SAFT, SIF, SIR, SKBI, SLW, SMCP, SMTP, SSN, STKS, SWN, SYNL, TBBK, TDC, TDW, TESO, TG, TIGR, TLR, TOR, TUTI, UEIC, ULTR, UTI, UTIW, UUUU, VHI, VPG, VRTV, VXDN, VXUP, WEA, WGBS, WHZ, WPC, WPG, WPP, YPRO, ZAIS, ZAZA

ETFs that traded to 52 week highs: none

ETFs that traded to 52 week lows: PALL

4:32 am Atmel CEO agrees to extend his retirement date to facilitate the completion of an ongoing strategic evaluation process (ATML) : The Company states does not intend to make further public announcements regarding the status of the evaluation process until it is completed, and there can be no assurance as to its outcome or timing.

[ReturntoSender]

From Briefing.com: The markets ended the Wednesday session flipping the table on what we have become used to for the better part of the past week and a half - all three major US indices finished the session in the green. Not to be outdone, Technology (XLK 39.60, +1.90) was the major standout sector, ending the session higher by about 5.0%. Weakness in the Shanghai Composite, which fell 1.3% in the overnight session, did not seem to faze US equities as we began Wednesday trade with large percentage gains in all three major US indices. In unusual fashion (as of late), the Dow Jones Industrial Average advanced more than 600 points, closing +619.07 to 16,285.51. The Nasdaq Composite added 191.05 to end Wednesday trade up 4.2% to 4,697.54. And the S&P 500 ended up 72.90 to 1,940.51 -- a 3.9% gain on the day.

Other sectors finished today XLV +4.27%, XLY +3.84%, XLF +3.76%, XLE +3.51%, XLI +3.16%, XLP +3.04%, XLB +2.80%, IYZ +2.60%, XLU +1.83% mostly all outperforming recent weakness. Outside of technology, oil names Cameron (CAM) announced it would be acquired by Schlumberger (SLB) for about $66.36 per share in cash and stock.

A bit into the session, a small spike of positive momentum came in reaction to the comments from FOMC Vice Chair William Dudley, who in a press conference said that a case for a rate hike in September seems less compelling than it was a few weeks ago.

For its part, the S&P 500 Information Technology sector posted hefty gains on the session, as technology as a whole performed particularly well among other sectors. Notable tech name Google (GOOG) posted the most extreme gains in the sector, ending Wednesday trade higher by %. Google was upgraded/added to Goldman's Conviction Buy List in the overnight session, as the firm also raised the target on GOOG to $800 from $660.

Notable sectors within technology First Trust DJ Internet ETF (FDN 67.02, +3.01 +4.70%), Philadelphia Semiconductor (SOX 587.82, +28.24 +5.05%), and Cybersecurity ETF (HACK 27.14, +0.93 +3.55%) also performed well on the session.
Other notable news items among sector components:
Qualcomm (QCOM) announced its wholly-owned subsidiary, Qualcomm UK Spectrum (QUKS), has agreed to sell the entirety of its UK L-Band spectrum (1452 - 1492 MHz) in two separate transactions. Under a transaction between QUKS and Vodafone UK (VOD), Vodafone agreed to purchase 20 MHz of the spectrum. Under a separate transaction between QUKS and Hutchinson 3G UK Limited (H3G), H3G has agreed to purchase 20 MHz of the spectrum.

EMC's (EMC) Board was rumored to be considering a plan where it would be acquired by VMWare (VMW), according to ReCode.

Intuit (INTU) was the subject of a TechCrunch article detailing the elimination of about 249 jobs at the company.

Elsewhere in the technology sector:

Leidos (LDOS) was awarded a prime contract by the Transportation Security Administration (TSA) to provide deployment of transportation security capabilities for the Office of Security Capabilities (OSC). The Leidos East Region single-award indefinite-delivery/indefinite-quantity firm fixed-price contract has a five-year period of performance with a combined maximum ceiling of $450 million established as the cumulative total of all orders issued under all three geographic region contract awards.

Integrated Silicon (ISSI) and Uphill Investment extend the termination date of their merger until December 12, 2015.

Coherent (COHR) authorized a $25 million repurchase of its common stock through August 31, 2016.

Cellcom Israel (CEL) announced the entrance into a loan agreement with an Israeli bank to provide the company a deferred loan in a principal amount of NIS 140 million, unlinked, which will be provided to the company in December 2016, and will bear an annual fixed interest of 4.9%.

MiX Telematics (MIXT) announced its Board of Directors has concluded its previously announced review of the company's strategic alternatives. This extensive review, conducted with guidance from external advisors, included the optimization of capital structures and an evaluation of various ownership options, with the latter resulting in significant interest from prospective buyers.

Digital Ally (DGLY) announced a $2.5 million stock buyback program. Also, announced it has received a follow-on order for its DVM-800 in-car video systems, FirstVu HD body-worn video cameras and VuLink automatic activation systems from the Ferguson, Missouri Police Department.

Drone Aviation (DRNE) announced it has been awarded an order from the United States EPA for customized winch systems and related equipment for use at the Agency's National Risk Management Research Laboratory as part of its on-going emission sampling program utilizing tethered aerostats. The company expects to complete winch manufacturing and deliver the units to the EPA by mid-October 2015.

Technology names in reaction to earnings:

Solera (SLH) reported Q4 (Jun) earnings of $0.81 per share on revenues which rose 10.9% year/year to $297.07 million.

Nimble Storage (NMBL) reported Q2 (Jul) loss of $0.10 per share on revenues which rose 48.9% year/year to $80.1 million. Non-GAAP Gross Margin was 67.8%. The company issued mixed guidance for Q3, sees EPS of ($0.09)-($0.08) on revenues of $86-88 million.

Analyst actions:

GOOG was upgraded/added to Conviction Buy List from Neutral at Goldman, ARMH was upgraded to Mkt Perform from Underperform at Bernstein, NMBL was upgraded to Buy from Hold at Wunderlich, IBM was upgraded to Buy from Hold at Argus, NOK was upgraded to Buy from Hold at Danske Bank, ORAN was upgraded to Buy from Neutral at Citigroup, LXK and NTES were upgraded to Buy from Hold at Standpoint Research; GRUB was downgraded to Equal Weight from Overweight at Barclays, HIVE was downgraded to Underperform from Buy at BofA/Merrill

4:10 pm : The stock market rebounded from six days of consecutive losses on Wednesday with the S&P 500 spiking 3.9%. The benchmark index narrowed its weekly loss to 1.5% while the Nasdaq gained 4.2%, trimming this week's decline to 0.2%.

Equity indices began the day on a higher note after index futures rallied during overnight action. That advance occurred even as China's Shanghai Composite lost 1.3%, seeing little response to yesterday's rate cut from the People's Bank of China.

Once the trading day begun, the key indices spent the first three hours of action in a slow slide from their highs. The market saw little immediate reaction to comments from FOMC vice Chair William Dudley, who said that a case for a rate hike in September seems less compelling than it was a few weeks ago.

Despite the comments from Mr. Dudley, the market continued dripping from highs, but the S&P 500 was able to reverse course upon hitting the 1,880 level. Although there was nothing special about that mark, it is worth noting that the turn occurred as the dollar began rallying against the euro and yen, suggesting the return of carry flows. The greenback continued climbing alongside equities into the late afternoon, pushing the Dollar Index higher by 0.7%.

On a related note, Treasuries retreated during morning action and saw a second slide in the afternoon that sent the benchmark 10-yr yield higher by 12 basis points to 2.19%.

The considerable spike in yields kept the utilities sector (+1.7%) behind the broader market while the remaining nine groups gained between 2.8% and 5.3%.

The technology sector (+5.3%) finished in the lead after showing relative strength throughout the trading day. Large cap names like Apple (AAPL 109.62, +5.89), Facebook (FB 87.19, +4.19), and Google (GOOGL 659.74, +47.27) spiked between 5.1% and 7.7% while high-beta chipmakers also outperformed. The PHLX Semiconductor Index jumped 5.1% with all 30 components posting gains. Thanks to today's surge, the SOX index is now up 1.6% for the week.

Elsewhere, the health care sector (+4.3%) finished in second place, thanks in part to the relative strength in biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 341.75, +16.49) spiked 5.1%, turning this week's loss into a 0.6% week-to-date gain.

Also of note, the energy sector (+3.5%) settled not far behind the broader market even though crude oil surrendered 1.6%, falling to $38.68/bbl. There was some M&A activity in the sector that may have been lost in the shuffle as Cameron (CAM 59.93, +17.46) surged 41.1% after agreeing to be acquired by Schlumberger (SLB 70.09, -2.43) for $14.80 billion in cash and stock, which translates to roughly $66.36/share.

Today's participation was well above average with more than 1.25 billion shares changing hands at the NYSE floor.

Economic data was limited to Durable Orders and MBA Mortgage Index:

Durable goods orders increased 2.0% in July after increasing an upwardly revised 4.1% (from 3.4%) in June while the Briefing.com consensus expected a decline of 0.6%
A big reason for the upside surprise came from the automotive sector as orders for motor vehicles and parts products rose 4.0% in July after increasing 0.8% in June.
Aircraft orders, which were expected to push overall durable goods orders into negative territory, declined a relatively modest 7.8%. That drop was easily offset by the aforementioned increase in motor vehicle orders
Excluding transportation, durable goods orders increased 0.6% in July after increasing an upwardly revised 1.0% (from 0.6%) in June while the consensus expected an increase of 0.4%
The weekly MBA Mortgage Index ticked up 0.2% to follow last week's 3.6% increase

Tomorrow, weekly Initial Claims (Briefing.com consensus 275K) and the second estimate of Q2 GDP (consensus 3.1%) will be released at 8:30 ET while the Pending Home Sales report for July (expected 1.0%) will cross the wires at 10:00 ET.

Nasdaq Composite -0.8% YTD
S&P 500 -5.8% YTD
Russell 2000 -6.0% YTD
Dow Jones Industrial Average -8.6% YTD

DJ30 +619.07 NASDAQ +191.05 SP500 +72.90 NASDAQ Adv/Vol/Dec 2341/2.15 bln/722 NYSE Adv/Vol/Dec 2490/1.28 bln/650

3:35 pm :

The dollar index continued to climb higher today, which helped weigh on commodities, which are currently sitting at a 16-year low, according to the Bloomberg Commodity Index.
Metals all ended the day lower, led by silver, which ended floor trading -4.1% at $14.05/oz (Sept contract).
Dec gold lost -1.2% to $1124.470/oz, while Dec copper fell --0.6% to $2.25/lb.
WTI crude sold off into the close of pit trading today, ending the session -1.6% at $38.68/barrel.
In other energy, Sept natural gas lost flat at $2.69/MMBtu.

11:47 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (293) outpacing new highs (8) (:SCANX) : Stocks that traded to 52 week highs: ARIS, ARL, EXPR, FBNK, LALT, MPB, NEOS, YCB

Stocks that traded to 52 week lows: AAMC, ACAT, ACH, AEZS, AGM, AHGP, AIQ, ANDE, ANY, APA, AR, AREX, ARNA, ARTW, ASA, ATU, AUY, AVAL, AVL, AWX, BCEI, BDC, BDN, BEBE, BGMD, BHE, BKH, BLT, BOOM, BOXC, BRG, BUI, BVN, BVXV, CALA, CAS, CBK, CBMX, CCG, CCUR, CDOR, CENX, CETC, CGNT, CID, CIG, CIG.C, CLCD, CLSN, CNA, CNP, COG, CORR, COSI, CPA, CPGX, CPN, CRC, CRDT, CRZO, CSB, CSTE, CSU, CUB, CUZ, DAKT, DANG, DAR, DCIX, DDC, DEL, DFT, DNN, DRAM, DSCI, DSWL, DXLG, DXPE, EBR, ECR, EGLE, EGN, EGO, EPE, EQGP, ERA, ETR, EV, EVA, EVDY, EVH, EXH, FBZ, FCX, FE, FENG, FLKS, FMC, FNWB, FRED, FSM, FTHI, GBSN, GDP, GEF, GEF.B, GEOS, GGB, GGN, GLPW, GLRE, GLRI, GLU, GMLP, GNRT, GNT, GOGL, GOV, GPRK, GPT, GSM, GZT, HBM, HCOM, HES, HGR, HMY, HSC, HZO, ICB, ICL, IDSA, IMO, ININ, IRBT, IRC, IRET, IRT, JEC, JPEP, JRJC, KAMN, KELYA, KMF, KODK, KRO, KSS, KTOS, KW, LALT, LF, LILAK, LINE, LMOS, LNCO, MDM, MDU, MEG, MIL, MLHR, MNKD, MNTX, MRLN, MTSC, MTZ, MYE, MYOS, NAD, NAO, NAVI, NCS, NEFF, NEM, NGD, NMI, NNVC, NOR, NRCIA, NRG, NSAM, NVG, NYV, OAS, OCIP, OFG, OGE, OHI, OLN, ORIG, PAAS, PACD, PAI, PBI, PCCC, PCTI, PDM, PEIX, PHX, PIP, PJC, PKOH, PLG, PLTM, POL, PQ, PRGN, PRGX, PRIM, PSAU, PSG, PTEN, PXD, QEP, QRHC, QUAD, RATE, RBY, RCAP, REGI, REX, REXR, RGLD, RIG, RL, RMCF, RNET, RNWK, RYN, SBSI, SDLP, SGM, SGMO, SGY, SID, SKBI, SLB, SLRC, SLW, SNP, SPP, SRC, SRE, SRF, STAG, STR, STV, SUNE, SWN, TBBK, TERP, TESO, TG, TLR, TORM, TOT, TRGP, TUP, TUTI, TWI, TWIN, TYPE, UBP, UEC, UEIC, UIHC, ULTR, UPS, UTG, UTI, UTIW, UUUU, VALE.P, VCIT, VGGL, VPG, VRTS, VRTV, VSEC, VSTM, VTL, WEA, WGBS, WIA, WIW, WLFC, WPP, WPX, WRI, WY, XGTI, YPF, ZAIS, ZFC

ETFs that traded to 52 week highs: none

ETFs that traded to 52 week lows: DBC, DJP, FXA, GDX, JJA, PALL, SIL, SIVR, SLV, UGA, XME, XOP

8:30 am American Superconductor announces two new D-VAR STATCOM orders worth ~$6 mln (AMSC) : The systems are expected to be delivered by the end of this fiscal year.

[ReturntoSender]

From Briefing.com: At the close of trading, the Nasdaq Composite led all major indices with gains of 128.01 points +2.73% to 4811.93. The S&P 500 ended the session up 48.19 points +2.51% to 1969.41. The Dow Jones Industrial Average posted the tamest gains post-the long weekend as the index ended Tuesday trade up 390.30 points +2.42% to 16492.68. The markets ended at session highs as Tuesday trade began with notable buying. The markets hovered at or around +1.5% the entire session and never looked back.

The long weekend brought buying at the open as the overnight session again brought volatility in China, with the Shanghai Composite rising 2.9% at the close. Trading in China out shadowed mediocre data, as a trade balance of $60.24 billion was higher than the $48.20 billion that was expected and yielded a 5.5% year-over-year decline in exports and a 13.8% slide in imports.

The overnight session strength in China lead into a strong European close, where the FTSE, DAX, CAC, IBEX, PSI, MIB, and Greece ASE all closed up between 0.6% and 1.9% respectively. The strength in Europe aided US markets from the bell.

At the close, all ten sectors traded in the green as XLK +2.80%, XLV +2.80%, XLI +2.76%, and XLF +2.56% led other areas. Technology was no slouch today as the sector was notable strength from S&P 500 Information Technology sector (673.11, +18.53 +2.83%) components ADI +7.06%, XLNX +6.71%, AVGO +6.61%, SNDK +5.70%, CRM +5.41%, SWKS +5.23%, XRX +5.15%, LLTC +5.04%. As is evident from the aforementioned list, semiconductors were strong today, as Philadelphia Semiconductor (SOX 624.06, +26.44 +4.42%) component Microchip (MCHP 44.86, +3.86 +9.41%) led the way on the back of a hike in the company's Q2 guidance. Semis were also aided by certain analyst upgrades outlined below.

Also of note today, online retailer Alibaba (BABA 60.91, -3.00 -4.69%) saw selling pressure about midday as the company presented at the Citigroup Technology Conference. Cautious commentary regarding the Q3 marco environment and average sales prices (ASPs). As a result, the stock sank midday to near-two week lows near the $93.55 level.

Perhaps the most important item of note in the technology space this week, though, comes tomorrow afternoon as tech-giant Apple (AAPL 112.31, +3.04 +2.78%) will unveil the next lineup of phones you are inevitably going to buy, along with an update to the tablet line.

Other notable news items among sector components:
Xoom (XOOM 24.83, -0.01 -0.04%) announced shareholder approval for PayPal's (PYPL 34.70, +0.41 +1.20%) acquisition of the company.

Yahoo! (YHOO 30.90, -0.68 -2.15%) disclosed that Chief Accounting Officer Aman Kothari will leave the company effective September 11, 2015. Following his departure, Kenneth Goldman, current CFO will serve as principal accounting officer.

Walt Disney (DIS 104.01, +3.04 +3.01%) announced the addition of Amazon Video (AMZN 517.54, +18.54 +3.72%) and Microsoft (MSFT 43.89, +1.28 +3.00%) Movies and TV to Disney Movies Anywhere. Through the partnership, AMZN and MSFT customers can now connect to DMA and access their digital collection across the DMA ecosystem, including the mobile app, the Xbox 360, Amazon Fire tablet, Fire TV and Fire TV stick devices.

Altera (ALTR 50.20, +1.09 +2.22%) disclosed the waiting period under the HSR Act in connection with the proposed acquisition by Intel (INTC 29.50, +0.98 +3.44%) expired on September 4.

Microchip (MCHP) raised/narrowed certain Q2 guidance. The company expects Q2 non-GAAP EPS of $0.60-0.66 from $0.58-0.66 on revenues of $545-563 million from $532-569 million.

Microsoft (MSFT) confirmed it has acquired Adallom, but that financial terms of the deal were not disclosed.

Accenture (ACN 97.12, +2.67 +2.83%) acquired S3 TV Technology, and financial terms of that deal were also not disclosed.

Mastercard (MA 92.90, +2.37 +2.62%) announced that Samsung (SSNLF 932.51, flat) joined its Digital Enablement Express program as one of its first partners. The company also announced that Google (GOOG 614.66, +13.96 +2.32%) will be among the first digital partners to participate in the program.

Elsewhere in the technology space:

SunEdison (SUNE 12.94, +0.95 +7.92%) installed eight solar systems for India's Delhi Metro Rail Corp. The newly finished Badarpur-Faridabad line is the first metro line in the DMRC network to integrate solar into the design of the buildings. The solar systems are built on the roofs of the stations and depot and are expected to generate 1.9 megawatts of clean, reliable, and cost effective solar power.

Verizon (VZ 45.88, +1.06 +2.37%) announced it will begin technology field trials for 5G technology in 2016.

Commscope (COMM 33.45, +0.80 +2.45%) announced the acquisition of Airvana, but financial terms of the deal were not disclosed.
Wowo (WOWO 8.25, +0.83 +11.19%) announced the company decided to divest its group buying and other non-foodservice-related businesses in an effort to build one of China's largest internet foodservice platforms, improve its profitability and streamline its business operations.

FireEye (FEYE 38.47, +1.99 +5.46%) announced Michael Berry has been appointed SVP anf CFO effective September 21.

Angie's List (ANGI 5.21, +0.17 +3.37%) named Scott Durchslag as CEO effective immediately. Mr. Durchslag joins ANGI having most recently served as President, Global e-Commerce and Marketing at
Best Buy (BBY 37.70, +1.08 +2.95%).

Monotype Imaging (TYPE 21.98, +0.43 +2.00%) appointed Joseph Hill as CFO. Hill succeeds Scott Landers, who will remain as COO and is expected to be appointed CEO on January 1, 2016, when current CEO Doug Shaw retires.

TowerJazz (TSEM 13.95, +1.42 +11.33%) announced it signed an agreement with one of its customers to receive $30 million advance payment which would be used for capacity expansion in its worldwide fabs.

Equinix (EQIX 279.28, +9.40 +3.48%) acquired Bit-isle for about $280 million in cash. The tender offer period is expected to run from September 9, 2015 to October 26, 2015, unless the tender offer period is extended.

InterCloud Systems (ICLD 2.02, +0.04 +2.02%) announced it has been selected by one of the world's largest global systems integrators as a prime vendor to deliver outsourced managed services and support for one of the largest US government agency's next generation voice and data network. The contract term is for five years and is projected to be worth at least $10 million during the base term. The contract award is effective immediately and transition of services is currently underway.

Analyst actions:
SNDK and MCHP were upgraded to Overweight from Neutral at JP Morgan, ACN was upgraded to Buy from Hold at Argus, MTD was upgraded to Buy from Neutral at Citigroup,
HRS was upgraded to Buy from Neutral at Goldman, MU was upgraded to Buy from Neutral at MKM Partners; MRVL was downgraded to Neutral from Overweight at JP Morgan, INFN was downgraded to Sell from Neutral at Goldman

6:02 pm Intersil announces the acquisition of Great Wall Semiconductor, a private technology company developing power metal-oxide semiconductor field-effect transistor technology, for initial consideration of $19 mln (ISIL) : Co announces the acquisition of Great Wall Semiconductor, a private technology company developing state-of-the-art power metal-oxide semiconductor field-effect transistor (:MOSFET) technology for cloud computing, space and consumer applications. Intersil acquired GWS for initial cash consideration of $19 million, with up to $4 million additional cash consideration based on the achievement of post-closing business metrics through 2016. The acquisition is expected to be neutral to 2015 non-GAAP earnings.


4:15 pm Vishay announces that its manufacturing facility in Tianjin is now fully operational and that all its product lines are back in operation (VSH) : At this time, the co says it is not yet possible to quantify the negative impact of this temporary production shutdown on the revenues of the diodes segment in the third quarter of 2015.

4:05 pm Flex to acquire NEXTracker for ~$245 mln; expected to be accretive to Flex's growth, margin, EPS and cash flow generation (FLEX) :

NEXTracker designs and manufactures one of the world's most advanced single-axis photovoltaic trackers that orients PV panels to maximize energy output.

Under the terms of the agreement, the initial cash consideration will be approximately $245 million, net of cash acquired, with an additional $85 million of potential contingent consideration upon achievement of future performance targets. Flex will also assume an equity incentive plan. The acquisition is expected to close early in the December 2015 quarter, subject to customary closing conditions, and contribute between $80 million and $120 million in revenue for the December quarter. Flex intends to fund the acquisition from currently available resources.
4:15 pm : After losing 3.4% last week, the restless stock market began the holiday-shortened week with a broad-based surge. The Nasdaq Composite led the way, spiking 2.7% while the S&P 500 jumped 2.5% with the bulk of the advance taking place at the opening bell.

The buying surge at the start reflected a build-up of strength in the futures market that took root yesterday as U.S. futures labored their way higher alongside European equities. Once the Tuesday session began in Asia, China's Shanghai Composite rallied 2.9% with speculation of continued state support for equities overshadowing mediocre trade data (trade balance $60.24 billion; expected $48.20 billion) that showed a 5.5% year-over- year decline in exports (expected -6.0%) and a 13.8% drop in imports (expected -8.2%; prior -8.1%).

The late-afternoon gains in China stirred up overall risk tolerance, leading to more gains in the U.S. futures market while European equities enjoyed an opening surge. Better than expected economic data highlighted the European session as eurozone Q2 GDP was unexpectedly revised up to 0.4% quarter-over-quarter from 0.3%.

Once the U.S. cash market opened, equity indices spiked, hovering not far below their highs into the afternoon. All ten sectors contributed to the opening move higher, but daylong strength in heavily-weighted groups like technology (+2.8%), industrials (+2.8%), financials (+2.6%), and health care (+2.8%) kept the market from drifting too far away from its early high. The strength in those areas proved supportive in the late afternoon as the market charged to a fresh high during the last two hours of the session.

Despite the big push higher, today's trading volume was a bit below recent averages. That said, a final buying surge brought the NYSE floor total up to 898.5 million shares versus the 20-day average of 984 million.

The top-weighted technology sector was a clear outperformer at the start and the group remained among the leaders into the close. High-beta chipmakers rallied broadly with the PHLX Semiconductor Index surging 4.4% back to levels seen in mid-August. All 30 index components posted solid gains, but the spotlight was on Microchip (MCHP 44.86, +3.86), which spiked 9.4% after the company raised its guidance.

Similar to chipmakers, the high-beta biotechnology group enjoyed all-around strength, sending the iShares Nasdaq Biotechnology ETF (IBB 351.77, +14.67) higher by 4.4%. The biotech ETF climbed above its 200-day moving average (345.04) and helped the Nasdaq stay ahead of the broader market throughout the session.

With more than 2400 NYSE-listed issues ending the day with gains versus 650 decliners, green hues dominated most stock screens. Even the energy sector (+1.5%) was able to end the day well above its flat line even as crude oil futures shed 0.3%, slipping to $45.94/bbl.

Today's advance in equities lured some money out of the Treasury market as the 10-yr note retreated into the afternoon, settling near its low with the benchmark yield up seven basis points at 2.19%.

Investors received just one economic report today, which was met with little fanfare. The Consumer Credit report for July showed an increase of $19.10 billion, which was higher than the Briefing.com consensus estimate of $18.00 billion. The prior month's credit growth was revised to $27.00 billion from $20.70 billion.

Tomorrow's economic data will be limited to the 7:00 ET release of the weekly MBA Mortgage Index and the July Job Openings and Labor Turnover Survey, which will be reported at 10:00 ET.

Nasdaq Composite +1.6% YTD
Russell 2000 -3.5% YTD
S&P 500 -4.4% YTD
Dow Jones Industrial Average -7.5% YTD

DJ30 +390.30 NASDAQ +128.01 SP500 +48.19 NASDAQ Adv/Vol/Dec 2318/1.63 bln/645 NYSE Adv/Vol/Dec 2454/898.5 mln/653

3:30 pm :

Copper held strong gains today, which came after Glencore announced it will suspend two mines.
At the end of today's pit session, Oct copper was +4.7% at $2.43/lb at the end of today's session.
Oil prices came back today. WTI crude oil was down near $44.20/barrel late last night, but rallied some today and ended the day -0.3% at $45.84/barrel.
Oct natural gas futures rallied some today, closing +2.3% at $2.71/MMBtu.
Dec gold ended the day unchanged at $1121.00/oz, while Dec silver closed +1.2% at $14.74/oz.

11:59 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (54) outpacing new lows (41) (:SCANX) : Stocks that traded to 52 week highs: ABCW, ACLS, AEPI, AMRB, AMWD, APPF, BEAT, BGS, BKSC, BLD, BLDR, BRSS, BUSE, BWLD, CBF, CBNJ, CENT, CENTA, CFI, COMM, CWST, CXRX, DSGX, DXLG, DY, ECACU, EDUC, EEI, EFOI, EVBS, FBR, FIZZ, FSFG, GB, GBT, HIHO, HILL, HTM, JNP, KINS, LGIH, LJPC, NAVB, NCIT, NSSC, PAC, PATK, RYAAY, SLP, SMED, TE, ULBI, WTM, WWWW

Stocks that traded to 52 week lows: ACAT, AEZS, BBGI, BKE, BNTC, BNTCW, CAI, CCG, CIG, CIO, CUO, DRWI, DSWL, ENRJ, EPIQ, GBL, GPRO, GRAM, GRSHU, HZN, KERX, KFS, MN, MVC, NL, OIBR, PFG, PRGN, RCAP, RCON, RGLD, SGI, SJT, TAC, TIGR, TITN, TKC, VMEM, VNCE, VRTS, YGE

ETFs that traded to 52 week highs: none

ETFs that traded to 52 week lows: JJA, RJA, TIP

[ReturntoSender]

From Briefing.com: The markets closed the session for the first time since last week with gains across the board. From bell to bell, all three major US indices were green, as the Nasdaq Composite led the way, up 102.84 points (+2.28%) at the close to end Wednesday at 4620.17. The S&P 500 closed up 35.94 points (+1.91%) to 1920.03. The Dow Jones Industrial Average added 235.57 points (+1.47%) to 16284.70 to round out the bunch.

Strength today came from the Semiconductor (SOX 602.73, +22.25 +3.83%) sector assemi name EZchip (EZCH 25.16, +3.17 +14.42%) announced Mellanox (MLNX 37.79, -2.00 -5.03%) would acquire the company for$25.50 per share in cash. Per the deal, MLNX will acquire 100% of EZCH'soutstanding ordinary shares for a cash price of $25.50 per share, implying avalue of $811 million (or about $620 net of cash). As such, MLNX expects thetransaction to be non-GAAP accretive from day one. Semis in general followedstrength in EZCH today, as notable names in positive territory in the SOXincluded SNDK +10.61%, SUNE +7.81%, CAVM +5.93%, NXPI +5.77%, TER +5.14%, AVGO +4.38%, ADI +4.37%, TSM +4.32%, TXN +4.20%, LLTC +4.14%, MU +4.03%.

Also posting notable strength was another semi name, WesternDigital (WDC 79.44, +10.57 +15.35%). The company outperformed the broader market strength on theheels of a $3.775 billion equity investment by Unisplendouer.

Solar (TAN 26.54, +1.10 +4.32%) names also posted notable gains on the sessionas top weighted component Yingli Green Energy (YGE 0.40, +0.08 +24.37%) announced debtrestructuring plans. The company plans to restructure the repayment plan for$157 million of mid-term notes due on Oct. 13, 2015. Other components showing strength today were JKS +13.80%, SUNE +7.81%, DQ +7.32%, TSL +7.30%, JASO +5.98%, SOL +5.24%, CSIQ +4.82%, SPWR +4.27%.

Among the S&P 500 Information Technology sector (663.55, +14.71 +2.27%)components, STX +7.23%, EMC +4.45%, AVGO +4.38%, FSLR +4.22%, TEL +3.98%, LRCX +3.93%, NVDA +3.92%, HPQ +3.89%, KLAC +3.76%, FB +3.53% stood out, outperforming the broader market.

Other notable news items among sector components:
Cisco (CSCO 26.25, +0.61 +2.36%) to acquire privately-held Portcullis Computer Security, and the acquisition is expected to close in the second quarter of FY16.

Prosodie-Capgemini, a France-based service provider and subsidiary of Capgemini specializing in customized call centers, is using Oracle (ORCL 36.21, +0.61 +1.72%) Communications WebRTC Session Controller to help ensure security and communications reliability when it launches product offers on WebRTC technology.

Oracle (ORCL) Health Sciences announced that LSK Global Pharma Services in South Korea, has adopted cloud-based Oracle Health Sciences InForm.

Orange Business Services (ORAN 15.12, +0.09 +0.60%) and Google (GOOG 608.42, +13.45 +2.26%) Cloud Platform, announced the interconnection of Google Cloud Interconnect with Business VPN Galerie, the Orange Business Services secured cloud hub. This collaboration between Google Cloud Platform and Orange Business Services provides enterprises with a network that can deliver business agility and the new ways of working offered by the cloud.

Western Digital (WDC) announced a $3.775 billion equity investment by Unisplendour. Under the terms of said agreement, Unisplendour will purchase newly issued common stock at a price of $92.50 per share. Following the issue, Unis will hold about 15% of WDC's outstanding shares.

Hewlett-Packard (HPQ 25.61, +0.96 +3.89%) announced the unregistered senior notes offering by its Hewlett Packard Enterprise (HPE) subsidiary. The size and terms of said offering were not disclosed.

Elsewhere in the technology space:

EZchip (EZCH) announced Mellanox Tech (MLNX) will acquire EZCH for $25.50 per share in cash. MLNX shall acquire 100% of EZchip's outstanding ordinary shares for a cash purchase price of $25.50/share implying a transaction value of ~$811 million (~$620 million net of cash). The terms of the transaction have been unanimously approved by both the Mellanox and EZchip Boards of Directors. MLNX also expects the deal to be non-GAAP accretive from day one.

Rentrak (RENT 54.07, +10.68 +24.61%) announced it will merge into subsidiary of comScore (SCOR 46.15, +4.68 +11.29%) in a stock-for-stock merger. Pursuant to the terms of the merger, which has been approved by the Boards of Directors of both companies, RENT will merge into a wholly-owned subsidiary of SCOR, and each share of RENT will be converted into the right to receive 1.15 shares of SCOR. Upon completion of the merger, SCOR shareholders are expected to own about 66.5% and RENT shareholders are expected to own about 33.5% of the combined company on a fully diluted basis. SCOR expects the transaction to be mildly dilutive to its Non-GAAP EPS in 2016, and accretive in 2017.

Renren (RENN 3.10, +0.09 +2.99%) appointed Thomas Jintao Ren as CFO, effective Sept. 30, 2015.

Silicom Limited (SILC 27.02, +1.30 +5.05%) announced the acquisition of ADI Engineering for $10 million in cash and additional considerations upon completion of certain milestones. SILC expects the deal to be accretive to EPS on a non-GAAP basis.

Cray (CRAY 19.81, +0.55 +2.86%) was awarded a contract to provide a Cray XC40 supercomputer to the Yukawa Institute for Theoretical Physics (YITP) at Kyoto University in Japan.

Vodafone PLC (VOD 31.74, +0.84 +2.72%) and TPG Telecom Limited announced two commercial agreements under which TPG will provide Dark Fibre and network services to VOD sites and arrangements with TPG to migrate mobile wholesale customer base to VOD networks. Contracts are valued more than $1 billion.

Pericom Semi (PSEM 18.25, +1.35 +7.99%) announced Montage Tech (MONT) has proposed to acquire PSEM for $18.50 per share in cash. The bid represents a competing bid to DIOD's prior $17.00 per share play.

Toshiba (TOSBF 2.48, +0.02 +0.81%) entered into a 400 billion yen commitment line agreement with its main financing banks. The agreement has a two year term until Sept. 29, 2017.

Blue Calypso (BCYP 5.14, -0.05 -0.96%) disclosed the entry into a Securities Purchase Agreement under which it sold 417,500 shares and warrants for gross proceeds of about $1.77 million.

Genpact (G 23.61, +1.11 +4.93%) announced the acquisition of Endeavour Software Technologies Private Limited. Financial terms of the deal were not disclosed, but it is expected to close in 4Q15.

USA Tech (USAT 2.49, -0.28 -10.11%) filed to delay the company's Form 10-K filing.

Mitel Networks (MITL 6.45, -0.18 -2.71%) announced its syndicate of lenders has agreed to amend certain covenants contained in its senior secured credit facility. Agreement increases the leverage ratio covenant, increases the applicable margin on the initial term loans, and resets the 101 soft call provision to run for one year through Sept. 2016.

On Track Innovations (OTIV 0.80, +0.16 +26.47%) filed a patent infringement lawsuit against mobile carriers AT&T (T 32.56, +0.49 +1.53%) and Verizon (VZ 43.49, -0.04 -0.09%).

Samsung (SSNLF 875.00 flat) announced the launch of SE370, a new monitor with wireless charging capabilities for mobile devices.

Shopify (SHOP 35.20, +1.56 +4.64%) announced the launch of a Twitter (TWTR 26.93, +1.34 +5.24%) partnership to allow SHOP merchants to sell products directly on TWTR at no additional costs.

Insight Enterpr (NSIT 25.85, +0.56 +2.21%) announced the award of a $15 million contract to equip 900 Memphis Police Department vehicles with mobile video technology by 2019.

Arris' (ARRS 25.97, +0.18 +0.70%) announced the proposed acquisition of Pace PLC has received unconditional merger clearance from the Portuguese Competition Authority.

Brocade (BRCD 10.38, -0.05 -0.48%) announced the increase of its stock repurchase authorization by $700 million, bringing the total remaining amount to over $1 billion.

Barracuda Networks (CUDA 15.54, -8.01 -34.01%) announced, in addition to reporting quarterly results, the acquisition of privately held data protection provider Intronis. Financial terms of the deal were not disclosed.

Brooks Automation (BRKS 11.71, +0.67 +6.07%) announced the approval of $50 million in stock repurchases. The program will be funded through cash on hand and cash generated from operations.

In reaction to earnings:

Barracuda Networks (CUDA) reported better than expected Q2 EPS of $0.10 on revenues which rose 14.1% year-over-year but still fell in-line with expectations at $78.4 million. The company also made cautious comments regarding the storage market, on top of downside guidance of billings between $203-209 million in the second half (+10-13% year-over-year); about $391-394 million for FY 16 (Prior $421-430 million). Also expects FY16 revenue in the range of $320-323 million (Prior $325-330 million). The company also sees FY16 EPS in the range of $0.34-0.36 (Prior $0.36-0.41).

Paychex (PAYX 47.63, +1.62 +3.52%) reported better than expected Q1 EPS of $0.52 on in-line revenues which rose 8.4% year-over-year to $723 million. The company reaffirmed FY16 net income of +8-9% with total service revenues +7-8%. Payroll service revenues of +4-5%, HRS revenues of +10-13%.

Analyst actions:

ADI was upgraded to Buy from Neutral at Citigroup,
PAY was upgraded to Buy from Hold at Argus;
CUDA was downgraded at Macquarie and Piper Jaffray,
CMCM was downgraded to Neutral from Outperform at Credit Suisse

4:43 pm Interdigital Comm announces expansion of Convida Wireless joint venture with Sony (SNE) to include 5g technologies; agreement includes a patent license from InterDigital (IDCC) :

Co announces it is expanding the research scope of its Convida Wireless joint venture with Sony (SNE) to include 5G technologies. The company also announced that this agreement includes a patent license from InterDigital.

Convida Wireless was launched in 2013 as a joint venture to combine Sony's consumer electronics expertise with InterDigital's pioneering Internet of Things (IoT) expertise to drive new research in IoT communications and other connectivity areas. With this agreement, Convida Wireless' focus will also extend to key 5G technologies. Joining Sony and InterDigital as partners in Convida Wireless is Stephens Capital Partners LLC, the principal investing affiliate of Stephens Inc., a full service investment banking firm headquartered in Little Rock, Arkansas.

4:06 pm Silicon Labs prevails in International Trade Commission final determination (SLAB) :

Co announces that the ITC has found no patent violation by Silicon Labs or its customers in a Final Commission Determination of its Investigation No. 337-TA-910 and has ruled in Silicon Labs' favor.
This ruling affirms the prior finding by the Administrative Law Judge that all patent claims asserted against Silicon Labs' silicon TV tuner products are either invalid or not infringed.

4:02 pm Action Semi reports prelim results from its tender offer for the purchase of up to 84 mln of its outstanding ordinary shares, expecting the offering to be fully subscribed at $2.30/ADS (ACTS) : In accordance with the terms and conditions of the tender offer, and based on the preliminary count by the depositary, Actions Semiconductor expects to accept for purchase 84,000,000 Shares (including Shares represented by ADSs) at a purchase price of $23/60 per Share (or $2.30 per ADS).

4:10 pm : The stock market ended the midweek session on a higher note, but could not avoid its second consecutive monthly decline. The S&P 500 gained 1.9% on Wednesday, but surrendered 2.7% in September. The tech-heavy Nasdaq Composite (+2.3%) outperformed today, but lost 3.3% for the month.

The Wednesday session also marked the end of the third quarter, during which the S&P 500 fell 6.9% versus a 7.4% decline in the Nasdaq. The end of Q3 meant that quarter-end positioning and portfolio rebalancing likely played a part in today's advance.

Equity indices began the trading day with solid gains after index futures rallied alongside markets in Europe. The S&P 500 built on its opening spike, notching a session high just before 10:30 ET; however, that move was followed by a pullback into the middle of today's trading range, which occurred alongside rally in the yen that briefly dropped the dollar/yen pair below the 120.00 level.

The short-lived swoon in the dollar/yen pair was followed by a rebound into the 120.00 area while stocks climbed to new highs.

All ten sectors finished the day with gains, paced by a 2.7% spike in the consumer discretionary space. The cyclical sector held the lead throughout the session while four of the remaining nine groups added 2.0% or more. Notably, the health care sector (+2.1%) spent the day among the leaders with biotechnology underpinning the strength. The iShares Nasdaq Biotechnology ETF (IBB 303.33, +13.85) surged 4.8%, narrowing its September loss to 11.3%. For its part, the health care sector lost 5.8% in September.

Today's relative strength in biotechnology helped the Nasdaq spend the day ahead of the broader market. To be fair, the index received another helping hand from large cap tech names with the likes of Google (GOOGL 637.20, +14.59), Microsoft (MSFT 44.20, +0.76), and Facebook (FB 89.73, +3.06) gaining between 1.8% and 3.5%. Chipmakers also showed considerable strength with the PHLX Semiconductor Index surging 3.8% after EZchip (EZCH 25.16, +3.17) agreed to be acquired by Mellanox (MLNX 37.79, -2.00) for $25.50/share.

In other sector news, Western Digital (WDC 79.40, +10.53) surged 15.3% after Unisplendour made a $3.78 billion investment in WDC by acquiring newly issued shares at $92.50/share.

On the earnings front, Barracuda Networks (CUDA 15.58, -7.97) plunged 33.8% after cautious guidance overshadowed a one-cent beat.

Treasuries slumped overnight, but they began rallying around 7:00 ET with the move continuing into the afternoon. As a result, the 10-yr note reclaimed its overnight loss with the benchmark yield ending flat at 2.05%.

Today's participation was well above average as more than a billion shares changed hands at the NYSE floor.

Economic data reported today included ADP Employment, Chicago PMI, and MBA Mortgage Index:

The ADP National Employment Report revealed that employment in the nonfarm private business sector rose by 200K in September, which was in line with the Briefing.com consensus
The August reading was revised down to 186,000 from 190,000
The weekly MBA Mortgage Index fell 6.7% to follow last week's 13.9% spike
The Chicago PMI dropped to 48.7 in September from 54.4 in August while the Briefing.com Consensus expected a decline to 52.9
The reading highlights this year's volatility in the survey as monthly contractions (five times) have occurred more regularly than expansions (four times) so far in 2015
The Production Index dropped to 43.6 from 59.0 in August, representing the lowest reading since July 2009 and the biggest one-month decline since February

Tomorrow, weekly Initial Claims (Briefing.com consensus 270K) will be released at 8:30 ET while August Construction Spending (consensus 0.5%) and September ISM Index (consensus 50.6) will both be reported at 10:00 ET.

Nasdaq Composite -2.5% YTD
S&P 500 -6.8% YTD
Dow Jones Industrial Average -8.6% YTD
Russell 2000 -8.6% YTD

DJ30 +235.57 NASDAQ +102.84 SP500 +35.93 NASDAQ Adv/Vol/Dec 2221/2.14 bln/787 NYSE Adv/Vol/Dec 2364/1.20 bln/764

3:40 pm :

The dollar index contioned to trade in positive territory today, which helped weigh on commodities.
Copper futures rallied this morning following the recent decision by operators of the Collahuasi mine (Anglo American and Glencore) to significantly cut output.
Copper remained near today's high and closed +4% at $2.34/lb.
Dec gold, however, slipped 1% today to end at $1115.30/oz, while Dec silver fell 0.4% to $14.53/oz.
Moving onto energy, natural gas futures slid lower today and finished the session -2.3% at $2.53/MMBtu. Nov crude oil lost 0.2% to $45.15/barrel.

3:14 pm Atmel and Dialog Semiconductor (DLGNF) amend merger agreement to clarify that the only required vote of Dialog shareholders will be to authorize Board to allot and issue ADS (ATML) :

Cos have amended the merger agreement to clarify that the only required vote of Dialog shareholders will be to authorize the board of directors of Dialog to allot and issue the ordinary shares underlying the American Depositary Shares to be issued in connection with the Atmel acquisition. The vote required to approve this matter is a simple majority of the ordinary shares present and voting at the meeting in person or by proxy. The amendment was based on Dialog's determination that an amendment of its articles of association will not be required to complete the transaction.

The merger agreement amendment deletes the reference to a possible articles amendment and the 75% vote that would have been required for such an amendment.
Dialog expects that its shareholder meeting will be held in the fourth quarter of 2015.

3:10 pm Relm Wireless receives $26.2 million in awards from the U.S. Department of Homeland Security, for portable radios and repeaters (Shares Still Halted) (RWC) :

Co received awards under the U.S. Department of Homeland Security Tactical Communications Contract totaling $26.2 million for its KNG series portable radios, repeaters and accessories. The equipment will be deployed by the Transportation Security Administration (:TSA) at over 400 airports in the continental U.S. as well as locations outside the continental U.S.

The awards are for a base-term of one year that commenced on September 28, 2015, with four one-year options. The first option year was partially exercised immediately. The awards are comprised of delivery orders totaling $15.5 million, which includes the base-term and partial exercise of option year 1, and stipulates delivery of the equipment within 180 days. The awards do not specify or guarantee the exercise of the remaining option years, which total $10.7 million.

11:43 am Slight extension of slip off early highs -- Dow +180, S&P +23, Nasdaq Comp +66 (:TECHX) :

11:38 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (232) outpacing new highs (18) (SCANX) : Stocks that traded to 52 week highs: AAP, BKMU, CBNJ, COKE, CSFL, CUBE, EBSB, EEFT, EFSC, EZCH, FIZZ, INFY, LABL, NVDA, PSEM, RVSB, TRAK, ULBI

Stocks that traded to 52 week lows: ABUS, ABY, AHT, AI, AIRM, AMTG, APP, APPY, ARAY, ARDC, ARTW, ASA, ATRO, ATU, AVNW, AXLL, BBEP, BBLU, BBRG, BCEI, BCLI, BIOD, BNTC, BRS, BSL, BV, BWEN, BWP, BZH, CBA, CBL, CBYL, CC, CEN, CGG, CGI, CHCT, CHMA, CHMI, CLNY, CMO, CMTL, CNIT, CNV, CNXC, CPGX, CRC, CSG, CUDA, CUR, CYCC, CYS, DAR, DCI, DDD, DHF, DISCB, DPG, DWSN, DXM, ECR, ECT, EHI, EMES, EMO, ENLK, ENVA, EQS, EQT, ERA, EVA, EVEP, EXXI, FBRC, FDEU, FEI, FELP, FGP, FINL, FLXN, FMO, FNGN, FPL, FSYS, FWRD, GEOS, GER, GG, GI, GLF, GLRE, GLYC, GMLP, GMZ, GOGL, GPS, GROW, GSAT, GSIT, GUT, GVA, HAE, HK, HTR, HTS, HWCC, I, IMN, INF, IPCI, ISH, IVAC, IVR, JASN, JHI, JVA, KKD, KNX, KONA, KOOL, KW, LADR, LENS, LF, LGCY, LNTH, LVS, LXU, MAT, MBUU, MCC, MCRB, MDM, MHE, MIE, MRIN, MSL, MSM, MTGE, MXPT, NAO, NAV, NAVI, NBG, NBRV, NCTY, NEPT, NES, NL, NM, NNI, NOR, NSAM, NTAP, NWHM, NWSA, NYLD, NYLD.A, NYMT, OCIP, OESX, ORIG, OVAS, OXGN, PACB, PARN, PBYI, PHIIK, PICO, QTWW, QUAD, RAX, REXI, RICE, RKDA, RRTS, RSO, RTTR, RWT, RXN, SCON, SD, SEP, SFE, SFLY, SGMO, SGNL, SKBI, SKY, SMLP, SMRT, SNR, SNSS, SONS, SORL, SPRT, SSE, STRI, STV, TCON, TCP, TCS, TERP, TISI, TNXP, TTP, TTPH, TWI, UACL, UAMY, UEIC, UIS, UNTD, USLM, UUUU, VCYT, VKTX, VMI, VNCE, VRNS, VTA, WEA, WES, WIW, WPRT, WPT, WRLD, WWW, XHR, XPL, YECO, ZINC

ETFs that traded to 52 week highs: none

ETFs that traded to 52 week lows: UNG

Pericom Semiconductor (PSEM 18.00, +1.10): +6.5% after receiving an acquisition offer from Montage Technology Group that values PSEM at $18.50/share

7:50 am Brooks Automation approves $50 mln stock repurchase program; funded through cash on hand and cash generated from operations (BRKS) :

7:04 am Pericom Semi: Montage Technology Group has proposed to acquire PSEM for $18.50/share in cash, representing a competing bid to DIOD's prior $17.00 per share (PSEM) :

Montage Technology Group Limited announced that it proposed an offer to acquire 100% of the outstanding stock of Pericom Semiconductor Corporation at a price of $18.50 per share in cash to Pericom shareholders, in a transaction valued at approximately $430 million.

The proposal was conveyed in a binding offer letter to Pericom's Board of Directors on September 29, 2015, together with signed copies of a merger agreement and a voting agreement, each on substantially the same terms as the Diodes (DIOD) merger agreement and voting agreement, and a signed copy of an escrow agreement relating to a reverse break-up fee.

[ReturntoSender]

InvestmentHouse - Jobs Plunge Across the Board (Weekend Newsletter)

http://www.investmenthouse.com/frblog.php

- Jobs plunge across the board, stocks fall then reverse.
- SP500 shows a follow through session, apparently liking the bad data.
- Stunningly bad data when things are supposedly so good the Fed can hike rates.
- Fed blames low participation on a lack of work ethic.
- Oh yes, and Factory Orders tank. Again.
- Leaders perform well, others trying to set up to also lead higher.

Quite the Friday. All eyes were on the Jobs Report and when it hit most averted their eyes in disappointment. Stock futures were up into the numbers, but on the woeful numbers from top to bottom to revisions, stocks tanked. Immediately. Hard. Bonds rallied, gold surged, dogs and cats thought about living together (from 'Ghostbusters').

Stocks opened just about on their lows after an absolutely abysmal jobs report that sadly matched the absolutely abysmal state of US manufacturing. The report was so bad the Fed initiated the blame game, pointing fingers at the guilty parties. Problem is, the Fed is such a poor marksman it missed the proper target, i.e. this Administration's anti-growth policies, and blamed the drop in participation rate on people who just did not want a job.


Khan: "Kirk, you're still alive, my old friend?"
Kirk: "Still 'old friend'. You've managed to kill just about everyone else, but like a poor marksman, you keep missing the target!"

Perhaps that is the case. As we have said all along, many are opting not to work versus working a menial job with a boss younger and with a thimble full of experience versus the 'lesser' employee. Get hassled at work or get benefits and work some side jobs for cash? You make the call.

Even if people are leaving the workforce because they don't want to work the kind of jobs the economy is producing, blaming them is like beating the dog when grandma passes gas; you take action but it does nothing to solve the problem.


"Whenever Mrs. Kissel breaks wind, we beat the dog." '10' (1979)

The height of the irony: today WMT officially announced the 450 layoffs rumored earlier this week, all management positions at the Arkansas headquarters. WMT is culling its breadwinner jobs to make way for more minimum wage jobs this economy creates, jobs it is now paying a little bit more for per hour. Again, beating the dog when grandma breaks wind. The problem is not too many good jobs, it is the economy producing no quality jobs and thus a continuing decline in real wages eviscerating consumer purchasing power.

No one but a handful of people are yelling the emperor has no clothes. Hundreds of millions of Chinese starved to death under the policies of Mao Tse Tung when he came into power via communist revolt. He refused to change his policies year after year after year until he finally took heed of his advisors, the ones he had not murdered, and altered some of his communist policies. Our emperor won't. He is fundamentally changing the US, and he is not going to stop as long as he is in office for another 14 months. Congress doesn't have the guts to stop him by using the funding powers so he will operate under executive fiat until he leaves office. Sadly that means we will have no significant economic improvement until he leaves and his policies are undone.

Okay, that sets the stage. You would think carnage. It was, but it was carnage that flushed out sellers and opened the door for the rally to continue.


In any event, stocks tanked on the open, bumped along opening levels for forty minutes then bounced. Bounced and never looked back. They rallied steadily to noon, worked laterally for two hours, then took off upside to race higher toward the close.

SP500 27.54, 1.43%
NASDAQ 80.70, 1.74%
DJ30 200.36, 1.23%
SP400 1.44%
RUTX 1.51%
SOX 2.16%

VOLUME: NYSE +10%; NASDAQ +3%. Not blowout, massive volume, but a steady increase in solid, above average trade as stocks rallied again. Good upside volume on the Tuesday reversal and Wednesday surge, a Thursday pause, then new solid volume Friday on the gains.

A/D: NYSE 3:1, matching Wednesday levels. NASDAQ 2.2:1, also matching Wednesday levels.

Why the reversal from carnage to nirvana? Technical, my dear Watson.

The move was set up ahead of time. Sentiment and internals hit extremes, some of the stock indices tested the prior lows, all bounced. Wednesday the rally started ahead of the news as we anticipated, Thursday a pause just before the release.

Then the news was out. Bad news was bad news at first, but then not. There was panic in the morning that ran out the rest of the sellers. When they were panicked out, the buyers returned. All but SOX tested below the Thursday low and closed above the Thursday high. Key reversal days though volume was less than blowout. Nonetheless another session that fought off selling and saw buyers return, this time with some gusto.

A good move but not a perfect move. More leaders will be needed, but this action buys them time to build their patterns along the lines of what we discussed this past week. While they build those patterns some solid stocks surged ahead, e.g. AMZN, PCLN, NFLX, SIMO. Even GOOG got in on the move, muscling right back into the leadership group. More are needed, but this was a start.


NEWS/ECONOMY

The jobs report was gruesomely painful, like being forced to watch back to back episodes of 'Designing Women' for days on end. Like listening to our President tell us abject nonsense as to why yet another year is closing and the economy is still crap, why the jobs created are for all intents and purposes the temp jobs high school kids worked. It was that bad.

Even the headline numbers could not be fudged, and the prior headline numbers that were previously written higher were revised back down.

Non-Farm Payrolls: 142K versus 205K expected versus 136K prior (from 173K). July was revised to 223K from 245K. In all, -59K jobs for those two months.

Unemployment Rate: 5.1% versus 5.1% versus 5.1%. But this doesn't even matter anymore because of the most key statistic, those in the workforce.

Hourly earnings: 0.0% versus 0.2% expected versus 0.4% prior (from 0.3%).
Actually they were negative but rounded up: -0.01 to $25.09 from $25.10.
Aggregate earnings: -0.2% (workweek plus hourly earnings)
Weekly earnings: Fell to $865.61 from $868.46

Average workweek: Back down. 34.5 versus 34.6 expected versus 34.6 prior. Seems that increase that Mark Zandi was crowing about was just a one-week blip. Kind of like Zandi's overall accuracy in predicting jobs, the same record the Phillips Curve Keynesians have in predicting economic activity.

PARTICIPATION: 62.4% from 62.6%. Those out of the workforce increased 579K to . . . 94.6M, a level not seen since October 1977 in, of course, the Carter years, the other time we had a socialist in office. And I am saying that rather nicely.

Where the jobs are and are not: a new month, but the same story. Of course.

Healthcare: +34K
Professional and Business: +31K
Retail: +24K
Construction: +8K

Mining: -10K
Manufacturing: -9K
Wholesale trade: -4K

Insult to injury: September saw +21K waiters and -9K manufacturing workers. Since 12/2007 the US has added 1.5M waiters and bartenders and lost 1.4M manufacturing jobs.


Factory Orders flashing recession signal

Factory Orders, August: -1.7% versus -1.0% expected versus 0.2% prior (from 0.4%)

Year/year: -15%! The tenth straight year/year decline. This is the longest non-recession string of losses ever seen. But, of course, perhaps they are NOT outside of a recession?

Inventories to shipments: 1.35. This is knocking on the door of recession. Indeed, in 2008 the US was already in recession when the figure was 1.25.






THE MARKET

CHARTS

All indices gapped lower, all but SOX gapped below the Thursday low. After an hour they started to rebound and they rallied to midday, consolidated, then sprinted to the close. All closed over the Thursday high. Volume up. Solid shakeouts and reversals, and yes, SP500 showed a follow through session, a bit earlier than we anticipated.

SP500: Broke hard to the downside early session, undercut the Thursday low but held over the weeks' lows (as it should to keep the rally attempt alive), then rushed upside to a solid gain on rising, above average, but not huge volume. That is a reversal session and a follow through session to the rally that started Tuesday, all rolled into one. All the elements are in place: A dive lower in August that shot sentiment and internal readings to bottoming levels, a test of the prior low to form a double bottom, MACD putting in a higher low, a reversal Tuesday, a rally on some volume Wednesday, a reversal and follow through Friday. The stage is set for a new uptrend. Now just add leaders.

NASDAQ: Gapped lower, sold below the Thursday low, reversed sharply to close at the session high, filling the gap lower from Monday. NASDAQ did not, as previously opined, need to test the prior low thanks to others doing the work for it, as well as having some leaders that refused to sell off.

DJ30: Also reached below the Thursday low on the early test, reversed to close at the week's highs. Held the early September lows on this test, holding well above the August low. Nice reversal.

RUTX: Nice session, gapping lower, selling down to the Tuesday low, then reversing sharply. Took out the late August lows on the recovery. Nice lower low and reversal, a.k.a. a false break. The market and the economy really need RUTX to make this rally work.

SP400: Same pattern as SP500, reaching almost to the week lows, reversing upside to a strong gain. Nice double bottom reversal.

SOX: Gapped lower, held above the Thursday low, reversed to close at the week's high. SOX is another index that did not fully test the August low, but again, not all indices have to.


LEADERSHIP

A lot of stocks moved higher, a lot of stocks doing so were roughed up and look to simply be in rebounds from their selling. In other words, they are showing bounces but are not coming out of good consolidation patterns or rebounding off of key support. There are leaders, however, and other stocks in the process of good patterns. The question that will be answered over the next two weeks is whether there are enough to keep the rally going and whether others form up to follow.

Big Names: AMZN powered higher on rising, above average volume. PCLN gapped lower and reversed on rising volume. NFLX broke through the upper trendline of its wedge on rising, above average volume. GOOG looks to have righted the ship. AAPL is still a question as is BWLD and SBUX. CMG could flip to an upside play soon.

Chips: MLNX surged. MCHP has a very nice pattern. CY sports a nice double bottom. MXWL surged upside. SIMO looks super. Many of the AAPL related chips are still so-so, e.g. BRCM, SWKS, QRVO.

Industrials: Examples of stocks bouncing but not much more. CMI, CAT, TEX.

Financial: Took a hit but reversed, though still negative on the day. JPM, WFC. MA did managed a positive close as it still trades in its range and on lower volume. The lowering of rate hike odds post-jobs did not help these stocks as much.

Energy: CVX broke to a higher high in its consolidation; a possible nice trade. APC bounced off the late August lows. PTEN ditto. HAL helped its cause though a so-so pattern.

China stocks: SINA surged through the 200 day SMA. ATHM surged through the 50 day EMA. CTRP and even more so SOHU look interesting.

Software: Some interesting action. VDSI still looks good but want more volume. CYBR might be able to show something. Others are still struggling: SPLK, PANW. CALD shows a very interesting 50 day EMA test.


MARKET STATISTICS

NASDAQ
Stats: +80.69 points (+1.74%) to close at 4707.78
Volume: 2.129B (+3.04%)

Up Volume: 1.79B (+836.06M)
Down Volume: 383.99M (-756.01M)

A/D and Hi/Lo: Advancers led 2.16 to 1
Previous Session: Decliners led 1.37 to 1

New Highs: 16 (-2)
New Lows: 204 (0)

S&P
Stats: +27.54 points (+1.43%) to close at 1951.36
NYSE Volume: 1.1B (+10%)

A/D and Hi/Lo: Advancers led 2.97 to 1
Previous Session: Decliners led 1.05 to 1

New Highs: 10 (0)
New Lows: 266 (+92)

DJ30
Stats: +200.36 points (+1.23%) to close at 16472.37


SENTIMENT INDICATORS

VIX: 20.94; -1.61
VXN: 23.71; -1.87
VXO: 22.17; -1.51

Put/Call Ratio (CBOE): 1.09; +0.12

Recent history: 22 of 32 sessions at or over 1.0. Has done its work for a bounce.


Bulls and Bears: Now it is official: bears moved above 35%, the 'official' bullish indicator for bears. Further, the bulls/bears crossover continued and drove further, down for bulls, up for bears.

Bulls: 24.7 versus 26.0

Bears: 35.1% versus 30.2%

Theory: When everyone is bullish and has put all their capital to work, where does the ammunition to drive the market come from? There is always new money to start a new year. After that is used will more money be coming? That is the question.




Bulls: 24.7%
26.0% versus 26.8% versus 25.7% versus 27.8% versus 31.6% versus 37.7% versus 40.2% versus 42.2% versus 43.3% versus 49.0% versus 43.7% versus 44.8% versus 49.5% versus 51.6% versus 45.5% versus 47.4% versus 51.5% versus 47.5% versus 51.5% versus 48.5%

Background: This is the lowest since the 2008 and 2009 market plummet.

Bears: 35.1%
30.2% versus 26.8% versus 27.9 versus 26.8% versus 22.5% versus 18.4% versus 18.6% versus 17.5% versus 17.5% versus 15.6% versus 15.6% versus 15.6% versus 15.4% versus 15.4% versus 16.5% versus 16.5% versus 15.8% versus 14.9% versus 15.8% versus 13.9%

Background: Over 35% for bears is the threshold to be really be a good upside indicator. The best indication is when bears cross up through bulls as the two merge. Getting close.


OTHER MARKETS

Bonds (10 year): 1.98% versus 2.04%. Bonds gapped higher through the 200 day SMA measured by the TLT but faded to close below that level. Still rallying as a rate hike becomes not much more than a glimmer.

Historical: 2.04% versus 2.05% versus 2.05% versus 2.09% versus 2.17% versus 2.11% versus 2.15% versus 2.14% versus 2.20% versus 2.13% versus 2.20% versus 2.30% versus 2.28% versus 2.17% versus 2.18% versus 2.23% versus 2.18% versus 2.19% versus 2.13%


Euro/$: 1.12106 versus 1.1190. Surged then faded to a narrower gain.

Historical: 1.1190 versus 1.1167 versus 1.1254 versus 1.1254 versus 1.1206 versus 1.1223 versus 1.11715 versus 1.11325 versus 1.12004 versus 1.13010 versus 1.14077 versus 1.13068 versus 1.1268 versus 1.1317 versus 1.1338 versus 1.1278 versus 1.1217 versus 1.12093 versus 1.1148 versus 1.1122 versus 1.1220 versus 1.1299 versus 1.1216 versus 1.1180 versus 1.1243 versus 1.1413


$/JPY: 119.91 versus 119.86. Big reach lower early but recovered to flat, still in the 6 week lateral range.

Historical: 119.86 versus 120.07 versus 119.76 versus 119.64 versus 120.58 versus 120.30 versus 120.19 versus 120.00 versus 120.36 versus 119.996 versus 119.82 versus 120.46 versus 120.49 versus 120.34 versus 120.58 versus 120.73 versus 120.39 versus 119.98 versus 119.04 versus 120.15


Oil: 45.54, +0.52. Modest gain, still in the 6 week lateral range the same as the dollar/yen. Again, it is interesting how well oil held up on a large inventory build, but of course that was offset by a dramatic rig count decline reported Friday.

Gold: 1136.60, +23.90. That is a big move, reaching well below the week's lows down to the mid-September lows then reversing and powering through the 50 day EMA. Higher low, strong upside break.


MONDAY

ISM clings to expansion by 0.2. Factory Orders bomb. Jobs Report massively disappointing though the President talks as if things are great if Congress would just get rid of spending limits so the federal government could spend more and more. Then the economy would grow. As if the Fed with a $4T balance sheet of spending, the federal government trillions in debt despite taking record amounts of taxes from citizens is not enough spending.

The economy is not great, is not healthy, but the question is how will the market react? Typically the market forecasts economic action. If it recovers and continues moving back up to higher highs it is either forecasting better times OR more Fed action. Not just failure to launch rate hikes, but Action, e.g. new QE. If the economy continues to spiral lower the Fed may have no choice. Perhaps the market is considering that as its reason to rally. Of course in times gone by during QE, each time a program ended the market stalled and rolled over and did not recover UNTIL new QE was announced. In other words, this would be the first QE anticipatory rally for the market.

All of that is interesting and fun to debate. As for what we do with our trades and investments, however, it is all academic. What we act upon is market action and leadership.

The market has shown the action. It has done what is necessary to put in a bottom in terms of sentiment, internals, and now technical action. There are some leaders that have started the move and are Friday showed the way higher again. Others are starting to follow and still others are in the process of setting up. If enough can come along, the confirmed rally has some legs. The market needs plenty of new leadership wannabes forming up to sustain rallies. As noted before, the leadership is still somewhat thin, but it is now improving.

We booked some good gain on the week in a few downside positions. Then we picked up some good upside on the week: SIMO, AMZN, PCLN, SLAB, TSYS, SINA, MXWL, NFLX. We have some really great stocks in good position, some leading already, others moving up to shoulder in on leadership. A good start.

We will continue looking for more stocks that want to lead. Some of the big names look good, some of the chips look good, some China stocks look good. That works as they started the move and you want to see them continue contributing. At some point, however, others need to show up. Energy again is trying to set something in motion. Even LPX in materials has set up a double bottom.

Better though a lot more is needed as the move progresses. If it doesn't show up, as soon as the initial leaders finish their moves the overall move ends, sometimes abruptly.

For now the move shows good action in many ways. In addition to the plain old double bottom tests by SP500 and SP400, the intraday action Tuesday and Thursday, coming back from selling in the face of bad news, and the same action Friday, magnified in force and the level of news, is solid recovery action.

We plan on putting money to work on quality leaders making good moves just as we have done. This is the first try at a rally with all elements in place since the August selloff. Even with all the criteria met, still enter quality and not all your money at once. Start working in on solid plays making good moves. If the move is going to continue to new highs, we will get many opportunities to put money to work at very good entry points.

Have a great weekend!


SUPPORT AND RESISTANCE

NASDAQ: Closed at 4707.78

Resistance:
4751 is the January 2015 lower high
4774 is the January high
4811 is the November 2014 peak (intraday)
4815 is the December 2014 prior market peak
The March lows at 4843 and 4825
The 50 day EMA at 4826
4837 is the late August 2015 rebound high
4910 is the July 2015 low
4912 the mid-April China dip
The 200 day SMA at 4917
The June low at 4974
5008.57 is the early March 2015 post-bear market high
5042 is the March 2015 high

Support:
4636 is the early September 2015 low testing the recovery from the August selling.
4631 is the October 2014 upside gap point
4614 is the September 1 intraday low
4610 is the September 2014 post-bear market high.
4566 is the lower gap point from late October
4563 and 4567 are the January lows
4547 is the December 2014 low is giving way
4506 is the August 2015 selloff closing low
4370 to 4300 (March 2014 peak to June gap point)
4185 to 4130 (May 2014 gap point to October 3014 low)
4292 is the August 2015 intraday low


S&P 500: Closed at 1951.36

Resistance:
1972 is the December 2014 low
The 50 day EMA at 1987
1989 is the last August closing high
1991 is the July 2014 high
1994 is the late August recovery peak
2011 is the September prior all-time high
2046 is the July 2015 closing low
2062 is the January 2015 lower high
The 200 day SMA at 2063
2076 is the all-time high from November
2079 is the intraday all-time high from November
2094 is the December 2014 high, the prior all-time high
2115 is the late March lower high
2119.59 is the February intraday prior all-time high
2126 was the April prior all-time high
2130 is the June 2015 peak
2135 is the May 2015 all-time high

Support:
1913 is the early September 2015 closing low testing the bounce from the August selling
1905 is the August 2014 low
1902 from early May was the intraday all-time high.
1897 is the prior all-time high hit in April 2014
1883.57 is the early March high.
1872 is the September 2015 test low of the August low
1867 is the August 2015 low
1862 is the October 2014 closing low
The December and January highs at 1848
1829 us the October 2014 intraday low
The April 2014 low at 1814
1808 is the November and December 2013 twin peaks
1775.22 is the October prior all-time high


Dow: Closed at 16,472.37

Resistance:
16,506 is the March 2014 peak
16,589 is the December 2013 all-time high
16,632 is the April 2014 all-time high
16,665 is the late August 2015 closing high. Key, key level.
16,670 is the December 2014 peak and the recent August 2015 relief bounce peak. Key level.
16,736 is a prior all-time high from May 2014
The 50 day EMA at 16,738
16,933 is the September 2015 recovery peak
16,946 is the June 2014 peak
16,970 is the June 2014 former all-time high
17067 is the December 2014 low
17,068 is the early July 2014 peak
17,152 is the mid-July post bear market high
17,351 is the September 2014 all-time high.
17,515 is the early July closing low
17,585 to 17,579, the March intraday lows, helping mark the bottom of the Dow's The February to July trading range.
The 200 day SMA at 17,626
June low at 17,715
The March low at 17,786
17,748 is the mid-April China margin selloff and the bottom of the 5 month trading range

Support:
16,117 is the October 2014 closing low
16,058 is the early September 2015 low
16,026 is the April 2014 low
15,942 is the September 2015 low testing the August low
15,855 is the October 2014 intraday low
15,372 is the February 2014 closing low
15,370 is the August 2015 intraday low
14,803 is the October 2013 low


ECONOMIC CALENDAR

September 28 - Monday
Personal Income, August (8:30): 0.3% actual versus 0.4% expected, 0.5% prior (revised from 0.4%)
Personal Spending, August (8:30): 0.4% actual versus 0.3% expected, 0.4% prior (revised from 0.3%)
PCE Prices - Core, August (8:30): 0.1% actual versus 0.1% expected, 0.1% prior
Pending Home Sales, August (10:00): -1.4% actual versus 0.5% expected, 0.5% prior

September 29 - Tuesday
Case-Shiller 20-city, July (9:00): 5.0% actual versus 5.0% expected, 4.9% prior (revised from 5.0%)
Consumer Confidence, September (10:00): 103.0 actual versus 96.0 expected, 101.3 prior (revised from 101.5)

September 30 - Wednesday
MBA Mortgage Index, 09/26 (7:00): -6.7% actual versus 13.9% prior
ADP Employment Chang, September (8:15): 200K actual versus 200K expected, 186K prior (revised from 190K)
Chicago PMI, September (9:45): 48.7 actual versus 52.9 expected, 54.4 prior
Crude Inventories, 09/26 (10:30): 3.995M actual versus -1.925M prior

October 1 - Thursday
Challenger Job Cuts, September (7:30): 93.2% actual versus 2.9% prior
Initial Claims, 09/26 (8:30): 277K actual versus 270K expected, 267K prior
Continuing Claims, 09/19 (8:30): 2191K actual versus 2242K expected, 2244K prior (revised from 2242K)
ISM Index, September (10:00): 50.2 actual versus 50.6 expected, 51.1 prior
Construction Spending, August (10:00): 0.7% actual versus 0.5% expected, 0.4% prior (revised from 0.7%)
Natural Gas Inventor, 09/26 (10:30): 98 bcf actual versus 106 bcf prior
Auto Sales, September (17:00): 5.6M prior
Truck Sales, September (17:00): 8.5M prior

October 2 - Friday
Nonfarm Payrolls, September (8:30): 142K actual versus 205K expected, 136K prior (revised from 173K)
Nonfarm Private Payr, September (8:30): 118K actual versus 200K expected, 100K prior (revised from 140K)
Unemployment Rate, September (8:30): 5.1% actual versus 5.1% expected, 5.1% prior
Hourly Earnings, September (8:30): 0.0% actual versus 0.2% expected, 0.4% prior (revised from 0.3%)
Average Workweek, September (8:30): 34.5 actual versus 34.6 expected, 34.6 prior
Factory Orders, August (10:00): -1.7% actual versus -1.0% expected, 0.2% prior (revised from 0.4%)

October 5 - Monday
ISM Services, September (10:00): 58.0 expected, 59.0 prior

October 6 - Tuesday
Trade Balance, August (8:30): -$44.5B expected, -$41.9B prior

October 7 - Wednesday
MBA Mortgage Index, 10/03 (7:00): -6.7% prior
Crude Inventories, 10/03 (10:30): 3.995M prior
Consumer Credit, August (15:00): $19.5B expected, $19.1B prior

October 8 - Thursday
Initial Claims, 10/03 (8:30): 275K expected, 277K prior
Continuing Claims, 9/26 (8:30): 2205K expected, 2191K prior
Natural Gas Inventories, 10/03 (10:30): 98 bcf prior
FOMC Minutes, 9/17 (14:00)

October 9 - Friday
Export Prices ex-ag., September (8:30)
Import Prices ex-oil, September (8:30)
Wholesale Inventories, August (10:00): 0.0% expected, -0.1% prior

[ReturntoSender]

From Briefing.com: 4:32 pm NXP Semi notes regulatory approval process on the NXP-Freescale Semiconductor (FSL) merger and the sale of NXPI's RF Power business is progressing as anticipated; on track to close in Q4 (NXPI) :

4:08 pm Intel beats by $0.05, beats on revs; guides Q4 revs in-line (INTC) :

Reports Q3 (Sep) earnings of $0.64 per share, $0.05 better than the Capital IQ Consensus of $0.59; revenues fell 0.6% year/year to $14.46 bln vs the $14.22 bln Capital IQ Consensus and $13.8-14.8 bln guidance.Gross margin 63%, in-line with guidance. Client Computing Group revenue of $8.5 bln, up 13% QoQ and down 7% YoY Data Center Group revenue of $4.1 bln, up 8% QoQ and up 12% YoYnternet of Things Group revenue of $581 mln, up 4% QoQ and up 10% YoY Software and services operating segments revenue of $556 mln, up 4% QoQ and flat YoY

Co issues in-line guidance for Q4, sees Q4 revs of $14.3-15.3 bln vs. $14.82 bln Capital IQ Consensus.Gross margin%age: 62%, plus or minus a couple of%age points. Full-year capital spending: $7.3 bln, plus or minus $500 mln (up from $7.2 bln midpoint).

Trading today ended with losses of more than -0.25% among all three major indices. The Nasdaq Composite shed the most Tuesday, ending lower by 42.03 points (-0.87%) to 4796.61. The S&P 500 closed lower by 13.77 points (-0.68%) to 2003.69. The Dow Jones Industrial Average posted the tamest losses today, ending down 49.97 points (-0.29%) to 17081.89. It was a roller-coaster ride for the indices today, as all began with notable losses only to climb quickly out of the hole about an hour into trading. The markets could not hold onto those losses and all three indices slowly stepped lower as the session progressed.

In the overnight session, China came out with disappointing data as the country's trade balance showed a 20.4% decline in imports. The weakness translated to notable losses among most European equity indices, as the FTSE (-0.5%), DAX (-0.9%), CAC (-1.0%), IBEX (-1.4%), PSI (-1.4%) and ASEX (-0.4%) all posted losses. The Irish Overall Index (+0.3%) was the only notable European index to end higher on the session.

The story of the day in Technology (XLK 41.44, -0.09 -0.22%) came from Twitter (TWTR 29.06, +0.31 +1.08%), which announced that the company would be trimming certain Product and Engineering positions as part of a restructuring. The company would let go about 336 employees, and as such expects to incur about $10-20 million of cash expenditures, most of which would be related to severance packages. In addition, per the restructuring, TWTR now expects Q3 revs and EBITDA to be at or above the guidance range of $545-560 million and $115 million, respectively.

Other Social Media (SOCL 18.58, +0.08 +0.43%) names which displayed relative strength on the session included YNDX +4.63%, WB +1.96%, RENN +1.16%, TWTR +1.08%, GOOGL +1.00%, LNKD +0.70%. Laggards in the sector today included CYOU -4.26%, NTRI -3.32%, GRPN -2.39%, UNTD -2.33%, DMD -2.27%.

In terms of the S&P 500 Information Technology (696.03, -2.28 -0.33%) sector, right out of the gate the sector was lower. Early losses did not hold, and the sector quickly climbed out of the red, but those gains also did not hold and the sector ended the session down by a third of a percent. Laggards on the session included QRVO -4.93%, AVGO -3.62%, AMAT -2.95%, EMC -2.82%, LRCX -2.78%, SWKS -2.66%, KLAC -2.33%, AKAM -2.31%, GLW -2.20%.

Other notable news items among sector components:

IBM (IBM 149.62, -1.52 -1.01%) announced a 10-year technology services agreement with Etihad Airways worth about $700 million. The agreement includes plans for the creation of a new cloud data center developed by IBM in Abu Dhabi. IBM (IBM) announced it has opened its first public cloud data center in India. Located in Chennai, the new IBM Cloud data center offers local customers and end users increased performance and speed for data traveling to and from the region.HP (HPQ 29.23, -0.07 -0.24%) announced that RAKO-GROUP has purchased two HP Indigo 20000 Digital Presses and nine HP Indigo WS6800 Digital Presses, making it the largest labels and packaging deal in HP Indigo history.Hewlett Packard Enterprise (HPE) completed $2.25 billion in aggregate note offerings. The company also announced a $3 billion share repurchase program. Xerox (XRX 10.41, -0.05 -0.43%) provided an update regarding the strategic direction of its government healthcare business. In addition, the company noted it is recording a pre-tax charge of about $385 million (about $240 million after-tax or 22 cents per share) in its Q3 results. XRX now expects Q3 2015 GAAP loss from continuing operations of 3-5 cents per share. Adj. EPS, excluding this charge, is expected to be in line with previous guidance of 22-24 cents.

EMC (EMC 27.55, -0.80 -2.82%) announced that Board member David Strohm has resigned effective Oct. 6, 2015 due to increasing conflict with other business and personal obligations. Incidentally, Strohm has also resigned from his Board position at VMware (VMW 69.34, -2.93 -4.05%).

Adobe (ADBE 83.65, -0.27 -0.32%) and Dropbox announced a partnership to enable people and organizations greater flexibility to work the way they want with documents at home, in the office or on-the-go. The companies are integrating their applications and services on mobile devices, desktop, and the web for faster and more seamless access to all of the mission-critical content stored as PDF files.

Glu Mobile (GLUU 4.09, -0.01 -0.24%) named Tim Wilson as Global Chief Technology Officer. Wilson has served in multiple CTO positions at Electronic Arts (EA 68.42, +0.31 +0.46%).

Salesforce (CRM 76.63, +0.75 0.99%) announced that Salesforce Ventures-the company's global corporate investment group-has allocated $100 million to invest in European startups to fuel cloud innovation and customer success in the region. The new $100 million commitment will provide funding and support to the entrepreneurs driving growth in Europe's public cloud software market.

Yandex (YNDX 12.76, +0.57 +4.63%) and Microsoft (MSFT 46.89, -0.11 -0.23%) announced a strategic partnership to provide a custom Windows 10 experience for customers in Russia, Belarus, Kazakhstan, Ukraine, Turkey, and several other countries in the region.

Visa Inc. (V 75.00, +0.01 +0.01%) and FireEye (FEYE 30.78, -0.22 -0.71%) announced the launch of their product, Visa Threat Intelligence, powered by FireEye. The new service will deliver real-time threat information to merchants and issuers so they can assess and act on critical cyber-attacks that could breach their payment systems.

Teradata Marketing Applications, a division of Teradata Corp (TDC 28.37, -0.21 -0.73%) and Localz announced a new partnership to provide micro-location experiences and iBeacon tools for enterprise marketers, via the Teradata Integrated Marketing Cloud.

PayPal (PYPL 33.22, +0.59 +1.81%) announced the expansion of Return Shipping on Us, a service that refunds return shipping costs to consumers on eligible online purchases using PayPal; the service will now be available to PayPal users in the United States.

Zix Corporation (ZIXI 4.43, -0.08 -1.77%) announced the launch of its ZixGateway, that uses Cisco (CSCO 27.85, -0.11 -0.39%) technology. The offering is an on-site solution for encrypted email to anyone, anywhere on any device. The offering will be available on October 23, 2015, through Cisco's direct sales and its reseller network.

Elsewhere in the technology space:

Angie's List (ANGI 5.71, -0.07 -1.21%) TCS filed an amended 13D in which it sent a letter expressing the belief that the greatest value can be achieved through the strategic combination with another industry player such as IAC's (IACI 72.26, +0.82 +1.15%) HomeAdvisor.

Sysorex Global (SYRX 1.03 flat) appointed Kevin Harris as CFO, effective Oct. 19. Harris' recent positions have been as CFO at Response Genetics (RGDXQ).

Nimble Storage (NMBL 23.57, +0.30 +1.29%) named Janet Matsuda as VP & Chief Marketing Officer.

CACI Intl (CACI 82.46, +0.14 +0.17%) was awarded a $90 million contract to support the FEMA National Public Warning system. The five-year IDIQ contract represents both new and continuing work for the company.

Digital Ally (DGLY 7.23, +0.05 +0.70%) received patent from the USPTO for the use of proximity tags in law enforcement video recordings.

Radcom (RDCM 10.45, -0.17 -1.60%) received a $2 million order from a Tier 1 fixed-line service provider to upgrade and expand MaveriQ tech.

Hanwha Q CELLS (HQCL 16.72, +0.54 +3.34%) reached a favorable inventory valuation outcome in its arbitration proceedings against the Insolvency Administrator of Global PVQ SE. The company will then receive assets in the amount of $52.1 million in Q3.

Numerex Corp. (NMRX 9.11, -0.04 -0.44%) named Shu Gan as Chief Marketing Officer and Vin Costello as Chief Revenue Officer.

Analyst actions:

EMC was downgraded at Credit Agricole and Argus,
VSAT was downgraded to Market Perform from Outperform at Wells Fargo,
UTEK was downgraded to Hold from Buy at Stifel,
VMW was downgraded to Mkt Perform from Mkt Outperform at JMP Securities,
KKPNY was downgraded to Neutral from Outperform at Credit Suisse

11:56 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (106) outpacing new lows (38) (SCANX) : Stocks that traded to 52 week highs: ACGL, AEPI, AMSF, APPF, ATNI, ATR, AWK, BNCL, BRSS, BWXT, BZC, CDW, CENT, CENTA, CNO, COB, COR, CSBK, CSH, CTAS, DEA, DORM, DWTR, ECL, EDUC, EEFT, EFII, EFSC, ENR, ENVI, EQC, ESSA, EXLS, EXPD, EXPO, FCVA, FIX, FIZZ, FLO, FLTX, FN, FRME, GAME, GSBC, HA, HBK, HCAC, HOMB, HPY, HRL, JCOM, JOE, LANC, LGIH, LKOR, LNCE, LZB, MATX, MB, MCD, MESG, MNRO, MO, MSEX, NAVG, NBBC, NKSH, NOC, NP, NPK, NVCR, NVDA, NVR, NWBI, OSIS, PAC, PBY, PFS, PGR, POOL, PRA, PRMW, PSTG, PULB, QLC, RNR, RNST, SIGI, SNX, STZ.B, SYKE, TAP, TAYD, TFSL, TNK, TOWN, TSS, UBSH, UFPT, VIRT, VNTV, VVI, WCN, WDFC, WGL, WSFS

Stocks that traded to 52 week lows: AIMT, ALDX, AMS, BIIB, BORN, CDZI, CLLS, CNV, COSI, ENZN, ESMC, ETSY, HCAC, HTWR, ISH, ISRG, KGJI, LDRH, LITE, MGLN, PERF, PRCP, PULM, R, RGNX, RLOC, RNN, RT, SLM, SMT, SWN, SXC, TIGR, TNDM, VICL, VMW, WWW, ZSAN

ETFs that traded to 52 week highs: none

ETFs that traded to 52 week lows: none

[ReturntoSender]

From Briefing.com: The broader market ended trading lower as oil and foreign markets slid. The S&P 500 closed with the worst losses, shedding 5.29 points (-0.26%) to 2065.89. The Dow Jones Industrial Average was close behind, losing 41.62 points at the close (-0.24%) to 17581.43. The Nasdaq Composite rounded out the bunch lower by 4.56 points (-0.09%) to 5030.15. As mentioned, the broader market experienced pressure as UK's FTSE: -0.8%, Germany's DAX: -1.0%, France's CAC: -1.0%, Spain's IBEX: -1.5%, Portugal's PSI: -2.1%, Italy's MIB Index: -1.2%, Irish Ovrl Index: -1.2% all ended lower. Also seeing pressure in today's trading action, December crude oil futures spent the entire session in the red, ending lower by 1.8% to $43.22/barrel.

Market data today included Durable Orders, Consumer Confidence and Case-Shiller Index. Durable goods orders declined 1.2% in September after declining a downwardly revised 3.0% (from -2.3%). The Conference Board's Consumer Confidence Index declined to 97.6 in October from a downwardly revised 102.6 (from 103.0). The Case-Shiller 20-city Home Price Index for August rose 5.1.

The Technology sector (XLK 43.41, -0.25 -0.57%) finished Tuesday near session lows ahead of sector component Apple's (AAPL 114.55, -0.73 -0.63) quarterly results. Of note today, highly-weighted component IBM (IBM 137.86, -5.80 -4.04%) saw some pressure today following news that the company learned of an SEC investigation on IBM relating to revenue recognition with respect to the accounting treatment of certain transactions in the U.S., U.K. and Ireland. Other sectors finished as follows: XLV +1.81%, XLP +0.14%, XLU -0.36%, XLB -0.43%, XLY -0.47%, XLK -0.57%, XLF -0.58%, XLI -1.10%, XLE -1.20%, IYZ -1.38% with only healthcare and consumer staples escaping in the green.

Telecoms (FCOM 26.54, -0.44 -1.63%) were notably weak today on the back of T-Mobile US' (TMUS 39.02, -2.36 -5.70%) worse than expected Q3 results. The company reported EPS of $0.15 on revenues which rose 7% YoY to $7.8 billion, yet missed expectations. The telecom firm also raised net customer adds guidance to 3.8-4.2 million from 3.4-3.9 million for the 2015 period.

Semis (SOX 665.71, -4.47 -0.67%) again turned in a day of underperformance as Marvell's (MRVL 8.05, -1.39 -14.77%) independent registered public accounting firm, PricewaterhouseCoopers, resigned. Among other reasons, the firm left as it did not see eye to eye in regards to the company's scope of the 2016 audit. Other names in the semi sector which underperformed included: SUNE -8.99%, SWKS -2.05%, QRVO -1.86%, AVGO -1.72%, ARMH -1.68%, ON -1.64%, ATML -1.43%, NXPI -1.21%.

In the S&P 500 Information Technology sector (731.41, -4.01 -0.55%), selling pressure kept the sector down as largely held names like XRX -7.38%, FSLR -2.79%, HPQ -2.21%, TEL -2.18%, WU -2.09%, SWKS -2.05%, QRVO -1.86%, CA -1.78%, AVGO -1.72%, FLIR -1.68%, PYPL -1.37% ended lower on the session.

Other notable news items among sector components:

IBM (IBM) disclosed in its quarterly 10Q filing that in August 2015 it learned that the SEC was conducting an investigation relating to revenue recognition with respect to the accounting treatment of certain transactions in the U.S., U.K. and Ireland. IBM added $4 billion to the company's buyback program, bringing total authorization to about $6.4 billion. The company also affirmed the quarterly dividend of $1.30 per share. IBM announced the collaboration with Twitter (TWTR 31.30, +0.41 +1.33%) and The Weather Channel, introducing IBM Insight Cloud Services. Cisco Systems (CSCO 29.05, +0.10 +0.35%) yesterday announced its intent to acquire data-analysis firm ParStream. Financial terms of the deal were not disclosed, but CSCO noted it expects the deal to close in Q2, FY16.

CSCO also announced its intent to acquire Lancope for $452.5 million in cash and assumed equity awards.

InterActiveCorp (IACI 64.57, -3.00 -4.44%) entered into a new agreement with Alphabet's (GOOG 708.49, -4.29 -0.60%) Google to extend their long-term relationship through March 2020.

Synaptics (SYNA 84.50, +0.15 +0.18%) announced that Alphabet's (GOOG) Google has adopted the Synaptics ClearPad Series 3 family of touch controller solutions to power its newest flagship smartphones, the Nexus 5X by LG and the Nexus 6P.

Intuit (INTU 98.03, +0.32 +0.33%) to appoint Brad Smith as Chairman effective at the timing of the annual shareholder meeting in January 2016.

Salesforce.com (CRM 77.75, -0.47 -0.60%) announced plans to double its workforce in the Seattle area.

Ingenico Group (INGIY 23.13, -0.05 -0.22%) announced that it was advancing collaboration with Intel (INTC 34.47, -0.12 -0.35%) in creating for retailers a secure connectivity path from the cash register to the payment terminal, end-to-end. The Group has achieved the first implementation of the Intel Data Protection Technology for Transactions solution into Ingenico mobile POS.

Qualcomm (QCOM 59.28, +0.07 +0.12%) unveiled the Qualcomm Snapdragon 618 IP camera reference design and development platform. Co also introduced its latest LTE modems, which are designed to support reliable, optimized cellular connectivity to a growing array of devices and systems within the Internet of Things

NetApp (NTAP 33.36, +0.21 +0.63%) announced that Manila is production ready for the mainstream enterprise.

Symantec (SYMC 20.44, -0.12 -0.58%) introduced Symantec Advanced Threat Protection, the first solution that can detect and remediate advanced threats across control points, from a single console with just a click, all with no new endpoint agents to deploy.

Elsewhere in the technology space:

Marvell (MRVL) announced that its independent registered public accounting firm, PricewaterhouseCoopers, has resigned.

Integrated Device (IDTI 25.31, +1.73 +7.34%) in addition to reporting quarterly results announced that it would acquire ZMDI for $310 million. The transaction will add $20 million of quarterly revenues and be accretive to earnings in the first full quarter post-close.

Comtech Telecom (CMTL 23.46, -0.29 -1.22%) received a $1.7 million contract from a major U.S. system integrator to supply 500W Ka-Band traveling wave tube amplifiers for HTS gateways.

Network-1 (NTIP 2.00, -0.08 -3.85%) reported the USPTO issued a notice of intent to issue Ex Parte Reexamination Certificate, rejecting a challenge to the company's remote power patent.

Looksmart (LOOK 0.65, -0.06 -8.45%) shareholders approve reverse split and spin-off of the company's assets and liabilities into LookSmart Group, Inc.

Sysorex Global (SYRX 0.91, -0.02 -2.50%) secured a $1 million engagement with a U.S. Government agency for AirPatrol ZoneDefense mobile device detection and locationing system.

SMTC (SMTX 1.51, +0.0.2 +1.34%) extends Jim Currie's appointment as the interim CFO to April 30, 2016.

Rambus (RMBS 10.53, +0.29 +2.83%) approved an accelerated share repurchase program of about $100 million in common stock.

ReneSola (SOL 1.32, -0.07 -5.04%) announced the resignation of CFO Daniel Lee. VP of Financial Control Maggie Ma will serve as Interim CFO while the company searches for a successor.

Smith Micro Software (SMSI 0.71, -0.03 -4.33%) eliminated the position of Chief Strategy Officer, thereby terminating James Mains.

MKS Instruments (MKSI 34.06, -0.18 -0.53%) lowered the quarterly dividend to $0.165 from $0.17 per share.

Moko Social Media (MOKO 1.92, flat) requested a trading halt pending an announcement regarding a proposed capital raising.

In reaction to quarterly results:

Amkor (AMKR 6.26, +0.61 +10.80%) reported a beat on the top and bottom line of Q3 results. The company saw EPS of $0.12 on revenues which fell 9.7% YoY to $734 million. The company also issued downside guidance for Q4 EPS of ($0.02)-$0.05 on revenues of $660-710 million.

Aixtron (AIXG 6.39, +0.63 +10.94%) reported Q3 EPS and revenues which beat expectations. AIXG saw EPS of 0.01 on revenues which rose 19.7% YoY to 54.6 million. The company also reaffirmed guidance for the FY15 period of revenues of 190-200 million.

Monolithic Power (MPWR 61.66, +3.90 +6.75%) reported Q3 EPS which beat expectations at $0.55 on revenues which were mostly in-line at $91.2 million. The company also guided Q4 revenues in-line at $84-88 million.

Yandex (YNDX 14.99, +0.94 +6.69%) reported Q3 EPS and revenues which beat expectations. EPS for the period was RUB 10.89 per share on revenues which rose 18.2% YoY to RUB 15.44 billion.

GrubHub (GRUB 24.51, -7.58 -23.62%) reported Q3 EPS which missed expectations at $0.08 on revenues which slightly missed expectations and rose 38.4% YoY to $85.7 million. The company also guided Q4 EPS worse than expected at $98-100 million.

Knowles (KN 17.10, -3.77 -18.06%) reported Q3 EPS which was better than anticipated at $0.16 on revenues which were in-line and fell 2.1% YoY to $294.6 million. KN also guided Q4 EPS of $0.18-0.24 on revenues of $290-310 million.

MicroStrategy (MSTR 168.24, -28.02 -14.28%) reported Q3 EPS of $2.06 on revenues which fell 14.4% YoY to $129.5 million and missed expectations.

Companies scheduled to report quarterly results tonight/tomorrow morning: AKAM, ANAD, AAPL, BBOX, BKFS, FEIC, FISV, HLIT, INFN, IPHI, MRCY, NATI, NCR, NVMI, PEGA, RSYS, RUBI, TER, TSS,TWTR, ULTI, VDSI, XOOM/ARW, ADP, BAH, CARB, DHX, FLIR, LVLT, LFUS, RDWR, SLAB, SONS, SNCR, TEL, UMC, VNTV, WEX, WILN

Analyst actions:

NTGR was upgraded to Buy from Sell at Rosenblatt,
VMW was upgraded to Buy from Hold at Drexel Hamilton;
PMCS was downgraded to Neutral from Positive at Susquehanna, KN was downgraded to Underperform from Mkt Perform at FBR Capital,
BCE was downgraded to Underperform from Neutral at Macquarie

5:05 pm Teradyne beats by $0.02, reports revs in-line; guides Q4 EPS in-line, revs below consensus (TER) :

Reports Q3 (Sep) earnings of $0.40 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.38; revenues fell 2.5% year/year to $466.0 mln vs the $465.7 mln Capital IQ Consensus. Co issues guidance for Q4, sees EPS of $0.07-0.12, excluding non-recurring items, vs. $0.10 Capital IQ Consensus Estimate; sees Q4 revs of $295-320 mln vs. $328.1 mln Capital IQ Consensus Estimate.

4:33 pm Apple beats by $0.09, beats on revs; guides Q1 in-line (AAPL) :

Reports Q4 (Sep) earnings of $1.96 per share, $0.09 better than the Capital IQ Consensus of $1.87; revenues rose 22.3% year/year to $51.5 bln vs the $50.96 bln Capital IQ Consensus and $49-51 bln guidance; gross margin of 39.9% vs 39.2% ests (guidance 38.5-39.5%) iPhones 48.1 mln vs 48.8 mln ests & 39.3 mln last year iPads 9.9 mln vs 10.1 mln ests & 12.3 mln last year Macs 5.7 mln vs 5.6 mln ests & 5.5 mln last yearCo issues in-line guidance for Q1, sees Q1 revs of $75.5-77.5 bln vs. $76.95 bln Capital IQ Consensus; gross margin 39-40% vs. 39.9% estimates.Q1 revenue would be up 2.5% YoY at midpoint of guidance.

4:07 pm FEI agrees to acquire DCG Systems for $160 million in cash; expects slight accretion to 2016 GAAP EPS (FEIC) :

DCG is a supplier of electrical fault characterization, localization and editing equipment, serving process development, yield ramp and failure analysis applications for a wide range of semiconductor and electronics manufacturers.

DCG generated revenue of $76 million in its fiscal year ended January 31, 2015. The transaction is expected to be slightly accretive to FEI's 2016 GAAP EPS. Co intends to fund the acquisition with cash on hand. The transaction is expected to close by the end of 2015

4:15 pm : The stock market endured its second consecutive retreat on Tuesday, but the overall trading dynamic was very similar to the range-bound affair from Monday. The S&P 500 lost 0.3% while the Nasdaq Composite (-0.1%) outperformed throughout the session.

In some ways, the cautious posture was not all that shocking considering tomorrow afternoon will feature the release of the October FOMC policy directive, which will cross the wires at 14:00 ET.

As for today, nine sectors ended the day in negative territory with cyclical groups showing relative weakness across the board. The energy sector (-1.2%) spent its second consecutive day behind the remaining nine groups as lower oil prices weighed. To that point, WTI crude fell 1.8% to $43.22/bbl.

Similar to energy, the industrial sector (-1.0%) surrendered close to 1.0% while the remaining cyclical sectors posted slimmer losses. For its part, the industrial space was pressured by transport stocks as the Dow Jones Transportation Average tumbled 2.6% with JetBlue Airways (JBLU 25.36, -0.85) leading the dive. Shares of JBLU fell 3.2% even though the company reported a one-cent beat on in-line revenue.

Elsewhere among cyclical sectors, technology (-0.6%) traded ahead of the broader market during morning action, but ended among the laggards after IBM (IBM 137.86, -5.80) disclosed that the Securities and Exchange Commission is conducting an investigation into the company's revenue recognition with a focus on transactions in the U.S., U.K., and Ireland. IBM tumbled 4.0% while another influential sector component-Apple (AAPL 114.55, -0.73)-lost 0.6% ahead of its quarterly report.

Moving to the countercyclical side, the consumer staples sector (+0.1%) outperformed slightly, which was largely thanks to an intraday spike in Walgreens Boots Alliance (WBA 95.16, +5.68), brought on by a Wall Street Journal report indicating the company will acquire Rite Aid (RAD 8.67, +2.59) for roughly $10 billion.

On the upside, the health care sector (+1.7%) spent the entire session in the green after Merck (MRK 53.47, +0.56) and Pfizer (PFE 34.99, +0.83) reported better than expected results. The two Dow components posted respective gains of 1.1% and 2.4% while biotechnology also contributed to the strength in the sector with iShares Nasdaq Biotechnology ETF (IBB 327.65, +10.20) spiking 3.2%.

Treasuries rallied throughout the morning, hitting their highs around midday before surrendering a portion of their gains; however, the 10-yr note settled firmly in the green with its yield slipping two basis points to 2.03%.

Today's participation was ahead of recent averages as more than a billion shares changed hands at the NYSE floor.

Economic data included Durable Orders, Consumer Confidence, and Case-Shiller Index:

Durable goods orders declined 1.2% in September after declining a downwardly revised 3.0% (from -2.3%) while the Briefing.com consensus expected a decline of 1.3%
The drop wasn't a surprise as manufacturers are struggling to counteract the negative effects of a strong dollar and global economic weakness
Excluding transportation, durable goods orders declined 0.4% in September after declining a downwardly revised 0.9% (from +0.2%) in August while the consensus expected an increase of 0.2%
The Conference Board's Consumer Confidence Index declined to 97.6 in October from a downwardly revised 102.6 (from 103.0) while the Briefing.com consensus expected a decline to 102.5
The Present Situation Index declined to 112.1 in October from 120.3 while the Expectations Index fell to 88.0 from 90.8
The Case-Shiller 20-city Home Price Index for August rose 5.1% against a 5.0% increase expected by the Briefing.com consensus
This followed the previous month's revised increase of 4.9% (from 5.0%)

Tomorrow, the weekly MBA Mortgage Index will be reported at 7:00 ET.

Nasdaq Composite +6.2% YTD
S&P 500 +0.3% YTD
Dow Jones Industrial Average -1.4% YTD
Russell 2000 -4.8% YTD


DJ30 -41.62 NASDAQ -4.56 SP500 -5.29 NASDAQ Adv/Vol/Dec 845/1.78 bln/2073 NYSE Adv/Vol/Dec 802/971.9 mln/2288

3:40 pm :

Natural gas futures were volatile again today given the bearish supply/weather outlook situation
Also note that the Dec contract is now the front-month contract, which ended the day flat at $2.36/MMBtu
Dec crude oil spent the day in the red all day and closed -1.8% at $43.22/barrel
Precious metals were less volatile
Gold remained consolidated in afternoon trade. Dec gold finished $0.50 lower to $1165.60/oz, while Dec silver ended -0.3% at $15.86/oz


12:06 pm Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (175) outpacing new highs (82) (SCANX) : Stocks that traded to 52 week highs: ABCB, AEPI, CDNS, CIA, CORE, CUBE, CUNB, EBF, ESSA, EXR, FB, FBC, FBNC, FDP, FIZZ, FLO, FMX, FNFG, FNLC, FONR, GABC, GIG, GSOL, HCSG, HEOP, HSIC, HTBI, ICE, IDTI, IGLD, JAXB, JJSF, JRVR, KEP, KRNY, LANC, LKOR, LMT, MCRI, MKC.V, MNRO, MPWR, MSFT, MTN, MYGN, NAVG, NBTB, NCI, NOC, NWBI, OA, ORIT, OZRK, PRA, PSA, PSCU, QCRH, QTS, RITT, RIVR, SAP, SFBS, SHBI, SHOR, SIRI, SKYW, SPG, SSS, STL, SUI, SYBT, TOWN, TRV, TSS, TTWO, UBOH, UQM, VTN, WCN, WGL, XLNX, YDKN

Stocks that traded to 52 week lows: AAVL, AHGP, AI, AIMT, AIQ, APAM, APOL, ARCI, ASCMA, ATI, ATLS, AVH, BDR, BSM, CAB, CAI, CDI, CDRB, CEN, CENX, CGI, CHMI, CMI, CMLS, CNNX, CNX, CPLA, CROX, CRR, CSTM, CTIC, CUR, DDD, DECK, DEST, DOM, DSW, DWSN, EAC, EAT, ECHO, ELGX, ENTL, ENZN, ERA, ERF, EVEP, EVH, EVRI, EXP, FCH, FMSA, FOGO, FOSL, FRGI, FUEL, GI, GNRT, GOGL, GRUB, GYRO, HART, HBIO, HCLP, HDP, HEB, HNH, HOTR, HWAY, IPI, KIQ, KODK, KSU, KYN, LGCY, LIQD, LNG, LNTH, LORL, LPSN, LPTN, MBUU, MCEP, MDSO, MDVX, MHR, MIL, MPET, MPLX, MRVL, MSL, MSM, MWE, NC, NETE, NGL, NM, NNBR, NRG, NRP, NRZ, NSM, NSPR, NTG, NXTD, OCIP, ODFL, OLLI, ORIG, ORN, PAGP, PCAR, PEIX, PERF, PHH, PHII, PMT, PRTY, PSG, PSO, PTCT, PXLW, R, RCAP, RCII, RCKY, RDN, RIBT, RICE, RLGT, RLJ, RLOC, RMCF, ROYT, RPRX, RRC, RRTS, RT, SAIA, SAVE, SBLK, SCON, SCSS, SKUL, SMRT, SQI, SSE, SSI, STWD, SVU, SWN, SXC, SYRX, TANH, TCS, TDW, TLN, TNDM, TOR, TRMR, TWER, TWIN, UPL, USAP, VDTH, VICL, VOXX, VSI, WAC, WAYN, WDC, WLB, WMT, WSCI, ZFGN

ETFs that traded to 52 week highs: none

ETFs that traded to 52 week lows: UHN,

8:03 am Cisco Systems announces its intent to acquire Lancope for $452.5 million in cash and assumed equity awards (CSCO) :

Lancope is a privately held network security company based in Alpharetta, GA. Lancope provides network behavior analytics, threat visibility and security intelligence to help protect companies against top cyber security threats.

The Lancope team will join the Cisco Security Business Group organization led by David Goeckeler, senior vice president and general manager. Under the terms of the agreement, Cisco will pay $452.5 million in cash and assumed equity awards, plus additional retention based incentives for Lancope employees who join Cisco. The acquisition is expected to close in the second quarter of fiscal year 2016

8:02 am IPG Photonics misses by $0.05, beats on revs; guides Q4 EPS below consensus, revs below consensus (IPGP) :

Reports Q3 (Sep) earnings of $1.18 per share, $0.05 worse than the Capital IQ Consensus of $1.23; revenues rose 22.0% year/year to $243.54 mln vs the $240.89 mln Capital IQ Consensus. Co issues downside guidance for Q4, sees EPS of $1.00-1.15 vs. $1.17 Capital IQ Consensus Estimate; sees Q4 revs of $215-230 mln vs. $234.6 mln Capital IQ Consensus Estimate.

[ReturntoSender]

From Briefing.com: The Technology sector (XLK 44.32, +0.05 +0.11%) ended Wednesday on a spike to the upside. The sector traded up and down today, ending in a flurry of buying pressure as the broader market also posted a spike at the close. Other sectors closed XLU +0.52%, XLI -0.27%, XLF -0.29%, XLP -0.42%, XLV -0.44%, XLB -0.59%, XLY -0.65%, IYZ -0.66%, XLE -0.90% with only Utilities joining Tech as outperformers.

Broader market action closed with a spike to the upside, albeit all three major US indices ended below flat lines. The S&P 500 closed with the most noticeable losses, shedding 7.48 points (-0.35%) to 2102.31. The Dow Jones Industrial Average lost 50.57 points (-0.28%) today to close 17867.58. The Nasdaq Composite lost 2.65 points (-0.05%) to 5142.48. Market data today came in the form of ADP National Employment, which revealed the nonfarm private business sector rose by 182,000 in October. Also, the US Trade Deficit narrowed in September to $40.80 billion from an upwardly revised $48.00 billion (from $48.30 billion). Finally, ISM Services index data jumped to 59.1 in October from 56.9 in September.

Notably weaker today were Social Media (SOCL 19.65, -0.09 -0.46%) names. Ahead of Facebook's (FB 103.94, +1.36 +1.33%) quarterly results, the sector traded lower, breaking the two-session winning streak. Other names in the space which underperformed included GRPN -26.30%, UNTD -10.77%, DNACF -4.71%, DMD -3.99%, P -3.36%.

Networking (IGN 38.41, -0.56 -1.44%) names were the worst performing on the session as component Ixia (XXIA 12.94, -1.43 -9.95%) reported a beat on the top and bottom lines of expectations, yet traded significantly lower today. Other names in the space which displayed weakness included MSI -8.58%, COMM -2.89%, JNPR -1.89%, FFIV -1.57%.

From Briefing.com: In the S&P 500 Information Technology space (747.06, +0.69 +0.09%), a spike to the upside rescued the sector from closing below flat lines. The sector spent the majority of the session in the green, and took the spike in technology toward the end of the session in stride to edge higher. Names which held down the sector included XRX -1.03%, QCOM -1.00%, CA -0.90%, WU -0.82%, PYPL -0.79%, AMAT -0.76%, ACN -0.74%, CSCO -0.49%, AAPL -0.47% while outperformers came in the form of EA +3.32%, RHT +2.10%, QRVO +1.88%, FIS +1.66%, AVGO +1.61%, SWKS +1.39%.

Other notable news items among sector components:

Tesla Motors (TSLA 231.63, +23.28 +11.17%) confirmed Jason Wheeler as CFO, Jon McNeill as President of Global Sales and Services. Wheeler joins TSLA after 13 years at Alphabet's (GOOG 728.11, +5.95 +0.82%) Google.

Microsoft (MSFT 54.40, +0.25 +0.46%) announced that Microsoft Software & Systems Academy, which provides IT career training to eligible active-duty U.S. service members, is expanding from three locations to nine and will be servicing 12 military installations.

MSFT also announced that Halo 5 has topped $400 million in sales a week after launching; the franchise now has over $5 billion lifetime sales.

Solera Holdings' (SLH 54.84, +0.18 +0.33%) subsidiary Hollander, signed a five-year extension of its business partnership with eBay (EBAY 29.30, +0.40 +1.38%) in North America through 2020.

Elsewhere in the technology space:

FARO Techs (FARO 24.34, -10.91 -30.95%) in addition to reporting quarterly results, announced that President and CEO Jay Freeland plans to step down from his role; a subcommittee has been formed to search for a successor.

Checkpoint Systems (CKP 5.97, -1.72 -22.37%) in addition to reporting quarterly results, discovered financial statement errors attributable to the accounting for its quarterly income tax provision. The company said various previous financial statements should no longer be relied upon.

Fleetmatics (FLTX 57.90, +4.05 +7.52%) acquired SAAS fleet management solutions firm Visirun S.p.A. Terms of the deal were not disclosed.

NIC Inc (EGOV 19.05, +0.03 +0.16%) declared a special cash dividend of $0.55 per share payable on January 4 to stockholders of record as of the close of business on November 13.

OmniVision (OVTI 28.77, +0.12 +0.42%) elected to extend the termination date specified in its Merger Agreement until January 31, 2016.

Everi (EVRI 4.57, -0.42 -8.42%) commenced the exchange offer up to $350 million in aggregate principal amount of 10.00% Senior Unsecured Notes due 2022.

xG Technology (XGTI 0.66, +0.01 +2.29%) entered into a Settlement Agreement and Mutual Release with certain holders of its pre-funded Series B Warrants to purchase common stock.

Intricon (IIN 7.93, -0.02 -0.25%) acquired assets of PC Werth. Per the deal, the company expects $4.5 to $5.5 million in annual revenue generation and accretion to EPS.

Ericsson (ERIC 9.96, +0.03 +0.30%) announced that it has signed a multi-year news captioning contract with ANC, Australia's leading 24-hour multi-channel, multi- platform news service provider. Ericsson will provide live captioning services for SKY NEWS LIVE and SKY NEWS BUSINESS, which are broadcast to 2.8 million subscribing homes across Australia on subscription television provider Foxtel.

Sierra Wireless (SWIR 25.23, -0.16 -0.63%) announced that Itron has selected AirPrime HL Series modules to enable cellular connectivity in its latest line of smart gas meters. The point-to-point residential meters will begin shipping later this quarter to support smart metering initiatives across Europe, beginning with a deployment in Italy.

Attunity (ATTU 12.76, -0.14 -1.09%) announced the extension of its OEM distribution agreement with Microsoft (MSFT).

Booz Allen Hamilton (BAH 29.00, -0.86 -2.88%) announced a secondary offering of 13 million shares of Class A common stock by an affiliate of The Carlyle Group (CG 20.55, +0.13 +0.64%).

Proofpoint (PFPT 71.56, +0.73 +1.03%) acquired social media compliance firm Socialware for $9 million in cash.

Relm Wireless (RWC 4.54, +0.11 +2.48%) received an $860K purchase order from Alberta Health Services for P25 800MHz portable radios and accessories.

GSI Group (GSIG 13.30, +0.13 +0.99%) to acquire the assets of Lincoln Laser Company for $11 million.

United Online (UNTD 10.27, -1.24 -10.77%) announced President and CEO Francis Lobo will resign effective November 18.

RigNet (RNET 31.16, -0.30 -0.95%) to acquire TECNOR. Financial terms of the deal were not disclosed.

GigaMedia (GIGM 0.53, +0.01 +1.72%) to seek shareholder approval to effect a reverse stock split, anticipated at a ratio of 1-5.

In reaction to quarterly results:

MaxLinear (MXL 16.79, +3.66 +27.88%) reported Q3 EPS which beat expectations at $0.40 on revenues which were mostly in-line at $95.2 million. The company guided Q4 revenues better than expected at $95-100 million.

Five9 (FIVN 5.54, +0.95 +20.70%) reported Q3 loss per share and revenues which were better than anticipated. EPS came in ($0.08), while revenues were $32.29 million. Also, FIVN guided for Q4 EPS better than expected of ($0.09)-($0.07) on revenues which were guided in-line at $32.5-33.5 million.

Paycom Software (PAYC 45.73, +6.58 +16.81%) reported Q3 EPS and revenues which were better than expected. EPS for the period was $0.08 on revenues of $55.3 million. PAYC guided for Q4 revenues better than expected at $59.5-61.5 million.

WebMD Health (WBMD) beat the top and bottom lines of expectations for Q3; the company reported EPS of $0.32 on revenues of $152.6 million. WBMD guided Q4 revenues in-line with expectations at $181-191 million.

FARO Techs (FARO) reported mixed Q3 results with EPS coming in above expectations at $0.38 on revenues which were worse than expected at $72.51 million. The company also added $20 million to the buyback authorization and announced plans to reduce the workforce by 8%.

Wi-LAN (WILN 1.39, -0.52 -27.23%) reported EPS in-line and a miss on revenues for the Q3 period. GAAP EPS for Q3 was $0.01 on revenues of $21.44 million. The company also announced the restructuring of 30% of the workforce and plans to spin out the R&D unit. The company also announced the postponement of the CEO's retirement.

Checkpoint Systems (CKP) reported Q3 EPS and revenues which missed expectations on EPS of $0.07 with revenues of $145.9 million. The company also lowered FY15 revenues guidance to in-line at $575-600 million.

Zillow (ZG) reported Q3 EPS of $0.07 on revenues of $176.8 million.

Analyst actions:

WBMD was upgraded to Buy from Hold at Stifel,
GTT was upgraded to Buy from Hold at Drexel Hamilton,
GIB was upgraded to Buy from Hold at Desjardins,
PERI was upgraded to Buy from Neutral at Chardan Capital;
SWI was downgraded to Mkt Perform from Outperform at FBR Capital,
HPQ was downgraded to Neutral from Overweight at JP Morgan,
FARO was downgraded to Perform from Outperform at Oppenheimer,
OIIM was downgraded to Market Perform from Outperform at Northland Capital

4:47 pm Microchip beats by $0.03, beats on revs; guides Q3 EPS in-line, revs in-line (MCHP) :

Reports Q2 (Sep) earnings of $0.66 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.63; revenues rose 2.4% year/year to $559.4 mln vs the $552.58 mln Capital IQ Consensus. On a non-GAAP basis: gross margins of 57.9% Co raised guidance on Sept 8: EPS to $0.60-0.66 from $0.58-0.66; rev to $545-563 mln from $532-569 mlnCo issues in-line guidance for Q3, sees EPS of $0.58-0.64 vs. $0.63 Capital IQ Consensus Estimate; sees Q3 revs of $539.7-563.5 vs. $559.76 mln Capital IQ Consensus Estimate.

4:12 pm Axcelis Tech beats by $0.01, beats on revs; guides Q4 EPS below consensus, revs below consensus (ACLS) :

Reports Q3 (Sep) earnings of $0.05 per share, $0.01 better than the Capital IQ Consensus of $0.04; revenues rose 105.9% year/year to $79.32 mln vs the $78.13 mln Capital IQ Consensus. Co issues downside guidance for Q4, sees EPS of breakeven vs. $0.03 Capital IQ Consensus Estimate; sees Q4 revs of $60-65 mln vs. $71.01 mln Capital IQ Consensus Estimate. Gross margin in the fourth quarter is expected to be approximately 33-34%. Fourth quarter operating profit is forecasted to be approximately $1 million with breakeven earnings per share. Cash and cash equivalents at the end of the fourth quarter are expected to be approximately $80 million.

4:12 pm Coherent beats by $0.26, reports revs in-line (COHR) :

Reports Q4 (Sep) earnings of $1.25 per share, $0.26 better than the Capital IQ Consensus of $0.99; revenues rose 2.1% year/year to $209.6 mln vs the $208.73 mln Capital IQ Consensus.

4:08 pm Qualcomm beats by $0.05, beats on revs; guides Q1 EPS below consensus, revs in-line (QCOM) :

Reports Q4 (Sep) earnings of $0.91 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $0.86; revenues fell 18.5% year/year to $5.46 bln vs the $5.21 bln Capital IQ Consensus. Co issues guidance for Q1, sees EPS of $0.80-0.90, excluding non-recurring items, vs. $1.08 Capital IQ Consensus Estimate; sees Q1 revs of $5.2-6.0 bln vs. $5.74 bln Capital IQ Consensus Estimate. Sees MSM chip shipments down 9-17% YoY.4:05 pm : The stock market snapped its two-day streak on Wednesday, but the midweek pullback was fairly modest in scope. The S&P 500 shed 0.4% while the Nasdaq Composite (-0.1%) outperformed, settling just below its flat line.

Equity indices began the day on a modestly higher note, but the slight early strength faded quickly, sending the major averages into the red during the opening hour. In addition, investors heard from Fed Chair Janet Yellen who addressed the House Financial Services Committee to discuss regulation and supervision of financial institutions; however, the Q&A portion drifted towards questions about the upcoming December policy meeting with Fed Chair Yellen reiterating that a rate hike could happen in December if economic data shows improvement.

Eight sectors ended the day in negative territory with energy (-1.0%) spending the bulk of the session behind the remaining nine groups. It is worth noting that today's slide followed a 5.0% gain over the past two days and the sector also had to contend with selling in the commodity market where crude oil fell 3.4%, ending the pit session at $46.32/bbl.

Unlike energy, the remaining decliners posted slimmer losses than 0.7%, but relative weakness among the likes of consumer discretionary (-0.6%) and health care (-0.5%) kept the market in negative territory until the close.

The discretionary sector underperformed with apparel retailers ending mostly lower, which overshadowed a better than expected earnings report from Michael Kors (KORS 42.58, +3.26). Shares of KORS spiked 8.3% after better than expected results and upbeat fiscal-year 2016 guidance overshadowed a cautious outlook for Q3. Elsewhere in the sector, media names also lagged even though CBS (CBS 47.96, -0.28) and Time Warner (TWX 72.19, -5.11) reported better than expected results.

On the upside, the technology sector (+0.1%) outperformed, spending the trading day in the neighborhood of its flat line, which prevented a larger pullback from taking shape. Large cap components ended the day on a mixed note while chipmakers outperformed with the PHLX Semiconductor Index climbing 0.3%.

Similar to stocks, Treasuries retreated with the 10-yr yield rising two basis points to 2.23%.

Today's participation was ahead of average as more than 900 million shares changed hands at the NYSE floor.

Economic data included ADP Employment, Trade Balance, and ISM Services:

The ADP National Employment Report revealed that employment in the nonfarm private business sector rose by 182,000 in October while the Briefing.com consensus expected a reading of 180,000
The September reading was revised down to 190,000 from 200,000
The U.S. trade deficit narrowed in September to $40.80 billion from an upwardly revised $48.00 billion (from -$48.30 bln) in August while the Briefing.com consensus expected a reading of $43.00 billion
Notably, the September trade deficit was not that far off from the BEA's estimate of -$40.60 billion that was embedded in the advance Q3 GDP report. Accordingly, revisions to net exports shouldn't have much bearing on the second estimate for Q3 GDP
The improvement in September was owed to imports being $4.20 billion less than August imports and exports being $3.00 billion more than August exports
The ISM Services index jumped to 59.1 in October from 56.9 in September while the Briefing.com consensus expected a reading of 56.6
The October reading was the second-highest mark this year, preceded only by the 60.3 reading in July, which was the highest level since August 2005

Tomorrow, weekly Initial Claims (Briefing.com consensus 262,000) and preliminary Q3 Productivity/Unit Labor Cost data will be reported at 8:30 ET.

Nasdaq Composite +8.6% YTD
S&P 500 +2.1% YTD
Dow Jones Industrial Average +0.3% YTD
Russell 2000 -1.1% YTD

11:52 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (110) outpacing new lows (53) (SCANX) : Stocks that traded to 52 week highs: ADBE, AEGN, AIZ, AMRK, AMZN, ANSS, ATHN, ATO, AVD, AZZ, BABY, BGSF, BNCN, BOCH, BSFT, BSQR, BYD, CACI, CDW, CHMT, CIA, CMN, CNCE, CONE, CPS, CTRP, DEI, DHR, DRAD, DY, EVC, FFG, FLTX, FMX, GOOGL, HA, HSIC, IM, INGR, IOSP, IRMD, JCOM, JNPR, LANC, LB, LDL, LDOS, LII, LMCA, LOXO, LXFT, MANH, MAS, MBTF, MCRI, MENT, MGM, MNP, MSFT, MTN, MXL, MYGN, NBBC, NEWR, NFX, NOW, NP, NTGR, NTI, NVX, NXTM, NYRT, OCFC, OCLR, OFLX, OLBK, ONFC, PAC, PAYC, PCLN, PEGA, PFGC, PFPT, PNQI, POOL, PPBI, PSX, QQQ, RDI, RH, RHT, RNG, ROCK, RTEC, SBGI, SHEN, SOCB, STE, SVBI, TCBK, TSO, TTS, VG, VRTU, WD, WFBI, WST, WTR, XIN, YDKN

Stocks that traded to 52 week lows: BEP, BGG, BLMN, BRFS, CKP, CLH, COSI, DAKP, DAVE, DDD, DSW, DXYN, EMMS, ENPH, ESCR, ETSY, EYEG, FARO, FDEU, FREE, GNK, GOGL, GRPN, HF, HSNI, IPHS, KVHI, LLEX, LSBG, MCUR, NM, NTK, OIIM, OPGN, PAGP, PCTI, PHI, QUAD, RDN, REGI, RLOC, RTIX, SALT, SBLK, SEMG, SNH, SQQQ, STKS, TGH, THR, TST, UCP, WILN

ETFs that traded to 52 week highs: IGV, QQQ, XLK, XLY

ETFs that traded to 52 week lows: COW

7:11 am Motorola Solutions beats by $0.09, reports revs in-line; guides Q4 EPS below consensus, revs below consensus (MSI) :

Reports Q3 (Sep) earnings of $0.82 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus of $0.73; revenues fell 1.0% year/year to $1.42 bln vs the $1.41 bln Capital IQ Consensus. Co issues downside guidance for Q4, sees EPS of $1.45-1.50, excluding non-recurring items, vs. $1.58 Capital IQ Consensus Estimate; sees Q4 revs declining 6-8% YoY, which calculates to $1.68-1.71 bln vs. $1.81 bln Capital IQ Consensus Estimate.

[ReturntoSender]

From Briefing.com: The broader market ended the abbreviated session split. The Nasdaq Composite closed with the best gains today, adding 11.38 points (+0.22%) to end 5127.52. The S&P 500 ended modestly higher, up 1.26 points (+0.06%) to 2090.12. The Dow Jones Industrial Average was lower, however, shedding 14.90 points (-0.08%) to 17798.49. There was no market data reported today.

The Technology (XLK 43.91, +0.10 +0.23%) sector closed modestly higher today. Action only dipped into the red briefly around 10 a.m. ET, but ultimately finished higher as AVGO +1.29%, FTR +1.22%, MCHP +1.15%, BRCM +0.98%, AMAT +0.92%, TEL +0.84%, NVDA +0.84%, WIN +0.81%, VZ +0.69% outperformed. Other sectors ended with muted action, closing XLP +0.38%, IYZ +0.37%, XLF +0.24%, XLV +0.19%, XLU +0.19%, XLI +0.17%, XLB -0.13%, XLY -0.37%, XLE -0.72%.

Chinese tech names were in play today as news came out in the overnight session highlighting the nearly 5.5% loss in the Shanghai Composite. The decline was exacerbated by the news that certain brokerages in the country would be investigated for alleged violations of trading rules, in addition to reports that industrial profits declined 4.6% in October. In relation, the QQQC -3.4% and the CQQQ -2.3% displayed relative weakness today with components LNVGY -5.8%, WB -3.5%, NTES -3.2%, SINA -2.9%, NQ -1.0% ending particularly lower.

The S&P 500 Information Technology sector (738.30, +1.02 +0.14%) ended modestly higher as technology was held in a tight range on the day with limited volume. Modest gains today in blue chip names like CTXS +0.64%, MA +0.52%, TXN +0.49%, XLNX +0.45%, MSFT +0.45%, ADBE +0.44%, XRX +0.38%, GOOGL +0.35%, V +0.35% helped the sector finish above flat lines.

The news wires were relatively slow today, as Retail (XRT 45.56, -0.06 -0.13%) was in focus on the abbreviated Black Friday session. Names like Fitbit (FIT 27.84, -0.15 -0.54%), Apple (AAPL 117.81, -0.22 -0.19%) and GoPro (GPRO 20.28, +0.28 +1.40%) were in play as consumers rushed to get the majority of the deals and Christmas shopping done.

In addition to some consumer-related technology names seeing some action today, Semi (SOX) names were again among those with the majority of gains as names like SUNE +3.38%, MRVL +2.76%, ON +2.58%, SWKS +1.98% ASML +1.67%, ATML +1.53%, AVGO +1.29%, MCHP +1.15%, ARMH +1.00%, BRCM +0.98%, AMAT +0.92%, MXIM +0.85% outperformed the broader market. The only news in the sector today came in the form of the FTC approval of NXP Semi's (NXPI 88.36, +3.88 +4.59%) merger with Fairchild Semi (FCS 19.54 +0.07 +0.36%).

Quarterly earnings expected this coming week:

BLOX, NQ, TCPI, APIC, GWRE, QIHU, SAIC, BV, AVGO, BOX, MTSC, PLAB, SNPS, VRNT, VMEM, AMBA, EXA, MRVL, OVTI, SEAC

Weekly Recap - Week ending 27-Nov-15

The stock market meandered in a narrow range through the abbreviated Friday session, ending the day and the week on a flat note. The S&P 500 added 0.1% today, ending the week higher by two points (+0.1%).

Unsurprisingly, the Friday session was very quiet with trading volume running well below average. To that point, only 378 million shares changed hands at the NYSE floor. The lack of activity in the U.S. masked a relatively busy overnight session that featured a 5.5% dive in China's Shanghai Composite after regulators expanded their investigation into major securities brokers, including Citic Securities.

Once the focus shifted to the Wall Street session, equities ticked lower due to relative weakness in consumer discretionary (-0.4%) and energy (-0.7%), but gains in the remaining sectors offset the softness in the two cyclical groups.

Media names kept the discretionary sector under pressure with Dow component Disney (DIS 115.13, -3.54) falling 3.0% to mid-November levels. Meanwhile, the energy sector retreated as crude oil fell 2.5% to $41.97/bbl.

On the upside, the consumer staples sector (+0.4%) held the lead throughout the session while top-weighted technology (+0.2%) and financials (+0.2%) also finished ahead of the broader market. Chipmakers underpinned the tech sector after NXP Semiconductor (NXPI 88.36, +3.82) received clearance from the Federal Trade Commission to continue its acquisition of Freescale Semiconductor (FSL 37.35, +1.45). The two names surged 4.6% and 4.0%, respectively, while the PHLX Semiconductor Index spiked 0.7%.

Treasuries held gains during overnight action, but they returned to little changed intraday with the 10-yr yield at 2.23%.

Investors did not receive any economic data today; however, Monday will include a couple releases with November Chicago PMI (Briefing.com consensus 55.0) and October Pending Home Sales (consensus 0.7%) set to be reported at 9:45 ET and 10:00 ET, respectively.


Week in Review: Stocks Hold Ground

The stock market began the trading week on a cautious note with the S&P 500 shedding 0.1%. The benchmark index surrendered its opening gain, ending in the middle of its trading range while the Dow (-0.2%) and Nasdaq (-0.1%) registered comparable losses. Equities climbed at the start with the early move supported by three sectors in particular. The energy sector (+0.7%) displayed some early volatility, but ended among the leaders even though crude oil slipped 0.3% to $41.78/bbl after making a brief appearance above $42.50/bbl. WTI crude briefly spiked in the morning after Saudi officials indicated their intent to stabilize the global energy market, but the energy component was back near its flat line in short order. Elsewhere among cyclical sectors, consumer discretionary (+0.4%) and materials (+0.1%) also settled ahead of the broader market. The discretionary sector benefitted from strength among retailers with SPDR S&P Retail ETF (XRT 44.58, +0.42) climbing 1.0%.

Tuesday ended on a flat note with stocks overcoming an opening retreat that was fueled by a military incident, which is likely to invite geopolitical implications going forward. The S&P 500 added 0.1% while the Nasdaq Composite (unch) underperformed. Early in the morning, it was reported that the Turkish military shot down a Russian fighter jet, which allegedly violated Turkish airspace on the country's border with Syria. This marked the first time that a NATO member downed a Russian plane since the 1950s. After initial confusion, Russian military officials said that one pilot was rescued while the other was killed by Syrian opposition fighters after ejecting from the plane. The Russian defense ministry called the incident a "hostile act" while President Vladimir Putin terminated all Russian military cooperation with Turkey. Mr. Putin denied the incursion into Turkey, saying the action represented "backstabbing by accomplices of terrorists" and that it "goes beyond [the] fight against terror." The news was met with a spike in Treasuries and the 10-yr note then notched a new high shortly after the release of the second estimate of Q3 GDP (+2.1%; Briefing.com consensus +2.0%); however, the 10-yr note spent the rest of the day in a slow retreat from morning highs to end with a small gain that lowered the benchmark yield one basis point to 2.24%.

The stock market ended Wednesday on a flat note with trading volume running well below average as some market participants got an early jump on the Thanksgiving holiday. The S&P 500 settled just below its flat line while the Nasdaq Composite (+0.3%) outperformed. Investors received a boatload of economic data in the morning, but there was little response in the market as stocks opened flat and inched higher to establish narrow trading ranges that held throughout the day. For instance, the S&P 500 spent the session in a seven-point range with seven sectors offsetting gains in three groups that outperformed throughout the day. Heavily-weighted health care (+0.5%) and consumer discretionary (+0.5%) seized the lead in the early going and held their ground into the close. The health care sector received support from biotechnology, evidenced by a 1.1% spike in iShares Nasdaq Biotechnology ETF (IBB 338.85, +3.58).

Bond and equity markets were closed on Thursday for Thanksgiving.
Index Started Week Ended Week Change % Change YTD %
DJIA 17823.81 17798.49 -25.32 -0.1 -0.1
Nasdaq 5104.92 5127.52 22.60 0.4 8.3
S&P 500 2089.17 2090.11 0.94 0.0 1.5
Russell 2000 1175.13 1202.38 27.25 2.3 -0.2

11:28 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (124) outpacing new lows (67) (SCANX) : Stocks that traded to 52 week highs: AAON, ACAS, AFG, AFH, ALKS, AMWD, AOS, ATHN, AYI, AZZ, BABY, BGS, BKCC, BUD, CASY, CBSH, CLI, CMN, CNCR, CORE, CPB, CPS, CRAY, CTMX, CUBE, CVT, DEA, DEG, DHIL, EFUT, EFX, EGBN, EME, ESE, EW, EXLS, EXR, EXTR, FBC, FBHS, FBR, FCF, FDEF, FFG, FLIC, FMBI, FR, FRBK, FSB, GFF, GT, GTS, GVA, GVP, HD, HELE, HOFT, HRL, IDTI, IIIN, INST, INWK, IT, JBL, LAD, MAA, MATW, MDWD, METR, MGPI, MLVF, MNST, MORE, MPWR, MRCY, MTN, NBIX, NCTY, NKE, NOW, NSA, NVR, OMI, PACB, PBF, PBH, PCL, PEN, PLAB, PSA, QCRH, RNG, SBBX, SBNY, SFL, SHBI, SHOR, SMBC, SMG, SNBC, SOCB, SRI, STBZ, STL, STZ, TCBK, THFF, TI.A, TLMR, TOWN, TSN, TTC, TTEK, TTS, UDR, UFPI, VGR, VTN, WDFC, WFD, WK, WST, WTBA, XRS

Stocks that traded to 52 week lows: ABGB, ARDM, ASM, ATI, AVNW, BBL, BCA, BCV, BDCV, BHP, BPT, BSPM, BTU, CEF, CFNB, CHCI, CNXR, CPST, CSUN, CVGI, DAVE, DSE, DSX, DTRM, EQT, ESBK, ESEA, ESMC, EVRI, FDEU, FES, FTGC, GER, GLPI, GNOW, HNP, I, ISHG, KMF, NADL, NBG, NCQ, NFG, NS, NSPH, PQ, PSTG, ROSG, ROYL, SJT, SKUL, SMT, TAT, TC, TCK, TGA, TLN, TLP, UPL, URRE, UUUU, VALE, VALE.P, VRNG, WPZ, WRES, XBIT

ETFs that traded to 52 week highs: PSK

ETFs that traded to 52 week lows: AFK, EPOL, FXF, GLD, IAU, KOL, SIVR, UNG

[ReturntoSender]

From Briefing.com: The broader market closed out the week on a Friday session which saw all three major US indices gaining more than 2.0%. Leading the way higher, the Dow Jones Industrial Average was up 369.96 points (+2.12%) to 1847.63. The Nasdaq Composite added 104.74 points (+2.08%) to 5142.27. The S&P 500 closed higher by 42.07 points (+2.05%) to 2091.69. Today's move took the Dow Jones into positive territory for the year, as all three now stand positive YTD -- Nasdaq +8.6%, S&P +1.6%, Dow +0.1%.

There were a few economic data items today, as Nonfarm Payrolls and Trade Balance came across the wires. Nonfarm payrolls increased by 211,000 while October nonfarm payrolls were revised to 298,000 from 271,000. Private sector payrolls increased by 197,000 and the unemployment rate was 5.0%. The US trade deficit widened to $43.90 billion from an upwardly revised $42.50 billion (from about $40.80 billion) in September.

Technology (XLK 44.57, +1.07 +2.46%) components also closed near session highs, with action never touching negative territory. Bellwether name Apple (AAPL 119.03, +3.83 +3.32%) displayed strength on the heels of reports that the Samsung Elect (SSNLF 1100) has agreed to pay the company $548 million in relation to one of the patent disputes between the two parties. Other sectors closed as follows XLF +2.65%, XLV +2.35%, XLP +2.25%, XLY +1.93%, XLB +1.75%, XLI +1.49%, XLU +1.41%, IYZ +0.85%, XLE -0.63% with only Energy closing lower as January Crude Oil Futures fell $1.09 (-2.6%) to $40.00/barrel.

Software (IGV 106.55, +2.48 +2.38%) names posted strength today as action was dictated by the broader market surge. Component Infoblox (BLOX 18.98, +0.73 +4.00%) was among the best outperformers as the company announced a stock buyback program this morning.

The S&P 500 Information Technology (750.26, +17.74 +2.42%) sector was among the best performing sectors in the S&P 500 today, driven by outperforming components. Shares of component Electronic Arts (EA 70.38, +3.16 +4.70%) were notably strong today as the shares were upgraded to an Overweight rating at Atlantic Equities.

Other notable news items among sector components:

Motorola Solutions (MSI 72.11, +1.03 +1.45%) agreed to acquire Airwave for about $1.2 billion. The company expects transaction to be immediately accretive to non-GAAP earnings and free cash flow.

Analog Devices (ADI 59.21, +0.16 +0.27%) announced and priced an offering of $850 million of 3.90% senior unsecured notes due December 15, 2025 and $400 million of 5.30% senior unsecured notes due December 15, 2045.

Digital Realty Trust (DLR 72.93, +1.42 +1.99%) introduced Direct Link Colo, a solution that connects customers in Digital Realty data centers directly to IBM (IBM 140.43, +1.51 +1.09%) Cloud via SoftLayer's global cloud infrastructure platform.

Elsewhere in the technology space:

Vodafone (VOD 32.88, +0.24 +0.74%) placed 600 million non-dilutive zero coupon equity-linked bonds due 2020.

Toshiba (TOSBF 2.45, -0.08 -2.97%) signed a definitive agreement to transfer certain Toshiba-owned semiconductor fabrication facilities, equipment and related assets in its Oita Operations facility to Sony (SNE25.39, +0.14 +0.55%) for JPY 19 billion.

Infoblox (BLOX 18.98, +0.74 +4.06%) entered into a $50 million accelerated stock buyback agreement.

China Information Tech's (CNIT 1.22, -0.02 -1.61%) Chief Technology Officer, Zhiyao Yu, has resigned.

TASER (TASR 17.77, -0.07 -0.39%) received an order for up to 3,148 Axon Body 2 cameras and up to a three-year subscription to Evidence.com by the Greater Manchester Police.

In reaction to quarterly results:

Ambarella (AMBA 56.93, -0.95 -1.64%) reported better than expected Q3 EPS and revenues of $1.08 and $93.2 million, respectively. The company also issued downside guidance for the Q4 period, as they see revenues in the range of $65-67.5 million.

SeaChange (SEAC 6.77, +0.21 +3.20%) reported a beat on Q3 EPS of $0.01 and in-line revenues of $28.7 million. The company also guided Q4 EPS and revenues in-line at ($0.02)-$0.03 and $28-32 million, respectively.

OmniVision (OVTI 29.19, -0.17 -0.58%) reported Q2 EPS and revenues which beat expectations. EPS was $0.37 per share and revenues fell 12.9% YoY to $343.1 million, albeit beating expectations.

Companies scheduled to report quarterly results next week: HQY, QIHU, SIGM, CMTL, CIEN, MEI, ADBE, FNSR

Analyst actions:

EA was upgraded to Overweight from Neutral at Atlantic Equities,
EMC was upgraded to Outperform from Underperform at Credit Agricole,
SGPYY was upgraded to Overweight from Neutral at JP Morgan;
GPRO was downgraded to Neutral from Outperform at Robert W. Baird,
ADI was downgraded to Equal Weight from Overweight at Barclays,
CCIH was downgraded to Neutral from Buy at Rosenblatt,
AIXG was downgraded to Sell from Underperform at Credit Agricole,
SYMC was downgraded to Hold from Buy at Argus

Weekly Recap - Week ending 04-Dec-15The stock market enjoyed a broad rally on Friday that lifted the S&P 500 (+2.1%) back above its 200-day moving average (2,065). The daylong surge helped the benchmark index turn this week's loss into a slim gain of 0.1%.

Equities charged out of the gate and doubled their gains during afternoon action even though the November Employment Situation report came in ahead of expectations (211,000; Briefing.com consensus 196,000), which is unlikely to get in the way of the Federal Reserve's rate hike plans.

Interestingly, Treasuries stumbled immediately after the release of today's data, but they followed that move with a charge to new session highs. The 10-yr note ended near its best level of the session, pressuring its yield four basis points to 2.27%. Meanwhile, the Dollar Index (98.35, +0.43) climbed 0.4%, erasing a portion of its 2.3% loss from yesterday.

Nine of ten sectors ended the day in the green while energy (-0.6%) spent the day in negative territory with crude oil contributing to the weakness. WTI crude settled near its low, surrendering 2.4% to $40.08/bbl. The energy component fell from the $41.50/bbl level this morning in reaction to reports that OPEC has agreed to increase its daily production target to 31.5 million barrels from 30.0 million; however, the official OPEC statement released in the late morning did not specify a production target. For the week, crude oil lost 3.9% while the energy sector fell 4.6%.

On the flip side, nine groups posted gains with eight adding 1.4% or more. Top-weighted sectors traded comfortably ahead of their peers with technology (+2.5%), financials (+2.7%), and health care (+2.4%) holding the lead into the close. The technology sector rallied thanks to relative strength in large cap names like Apple (AAPL 119.03, +3.83), Alphabet (GOOGL 779.21, +11.01), and Microsoft (MSFT 55.91, +1.71) while high-beta chipmakers underperformed intraday, but the PHLX Semiconductor Index rallied into the close to end the day higher by 1.9%.

Elsewhere among cyclical sectors, the industrial space (+1.5%) spent the day behind the broader market due to relative weakness among transport stocks. The Dow Jones Transportation Average climbed 0.8%, but railroad names struggled with Norfolk Southern (NSC 92.06, -1.05) falling 1.1% after rejecting an unsolicited offer from Canadian Pacific (CP 134.49, -6.42).

Today's daylong charge invited above-average participation with nearly a billion shares changing hands at the NYSE floor.

Economic data included Nonfarm Payrolls and Trade Balance:

Nonfarm payrolls increased by 211,000 (Briefing.com consensus 196,000)
October nonfarm payrolls revised to 298,000 from 271,000
Private sector payrolls increased by 197,000 (Briefing.com consensus 185,000)
October private sector payrolls revised to 304,000 from 268,000
Unemployment rate was 5.0% (Briefing.com consensus 5.0%) versus 5.0% in October
The U6 unemployment rate, which accounts for the total unemployed plus persons marginally attached to the labor force and the underemployed, was 9.9% versus 9.8% in October
Average hourly earnings increased 0.2% (Briefing.com consensus 0.2%) after increasing 0.4% in October
The average workweek was 34.5 hours (Briefing.com consensus 34.5) versus 34.6 hours in October
The labor force participation rate was 62.5% versus 62.4% in October
The US trade deficit widened to $43.90 billion from an upwardly revised $42.50 billion (from -$40.80 billion) in September while the Briefing.com consensus expected the trade deficit to be $43.0 billion
October exports were $184.10 billion, which was $2.70 billion less than September exports. October imports were $228.00 billion, which was $1.30 billion less than September imports

Monday's data will be limited to the 15:00 ET release of the October Consumer Credit report.

Week in Review: Stocks Wobble

The stock market began the trading week on a modestly lower note with the S&P 500 surrendering 0.5% after spending the day in a 13-point range. The Monday session marked the end of November, a month during which the S&P 500 added 0.1% while the Nasdaq Composite (+1.1%) outperformed. Equities held slim gains at the start of the trading day, but the early strength faded quickly, sending the S&P 500 below its flat line where the index remained into the afternoon. The S&P 500 tried to stage a rebound during afternoon action, but that move was followed by a slip to new lows. The benchmark index settled near its worst level of the day, masking gains in five of ten sectors. For instance, energy (+0.4%) and technology (+0.1%) outperformed from the start, but their strength could not lift the overall market. The energy sector settled in the lead even though crude oil surrendered a solid intraday gain to end lower by 0.2% at $41.63/bbl. For the month, WTI crude tumbled 10.7% while the energy sector lost 0.8%.

On Tuesday, the stock market began December on an upbeat note with the S&P 500 climbing 1.1% while the Nasdaq Composite (+0.9%) settled just behind. All in all, the session was very quiet as the S&P 500 marked its high during the opening hour and inched above that level during afternoon action. The index briefly slipped from the morning high after economic data showed that the ISM Index (48.6; Briefing.com consensus 50.4) registered its first contractionary reading (below 50) in 36 months. The disappointing report was met with a spike in Treasuries that sent the 10-yr note to a fresh high. The benchmark instrument settled on its best level of the day, pressuring its yield six basis points to 2.15%. All ten sectors posted gains with heavily-weighted groups like health care (+1.7%), technology (+1.1%), consumer discretionary (+1.0%), and financials (+1.3%) ending in the lead.

The market ended the midweek session on a broadly lower note with the S&P 500 sliding 1.1% while the Nasdaq (-0.6%) settled a bit ahead. Equity indices spent the first 90 minutes of the session near their flat lines, but the energy sector (-3.1%) struggled from the start and accelerated its retreat into the afternoon, which dragged down the entire market. Meanwhile, the remaining groups held up relatively well at the start, but they could not resist the pressure, which intensified as the session wore on. Interestingly, the selling in the market accelerated shortly after Fed Chair Janet Yellen concluded her speech at the Economic Club of Washington with the remarks being perceived as a sign that the Fed is ready to raise rates at the December policy meeting.

Equities ended Thursday on a woeful note after global investors reduced their equity exposure in reaction to an underwhelming policy statement from the European Central Bank. The S&P 500 lost 1.4%, falling below its 200-day moving average (2,065), while the Nasdaq Composite (-1.7%) underperformed. The key indices held slim gains at the open, but that proved to be a mirage as the market marched lower throughout the day after the European Central Bank made a slight adjustment to its interest rate corridor (deposit facility rate down to -0.3% from -0.2%, marginal lending facility unch at +0.3%, and main refinancing rate unch at +0.05%), but did not increase the size of its asset purchases, thus disappointing a global equity complex that was hungry for more stimulus. The euro responded by having its best day of the year, soaring nearly 450 pips off its intraday low against the dollar to 1.0950. In turn, the Dollar Index (97.79, -2.25) plunged 2.3% to early November levels.

Index Started Week Ended Week Change % Change YTD %
DJIA 17798.49 17847.63 49.14 0.3 0.1
Nasdaq 5127.52 5142.27 14.75 0.3 8.6
S&P 500 2090.11 2091.69 1.58 0.1 1.6
Russell 2000 1202.38 1183.40 -18.98 -1.6 -1.8

3:42 pm Earnings Preview for the week of December 7 - 11 (:SUMRX) :

Of the companies reporting earnings for the week of December 7-11 some of the bigger names include:


Monday:
Pre Market - MFRM, MTN
After Hours - CASY, CENT, GWPH, HQY, HRB, ORIG, UNFI

Tuesday:
Pre Market - AZO, BNED, CBK, CONN, HDS, JW.A, PLCE, TOL
After Hours - ABM, ALOG, AVAV, COST, HELI, KKD, OXM, PLAY, SIGM, SWHC, TPLM

Wednesday:
Pre Market - FGP, FRAN, KFY, LULU, VRA
After Hours - LAYN, MNR, MW, OLLI

Thursday:
Pre Market - CIEN, CMN, HOFT, MEI
After Hours - ADBE, CIVI, DDC, DTEA, FNSR, IRET, NCS, NDSN, PPHM, RH

Friday:
N/A


12:28 pm Market Internals (:MKTIN) :

The Dow leads the major indices higher this afternoon, up 241 points +1.38 to 17718, the Nasdaq is up 66 +1.32 to 5103, the S&P 500 is up 24 +1.18 to 2073. Action has come on slightly mixed average volume (NYSE 358 mln vs. avg. of 341; NASDAQ 784 mln vs. avg. of 802), with advancers outpacing decliners (NYSE 1813/1292, NASDAQ 1614/1142) and new lows outpacing new highs (NYSE 25/174, NASDAQ 33/82).

Relative Strength:

Platinum-PPLT +4.0%, Gold Miners-GDX +3.7%, Silver-SLV +3.1%, Silver Miners-SIL +2.9%, Jr. Gold Miners-GDXJ +2.9%, Egypt-EGPT +1.9%, Israel-EIS +1.5%, New Zealand-ENZL +1.4%, Thailand-THD +1.3%, Malaysia-EWM +1.3%.

Relative Weakness:

Vix Shorrt-Term-VXX -5.8%, Russia-RSX -3.1%, Alerian MLP_AMJ -3.0%, Oil&Gas E&P-XOP -3.0%, US Oil-USO -2.9%, Oil Svcs.-OIH -2.9%, Colombia 20-GXG -2.8%, Emrg. Mkts. E. Eur.&Africa-GAF -1.7%, Turkey-TUR -1.3%.


11:40 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (241) outpacing new highs (59) (SCANX) : Stocks that traded to 52 week highs: ABCB, ADSK, ALK, AMSWA, AOSL, BRSS, BWXT, CB, CLX, CONE, COST, CPS, CSBK, CVT, CYT, DPS, DYAX, EDU, FBC, FDEF, FLXS, FXCB, GDEN, GFF, HOFT, IRL, LKFN, LUV, MCBC, MCD, MGPI, MKTX, MNGA, MSCI, MYOK, NEN, NTES, NVDA, OVTI, PROV, RNR, ROCK, RP, SBBX, SERV, SGA, SIRO, SIX, SVA, TSN, ULTA, VGR, VR, VTN, VYGR, WSFS, XRAY, XUE, ZAGG

Stocks that traded to 52 week lows: ACP, ADK, AHGP, AKER, ALQA, ANY, APC, APTO, AR, ARDM, ARLP, AROC, ARP, ATLS, AZUR, BBVA, BCA, BEL, BGX, BKS, BOI, BPT, BTU, CAMT, CAR, CBA, CCO, CECE, CELP, CEN, CEQP, CGIX, CHK, CIB, CLRB, CLUB, CMRE, CNXC, COG, COO, CPN, CPST, CQH, CTR, CU, CVGI, DAKP, DPM, DRAM, DSE, DSX, DXI, DYN, EC, EEP, EMG, EMO, ENB, ENI, ENLC, ENLK, ENVA, EOX, EPE, EQGP, EQM, EQT, ETE, ETP, EVAR, EVEP, EXC, EZPW, FCX, FEI, FELP, FEN, FEYE, FGP, FIF, FMO, FPL, FUEL, GCO, GDP, GER, GLNG, GLP, GLT, GLUU, GMLP, GOGL, GPOR, GPRO, GSI, HCCI, HERO, HHY, HIE, HIFR, HK, HOS, HTLD, HTZ, I, IILG, IMNP, INF, INVE, INVT, IPI, ISR, JMF, JOY, KED, KIN, KMF, KMI, KRO, KSU, KYE, KYN, LEU, LGCY, LINE, LNCO, LNG, LSBG, LSTR, MDVX, MEMP, MIE, MIL, MLNK, MMLP, MPLX, MSB, MT, MTOR, NAO, NC, NFG, NGL, NGLS, NML, NMM, NRG, NS, NSH, NVGS, NWPX, OCIP, OGXI, OKE, ORIG, OTIV, PAA, PAGP, PBA, PCO, PEB, PEGI, PGN, PII, PIR, POT, PQ, PSUN, PTSI, PTXP, PVH, R, RAS, RCKY, REE, RESI, RICE, RIO, ROYT, RRC, RRMS, RUSHA, RWLK, SAEX, SB, SBLK, SDLP, SDRL, SE, SEMG, SFY, SJT, SMM, SNY, SPCB, SPEX, SPH, SPXC, SQNM, SRF, SRV, SSE, SSL, SSW, SWFT, SWN, SXC, SXCP, SXE, SXL, TAC, TAT, TDW, TGP, TK, TLN, TLP, TPZ, TRGP, TSU, TTP, TXTR, TYG, UACL, UNFI, UNP, UNXL, UPL, VKTX, VMEM, VNDA, VNR, WAVX, WES, WGP, WLB, WMB, WPRT, WPZ, ZFGN, ZUMZ

ETFs that traded to 52 week highs: PSK

ETFs that traded to 52 week lows: AMJ, EPOL, EZA, GAF, JNK, KOL, SEA, USO

[ReturntoSender]

From Briefing.com: The broader market closed the week out with a Friday session on a sell-off. All three major indices began the session lower and never poked into the green. The worst losses today came in the Nasdaq Composite which lost 111.71 points (-2.21%) to 4933.46. The S&P 500 shed 39.86 points (-1.94%) to 2012.37. The Dow Jones Industrial Average posted the most shallow losses today, albeit losing 309.54 points (-1.76%) at the close to end 17265.21. This weeks action has taken the Dow and S&P further into negative territory YTD, while only the Nasdaq remains in positive territory relative to January levels.

Today's economic data came in the form of Producer Price Index for November, as both total PPI and core PPI increased +0.3%. The November Retail Sales report was worse than expected with an increase of +0.2%, with sales excluding autos coming in better than expected at +0.4%. The preliminary reading for the University of Michigan Index of Consumer Sentiment for December was 91.8, up from the November reading of 91.3. Finally, total business inventories were unchanged in October following a downwardly revised 0.1% increase in September.

Trading in Technology (XLK 42.80, -0.91 -2.08%) on Friday was not immune to the broader market selling action. Shares of component Adobe Systems (ADBE 91.42, +2.46 +2.77%) were strong on the session as the company reported better than expected EPS for Q4 on better than expected subscriber growth.

The S&P 500 Information Technology sector (719.66, -15.20 -2.07%) closed near session lows as trading at the open quickly turned to negative territory and did not look back. Shares of component Corning (GLW 18.68, +0.99 +5.60%) resisted the broader market sell-off as the company announced it would exchange its 50% interest in Dow Corning Corporation (a 50/50 JV with Dow Chemical (DOW 53.37, -1.54 -2.80%)) for 100% of the stock of a newly formed entity that will become wholly owned subsidiary of GLW. Said entity will hold about 40% ownership in Hemlock Semi Group and about $4.8 billion in cash.

Other notable news items among sector components:

Electronic Arts (EA 67.17, +0.80 +1.21%) disclosed COO Peter Moore is moving into a new role as Exec VP and Chief Competition Officer, leading EA's new Competitive Gaming Division.

Dow Chemical (DOW) announced a transaction to restructure the ownership of Dow Corning JV, a 50/50 joint venture between the two parties. Corning (GLW) received $4.8 billion in cash and retains 40% of Hemlock Semiconductor.

Yahoo! (YHOO 32.91, -1.72 -4.96%) Re/Code reported that SVP of Advertising Products, Prashant Fuloria, is leaving the company at the end of the year.

Qualcomm (QCOM 47.46, -1.11 -2.29%) Digitimes reported the company will begin delivering server-use CPU samples to potential customers in China.

Intuit (INTU 96.12, -0.87 -0.90%) and Stride Health partnered to help freelancers get health insurance as the Tuesday, Dec. 15, deadline for Open Enrollment approaches.

Facebook (FB 102.12, -3.30 -3.13%) a Wired report detailed the potential for the company to open source the designs of a new computer service to power artificial intelligence software.

Elsewhere in the technology space:

Sprint (S 3.64, -0.31 -7.72%) appointed Roger Sol as Chief Marketing Officer effective immediately.

Unwired Planet (UPIP 0.99, +0.04 +4.68%) announced a 1:12 reverse stock split. The company also authorized stock repurchase program for up to 5 million shares.

SunEdison (SUNE 4.15, +0.06 +1.47%) announced that it has agreed to sell 333 megawatts of wind-power assets to Terra Nova Renewable Partners for $209 million.

Transcat's (TRNS 9.21, -0.10 -1.07%) CFO John Zimmer will retire in 2016. MichaeI Tschiderer will be appointed CFO on March 27, 2016.

Zendesk (ZEN 26.58, -0.65 -2.39%) announced that CFO Alan Black will resign in 2016. The company also intends to initiate a search for a replacement.

Siliconware Precision (SPIL 7.15, +0.18 +2.58%) and Tsinghua Unigroup entered into a strategic alliance agreement and share subscription agreement.

CDK Global (CDK 46.14, +0.05 +0.11%) announced that Brian MacDonald will be appointed CEO, to succeed Steven Anenen by June 30, 2016.

In reaction to quarterly earnings:

Adobe Systems (ADBE) reported Q4 EPS which beat expectations at $0.62 per share and revenues which rose 21.7% year-over-year to $1.31 billion. The company also guided Q1 EPS in the range of $-0.56-0.62 with revenues expected in the range of $1.30-1.35 billion.

Fuel Systems Solutions (FSYS 4.16, -0.06 -1.42%) reported a miss on the top and bottom lines of expectations with Q3 EPS at a loss per share of ($0.48) on revenues which fell 23% year-over-year to $65.6 million. The company also expects 2015 revenues of $255-265, a reduction from previous forecasts.

Companies expected to report quarterly results next week: PAY, FDS, QIHU, JBL , ORCL, ACN, DSKY, MRVL, RHT, BBRY

Analyst actions:

TSM was upgraded to Outperform from Neutral at Credit Suisse,
RCI was upgraded to Buy from Hold at TD Securities,
AMX was upgraded to Equal Weight from Underweight at Morgan Stanley
FLEX was upgraded to Buy from Neutral at Citigroup;
GPRO was downgraded to Neutral from Buy at Citigroup,
HPY was downgraded to Underperform from Buy at Credit Agricole

Weekly Recap - Week ending 11-Dec-15The stock market ended a defensive week on a woeful note with the S&P 500 (-1.9%) diving below its 100-day moving average (2,031). The benchmark index lost 3.8% since last Friday, while the Nasdaq (-2.2%) underperformed, falling 4.1% for the week.

The bulk of today's weakness unfolded during the first half of the day while afternoon action saw the key indices slip to fresh lows. The early weakness followed an overnight session, which featured news from China, indicating the People's Bank of China nudged the yuan to a four-year low against the dollar (6.4553). This stoked up concerns about China's deflation being exported to other economies while continued weakness in commodities compounded those worries.

Furthermore, reports of trouble in the junk bond arena weighed on sentiment after it came to light that Third Avenue Management is liquidating its high-yield Focused Credit Fund and barring investor withdrawals while it is doing so. This invited fears about other bond funds with similar exposure while junk bonds faced daylong pressure that sent the iShares iBoxx $ High Yield Corporate ETF (HYG 79.52, -1.62) to its lowest close since July 2009.

All ten sectors ended the day in negative territory and the market saw no dip-buying during the afternoon. To be fair, the lack of an afternoon rebound was not a shock considering the Federal Reserve is likely to introduce another wrinkle into the fold next week when the central bank is widely expected to announce the first fed funds rate hike since June 2006.

The continued weakness in commodity prices took its toll on cyclical energy (-3.4%) and materials (-2.7%) sectors. The energy space widened this week's loss to 6.5% while crude oil also struggled, falling 3.2% to $35.62/bbl, to end the week lower by 10.9%.

Meanwhile, the remaining cyclical sectors fared a bit better, but that was a small victory considering the "best" performing growth-sensitive sector still lost 1.6%. The industrial sector settled just a step ahead of the broader market thanks to strength in select railroad names after it was reported Berkshire Hathaway (BRK.B 130.31, -1.40) is considering a bid for Norfolk Southern (NSC 89.53, +1.85). On a related note, the Dow Jones Transportation Average ended in line with the S&P 500.

The 1.9% gain in the shares of NSC represented one of few bright spots in the market as declining issues at the NYSE outpaced advancers by a 7:1 margin.

Treasuries rallied throughout the day, ending on their highs with the 10-yr yield sliding ten basis points to 2.13%.

The Friday retreat invited above-average volume as nearly a billion shares changed hands at the NYSE floor.

Economic data included PPI, Retail Sales, Michigan Sentiment, and Business Inventories:

The Producer Price Index report for November produced some better than expected readings, with both total PPI and core PPI, which excludes food and energy, increasing 0.3%
The median estimate of economists polled by Briefing.com called for a 0.1% decline in total PPI and a 0.1% increase in core PPI
On a year-over-year basis, the index for final demand is down 1.1%, which is the tenth consecutive 12-month decline. Core PPI is up 0.5%
The November Retail Sales report showed a below-consensus increase of 0.2% (Briefing.com consensus +0.3%), yet sales excluding autos (+0.4%) were stronger than expected (Briefing.com consensus +0.3%) while core retail sales, which exclude autos, gasoline station, and building materials sales, were up a healthy 0.6%
Core retail sales factor into the goods component of personal consumption expenditures in the GDP report, so this November data can be thought of as a positive input
The preliminary reading for the University of Michigan Index of Consumer Sentiment for December was 91.8, which was up slightly from the final November reading of 91.3 and nearly matched the Briefing.com consensus estimate of 91.6
The improvement stemmed from a better feeling about current conditions, evidenced by a jump in the Current Economic Conditions Index to 107.0 from 104.3
Total business inventories were unchanged in October following a downwardly revised 0.1% increase (from 0.3%) in September
The Briefing.com consensus expected business inventories to be up 0.1%
Manufacturer inventories (-0.1%) and merchant wholesaler inventories (-0.1%) were already known. Retailer inventories were the only unknown and they increased 0.1% in October on top of a 0.8% increase in September

Index Started Week Ended Week Change % Change YTD %
DJIA 17847.63 17265.00 -582.63 -3.3 -3.1
Nasdaq 5142.27 4933.00 -209.27 -4.1 4.2
S&P 500 2091.69 2012.00 -79.69 -3.8 -2.3
Russell 2000 1183.40 1123.76 -59.64 -5.0 -6.7

12:45 pm Color on weakness in high-yield bond market (HYG) :

High yield bonds are getting hit very hard today, as can be seen in the junk bond ETFs HYG (-3.0%) and JNK (-2.8%). They have bounced off their lows but remain volatile.The move follows yesterday's announcement from Third Avenue Management that it barred investors in a high-yield bond fund from redeeming their shares on Thursday. The company will liquidate the fund, but found that it couldn't meet redemption requests except at fire-sale prices. The high-yield debt market and, in fact, the entire corporate bond market has seen weakness today as a result. HYG and JNK, the two largest high-yield bond ETF's, hit post-crisis lows today. High yield bonds tend to be the most volatile, given their lower liquidity and riskier nature, and today's move is very large relative to the typical fluctuations in this market. Energy companies account for about 1/6 of the high-yield bond market, and lower oil prices have been causing many issuers in the United States great hardship.Moody's, the credit ratings agency, is calling for the corporate default rate to rise to 3.8% in 2016 from 2.8% in 2015.

6:01 am Trina Solar announces its withdrawal from the European Union Price Undertaking; will continue to service EU customers through its overseas manufacturing facilities (TSL) :

Co stated: "On December 5, 2013, the European Council imposed anti-dumping and anti-subsidy duties on solar cells and solar panels imported from China. Subsequently, the European Commission accepted a UT whereby Chinese companies would sell solar cells and solar panels in the EU at a price above a fixed Minimum Import Price . Chinese manufacturers that did not accept the terms of the agreement faced high AD and AS duties, which for Trina Solar were 47.7% and 3.5%, respectively, to be applied for a period of two years beginning on December 6, 2013. At the time, Trina Solar chose to join the UT as a participating company and has duly complied with its terms and conditions.

However, the current interpretations of the UT agreement by EU Commission unfairly limit the Company's growth potential in the European region, and are disruptive to the Company's ongoing global expansion strategy. Furthermore, the EU Commission announced recently to initiate review investigation during which the AD&AS and the UT measures will remain in force. Trina Solar believes this is contrary to the principles of free and fair trade and it is in its best interest to exit the UT."

4:39 am Chipmos Technology to sell 25% of ChipMOS Taiwan to Tsinghua Unigroup through private placement at a price of NT$40.00 per common share (IMOS) :

ChipMOS announced that the Board of Directors of its 58.0% owned subsidiary ChipMOS has authorized and signed a share purchase agreement to sell 299,252,000 common shares of ChipMOS Taiwan to Tsinghua Unigroup through private placement at a price of NT$40.0 per common share.

ChipMOS Taiwan today also executed a Strategic Alliance Agreement with Tsinghua Unigroup designed to strengthen the long-term cooperation relationship between the two companies. The proposed Private Placement is also subject to ChipMOS Taiwan shareholder approval and routine regulatory approvals in Taiwan. The proposed transaction would be valued at ~NT$12.0 billion (~$368.3 million).
After the issuance of the Private Placement Shares, Tsinghua Unigroup would own approximately 25.0% of ChipMOS Taiwan.
Parent company ChipMOS's ownership in its subsidiary ChipMOS Taiwan would be 43.7% post-placement compared to the current 58.0%.

4:09 am Siliconware Precision and Tsinghua Unigroup enter into a strategic alliance agreement and share subscription agreement (SPIL) :

Siliconware Precision Industries and Tsinghua Unigroup entered into a Strategic Alliance Agreement and Share Subscription Agreement

SPIL will continue to increase the scale of global operation, invest in advanced processing R&D, and expand high-end packaging and testing capacity. The majority of funds raised from this cooperation are expected to be used for investments in Taiwan, including hardware development and cultivation of local talent to sustain long-term development in Taiwan. In addition, SPIL will cooperate with leading foundry players to capture more market share in the advanced packaging and testing industry. SPIL plans to invite Unigroup to subscribe, through its affiliate company, to newly issued SPIL shares by means of a private placement as a strategic investor. Unigroup will subscribe 1,033 million newly issued SPIL shares priced at NT$55 per share and own 24.9% of the total shareholding of SPIL after the capital injection.

[ReturntoSender]

From Briefing.com: The broader market ended Wednesday action with notable gains. Leading the way higher today, the S&P 500 added 25.32 points (+1.24%) to 2064.29. The Dow Jones Industrial Average closed higher by 185.34 points (+1.06%) to 17602.61, and the Nasdaq Composite was higher by 44.82 points (+0.90%) to 5045.93 when the bell rang.

Today's economic data came in the form of durable goods orders which were unchanged in November following a downwardly revised 2.9% increase in October (from 3.0%). The Personal Income and Spending report for November showed a 0.3% increase in spending, as expected, driven by a 0.6% increase in goods spending. New home sales were at a seasonally adjusted annual rate of 490,000 in November, up 4.3% from a downwardly revised 470,000 (from 495,000) in October. The final reading for December University of Michigan Consumer Sentiment Index was revised up to 92.6 from a preliminary reading of 91.8.

When the bell rang, Technology (XLK 43.27, +0.34 +0.79%) closed near the highs of the day, as the broader market gains pushed the sector higher. Component Computer Sciences (CSC 33.04, +0.83 +2.58%) closed among the leaders in the sector as the company acquired 9.99% of Xchanging plc. Other sectors closed XLE +4.35%, XLB +2.36%, IYZ +2.18%, XLU +1.54%, XLF +1.18%, XLI +1.17%, XLV +1.08%, XLP +0.73%, XLY +0.51% led by a surge in the Energy sector as WTI Crude Oil Futures rallied about +3.8%.

Shares of Semi (SOX 671.78, +4.68 +0.70%) names were mostly higher today, in spite of component Micron's (MU 14.30, -0.31 -2.12%) mixed quarterly results which were reported last night. Components which finished in positive territory today included MRVL +3.00%, SUNE +1.51%, CREE +1.50%, TER +1.46%, ASML +1.02%, AVGO +0.97%, SWKS +0.97%, XLNX +0.95%, ARMH +0.94%, ADI +0.83%, BRCM +0.82%, SNDK +0.79%, INTC +0.78%.

The S&P 500 Information Technology sector (728.45, +5.87 +0.81%) was also strong on Wednesday, ending the session near highs. Components like QRVO +3.82%, STX +3.30%, CSC +2.55%, PAYX +2.35%, FIS +2.24%, GLW +2.15%, TXN +1.96%, CSCO +1.90%, FSLR +1.82%, CA +1.81%, AMAT +1.81% ended the session outperforming the broader market on a light day of news by all accounts.
Other notable news items among sector components:

Oracle (ORCL 36.93, +0.33 +0.90%) acquired StackEngine. Financial terms of the deal were not disclosed.

Nvidia (NVDA 33.06, +0.12 +0.38%) commented on a judge's ruling that it infringed three of Samsung's (SSNLF 1025, flat) patents. The company noted it will seek a review by the full ITC, which it expects to take several months to issue its ruling.

Apple (AAPL 108.62, +1.39 +1.30%) amended bylaws to implement proxy access. The Bylaws include a new Section 5.15 that permits a shareholder, or a group of up to twenty shareholders, owning at least 3% of Apple's outstanding shares of common stock continuously for at least three years to nominate and include in Apple's annual meeting proxy materials director nominees constituting up to twenty percent of the Board, provided that the shareholder(s) and nominee(s) satisfy the requirements specified in the Bylaws.

Computer Sciences (CSC) acquired 9.99% of Xchanging plc. Xchanging also disclosed that CSC's pending offer remains the only firm offer which has been made and was unanimously recommended by the Board.

Elsewhere in the technology space:

Rovi (ROVI 14.66, +3.31 +29.16%) and AT&T (T 34.78, +0.38 +1.10%) agreed to a seven-year renewal and expansion of the existing license agreement.

Wi-LAN (WILN 1.31, +0.14 +11.97%) entered into a patent license agreement with Netflix (NFLX 118.16, +1.92 +1.65%). The consideration which is to paid to WILN was not disclosed.

Black Box (BBOX 9.09, -0.92 -9.19%) announced Michael McAndrew will be stepping down as the President and CEO effective upon the appointment of his successor.

Anadigics (ANAD 0.54, +0.07 +15.35%) announced a 'Superior Offer' of $0.54 per share after GaAs Labs matches the $0.48 per share offer price of the competing bidder.

Wipro (WIT 11.80, +0.01 +0.08%) acquired the Viteos Group for $130 million.

Monotype Imaging (TYPE 23.71, +0.12 +0.51%) appointed COO Scott Landers as President and CEO effective January 1.

NII Holdings (NIHD 4.88, -0.06 -1.21%) disclosed certain workforce reductions at its corporate headquarters. As such, the Board of Directors have approved a Form of Separation and Release Agreement for certain executive officers of the company, including Steven Shindler, Chief Executive Officer, and Daniel Freiman, Chief Financial Officer.

In reaction to quarterly results:

Micron (MU) reported Q1 earnings per share which beat expectations at $0.24 and revenues which fell 26.7% year-over-year to $3.35 billion and were worse than expected. The company also guided Q2 EPS and revenues worse than expected at ($0.12)-($0.05) and $2.9-3.2 billion, respectively.

CalAmp (CAMP 20.88, +1.42 +7.33%) reported Q3 EPS which beat expectations at $0.31 on revenues which came in in-line at $74.7 million, and rose 18.2% year-over-year. The company also guided Q4 EPS and revenues in-line at $0.28-0.32 and $73-78 million, respectively.

Analyst actions:

SCSC was upgraded to Buy from Neutral at Northcoast,
EEFT was upgraded to Buy from Neutral at Monness Crespi & Hardt,
SPIL was upgraded to Neutral from Sell at Goldman;
MU was downgraded to Outperform from Strong Buy at Raymond James

4:10 pm : The major averages enjoyed a broad-based rally on Wednesday and the steady climb was undoubtedly facilitated by light trading volume ahead of tomorrow's abbreviated Christmas Eve session. The S&P spiked 1.2%, ending right above its 50-day (2,063) moving average (2,062), and the Nasdaq Composite (+0.9%) followed not far behind.

Equity indices registered roughly half of their gains right at the open, rallying behind the energy sector (+4.4%), which held a solid lead throughout the day thanks to a rally in crude oil. The energy component surged 3.8% to $37.50/bbl, catching a second wind from bullish inventory data; however, it wasn't just energy, as every other sector ended the day comfortably in the green.

The materials sector (+2.4%) was a distant second while heavily-weighted financials (+1.2%), industrials (+1.2%), and health care (+1.1%) settled near the broader market. Meanwhile, the top-weighted technology sector (+0.8%) spent the day behind the S&P 500 as several large cap components like Alphabet (GOOGL 768.51, +1.38), Qualcomm (QCOM 49.04, -0.02), and Facebook (FB 104.63, -0.88) lagged.

Elsewhere in the technology sector, high-beta chipmakers benefitted from the overall rally in the market, but the PHLX Semiconductor Index underperformed with a 0.7% gain as Micron (MU 14.29, -0.32) weighed. Shares of MU flirted with a new low for the year, settling lower by 2.2% after the company's below-consensus revenue and disappointing guidance masked a one-cent beat.

Staying on the earnings theme, Nike (NKE 128.71, -3.14) beat earnings estimates on below-consensus revenue and its stock surged to a fresh all-time high at the open, but that was followed by daylong selling that left the Dow component lower by 2.4% when the closing bell rang. Furthermore, the consumer discretionary sector (+0.5%) as a whole struggled to keep pace with the market amid weakness in select retailers and homebuilders, with the latter stumbling after the release of a disappointing November new home sales report that contained a downward revision to October data.

Trading volume was well below average for the second consecutive day as fewer than 820 million shares changed hands at the NYSE floor.

Treasuries hit their lows in morning action, erasing about a third of their losses into the afternoon. The 10-yr yield rose two basis points to 2.26% after testing 2.28% intraday.

Economic data included Durable Orders, Personal Income/Spending data, New Home Sales, Michigan Sentiment, and MBA Mortgage Index:

Durable goods orders were unchanged in November (Briefing.com consensus -0.7%) following a downwardly revised 2.9% increase in October (from 3.0%)
Orders, excluding transportation, declined 0.1% (Briefing.com consensus 0.0%) following an unrevised 0.5% increase in October
The Personal Income and Spending report for November caused a stir since the spending data was inadvertently released early. It showed a 0.3% increase in spending, as expected, driven by a 0.6% increase in goods spending and a 0.2% increase in services spending
Real PCE increased 0.3%, which is a positive input for fourth quarter GDP computations
Personal income rose 0.3% in November (Briefing.com consensus +0.3%) following a downward revision to unchanged (from +0.1%) in October. The income growth was driven by a 0.5% increase in wages and salaries and a 0.8% increase in rental income
The PCE Price Index, which is the Fed's preferred inflation gauge, was flat in November while the core PCE Price Index, which excludes food and energy, rose 0.1% (Briefing.com consensus +0.2%)
New home sales were at a seasonally adjusted annual rate of 490,000 in November (Briefing.com consensus 505,000), up 4.3% from a downwardly revised 470,000 (from 495,000) in October
The large downward revision to October, as well as slight downward revisions to September and August sales made the report a disappointment
From a regional perspective, the Northeast and the Midwest were the biggest drags in November as new home sales there declined 28.6% and 8.6%, respectively
The West region, however, saw a robust 20.0% increase in new home sales while the South saw a 4.5% increase
The final reading for the December University of Michigan Consumer Sentiment Index was revised up to 92.6 (Briefing.com consensus 92.0) from a preliminary reading of 91.8
The Current Economic Conditions Index jumped to 108.1 from 104.3 while the Index of Consumer Expectations dipped to 82.7 from the final reading of 82.9 for November
The weekly MBA Mortgage Index rose 7.3% to follow last week's 1.1% decline

Tomorrow's economic data will be limited to the 8:30 ET release of the weekly Initial Claims report (Briefing.com consensus 271,000) and light trading volume is expected with NYSE set to close at 13:00 ET.

Nasdaq Composite +6.5% YTD
S&P 500 +0.3% YTD
Dow Jones Industrial Average -1.2% YTD
Russell 2000 -4.1% YTD

DJ30 +185.34 NASDAQ +44.82 SP500 +25.32 NASDAQ Adv/Vol/Dec 2106/1.46 bln/819 NYSE Adv/Vol/Dec 2679/820.3 mln/431

3:45 pm :

Front-month Feb crude oil rallied in morning trade today and then extended gains following the weekly EIA storage data
Oil has continued to be under pressure largely due to supply issues.
However, following recent weakness, oil gained back some steam today. Feb crude closed the day +3.8% at $37.50/barrel
Natural gas futures recently fell well below $2.00/MMBtu as unusually warm weather continues to pressure prices
Today, Jan nat gas recovered back to the $2/MMBtu level, but officially ended floor trading +5.3% at $1.98/MMBtu
Precious metals closed in the red today, while industrial metals like copper finished higher
Feb gold fell -0.5% to $1068.30/oz today, while Mar silver slipped one cent to $14.30/oz
Mar copper rose one cent to end the day at $2.12/lb


3:55 pm SolarCity announces that it will cease solar sales and installation in Nevada, following the decision by the Nevada Public Utilities Commission (SCTY) : Co stated:"This is a very difficult decision but Governor Sandoval and his PUC leave us no choice. The people of Nevada have consistently chosen solar, but yesterday their state government decided to end customer choice, damage the state's economy, and jeopardize thousands of jobs. The PUC has protected NV Energy's monopoly, and everyone else will lose. We have no alternative but to cease Nevada sales and installations, but we will fight this flawed decision on behalf of our Nevada customers and employees."

[ReturntoSender]

From Briefing.com: The broader market closed Friday with notable losses. The decline saw the Nasdaq lose in excess of 191 points at the low of the day. Stocks did rebound off those daily lows somewhat, leaving losses across the board of worse than -2%. The Nasdaq Composite led the way down, shedding 126.59 points (-2.74%) to 4488.42. The Dow Jones Industrial Average also closed down today, with losses of 390.97 (02.39%) to 15988.08. The S&P 500 closed down 41.55 points (-2.16%) to 1880.29. YTD, today's losses leave the Nasdaq down about -10.4%, the Dow down -8.3% and the S&P down -8.0%.

Today was loaded with economic data. The Producer Price Index report for December produced a 0.2% decline as index for final demand services ticked up 0.1%. The December Retail Sales report declined 0.1% while sales ex-auto also declines 0.1%. Empire Manufacturing Survey for January registered a reading of -19.4, which was below last month's revised reading of -6.2 (from -4.6). Industrial production decline 0.4% in December, and total industry capacity utilization dipped to 76.5%. Total business inventories were down 0.2% in November and the preliminary reading for the University of Michigan Index of Consumer Sentiment for January was 93.3, up from a December reading of 92.6.dd

Technology (XLK 39.32, -1.16 -2.87%) also succumbed to the selling pressure. Component TE Connectivity (TEL 55.08, -2.36 -4.11%) was particularly weak today as shares were downgraded in the premarket session to a Neutral rating from a Buy at Longbow. Other sectors ended Friday XLE -2.89%, IYZ -2.84%, XLF -2.24%, XLY -2.05%, XLB -2.05%, XLI -1.76%, XLP -1.57%, XLV -1.40%, XLU -0.89%.

Semis (SOXX 77.69, -3.64 -4.48%) were again under pressure. Component Intel (INTC 29.76, -2.98 -9.10%) led the sector declines as the company reported Q4 results and disappointing news regarding PC demand, concerns among the company's Chinese prospects and a lackluster guide for the Q1 period. Other SOX names which closed lower included NXPI -7.86%, MU -7.86%, QRVO -7.15%, ASML -6.55%, ARMH -6.13%, SWKS -6.00%, LRCX -5.55%, NVDA -5.48%.

The Social Media (SOCL 17.45, -0.31 -1.75%) sector was also an underperformer today. Component Facebook (FB 94.97, -3.40 -3.46%) as according to reports, the company received an unfavorable ruling in a German court regarding the find-a-friend service. Other SOCL names which displayed weakness today included YNDX -7.28%, TWTR -5.58%, WB -5.42%, NTES -5.38%, GRPN -4.74%, SINA -4.70%, RENN -4.66%, P -4.55%, YHOO -3.89%.

The S&P 500 Information Technology sector (656.49, -21.35 -3.15%) did not resist the selling either. Component Analog Devices (ADI 49.82, -0.68 -1.35%) closed in the red as the company lowered certain Q1 guidance. Other components which closed in the red included ADSK -6.17%, HPQ -4.80%, CSCO -4.32%, AVGO -4.23%, QCOM -4.00%.

Other notable news items among sector components:

IBM (IBM 130.00, -2.91 -2.19%) has acquired IRIS Analytics, a privately held company specializing in real-time analytics to help combat payment fraud. Financial terms of the deal were not disclosed.

Vivendi (VIVHY 20.52, -0.09 -0.44%) announced the unwinding of its remaining hedge of 41.5 million

Activision Blizzard (ATVI 34.91, -0.49 -1.38%) shares (about 5.7% of ATVI's total common shares) and sold its entire position for net proceeds of $1.1 billion (about 1 billion).

Alliance Data (ADS 251.28, -4.96 -1.94%) reported December average receivables of $13.17 billion, up about 22% year-over-year. The delinquency rate as of December 31, 2015 was 4.2%.

Level 3 (LVLT 46.71, -1.65 -3.41%) and Alphabet's (GOOG 694.45, -20.27 -2.84%) Google reached a new multi-year, settlement-free interconnection agreement. The new arrangement is centered on the concept of bit mile balance, in which both parties commit to carrying equitable amounts of bit miles, taking into account both the amount of traffic and the distance over which that traffic is carried by each network.
Internet Brands will acquire Demandforce, a leading marketing software service provider, from Intuit (INTU 91.49, -2.83 -3.00%).

Elsewhere in the technology space:

Code Rebel (CDRB 3.66, +1.49 +68.66%) entered into a non-binding Letter of Intent to engage in a merger with Aegis Identity Software.

Digital Ally (DGLY 5.95, +0.41 +7.40%) announced that yesterday afternoon the USPTO confirmed the validity of its revolutionary auto-activation technology for law enforcement body cameras. DGLY also has filed suit in the U.S. District Court for the District of Kansas against TASER (TASR 14.63, -0.85 -5.49%) alleging willful patent infringement against TASR's Axon body camera product line.

Verifone (PAY 22.47, -1.17 -4.95%) signed an agreement to acquire AJB Software Design, a Toronto-based provider of payment gateway and switching solutions for large merchants in the U.S. and Canada.

Kyocera Corp's (KYO 42.29, -2.06 -4.64%) Kyocera Communication Systems subsidiary has made an agreement with AlpacaDB to acquire Labellio, an image recognition web service powered by deep learning. Change in ownership will take place on January 19th, 2016.

Rocket Fuel (FUEL 3.13, -0.23 -6.85%) named Eric Duerr as Chief Marketing Officer.

In reaction to quarterly results:

Intel (INTC) reported Q4 EPS which was better than expected at $0.74 on revenues which rose 1.3% year-over-year to $14.91 billion. The company reported gross margins of 64.3% for the period versus guidance of 62%. INTC also issued in-line guidance for Q1 revenues of $13.6-14.6 billion. Management also raised FY16 revenues guidance to mid-to-high single digits from mid-single digits after completing the Altera acquisition. They also see non-GAAP gross margins of 63%, plus or minus 2%, versus 62% prior to the Altera completion and capital expenditures of $9-10 billion, down from the prior $9.5-10.5 billion.

Pros Holdings (PRO 15.39, -3.89 -20.18%) reported a better than expected Q3 loss per share of $0.16 on revenues which fell 12.5% year-over-year to $40.86 million. PRO also issued downside Q4 guidance for EPS in the range of ($0.21)-($0.19) on revenues of $40-7-42.7 million.

Analog Devices (ADI) lowered certain Q1 guidance. ADI now expects Q1 revenues in the range of $745-765 million, down from the prior $805-855 million reflecting weaker than forecasted customer demand in the company's portable consumer business unit, which began in December, and is expected to continue into Q2.

Companies scheduled to report quarterly results next week: ADTN, AMD, CREE, IBM, LLTC, APH, ASML, TEL, FFIV, LOGI, PLCM, PTC, XLNX, AVT, FCS, QSII, TZOO, VZ, EGHT, DGII, MXIM

Analyst actions:

JNPR and NUAN were upgraded to Buy from Hold at Standpoint Research,
ADI was upgraded to Neutral from Reduce at Nomura,
MCHP was upgraded to Buy from Hold at Needham,
ADTN was upgraded to Buy from Hold at Drexel Hamilton,
CACI was upgraded to Outperform from Neutral at Credit Suisse,
NOK was upgraded to Buy from Hold at Argus,
EA was upgraded to Buy from Neutral at BofA/Merrill,
MKTO was upgraded to Outperform from Sector Perform at RBC Capital Mkts,
PLT was upgraded to Overweight from Neutral at JP Morgan;
TSL was downgraded to Neutral from Buy at Goldman,
TXTR was downgraded to Sell from Buy at The Benchmark Company,
FFIV and CVLT were downgraded to Neutral from Buy at Sterne Agee CRT,
PRO was downgraded to Hold from Buy at Stifel, III was downgraded to Neutral from Outperform at Macquarie

Weekly Recap - Week ending 15-Jan-16The second trading week of 2016 was not much better than the first as the stock market extended its January decline. The S&P 500 lost 2.2%, extending its January drop to 8.0%.

To be fair, volatility between Monday and Thursday left the S&P 500 flat for the week as of Thursday's close, but broad-based selling on Friday sent the benchmark index to its lowest level since October 2014. Furthermore, the S&P 500 registered its lowest weekly close since April 2014 with nine sectors posting weekly losses between 0.2% (telecom services) and 4.4% (materials). The countercyclical utilities sector (+0.7%) eked out a slim gain for the week as lower Treasury rates kept the rate-sensitive sector afloat.

Investor focus remained on China at the start of the week as the People's Bank of China took steps to stamp out speculation in the yuan. As a result, offshore yuan liquidity tightened, sending the overnight Hong Kong Interbank Offered Rate to 66.8%. The rate dropped to 2.1% by week's end, but the People's Bank of China was not done there, engaging in large-scale liquidity injections into capital markets.

Despite the fervent efforts from the PBoC, the Shanghai Composite lost 9.0% for the week, widening its January drop to 18.0%.

The dive in global equities was accompanied by selling in the energy market which pressured crude oil to its lowest level since late 2003. WTI crude ended the week lower by 11.2% at $29.45/bbl with Friday's 5.7% slide taking place amid expectations that the International Atomic Energy Agency will release a report that will pave the way to lifting oil export sanctions on Iran.

Speaking of reports, the market received the first batch of quarterly earnings with results from the financial sector coming in roughly in line with expectations. However, it is worth noting that both Citigroup (C) and JPMorgan Chase (JPM) increased their loan loss reserves for the first time in six years due to their exposure to the energy sector.

Index Started Week Ended Week Change % Change YTD %
DJIA 16346.45 15988.08 -358.37 -2.2 -8.2
Nasdaq 4643.63 4488.42 -155.21 -3.3 -10.4
S&P 500 1922.03 1880.29 -41.74 -2.2 -8.0
Russell 2000 1046.39 1007.74 -38.65 -3.7 -11.3

3:20 pm Earnings preview for the week of January 18th (:SUMRX) :

Confirmed companies reporting earnings for the week of January 18th include:

Monday (January 18)
Markets closed - Martin Luther King, Jr. Day

Tuesday (January 19)
Pre-Market: UNH, BA, DAL, MS, SCHW, MTB, CMA, FHN, SNV, EDU, WTFC, OMN
After-Hours: IBM, NFLX, AMD, WWD, CREE, LLTC, IBKR, FULT, ADTN, RNST, PNFP, OKSB

Wednesday (January 20)
Pre-Market: GS, TEL, ASML, APH, NTRS, AMTD, EAT, CBSH, UCBI
After-Hours: RJF, LOGI, PLXS, XLNX, FFIV, BGG, PTC, SLM, TCBI, CATY, CNS, CVBF, EGBN, CUBI

Thursday (January 21)
Pre-Market: VZ, UAL, TRV, UNP, LUV, PPG, BK, BBT, FITB, ORI, ALK, KEY, HBAN, GMT, MTG, WBS, BKU, FNB, PVTB, HOMB, IIIN, CBU, SASR
After-Hours: AXP, SLB, SBUX, CE, ISRG, MXIM, HXL, ETFC, RMD, SIVB, PBCT, ASB, HBHC, WAAL, FFBC, FFIN, EGHT, DGII, CSII, BMTC, VASC

Friday (January 22)
Pre-Market: GE, SYF, STI, CFG, COL, LM, KSU
After-Hours: MBFI
9:47 am Microsemi closes acquisition of PMC-Sierra (PMCS) (MSCC) :

[ReturntoSender]

From Briefing.com: 4:45 pm Thinly traded SMTC Corp appointed Roger Dunfield as CFO; was previously Sanmina (SANM) VP Finance & Controller (SMTX) :

4:33 pm Unisys beats by $0.52, misses on revs (UIS) :

Reports Q4 (Dec) earnings of $1.58 per share, $0.52 better than the Capital IQ Consensus of $1.06; revenues fell 13.7% year/year to $789.9 mln vs the $801.57 mln Capital IQ Consensus. "Our efforts to reduce costs, sharpen our market focus and enhance our offerings continued to improve our competitiveness and positioning in the marketplace. In the fourth quarter, services revenue continued to grow in constant currency."
Unisys will discuss the 2016 outlook during the quarterly earnings conference call.

4:20 pm KLA-Tencor beats by $0.18, beats on revs (In pending merger with Lam Research (LRCX)) (KLAC) :

Reports Q2 (Dec) earnings of $1.04 per share, $0.18 better than the Capital IQ Consensus of $0.86; revenues rose 5.0% year/year to $710.25 mln vs the $700.83 mln Capital IQ Consensus.
In light of the pending merger transaction with Lam Research (LRCX), KLA-Tencor will discontinue conducting quarterly earnings conference calls to discuss financial results

4:20 pm Western Digital beats by $0.06, reports revs in-line (WDC) :

Reports Q2 (Dec) earnings of $1.60 per share, $0.06 better than the Capital IQ Consensus of $1.54; revenues fell 14.7% year/year to $3.32 bln vs the $3.35 bln Capital IQ Consensus.
Co said, "Despite a lower-than-expected hard drive total available market, we reported revenue and EPS within our guidance range, with non-GAAP gross margin of 28.5 percent. We also had strong free cash flow performance of $449 million. Our storage shipments for the December quarter grew to 69.1 exabytes."

4:17 pm QLogic beats by $0.07, beats on revs; guides Q4 EPS above consensus, revs above consensus (QLGC) :

Reports Q3 (Dec) earnings of $0.33 per share, $0.07 better than the Capital IQ Consensus of $0.26; revenues fell 12.5% year/year to $122.7 mln vs the $117.6 mln Capital IQ Consensus.
Co issues upside guidance for Q4, sees EPS of $0.23-$0.27 vs. $0.21 Capital IQ Consensus Estimate; sees Q4 revs of $113-$119 mln vs. $112.04 mln Capital IQ Consensus Estimate.

4:16 pm Skyworks beats by $0.02, reports revs in-line; guides Q2 EPS below consensus, revs below consensus (SWKS) :

Reports Q1 (Dec) earnings of $1.60 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $1.58; revenues rose 15.1% year/year to $926.8 mln vs the $920.03 mln Capital IQ Consensus.
Co issues downside guidance for Q2, sees EPS of $1.24, excluding non-recurring items, vs. $1.32 Capital IQ Consensus; sees Q2 revs of $775 mln vs. $819.37 mln Capital IQ Consensus Estimate.

4:15 pm Microsoft beats by $0.07, beats on revs (MSFT) :

Reports Q2 (Dec) earnings of $0.78 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.71; revenues fell 1.7% year/year to $25.69 bln vs the $25.21 bln Capital IQ Consensus.
Productivity and Business Processes revs of $6.69 bln versus guidance of $6.6-6.7 bln.
Office commercial products and cloud services revenue grew 5% in constant currency driven by Office 365 revenue growth of nearly 70% in constant currency
Office 365 consumer subscribers increased to 20.6 million
Intelligent Cloud revs of $6.34 bln versus guidance of $6.2-6.3 bln
Server products and cloud services revenue grew 10% in constant currency
Azure revenue grew 140% in constant currency with revenue from Azure premium services growing nearly 3x year-over-year
Personal Computing revs of $12.66 bln versus guidance of $12.0-12.4 bln.
Windows OEM revenue declined 5% in constant currency, outperforming the PC market, driven by higher consumer premium and mid-range device mix
Surface revenue increased 29% in constant currency driven by the launch of Surface Pro 4 and Surface Book
Phone revenue declined 49% in constant currency reflecting our strategy change announced in July 2015
Co will guide for Q3 on the call at 17:30.

4:14 pm Super Micro Computer reports Q2 EPS slightly better than recent upside guidance range, revenue inline with upside guidance range; guides Q3 EPS in-line, revs in-line (SMCI) :

Reports Q2 (Dec) earnings of $0.73 per share, slightly ahead of its upside guidance of $0.69-$0.72 (consensus was $0.59 at that time) provided on January 12, and above the current Capital IQ Consensus of $0.70; Revenue increased 27% y/y to $638.9 mln, inline with its upside guidance range of $637-$639 mln (consensus was $600 mln at that time), above the $626.8 mln current Capital IQ Consensus.
Non-GAAP gross margin for Q2 was 16.7% compared to 16.8% in the same period year ago. GAAP gross margin and Non-GAAP gross margin for the first quarter of fiscal year 2016 were both 13.9%.
Co issues in-line guidance for Q3, sees EPS of $0.43-$0.53 vs. $0.51 Capital IQ Consensus Estimate; sees Q3 revs of $530-$580 mln vs. $560.00 mln Capital IQ Consensus Estimate.

4:08 pm Amazon reports operating income below estimates, near the high end of guidance, reports revs in-line; guides Q1 in-line (AMZN) :

Reports Q4 (Dec) earnings of $1.00 per share, $0.58 worse than the Capital IQ Consensus of $1.58; revenues rose 21.9% year/year to $35.75 bln vs the $35.98 bln Capital IQ Consensus and $33.5-36.75 bln; operating income $1.1 bln vs ~$1250 mln estimates and $80-1280 mln guidance.
North America retail operating income +37% to $1 bln, sales +24% to $21.5 bln.
AWS operating income +186% to $687 mln; rev +69% to $2.4 bln.
Co issues in-line guidance for Q1, sees Q1 revs of $26.5-29.0 bln vs. $27.72 bln Capital IQ Consensus; operating income $100-700 mln vs ~$650 mln estimates.

4:07 pm Applied Micro reports EPS in-line, revs in-line (AMCC) :

Reports Q3 (Dec) loss of $0.03 per share, in-line with the Capital IQ Consensus of ($0.03); revenues rose 10.6% year/year to $40.6 mln vs the $40.57 mln Capital IQ Consensus.
Total cash, cash equivalents and short-term investments of approximately $76.4 million as of December 31, 2015

4:15 pm Microsoft beats by $0.07, beats on revs (MSFT) :

Reports Q2 (Dec) earnings of $0.78 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.71; revenues fell 1.7% year/year to $25.69 bln vs the $25.21 bln Capital IQ Consensus.
Productivity and Business Processes revs of $6.69 bln versus guidance of $6.6-6.7 bln.
Office commercial products and cloud services revenue grew 5% in constant currency driven by Office 365 revenue growth of nearly 70% in constant currency
Office 365 consumer subscribers increased to 20.6 million
Intelligent Cloud revs of $6.34 bln versus guidance of $6.2-6.3 bln
Server products and cloud services revenue grew 10% in constant currency
Azure revenue grew 140% in constant currency with revenue from Azure premium services growing nearly 3x year-over-year
Personal Computing revs of $12.66 bln versus guidance of $12.0-12.4 bln.
Windows OEM revenue declined 5% in constant currency, outperforming the PC market, driven by higher consumer premium and mid-range device mix
Surface revenue increased 29% in constant currency driven by the launch of Surface Pro 4 and Surface Book
Phone revenue declined 49% in constant currency reflecting our strategy change announced in July 2015
Co will guide for Q3 on the call at 17:30.

4:07 pm Microsemi reports EPS in-line, revs in-line (pre-announced revs 1/11); offers Q2 guidance (MSCC) :

Reports Q1 (Dec) earnings of $0.72 per share, in-line with the Capital IQ Consensus of $0.72; revenues rose 8.4% year/year to $329.2 mln vs the $327.69 mln Capital IQ Consensus. Earlier this month the co announced it anticipates its first fiscal quarter revenue to be near the high end of Microsemi's revenue guidance
Co issues guidance for Q2, sees EPS of $0.62-0.68, may not be comparable to $0.75 Capital IQ Consensus Estimate; sees Q2 revs of $435-455 mln, may not be comparable to $374.00 mln Capital IQ Consensus Estimate. The guidance reflects the transitional quarter of the PMC-Sierra acquisition.

4:05 pm Coherent beats by $0.10, misses on revs (COHR) :

Reports Q1 (Dec) earnings of $0.99 per share, $0.10 better than the Capital IQ Consensus of $0.89; revenues fell 5.1% year/year to $190.3 mln vs the $196.32 mln Capital IQ Consensus.
"We are on track to set a new bookings record for the March quarter and we are expecting another tranche of orders in the second half of fiscal 2016."

4:15 pm : The major averages ended the Thursday affair modestly higher as speculation regarding oil output cuts, and positive earnings results helped keep the stock market in positive territory. However, the major indices lost their footing near their opening highs as weaker than expected economic data, and conflicting reports between OPEC and non-OPEC states limited the upside of today's trade. The tech-heavy Nasdaq (+0.9%) outpaced the Dow Jones Industrial Average (+0.8%) and the S&P 500 (+0.6%).

Today's session began on a positive note with earning results from Facebook (FB 109.11, +14.66) and Under Armour (UA 84.07, +15.49) each coming in ahead of analysts' estimates. Meanwhile, industrial giant Caterpillar (CAT 61.08, +2.76) issued above consensus EPS guidance for 2016 in its earnings report.

On the commodities front, WTI crude was able to extend its recent win streak due to increased speculation regarding oil production cuts between OPEC and non-OPEC states. This culminated when the Russian Energy Minister, Alexander Novak, released a statement saying that Saudi Arabia proposed a 5.0% cut to oil production by member states. This was followed by a denial from OPEC delegates, but despite the denial, oil was able to hold its ground above the $33.00/bbl level. WTI crude ended its session higher by 2.8% at $33.22/bbl.

In response to the upswing in oil, energy (+3.2%) settled on top of the leaderboard while utilities (+1.6%) and technology (+1.5%) followed. On the flipside, health care (-2.3%) was unable to make it out of negative territory while telecom services (+0.1%) and financials (+0.1%) also underperformed.

In the commodity-sensitive energy space, pipeline company Kinder Morgan (KMI 15.29, +1.19) and oilfield service company Schlumberger (SLB 69.51, +3.96) were able to capitalize on the positive price movement in crude to top the sector. Meanwhile, Dow components Chevron (CVX 85.92, +2.63) and Exxon Mobil (XOM 76.99, +1.70) were able to end their day near the top of that composite.

Switching gears, Facebook (FB 109.11, +14.66) dominated in the heavily-weighted technology space as it climbed 16.6% in response to a fourth quarter earnings beat. Fellow large cap Alphabet (GOOGL 748.30, +30.72) also outperformed, climbing 4.2%. To be fair, there was some relative weakness in the tech space as Cisco Systems (CSCO 23.10, -0.32) slid 1.4% in sympathy with Juniper Networks (JNPR 22.46, -4.08). Juniper plummeted 15.4% after issuing downside EPS guidance for Q1. Similarly, Qualcomm (QCOM 43.59, -3.94) lost 8.3% after below consensus guidance overshadowed better than expected earnings.

In health care, biotechnology showed persistent weakness, evidenced by the 3.7% tumble in the iShares Nasdaq Biotechnology ETF (IBB 263.40, -10.00). The sub-group responded to weakness in Celgene (CELG 97.21, -5.10), which missed bottom line estimates and issued below-consensus guidance.

Elsewhere, the financial sector continued to be anchored by American Express (AXP 52.88, -1.64), which has slid more than 16.0% since it reported earnings last week. Meanwhile, large-cap constituents Citigroup (C 40.39, -0.10) and Morgan Stanley (MS 25.17, -0.20) also showed relative weakness.

Once again, today's volume was relatively heavy as more than a billion shares changed hands at the NYSE floor.

Treasuries retreated from their lows for the bulk of the session, pressuring the 10-yr yield one basis point to 1.99%.

Today's economic data included weekly Initial Claims, Durable Orders for December, and Pending Home Sales for December.

Weekly initial claims were a bit better than expected, dropping to 278,000 (Briefing.com consensus 285,000) for the week ending January 23.
Initial claims remain bounded between 250,000 and 300,000, which is where they have been since July 2014, yet they have been showing signs of weakening in more recent reports.
Continuing rose to 2.268 million from the prior week's revised count of 2.219 from 2.208 million (Briefing.com consensus 2.230 million).
The four-week moving average for continuing claims sits at 2.246 million, up nearly 16,000 from the prior week's revised average.
Durable Goods Orders declined 5.1% (Briefing.com consensus -0.5%) on top of a downwardly revised 0.5% decrease (from 0.0%) for November.
Total durable goods orders are down 3.5% year-over-year while orders, excluding transportation, are down 2.6%.
Excluding transportation, orders fell 1.2% (Briefing.com consensus -0.1%) on the heels of a downwardly revised 0.5% decline (from 0.0%) for November.
Pending home sales for December ticked higher 0.1% (Briefing.com consensus +0.8%). The November reading was revised to -1.1% from -0.9%.

Tomorrow's economic data includes the advance reading of Q4 GDP (Briefing.com consensus 0.9%) will be released at 8:30 ET. Meanwhile, Chicago PMI for January (Briefing.com consensus 45.0) and the final reading of the January Michigan Sentiment Index (Briefing.com consensus 93.2) will cross the wires at 9:45 ET and 10:00 ET, respectively.

Russell 2000 -11.7% YTD
Nasdaq -10.0 YTD
Dow Jones -7.8% YTD
S&P 500 -7.4% YTD

DJ30 +125.18 NASDAQ +38.51 SP500 +10.41 NASDAQ Adv/Vol/Dec 1568/2.129 bln/1381 NYSE Adv/Vol/Dec 2052/1.064 bln/1037

3:45 pm :

Oil prices got a real boost this morning following news follows reports that Russia's Energy Minister suggested that OPEC and non-OPEC countries could meet next month to discuss supply
Mar WTI crude oil rose as high as $34.82/barrel as a result, rising as much as 7%, but has pulled back in afternoon trade
Mar crude ultimately closed out of today's session at +2.8% at $33.22/barrel
Natural gas futures got a boost after the EIA released weekly oil storage data numbers
Mar nat gas ended the day modestly higher at $2.18/MMBtu and extended gains a little in electronic trade, not sitting at today's HoD
Mar gold ended higher at $1127.40/oz, while Mar silver gained as well, closing the session at $14.53/oz
Copper shed one cent to $2.05/lb


Broader market action closed Thursday with notable gains. The Nasdaq Composite led the advance, as large cap names like FB, QCOM, EBAY and PYPL all reported quarterly earnings -- the index was up 38.51 points (+0.86%) to 4506.68. The Dow Jones Industrial Average was also up big, advancing 125.18 points (+0.79%) to 16069.64 helped by a nearly 2.8% advance in March Crude Oil Futures. The S&P 500 was higher by 10.41 points (+0.55%) to 1893.36 when the day was done.

Market data today came in the form of Weekly initial claims, which were a bit better than expected, dropping 278,000 for the week ending Jan. 23. Continuing claims rose to 2.268 million from the prior week's revised count of 2.219 from 2.208 million. Durable goods orders declines 5.1%, while excluding transportation, orders fell 1.2%. Pending home sales for December ticked higher 0.1% in comparison to the November reading which was revised to -1.1% from -0.9%.

Technology (XLK 39.98, +0.51 +1.29%) was also strong today, ending calmly as the session came to a close. Component Facebook (FB 109.11, +14.66 +15.52%) was the bull of the sector today as shares advanced at one point better than 16.4%. The company reported better than expected Q4 results after the close last night, lifting shares in trading action today. Other sectors closed the session XLE +3.04%, XLU +1.60%, XLY +1.28%, XLP +1.02%, XLI +0.58%, XLB +0.16%, XLF +0.05%, IYZ -0.07%, XLV -2.33% as Healthcare lagged the rest and Energy was an outperformer.

It was a tale of two tapes Thursday in a battle for the best performing and worst performing sector. Ultimately, Internet (FDN 65.38, +1.41 +2.20%) names edged out the rest to stand atop the podium with the best gains. Component Paypal (PYPL 34.24, +2.65 +8.39%) reported better than expected Q4 results after the close last night, rocketing the stock higher on today's session. Other FDN components which finished Thursday with strength included AMZN +8.91%, GOOG +4.42%, GOOGL +4.28%, NFLX +3.58%, VRSN +3.13%, EBIX +2.10%, BV +1.99%, ELNK +1.71%, LNKD +1.65%.

Finishing the day at the bottom of the tech sub-sector scorecard were Networking (IGN 31.75, -1.19 -3.61%) names. Component Juniper Networks (JNPR 22.46, -4.08 -15.37%) lagged the broader market and broader sector for that matter as the company reported a better than expected Q4 print, a mark that was out-shadowed by the tepid Q1 guide. In addition, JNPR announced the company's CFO will be resigning effective after the company files its 10-K Annual Report. Other IGN names which closed weaker today included ADTN -5.78%, ARRS -4.55%, PANW -4.49%, XXIA -3.30%.

Action in the S&P 500 Information Technology sector (662.30, +9.66 +1.48%) finished near higher of the day. Much like the broader market today, action in the sector was dictated by earnings movers - components Alliance Data (ADS 199.00, -48.38 -19.56%) and SanDisk (SNDK 67.25, +3.04 +4.73%) were among the best (as with SNDK) and the worst (as with ADS) performing components on Thursday. Other components which finished the day in the green included CA +1.68%, TXN +1.67%, WU +1.60%, KLAC +1.58%, SYMC +1.48%, INTU +1.38%, ORCL +1.20%, IBM +1.04%.

Other notable news items among sector components:
Juniper Networks (JNPR) announced Robyn Denholm notified the company of her intention to resign as Chief Financial and Operations Officer following the filing of the company's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2015, and is expected to remain at the company over the next several months to help facilitate a smooth transition. Ken Miller, the company's senior vice president, finance, will succeed Denholm as CFO.
NetSuite (N 65.58, -0.9 -0.14%) announced that UK-based m-hance Limited, an award-winning and gold Microsoft Dynamics partner, has joined the NetSuite Solution Provider Partner Program, adding NetSuite to its existing portfolios including Microsoft Dynamics GP (MSFT 52.06, +0.83 +1.63%) and Microsoft Dynamics CRM to meet the growing demand for Cloud ERP among businesses in the UK.
IBM (IBM 122.22, +1.26 +1.04%) announced its intent to acquire Resource/Ammirati, combining the companies' strategic, creative and technology talents to address rising demand from businesses seeking to reinvent themselves for the digital economy and provide differentiated experiences to their customers.
Marathon Patent Group (MARA 1.80, flat) announced that a two-week trial for its wholly owned subsidiary, Dynamic Advances LLC, patent infringement case vs. Apple (AAPL 94.09, +0.67 +0.72%) currently pending in the Northern District of New York, to begin on May 2, 2016

According to a Bloomberg article, AAPL acquired education technology startup LearnSprout.

Fiserv (FISV 91.02, +0.57 +0.63%) announced that Gate City Bank has expanded its relationship with FISV by selecting the DNA core account processing platform and additional integrated solutions from the company.

Xilinx (XLNX 47.99, -0.15 -0.30%) announced first customer shipment of the Virtex UltraScale+ FPGA, the industry's first high-end FinFET FPGA built using TSMC's 16FF+ process.

Elsewhere in the tech space:

Qualys' (QLYS 25.90, -2.02 -7.23%) CFO Don McCauley will resign effective March 1. The company also reaffirmed prior fourth quarter and full year 2015 guidance.

One Horizon (OHGI 0.90, +0.04 +5.35%) announced its China mobile VoIP telco Aishuo revenues have increased by over 50% on Q4 in first month of 2016, accelerating its monetization strategy.

CGI Group (GIB 42.56, +1.63 +3.98%) signed a new application management services contract and extends relationship with the Ministry of Health to 2020.

Silicon Graphics (SGI 5.32, -2.29 -30.09%) announced a universal shelf registration of up to $75 million.

Leidos (LDOS 45.59, -0.59 -1.28%) was awarded a task order by the National Institutes of Health valued at $17 million.

IDT Corp's (IDT 12.48, +0.37 +3.06%) Board cancelled the previous repurchase program, and then approved a new 8 million Class B common share repurchase program.

Chipmos Technology shareholders have voted to approve the proposed private placement with Tsinghua Unigroup.

In reaction to quarterly results:

MicroStrategy (MSTR 167.26, +24.87 +17.47%) reported Q4 EPS of $3.38 on better than expected revenues of $143.5 million.

Facebook (FB) reported better than expected Q4 EPS and revenues of $0.79 and $5.84 billion, respectively. Daily active users (DAUs)- DAUs were 1.04 billion on average for December 2015, an increase of 17% year-over-year. Mobile DAUs- Mobile DAUs were 934 million on average for December 2015, an increase of 25% year-over-year.

Cirrus Logic (CRUS 32.54, +4.58 +16.38%) reported better than expected Q3 EPS of $0.82 on revenues which rose 16.5% year-over-year to $347.9 million. The company also guided Q4 revenues worse than expected at $210-240 million.

PayPal (PYPL) reported better than expected Q4 EPS and revenues of $0.36 and $2.56 billion, respectively. Also, PYPL guided Q1 EPS and revenues in-line with expectations at $0.34-0.36 and $2.47-2.52 billion, respectively.

Qualcomm (QCOM 43.59, -3.94 -8.29%) reported better than expected Q1 EPS and revenues of $0.97 and $5.78 billion, respectively. QCOM also guided Q2 worse than expected at EPS of $0.90-1.00 and revenues of $4.9-5.7 billion.

eBay (EBAY 23.13, -3.29 -12.45%) reported in-line Q4 results. EPS was $0.50 on revenue of $2.32 billion. The company also guided Q1 and FY16 worse than expected. Q1 EPS is expected to be in the range of $0.43-0.45 on revenues of $2.05-2.10 billion. FY16 EPS is expected to be $1.82-1.87 on revenues of $8.5-8.8 billion.

Juniper Networks (JNPR) reported better than expected Q4 EPS and revenues of $0.63 and $1.32 billion, respectively. JNPR also guided Q1 EPS and revenues worse than expected at $0.42-0.46 and $1.15-1.19 billion, respectively.

ServiceNow (NOW 63.57, -11.80 -15.66%) reported better than expected Q4 EPS and revenues of $0.19 and $285.7 million, respectively. The company also guided Q1 revenues better than expected at $298-303 million. Billings for Q1, however, disappointed as NOW guided for $360-365 million (for growth of 34-36%) for Q1.

Companies reporting quarterly results tonight/tomorrow morning: AMCC AZPN AVNW EPAY COHR CPSI CTCT EA FICO FLEX FTNT GIMO GSIT KLAC MSCC MSFT NATI N PCCC PFPT QLGC QSII QTM SHOR SIMO SWKS SMCI SYNA UIS V WDC/MA STX SPIL XRX

Analyst actions:

NMBL and EMC were upgraded to Buy from Hold at Maxim Group,
SNDK was upgraded at Mizuho and Susquehanna,
CRUS was upgraded to Outperform from Perform at Oppenheimer,
CTXS was upgraded to Mkt Perform from Mkt Underperform at JMP Securities,
PYPL was upgraded to Outperform from Neutral at Wedbush,
DLB was upgraded to Buy from Neutral at Dougherty & Company,
DOX was upgraded to Buy from Neutral at BofA/Merrill,
VNTV was upgraded to Positive from Neutral at Susquehanna;
NOW was downgraded at Mizuho and MKM Partners,
INVN was downgraded to Mkt Perform from Outperform

8:02 am Cypress Semi beats by $0.01, beats on revs (CY) :

Reports Q4 (Dec) earnings of $0.13 per share, $0.01 better than the Capital IQ Consensus of $0.12.

7:34 am Fairchild Semi misses by $0.03, misses on revs; updates on merger talks (FCS) :

Reports Q4 (Dec) earnings of $0.11 per share, $0.03 worse than the Capital IQ Consensus of $0.14; revenues fell 5.8% year/year to $317.2 mln vs the $326.99 mln Capital IQ Consensus.

Fairchild previously disclosed that it is currently reviewing an unsolicited proposal from China Resources Microelectronics Limited and Hua Capital Management Co.,
The parties continue to undertake reciprocal due diligence and discuss the terms of the Consortium's proposal. The Board met on January 25, 2016 and received an update on the ongoing discussions. There can be no assurance that Fairchild's board of directors will ultimately determine that the Consortium's proposal is a Superior Proposal (as defined in the Agreement and Plan of Merger with ON Semiconductor) that the terms of a transaction will be the same as those reflected in the Consortium's proposal or that any transaction with the Consortium will be agreed to or consummated.
Fairchild remains subject to the Agreement and Plan of Merger with ON Semiconductor, and Fairchild's board of directors has not changed its recommendation in support of that agreement, nor has Fairchild's board of directors made any recommendation with respect to the Consortium's proposal.

Given the current acquisition process, Fairchild has discontinued its practice of providing detailed forward guidance and conducting an earnings conference call to discuss its financial results.

[ReturntoSender]

From Briefing.com: The broader market closed out the final trading day of January with nice gains, closing out the day at session highs. Action closed with the S&P 500 leading the way up, at the end of the day higher by 46.88 points (+2.48%) to 1940.24. The Dow Jones Industrial Average followed those gains closely, adding 396.66 points (+2.47%) today to close 16466.30. The Nasdaq Composite rounded out the bunch, higher by 107.28 points (+2.38%) to close 4613.95. This week's action took the three major indices to -5.2%, -5.6% and -8.0% YTD, respectively. The market averages started the final session of the week on a bullish note and extended the early upside momentum for much of Friday. The Bank of Japan move to adopt a negative interest rate policy for some excess reserves has been widely cited for the advance.

Market data today came in the form of the Q4 GDP report which showed an annualized rate of real GDP growth of just 0.7%, down from 2.0% in Q3. The Employment Cost Index rose 0.6%, while the GDP Deflator was up 0.8% after a 1.3% increase in Q3. The Chicago Purchasing Managers Index was up 12.7 points to 55.6 from 42.9 in December. In addition, the final reading for the University of Michigan Consumer Sentiment Survey for January dipped to 92.0 from the preliminary reading of 93.3.

Technology (XLK 41.24, +1.26 +3.15%) closed out the month near session highs, as action stepped higher minute-by-minute. Shares of component Electronic Arts (EA 64.54, -5.25 -7.52%) were under pressure on the session as the company reported better than expected Q3 earnings, but was weighed down by a worse than expected Q4 guide. Other sectors finished Friday XLE +2.92%, XLB +2.89%, XLF +2.79%, XLI +2.69%, IYZ +2.47%, XLP +2.03%, XLU +2.00%, XLV +1.64%, XLY +1.09% with not a one in the red.

Semis (SOX 613.71, +26.86 +4.58%) names were strong today as two bellwethers in the sector reported quarterly earnings. Components Seagate Tech (STX 29.05, +2.30 +8.58%) and Western Digital (WDC 47.98, +2.29 +5.01%) reported quarterly results which for the most part beat expectations on the top and bottom lines. Both stocks saw some nice gains into the opening of the session, and ultimately both finished up on the day. Other SOX components which showed strength today included MU +11.58%, QRVO +7.99%, NXPI +6.40%, SWKS +6.37%, AMAT +5.82%, AVGO +5.81%, ARMH +5.74%, MRVL +5.61%, ON +5.55%.

In the S&P 500 Information Technology sector (685.91, +23.61 +3.56%), action was helped by a majority of big names reporting quarterly results. Among them, credit card giant Visa (V 74.49, +5.16 +7.44%) saw strong upside today as the company reported quarterly results after last night's bell. Another outperformer on the session was component Microsoft (MSFT 55.09, +3.03 +5.83%), which also reported quarterly results last night and also saw nice gains on Friday. Other components which closed the session TSS +5.77%, XRX +5.63%, PYPL +5.55%, ADBE +5.45%, TDC +5.18%, JNPR +5.08%, NVDA +4.42%, CSC +4.26%, FSLR +4.22%, RHT +3.95%.

Other notable news items among sector components:

Xerox (XRX 9.75, +0.52 +5.63%) to separate into two independent publicly-traded companies. XRX also reported Q4 results, and announced that it entered into an agreement with Carl Icahn whereby Icahn will appoint three directors to the Board.
A Bloomberg article highlighted that Apple (AAPL 97.34, +3.25 +3.45%) is working on a wireless-charging phone.

Harris (HRS 86.97, +2.18 +2.57%) received a $316 million cost-plus-award-fee contract modification to build two payloads for the fourth and fifth weather satellites for NASA.
Cisco Systems' (CSCO 23.79, +0.69 +2.96%) Chief Development Officer Pankaj Patel notified the company of his decision to step down during the second half of 2016.

IBM (IBM 124.79, +2.57 +2.10%) has closed the acquisition of The Weather Company's B2B, mobile and cloud-based web-properties, weather.com, Weather Underground, The Weather Company brand and WSI, its global business-to-business brand. The cable TV segment was not acquired by IBM, but will license weather forecast data and analytics from IBM under a long-term contract.

Intel (INTC 31.02, +1.05 +3.50%) promoted two corporate officers and elected six new corporate vice presidents. Steven Fund was promoted from corporate vice president to senior vice president; Peng Bai was elected corporate vice president; Brice Hill was elected corporate vice president; Christina Min was elected corporate vice president; Matthew Smith was elected corporate vice president; Weng Kuan Tan was elected corporate vice president; Jason Waxman was elected corporate vice president.

Yahoo! (YHOO 29.51, +0.76 +2.64%) launched The Vertical with Woj, a new basketball-centric digital destination run by Yahoo NBA insider, Adrian Wojnarowski.

Amphenol (APH 49.57, +1.11 +2.29%) confirmed its Board of Directors approved the Q1 dividend of $0.14 per share. Will be paid on or about April 6, 2016 to shareholders of record as of March 15, 2016.

Elsewhere in the technology space:

BlackBerry (BBRY 7.12, +0.25 +3.64%) received TSX approval to increase maximum number of common shares that may be repurchased to 27 million from 12 million.

Intelsat (I 3.34, +0.04 +1.21%) appointed Jacques Kerrest as CFO.

USA Tech (USAT 3.22, +0.24 +8.05%) named Leland Maxwell interim CFO.

In reaction to quarterly results:

Microsoft (MSFT) reported better than expected Q2 EPS and revenues of $0.78 and $25.69 billion, respectively. On the conference call, MSFT guided for Q3 productivity and business revs of $6.4-6.6 billion, Q3 intelligent cloud segment revs of $6.1-6.3 billion, Q3 personal computing revs of $9.1-9.4 billion, and Q3 OpEx of $7.7-7.8 billion.

Visa (V) reported better than expected Q1 EPS of $0.69 on worse than expected revenues of $3.56 billion. Also, the company expects client incentives as a percent of gross revenues in the range of 17.5% to 18.5% range.

MasterCard (MA 88.77, +5.39 +6.46%) reported better than expected Q4 EPS of $0.79 on worse than expected revenues of $2.52 billion. The company also guided on the conference call for FY16 at low end of FY16-18 outlook (low double digit net rev CAGR, mid-teens EPS CAGR) due to FX headwinds.

Electronic Arts (EA) reported better than expected Q3 EPS of $1.83 on slightly worse than expected revenues of $1.803 billion. The company also issued worse than expected guidance for the Q4 period of EPS of $0.40 and revenues of $875 million.

Xerox (XRX) reported better than expected Q4 EPS of $0.32 on revenues which fell 7.6% year-over-year to $4.65 billion. The company also issued guidance for the Q1 and FY16 period which was better than expected. For Q1, XRX sees EPS of $0.21-0.24 and for FY16, XRX sees EPS of $1.10-1.20.

NetSuite (N 69.37, +3.84 +5.86%) reported better than expected Q4 EPS of $0.05 on revenues which rose 30.6% year-over-year to $206.23 million. The company also guided Q1 EPS of $0.02-0.03 on revenues of $212-214 million. Also, management guided for FY16 EPS of $0.40-0.45 on revenues of $950-970 million.

Seagate Tech (STX) reported better than expected Q2 EPS and revenues of $0.82 and $2.99 billion, respectively.

Solera (SLH 54.26, -0.26 -0.48%) reported worse than expected Q2 EPS and revenues of $0.72 and $308 million, respectively.

Companies reporting quarterly results Monday morning: CYOU, NSSC, SOHU

Analyst actions:

SNDK was upgraded to Buy from Hold at Needham,
JNPR was upgraded to Outperform from Mkt Perform at Bernstein,
FLEX was upgraded at Raymond James and Stifel,
N was upgraded to Buy from Hold at Canaccord Genuity,
DST was upgraded to Outperform from Neutral at Robert W. Baird,
MSCC was upgraded to Outperform from Market Perform at Wells Fargo,
TEAM was upgraded to Mkt Outperform from Mkt Perform at JMP Securities,
PCCC was upgraded to Mkt Perform from Underperform at Raymond James,
CPSI was upgraded to Buy from Hold at Topeka Capital Mkts;
SYNA was downgraded to Buy from Strong Buy at Needham,
CY was downgraded to Neutral from Buy at Sterne Agee CRT,
NTCT was downgraded to Hold from Buy at Needham

Weekly Recap - Week ending 29-Jan-16True to this month's form, the past week featured a fair share of gyrations in equities, but when the week was done, the market was looking down on last Friday's close. The S&P 500 gained 1.8% for the week, narrowing its January decline to 5.1% while the tech-heavy Nasdaq ended the week higher by 0.5% to trim its January drop to 7.9%.

The major averages were able to register their second consecutive weekly gain, but relative weakness in biotechnology and large cap names like Apple (AAPL), Amazon (AMZN), and Qualcomm (QCOM) kept the tech-heavy Nasdaq behind the broader market. Amazon reported below-consensus results while Apple and Qualcomm beat estimates, but cautious guidance from the two induced profit taking in their respective shares. To be fair, Facebook (FB) and Microsoft (MSFT) provided some counterbalance in the Nasdaq after both reported above-consensus results.

However, it wasn't all earnings as the last week of January featured a fair dose of central bank talk and activity. The Federal Reserve released its January statement on Wednesday, leaving the door open to the potential of four rate hikes taking place before the end of 2016. Meanwhile, the Bank of Japan took a step in the opposite direction by announcing the introduction of negative interest rates into its policy arsenal. Instead of paying interest, the central bank will now charge a rate of 0.1% to accounts held by financial institutions. The decision was spurred by a 5-4 vote, leading to a slide in the yen while the Nikkei and other global equity markets surged on Friday.

The Bank of Japan decision weighed on the yen, leading to a 220-pip (+1.9%) spike in the dollar/yen pair (121.05). The currency pair returned to late December levels while global equities surged, reflecting speculation among investors that actions from the BoJ may get in the way of the Federal Reserve's tentative plan for four rate hikes in 2016.

Eight sectors registered weekly gains between 0.7% (materials) and 4.3% (telecom services), but only three groups ended January in the green with consumer staples, utilities, and telecom services logging respective monthly gains of 0.5%, 4.9%, and 5.5%. On the flip side, the materials sector was the weakest performer, falling 10.6% in January while energy saw the slimmest January decline, dropping 3.1%.

Index Started Week Ended Week Change % Change YTD %
DJIA 16093.51 16466.30 372.79 2.3 -5.5
Nasdaq 4591.18 4613.95 22.77 0.5 -7.9
S&P 500 1906.90 1940.24 33.34 1.7 -5.1
Russell 2000 1020.76 1035.38 14.62 1.4 -8.8

9:02 am BlackBerry received TSX approval to increase maximum number of common shares that may be repurchased to 27 mln from 12 mln (BBRY) :

The co received approval from the Toronto Stock Exchange to amend its current normal course issuer bid in order to increase the maximum number of common shares that may be repurchased from 12,000,000 common shares, or 2.5% of the public float as at June 22, 2015 (the reference date for the NCIB), to 27,000,000 common shares, or 5.8% of the public float. BlackBerry also announced that it has entered into an automatic purchase plan with its designated broker to allow for purchases of up to 2,685,524 common shares in connection with the NCIB. Under TSX rules, BlackBerry is allowed to purchase daily, through the facilities of the TSX, a maximum of 578,619 common shares representing 25% of the average daily trading volume, as calculated per the TSX rules.The co does not expect that the amended NCIB will have a significant impact on BlackBerry's cash balance.

8:02 am Seagate Tech beats by $0.11, beats on revs (STX) :

Reports Q2 (Dec) earnings of $0.82 per share, $0.11 better than the Capital IQ Consensus of $0.71; revenues fell 19.2% year/year to $2.99 bln vs the $2.94 bln Capital IQ Consensus.Gross Margin 24.8%.Operating cash flow was $382 mln.

2:12 am Canadian Solar to receive a financing package of up to $70 mln in loans and equity investment from IFC (CSIQ) :

[ReturntoSender]

From Briefing.com:

http://finance.yahoo.com/news/tech-stocks-briefing-com-155520118.html?u

Super Bowl 50 slump...curse...whatever you want to call it, today was tough. A day out of the big game, the Nasdaq Composite touched its worst level since the Fall of 2014. Action was decidedly to the downside today as the market spent the entirety of the session on the defense. Winners were hard to come by, especially in the technology sector where action was led lower today by the likes of bellwether names like FB -4.2%, MSFT -1.5%, VZ -0.5%, QCOM -0.3%, GOOG -0.1%. Upon further review, the ruling at the start of the session was reversed as the markets posted a late-session comeback (albeit still ending lower). Able to close the gap, the late-day comeback was led by the Dow Jones Industrial Average which shed 177.92 points (-1.10%) today to end 16027.05. The S&P 500 was down 26.61 points (-1.42%) to 1853.44. Leading the way lower today was the Nasdaq, which lost 79.39 points (-1.82%) to 4283.75.

Technology (XLK 38.93, -0.57 -1.44%) again was an underperformer, but finished well off the daily lows. Tech name Yelp (YELP 16.06, -2.04 -11.27%) was volatile in the afternoon session as early an earnings leak too the stock on a wild ride as the session progressed into afternoon trade. Other sectors closed the session IYZ -3.26%, XLB -2.63%, XLF -2.53%, XLY -1.94%, XLV -1.37%, XLI -0.84%, XLE -0.52%, XLU -0.34%, XLP -0.26% with Telecom ending the worst performer.

Software (IGV 83.83, -3.07 -3.53%) names were pressured today by component Cognizant Tech's (CTSH 54.05, -4.49 -7.867%) worse than expected guidance. The company reported better than expected Q4 results, but the tepid Q1 and FY16 guidance pressured the stock and more broadly the sector. Other IGV components which displayed weakness included PCTY -17.7%, SPLK -11.9%, ZEN -11.6%, N -10.3%, PFPT -10.3%.

The S&P 500 Information Technology sector (638.73, -10.61 -1.63%) also displayed relative weakness, albeit ending well off daily lows. Component Cisco Systems (CSCO 22.93, +0.04 +0.17%) was upgraded this morning to a Neutral rating from an Underperform at Macquarie. Shares outperformed the broader market and the broader sector today, ending as one of the only four other components which were in the green. Other components which were weak today included WDC -8.61%, CTSH -7.67%, CRM -7.62%, MU -7.55%, ADSK -5.89%, HPQ -5.45%, ADBE -5.38%, V -5.27%, VRSN -5.15%, AKAM -5.14%, AVGO -5.06%.

Other notable news items among sector components:


In conjunction with an early earnings release, Yelp (YELP) reported that CFO Rob Krolik will be stepping down and departing the company in the coming months. Krolik will continue to serve as the CFO until a replacement is found.

GoPro (GPRO 10.99, +1.03 +10.34%) entered into a new collaborative patent licensing agreement with Microsoft's (MSFT 49.41, -0.75 -1.50%) licensing unit.

The Board of OzForex Group Limited announced that it has terminated discussions with Western Union (WU 17.41, -0.15 -0.85%) in relation to the preliminary, non-binding, indicative conditional proposal to acquire 100% of the shares of OFX via scheme of arrangement previously announced on 19 November 2015.

Royal DSM announced a new, multi-year agreement between Corning (GLW 17.96, -0.38 -2.05%) that will provide fiber solutions to the telecommunications industry.

eBay's (EBAY 22.48, -0.72 -3.10%) StubHub announced the upcoming launch of its new ticketing platform, which offers partners a reimagined rightsholder branded experience, full market visibility, data ownership and the listing of primary and secondary ticket inventory in a single marketplace.

Microchip (MCHP 41.22, -1.00 -2.37%) announced the introduction of automotive-grade NOR Flash products with wider voltage and a larger temperature range.

Elsewhere in the technology space:

BroadSoft (BSFT 28.87, -2.24 -7.20%) acquired Transera. For 2016, BSFT expects the acquisition to contribute about $7-8 million in revenue and be about $0.02 to $0.03 dilutive to our non-GAAP earnings.

Orange (ORAN 16.65, -0.23 -1.36%) to acquire Millicom International Cellular (MIICF 42.73, -0.97 -2.22%) subsidiary in the Democratic Republic of the Congo.

Trimble (TRMB 19.03, -0.28 -1.45%) announced the acquisition of London/New York based Sefaira Ltd., expanding TRMB's Design-Build-Operate (DBO) portfolio to include tools for designing high-performing buildings early in the conceptual phase of a project. Financial terms of the transaction were not disclosed.

In reaction to quarterly results:

During the session, social media name Yelp (YELP) reported Q4 EPS of $0.11 on revenues which rose 39.9% year-over-year to $153.7 million. The company also guided Q1 revenues better than expected at $154-157 million and FY16 revenues better than expected at $685-700 million.

Cognizant Tech (CTSH) reported better than expected Q4 EPS of $0.80 on revenues which rose 17.9% year-over-year to $3.23 billion. The company also guided Q1 EPS and revenues worse than expected at $0.79-0.80 and $3.18-3.24 billion, respectively. Also, CTSH issued worse than expected FY16 EPS guidance of $3.32-3.44 on in-line revenues of $13.65-14.20 billion.

ON Semiconductor (ON 7.40, -0.65 -8.07%) reported better than expected Q4 EPS of $0.19 on revenues which fell 2.8% year-over-year to $840.3 million. The company also guided Q1 revenues in-line at $800-840 million.

WEX (WEX 60.14, -7.41 -10.97%) reported better than expected Q4 EPS and revenues of $1.15 and $212.6 million, respectively. WEX also reported worse than expected Q1 EPS and revenue guidance of $0.80-0.88 and $190-200 million, respectively. For FY16, WEX also sees worse than expected EPS and revenue of $3.80-4.10 and $860-890 million, respectively.

Virtusa (VRTU 37.39, -5.35 -12.52%) reported Q3 EPS of $0.54 and revenues which rose 22.4% year-over-year to $150.6 million. The company also issued worse than expected guidance for Q4 EPS and revenues of $0.44-0.46 and $172-175 million, respectively.

Companies reporting quarterly results tonight/tomorrow morning: GIG, MXL, MODN, QLYS/ALLT, BHE, ENTG, FIS, VSH

Analyst actions:

CSCO was upgraded to Neutral from Underperform at Macquarie,
GLOB was upgraded to Buy from Neutral at Citigroup,
PLUS was upgraded to Buy from Neutral at Sidoti,
ULTI was upgraded to Outperform from Mkt Perform at FBR Capital;
DATA was downgraded to Equal Weight from Overweight at Morgan Stanley

http://finance.yahoo.com/news/inplay-briefing-com-055139997.html#

4:06 pm Advanced Energy appoints Grant Beard as Chairman (AEIS) :

Co announces that Terry Hudgens has decided to retire and not stand for re-election to the board.Beard has been a director of the company since 2014 and is the chair of the board's nominating & governance committee.

4:20 pm : The stock market ended its first session of the week with moderate losses despite strong buying interest in the final hour of trade. Today's trade was dominated by concerns regarding slowing global growth, a decline in oil, and the ability to sustain further fed funds rate hikes. Trade saw a flight from risk assets to safe-haven investments amid growing uncertainty. The Nasdaq Composite (-1.8%) ended its day behind both the S&P 500 (-1.4%) and the Dow Jones Industrial Average (-1.1%).

Over the weekend, China released data that showed a $100 billion decline in its foreign exchange reserves, moving the reserves to their lowest level since May 2012. This weighed on global markets as they began to question how much longer the People's Bank of China can prop up the yuan. On a related note, China's Shanghai Composite is closed for the week for the Lunar New Year.

Ahead of today's session European regional indices responded to growing uncertainty of the future of the fed funds rate, which was blurred after the January Employment Situation Report revealed misses in headline metrics but could still be used to justify rate increases due to shrinking unemployment and wage growth. European markets followed our rout with a day-long decline of their own. European banks led the decline with Deutsche Bank (DB 15.54, -1.35) falling 8.0% amid concerns over the state of the bank's balance sheet and derivative exposure. The decline widened Deutsche Bank's 2016 dive to 38.7% and was so jarring that the bank came out with a press release defending its capital position, saying it has roughly EUR1 billion in 2016 payment capacity, enough to pay EUR350 million in Tier 1 coupons that will mature in April.

Oil succumbed to early selling pressure from the European session and surrendered the $30.00/bbl during U.S. pre-market trading. WTI crude was able to reclaim this level during today's session but was unable to close its pit session above that mark. WTI crude settled lower by 3.8% at $29.94/bbl. Elsewhere in commodities, gold remained on a torrid pace, extending its 2016 gain to 6.7% amid growing fears that the Fed may have committed a policy error. Today, the yellow metal climbed 3.5% to $1,197.50/ozt.

The commodity-sensitive materials sector (-2.7%) ended its day behind the other groups with financials (-2.6%) and consumer discretionary (-2.0%) following. The countercyclicals led throughout the day with telecom services (-0.4%) and consumer staples (-0.3%) showing the slimmest losses.

The financial sector mirrored concerns in Europe as the economically-sensitive group retreated following the decline in European banks. Money center banks Bank of America (BAC 12.27, -0.68) and Citigroup (C 37.81, -2.05) showed relative weakness with respective losses of 5.3% and 5.1%. Including today's performance, the group has declined 6.2% in February and 14.6% since the end of 2015.

The heavyweight technology space (-1.6%) recovered from early weakness with market cornerstones leading a rally during the final hour. Facebook (FB 99.75, -4.32), and Microsoft (MSFT 49.41, -0.75) climbed off their worst levels, but still ended lower by 4.2% and 1.5%, respectively. Yelp (YELP 16.06, -2.04) surrendered 11.3% after releasing its Q4 earnings during the session. The company reported an EPS miss on in-line revenue. Yelp also announced that CFO Rob Krolik will be stepping down by December 15 or when a replacement is found.

Biotechnology continued to show relative weakness in the health care space (-1.4%), evidenced by the 3.2% decline in the iShares Nasdaq Biotechnology ETF (IBB 248.12, -8.12).

In the commodity sensitive energy space, Chesapeake Energy (CHK 2.21, -0.85) plunged 27.8% after early reports stated that the company hired attorneys for restructuring measures. The stock rebounded slightly after the company announced that they will not be pursuing bankruptcy and that Kirkland & Ellis will advise them on ways to strengthen its balance sheet.

On the currency front, the yen rallied 0.9% against the dollar in safe-haven trade. The pair traded at 115.70 at the close of U.S. trade.

Safe-haven investments outperformed today with gold and bonds rallying. The yield on the 10-yr ended the session lower by eight basis points at 1.76%

Today's participation was true to recent form with more than a billion shares changing hands at the NYSE floor.

Investors did not receive any noteworthy data today and tomorrow's economic news will be limited to the 10:00 ET release of the Wholesale Inventories report for December (Briefing.com consensus 0.0%).

Russell 2000 -14.7% YTD
Nasdaq -14.5% YTD
S&P 500 -9.3% YTD
Dow Jones -8.0% YTD

DJ30 -177.92 NASDAQ -79.39 SP500 -26.61 NASDAQ Adv/Vol/Dec 808/2.147 bln/2294 NYSE Adv/Vol/Dec 624/1.315 bln/2476 3:40 pm :

The dollar index continued to slide lower today, which helped give a boost to some commodities
However, oil prices sold off back below $30/barrel today following news that the meeting with Saudi Arabia and Venezuela didn't result in much
Ultimately, Mar crude closed the day -3.8% at $29.71/barrel
Nat gas rallied today, closing with gains of +4% to $2.14/MMBtu (Mar)
Precious metals showed impressive gains today, closing near today's highs
Mar silver rallied +4% to $15.44/oz while Apr gold ran +3.5% to $1197.90/oz

6:23 am Taiwan Semi comments on the February 6 earthquake in Taiwan, expects minimal impact (TSM) :

The co announced that the earthquake of 6.4 magnitude which struck southern Taiwan at 3:57 am on February 6, 2016 did not cause any serious personnel injuries nor any structural or facility damage to the Company's Fab 14 and Fab 6 manufacturing sites in the Tainan Science Park. The earthquake also did not cause equipment to shift position.

Damage to wafers in progress remains under assessment, but TSMC's initial estimate is that more than 95 percent of the tools can be fully restored to normal in two to three days. The company is deploying personnel from Hsinchu and Taichung sites to support recovery in Tainan, and does not expect the earthquake to affect first quarter 2016 wafer shipment by more than 1 percent. ChipMOS Technologies (IMOS) confirmed that none of its employees were harmed by an earthquake that occurred at 3:57 AM local time Saturday in Southern Taiwan. Co reports only very minor impact.

3:10 am ON Semiconductor beats by $0.01, reports revs in-line; guides Q1 revs in-line (ON) :

Reports Q4 (Dec) earnings of $0.19 per share, $0.01 better than the Capital IQ Consensus of $0.18; revenues fell 2.8% year/year to $840.3 mln vs the $839.45 mln Capital IQ Consensus. Co issues in-line guidance for Q1, sees Q1 revs of $800-840 mln vs. $839.45 mln Capital IQ Consensus Estimate.Backlog levels for the first quarter of 2016 represent approximately 80 to 85 percent of our anticipated first quarter 2016 revenue. Average selling prices for the first quarter of 2016 are expected to be down approximately two percent when compared to the fourth quarter of 2015.

[ReturntoSender]

From Briefing.com: This week ended with the broader market split on Friday. Losses were led by the Dow Jones Industrial Average which shed 57.32 points (-0.34%) to 16639.97. The S&P 500 lost 3.65 points (-0.19%) to 1948.05. The lone gains today were enjoyed by the Nasdaq Composite which added 8.27 points (+0.18%) to close 4590.47. Today's action led the three major US indices to close the week -4.5%, -4.7% and -8.3% YTD, respectively.

Market data today came as the second estimate indicated fourth quarter GDP increased at an annual rate of 1.0% versus the advance estimate of 0.7%. The GDP deflator was revised up to 0.9% from 0.8%. In addition, the personal income and spending report for January produced a slate of good economic news as income increased 0.5% month-over-month, spending increased 0.5% and the core PCE Price Index, which includes food and energy, increased 0.3%. The final reading for the University of Michigan Consumer Sentiment Index for February checked in at 91.7 above the preliminary reading of 90.7.

Action in the Technology (XLK 41.26, -0.11 -0.27%) sector was much like that in the broader market, at least in terms of overall trading action. Component Computer Sciences (CSC 28.53, +0.65 +2.33%) was downgraded to Neutral from Buy at Citigroup intraday, but the stock remained higher for the majority of the session. Other sectors closed today XLB +1.45%, IYZ +0.86%, XLF +0.71%, XLE +0.60%, XLI +0.13%, XLY -0.11%, XLV -0.18%, XLP -1.41%, XLU -2.76% with the advance led by Materials and Utilities lagging.

Internet (FDN 65.59, +0.62 +0.95%) names were mostly higher ahead of component Ebix's (EBIX 34.27, +0.40 +1.18%) quarterly print which is scheduled for Monday morning. Other components which finished the session in the green included TRUE +9.69%, GRPN +8.45%, RAX +8.11%, DWRE +5.97%, LPSN +5.76%, N +4.57%, EIGI +4.47%, ETFC +4.35%, AMTD +3.07%, PYPL +2.04%, TWTR +1.99%.

Semi (SOXX 84.67, +0.54 +0.64%) names were again among the best performers as component SunEdison (SUNE 2.26, +0.54 +31.40%) was strong following confirmation last night that the Delaware Chancery court ruled in denial of Appaloosa Management's request for a preliminary injunction and said 'We are gratified that the court denied the injunction'. Other SOXX components which finished higher included MCHP +2.44%, LRCX +1.91%, NXPI +1.88%, QRVO +1.85%, CAVM +1.29%, ARMH +1.24%, ON +1.21%, CREE +1.09%, ASML +1.00%, ADI +0.87%, SNDK +0.84%.

In the S&P 500 Information Technology sector (680.17, -1.93 -0.28%), trading managed modest losses as early gains were not held for long and the modest weakness continued throughout the session. Component Autodesk (ADSK 51.19, +1.77 +3.58%) was among the best performing stocks today as the company reported better than expected Q4 EPS and revenues last night. Other components which finished the session higher included FFIV +1.22%, MSI +1.08%, GLW +1.05%, KLAC +0.77%, INTC +0.61%, WU +0.60%, AMAT +0.58%, SWKS +0.54%, HRS +0.53%, AKAM +0.51%.

Other notable news items among sector components:

Cisco Systems (CSCO 26.41, -0.19 -0.71%) Executive Chairman John Chambers modified his pre-arranged stock trading plan.

Accenture (ACN 101.12, +0.21 +0.21%) launched a new business, Accenture Customer Credit Solutions, which will help businesses and retailers across Sub-Saharan Africa provide faster, efficient and more flexible credit services to their customers.

Teradata (TDC 25.11, -0.02 -0.08%) updated on charges it expects to incur in connection with its business transformation plan. TDC now estimates it will incur costs and charges in the range of about $182 to $230 million (versus the prior expectation of about $75-100 million) related to the business transformation.

Elsewhere in the tech sector:

In addition to reporting quarterly results, Starz (STRZA 23.85, +1.06 +4.65%) announced an addition of $400 million to the share repurchase program.

SciQuest (SQI 12.41, +0.62 +5.26%) authorized a $30 million repurchase program.

Nintendo (NTDOY 16.75, -1.30 -7.20%) lowered their net sales forecast to JPY500 billion from JPY 570 billion as a result of the sales performance for the nine months, in addition to yen appreciation. Also, NTDOY lowered their forecast for net income to JPY 141.52 from JPY 291.35.

Scripps Networks Interactive (SNI 59.41, +1.62 +2.80%) acquired the remaining 35% interest in Travel Channel Media from Cox Communications Inc, for $99 million in cash, which includes the value of certain tax benefits. The transaction gives Scripps Networks Interactive full ownership of the fully-distributed network in which it originally acquired a controlling interest in 2009. Separately, SNI announced the sale of its 7.25% ownership interest in Fox-BRV Southern Sports Holdings LLC, comprising the Sports South and Fox Sports Net South regional television networks, to Fox Southern Holdings, Inc., for $225 million in cash.

In reaction to quarterly results:

Baidu.com (BIDU 173.80, +15.58 +9.85%) reported worse than expected Q4 EPS of $1.18 on better than expected revenues which also rose 33% YoY to $2.89 billion. The company also guided Q1 revenues worse than expected at $2.379-2.465 billion.

Intuit (INTU 95.75, -4.32 -4.32%) reported better than expected Q2 EPS and revenues of $0.25 and $923 million, respectively. The company also guided Q3 EPS and revenues slightly better than expected at $3.15-3.20 and $2.21-2.26 billion, respectively. INTU also reaffirmed FY16 EPS and revenue guidance of $3.45-3.50 and $4.525-4.600 billion.

Palo Alto Networks (PANW 147.58, +7.29 +5.20%) reported better than expected Q2 EPS and revenues of $0.40 and $334.7 million, respectively. The company also guided Q3 EPS worse than expected at $0.41-0.42, but guided Q3 revenues better than expected at $335-339 million.

SBA Comm (SBAC 94.66, -1.94 -2.01%) reported better than expected Q4 EPS of $1.43 on revenues which were essentially flat YoY to $406.9 million. Also, SBAC guided Q1 revenues worse than expected at $391.5-401.5 million. The company also issued in-line expectations for FY16 revenues of $1.619-1.659 billion.

Autodesk (ADSK) reported better than expected Q4 EPS and revenues of $0.21 and $648.3 million. For Q1, the company sees worse than expected EPS and revenues of ($0.14)-($0.12) and $500-520 million, respectively. ADSK also issued in-line FY17 EPS guidance of ($0.85)-($0.60), but worse than expected revenue guidance of $1.95-2.05 billion.

Ingram Micro (IM 35.67, -0.16 -0.45%) reported worse than expected Q4 EPS and revenues of $1.01 and $11.31 billion, respectively.

Starz (STRZA) reported worse than expected Q4 EPS of $0.26 on in-line revenues of $427.6 million.

Companies scheduled to report quarterly results Monday morning: BSFT, EBIX, IMN, TRCO

Analyst actions:

PANW was upgraded to Buy from Neutral at BofA/Merrill,
RATE was upgraded to Neutral at Sell at Goldman,
DISH was upgraded to Hold from Reduce at HSBC,
FLTX was upgraded to Outperform from In-Line at Imperial Capital;
CSC was downgraded to Neutral from Buy at Citigroup,
I was downgraded to Market Perform from Outperform at Wells Fargo

Weekly Recap - Week ending 26-Feb-16The stock market registered its second consecutive weekly advance with the S&P 500 climbing 1.6%. The benchmark index extended its two-week rally to 4.5%, turning its February loss to a 0.4% gain. The Nasdaq outpaced the benchmark index this week (+1.9%), but remains down 0.5% for the month.

To little surprise, this week's rally in equities occurred alongside a bid in the crude oil market, which sent the energy component higher by 3.2% to $32.75/bbl. Interestingly, the energy sector was among the weakest performers, climbing just 0.4% for the week.

Several reports suggested that equity investors were longing for some sort a coordinated intervention being agreed to at the weekend G-20 summit in Shanghai, but U.S. Treasury Secretary Jack Lew cautioned not to expect any sort of a crisis response outside of a commitment to fiscal reforms. On a related note, German Finance Minister Wolfgang Schaeuble said on Friday that the debt-financed growth model has reached its limits and that there is no shortage of policy proposals, but rather a lack of policy implementation.

The rally in equities hit a speed bump on Friday after the second revision to fourth quarter GDP (+1.0%; Briefing.com consensus 0.4%) and January Core PCE Prices (+0.3%; Briefing.com consensus 0.1%) strengthened the case for the Federal Reserve's rate hike argument. The PCE Price Index is the Fed's preferred inflation gauge and it followed hotter than expected January PPI (+0.1%; Briefing.com consensus -0.2%), core PPI (+0.4%; Briefing.com consensus 0.0%), CPI (0.0%; Briefing.com consensus -0.1%), and core CPI (+0.3%; Briefing.com consensus +0.1%) readings. As a result, the fed fund futures market saw a shift in rate hike expectations with the market now pricing in a 53.0% chance of the next hike in December after not expecting another hike until after February of 2017 prior to Friday's session.

Index Started Week Ended Week Change % Change YTD %
DJIA 16391.99 16639.97 247.98 1.5 -4.5
Nasdaq 4504.43 4590.47 86.04 1.9 -8.3
S&P 500 1917.78 1948.05 30.27 1.6 -4.7
Russell 2000 1010.01 1037.17 27.16 2.7 -8.7


4:12 pm Closing Market Summary: PCE Reading Leads Indices Off Highs (:WRAPX) :

The stock market ended an upbeat week with a hiccup as the implications of a hotter than expected core PCE reading (0.3%; Briefing.com consensus of 0.1%) augmented concerns regarding a sooner than expected Fed rate hike. Today's trade saw a continuation of oil and equities moving largely in tandem while the heavyweight financial sector (+0.9%) maintained its recent leadership role. The Nasdaq Composite (+0.2%) managed to finish ahead of the S&P 500 (-0.2$) and the Dow Jones Industrial Average (-0.3%).

The major averages slipped from their morning highs shortly after the hotter than expected Personal Income and Spending report was released. The data received a good deal of attention today as the PCE Index is the Fed's preferred inflation gauge, and this reading can be seen as supportive of further rate hikes. As a result, the economically-sensitive financial space (+0.7%) was able to remain ahead of the broader market and only trailed the materials space (+1.3%). Despite today's outperformance, the financial sector still shows the largest monthly loss (-2.1%) out of the ten economic sectors.

The commodity-sensitive materials and energy (+0.4%) groups enjoyed an early rally alongside crude oil this morning. However, that rally lost some momentum as the energy component struggled to maintain the height of its advance ($34.66/bbl). To be fair though, oil has jumped 3.2% since its pit close last Friday. As for today, WTI crude ended higher by 1.1% at $32.75/bbl.

The energy group pared most of its advance after oil slipped from its high, but independent oil and gas names were still able to top the sector. On that note, Apache (APA 39.47, +1.68) and ConocoPhillips (COP 34.12, +1.06) climbed a respective 4.5% and 3.2%. Interesting to note, both companies received downgrades from Moody's on their senior unsecured notes (to Baa3 and Baa2, respectively).

The influential technology sector (-0.3%), ended its day behind the broader market. Underperformance from sector-large caps contributed to the broader weakness as Microsoft (MSFT 51.30, -0.80) and Alphabet (GOOGL 724.86, -4.26) ended lower by 1.5% and 0.6%, respectively.

Meanwhile, health care (-0.2%) abandoned some early strength as large-caps also anchored that group. Conversely, biotechnology demonstrated relative strength with the iShares Nasdaq Biotechnology ETF (IBB 261.49, +2.17) climbing 0.8%. For the week, the ETF climbed 1.1%

Today's trade saw relative weakness among the countercyclical sectors with health care (-0.2%), telecom services (-0.4%), consumer staples (-1.4%), and utilities (-2.7%) all finishing behind the broader market.

The greenback strengthened today, evidenced by the 0.8% gain in the U.S. Dollar Index (98.09, +0.80). The euro/dollar pair finished at 1.0937 (-0.7%) while the dollar/yen rose to 113.94 (+0.9%).

The Treasury complex began its day broadly lower and remained largely range bound throughout the session. The yield on the 10-yr note managed to close off its high (1.78%), but remained up four basis points at 1.76%.

Today's participation was once again beneath the recent average with fewer than 1.005 billion shares changing hands at the NYSE floor.

Today's economic data included the the second estimate of Q4 GDP, PCE Prices for January, and the final reading of the February Michigan Sentiment Index:

The second estimate indicates fourth quarter GDP increased at an annual rate of 1.0% (Briefing.com consensus 0.4%) versus the advance estimate of 0.7%. The GDP Deflator was revised up to 0.9% (Briefing.com consensus 0.8%) from 0.8%.The good is that fourth quarter GDP was revised up. The bad is that we're still only talking 1.0% growth. The upward revision was basically the result of private inventory investment decreasing less than previously estimated. With the advance estimate, the change in inventories subtracted 0.45 percentage points from GDP growth, yet the second estimate showed a drag of only 0.14 percentage points.The drag from net exports was also less as it subtracted 0.25 percentage points from GDP growth versus 0.47 percentage points in the advance estimate.
Personal spending saw a slight downward revision to 2.0% growth with the second estimate versus 2.2% in the advance estimate. That downtick was led by lower spending on durable and nondurable goods.
Final sales of domestic product, which exclude the change in private inventories, were unchanged at 1.2%.The Personal Income and Spending report for January produced a slate of good economic news. Income increased 0.5% month-over-month (Briefing.com consensus +0.4%), spending increased 0.5% (Briefing.com consensus +0.3%), and the core PCE Price Index, which excludes food and energy, increased 0.3% (Briefing.com consensus +0.1%).This compendium of data leans in the Fed's favor for rationalizing another rate hike. The pressing question is this: Might it be enough to prompt another rate increase at the March 15-16 FOMC meeting?Time will tell, yet there was some key support offered for the Fed's inflation view and the notion that the Fed is making progress toward reaching its 2.0% inflation target (remember, progress toward, not actual achievement, is the guiding principle these days for the Fed).
To this end, the PCE Price Index is up 1.3% year-over-year versus 0.7% in December. The core PCE Price Index is now up 1.7% year-over-year versus 1.5% in December.
The January income gain flowed from increases in all income variables, paced by a 0.7% increase in rental income and a 0.6% gain in wages and salaries.
The personal spending gain, in turn, stemmed from increases in spending on both goods (+0.4%) and services (+0.6%). Durable goods spending was up 1.2% while nondurable goods spending was flat.
Real personal spending jumped 0.4%, which will be a positive input for first quarter GDP computations. The personal savings rate held steady at 5.2%.
The final reading for the University of Michigan Consumer Sentiment Index for February checked in at 91.7 (Briefing.com consensus 91.0) above the preliminary reading of 90.7. The final reading for January was 92.0. The Sentiment Index is 6.5% below its cyclical peak of 98.1 in January 2015, which the report suggests hardly merits a recession warning. For added perspective, the Sentiment Index hit a cyclical peak of 96.9 in January 2007 and then declined 27% to 70.8 in February 2008. Relative to the final January reading, the Current Economic Conditions Index improved to 106.8 in February from 106.4. The Index of Consumer Expectations dipped to 81.9 from 82.7. The release noted that consumers are a little more cautious about year-ahead prospects for the economy, but that the outlook for their personal financial situation has improved to its best level in ten years. Currently, consumers think the the slowdown in GDP growth will only have a slight negative impact on jobs.Keep in mind that the G20 Summit is taking place in Shanghai throughout the weekend.


Monday's economic data will include Chicago PMI for February (Briefing.com consensus 52.0) and Pending Home Sales for January (Briefing.com consensus +0.7%), which will be released at 9:45 ET and 10:00 ET, respectively.

Russell 2000 -8.4% YTDNasdaq -8.3% YTDS&P 500 -4.7% YTDDow Jones -4.5% YTDWeek in Review: Stocks and Rate Hike Odds on the Rise

The stock market registered its second consecutive weekly advance with the S&P 500 climbing 1.6%. The benchmark index extended its two-week rally to 4.5%, turning its February loss to a 0.4% gain. The Nasdaq outpaced the benchmark index this week (+1.9%), but remains down 0.5% for the month.

To little surprise, this week's rally in equities occurred alongside a bid in the crude oil market, which sent the energy component higher by 3.2% to $32.75/bbl. Interestingly, the energy sector was among the weakest performers, climbing just 0.4% for the week.

Several reports suggested that equity investors were longing for some sort a coordinated intervention being agreed to at the weekend G-20 summit in Shanghai, but U.S. Treasury Secretary Jack Lew cautioned not to expect any sort of a crisis response outside of a commitment to fiscal reforms. On a related note, German Finance Minister Wolfgang Schaeuble said on Friday that the debt-financed growth model has reached its limits and that there is no shortage of policy proposals, but rather a lack of policy implementation.

The rally in equities hit a speed bump on Friday after the second revision to fourth quarter GDP (+1.0%; Briefing.com consensus 0.4%) and January Core PCE Prices (+0.3%; Briefing.com consensus 0.1%) strengthened the case for the Federal Reserve's rate hike argument. The PCE Price Index is the Fed's preferred inflation gauge and it followed hotter than expected January PPI (+0.1%; Briefing.com consensus -0.2%), core PPI (+0.4%; Briefing.com consensus 0.0%), CPI (0.0%; Briefing.com consensus -0.1%), and core CPI (+0.3%; Briefing.com consensus +0.1%) readings. As a result, the fed fund futures market saw a shift in rate hike expectations with the market now pricing in a 53.0% chance of the next hike in December after not expecting another hike until after February of 2017 prior to Friday's session.

9:08 am Benchmark Electronics: Engaged capital responds to one of its Director nominee's consent withdrawal (BHE) : Engaged states, "Engaged Capital was disappointed to learn that Lisa M. Kelly, one of Engaged Capital's nominees with significant industry experience, including 11 years as a senior executive at one of BHE's competitors prior to her current role at Avnet, Inc., has withdrawn her consent to serve as a nominee. Engaged Capital believes that the Company intervened with Ms. Kelly's employer in an attempt to pressure her to withdraw and frustrate Engaged Capital's efforts to reconstitute the Board to include individuals with significant industry experience. The Company's contention that it offered Engaged Capital an opportunity to offer an alternative candidate to Ms. Kelly is a fabrication. At no time was any such offer made to Engaged Capital."

Other news: VSLR +35.7% (Judge has ruled David Tepper's Appaloosa can't block a key aspect of SunEdison's (SUNE) pending acquisition of Vivint),SUNE +30.2% (Judge has ruled David Tepper's Appaloosa can't block a key aspect of SunEdison's (SUNE) pending acquisition of Vivint),

Intel (INTC) Security announced McAfee Mobile Security will be pre-installed on the latest smartphone from LG Electronics, the LG G5, to enable users to connect with more confidence. This extends an existing agreement

[ReturntoSender]

From Briefing.com: 4:57 pm SunEdison suspends dividends on preferred stock (SUNE) : Co announced that it has suspended payment of quarterly dividends on the Company's 6.75% Series A Perpetual Convertible Preferred Stock. Dividends on the Perpetual Convertible Preferred Stock are payable in cash or common stock (with a floor price of $7.34) and suspended dividends will accumulate in arrears. The Company's Board of Directors intends to reassess its dividend policy on an ongoing basis.

4:31 pm Semtech beats by $0.01, beats on revs; guides Q1 above consensus (SMTC) :

Reports Q4 (Jan) earnings of $0.17 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.16; revenues fell 9.0% year/year to $118.6 mln vs the $116.08 mln Capital IQ Consensus. Co issues upside guidance for Q1, sees EPS of $0.26-0.30, excluding non-recurring items, vs. $0.24 Capital IQ Consensus Estimate; sees Q1 revs of $124-132 mln vs. $117.85 mln Capital IQ Consensus Estimate.

The broader market closed Wednesday higher after spending most of the day in negative territory. Truth be told, the markets did not know which way to trade today, as action often was green one minute and red the next. A volatile session coming off strong gains yesterday culminated in the S&P 500 leading action higher by adding 8.10 points (+0.41%) to close 1986.45. The Nasdaq Composite followed, up 13.83 points (+0.29%) to close 4703.42, and the Dow Jones Industrial Average advanced 34.24 points (+0.20%) to close 16899.32. The markets managed back-to-back gains following the weekly MBA Mortgage Index which showed a seasonally adjusted decrease of 4.8% in mortgage applications. Also, the ADP National Employment Report showed a 214,000 increase in February and the Fed Beige Book which described overall economic activity across the twelve Fed Districts as expanding at a "modest" or "moderate" pace.

Sectors closed the session XLE +2.45%, IYZ +1.47%, XLF +1.10%, XLU +0.52%, XLP +0.29%, XLV +0.16%, XLI +0.08%, XLY -0.09%, XLB -0.40% as Technology (XLK 42.31, +0.12 +0.28%) finished near the middle of the pack on mostly negative action (until the final half hour of trading). Component eBay (EBAY) saw pressure on the session as the stock was initiated before the bell with a Market Perform rating at BMO Capital.

Chinese Tech (QQQC 20.41, +0.45 +2.24%) names were strong today as a +4.1% finish to the Nikkei and a +3.1% finish to the Hang Seng indices drove names higher. The region-wide rally masked some movement on the foreign exchange front where the People's Bank of China set the yuan fix at its lowest level since early February (6.5490). Meanwhile, Moody's lowered its outlook on Chinese public debt to 'Negative' from 'Stable', but affirmed the country's AA3 rating. Elsewhere, Bank of Japan Governor Haruhiko Kuroda appeared in parliament once again, reiterating that the central bank expects to hit the 2.0% inflation target during the first half of 2017. QQQC names which closed the session higher included NQ +6.33%, VNET +4.74%, SMI +3.50%, QIHU +2.61%, ATHM +2.16%, SINA +1.25%.

Solar (TAN 23.96, +0.65 +2.79%) names were among the best performing sub-sector today as component SunEdison (SUNE 1.79, +0.29 +19.33%) led the pack higher following near-end-of-day reports that the company's takeover of Vivint Solar (VSLR 4.89, -1.63 -25.00%) was in jeopardy. The report sent VSLR's stock to lows of the session and losses remained a minute-by-minute occurrence until the bell finally rang. Today, many solar names were on a rebound as the broader market felt pressure as the sector as a whole has been somewhat beaten down for an extended period of time. Other TAN names which finished ahead of the pack included SCTY +8.05%, SEDG +7.72%, TERP +6.53%, CSIQ +2.98%, TSL +2.15%, JASO +2.01%.

In the S&P 500 Information Technology sector (697.70, +1.27 +0.18%), trading ended at highs of the day, albeit at moderate gains. Component Cognizant Tech (CTSH 57.68, -0.53 -0.91%) was lower on the day as the company was selected by Bonnier Group, the Nordic-headquartered international media group, to standardize its finance and accounting processes. Other names which closed higher with the broader sector included MU +5.51%, XRX +2.72%, WDC +2.71%, STX +2.11%, CSC +1.58%, FFIV +1.50%, IBM +1.44%, QCOM +1.42%, ADI +1.30%, AKAM +1.22%.

Other notable news items among sector components:

Cisco (CSCO 26.90, +0.07 +0.26%) confirmed its intent to acquire Israeli-based Leaba Semiconductor for about $380 million.

According to reports, IBM (IBM 136.30, +1.93 +1.44%) is planning to sell up to $150 million of its stake in Lenovo (LNVGY 16.42, -0.70 -4.09%).

Parkervision (PRKR 0.22 -0.00 -3.08%) filed a petition with the Supreme Court requesting a review of the decision of the US Court of Appeals for the Federal Circuit in ParkerVision v. Qualcomm (QCOM 52.85, +0.74 +1.42%).

Zynga (ZNGA 2.25, +0.09 +4.17%) appointed former Electronic Arts (EA 66.09, +0.61 +0.93%) unit EVP, Frank Gibeau, as CEO effective March 7. The company announced co-founder and current CEO Mark Pincus will serve as Executive Chairman.

Cognizant (CTSH) has been selected by Bonnier Group, the Nordic-headquartered international media group, to standardize its finance and accounting processes.
German competitive authority Bundeskartellamt has initiated proceeding against Facebook (FB 109.95, +0.13 +0.12%) on suspicion of data protection rule infringement.

Elsewhere in the technology space:

NetSuite (N 61.73, -0.25 -0.40%) acquired IQity's cloud business. Financial terms of the deal were not disclosed.

NCR Corp (NCR 24.41, +0.06 +0.25%) acquired SaaS-based software firm CimpleBox. Financial terms of the deal were not disclosed.

Checkpoint Systems (CKP 10.20, +2.32 +29.44%) to be acquired CCL Industries for $10.15 per share in cash, or about $443 million.

Intelli-Check (IDN 1.13, +0.08 +7.62%) entered into an agreement providing for the repurchase of about 979K shares of common stock for about $1 million from former CEO Nelson Ludlow and former SVP Bonnie Ludlow.

Verizon (VZ 52.12, +0.66 +1.28%) and Hearst form Joint Venture for digital video consumers.

In reaction to quarterly results:

Tribune Publishing (TPUB 9.19, +0.69 +8.12%) reported better than expected Q4 EPS and revenues of $1.34 and $461.8 million, respectively. The company expects 2016 Cap Ex to be between $30-35 million.

InterXion (INXN 32.03, +0.53 +1.68%) reported better than expected Q4 EPS and revenues of 0.17 and 100.7 million. The company also issued in-line guidance for FY16 revenues of 416-431 million.

EPIQ Systems (EPIQ 14.11, +0.21 +1.51%) reported better than expected Q4 EPS and revenues of $0.29 and $136.3 million. EPIQ expects FY16 EPS of $0.87-0.90 on revenues of $520-540 million.

Veeva Systems (VEEV 25.76, +0.68 +2.71%) reported better than expected Q4 EPS and revenues of $0.12 and $114.3 million, respectively. For Q1, VEEV sees worse than expected EPS of $0.11 on better than expected revenues of $114.5-116 million. For FY17, VEEV expects EPS of $0.54-0.56 and revenues of $508-513 million.

Guidewire Software (GWRE 52.45, +1.93 +3.82%) reported better than expected Q2 EPS and revenues of $0.24 and $102.1 million, respectively. For Q3, GWRE expects in-line EPS and revenues of $0.40-0.08 and $90.3-94.3 million. For FY16, EPS is expected to come in better than the Street anticipations at $408.5-416.5 million.

TiVo (TIVO 8.00, -0.55 -6.43%) reported net breakeven for Q4 on revenues which rose 10.9% versus last year to $101.7 million. TIVO also reported EBITDA of $26.6 million for Q4. For FY17, TIVO gave worse than expected guidance for revenues in the range of $400-420 million.

Companies scheduled to report quarterly results tonight/tomorrow morning: CABO, DTSI, GSIG, PSTG, SMTC, SINA, WB/ALSK, CIEN, MEI, PRFT, SFE, SSYS, TECD, TRMR, TSL

Analyst actions:

MELI was upgraded to Hold from Reduce at HSBC,
RTMVY was upgraded to Hold from Underperform at Jefferies;
SNDK was downgraded to Neutral from Buy at Mizuho,
PSO was downgraded to Sell from Neutral at Goldman,
NOK was downgraded to Mkt Underperform from Mkt Perform at Charter Equity

4:10 pm : The stock market ended its Wednesday affair on a higher note as investors focused on rate hike implications from a better-than-expected reading of the ADP National Employment Report and rising oil prices. Meanwhile, strong sector leadership from the financial group (+0.9%) helped fuel today's advance. The S&P 500 (+0.4%) managed to outperform both the Nasdaq Composite (+0.3%) and the Dow Jones Industrial Average (+0.2%).

Before the opening bell, investors digested the February ADP Employment Change report, which indicated an increase of 214,000 over the past month (Briefing.com consensus 190,000). This above-consensus reading added to the recent slew of positive data that may lend itself to rationalizing a potential rate hike sooner than the market currently expects. Additionally, this report precedes the more influential Employment Situation Report, which will be released on Friday.

Separately, the Department of Energy's weekly inventory report showed a larger-than-expected crude inventory build (10.4 million barrel build; est 3.6 million). Despite the bearish reading oil managed to rise sharply after the report before ending its day off its best level. WTI crude ended its pit session higher by 0.5% at $34.57/bbl.

The positive move in oil helped the commodity-sensitive energy space (+2.5%) top the leaderboard as telecom services (+1.1%) and the financial sector (+0.9%) followed. Meanwhile, heavyweights health care (+0.2%) and technology (+0.2%) ended their day off their lows.

In the energy space, independent oil and gas names managed to top the leaderboard. On that note, Anadarko Petroleum (APC 42.65, +2.54) managed to climb 6.3% while ConocoPhillips (COP 36.49, +2.03) advanced 5.9%. Dow component Exxon Mobil (XOM 82.70, +1.42) gained 1.8% after the company stated, at its analyst meeting, that it could fund new capital projects as well as maintain its dividend.

Economically-sensitive financials (+0.9%) likely benefited from potential increases in their earnings prospects as the fed fund futures market estimates the likelihood of a rate increase at the FOMC's December meeting at 63.0%. Meanwhile, the sector continues to rebound from a difficult start to the year. On that note, Citigroup (C 42.22, +0.95) and Bank of America (BAC 13.41, +0.27) climbed a respective 2.3% and 2.1% today, but remain down 18.4% and 20.3%, respectively, for the year.

The health care space (+0.2%) ended above its flat line as biotechnology outperformed. The iShares Nasdaq Biotechnology ETF (IBB 268.12, +2.85) gained 1.1%.

The Federal Reserve released its March Beige Book, which described overall economic activity across the twelve Fed Districts as expanding at a "modest" or "moderate" pace. Consumer spending increased in the majority of districts while manufacturing activity was described as flat for the most part. With regard to wages and inflation, the Beige Book described price levels as rising slightly while wage growth was described as ranging from "flat" to "strong".

The Treasury complex traded narrowly lower throughout today's session. The yield on the 10-yr note ended higher by one basis point at 1.84%.

Meanwhile, the U.S. Dollar Index (98.18, -0.17) tumbled as the dollar/yen pair ended the day lower by 0.6% at 113.39.

Today's participation fell in-line with the recent average with more than 1.065 billion shares changing hands at the NYSE floor.

Today's economic data included the weekly MBA Index, the February ADP Employment Change report, and the Fed's Beige Book for March:

The weekly MBA Mortgage Index showed a seasonally adjusted decrease of 4.8% in mortgage applications.
The ADP National Employment Report showed a 214,000 increase in February (Briefing.com consensus 190,000) while the January reading was revised lower to 193,000 from 205,000.
The ADP reading precedes Friday's more influential government Employment Report, which is expected to show a 190K increase in Nonfarm Payrolls, greater than last month's 151K increase.

Tomorrow's economic data will include the 7:30 ET release of the Challenger Job Cuts report for February. Meanwhile, weekly initial claims (Briefing.com consensus 270k), Q4 Productivity (Briefing.com consensus -3.3%), and Unit Labor Cost data (Briefing.com consensus +4.7%) will be released at 8:30 ET. Finally, January Factory Orders (Briefing.com consensus +2.0%) and ISM Services (Briefing.com consensus +53.1) will cross the wires at 10:00 ET. DJ30 +34.24 NASDAQ +13.83 SP500 +8.10 NASDAQ Adv/Vol/Dec 1969/1.753 bln/1009 NYSE Adv/Vol/Dec 2042/1.065 bln/1001

3:40 pm :

Energy futures were volatile again today
Despite a bearish EIA storage report, oil reversed sharply following the post-data sell-off
Ultimately, instead of ending with a solid loss, Apr crude oil ended today's session +0.5% at $34.57/barrel
Natural gas continues to feel pressured from the mild weather and supply situation
Apr nat gas closed out the day -3.5% at $1.68/MMBtu
In the metals space, however, copper gained 2% to $2.18/lb, while precious metals gained as well
Apr gold rose 0.9% to $1241.50/oz and May silver rallied 1.8% to $15.02/oz

[ReturntoSender]

From Briefing.com: Weekly Recap - Week ending 04-Mar-16The stock market enjoyed its third consecutive week of gains that put the S&P 500 back above its 100-day moving average (1999.8) for the first time since late December. The benchmark index spiked 2.7% for the week, extending its three-week run to 7.3% while the Nasdaq outperformed, climbing 2.8% this week and 8.8% over the past three weeks.

U.S. equity indices soared alongside their counterparts in Japan (+5.2%), Hong Kong (+4.2%), China (+3.9%), Germany (+3.3%), and France (+3.3%) during what was a bit of a peculiar week. Specifically, the week started amid rising stimulus hopes after disappointing manufacturing data from China reinforced expectations for a global slowdown, but as the week continued, the attitude went from "worse than expected" to "better than feared," essentially leaving a bad-is-good (more stimulus) and good-is-good (more growth) dynamic in place. This idea was on full display on Friday when investors received a February Employment Situation Report, which showed a surprising divergence. Namely, nonfarm payrolls increased by a healthy 242,000 (Briefing.com consensus 190,000) with upward revisions to January and December, but February average hourly earnings were down 0.1% (Briefing.com consensus 0.2%) after being up 0.5% in January.

At first glance, the decline in average hourly earnings should be viewed as something that may detract the Fed from raising rates sooner than expected due to negative implications to consumer spending-and that is likely the message the market received and rallied behind on Friday. However, that did not stop the Atlanta Fed from revising its GDPNow first quarter GDP forecast up to 2.2% from 1.9% and specifically citing a larger contribution from real consumer spending growth (+3.3% from +3.1%) for the revision.

This could explain why, on Friday morning, the belly of the expectations curve of the fed funds futures market briefly signaled a 50.1% chance of a rate hike at the September meeting. The curve receded a bit since the morning with the market now expecting a 52.0% chance of a hike in November and a 48.9% chance of a move in September. On Monday, the fed funds futures market saw December as the next month entering into the rate hike conversation with the probability of a hike at the corresponding policy meeting running at 54.4%.

Index Started Week Ended Week Change % Change YTD %
DJIA 16639.97 17006.77 366.80 2.2 -2.4
Nasdaq 4590.47 4717.02 126.55 2.8 -5.8
S&P 500 1948.05 1999.99 51.94 2.7 -2.2
Russell 2000 1037.17 1081.93 44.76 4.3 -4.8

The broader market action closed the session with slight gains. Action in the final hour was on a slight upward trend as all three major indices tested breaking flat lines near 3 p.m. ET, but a late-day bounce took all three higher, and that is where we finished. Leading the modest advance, the Dow Jones Industrial Average gained 62.87 points (+0.37%) today to close 17006.77. The S&P 500 was up 6.59 points (+0.33%) to close 1999.99, and the Nasdaq Composite added 9.60 points (+0.20%) to close 4717.02. Today's action takes the indices to -2.4%, -2.2% and -5.8% YTD, respectively.

Market data today included nonfarm payrolls which increased by 242,000 and private sector payrolls which increased by 230,000. The unemployment rate was 4.9% in February, and January average hourly earnings were down 0.1% after being up 0.5% in January. The average workweek declined 0.2 to 34.4 hours, and the January Trade Balance report showed a widening in the deficit to $45.7 billion from a downwardly revised deficit of $44.7 billion (from $43.4 billion) for December.

Friday closed with Technology (XLK 42.42, +0.11 +0.26%) managing slight gains as component Hewlett Packard Enterprise (HPE 15.44, +1.84 +13.53%) reported better than expected Q1 EPS and in-line revenues. Other sectors closed today XLB +1.16%, XLU +1.12%, XLE +0.96%, XLP +0.42%, XLI +0.41%, XLF +0.41%, XLY -0.09%, XLV -0.24%, IYZ -0.30%.

In the S&P 500 Information Technology sector (699.68, +2.42 +0.35%), trading culminated with in a sell-off and sideways final hour of action as component Broadcom (AVGO 146.06, +8.73 +6.36%) reported better than expected Q1 EPS and revenues, driving the stock higher. Other components which closed Friday with gains included SWKS +4.15%, YHOO +2.98%, ADSK +2.66%, EBAY +1.96%, QRVO +1.61%, MCHP +1.54%, INTU +1.50%, AAPL +1.49%, JNPR +1.41%, TDC +1.40%, XRX +0.96%.

Elsewhere in the technology space:

Carmike Cinemas (CKEC 29.25, +4.14 +16.49%) to be acquired by AMC Theatres (AMC 27.02, +1.32 +5.14%) for $30.00 per share in cash.

SunEdison (SUNE 1.78, +0.26 +17.11%) and TerraForm Power (TERP 9.84, +0.36 +3.80%) entered into a settlement agreement with the shareholders of Latin America Power Holding. The agreement resolved all of the disputes among the parties regarding the termination of the acquisition of Latin America Power.

Liquidity Services (LQDT 4.85, +0.22 +4.75%) placed the winning bid equal to 64.5% of its gross resale proceeds that will be returned to the government.

INTL FCStone (INTL 27.41, +0.82 +3.08%) filed a $250 million mixed securities shelf offering.

CGI Group (GIB 42.50, -0.77 -1.78%) to repurchase 7.1 million of its shares held by Caisse de dpt et placement du Qubec. The repurchase represents $400 million investment by CGI.

In reaction to quarterly results:

Hewlett Packard Enterprise (HPE) reported better than expected Q1 EPS of $0.41 and in-line revenues of $12.72 billion. The company also guided Q2 EPS in-line at $0.39-0.43 and reaffirmed guidance for FY16 EPS of $1.85-1.95.

Broadcom (AVGO) reported better than expected Q1 EPS and revenues of $2.41 and $1.78 billion, respectively. For the Q2 period, AVGO expects revenues of $3.475-3.625 billion.

Mentor Graphics (MENT 19.70, -0.29 -1.45%) reported better than expected Q4 EPS of $0.63 on revenues which were in-line at $337.27 million. For the Q1 period, MENT sees better than expected EPS and revenues of about $0.00 and about $220 million, respectively. For the FY17 period, MENT sees EPS of about $1.68 and revenues of $1.215 billion.

Nimble Storage (NMBL 7.36, -0.89 -10.79%) reported in-line EPS for Q4 at a loss per share of $0.12, with better than expected revenues which also rose 32.0% versus last year to $90.1 million. For the Q1 period, NMBL sees EPS of ($0.27)-($0.25) on revenues of $83-86 million.

Ambarella (AMBA 42.11, -4.13 -8.93%) reported better than expected Q4 EPS of $0.64 on better than expected revenues of $68 million. For the Q1 period, AMBA sees worse than expected revenues of $55-57 million.

Companies scheduled to report quarterly results next week: LMOS, PCTI, BITA, DGLY, JW.A, SOL, ATTO, FENG, QUMU, SEMI, BOX, CMTL, MXPT, RST, SQ, VSLR, CSIQ, DATE, VNET, ABTL, CMLS, EXA, FNSR, FXCM, KTOS, QADA, PAY, VMEM

Analyst actions:

HPE was upgraded to Outperform from Mkt Perform at Bernstein,
LITE was upgraded to Buy from Hold at Jefferies;
NMBL was downgraded at JP Morgan and Piper Jaffray,
SBAC was downgraded to Market Perform from Outperform at Wells Fargo;
SPLK, NOW, MSFT, DATA, WDAY, QLIK, CRM and ORCL were initiated at Macquarie,
SPLK, QLIK and DATA were initiated at BMO Capital,
VOD was initiated with a Buy at Nomura

4:26 pm Closing Market Summary: Stocks Register Third Consecutive Weekly Advance (:WRAPX) :

The stock market ended an upbeat week on a wobbly note. The S&P 500 added 0.3% after being up 0.8% going into the late afternoon. Despite the late slip from session highs, the benchmark index still registered its third consecutive weekly advance, climbing 2.7% since last Friday.

Today's session featured something for fans of symmetry as stocks started and ended the trading day on a shaky note. The volatile action occurred in the wake of a February Employment Situation Report that left participants wondering what to make of it. On one hand, the report pointed to strong headline growth in payrolls (242,000; Briefing.com consensus 190,000), but on the other hand, average hourly earnings decreased 0.1% (Briefing.com consensus 0.2%), dropping the annualized earnings growth rate to 2.2% year-over-year from 2.5% that was observed in January. This puts the rate back in a lackluster range that has held for years and has negative implications for consumer spending.

That view likely bolstered the market's belief that a surprise rate hike in March is off the table, inviting an intraday rally in stocks. However, this argument gets a bit fuzzier when taking into account today's upward revision to Atlanta Fed's GDPNow forecast for the first quarter, which was raised to 2.2% from 1.9% on March 1. The Atlanta Fed pointed to an increase in expectations for real consumer spending growth (to +3.3% from +3.1%) as the main reason for the improved outlook.

Furthermore, shortly after the jobs report was released, the fed funds futures market saw a shift in the belly of the expectations curve, briefly signaling a 50.1% chance of a rate hike at the September meeting. The curve receded a bit since the morning with the market, at day's end, expecting a 52.0% chance of a hike in November and a 48.9% chance of a move in September. On Monday, the fed funds futures market saw December as the first month entering into the rate hike conversation with the probability of a hike at the corresponding policy meeting running at 54.4%.

Interestingly, the afternoon slide that cut the market's gain in half occurred near the 100-day moving average (1999.8) in the S&P 500 as the index tried to register its first close above that mark since December 31. The benchmark average settled just above that level (by 0.18!) after spiking off its 50-day moving average (1940.5) on Tuesday.

Seven sectors ended the day with gains, paced by materials (+1.2%), utilities (+1.2%), energy (+0.9%), and financials (+0.4%). On the flip side, health care (-0.2%) and consumer discretionary (UNCHF) lagged throughout the day while technology (+0.4%) ended just ahead of the broader market as relative strength in chipmakers helped mask some weakness among select top-weighted components. Alphabet (GOOGL 730.22, -1.37), Microsoft (MSFT 52.03, -0.32), and Facebook (FB 108.39, -1.19) lost between 0.2% and 1.1% while the PHLX Semiconductor Index (+1.1%) outperformed after Wells Fargo upgraded the chipmaker sector to 'Overweight.'

On the earnings front, SOX index component Broadcom (AVGO 146.06, +8.73) surged 6.4% in reaction to better than expected results.

The Friday advance in equities was accompanied by selling in the Treasury market. The 10-yr note ended off its low with its yield up five basis points at 1.88% after testing the 1.90% mark. Today's volatility invited increased volume as more than 1.35 billion shares changed hands at the NYSE floor.

Economic data included the Employment Situation Report and Trade Balance:

Nonfarm payrolls increased by 242,000 (Briefing.com consensus 190,000) and Private sector payrolls increased by 230,000 (Briefing.com consensus 180,000) January nonfarm payrolls revised to 172,000 from 151,000 and January private sector payrolls revised to 182,000 from 158,000 Unemployment rate was 4.9% (Briefing.com consensus 4.9%) versus 4.9% in January The U6 unemployment rate, which accounts for the total unemployed plus persons marginally attached to the labor force and the underemployed, was 9.7% versus 9.9% in January Persons unemployed for 27 weeks or more accounted for 27.7% of the unemployed versus 26.9% in January January average hourly earnings were down 0.1% (Briefing.com consensus 0.2%) after being up 0.5% in January Over the last 12 months, average hourly earnings have risen 2.2% versus 2.5% in January The average workweek declined 0.2 to 34.4 hours (Briefing.com consensus 34.6) February manufacturing workweek was unchanged at 40.8 hours Factory overtime was 3.3 hours for the third month in a row The labor force participation rate was 62.9% versus 62.7% in January The January Trade Balance report showed a widening in the deficit to $45.7 billion (Briefing.com consensus -$44.0 bln) from a downwardly revised deficit of $44.7 billion (from -$43.4 bln) for December Exports were down $3.8 billion from December while imports were down $2.8 billion. Monday's data will be limited to the 15:00 ET release of the January Consumer Credit report (Briefing.com consensus $16.50 billion).

S&P 500 -2.2% YTD Dow Jones Industrial Average -2.4% YTD Russell 2000 -4.8% YTD Nasdaq -5.8% YTD

4:01 pm Lattice Semi's CFO Joe Bedewi to leave the company (LSCC) :

Co announces the transition of Joe Bedewi, Corporate Vice President and Chief Financial Officer, who will leave the Company effective April 2, 2016. As part of the transition, Max Downing, Lattice's Vice President of Finance, has been named Interim Chief Financial Officer. A formal search for a successor Chief Financial Officer has commenced.

7:01 am Plug Power closes $30 mln loan facility with a specialty finance company (PLUG) :

The proceeds will be used for general corporate and working capital purposes, including to help finance lease transactions for certain customers. Co will discuss this loan facility and partnership in more detail on March 10, 2016 during its 2015 fourth quarter and year end results conference call.

6:55 am SunEdison and TerraForm Power (TERP) enter into settlement agreement with the shareholders of Latin America Power Holding; resolves all of the disputes among the parties regarding the termination of the acquisition of Latin America Power (SUNE) :

The parties have resolved the case on mutually acceptable terms. The parties have agreed that the arbitration proceeding between the parties will be terminated upon final payment, the related action filed in New York state court will be dismissed without prejudice and the temporary restraining order issued in that action will be vacated immediately. The parties have agreed that the acquisition of Latin America Power by SunEdison will not be completed.

The financial terms of the settlement include total payment of $28.5 million to be made by SunEdison, Inc. and/or SunEdison Holdings Corporation. The settlement imposes no payment obligations on TerraForm Power. None of the parties has admitted to any wrongdoing or liability with respect to the claims asserted in the arbitration and New York state court action, and the parties have granted each other full releases subject to the fulfillment of SunEdison's payment obligations under the settlement agreement.

[ReturntoSender]

Recent Data Shows US Recession Risks on the Rise

http://www.financialsense.com/recession-risks-rise

<SNIP>
Here is the statement provided by the Atlanta Fed:

"The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2016 is 0.1 percent on April 8, down from 0.4 percent on April 5. After this morning's wholesale trade report from the U.S. Bureau of the Census, the forecast for the contribution of inventory investment to first-quarter real GDP growth fell from –0.4 percentage points to –0.7 percentage points."

[ReturntoSender]

From Briefing.com: 4:26 pm Maxwell Tech enters into definitive agreement to sell microelectronics product line to Data Device, a subsidiary of ILC Industries, for $21 mln in cash (MXWL) : The agreement includes all assets and certain liabilities related to the microelectronics product line. The sale transaction is expected to close by the end of April 2016.

4:18 pm Closing Market Summary: Rebound in Oil Rallies Averages (:WRAPX) :

The S&P 500 ended the Tuesday affair higher by 1.0%, taking part in a lockstep rally with crude oil. Other factors for today's gain included leadership from the heavily-weighted financial (+1.3%), health care (+0.8%), and industrial (+0.8%) sectors. The benchmark index (+1.0%) ended its day ahead of the Dow Jones Industrial Average (+0.9%) and ahead of the Nasdaq Composite (+0.8%).

Today's session began on a wobbly note as global growth concerns and earnings prospects pressured the major averages from their opening gains. Ahead of today's session the IMF lowered its 2016 growth estimate for the global economy from 3.4% to 3.2%. Meanwhile, mixed results in Alcoa's (AA 9.48, -0.26) first quarter earnings report also acted as a headwind. The company missed top-line expectations as revenue shrank 15.0% year-over-year.

On the commodities front, WTI crude began its day with a modest gain as investors eyed an upcoming meeting between oil producers in Doha. However, investors would not have to wait until Sunday for good news as reports indicated Saudi Arabia and Russia will freeze oil production at current levels even if Iran did not take part in a similar production cap. As a result, WTI crude climbed 4.1% ($42.12/bbl) before the end of its pit session. This represents a high for 2016 and a gain of 14.5% week to date.

The major averages followed the trajectory of oil after the news as the technology (+0.6%) and consumer discretionary (+0.8%) spaces recovered from some early losses. By the end of the day, all ten sectors were in the green with energy (+2.8%), financials (+1.3%), and materials (+1.2%) leading the advance.

Money center banks outperformed in the economically-sensitive financial (+1.3%) sector ahead of key earnings later this week. On that note, JPMorgan Chase (JPM 59.28, +1.08) gained 1.9% ahead of its first quarter report, which will be released tomorrow before the open. To be fair though, the rally in crude oil probably alleviated some pressure on the company as concerns about bad energy loans recede. JPMorgan Chase announced $600 million in loan loss reserves for energy and materials sector loans on February 23.

In the heavyweight health care space (+0.8%), AbbVie (ABBV 59.89, +1.39) outperformed after announcing that it received accelerated approval from the FDA for its chronic lymphocytic leukemia medication. Biotechnology ended ahead of the broader sector as Regeneron Pharmaceuticals (REGN 408.07, +11.93) extended its April gain to 13.2%.

CSX (CSX 24.99, +0.46) displayed relative strength in the industrial sector (+0.8%). The rail name is scheduled to report first quarter earnings after today's close. Elsewhere, Caterpillar (CAT 76.10, +1.47) gained 2.0% as the construction and farm equipment sub-group outperformed.

On the flipside, technology (+0.6%), consumer staples (+0.6%), and utilities (+0.7%) rounded out the leaderboard. In the influential technology sector (+0.6%), heavily-weighted Facebook (FB 110.61, +1.62) rallied as the company's CEO Mark Zuckerberg announced a new messenger platform. Meanwhile, the broader space underperformed as Juniper Networks (JNPR 23.06, -1.83) weighed on the networking sub-group. The stock fell 7.4% after the company lowered its top and bottom-line guidance for the first quarter.

The U.S. Dollar Index (94.00, +0.05) ended its day narrowly above its flat line as losses against the Canadian dollar partially offset gains against the yen and the euro. The dollar ended lower by 1.1% against the commodity-sensitive currency (1.2757). Meanwhile, the euro lost 0.2% against the dollar (1.1389) while the dollar/yen pair finished at 108.51 (+0.5%).

The Treasury complex ebbed lower as the rally in the broader market continued. The yield on the 10-yr note finished at 1.77% (+5 bps).

Participation was above the recent average as more than 951 million shares changed hands on the NYSE floor.

Today's economic data included March Import and Export Prices and the Treasury Budget for March:

Specifically, a 4.9% increase in import fuel prices in March helped drive a 0.2% increase in the price index for U.S. imports.

That is the first monthly increase since June 2015, although it would be remiss not to add that the import price index is still down 6.2% year-over-year.
Excluding fuel, import prices declined 0.1% for the third straight month with falling prices for consumer goods, food, and capital goods offsetting rising prices for nonfuel industrial supplies and materials.

Export prices, meanwhile, were unchanged in March after declining 0.5% in February, leaving them down 6.1% year-over-year. Excluding agriculture, the price index for nonagricultural exports rose 0.3% with higher prices for nonagricultural industrial supplies and materials more than offsetting falling auto prices. That was the first monthly increase for that measure since May 2015.The Treasury Budget statement for March showed a deficit of $108.0 billion. This Treasury data is not seasonally adjusted so the March deficit cannot be compared to the February surplus of $52.9 billionTomorrow's economic data will include the 7:00 ET release of the weekly MBA Mortgage Index while March Core PPI (Briefing.com consensus 0.2%) and Retail Sales for March (Briefing.com consensus +0.1%) will be released at 8:30 ET. Finally, February Business Inventories (Briefing.com consensus -0.1%) and the Fed's Beige Book for April will be released at 10:00 ET and 14:00 ET, respectively.

Additionally, China's Trade Balance for March is tentatively scheduled to be released at 21:40 ET.

Nasdaq Composite -2.7% YTDRussell 2000 -2.7% YTDS&P 500 +0.9% YTDDow Jones +1.7% YTD3:35 pm :

The dollar index trades below 94.00, does not appear to be weighing on commodities in afternoon pit trading
Commodities, as measured by the Bloomberg Commodity Index, are up +2.0% at 80.89
Crude oil surges for the third day in a row, closing near its high of the day
May crude oil futures rose $1.65 (+4.1%) to $42.12/barrel
The April 17 Doha meeting between OPEC and non-OPEC members is approaching, regarded as a near-term catalyst to move oil prices
EIA crude oil inventory is scheduled to be released tomorrow at 10:30 am ET
Last week's inventory showed a surprise draw of -4.937 mln barrels, compared to expectations for a build of +3.1 mln barrels
API inventory data is scheduled to be released at 4:30 pm ET today
Last week's data showed a draw of -4.3 mln barrels, compared to the previous week's build of +8.8 mln barrels
Natural gas sees a sharp afternoon spike, closing near its high of the day
May natural gas futures closed $0.10 higher (+5.2%) at $2.01/MMBtu
In precious metals, gold rallies above the previous day's close in the afternoon, consolidating to close higher
June gold futures ended today's session up $2.80 (+0.2%) to $1260.90/oz
Silver sees an afternoon spike and trends upwards to close near its high of the day
May silver futures closed today's session $0.24 higher (+1.5%) at $16.22/oz
Base metal copper ends afternoon pit trading higher
May copper futures closed $0.06 higher (+2.9%) at $2.15/lb
Grain prices were more volatile than usual today, following the WASDE report
Corn and soybeans initially sold off notably, post-WASDE, but buyers stepped in and prices recovered
10:31 am Novatel Wireless sells several cellular module product lines, related IP and assets to Telit Communications (TTCNF) for an initial cash purchase price of $11 mln and conditional earn-out consideration (MIFI) :

Telit Communications has agreed to acquire several cellular module product lines, related IP and related assets from Novatel Wireless, for an initial cash purchase price of $11 million and conditional earn-out consideration, which Telit expects to be non-material.

As part of the Acquisition, Telit (TTCNF) acquired specific IP and was granted an exclusive license to other Novatel IP related to the acquired cellular module lines, including subsequent versions currently in development.

7:31 am SunOpta's unit intends to offer ~$300 mln in aggregate principal amount of senior secured second lien notes due 2023 in a private offering in the near future (STKL) :

Co announces that its subsidiary, SunOpta Foods intends, subject to market and other conditions, to offer ~$300 mln in aggregate principal amount of senior secured second lien notes due 2023 in a private offering in the near future. Co intends to use the net proceeds of the Notes offering, together with borrowings under its senior secured asset-based revolving credit facility to repay in full the term loans outstanding under the Second Lien Loan Agreement, dated October 9, 2015.Monday's tepid close was far from investors' minds as the broader market today closed higher today. Trading was led the S&P 500, which added 19.73 points (+0.97%) to 2061.72. The Dow Jones Industrial Average was up 164.84 points (+0.94%) at the close to end 17721.25. The Nasdaq Composite finished the day with the smallest gains, higher by only 38.69 points (+0.80%) to 4872.09. The broader market rallied as strength in crude oil and overall sector performance aided the advance. In market data, a 4.9% increase in import fuel prices in March helped drive a 0.2% increase in the price index for US imports. Export prices, meanwhile, were mostly unchanged in March after declining 0.5% in February, culminating in a 6.1% year-over-year decline.

Technology (XLK 44.06, +0.29 +0.66%) was modestly higher today as early losses did not hold. Component Corning (GLW 20.83, +0.22 +1.04%) wrapped up a day with solid gains as the stock was upgraded in the premarket session to a Buy rating from a Neutral at Goldman. Other sectors closed the session XLE +2.98%, XLB +1.39%, XLF +1.26%, XLV +0.81%, XLY +0.76%, XLU +0.70%, XLP +0.62%, IYZ +0.59%, XLI +0.58% with Energy leading the way higher on the back of a +4.1% gain in May crude oil futures.

In the S&P 500 Information Technology (731.96, +4.14 +0.57%) sector, trading was also pressured at the open, but ended higher. Component Juniper Networks (JNPR 23.06, -1.83 -7.35%) was pressured as the company lowered guidance for the Q1 period's EPS and revenue expectations. Other names in the sector which displayed strength included EBAY +1.50%, FB +1.49%, XRX +1.46%, AAPL +1.30%, ACN +1.14%, TEL +1.11%, TXN +1.07%, GOOG +0.95%.

Other notable news items among sector components:

Juniper Networks (JNPR) lowered guidance for Q1 EPS and revenues (which indecently are now worse than Street expectations) at $0.35-0.37 and $1.090-1.100 billion, respectively. Prior guidance for the two metrics stood at $0.42-0.46 and $1.15-1.19 billion, respectively. JNPR's management noted the update was due primarily to weaker than expected demand from the company's Enterprise segment and the timing of certain deployments of certain US and EMEA Tier 1 Telecoms.

Accenture (ACN 114.39, +1.29 +1.14%) announced the global rollout of an intelligent automation platform, Accenture myWizard, that enables smarter, more innovative and more efficient application services consisting of systems integration and application development and management.

Western Digital (WDC 43.97, -0.26 -0.59%) announced immediate worldwide availability of the new object storage-based HGST Active Archive System, SA-1000 model.

IBM (IBM 149.63, +0.38 +0.25%) announced plans to extend its global partnership with Box (BOX 12.06, +0.04 +0.33%) to provide enterprises with the choice to store data regionally in Europe and Asia on the IBM Cloud.

IBM (IBM) and the American Cancer Society announced a partnership to create the first advisor for people fighting cancer, powered by Watson cognitive computing.

Activision Blizzard's (ATVI 33.48, +0.07 +0.21%) Activision Blizzard Media Networks announced Major League Gaming's Counter-Strike: Global Offensive Major Championship (CS:GO Major) set new viewership records during its March 30 -- April 3 broadcast from Columbus, Ohio. Audiences generated 71 million video views,1 watched a record-breaking 45 million hours of live broadcast2 and set a new record of 1.6 million concurrent viewers3 across OTT, web, mobile and in-game streaming during this year's event.

Elsewhere in the tech space:
Research firm Gartner announced Worldwide PC shipments totaled 64.8 million in the first quarter of 2016. This represents a 9.6% decline versus last year.

Aly Nauman, a 4.4% shareholder in Integrated Device (IDTI 20.22, +0.79 +4.07%), proposed to acquire all outstanding shares of the company for $32.00/share.

Workday (WDAY 76.41, -0.62 -0.80%) named former VMware (VMW 50.38, -0.81 -1.58%) Chief Accounting Officer, Robynne Sisco as the company's CFO.

Pegasystems (PEGA 24.32, -0.12 -0.49%) announced the acquisition of Atlanta, GA-based OpenSpan, Inc., a privately held software provider of robotic process automation (RPA) and workforce analytics software. Financial details of the deal were not disclosed.

Novatel Wireless (MIFI 1.60, -0.04 -2.44%) sold several cellular modules product lines, related IP and assets to Telit Communications (TTCNF 2.89, -0.11 -3.67%) for an initial cash purchase price of $11 mln and conditional earn-out consideration.

Analyst actions:

SAP was upgraded to Buy from Hold at Berenberg,
GLW and YNDX were upgraded to Buy from Neutral at Goldman;
JNPR was downgraded to Neutral from Buy at UBS,
BAH was downgraded to Mkt Perform from Outperform at Raymond James;
P, RUBI and CRTO were initiated with a Buy at Citigroup,
WBMD was initiated with a Neutral at Citigroup,
ERIC was initiated with a Sell at Credit Agricole

[ReturntoSender]

From Briefing.com: 4:16 pm Intel (halted, will resume at 16:20) beats by $0.06, reports revs in-line; guides Q2 revs below consensus; lowers FY16 guidance; announces restructuring, reducing 11% of workforce; CFO Smith taking new role in sales/operations (INTC) : Reports Q1 (Mar) earnings of $0.54 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $0.48; adj. revenues rose 8.0% year/year to $13.8 bln ($13.7 bln GAAP) vs the $13.83 bln Capital IQ Consensus. Note EPS benefitted from 18.4% tax rate. Client Computing Group revenue of $7.5 billion, down 14 percent sequentially and up 2 % YoY Data Center Group revenue of $4.0 billion, down 7 percent sequentially and up 9 percent yearover-yearInternet of Things Group revenue of $651 million, up 4 percent sequentially and up 22 % YoY Non-Volatile Memory Solutions Group revenue of $557 million, down 15 percent sequentially and down 6 % YoY Intel Security Group revenue of $537 million, up 5 percent sequentially and up 12 percent yearover-year.Co issues downside guidance for Q2, sees Q2 revs of $13-14 bln vs. $14.18 bln Capital IQ Consensus; gross margin ~61% (+/-2% points).Lowers FY16 rev growth to mid single digits from mid to high single digits (consensus +5.4%); lowers adj. gross margin to 62% (+/-2% points) from 63%; reaffirms cap-ex$Intel also announced a CFO succession plan. The current CFO, Smith, will transition to a new role at the company, leading sales, manufacturing and operations once his successor is in place. The company is beginning a formal search process for a new CFO that will assess both internal and external candidates. Smith will remain firmly focused on his CFO role and duties throughout the search and transition process. Intel announced a restructuring plan designed to align its operations with evolving business needs and improve efficiencies. The actions associated with the restructuring plan are expected to be fully completed by 2Q17. The restructuring plan is estimated to result in annualized pre-tax cost savings of ~$1.4 billion once it is fully implemented.Intel plans to close certain facilities and reduce up to twelve thousand positions globally, representing ~11% of Intel's worldwide workforce. Intel expects to incur pre-tax charges of ~$1.2 billion, substantially all of which are related to employee severance and benefits.

4:11 pm Yahoo! beats by $0.01, beats on revs (YHOO) :

Reports Q1 (Mar) earnings of $0.08 per share, $0.01 better than the Capital IQ Consensus of $0.07; revenues fell 17.6% year/year to $859 mln vs the $845.9 mln Capital IQ Consensus.Q1 Maven (Mobile, Video, Native and Social) Revenue +6% y/y; Q4 +26% y/y
Q1 Mobile revenue represented +11% y/y of traffic-driven revenue; Q4 33% y/y
Q1 Search Revenue:
Gross search revenue -15% y/y; Q4 -7% y/y
Number of Paid Clicks increased -21% y/y; Q4 -10% y/y
Price-per-Click +7% y/y; Q4 +3% y/y
Q1 Display Revenue:
GAAP display revenue -1% y/y; Q4 +13% y/y
Number of Ads Sold +8% y/y; Q4 +8% y/y
Price-per-Ad -6% y/y; Q4 +6% y/y

4:05 pm CalAmp reports EPS & revs in line with pre-announcement; guides Q1 EPS below consensus, revs below consensus; guides FY17 EPS below consensus, revs below consensus (CAMP) :

Reports Q4 (Feb) earnings of $0.32 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.32; revenues rose 2.3% year/year to $70.8 mln vs the $71.05 mln Capital IQ Consensus. Co pre-announced Q4 EPS of $0.32 and revenue of $71 mlnCo issues downside guidance for Q1, sees EPS of $0.18-0.24, excluding non-recurring items, vs. $0.26 Capital IQ Consensus Estimate; sees Q1 revs of $77-85 mln vs. $89.69 mln Capital IQ Consensus Estimate. Co issues downside guidance for FY17, sees EPS of $1.15-1.35, excluding non-recurring items, vs. $1.41 Capital IQ Consensus Estimate; sees FY17 revs of $375-400 mln vs. $414.04 mln Capital IQ Consensus Estimate.

4:15 pm : The S&P 500 ended its day higher by 0.3% after the index tested, but could not make a sustained move above the 2100 level. Today's trade featured weaker than expected housing data, an uptick in oil, mixed quarterly earnings reports, and, as a result, split performances between heavily-weighted financials (+1.1%) and technology (-0.9%). The Nasdaq Composite (-0.4%) ended its day behind the S&P 500 (+0.3%) and the Dow Jones Industrial Average (+0.3%).

Equity indices opened their day higher as global bourses exhibited increased risk appetite overnight. Japan's Nikkei (+3.7%) showed the largest uptick as commentary from Bank of Japan Governor Haruhiko Kuroda prompted speculation for future stimulus. At the same time, oil rebounded following yesterday's post-Doha meeting decline.

However, the major averages pulled back from their session highs as the heavily-weighted health care (+0.3%) space pulled away from its initial 0.9% gain. This pullback also corresponded with a downturn in the broader market after the benchmark hit a session high at 2104 and backed away from that level into the close.

By the end of the session, eight sectors finished above their flat lines as commodity-sensitive energy (+1.9%) and materials (+2.1%) led financials (+1.1%) and telecom services (+0.8%). Conversely, heavily-weighted technology (-0.6%) and consumer discretionary (-0.5%) ended with the largest losses.

The energy space (+1.9%) moved higher with oil as WTI crude finished its day higher by 2.8% at $42.34/bbl. The energy component has benefited from reports out of Kuwait that its oil and gas workers strike has extended into its third day. Meanwhile, the sector looks ahead to tonight's weekly API data. The inventory data is expected to show that crude stockpiles rose by 1.60 million barrels, compared to last week's build of 6.22 million barrels.

The economically-sensitive financial sector (+1.1%) extended its April gain to 3.6% as money center banks and investment brokerages moved higher in sympathy with Goldman Sachs (GS 161.65, +3.63). The company reported a bottom-line beat and light revenue for the first quarter. Meanwhile, Goldman Sachs also disclosed that revenue declined 40.3% on year-over-year basis. However, the stock recovered from a 1.3% loss to end higher by 2.3%. To be fair though, money center banks and investment brokerages are also likely benefiting from an uptick in oil, in light of their exposure to oil and gas assets.

In the technology space (-0.6%), Alphabet (GOOGL 776.25, -11.43) fell 1.5% after headlines indicated that that the European Union is scheduled to file an antitrust suit against the tech name regarding required applications on Android devices. Meanwhile, Dow component IBM (IBM 144.00, -8.53) was the worst performer in the price-weighted index after issuing below-consensus guidance for the second quarter. Additionally, IBM did beat top and bottom-line estimates for the quarter, but revenue fell 4.6% year-over-year.

Biotechnology underperformed in the health care space (+0.3%), evidenced by the 1.9% decline in the iShares Nasdaq Biotechnology ETF (IBB 279.53, -5.44). Conversely, Dow component UnitedHealth (UNH 130.50, +2.69) was the best component in the price-weighted index. The company gained 2.1% after beating bottom-line estimates and raising its full year earnings guidance to $7.75-7.95 per share from $7.60-$7.80 per share.

The PHLX Semiconductor Index (-1.2%) displayed relative weakness ahead of Intel's (INTC 31.60, -0.05) quarterly report this evening. Meanwhile, Skyworks (SWKS 72.23, -2.51) and Qorvo (QRVO 45.24, -1.92) lost a respective 3.4% and 4.1% after being downgraded from "Strong Buy" to "Outperform" at Raymond James.

The U.S. Dollar Index (94.06, -0.43) finished its day off its low as the greenback made up some ground against the euro and the Canadian dollar. The dollar/Canadian dollar pair ended at 1.2659 (-1.0%) while the euro finished higher by 0.4% (1.1362).

The Treasury complex ended its day lower with the yield on the 10-yr note rising two basis points to 1.79%.

Today's participation was above the recent average as more than 877 million shares changed hands on the NYSE floor.

Today's economic data included March Building Permits and Housing Starts:

The Housing Starts and Building Permits report for March was definitely a disappointment. Starts fell 8.8% from the prior month to a seasonally adjusted 1.089 million units (Briefing.com consensus 1.17 million).
The weakness in starts was presumably due to some of the typical Spring building getting pulled forward during the warmer-than-usual winter months. To be sure, there is always an excuse for everything in a trending market.
The downturn was paced by a 9.2% slide in single-family starts, which saw declines in all regions: Midwest (-21.2%), West (-9.1%), Northeast (-8.6%), and the South (-4.9%). Multi-unit starts were down 7.9%.
Building permits, meanwhile, declined 7.7% to 1.086 million (Briefing.com consensus 1.200 million).
Building permits are a leading indicator, so the March data is not an encouraging sign for future building activity. Only the South (+1.8%) saw a pickup in permits for single-family units.
The one positive in the report is that the number of homes under construction jumped to 990,000 from 985,000 in February. That will be a positive input in first quarter GDP forecasts as the first quarter average of 984,000 was above the fourth quarter average of 962,000.

Tomorrow's economic data will be limited to the weekly MBA Mortgage Index and March Existing Home Sales (Briefing.com consensus 5.30 million), which will cross the wires at 7:00 ET and 10:30 ET, respectively.

Dow Jones +3.6% YTD
S&P 500 +2.8% YTD
Russell 2000 +0.4% YTD
Nasdaq -1.2% YTD

DJ30 +49.44 NASDAQ -19.69 SP500 +6.46 NASDAQ Adv/Vol/Dec 1533/1.653 bln/1296 NYSE Adv/Vol/Dec 2121/877.8 mln/897

3:30 pm :

The dollar index drifts downwards in afternoon pit trading, currently near the 93.95 level, down -0.6%, boosting commodities across the board
Commodities, as measured by the Bloomberg Commodity Index, are up +2.5% at 82.65
Crude oil gives up some of this morning's gains, consolidating in the afternoon to close higher on the day after spiking notably higher in the morning
June Crude Oil futures rose $1.17 (+2.8%) to $42.34/barrel
Day 3 of the worker strike in Kuwait might be aiding crude oil's recent gains
Output was cut, at least temporarily, to 1.1 mln barrels per day from a more normal 3 mln barrels per day, which helped provide some level of support to oil prices
API inventory data is scheduled to be released tonight after the close
EIA petroleum inventory is scheduled to be released tomorrow at 10:30 am ET
Natural gas surges, seeing a notably smooth uptrend all day, extending yesterday's gains of +2% to add on another +7.7% on the day
May Natural Gas closed $0.15 higher (+7.7%) at $2.09/MMBtu
Cooler weather forecasts might be a catalyst for today's notable price action
Last Thursday's EIA inventory data showed a draw of -3 bcf vs expectations for inventory to remain unchanged, this now seems like more of a catalyst as the cooler-than-expected weather forecasts give more hope that larger amounts of inventory will be drawn down in the future
EIA weekly natural gas inventory data is scheduled to be released this Thursday at 10:30 am ET
In precious metals, gold drifts slightly downward after a morning rally, closing higher on the day
June gold ended today's session up $19.10 (+1.6%) to $1254.20/oz
Silver trades flat with a slightly upward bias after its initial morning rally, ending pit trading higher
May silver closed today's session $0.71 higher (+4.4%) at $16.97/oz
Silver closes pit trading at a 10-month high
Recent rally might be due to the correction in the trading ratio between gold & silver as these two commodities usually track each other but silver has lagged behind this year, traders/investors might be taking advantage of the widened spread, expecting the spread to narrow in the coming weeks/months
A weakening dollar in early pit trading also might have been another catalyst for today's notable rally in May silver futures
Base metal copper trades higher in afternoon pit trading
May copper closed $0.06 higher (+2.9%) at $2.22/lb
Trading in the broader market closed Tuesday split. In the green, the S&P 500 was up 6.46 points (+0.31%) to 2100.80. The Dow Jones Industrial Average was higher by 49.44 points (+0.27%) to 18053.60. The lone laggard today was the tech-heavy Nasdaq Composite which lost 19.69 points (-0.40%) today to close 4940.33. Action today was influenced by weaker than expected economic data, a rally in crude oil (+2.8%), and mixed quarterly earnings results. Trading began the session in the green as overseas bourses managed gains, most notably from the Japanese Nikkei which closed up 3.7% as the index saw strength on the back of weakness in the yen and grumblings of further stimulus measures.

Market data today came in the form of the Housing Starts and Building Permits report for March which was a disappointment. Starts fell 8.8% from the prior month to a seasonally adjusted 1.089 million units. Building permits, meanwhile, declined 7.7% to 1.086 million. Additionally, homes under construction jumped to 990,000 from 985,000 in February.

Technology (XLK 44.31, -0.22 -0.49%) movements were pretty much all to the downside today as early gains were surrendered easily and were never seen again. Component eBay (EBAY 24.30, -1.01 -3.99%) displayed weakness following a pre-market downgrade to Underweight at Morgan Stanley. Additionally, shares of video content streaming service Netflix (NFLX 94.34, -14.06 -12.97%) saw notable downside today following the company's Q1 report and net additions guidance. Other sectors as measured by the S&P closed the day XLB +2.14%, XLE +2.00%, XLF +1.26%, IYZ +0.93%, XLI +0.71%, XLV +0.35%, XLU +0.16%, XLP -0.06%, XLY -0.55% with Tech at the bottom of the pile.

In the S&P 500 Information Technology (735.99, -4.68 -0.63%) sector, trading went by the way of the broader tech sector, but ultimately ended well off session lows. Component IBM (IBM 144.00, -8.53 -5.59%) notably under-performed the broader market following better than expected Q1 results, but shares were notably weighed down by tepid Q2 guidance. Other names in the space which closed Tuesday trade lower included QRVO -4.07%, SWKS -3.36%, AVGO -3.10%, NVDA -1.79%, STX -1.75%, AMAT -1.67%, GOOG -1.65%, ADS -1.57%.

Other notable news items among sector components:

CSC (CSC 33.07 -0.34 -1.02%) signed a three-year contract with Transport for NSW to provide network managed services across the department's 1,200 sites including administration offices, motor registries, roadside depots and railway stations. The agreement, valued at more than AUD$100 million, includes the option of two one-year extensions.

Fuzzy Logix announced availability of its advanced analytics suite - DB Lytix - on Teradata (TDC 25.12, +0.33 +1.33%) Aster Analytics.

Broadcom (AVGO 151.07, -4.83 -3.10%) announced volume production of its new series of quad-core 64-bit 2GHz ARM v8 Cortex-A57 communication processors, the StrataGX BCM5871x, targeting a broad range of networking applications including virtual CPE (vCPE) and NFV appliances, 10G service routers and gateways, control plane processing for Ethernet switches, and network attached storage (NAS).

Kony and Cognizant (CTSH 59.85, -0.53 -0.88%) announced they will jointly develop and deliver solutions spanning enterprise mobile applications, mobile app design, and mobile back-end services to enhance business process efficiencies and security.

Western Digital (WDC 41.32, +0.29 +0.71%) and Veritas Technologies announced that the HGST Active Archive System is now certified with Veritas NetBackup enterprise data protection software.

Elsewhere in the space:

Consolidated Comms Illinois (CNSL 24.26, +0.08 +0.33%) to acquire Champaign Telephone Company and its sister company, Big Broadband Services, for $13.90 million.

Verizon (VZ 52.08, +0.35 +0.68%) and Hearst announced agreement to jointly acquire Complex in a 50/50 ownership structure.

Greenlight Capital/David Einhorn disclosed a reduced stake in SunEdison (SUNE 0.31, -0.02 -8.28%) following recent stock sales. Currently the firm holds a 1.6% stake vs. prior 4.0% stake.

Jack Henry (JKHY 83.33, +0.86 +1.04%) sold Goldleaf Enterprise Payments to Battery Ventures. Financial terms of the deal were not disclosed.

In addition to reporting quarterly results, Rogers Comms (RCI 38.91, -0.26 -0.66%) increased its quarterly dividend to $0.48 per share from $0.3584 per share.

In reaction to quarterly results:

IBM (IBM) reported better than expected Q1 EPS and revenues of $2.35 and $18.68 billion, respectively. The company also reaffirmed FY16 EPS guidance and guided Q2 EPS worse than expected on the conference call - the company noted it sees $13.50 FY16 by the end of the first half of the year; so with Q1 EPS of $2.35, that implies Q2 EPS of about $2.78-2.92 (worse than expectations).

Netflix (NFLX) reported better than expected Q1 EPS of $0.06 on in-line revenues which rose 24.5% versus last year to $1.96 billion. The company also issued downside guidance for Q2 EPS of $0.02. Additionally, the company gave guidance for Q2 US additions of 0.5 million and expects Q2 international contribution loss to improve sequentially.

TD Ameritrade (AMTD 30.98, -0.67 -2.12%) reported in-line Q2 EPS of $0.38 on revenues which were worse than expected at $846 million.

Rogers Comms (RCI) reported worse than expected Q1 EPS of C$0.51 on revenues which were in-line with expectations at C$3.25 billion.

Companies scheduled to report quarterly results tonight/tomorrow morning: CAMP, INTC, LLTC, MANH, VMW, YHOO/APH, ANGI, ARMH, ASML, CHKP, EMC, TEL

Analyst actions:

CRAY was upgraded to Buy from Neutral at Sidoti;
MXIM, ADI, NXPI, SWKS, QRVO, TXN were downgraded to Outperform from Strong Buy at Raymond James,
AEIS and ASML were downgraded to Neutral from Positive at Susquehanna,
AMAT was downgraded to Negative from Neutral at Susquehanna,
ADTN was downgraded to Sell from Neutral at Goldman,
P was downgraded to Mkt Perform from Outperform at Raymond James,
EBAY was downgraded to Underweight from Equal Weight at Morgan Stanley

[ReturntoSender]

From Briefing.com: 4:46 pm SolarCity misses by $0.19, beats on revs; guides Q2 EPS below consensus, revs below consensus (SCTY) :

Reports Q1 (Mar) loss of $2.56 per share, excluding non-recurring items, $0.19 worse than the Capital IQ Consensus of ($2.37); revenues rose 81.6% year/year to $122.57 mln vs the $110.02 mln Capital IQ Consensus.

MW Deployed 214 MW, +40% y/y (Guidance was for 180 MW)."We significantly exceeded our projected 180 MW mostly due to the earlier completion of a large utility-scale project in Maryland that was originally anticipated for Q2 2016".Cost per Watt of $3.18 increased 19% from the fourth quarter of 2015 largely owing to lower volumes.

Installation costs decreased 6% year-over-year, albeit rising 3% quarter-over-quarter to $1.98 due strictly to a larger mix of higher cost commercial projects.structured financed team recorded one of its strongest quarters yet with $728 million in total project financing raised in the quarter (and $1.1 billion through April).Portfolio is 74% residential and 26% C&I and is geographically diversified across 18 states plus D.C. (38% East Coast, 34% California, 13% Arizona, 8% Nevada, and 7% other).

'As this was not only our first transaction but also covered a portfolio that had a higher mix of C&I projects with 10- 15 year contract lengths than we typically install, we view this weighted average cost of capital as a starting point that will trend lower on subsequent transactions and ultimately expect this to be an important new channel for financing our growth in the future'.Consolidated Gross Margins were 11%.

Operating expenses were $227 million, up 54% year-overyearCo issues downside guidance for Q2, sees EPS of ($2.80)-($2.70), excluding non-recurring items, vs. ($2.23) Capital IQ Consensus Estimate; sees Q2 revs of $135-143 mln vs. $152.39 mln Capital IQ Consensus Estimate.Expect GAAP Revenue from Periodic Billings of $105-108 million, Solar Energy Systems and Components Sale Revenue of $14-16 million,Revenue from Operating Lease Prepayments and Upfront Incentives of $16-19 million.

Operating Expenses are forecast to range between $240 million and $250 millionCo sees 185 MW deployed, down 2% y/y.Remain on target for our cost goal of $2.25 per Watt in 2017.Well positioned to achieve goal of generating positive cash by year-end even as we continue to add MW to our portfolio and incur cash expenditures for both research and development activities and our module manufacturing operations.

4:21 pm Novatel Wireless announces partnership agreement to offer Ctrack telematics services to MTN's IoT customer base (MIFI) : The solution enables MTN's business subscribers to seamlessly integrate fleet management and vehicle tracking solutions using MTN's Pan African IoT SIM cards, enabling businesses to benefit from a single rate for IoT activity across the company's footprint in Africa. In addition, this allows companies with transcontinental operations to easily monitor and track vehicles across borders.

4:11 pm MaxLinear beats by $0.01, reports revs in-line; guides Q2 rev midpoint above consensus; acquires wireless infrastructure backhaul business of Broadcom (AVGO) (MXL) :

Reports Q1 (Mar) earnings of $0.47 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.46; revenues rose 190.1% year/year to $102.7 mln vs the $102.22 mln Capital IQ Consensus.

Co issues upside guidance for Q2, sees Q2 revs of $100-104 mln vs. $100.21 mln Capital IQ Consensus Estimate. signed a definitive agreement to acquire certain assets and intellectual property related to the wireless infrastructure backhaul business of Broadcom Corporation, or Broadcom, for $80.0 million in cash.

The acquisition is currently expected to close on or around July 1, 2016, subject to customary closing conditions and regulatory approvals. The acquisition complements MaxLinear's multi-year organic development initiative in wireless microwave backhaul RF transceiver solutions.

4:07 pm Rackspace beats by $0.12, reports revs in-line; guides Q2 revs in-line; guides FY16 revs in-line (RAX) :

Reports Q1 (Mar) earnings of $0.34 per share, excluding non-recurring items, $0.12 better than the Capital IQ Consensus of $0.22; revenues rose 7.9% year/year to $518.1 mln vs the $519 mln Capital IQ Consensus. Co issues in-line guidance for Q2, sees Q2 revs of $519-524 mln vs. $523.72 mln Capital IQ Consensus Estimate. Co issues in-line guidance for FY16, sees FY16 revs of $2.08-2.16 vs. $2.12 bln Capital IQ Consensus Estimate.

4:05 pm Applied Optoelectronics beats by $0.01, misses on revs; guides Q2 EPS below consensus, revs below consensus (AAOI) :

Reports Q1 (Mar) loss of $0.04 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of ($0.05); revenues rose 66.9% year/year to $50.4 mln vs the $51.47 mln Capital IQ Consensus. Co issues downside guidance for Q2, sees EPS of $0.04-0.08, excluding non-recurring items, vs. $0.22 Capital IQ Consensus Estimate; sees Q2 revs of $49.5-52.0 mln vs. $56.26 mln Capital IQ Consensus Estimate.

4:05 pm Vivint Solar misses by $0.06, misses on revs (VSLR) :

Reports Q1 (Mar) loss of $0.65 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus of ($0.59); revenues rose 81.1% year/year to $17.2 mln vs the $17.89 mln Capital IQ Consensus. MW Booked of approximately 66 MWs for the quarter, up 33% year-over-year. MW Installed of approximately 55 MWs, up 19% year-over-year. Total cumulative MWs installed were approximately 514 MWs. Installations were 7,704 for the quarter, up 20% year-over-year. Cumulative installations were 76,231.

4:05 pm SolarEdge Technologies beats by $0.10, beats on revs; guides Q2 revs in-line (SEDG) :

Reports Q1 (Mar) earnings of $0.51 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus of $0.41; revenues rose 44.9% year/year to $125.2 mln vs the $123.23 mln Capital IQ Consensus. Co issues in-line guidance for Q2, sees Q2 revs of $125-134 mln vs. $134.18 mln Capital IQ Consensus Estimate; Gross margins to be within the range of 29-31%.

4:03 pm Lattice Semi misses by $0.16, misses on revs; guides Q2 revs below consensus (LSCC) :

TECH STOCKS - Reports Q1 (Mar) loss of $0.17 per share, $0.16 worse than the Capital IQ Consensus of ($0.01); revenues rose 8.9% year/year to $96.5 mln vs the $98 mln Capital IQ Consensus.Non-GAAP Gross Margin 60.0%.Co issues downside guidance for Q2, sees Q2 revs of $97-103 mln vs. $107.43 mln Capital IQ Consensus Estimate.Sees Non-GAAP EPS in the range of 55-59%.

Broader market action closed out Monday split, with the decline solely in the lap of the Dow Jones Industrial Average which lost 34.72 points (-0.20%) today to close 17705.91 owing the decline a sell-off in June Crude Oil futures which fell -2.6% today and news that the Saudi oil minister Ali al-Naimi was replaced by the Chairman of the Saudi Arabian Oil Co, Khalid al-Falih. On the other hand, the advance was led by the tech-heavy Nasdaq Composite which added 14.05 points (+0.30%) today, ending 4750.21. The S&P 500 finished in the middle, modest higher by 1.55 points (+0.08%) to 2058.69.

The rebound in crude oil came on the heels of reports, which indicated that the wildfire impacting Canada's oil-sands region may result in production losses between 645,000 and one million barrels per day. However, the energy component would shed these gains ahead of the opening bell.

Equity futures slipped overnight as investors digested disappointing April import (-10.9% YoY) and export (-1.8%) data out of China. Compounding the negative datapoints were comments from a high-ranking Chinese official, who cast doubt on further monetary stimulus. The commentary was also underscored by caution towards the speed of a rebound in China's economy. However, futures shook off early weakness following above-consensus German Factory Orders for March (+1.9%) and a rebound in oil.

Sectors as measured by the S&P finished split on Monday, looking something like this XLV +1.14%, XLU +0.57%, XLP +0.54%, XLY +0.28%, IYZ -0.03%, XLF -0.26%, XLI -0.45%, XLB -1.21%, XLE -1.46%. Technology (XLK 42.25, flat) finished unchanged, as the majority of the session was spent above flat lines, but gains would not hold. Component Harris (HRS 75.66, +1.07 +1.43%) was notably strong as it was announced Friday after the close that the company was the recipient of a $405.5 million contract from the US Army.

In the S&P 500 Information Technology (697.64, +0.09 +0.01%) sector, trading edged lower into the close but ultimately ended with modest gains. Component Fiserv (FISV 103.62, +0.98 +0.95%) displayed relative out-performance following a premarket upgrade at Argus to a Buy rating from a Hold. Other names in the space which finished higher included FFIV +1.21%, TSS +1.07%, FISV +0.95%, EA +0.91%, EBAY +0.84%, FIS +0.67%, SWKS +0.65%, V +0.64%, FLIR +0.63%, INTU +0.62%, APH +0.55%, QCOM +0.55%, GOOGL +0.54%.

Other notable news items among sector components:

According to a WSJ article, Salesforce.com (CRM 74.62, +0.37 +0.50%) agreed to acquire data-entry automation company Implisit Insights.

Harris (HRS) received a $405.5 million contract from the US Army.

Ipswich City Council has selected Accenture (ACN 115.47, -0.04 -0.03%) to progress their 'Smart City' Transformation Strategy and Implementation Plan. This initiative will develop and deliver an innovative blueprint to optimise city operations, enhance community engagement, cultivate digital technology capabilities and lead economic innovation.

NVIDIA (NVDA 35.28, -0.05 -0.14%) announced the NVIDIA GeForce GTX 1080 -- the first gaming GPU based on the company's new Pascal architecture -- providing up to 2x more performance in virtual reality compared to the GeForce GTX TITAN X.

IBM (IBM 147.34, +0.07 +0.05%) and SK Holdings (SKCXF) announced plans to bring IBM's Watson cognitive services to South Korea. The strategic alliance, which includes training Watson to understand Korean, is designed to dramatically accelerate the adoption of cognitive computing throughout the region, giving South Korea-based developers a set of localized APIs and services they can use to help create their own applications and build new businesses.

Elsewhere in the tech space:

Booz Allen Hamilton (BAH 27.71, +0.13 +0.49%), Leidos (LDOS 49.09, -0.12 -0.24%), and two other non-public companies received an approximate $250 million contract from the US Army.

IPG Photonics (IPGP 84.53, +0.76 +0.91%) acquired Menara Networks for $46.8 million in cash. The company expects immediate earnings accretion per the deal.

Qihoo 360 Tech (QIHU 65.11, -8.30 -11.31%) confirmed the awareness of privatization rumors. The company believes these rumors to be untrue.

FactSet (FDS 151.90, +1.33 +0.88%) increased its quarterly dividend to $0.50 per share from $0.44 per share.

Groupon (GRPN 3.37, +0.08 +2.43%) sold Breadcrumb to Upserve. Financial terms of the deal were not disclosed.

In reaction to quarterly results:

ON Semiconductor (ON 9.11, -0.30 -3.19%) reported better than expected Q1 EPS of $0.17 on in-line revenues which fell 6.2% versus last year to $817.2 million. ON also guided Q2 revenues in-line at $835-875 million.

Ebix (EBIX 47.82, +0.58 +1.23%) reported better than expected Q1 EPS and revenues of $0.67 and $71.1 million, respectively.

Stratasys (SSYS 20.79, -0.27 -1.28%) reported better than expected Q1 EPS and revenues of $0.01 and $167.9 million, respectively. SSYS also reaffirmed FY16 EPS and revenue guidance of $0.17-0.43 and $700-730 million, respectively.

Tower Semi (TSEM 12.51, +0.75 +6.38%) reported Q1 EPS of $0.34 and revenues which rose 22.9% versus last year to $278 million. TSEM also guided Q2 revenues in-line at $285-315 million.

Q2 Holdings (QTWO 24.91, +1.74 +7.51%) reported better than expected Q1 EPS and revenues of ($0.11) and $33.8 million, respectively.

Companies scheduled to report quarterly results tonight/tomorrow morning: AAOI CNXR CVG DMD DTSI GLOB INVN LSCC MXL MODN OPWR FENG RAX RNET SREV SSNI SCTY SEDG SEMI TTGT TTEC TUBE TCX/SATS IMN NTWK NOK OTIV PERI SPNS VPG ZBRA

Analyst actions:
FISV upgraded to Buy from Hold at Argus,
FIS upgraded to Buy from Hold at Jefferies, CAMP upgraded to Buy from Neutral at Sidoti,
COMM upgraded to Buy from Neutral at Goldman; WDAY downgraded to Sell from Hold at Brean Capital, CVT downgraded to Mkt Perform from Mkt Outperform at JMP Securities, TEL downgraded to Neutral from Buy at Goldman, EGAN downgraded to Neutral from Buy at Ladenburg Thalmann; MLNX initiated with a Buy at Brean Capital

4:10 pm : The stock market began its week on a flat note as a rebound in the heavyweight health care (+1.1%) sector compensated for a downturn from the oil pit. Additional focal points for today's trade included strengthening in the dollar, weakness in commodities, and the outperformance of the heavy-weighted consumer discretionary space (+0.3%). The Nasdaq Composite (+0.3%) ended ahead of the S&P 500 (+0.1%) and the Dow Jones Industrial Average (+0.1%).

The major averages slipped from their opening levels as investors focused their attention on a persistent downturn in crude oil. The energy component abandoned its early gains as participants weighed a four-month rally in oil against the impact of an ongoing wildfire in Canada's oil-sands region. Early estimates project that the fire near Fort McMurray will result in production losses between 645,000 and one million barrels per day. However, the energy component has already rallied 66.2% since its closing low of $26.14/bbl on February 11.

To be fair though, dollar-denominated gold (-2.1%; 1,226.80/ozt), iron ore (-6.3%; $54.65/mt), and copper (-2.3%; 2.10/lb) also ended the day lower as they each felt pressure from an uptick in the greenback and below-consensus data out of China. Over the weekend, April import (-10.9% year-over-year; expected -5.0%) and export (-1.8%; consensus -0.1%) data from China came in below consensus while commentary from a high-ranking official called into question further stimulus measures from the government.

Equity indices ticked off their session lows in the early afternoon as the heavily-weighted health care (+1.1%) and consumer discretionary (+0.3%) spaces extended their gains. The two finished near the top of the leaderboard along with countercyclical consumer staples (+0.6%) and utilities (+0.5%). Conversely, commodity-sensitive energy (-1.2%) and materials (-1.3%) rounded out the board.

In the health care sector (+1.1%), generic drug names outperformed as they rebounded from losses registered in the wake of disappointing guidance from Endo International (ENDP 15.27, -0.90). On that note, Allergan (AGN 213.71, +12.06) gained 6.0% today after declining 4.1% last Friday. The company is scheduled to deliver its quarterly report tomorrow morning. Elsewhere, biotechnology outperformed, evidenced by the 2.6% gain in the iShares Nasdaq Biotechnology ETF (IBB 261.90, +6.62).

The SPDR S&P Retail ETF (XRT 43.73, +0.70) outperformed in the consumer discretionary space (+0.3%) as retail names rebounded from a selloff following last week's disappointing same-store sales readings. Elsewhere, Chipotle Mexican Grill (CMG 453.17, +19.36) gained 4.5%, closing above last week's high ($447.46). On the flipside, JD.com (JD 23.41 ,-1.78) fell 7.1% after sales volume declined alongside growth concerns in China.

In the energy space (-1.2%) oil and gas service names underperformed with Halliburton (HAL 38.69, -0.75) and Schlumberger (SLB 72.77, -2.35) declining 1.9% and 3.1%, respectively. The broader energy sector extended its May decline to 4.2%, compared to a loss of 0.3% in the benchmark index.

The U.S. Dollar Index (94.14, +0.25) ended higher as the greenback gained against the yen and euro. The dollar/yen pair finished higher by 1.2% (108.38) after commentary from Japanese Finance Minister Taro Aso alluded to intervention in the foreign exchange market if the yen poses a continuing risk to trade or the country's broader economy. Separately, the euro lost 0.2% against the dollar (1.1383).

The Treasury complex ended its day higher with the yield on the 10-yr note slipping three basis points to 1.75%.

Today's trading volume was above the recent average as more than 941 million shares changed hands on the NYSE floor.

Investors did not receive any noteworthy economic data today.

Tomorrow's economic data will include the March Job Openings and Labor Turnover Survey and Wholesale Inventories for March (Briefing.com consensus +0.2%), which will both cross the wires at 10:00 ET.

Nasdaq Composite -5.1% YTD
Russell 2000 -1.5% YTD
S&P 500 +0.7% YTD
Dow Jones +1.6% YTD

[ReturntoSender]

From Briefing.com: Weekly Recap - Week ending 13-May-16After registering two consecutive weekly losses, the stock market faced a range-bound week, which ended with a modest slip for the S&P 500. The benchmark index surrendered 0.5% for the week while the Nasdaq Composite outperformed slightly, shedding 0.4%.

The trading week featured a fair dose of economic data, which included an in-line Core PPI reading for April (+0.1%) and better than expected April Retail Sales (+1.3%; Briefing.com consensus 0.8%). The dollar responded by continuing its rebound off the 2016 low that was registered on May 3. The Dollar Index added 0.7% for the week, settling near levels from late March/early April.

Market participants received another batch of quarterly earnings during the week, but the results did not have a far-reaching impact. At the end of the week, nearly 92.0% of S&P 500 components had reported their results. Blended earnings were down 7.0% year-over-year while earnings on a reported basis were down 7.6%.

Investors heard from a handful of Fed officials throughout the week with some cautioning that the possibility of a rate hike in June should not be dismissed entirely. The fed funds futures market, however, remains convinced that the next rate hike will not come before December. The market is pricing in just an 8.0% likelihood of a rate increase in June while the probability of a December hike is at 62.0%.

Index Started Week Ended Week Change % Change YTD %
DJIA 17740.63 17539.77 -200.86 -1.1 0.7
Nasdaq 4736.16 4718.89 -17.27 -0.4 -5.8
S&P 500 2057.14 2047.10 -10.04 -0.5 0.2
Russell 2000 1114.72 1102.30 -12.42 -1.1 -3.0

6:01 pm Lam Research and KLA-Tencor (KLAC) receive request for additional information on their proposed transaction from the DoJ (LRCX) : The companies are working with the staff of the DOJ on the terms of a consent decree. Lam Research and KLA-Tencor remain confident of securing necessary regulatory approvals and expect the transaction to close in the third calendar quarter. The companies have received clearance from competition authorities in Germany, Ireland, Israel and Taiwan and are in discussions with competition regulators in other jurisdictions.

4:16 pm Corning announces extension of tender offer for shares of Alliance Fiber Optic Products (AFOP) (GLW) :

Co announced that it, along with Apricot Merger Co ("Purchaser"), a direct, wholly owned subsidiary of Corning, pursuant to the Agreement and Plan of Merger dated April 7, 2016 (the "Merger Agreement"), among Corning, Purchaser, and Alliance Fiber Optic Products (AFOP), has exercised its right to extend the offering period of its previously announced tender offer to purchase all of the outstanding shares of common stock of AFOPThe Merger Agreement allows Corning to extend the offering period if the transactions between Corning and Dow Corning Corporation that were previously announced on December 11, 2015 are not yet closed.

4:13 pm Closing Market Summary: Averages End Week Lower as Retailers Weigh (:WRAPX) :

The stock market ended a downbeat week on a lower note as equities pulled back following continued weakness from the retail sub-group. Additional focal points included the S&P 500 (-0.9%) breaching technical support at its 50-day simple moving average (2054.74), mounting selling pressure from the oil pit, a leg higher in the dollar, and weakness from the heavyweight financial (-1.3%), industrial (-1.2%), and consumer discretionary (-1.2%) sectors. The Dow Jones Industrial Averages (-1.1%) finished behind the S&P 500 (-0.9%) and the tech-heavy Nasdaq (-0.4%).

The major averages opened on a mixed note as investors weighed a positive reading of April Retail Sales (+1.3%; Briefing.com consensus +0.8%) against continued weakness in the retail space. Reports from Nordstrom (JWN 39.16, -6.07) and Dillard's (DDS 59.86, -0.78) capped off a bad week for the group as both offered below-consensus results for their quarters.

Equities were unable to find their bearings as a persistent downturn in crude oil and strength in the dollar kept pressure on the broader market. The S&P 500 (-0.9%) tested and defended support near its 50-day simple moving average (2054.74) in the late morning, but was unable to do so again when retesting that level in the early afternoon.

The major averages ebbed lower through the afternoon as heavily-weighted financials (-1.3%), industrials (-1.2%), and consumer discretionary (-1.2%) extended their losses to round out the leaderboard. For its part, WTI crude ended its week on a down note ($46.22/bbl; -0.9%), but still finished with a gain of 3.7% since last Friday's settlement at $44.59/bbl.

In the industrial sector (-1.2%), rail names ended with larger losses as Norfolk Southern (NSC 85.97, -2.21) and Kansas City Southern (KSU 87.97, -2.21) finished the day lower by 2.5% apiece. The industrial group showed broad-based weakness as construction machinery names and aerospace and defense names all ended with meaningful losses. Furthermore, the Dow Jones Transportation Average (-1.2%) erased its 2016 gain and is now flat for the year.

The financial sector (-1.3%) saw weakness in money center banks and real estate investment trusts (REITs). The largest losses among REITs came from those with primary holdings in retail properties. The names moved lower during the week as they traded lower with the SPDR S&P Retail ETF (XRT 41.04, -0.57). Simon Properties (SPG 196.49, -5.95) and General Growth (GGP 27.67, -0.46) extended their weekly declines to 6.8% and 5.9%, respectively.

Retail names continued to underperform in the consumer discretionary space (-1.2%). Nordstrom (JWN 39.16, -6.07) ended its day lower by 13.4%, finishing the week down 18.5%. Elsewhere, Macy's (M 31.22, +0.01) and Kohl's (KSS 35.74, +0.59) outperformed.

Conversely, health care (-0.2%) and technology (-0.3%) finished the day with the slimmest losses. In the health care space (-0.2%) biotechnology showed relative strength, evidenced by the 0.9% gain in the iShares Nasdaq Biotechnology ETF (IBB 253.90, +2.17).

Treasuries ended on a mixed note with the 10-yr note ending near its best level of the session. The yield on the 10-yr note slipped five basis points to 1.70%.

Volume was heavier than average with 854 million shares trading at the NYSE. The advance-decline line favored decliners at the NYSE by a 2-to-1 margin.

Today's economic data included Core PPI for April, Retail Sales for April, March Business Inventories, and the preliminary reading of the University of Michigan Consumer Sentiment Survey for May:

The index for final demand was up 0.2% (Briefing.com consensus +0.3%), driven by a 0.1% increase in the index for final demand services and a 0.2% increase in the index for final demand goods.
The Producer Price Index for April didn't upset the inflation apple cart.
The index for final demand, excluding food and energy, was up 0.1% as expected.On an unadjusted basis, the final demand index was unchanged for the 12 months ended in April after being down 0.1% in March. Excluding food and energy, the final demand index was up 0.9% versus up 1.0% in March.The April Retail Sales report was much better than expected. Total retail sales increased 1.3% month-over-month (Briefing.com consensus +0.8%).That gain was fueled by a 3.2% increase in auto sales, a 2.2% jump in gasoline station sales, and a 2.1% uptick in sales at nonstore retailers.Excluding autos, retail sales increased 0.8% (Briefing.com consensus +0.5%) on top of an upwardly revised 0.4% increase (from +0.2%) in March.The retail sales gains in April were fairly broad-based. The only decline seen was in building material, garden equipment, and supplies dealers (-1.0%), which might have been impacted from the unseasonably cool spring temperatures. General merchandise store sales were flat, yet department store sales were reportedly up 0.3%.This is a good report that will feed favorably into Q2 GDP forecasts based on the recognition that core retail sales, which exclude auto, gas, building material, and food services sales, increased 0.9%.
These sales factor into the computation of the goods component for personal consumption expenditures.
Total business inventories increased 0.4% in March (Briefing.com consensus +0.2%) after an unrevised 0.1% decline in February.
Manufacturers' inventories (+0.2%) and wholesaler inventories (+0.1%) were already known.
Retailer inventories were the only unknown and they increased 1.0% on the heels of a 0.7% increase in February.
The biggest driver of the increase in retailer inventories was a 2.3% increase in motor vehicle and parts dealers inventories.
The only retail category seeing an inventory decline in March was food and beverage stores (-0.8%).
The total business inventory-to-sales ratio was 1.41 in March, which was unchanged from February but up from 1.37 in March 2015.The University of Michigan's Preliminary Consumer Sentiment report for May brought some good news to the market as the index spiked to 95.8 from the final reading of 89.0 in April.
The Briefing.com consensus estimate was pegged at 90.0.
The uptick was attributed largely to an improved outlook among consumers due to more frequent income gains, a better jobs outlook, and the expectation of lower inflation and interest rates.
Those views were reflected in the Expectations Index, which surged to 87.5 from 77.6 in April.
The Current Economic Conditions Index also improved, rising more modestly to 108.6 from 106.7.
In the same period a year ago, the Index of Consumer Sentiment stood at 90.7.
May marked the first time in four months that there was an increase in consumer sentiment.Monday's economic data will be limited to Empire Manufacturing for May (Briefing.com consensus 6.2) and the May NAHB Housing Market Index (Briefing.com consensus 59), which will be released at 8:30 ET at 10:00 ET, respectively. Separately, March Net Long-Term TIC Flows will be released at 16:00 ET.

Nasdaq Composite -5.8% YTDRussell 2000 -2.9% YTDS&P 500 +0.1% YTDDow Jones +0.6% YTDWeek in Review: Searching for Direction

After registering two consecutive weekly losses, the stockmarket faced a range-bound week, which ended with a modest slip for theS&P 500. The benchmark index surrendered 0.5% for the week while the Nasdaq Compositeoutperformed slightly, shedding 0.4%.

The trading week featured a fair dose of economic data,which included an in-line Core PPI reading for April (+0.1%) and better thanexpected April Retail Sales (+1.3%; Briefing.com consensus 0.8%). The dollarresponded by continuing its rebound off the 2016 low that was registered on May3. The Dollar Index added 0.7% for the week, settling near levels from lateMarch/early April.

Market participants received another batch of quarterlyearnings during the week, but the results did not have a far-reaching impact.At the end of the week, nearly 92.0% of S&P 500 components had reportedtheir results. Blended earnings were down 7.0% year-over-year while earnings ona reported basis were down 7.6%.

Investors heard from a handful of Fed officials throughoutthe week with some cautioning that the possibility of a rate hike in June shouldnot be dismissed entirely. The fed funds futures market, however, remainsconvinced that the next rate hike will not come before December. The market ispricing in just an 8.0% likelihood of a rate increase in June while the probabilityof a December hike is at 62.0%.

Following yesterday's mixed closed to equities, the market capped off a what would have been a flat week with losses. The negative bias grew about midday, and ultimately ended with the Dow Jones Industrial Average at the bottom, down 185.18 points (-1.05%) to 17535.32. The S&P 500 closed lower by 17.50 points (-0.85%) to 2046.61. The Nasdaq Composite shed 19.66 points (-0.41%) today to end 4717.68. Today's action takes the three major indices +0.6%, +0.1% and -5.8% YTD, respectively.

The stock market traded lower as investors weighed the latest batch of weak results from the retail sub-group against an above-consensus reading of April Retail Sales (+1.3%). Permeating the markets were disappointing quarterly results and guidance from Nordstrom (JWN 39.16, -6.07 -13.42%). The company missed expectations for its quarter, adding to the negative results that retail names have reported this earning season. On that note, the SPDR S&P Retail ETF (XRT 41.04, -0.57 -1.37%) has lost -4.6% this week, compared to a loss of -1.5% in the broader consumer discretionary sector.

To that end, sectors finished Friday XLE -1.28%, XLP -1.26%, XLI -1.26%, XLF -1.21%, XLY -1.19%, XLB -0.97%, XLU -0.48%, IYZ -0.36%, XLV -0.23% as measured by the S&P. Technology (XLK 42.21, -0.16 -0.38%) closed today rather flat as morning gains turned into afternoon losses and the sector returned to its YTD losing ways, now standing -1.5% during that timeframe. Component Symantec (SYMC 16.79, -0.11 -0.65%) finished with a muted session following the company's in-line Q1 guidance and lowered quarterly dividend.

In the S&P 500 Information Technology sector (697.27, -1.98 -0.28%), the week wrapped up with losses, taking the sector to -3.4% YTD. Component NVIDIA (NVDA 40.98, +5.41 +15.21%) performed the best today on the back of a better than expected Q1 report and Q2 revenue guidance. Other names in the space which ended modestly lower with the sector included TDC -3.26%, WDC -2.53%, XRX -2.27%, TEL -1.67%, YHOO -1.49%, SWKS -1.48%, V -1.36%, FISV -1.32%, APH -1.29%, AKAM -1.23%, FSLR -1.08%.

Other notable news items among sector components:

Skyworks (SWKS 60.75, -0.91 -1.48%) appointed Liam Griffin as CEO. Current CEO David Aldrich will continue as the chairman.

Apple (AAPL 90.52, +0.18 +0.20%) plans to invest $1 billion in China ride sharing company Didi.
In addition to reporting quarterly results, Symantec (SYMC) reduced their quarterly dividend to $0.075 from $0.15 per share.

IBM (IBM 147.72, -1.18 -0.79%) announced data analytics and consumer insights provider, evolve24, is adopting IBM Cloud to host its neuroscience omni-channel data analytics platform for improved performance and scalability.

Oracle (ORCL 39.61, -0.22 -0.55%) announced an increasing number of hospitals and healthcare systems worldwide are choosing Oracle Enterprise Resource Planning (ERP) Cloud to help increase productivity, lower costs, and improve controls. Adventist Health, Family Health, Presbyterian Medical Services, and Southern New Hampshire Health are just a few of the more than 1,800 organizations that have recently turned to Oracle ERP Cloud.

Elsewhere in the tech space:

SeaChange (SEAC 3.35, -0.02 -0.59%) acquired DCC Labs for $8 million in cash and stock, closed May 9. The transaction is expected to be accretive in fiscal 2017.

Advanced Micro (AMD 3.67, +0.08 +2.23%) appointed John Caldwell as Chairman, succeeding Bruce Claflin.

SunEdison (SUNEQ 0.17, -0.00 -0.52%) provided Chief Administration Officer, Chief Accounting Officer and Chief Financial Officer Brian Wuebbels a formal 30-day notice of the termination of his employment.

Hackett Group (HCKT 14.68, +0.23 +1.59%) increased its existing buyback by $5 million for total of $8.1 million share repurchase program.

ON Semiconductor (ON 8.95, -0.02 -0.22%) and Fairchild Semi (FCS 19.86, -0.03 -0.15%) extended their previously announced $20.00 per share cash tender offer to purchase all of the outstanding shares until May 26.

Tyler Tech's (TYL 149.33, +1.22 +0.82%) Board authorized the repurchase of up to an additional 1.5 million shares of common stock, bringing the total authorization to 2.1 million shares.

Intricon (IIN 5.29, -0.20 -3.64%) announced and priced a 700,000 share public offering of common stock at $5.25 per share.

In reaction to quarterly results:

NVIDIA (NVDA) reported better than expected Q1 EPS and revenues of $0.46 and $1.3 billion, respectively. Further, the company guided Q2 revenues ahead of expectations at about $1.35 billion (plus or minus about 2% which equates to about $1.323-1.377 billion).

Symantec (SYMC) issued in-line guidance for Q1 EPS of $0.24-0.26 and revenues of 3-6%. They noted expectations for Q2 revenue growth and margins to be similar to Q1 and improve in the second half of 2017 as they benefit from the deferred revenue tailwind of more ratable revenue and start to see results from their efficiency program. The company also issued in-line guidance for FY17 EPS of $1.06-1.10.

Bitauto Holdings (BITA 21.44, -3.12 -12.70%) reported worse than expected Q1 EPS of $0.07 on better than expected revenues which rose 48.5% versus last year to $168 million. Additionally, BITA guided Q2 revenues ahead of expectations at $209.4-217.1 million.

Luxoft Holding (LXFT 61.19, +2.89 +4.96%) reported better than expected Q4 EPS and revenues of $0.56 and $169.2 million, respectively. The company also guided FY17 EPS worse than expectations at at least $2.85, but guided revenues for FY17 ahead of expectations at at least $780.9 million.

Companies to be aware of that report on Monday: Premarket - LEJU, VRTU; After-hours - A, SCOR, MXPT, XCOM

Analyst actions:

NVDA was upgraded to Buy at Topeka Capital Mkts and Roth Capital,
CYBR and NOK were upgraded to Buy from Neutral at BofA/Merrill;
WDC was downgraded to Underperform from Neutral at BofA/Merrill,
TXTR was downgraded to Mkt Perform from Mkt Outperform at JMP Securities,
APPF was downgraded to Equal Weight from Overweight at Morgan Stanley,
SMGZY was downgraded to Hold from Buy at Jefferies;
VECO was initiated with an Overweight at Pacific Crest,
CREE was initiated with a Sector Weight at Pacific Crest,
ANET was initiated with a Neutral at JP Morgan,
SSNC was initiated with an Outperform at RBC Capital Mkts,
NEWR was initiated with a Neutral at Robert W. Baird

11:44 am NVIDIA (+13%) breaks out to new all time highs following beat and raise report (NVDA) : Topeka and ROTH upgraded the stock to Buy this morning.

[ReturntoSender]

From Briefing.com: 4:15 pm : The S&P 500 (+1.4%) ended the Tuesday session above its 50-day simple moving average (2062) as stocks rallied in the wake of a positive reading of April New Home Sales (619,000; Briefing.com consensus 521,000). Other contributing factors for today's gain included support from the oil pit and the outperformance of the heavyweight technology (+2.1%), financial (+1.6%), and health care (+1.5%) spaces. The tech-heavy Nasdaq (+2.0%) finished ahead of both the S&P 500 (+1.4%) and the Dow Jones Industrial Average (+1.2%).

The major averages gapped up to begin the day as a positive bias in European markets helped boost U.S. equities at the open. Separately, the broader market found support from a reversal in oil as the energy component erased a 0.9% ($46.64/bbl) loss, ending the pit session higher by 1.1% ($48.65/bbl).

Equity indices climbed through the morning as positive quarterly results from Toll Brothers (TOL 29.46, +2.36) and an above-consensus reading of April New Home Sales helped extend the rally in the broader market. The positive housing reading can be added to the myriad of recent reports, which could lend themselves supportive to the Fed's argument to continue hiking interest rates. On that note, the fed funds futures market calculates the probability of an interest rate hike at the June meeting at 34.0%, compared to yesterday's 30.0% likelihood.

The benchmark index climbed to a fresh high in the final hour, ending above resistance at the 2073/2074 price level. All ten sectors finished in the green with heavily-weighted technology (+2.1%), financials (+1.5%), health care (+1.5%) and consumer discretionary (+1.3%) leading the advance.

The high-beta chipmakers outperformed in the technology space (+2.1%), evidenced by the 2.4% gain in the PHLX Semiconductor Index. In the index, Xilinx (XLNX 47.45, +2.56) gained 5.7% as investors speculated that the name is an M&A target for Qualcomm (QCOM 55.59, +1.41). Elsewhere, Microsoft (MSFT 51.59, +1.56) jumped 3.1% after receiving an upgrade to "Outperform" at Cowen. The tech giant also received a positive mention in Barron's during the afternoon.

In the financial sector (+1.5%), asset management names and investment brokerages outperformed. Charles Schwab (SCHW 30.22, +0.94) ended the day higher by 3.2% while Affiliated Managers (AMG 170.66, +5.77) gained 3.5%. Conversely, rate sensitive real estate investment trusts ended behind the broader sector.

Biotechnology demonstrated relative strength in the health care space (+1.5%). The iShares Nasdaq Biotechnology ETF (IBB 272.04, +6.01) gained 2.3% today, erasing its May loss. On the flipside, Anthem (ANTM 128.48, -4.70) lost 3.5% after being downgraded to "Neutral" from "Buy" at Sterne Agee CRT. CIGNA (CI 124.81, -1.34) fell 1.1% on headwinds to the company's proposed merger with Anthem. For the month, Anthem and CIGNA have lost 8.7% and 9.9%, respectively.

In the consumer discretionary space (+1.3%), Netflix (NFLX 97.89, +3.00) gained 3.2% after Stifel provided bullish commentary on the name. The firm cited a new timeline for film releases and the company's output deal with Disney (DIS 99.51, +0.33).

The U.S. Dollar Index (95.60, +0.37) finished higher with the greenback gaining ground against the euro and the yen. The euro/dollar pair ended lower by 0.7% (1.1143) while the dollar gained 0.7% against the yen (109.98).

Treasuries retreated today as the yield on the 10-yr note rose three basis points to 1.86%.

Today's participation was below the recent average as fewer than 867 million shares changed hands on the NYSE floor.

Today's economic data was limited to the April New Home Sales Report:

New home sales surpassed estimates in April, running at a seasonally adjusted annual rate of 619,000 (Briefing.com consensus 521,000).
That represented a 16.6% increase from March, which saw an upward revision to 531,000 from a previously reported 511,000.
Not only did the April reading come in well ahead of expectations, but the upward revision to the March figure vaulted that reading past last month's Briefing.com consensus estimate, which stood at 521,000.
New home sales in April were up 22.8% versus the same month a year ago and today's report pointed to the best month of new home sales since January 2008.
Thanks to the pick-up in activity, the April rate was above the prior 3-month average of 531,667.
Median sales price increased 9.7% year-over-year to $321,100.
At the current sales pace, the inventory of unsold new homes stands at a 4.7 months' supply, which is down from 5.8-months' supply in March and below the 6.0-months' supply that is typically associated with normal periods of buying selling.

Tomorrow's economic data will include the 7:00 ET release of the weekly MBA Mortgage Index. The day's data will be capped off with the advance reading of the April International Trade in Goods and the March FHFA Housing Price Index, which will cross the wires at 8:30 ET and 9:00 ET, respectively. DJ30 +213.12 NASDAQ +95.27 SP500 +28.02 NASDAQ Adv/Vol/Dec 8832/1.77 bln/608 NYSE Adv/Vol/Dec 2325/866.8 mln/703

3:30 pm :

The dollar index gains momentum, currently up +0.4% around the 95.62 level, weighing on commodities
Commodities, as measured by the Bloomberg Commodity Index, are down -0.2% at 84.17
Crude oil trends higher ahead of today's scheduled API inventory data
July crude oil futures rose $0.53 (+1.1%) to $48.65/barrel
Reminders:
Demand for gasoline is high as memorial day weekend approaches
Steady U.S. oil production drop, just under 8.8 mln barrels a day
The next OPEC meeting is scheduled to take place on June 2, 2016
API petroleum inventory data is scheduled to be released today after the bell
EIA petroleum inventory data is scheduled to be released at 10:30 am ET tomorrow
Natural gas extends last session's losses, closing near early morning lows of the day
July natural gas closed $0.05 lower (-2.3%) at $2.15/MMBtu
Natural gas futures have switched their front months to July, as indicated by the active amount of volume in the contracts
EIA natural gas inventory data is scheduled to be released Thursday at 10:30 am ET
In precious metals, gold finishes at a fresh low of the day as the dollar broke out to new highs of the day
June gold ended today's session down $22.50 (-1.8%) to $1228.80/oz
Silver exhibited notable volatility, briefly trading in the green in early morning pit trading before reversing and closing near the lows of the day
July silver closed today's session $0.17 lower (-1.0%) at $16.25/oz
Base metal copper inches higher despite strength in the dollar index
July copper closed $0.01 higher (+0.5%) at $2.07/lb
July corn closed $0.02 lower (-0.5%) at $3.96/bushel
Corn futures are up 10% year-to-date
July wheat closed $0.02 higher (+0.4%) at $4.65/bushel
Wheat futures are 2.3% lower year-to-date
July soybeans closed $0.03 lower (-0.3%) at $10.54/bushel
Year-to-date, soybeans futures are up 21%
Late yesterday, the USDA released its weekly crop progress report:
In the corn belt yesterday, the USDA reported that showers and thunderstorms are spreading across the upper Midwest, closing a window of opportunity for soybean and late-season corn planting. Meanwhile in the eastern Corn Belt, warm, dry weather favors a gradual acceleration of planting as fields begin to dry out
The agency reported that U.S. farmers now have planted 86% of this year's corn crop, which compared to the 5-year average of 85%, but below last year's rate of 90%
Meanwhile, soybean planting progress is at 56%, which is higher than the 5-year average of 52% and in-line with this same week last year
Lastly, 95% of this year spring wheat crop is planted, well ahead of the 5-year average of 77% and in-line with this same week last year
This data was bearish for soybeans and wheat, but more neutral for corn prices

Today's session began on a higher note as U.S. futures moved up alongside European bourses. In Europe, May's ZEW Economic Sentiment readings for the eurozone and Germany disappointed and prompted speculation regarding potential monetary policy stimulus. Additionally, strength from the oil patch helped bolster equities as oil reversed off its low ($47.64/bbl). July Crude Oil Futures closed the day up 1.1%.

The markets were on a torrid pace for most of the session, with the three major US indices all ending barely off session highs. The tech-heavy Nasdaq Composite was the best performer today, ending an even 2.0% higher on a 95.27 uptick to end 4861.06. The S&P 500 was up 28.02 points (+1.37%) when the session was over to 2076.06. The Dow Jones Industrial Average was up a modest 213.12 points (+1.22%) to 17706.05, but all joking aside, still had an impressive session albeit overshadowed by more aggressive gains elsewhere. Market data today included the new home sales reading, which for April showed a seasonally adjusted annual rate of 619,000, a 16.6% increase versus March.

The Technology (XLK 43.49, +0.87 +2.07%) sector was no different, as gains held throughout the session. Component Xilinx (XLNX 47.45, +2.56 +5.70%) was the best performer on the heels of unconfirmed M&A chatter. Other sectors as measured by the S&P closed Tuesday XLF +1.51%, XLV +1.44%, XLY +1.20%, XLI +1.04%, XLU +1.00%, IYZ +0.98%, XLP +0.84%, XLB +0.66%, XLE +0.50% as Tech and Financials led and Energy finished with the most modest session.

In the S&P 500 Information Technology (721.45, +14.98 +2.12%) sector, Tuesday ended at highs as the sector returned to levels from late-April. Component Western Digital (WDC 42.28, +1.82 +4.50%) was a notable out-performer as the stock was upgraded premarket to an Outperform rating from Market Perform at Cowen. Other names in the sector that closed with solid gains included LLTC +3.25%, LRCX +3.19%, MU +3.14%, MSFT +3.12%, ADBE +3.12%, AMAT +3.03%, FSLR +2.90%, EA +2.88%, V +2.81%, AKAM +2.75%, INTC +2.75%.

Other notable news items among sector components:

eBay (EBAY 24.05, +0.59 +2.51%) announced an agreement to acquire Ticketbis. Ticketbis will become part of EBAY's StubHub business. EBAY expects the deal to close in mid-2016, and is not expected to impact the second quarter 2016 or the full year 2016 guidance. Financial terms of the deal were not provided either.

Tessera Tech (TSRA 31.79, +1.22 +3.99%) announced that it and certain of its subsidiaries filed legal proceedings for patent infringement in both domestic and international jurisdictions against Broadcom (AVGO 151.42, +3.32 +2.24%) and, in some cases, against certain of AVGO's customers and distributors.

Lam Research (LRCX 79.27, +2.45 +3.19%) announced the pricing of $800 million aggregate principal amount of its 2.800% Senior Notes due 2021, $600 million aggregate principal amount of 3.450% Senior Notes due 2023, and $1,000 million aggregate principal amount of 3.900% Senior Notes due 2026. LRCX intends to use the net proceeds from the sale of the Notes in this offering to finance, in part, the cash portion of the total consideration payable by LRCX to the KLA-Tencor (KLAC 70.99, +1.24 +1.78%) stockholders in connection with LRCX's acquisition of KLAC, and related fees and expenses, and to prepay KLA-Tencor's outstanding term loans.

Xilinx (XLNX) gained in afternoon trading on the heels of unconfirmed M&A chatter.

Elsewhere in the tech space:

GoPro (GPRO 9.71, +0.45 +4.86%) and Red Bull announced they are joining forces on a multi-year, global partnership that includes content production, distribution, cross-promotion and product innovation. As part of the agreement, Red Bull will receive equity in GoPro and GoPro will become Red Bull's exclusive provider of point-of-view imaging technology for capturing immersive footage of Red Bull's media productions and events.

Total (TOT 48.13, +0.53 +1.11%) and SunPower (SPWR 17.04, +0.46 +2.77%) announced that SPWR signed a power purchase agreement for the supply of 300 gigawatt hours per year of clean solar energy to Metro of Santiago.

KEYW Holding (KEYW 8.72, +0.06 +0.69%) announced the departure of the company's Chief Financial Officer and EVP Philip Calamia. Mr. Calamia is departing KEYW to pursue other opportunities. KEYW also announced the appointment of Michael Alber as CFO and EVP. His appointment is effective June 13, 2016.

Net Element (NETE 0.27, +0.00 +1.85%) announced that effective at 12:01 am, Eastern Time, on May 25, 2016, the company will effect a 1:10 reverse stock split of its outstanding common stock. The company's common stock will open for trading on the NASDAQ Capital Market on May 25, 2016 on a post-split basis.

Synopsys (SNPS 51.18, +1.38 +2.77%) entered into an accelerated share repurchase agreement (ASR) with JPMorgan Chase Bank, National Association, to repurchase $125 million of Synopsys stock. Under the terms of the ASR, SNPS will receive an initial share delivery of about 2.0 million shares, with the remainder to be settled on or before August 15, 2016, upon completion of the repurchase.

Globant (GLOB 38.35, -0.08 -0.21%) announced the acquisition of WAE (comprised of We are London Limited and We are Experience, Inc.), an innovative service design company. Financial terms of the deal were not disclosed.

GigPeak (GIG 2.90, +0.07 +2.47%) filed for an about 1.8 million common share offering by selling shareholders. The proposed max offering price was $2.575 per share.

Booz Allen Hamilton (BAH 28.40, -0.61 -2.10%) commenced a 13 million common stock offering by selling shareholder Carlyle (CG 16.51, +0.12 +0.73%).

Spherix (SPEX 3.04, +1.13 +59.16%) announced a second licensing agreement with RPX (RPXC 9.11, -0.06 -0.65%). Under the new agreement, SPEX received a cash payment and return of all of the Series H preferred stock of SPEX presently held by RPXC, representing the entire class of Series H shares outstanding. In exchange, SPEX granted RPXC a portfolio license, which RPXC can then use to grant sublicenses to its clients. In unrelated matters, SPEX's litigations against L3 Communications (LLL 138.34, +0.40 +0.29%), TW Telecommunications (TWTC), Fairpoint Communications (FRP 13.71, +0.17 +1.26%), and Uniden (UNNCF) will continue.

Rambus (RMBS 12.07, +0.33 +2.81%) announced that CFO Satish Rishi plans to retire in the first week of August, following the filing of the company's quarterly report for the second quarter of 2016. Rambus has commenced a search for his replacement and Mr. Rishi will assist during the succession process.

Polycom (PLCM 11.81, +0.72 +6.49%) received a revised, non-binding proposal from a private equity sponsor that was previously described as "Sponsor 1" in the Registration Statement on Form S-4 filed by

Mitel Networks (MITL 6.71, +0.48 +7.70%). Polycom intends to engage in discussions or negotiations with Sponsor 1 with respect to the revised proposal. MITL later responded, stating "The transaction that was announced on April 15, which received the unanimous support of both Boards of Directors and commitments from large shareholders of both companies, offers superior and greater upside to both

Polycom and Mitel. Polycom shareholders specifically will own 60% of a $2.4B, highly profitable, low leverage, strong cash flow company with the scale and portfolio breadth to compete. The deal also offers certainty of committed financing in an uncertain and volatile debt market, and attractive synergy value. Mitel's acquisition of Polycom continues to be the best path forward and best strategic choice to create shareholder value, driven by attractive financial and operational scale."

Match Group (MTCH 14.04, -0.01 -0.07%) intends to commence an offering of $400 million aggregate principal amount of senior notes due 2024 in a private offering.

Scheduled to report quarterly results tonight:
CSC, HPE, INTU, NMBL, VSAT, VMEM

Analyst actions:

WDC was upgraded to Outperform from Market Perform at Cowen,
HOLI was upgraded to Neutral from Reduce at Nomura;
TWTR was downgraded to Sell from Neutral at MoffettNathanson,
FLEX was downgraded to Hold from Buy at Standpoint Research;
SSYS was initiated with an Outperform at FBR Capital,
MTLS was initiated with a Mkt Perform at FBR Capital,
ACXM was initiated with a Buy at Dougherty & Co

(Disclosure: Briefing.com has a business relationship with Microsoft)

4:11 pm Hewlett Packard Enterprise reports EPS in-line, beats on revs; guides Q3/FY16, announces spinoff of Enterprise Services business with CSC, authorizes additional stock buyback (HPE) :

Reports Q2 (Apr) earnings of $0.42 per share, in-line with the Capital IQ Consensus of $0.42; revenues rose 1.3% year/year to $12.71 bln vs the $12.34 bln Capital IQ Consensus.Enterprise Group revenue was $7.0 bln, up 7% year over year, up 10% in constant currency, with an 11.7% operating margin.Enterprise Services revenue was $4.7 bln, down 2% year over year, up 1% in constant currency, with a 6.7% operating margin. Software revenue was $774 mln, down 13% year over year, down 10% in constant currency, with a 24.8% operating margin. Financial Services revenue was $788 mln, down 2% year over year, up 1% in constant currency, net portfolio assets were up 8%, up 9% in constant currency, and financing volume was up 15%, up 19% in constant currency. Co issues downside guidance for Q3, sees EPS of $0.42-0.46 vs. $0.48 Capital IQ Consensus Estimate. Co issues in-line guidance for FY16, sees EPS of $1.85-1.95 vs. $1.88 Capital IQ Consensus Estimate

Hewlett Packard Enterprise also announced plans for a tax-free spin-off and merger of its Enterprise Services business with CSC (CSC) which will create a pure-play, global IT services co - see 16:05 comment for additional details.Board authorized additional $3 billion for share repurchases; $4.8 billion now remaining in stock repurchase authorization

4:03 pm Jabil Circuit announces $300 mln private placement of senior unsecured notes due 2023 (JBL) : The proceeds from the sale of the notes are anticipated to be used to repay the $312.0 mln 7.75% senior notes due July 15, 2016.

[ReturntoSender]

From Briefing.com: Weekly Recap - Week ending 03-Jun-16

The stock market appeared to be on track for its third consecutive weekly advance going into Friday, but a disappointing Employment Situation report for May invited some selling ahead of the weekend. The S&P 500 ended the week unchanged while the Nasdaq Composite (+0.2%) eked out a slim gain.

The trading week was underscored by range-bound action near the highest levels of the year. Investors received some economic data, which included in-line April Personal Income (+0.4%; Briefing.com consensus 0.4%), in-line core PCE Prices (+0.2%; Briefing.com consensus 0.2%), and a hotter than expected Personal Income report for April (+1.0%; Briefing.com consensus 0.7%). However, it was Friday's release of the Employment Situation report for May that caught the attention of most participants.

According to the report, only 38,000 nonfarm payrolls were added in May (Briefing.com consensus 155,000) while private sector payroll growth (+25,000; Briefing.com consensus 160,000) was also well short of expectations. Interestingly, the unemployment rate fell to 4.7% from 5.0% (Briefing.com consensus 4.9%), but that was fueled by a decline in labor force participation rate (to 62.6% from 62.8%).

The disappointment on the jobs front was met with a swift adjustment to rate hike expectations as the probability of a June hike, expressed by the fed funds futures market, dropped to 6.0% from 30.0% a week ago. Expectations for July move also took a hit, falling to 35.0% from 62.0% one week ago.
Index Started Week Ended Week Change % Change YTD %
DJIA 17873.22 17807.13 -66.09 -0.4 2.2
Nasdaq 4933.50 4942.52 9.02 0.2 -1.3
S&P 500 2099.06 2099.13 0.07 0.0 2.7
Russell 2000 1150.45 1163.36 12.91 1.1 2.4

4:17 pm Closing Market Summary: Equities Slip After Jobs Report (:WRAPX) :

The stock market ended a flat week on a similar note as investors digested a below-consensus reading of the Employment Situation Report for May. The S&P 500 lost 0.3%, ending its week unchanged. Today's trade included weakening in the dollar, a downswing in oil, a rally in the Treasury complex, and the underperformance of the heavyweight financial (-1.4%), consumer discretionary (-0.6%), and technology (-0.4%) sectors. The Nasdaq Composite (-0.6%) finished behind both the benchmark index (-0.3%) and the Dow Jones Industrial Average (-0.2%).

Today's session began on a lower note as a disappointing Employment Situation Report for May altered rate hike expectations. The headline nonfarm payrolls reading (38K; Briefing.com consensus 155K) surprised to the downside while the remainder of the report provided little reprieve. Meanwhile, a larger-than-expected contraction in the ISM Services Index for May (52.9; Briefing.com consensus 55.4) also disappointed investors.

The negative datapoints altered participants' views of potential rate hikes in the coming months. Currently, the fed funds futures market reflects the odds of a rate hike at the June and July meeting of the FOMC at a respective 6.0% and 33.0%. This compares to yesterday's readings of 21.0% and 58.0%, respectively. As a result, the economically-sensitive financial sector (-1.4%) finished at the bottom of the daily and weekly leaderboard.

The major averages notched a session low in the first hour of trading before equities steadily marched off their worst levels of the day. Four sectors ended in the green as countercyclical utilities (+1.7%) led materials (+0.8%), telecom services (+0.6%), and consumer staples (+0.6%). Conversely, the heavyweight financial (-1.4%) consumer discretionary (-0.6%), and technology (-0.4%) sectors rounded out the board.

The financial space (-1.4%) displayed broad-based weakness as money center banks, investment brokerages, and life insurance names experienced sharper losses. In the group, Citigroup (C 45.39, -1.58) and Bank of America (BAC 14.42, -0.52) declined by 3.4% and 3.5%, respectively. Meanwhile, Dow component Goldman Sachs (GS 155.67, -3.61) finished at the bottom of the price-weighted index.

In the consumer discretionary space (-0.6%), media names underperformed with Time Warner (TWX 75.84, -0.91) and CBS (CBS 54.39, -1.01) losing a respective 1.2% and 1.8%. Elsewhere, the SPDR S&P Retail ETF (XRT 42.65, -0.30) ticked down 0.7% after gaining 1.2% yesterday. On the flipside, Gap (GPS 19.09, +0.76) jumped 4.2% after reporting above-consensus same-store sales for May.

Heavily-weighted Alphabet (GOOGL 735.86, -8.41) and Microsoft (MSFT 51.79, -0.69) underperformed in the technology space (-0.4%), declining 1.2% apiece. Separately, the high-beta chipmakers outperformed, evidenced by the 0.3% gain in the PHLX Semiconductor Index. Component Broadcom (AVGO 162.56, +7.65) outperformed, gaining 4.9% after topping analysts' estimates for the quarter.

Biotechnology displayed relative weakness in the health care space (-0.6%) as the iShares Nasdaq Biotechnology ETF (IBB 281.77, -4.51) trimmed its weekly gain to 2.0%.

The U.S. Dollar Index (93.93, -1.64) ended on its low as participants trimmed their exposure to a potential policy divergence trade. The euro lost 1.9% against the dollar (1.1364) while the dollar/yen pair ended lower by 2.1% (106.56).

The Treasury complex finished near its best level of the day as the yield on the 10-yr note settled at 1.70% (-10 bps).

Today's participation was above the recent average with more than 888 million shares changing hands at the NYSE floor.

Today's economic data included the Employment Situation Report for May, the April Trade Balance, Factory Orders for April, and ISM Services for May:

The May Employment Situation report will give a lot of people a lot to think about. That includes members of the FOMC, which will now most likely be thinking it is best to hold off on a rate hike at the June meeting.
Nonfarm payrolls increased by 38,000 (Briefing.com consensus 155,000). Over the past three months, job gains have averaged 116,000
April nonfarm payrolls revised to 123,000 from 160,000
March nonfarm payrolls revised to 186,000 from 208,000
Private sector payrolls increased by 25,000 (Briefing.com consensus 160,000)
April private sector payrolls revised to 130,000 from 171,000
March private sector payrolls revised to 167,000 from 184,000
Unemployment rate was 4.7% (Briefing.com consensus 4.9%) versus 5.0% in April
The U6 unemployment rate, which accounts for the total unemployed plus persons marginally attached to the labor force and the underemployed, was unchanged at 9.7%
Persons unemployed for 27 weeks or more accounted for 25.1% of the unemployed versus 25.7% in April
April average hourly earnings were up 0.2% (Briefing.com consensus 0.2%) after being up 0.4% in April
Over the last 12 months, average hourly earnings have risen 2.5%
Aggregate earnings were up 0.2% on top of a downwardly revised 0.4% increase (from 0.8%) for April
The average workweek was 34.4 hours (Briefing.com consensus 34.5) versus 34.4 hours in April
May manufacturing workweek was up 0.1 to 40.8 hours
Factory overtime was unchanged at 3.2 hours
The labor force participation rate was 62.6% versus 62.8% in April
The drop in the unemployment rate to 4.7% certainly stands out, and while it will be a positive talking point for the White House, it also comes with some hot air considering the participation rate fell to 62.6% in May
This follows a reading of 62.8% in April.
Additionally, it might also be touted that the number of unemployed in the civilian labor force declined by 484,000 in May.
The offset to that positive talking point is that the number of employed persons working part-time for economic reasons increased by 468,000 in May.
Average hourly earnings growth was up 2.5% year-over-year in May. That is a positive indication, yet it will get drowned out by the weak payroll growth.
The trade deficit widened to $37.4 billion in April (Briefing.com consensus $41.6 billion) from an upwardly revised $35.5 billion (from -$40.4 billion) in March.
Exports and imports of goods and services for all months through March 2016 were revised with this report to incorporate annual revisions to the goods and services series; hence, the notable deviation from the consensus estimate and the notable revision for the March report.
The widening in the deficit between April and March was the result of imports increasing by $4.5 billion over March to $220.2 billion and exports increasing by only $2.6 billion to $182.8 billion.
It is encouraging to see a pickup in both imports and exports; moreover, the demand pickup for goods was broad-based in both instances.
The real goods deficit increased $1.5 billion to $57.6 billion, yet this will still compute favorably in Q2 GDP forecasts since it is below the first quarter average of $60.5 billion.
New orders for manufactured goods increased 1.9% in April (Briefing.com consensus +1.6%) on top of an upwardly revised 1.7% increase for March (from 1.1%).
That marked the first time that factory orders have increased in back-to-back months since June-July 2014.
Shipments also increased for the second straight month, rising 0.5% after increasing 0.3% in March.
Shipments of nondefense capital goods excluding aircraft -- a metric used in the GDP computation -- increased 0.4% after a downwardly revised 0.0% reading for March (from +0.5%).
Orders for durable goods jumped 3.4%, bolstered by a 65.3% increase in orders for nondefense aircraft and parts. Orders for nondurable goods increased 0.4%.
Total inventories for all manufacturing industries decreased 0.1% while the inventories-to-shipments ratio dipped to 1.36 from 1.37.
The Non-Manufacturing ISM Report on Business (aka The ISM Services Index) checked in at 52.9% in May, down from 55.7% in April. The Briefing.com consensus estimate was pegged at 55.4%.
May marked the 76th straight month of expansion in the non-manufacturing sector.
However, the trend here will nonetheless qualify as a disappointment since it points to a slowdown in activity for the largest side of the U.S. economy.
The downturn in April was driven by a drop in the indexes for New Export Orders (from 56.5 to 49.0), New Orders (from 59.9 to 54.2), Employment (from 53.0 to 49.7), and the Backlog of Orders (from 51.5 to 50.0).
The only indexes showing increases from April were Prices (from 53.4 to 55.6) and Supplier Deliveries (from 51.0 to 52.5).

There is no economic data of note scheduled for release on Monday. However, Fed Chair Yellen will speak before the World Affairs Council of Philadelphia at 12:30 ET.

S&P 500 +2.7% YTD
Russell 2000 +2.5% YTD
Dow Jones +2.2% YTD
Nasdaq Composite -1.3% YTD

Equity markets gapped lower at the start of the session as participants weighed a weaker-than-expected reading of the Employment Situation Report for May. Headline readings showed that nonfarm payrolls (38K) and nonfarm private payrolls (25K) each missed expectations by a wide margin. As a result, market expectations for a rate hike at the June meeting fell to 4.0%, compared to yesterday's probability of 21.0%. Other market data today included the trade deficit, which widened to $37.4 billion in April, new orders for manufactured goods which increased 1.9% in April and the non-manufacturing ISM report on business which checked in at 52.9% in May, down from 55.7% in April.

Friday's action concluded with modest losses, but well off daily lows. Action was led to the downside today by the Nasdaq Composite which lost 28.85 points (-0.58%) to 4942.52. The S&P 500 closed lower by 6.13 points (-0.29%) to 2099.13, and the Dow Jones Industrial Average was off yesterday's close by 31.50 points (-0.18%) to 17807.06. This week's trading took the three major US indices -1.3%, +2.7% and +2.2%, YTD respectively.

Technology (XLK 43.94, -0.10 -0.23%) capped off the last day of the week with modest losses, slightly compounding yesterday's losses. Component Yahoo! (YHOO 36.60, -0.55 -1.48%) was notably weak today as the NYPost detailed talks with Twitter (TWTR 15.19, -0.01 -0.03%) about a possible merger, talks which the Post suggests never got past early stages. Other sectors as measured by the S&P closed the day XLU +1.58%, XLB +0.85%, XLP +0.64%, XLI -0.09%, XLV -0.33%, XLE -0.39%, XLY -0.65%, XLF -1.43%, IYZ -1.93% as Utilities led the action higher and US Telecoms were the worst performer.

In the S&P 500 Information Technology (727.66, -3.09 -0.42%) sector, trading closed out the week with losses ending near the middle of the daily trading range. Component Broadcom (AVGO 162.56, +7.65 +4.94%) was an out-performer as the company reported better than expected Q2 EPS and in-line revenues. Other names in the space that were lower at the end of the day included AKAM -2.46%, TDC -2.24%, CTSH -1.99%, MU -1.91%, ADBE -1.47%, NVDA -1.40%, CTXS -1.39%, MSFT -1.31%, WDC -1.26%, FSLR -1.18%.
Other notable news items among sector components:

CSC (CSC 50.86, +0.42 +0.84%) and Racemi, a U.S.-based pioneer in migrating applications to the public cloud, announced that the companies have entered into an agreement to jointly help clients accelerate their transformation to leading cloud environments -- including Amazon (AMZN 725.54, -2.70 -0.37%) Web Services, Microsoft (MSFT 51.79, -0.69 -1.31%) Azure and IBM (IBM 152.89, -0.61 -0.40%) Softlayer.

Visa (V 79.94, -0.01 -0.01%) announced that the European Commission has approved the proposed acquisition of Visa Europe Ltd. by Visa Inc. The transaction is expected to close in Visa Inc.'s fiscal third quarter of 2016. Visa will announce the closing once it has occurred.

According to the NYPost, Twitter (TWTR) met with Yahoo! (YHOO) to discuss a possible merger, but talks never advanced past early stages.

Elsewhere in the tech space:

ViaSat (VSAT 73.08, +3.17 +4.53%) was selected for in-flight WiFi service on American Airlines (AAL 615.18, +27.68 +4.71%) 737 MAX fleet.

Gogo (GOGO 9.29, -1.78 -16.08%) reached an agreement with American Airlines (AAL) to continue to provide service on a meaningful portion of the American fleet.

Shares of GlobalStar (GSAT 0.95, -1.14 -54.55%) saw notable downside today following headlines that FCC member Jessica Rosenworcel could move to vote against the company's proposal to give a particular company special right to unlicensed spectrum.

Alibaba (BABA 76.62, -0.68 -0.88%) was modestly lower today on the heels of news that shareholder

SoftBank (SFTBY 27.71, -0.21 -0.75%) exercised over-allotment options in an offering of securities tied to shares of alibaba group totaling $10 billion in new capital raised.

In addition to reporting quarterly results, Ambarella (AMBA 46.47, +3.99 +9.39%) announced a $75 million share repurchase program commencing in Q2.

Exar (EXAR 7.87, +0.87 +12.43%) entered into an agreement to sell its Integrated Memory Logic subsidiary to Beijing E-Town Chipone Technology for $136 million net of cash acquired. The company also updated its 1Q17 outlook following the announcement.

AT&T (T 39.22, +0.39 +0.99%) made a $5 billion optional pre-payment of advances outstanding under the $9.155 billion Term Loan Credit Agreement, dated as of January 21, 2015.

Zebra Tech (ZBRA 54.76, +0.45 +0.83%) repriced its $1.96 billion term loan.

RIT Technologies' (RITT 0.27, -0.02 -6.90%) CEO Yossi Ben resigned.
In reaction to quarterly results:

Broadcom (AVGO) reported better than expected Q2 EPS of $2.53 on in-line revenues which rose 116.5% versus last year to $3.56 billion. The company also guided Q3 revenues in-line at $3.675-3.825 billion with expectations for Capital Expenditures to be about $230 million.

Ambarella (AMBA) reported better than expected Q1 EPS and revenues of $0.34 and $57.2 million, respectively.

Companies scheduled to report quarterly results next week:

Monday morning - XCRA; Monday afternoon - SIGM, XTLY;
Tuesday morning - YGE;
Tuesday afternoon - HQY, ITRI, SEAC, PAY, VRNT;
Thursday morning - PDVW;
Thursday afternoon - CMTL

Analyst actions:

MMYT was upgraded to Neutral from Reduce at Nomura;
QLIK was downgraded at Credit Agricole, DA Davidson, Brean Capital and RBC Capital Mkts,
TSL and JASO were downgraded to Neutral from Buy at Roth Capital;
IZEA was initiated with a Buy at Roth Capital,
GRUB and YELP were initiated with a Buy at Maxim Group,
EGHT was initiated with a Buy at Needham,
INFN was initiated with a Buy at Nomura,
RMBS was initiated with a Buy at Wunderlich,
MIME was initiated with a Buy at Dougherty & Co

[ReturntoSender]

From Briefing.com: 4:15 pm : The stock market ended the midweek affair on a lower note as investors showed caution ahead of the United Kingdom's referendum vote regarding membership in the European Union. Contributing factors impacting today's trade included a downturn in oil and divided sector leadership between the heavily-weighted health care (+0.3%) and technology (-0.4%) sectors. The Dow Jones Industrial Average (-0.3%) finished the session behind both the Nasdaq Composite (-0.2%) and the S&P 500 (-0.2%).

Equity indices began the day on a higher note as investors responded to a positive bias in global equity markets. Global bourses ticked up overnight as investors looked to largely even polls between the "Brexit" camps and an uptick in crude oil. However, support from the oil pit faded through the session as the Department of Energy's weekly inventory report surprised to the downside. The stockpile data showed below-consensus results for crude oil (-0.91 million barrels; estimate: -1.67 million) and gasoline (+0.62 million barrels; estimate: -0.32 million) inventories. As a result, WTI crude finished its pit session lower by 1.3% ($49.12/bbl; -$0.65).

The S&P 500 (-0.2%) decoupled from oil in the first hour of trade as the heavyweight health care sector (+0.3%) climbed the leaderboard. The rally in the countercyclical sector took root after the Center for Medicare and Medicaid Services reported that spending levels did not exceed targets, which in turn did not trigger cost-cutting provisions in the program. The resulting strength in the health care sector helped the benchmark index briefly clear resistance at the 2095 price level, notching a session high at 2099.71.

The major averages pared gains in the early afternoon, which corresponded to both the close of trade in Europe and the release of a new Brexit poll. The polling data indicated that the "Leave" camp held a one-point lead over the "Remain" camp. The S&P 500 (-0.2%) drifted through the afternoon and eventually revisited its low in the final hour of trade. Seven sectors finished in the red with commodity-sensitive energy (-0.6%) trailing utilities (-0.5%) and technology (-0.4%) in the back of the pack. On the flipside, health care (+0.3%), telecom services (+0.2%) and materials (+0.1%) outperformed.

In the influential technology sector (-0.4%), software and cloud names demonstrated relative weakness as Adobe Systems (ADBE 94.01, -5.71) sank 5.7%. The stock was pressured after cautious guidance overshadowed better-than-expected results. Fellow software name Red Hat (RHT 79.75, -0.64) lost 0.8% ahead of this evening's quarterly report. Elsewhere, HP (HPQ 12.61, -0.72) fell 5.4% after its revised guidance for the quarter failed to impress.

The Dow Jones Industrial Average (-0.6%) underperformed after component FedEx (FDX 156.51, -7.44) slid 4.5%. The company reported top- and bottom-line beats for the quarter, but failed to show the impact of its recent TNT Express acquisition. Trucking names were also pressured in the index, as an earnings warning from Covenant Transport (CVTI 18.34, -3.63) weighed on the sub-group.

Biotechnology outperformed in the health care space (+0.3%), evidenced by the 0.7% gain in the iShares Nasdaq Biotechnology ETF (IBB 256.56, +1.77). The ETF trimmed its monthly loss to 8.3% as the Medicare decision eased pressure regarding the group's drug-pricing. In the broader sector, Humana (HUM 187.67, -2.40) and Anthem (ANTM 128.72, -2.73) underperformed after members of the U.S. Senate called on the Department of Justice to block large health insurance mergers.

The U.S. Dollar Index (93.76, -0.25) ended off its session low as the greenback lost ground to the pound, yen, and euro. The dollar/yen pair finished lower by 0.3% (104.42) while the euro gained 0.5% against the buck (1.1298). Separately, the cable gained 0.3%, settling at 1.4703.

The Treasury complex ended its day higher with the yield on the 10-yr note slipping three basis points to 1.68%.

Today's participation was below the recent average as fewer than 804 million shares changed hands on the NYSE floor.

Today's economic data included the weekly MBA Mortgage Index, the FHFA Housing Price Index, and Existing Home Sales for May:

The weekly MBA Mortgage Index showed a seasonally adjusted increase of 2.9% in mortgage applications.
The FHFA Housing Price Index for April rose 0.2%, which followed an increase of 0.8% in March.
Existing home sales in May increased 1.8% month-over-month to a seasonally adjusted annual rate of 5.53 million (Briefing.com consensus 5.50 mln) from a downwardly revised 5.43 million (from 5.45 mln) in April.
The month of May marked the strongest pace of home sales since February 2007.
There were gains in all regions, with the exception of the Midwest, which saw sales drop 6.5% to an annual rate of 1.30 million.
Sales increased 4.1% in the Northeast, 4.6% in the South, and 5.4% in the West.
The most striking statistic out of the report was the 4.7% increase in the median existing home price for all housing types to $239,700.
That surpassed the peak median sales price of $236,300 last June and marked the 51st consecutive month of year-over-year gains.
Total housing inventory at the end of May increased 1.4% to 2.15 million existing homes for sale, but at the current sales pace, that left unsold inventory unchanged at a 4.7-month supply.
A 6.0-month supply is typically seen during normal periods of buying and selling.
The uptick in existing home sales has been helped by the increase in home equity, which has afforded homeowners increased move-up capability.
However, the increase in home prices, limited supply, and student loan debt repayment obligations have continued to compress buying activity among first-time buyers, who accounted for 30% of existing home sales in May versus 32% in April.
In a sign of the competitive times for buyers, properties typically stayed on the market for 32 days in May, down from 39 days in April and 40 days a year ago.
That is the shortest time on market since the National Association of Realtors began tracking this measure in May 2011.

Tomorrow's economic data will include weekly initial claims (Briefing.com consensus 273k) and New Home Sales for May (Briefing.com consensus 560k), which will be released at 8:30 ET and 10:00 ET, respectively.

Nasdaq Composite -3.5% YTD
Russell 2000 +1.1% YTD
Dow Jones +2.0% YTD
S&P 500 +2.0% YTD

DJ30 -48.90 NASDAQ -10.44 SP500 -3.45 NASDAQ Adv/Vol/Dec 1214/1.536 bln/1731 NYSE Adv/Vol/Dec 1222/803.6 mln/1752 3:30 pm :

The dollar index holds onto this morning's losses, still down -0.3% around the 93.76 level, not seeming to aid commodities
Commodities, as measured by the Bloomberg Commodity Index, are down -0.6% at 88.02
Crude oil sees losses post-EIA data which showed a smaller-than-expected build compared to Consensus
August crude oil futures fell $0.65 (-1.3%) to $49.12/barrel
Crude oil inventories had a draw of -0.917 mln (consensus called for a draw of about -1.4 to -1.5 mln)
API data released yesterday evening showed a draw of -5.2 mln barrels compared to last week's build of +1.2 mln barrels
Gasoline inventories had a build of +0.627 mln
Distillate inventories had a build of +0.151 mln
Monthly IEA data is scheduled to be released July 13
Natural gas retreats from its year-to-date highs ahead of tomorrow's EIA natural gas inventory data
July natural gas closed $0.10 lower (-3.6%) at $2.67/MMBtu
EIA natural gas inventory data is scheduled to be released tomorrow at 10:30 am ET.
In precious metals, gold trades sideways, closing modestly lower as the dollar gains
August gold ended today's session down $2.60 (-0.2%) to $1269.80/oz
Silver ends afternoon pit trading unchanged for the day
July silver closed today's session flat at $17.32/oz
Base metal copper trades flat in the afternoon, holding on to this morning's modest gains
July copper closed $0.01 higher (+0.5%) at $2.13/lb

Today's session began on a flat note as international bourses displayed a positive bias ahead of tomorrow's Brexit referendum. Oil provided further support for equity markets as investors responded to better-than-expected stockpile data from the API. Additionally, data today came in the form of the weekly MBA Mortgage Index showed a seasonally adjusted increase of 2.9% in mortgage applications. The FHFA Housing Price Index for April rose 0.2%, which followed an increase of 0.8% in March. Existing home sales in May increased 1.8% month-over-month to a seasonally adjusted annual rate of 5.53 million from a downwardly revised 5.43 million (from 5.45 mln) in April.

The broader market closed Wednesday in a heap of selling. The markets were mostly positive until midday when we turned green to red and held onto a notably weaker bias into the bell. Leading the downside, the Dow Jones Industrial Average shed 48.90 points (-0.27%) to 17780.83. The Nasdaq Composite lost 10.44 points (-0.22%) to 4833.32, and the S&P 500 posted the tamest losses, down only 3.45 points (-0.17%) to 2085.45 when the day was done. Overall, tepid volume continued as only 1,536 million shares traded hands at the NASDAQ floor versus an average near 1,677 million and 803 million shares were exchanged at the NYSE floor versus an average near 939 million.

Trading in the Technology (XLK 43.38, -0.15 -0.34%) sector () was higher, and then it was lower to close the session. The up and down action subsided as the afternoon session regressed, though, ultimately ending modestly in negative territory. Names like FTR -2.40%, EBAY -1.46%, INTU -1.34%, TDC -1.24%, CRM -1.24%, QRVO -1.22%, ADSK -1.19%, MA -1.10%, WDC -1.06%, V -1.03% were weaker today. Other sectors as measured by the S&P closed XLV +0.29%, XLB +0.11%, XLP +0.06%, XLF -0.09%, XLY -0.14%, XLI -0.28%, XLU -0.48%, XLE -0.56% led higher by a recovery in Healthcare, but Energy lagged.

The polarizing story in the space today came out of the Solar (TAN 20.40, -0.18 -0.87%) sector where auto manufacturer Tesla (TSLA 196.66, -22.95 -10.45%) offered to acquire solar firm SolarCity (SCTY 21.88, +0.69 +3.26%) for Tesla common shares (proposal represents a value of $26.50 to $28.50 per share). Other solar names which finished higher today included TSL +0.93%, SPWR +0.67%, SEDG +0.54%.

In the S&P 500 Information Technology (716.54, -3.19 -0.44%) sector, the lower finish came about as a result of Adobe Systems (ADBE 94.01, -5.71 -5.73%) and HP's (HPQ 12.61, -0.72 -5.40%) bleak Wednesday affair. The two names have quarterly results and guidance, respectively, last night after the close and carried weakness into today's session. Other names in the space which also displayed weakness included FISV -0.95%, EA -0.94%, JNPR -0.90%, ATVI -0.88%, GPN -0.83%, RHT -0.80%, IBM -0.73%, SYMC -0.67%, TSS -0.63%.

News in the tech space:

Tesla (TSLA) made an offer to acquire SolarCity (SCTY) in exchange for Tesla common shares (proposal represents a value of $26.50 to $28.50 per share).

Immersion (IMMR 7.17, -0.05 -0.69%) confirmed the US Court of Appeals reversed a decision by the District Court for the District of Delaware invalidating three of Immersion's patents.

Itron (ITRI 42.85, -0.42 -0.97%) was selected by Provo Water Company to upgrade its water metering system with Itron's smart water solution in Turks and Caicos.

Rofin-Sinar Technologies (RSTI 31.92, +0.09 +0.28%) announced that three proxy advisor firms recommend shareholders vote FOR adoption of the merger agreement with Coherent (COHR 92.03, -1.47 -1.57%).

Broadridge Financial (BR 64.23, -0.03 -0.05%) priced $500 million aggregate principal amount of 3.400% senior notes due 2026.

Inventergy (INVT 1.67, +0.25 +17.61%) received patent grants and notices of allowance for a total of 23 patents.

Vectrus (VEC 26.56, +0.16 +0.61%) received a $26 million modification for a base operations and support services contract in Qatar.

Wi-LAN's (WILN 2.66, flat) Variable Lighting subsidiary entered into a patent license agreement with Roundtripping. Terms of the deal were confidential.

Softbank (SFTBY 28.52, +0.77 +2.77%) named Ken Miyauchi as President and COO.

Analyst actions:

PCLN was upgraded to Overweight from Equal Weight at Barclays;
SCTY was downgraded to Hold from Buy at Stifel;
CTL and SQ were initiated with a Hold at Evercore ISI,
GIMO was initiated with an Outperform at Northland Capital,
ATNI was initiated with a Buy at Drexel Hamilton,
UIS was initiated with a Buy at SunTrust,
NICE was initiated with a Buy at Chardan Capital Markets

4:10 pm SunEdison CEO Ahmad Chatila resigns; co appoints John S. Dubel as CEO, both effective June 22 (SUNEQ) : Dubel has served as SunEdison's Chief Restructuring Officer since April 29, 2016 and will continue in that role.

[ReturntoSender]

From Briefing.com: Weekly Recap - Week ending 24-Jun-16 The stock market gallivanted higher though the first four days of the week, but the upbeat attitude dissipated on Thursday evening after it became clear that the British referendum on membership in the European Union ended with a 51.9% victory for the 'Leave' camp. The resulting Friday selloff sent the S&P 500 lower by 3.6%. The index slid below its 50-day moving average (2080), surrendering 1.6% for the week.

Although the weekly decline in the S&P 500 did not look particularly concerning, the moves that unfolded in the foreign exchange market caught the attention of many.

The final set of polls released ahead of the referendum pointed to a growing edge for the 'Remain' camp, which lulled some market participants into a false sense of security. The pound notched a fresh six-month high against the dollar at 1.5018, but reversed in a flash after actual results began pouring in.

The first signs of an impending reversal in the foreign exchange market began appearing around 18:00 ET on Thursday when the pound started backing away from its high. This took place after it was reported that the 'Remain' camp secured just a slight victory in Newcastle, where status quo was expected to prevail by a large margin. Subsequent vote counts hinted at a much closer result than it was first expected, which invited risk-off positioning into capital markets.

At its lowest point, the pound was down nearly 11.0% against the dollar, but that decline was narrowed to 8.0% by the end of Friday. The volatility left the pound down more than 1,000 pips versus the dollar for the day, which is a move that would be expected to unfold over a few weeks under typical conditions.

U.S. Treasuries surged in reaction to the developments, pressuring the 10-yr yield to 1.40%--its lowest level since mid-2012.

The defensive finish to the week weighed on rate hike expectations, and the fed funds futures market now sees a higher chance of a rate cut in July (7.2%), September (7.2%), or November (7.0%) than that of a hike in November (1.9%). Looking farther out, the likelihood of a hike in February 2017 sits at a lowly 22.3%.

Index Started Week Ended Week Change % Change YTD %
DJIA 17675.16 17400.82 -274.34 -1.6 -0.1
Nasdaq 4800.34 4707.98 -92.36 -1.9 -6.0
S&P 500 2071.22 2037.31 -33.91 -1.6 -0.3
Russell 2000 1144.73 1124.80 -19.93 -1.7 -1.0

4:14 pm Closing Market Summary: U.S. Stocks Follow Global Bourses Lower Post-Brexit (:WRAPX) :

The major averages ended a tumultuous session on a sharply lower note, selling off after the United Kingdom surprised markets by voting to leave the European Union. The move had widespread implications throughout capital markets as the S&P 500 (-3.4%) tumbled 75 points, losing the most points since September 1, 2015. Today's trade featured a flight from risk assets, a bid in safe havens, and the underperformance of the heavily-weighted financial (-5.4%), technology (-4.3%), industrial (-4.0%), and consumer discretionary (-3.6%) sectors. The Nasdaq Composite (-4.1%) ended its day behind the S&P 500 (-3.6%) and the Dow Jones Industrial Average (-3.4%).

Global equity markets tumbled overnight as participants reacted to a surprise result from yesterday's Brexit vote. The "Leave" camp carried the referendum after receiving 51.9% of last night's vote. In response, European indices paced the retreat as investors looked ahead to the multi-year legal process of withdrawing the UK from the EU. Additionally, foreign exchange markets were in focus as the pound sank to a three-decade low (1.3231) against the dollar.

The major U.S. averages gapped lower at the beginning of the session as the heavyweight financial (-5.4%), technology (-4.3%), and industrial (-4.0%) sectors dragged on the broader market. To be fair though, all six cyclical sectors experienced heavy selling pressure as a flight from risk assets resulted in losses between 3.5% (energy) and 5.4% (financials). A downturn in crude oil added to the negative tenor as a rally in the buck weighed on the dollar-denominated commodity. For its part, WTI crude ended its pit session lower by 5.0% ($47.60/bbl; -$2.52). The S&P 500 (-3.6%) ended off its worst level of the day, but below prior technical support at the 2050 price level.

The economically-sensitive financial sector (-5.4%) moved lower in sympathy with European banking names as Deutsche Bank (DB 14.72, -3.12) experienced its largest daily point loss since 2008. Elsewhere, Lloyds Banking (LYG 3.33, -1.01) and Royal Bank of Scotland (RBS 5.43, -2.06) lost 23.3% and 27.5%, respectively. On the home front, Dow component Goldman Sachs (GS 141.86, -10.80) ended its day at the bottom of the price-weighted index. The broader sector fell 5.4% today, extending its yearly loss to 7.4%.

The high-beta chipmakers demonstrated relative weakness, evidenced by the 5.8% decline in the PHLX Semiconductor Index. The growth-sensitive group experienced pressure as Skyworks (SWKS 61.61, -5.60) plunged 8.3%. In the broader technology sector (-4.3%), large cap component Microsoft (MSFT 49.86, -2.05) fell 4.0%.

In the consumer discretionary space (-3.6%), retail names ended ahead of the broader sector as the SPDR S&P Retail ETF (XRT 41.10, -0.90) declined 2.1%. On the flipside, PVH (PVH 93.55, 9.19) fell 8.9% after the company reported that net revenue generated from inside the United Kingdom constituted 3.0% of its total net revenues. Separately, travel names weighed as large cap component Priceline (PCLN 1232.14) fell 11.4%.

The U.S. Dollar Index (95.48, +1.95) ended broadly higher as the euro and the pound finished with substantial losses against the buck. The euro/dollar pair declined 2.4% (1.1111) while sterling plunged 8.1% against the dollar (1.3676).

The Treasury complex settled off its session high as the yield on the 10-yr note finished lower by 17 basis points at 1.57%.

Today's participation was above the recent average as more than 1.1 billion shares changed hands on the NYSE floor. The Russell 2000 (-3.7%) likely contributed to the increased volume ahead of this evening's annual rebalancing.

Today's economic data was limited to Durable Orders for May and the final reading of Michigan Consumer Sentiment for May:

The advance report on durable goods disappointed as new orders declined 2.2% month-over-month (Briefing.com consensus -0.6%) while orders excluding transportation declined 0.3% (Briefing.com consensus +0.1%).
The disappointment is deep-seated for several reasons.
First, orders declined in almost every category.Secondly, business investment continued to flag, evidenced by a 0.7% decline in new orders for nondefense capital goods excluding aircraft, which followed a 0.4% decline in April.Third, shipments of nondefense capital goods excluding aircraft, which factor into the GDP report, were down 0.5%, reversing most of a 0.6% increase in April.
On a year-over-year basis, new orders excluding transportation are down 0.5% while orders for nondefense capital goods excluding aircraft are down 3.5%.
The decline in May featured a 34.1% drop in orders for defense aircraft and parts. Overall, though, new orders for transportation equipment declined 5.6%, led by a 2.8% drop in orders for motor vehicles and parts.Some other prominent order declines were seen in primary metals (-1.4% after a 0.7% decline in April), fabricated metal products (-0.3% after a 3.6% increase in April), machinery (-0.2% after a 2.0% decline in April), electrical equipment, appliances, and components (-0.1% after a 0.2% decline in April).The final reading for the University of Michigan Consumer Sentiment Survey revealed a dip to 93.5 from the preliminary reading of 94.3. The Briefing.com consensus estimate was pegged at 94.0.
The final reading for June was below the final reading of 94.7 for May and below the 96.1 reading seen for June 2015.
It was said in the release that consumers were a bit less optimistic in late June due to rising concerns about prospects for the U.S. economy.
Those concerns showed up in the Index of Consumer Expectations, which slipped to 82.4 from 84.9 in May.
The Current Economic Conditions Index actually ticked up to 110.8 from 109.9. That is the highest reading for this index since January 2007.Separately, consumers' inflation expectations for the next 12 months were left unchanged at 2.4%.Monday's economic data will be limited to the International Trade in Goods Report for May, which will be released at 8:30 ET.

Nasdaq Composite - 6.0% YTD
Russell 2000 -0.7% YTD
S&P 500 -0.3% YTDDow Jones -0.1% YTD Week in Review: Brexit Spoils Bull Party

The stock market gallivanted higher though the first fourdays of the week, but the upbeat attitude dissipated on Thursday evening afterit became clear that the British referendum on membership in the European Unionended with a 51.9% victory for the 'Leave' camp. The resulting Fridayselloff sent the S&P 500 lower by 3.6%. The index slid below its 50-daymoving average (2080), surrendering 1.6% for the week.

Although the weekly decline in the S&P 500 did not lookparticularly concerning, the moves that unfolded in the foreign exchange marketcaught the attention of many.

The final set of polls released ahead of the referendumpointed to a growing edge for the 'Remain' camp, which lulled some marketparticipants into a false sense of security. The pound notched a freshsix-month high against the dollar at 1.5018, but reversed in a flash afteractual results began pouring in.

The first signs of an impending reversal in the foreignexchange market began appearing around 18:00 ET on Thursday when the pound startedbacking away from its high. This took place after it was reported that the 'Remain'camp secured just a slight victory in Newcastle, where status quo was expectedto prevail by a large margin. Subsequent vote counts hinted at a much closerresult than it was first expected, which invited risk-off positioning into capitalmarkets.

At its lowest point, the pound was down nearly 11.0% againstthe dollar, but that decline was narrowed to 8.0% by the end of Friday. The volatilityleft the pound down more than 1,000 pips versus the dollar for the day, which isa move that would be expected to unfold over a few weeks under typicalconditions.

U.S. Treasuries surged in reaction to the developments, pressuringthe 10-yr yield to 1.40%--its lowest level since mid-2012.

The defensive finish to the week weighed on rate hikeexpectations, and the fed funds futures market now sees a higher chance of a ratecut in July (7.2%), September (7.2%), or November (7.0%) than that of a hike inNovember (1.9%). Looking farther out, the likelihood of a hike in February 2017sits at a lowly 22.3%.

Today's session began on a higher note as U.S. equity futures traded higher lockstep with European bourses. Equity indices in the region displayed a bullish bias as investors responded to the final round of preliminary Brexit polls. The polling data indicated that the "Remain" camp leads the "Leave" faction. As a result, risk assets received a bid with a rally in the pound leading the move. Cable notched a new six-month high overnight, climbing to the 1.4950 price level.

Economic date today came in the form of the initial claims reading, which for the week ending June 18 fell by 18,000 from the prior week to 259,000. Continuing claims for the week ending June 11 decreased by 20,000 to 2.142 million. Further, new home sales declined 6.0% month-over-month in May to a seasonally adjusted annual rate of 551,000 from a downwardly revised 586,000 (from 619,000) in April. Also, the Conference Board reported a 0.2% decline in its Leading Economic Index for May.

The session was capped off with solid gains as stocks pushed to highs when the bell rang. Bullish action began to persist about a half hour before the close, and continued until the finish ahead of tonight's Brexit decision. The tech-heavy Nasdaq Composite led the way higher, advancing 76.72 points (+1.59%) to close 4910.04. The S&P 500 was up 27.87 points (+1.34%) to 2113.32 when the bell rang, and the Dow Jones Industrial Average finished above 18K, adding 230.24 points (+1.29%) to end 18011.07.

Technology (XLK 43.97, +0.59 +1.36%) posted impressive gains today as component Micron (MU 14.05, +1.33 +10.46%) was higher by % following two premarket upgrades at Nomura and Susquehanna. Other sectors as measured by the S&P closed the day XLF +2.10%, XLE +1.65%, XLB +1.54%, XLV +1.31%, XLI +1.16%, XLY +0.98%, XLP +0.61%, XLU +0.28% with Financials leading the charge and Utilities lagging, but still ending the day in the green.

In the S&P 500 Information Technology (727.30, +10.76 +1.50%) sector, trading ended near highs with components Red Hat (RHT 78.39, -1.36 -1.71%) and Accenture (ACN 118.94, -0.14 -0.12%) ending among the few laggards, feeling the pressure following quarterly results. Other names in the sector which closed the day higher included WDC +5.09%, QRVO +4.74%, AKAM +4.52%, JNPR +4.48%, NTAP +3.29%, ADSK +2.93%, SWKS +2.85%, QCOM +2.79%, HPQ +2.70%.

Other notable news items among sector components:

In addition to reporting quarterly results, Red Hat (RHT) announced the acquisition of 3scale; financial details of the deal were not disclosed. RHT also announced a $1 billion share buyback.

Harris (HRS 84.14, +0.75 +0.90%) received a $1.7 billion multi-year contract from the US Army.
Biological Industries announced a co-branding agreement with Corning's (GLW 20.79, +0.24 +1.17%) subsidiary, Mediatech, Inc., which will enable cell therapy, research, and manufacturing organizations around the world to purchase the innovative, xeno-free NutriStem human pluripotent stem cell medium in conjunction with GLW's existing portfolio of stem cell-focused technologies. Before the end of this year, Corning and BI will launch a jointly-branded NutriStem hPSC XF Medium, which will continue to be manufactured by BI, but marketed, distributed and supported worldwide by Corning's global commercial team.

HP (HPQ 12.95, +0.34 +2.70%) recalled batteries for HP and Compaq notebook computers due to fire and burn hazards. The recall involves lithium-ion batteries containing Panasonic (PCRFY 9.20, +0.31 +3.43%) cells used in the notebook computers.

Elsewhere in the tech space:

Alarm.com (ALRM 25.09, +2.57 +11.41%) to acquire two business units from Icontrol Networks for about $140 million. The deal is expected to be EPS accretive on a non-GAAP basis for FY17.

SunEdison (SUNEQ 0.13, -0.00 -2.43%) CEO Ahmad Chatila resigned. The company will appoint John Dubel as CEO, both effective June 22.

Groupon's (GRPN 3.35, +0.10 +3.08%) on-demand delivery service OrderUp enters into partnership with Qdoba Mexican Eats, a sub of Jack in the Box (JACK 87.72, +1.68 +1.95%), to deliver from a number of the restaurants' locations.

T-Mobile US (TMUS 43.67, +0.97 +2.27%) appointed Peter Osvaldik as Chief Accounting Officer.

CACI Intl (CACI 90.89, -8.41 -8.47%) issued worse than expected guidance for 2017 in the form of EPS of $6.02-6.43 and revenues of $4.05-4.25 billion.

58.com (WUBA 46.63, +1.38 +3.05%) divested 65.7% its stake in Mayi in exchange for a minority stake in Tujia by completing a share swap in Mighty Talented Limited.

Black Knight Financial (BKFS 34.99, +0.99 +2.91%) acquired Motivity Solutions. Financial terms of the deal were not disclosed.

In reaction to quarterly results:

Accenture (ACN) reported in-line Q3 EPS of $1.41 on better than expected revenues which rose 8.6% versus last year to $8.43 billion. The company also guided Q4 revenues of $8.25-8.50 billion. For the FY16 period, the company raised EPS expectations to $5.29-5.33 from $5.21-5.32 - also raised revenue expectations to growth of 9.5-10.5% from 8-10%.

BlackBerry (BBRY 7.00, +0.26 +3.86%) reported better than expected Q1 EPS of net breakeven and revenues which fell 39.2% versus last year and came in worse than expectations to $400 million ($424 million in non-GAAP). For the FY17 period, the company issued better than expected guidance for EPS of ($0.15).

Red Hat (RHT) reported in-line EPS for Q1 of $0.50 on revenues which rose 18.1% versus last year to $567.9 million. For Q2, the company sees EPS of about $0.54 on revenues of $587-593 million. For FY17, RHT expects EPS of $2.19-2.23 (down from $2.22-2.26 due to the 3scale acquisition) and revenues of $2.38-2.42 billion.

Companies scheduled to report quarterly results tonight: SNX

Analyst actions:

MU was upgraded to Positive from Neutral at Susquehanna and to Buy from Reduce at Nomura;
SCTY was downgraded to Equal Weight from Overweight at Morgan Stanley,
MTD was downgraded to Neutral from Buy at Citigroup,
CACI was downgraded to Market Perform from Outperform at Wells Fargo,
POWI was downgraded to Neutral from Buy at Sidoti;
GRPN, EBAY and AMZN were initiated with Buy ratings at Maxim Group,
MTSC was initiated with an Overweight at JP Morgan,
VDSI was initiated with a Buy at Sidoti,
ZEN was initiated with a Buy at UBS

3:13 pm FormFactor completes acquisition of Cascade Microtech (CSCD) (FORM) :

11:00 am Semi Manufacturing to purchase a 70% stake of LFoundry for a consideration of EUR49 mln (SMI) :

The co jointly announces with LFoundry Europe and Marsica Innovation S.p.A. the signing of an agreement on June 24, 2016 to purchase a 70% stake of LFoundry for a consideration of 49 million EUR. LFoundry is an integrated circuit wafer foundry headquartered in Italy, which is owned by LFE and MI. At the closing, SMIC, LFE and MI will own 70%, 15% and 15% of the corporate capital of the target respectively. This acquisition benefits both SMIC and LFoundry, through increased combined scale, strengthened overall technology portfolios, and expanded market opportunities for both parties to gain footing in new market sectors. In fiscal year 2015, LFoundry revenue reached 218 million EUR. This acquisition will bring both companies additional room for business expansion. At present, SMIC's total capacity includes 162,000 8-inch wafers per month and 62,500 12-inch wafers per month, which represents a total 8-inch equivalent capacity of 302,600 wafers per month. LFoundry's capacity amounts to 40,000 8-inch wafers per month. Thus, by consolidating the entities, overall total capacity would increase by 13%; this combined capacity will provide increased flexibility and business opportunities for supporting both SMIC and LFoundry customers.

9:27 am TerraForm Power commences consent solicitations of its 5.875% Senior Notes due 2023 and its 6.125% Senior Notes due 2025 to obtain waivers relating to certain reporting covenants under the indentures (TERP) :


6:04 am Canadian Solar announces a funing cell factory in China has been damaged by a tornado & has caused personal injuries, factory is shut down while damage is being assessed (CSIQ) :

At this moment, the Company expects to recover substantially all of its financial losses through insurance. The Company's other wafer, cell and module manufacturing facilities in China and abroad are not affected.The Company now plans to cover its solar cell needs by increasing the output from its Suzhou solar cell factory, ramping up production at its new cell factory in Thailand and by purchasing additional solar cells from its long term third-party suppliers, who have agreed to supply the additional solar cells. As a result, the Company expects to fulfill its module delivery commitments and maintain its annual module shipment guidance. "Our thoughts are with the families of Canadian Solar employees and the local residents impacted by the severe weather. We have immediately dispatched our internal emergence response team from our other facilities in China to help our employees in Funing and people in the local communities. We are assessing the situation but do not expect it to have a material impact on our business," said Dr. Shawn Qu, Chairman and CEO of the co.

[ReturntoSender]

From Briefing.com: 4:07 pm Micron beats by $0.02, misses on revs (MU) : Reports Q3 (May) loss of $0.08 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of ($0.10); revenues fell 24.8% year/year to $2.9 bln vs the $2.96 bln Capital IQ Consensus.

Revenues for the third quarter of fiscal 2016 were slightly lower compared to the second quarter of fiscal 2016 as increases in sales of DRAM products were offset by decreases in sales of trade Non-Volatile products. DRAM revenues increased in the third quarter of fiscal 2016 as a result of a 22 percent increase in unit sales partially offset by an 11 percent decline in average selling prices.

Sales of trade Non-Volatile products decreased due to a 10 percent decrease in units sales and a six percent decline in average selling prices. The company's overall consolidated gross margin of 17 percent for the third quarter of fiscal 2016 was three percent lower compared to the second quarter primarily due to lower average selling prices partially offset by manufacturing cost reductions.

Restructuring Plan

On June 30, 2016, the Company announced a restructure plan in response to the current business environment and the need to accelerate focus on the Company's key priorities. The Company plans to implement a cost savings program in which it expects to save approximately $80 million per quarter in fiscal 2017.

The savings are expected to result from a combination of a more focused set of projects and programs, the permanent closure of a number of open headcount requisitions, a workforce reduction in certain areas of the business, and other non-headcount related spending reductions.

In connection with the plan, the Company expects to incur charges of $70 million, substantially all in cash expenditures, the majority of which is expected to be incurred in the fourth quarter of fiscal 2016, with the remainder in the early part of fiscal 2017.

4:15 pm : The stock market capped off the second quarter with the S&P 500 (+1.4%) clawing its way back to a 2.7% gain on the year. The three-day rebound resulted in the benchmark index trimming its post-Brexit loss to a paltry 0.7%. Today's leg of the rebound can be attributed to rising expectations regarding further easing measures from the Bank of England and European Central Bank, the reclaiming of the 200-day simple moving average in the S&P 500, month-end/quarter-end re-positioning, and the outperformance of the heavily-weighted industrial (+2.0%) and financial (+1.6%) sectors. The S&P 500 (+1.4%) finished ahead of the Dow Jones Industrial Average (+1.3%) and the Nasdaq Composite (+1.3%).

Global equity markets sputtered at the start of the U.S. session as European bourses spun their wheels near their flat lines. The restrained action overseas followed two days of recouping steep Brexit-related losses. On that note, the Euro Stoxx 50 Index (+1.1%) recovered 5.0% of its 11.2% decline by the end of yesterday's session. A downturn in crude oil also added to the restrained tenor.

U.S. equity indices ticked higher after the first hour of trade as the consumer staples sector (+2.2%) climbed the leaderboard. The move in the space was prompted by Mondelez International (MDLZ 45.48, +2.51) offering to buy Hershey Foods (HSY 113.49, +16.35) for $107 per share in cash and stock. Hersey has since rejected the offer, but remains in talks with Mondelez. The ensuing rally in the broader market enabled the benchmark index to reclaim its 50-day simple moving average (2076.42).

The benchmark index extended its rally through the afternoon, spurred on by promises of continued easing from central banks. Bank of England Governor Mark Carney pledged that the bank was ready to provide further stimulus in the wake of Thursday's surprise Brexit vote. Additionally, reports indicated that the ECB may loosen its regulations regarding quantitative easing purchases. The commentary was enough to fuel risk appetite through the end of the session. All ten sectors finished in the green with consumer staples (+2.2%), utilities (+2.2%), and industrials (+2.0%) leading the pack.

In the industrial sector (+2.0%), Dow component General Electric (GE 31.48, +0.93) finished at the top of the price-weighted index as participants ruminated over yesterday's decision to remove the company's nonbank Systemically Important Financial Institution designation. On the flipside, Deere (DE 81.04, -0.47) was pressured after the USDA released its quarterly grain stock report and acreage report.

The financial space (+1.6%) paced the advance as investors digested results from the Federal Reserve's supervisory stress test. The response was mixed as each institution's capital return program was weighed against recent expectations. Morgan Stanley (MS 25.98, +0.75) gained 3.0% after announcing an additional $3.5 billion in share repurchases and a dividend increase to $0.20 per share.

The U.S. Dollar Index (95.90, +0.13) ended modestly higher as the buck gained against the yen, euro, and pound. The dollar/yen pair finished higher by 0.4% (103.25) while the single currency lost 0.2% against the buck (1.1100). Separately, the pound fell 0.7% against the dollar (1.3337) as participants eyed potential stimulus from the Bank of England.

The Treasury complex finished modestly higher despite the rally in equities. The yield on the 10-yr note slipped three basis points to 1.49%.

Today's participation was above the recent average as more than 1.3 billion shares changed hands on the NYSE floor.

Today's economic data included weekly initial claims and Chicago PMI for June:

The encouraging trend for initial jobless claims persists with claims for the week ending June 25 increasing by 10,000 to 268,000 (Briefing.com consensus 265,000).
Weekly initial claims have been running below 300,000 for 69 consecutive weeks.
This is the longest streak below 300,000 for initial claims since 1973!
The latest initial claims reading left the four-week moving average for initial claims unchanged at 266,750.
Continuing claims for the week ending June 18, meanwhile, decreased by 20,000 to 2.120 million.
The four-week moving average for this series fell by 13,000 to 2.134 million, which is the lowest since November 11, 2000.
The Chicago Purchasing Managers Index (PMI) sprung out of its contraction, surging to 56.8 in June from 49.3 in May.
The June reading is the highest reading since January 2015 and was well above the Briefing.com consensus estimate of 50.8.
The headline strength in June was nice to see, yet it most likely reflects inventory rebuilding after an extended period of destocking in an environment of sluggish demand.
One month here does not a trend make and the providers of the report implied as much, pointing out that the business barometer needs to be viewed in the context of the weakness seen in April and May.
On that note, it is worth pointing out that the three-month average of 52.2 for the second quarter is roughly flat with the three-month average for the first quarter. The line between contraction and expansion is 50.0.
There was a huge surge in new orders, which drove the strength in June. The New Orders Index spiked from 48.8 to 63.2.
Similarly, there was a big jump in the Production Index from 47.4 to 56.3, which also proved to be a driving factor behind the headline surprise.
Order backlogs reportedly rose to their highest level since March 2011, breaking a 16-month streak of below 50 readings.
The Inventory Index ended a seven month run in contraction and saw a double-digit increase from the 6 1/2 year low recorded in May
Strikingly, despite the big jump in new orders and order backlogs, there wasn't a pickup in employment.
That could be seen in the Employment Index, which fell from 48.3 to 45.0. The Prices Paid Index was little changed at 55.7 versus 56.5 in May.

Tomorrow's economic data will include the ISM Index for June (Briefing.com consensus 51.4) and Construction Spending for May (Briefing.com consensus +0.5%), which will cross the wires at 10:00 ET. Separately, Auto and Truck Sales figures for June will be released throughout the session.

Nasdaq Composite -3.3% YTD
Russell 2000 +1.1% YTD
S&P 500 +2.7% YTD
Dow Jones +2.9% YTD

DJ30 +235.31 NASDAQ +63.43 SP500 +28.09 NASDAQ Adv/Vol/Dec 2193/1.972 bln/867 NYSE Adv/Vol/Dec 2436/1.337 bln/629 3:30 pm :

The dollar index is up +0.3% trading near the 96.03 level, weighing on commodities
Commodities, as measured by the Bloomberg Commodity Index, are down -0.5% at 88.84
Crude oil plummets to close at fresh lows of the session after finding resistance near the $50/barrel handle as the long July 4th weekend approaches
August crude oil futures fell $1.58 (-3.2%) to $48.26/barrel
Monthly IEA data is scheduled to be released on July 13th
Baker Hughes rig count data will be released tomorrow at 1 pm ET
Natural gas surges near highs of the year after EIA natural gas inventory data released this morning showed a smaller-than-expected build compared to Consensus
August natural gas closed $0.06 higher (+2.1%) at $2.92/MMBtu
Natural gas inventory showed a build of +37 bcf vs expectations for inventory to be a build of approximately +48 bcf.
Working gas in storage was 3,140 Bcf as of Friday, June 24, 2016, according to EIA estimates.
Stocks were 582 Bcf higher than last year at this time and 637 Bcf above the five-year average of 2,503 Bcf.
At 3,140 Bcf, total working gas is above the five-year historical range.
In precious metals, gold consolidates in the afternoon, seeing little movement from session lows hit this morning
August gold ended today's session down $6.40 (-0.5%) to $1320.20/oz
Silver extends this morning's rally, closing higher on the day even as the dollar index gains momentum
September silver closed today's session $0.19 higher (+1.0%) at $18.60/oz
Base metal copper ends afternoon pit trading unchanged for the day
September copper closed flat at $2.19/lb
Grains futures show notable movement after the release of the USDA's Annual Acreage Report & the quarterly grain stocks report:
December corn closed $0.10 lower (-2.6%) at $3.74/bushel
September wheat closed $0.01 higher (+0.2) at $4.45/bushel
November soybeans closed $0.41 higher (+3.7%) at $11.55/bushel
October sugar closed $0.01 lower (-4.8%) at $0.20/lb
Acreage report shows:
Corn Planted Acreage Up 7% from 2015
Soybean Acreage Up 1%
All Wheat Acreage Down 7%
All Cotton Acreage Up 17%
Quarterly grain stocks report shows:
Corn Stocks Up 6 % from June 2015
Soybean Stocks Up 39%
All Wheat Stocks Up 30%
Equity indices began their day on a flat note as investors considered the breadth of the recent rebound in equity markets. They then extended their gains late in the morning when BoE Governor Mark Carney stated that the bank was ready to provide further stimulus in the wake of Thursday's surprise Brexit vote. Not to be outdone, the ECB also helped rouse markets when it was reported that the central bank may loosen its QE purchasing rules. A shrinking pool of eligible debt is the likely reason for the move.

The final trading day of June, and incidentally the final trading day of the quarter came to a close near highs of the session. Trading was led higher by the S&P 500 which added 28.09 points (+1.36%) to 2098.86. The Dow Jones Industrial Average advanced 235.31 points (+1.33%) to 17929.99, and the Nasdaq Composite was higher by 63.43 points (+1.33%) to 4842.67. Today's action took the three major indices +1.7%, +1.2% and -0.6% quarter-to-date and +2.7%, +2.9% and -3.3% YTD, respectively.

Market data flowed through today in the form of the initial jobless claims which for the week ending June 25 increasing by 10,000 to 268,000. Continuing claims for the week ending June 18, meanwhile, decreased by 20,000 to 2.120 million. Lastly, the Chicago Purchasing Managers Index (PMI) sprung out of its contraction, surging to 56.8 in June from 49.3 in May.

Action was also modestly higher in Technology (XLK 43.36, +0.46 +1.07%) with component Paychex (PAYX 59.50, +3.36 +5.99%) reporting its latest quarter results; the stock was strong today as the company reported in-line Q4 EPS and revenues. Other sectors as measured by the S&P ended the day XLP +2.24%, XLU +2.16%, XLI +1.91%, XLB +1.60%, XLF +1.58%, XLV +0.94%, XLE +0.80%, XLY +0.74% with Consumer Staples and Utilities leading the action higher.

In the S&P 500 Information Technology (713.04, +7.45 +1.06%) sector, the session ended near highs with component Seagate Tech (STX 24.36, +0.41 +1.71%) performing well despite announcing details of a restructuring plan which would eliminate about 1,600 positions. Other names in the space that outperformed included MU +4.32%, ATVI +4.26%, WDC +3.64%, TSS +3.49%, GLW +3.38%, CSRA +3.35%, XRX +3.15%, HPQ +3.04%, ADP +3.03%, INTC +2.76%, HPE +2.76%, EA +2.67%.

Other notable news items among sector components:

Seagate Technology (STX) committed to a restructuring plan as part of the company's previously announced efforts to reduce its cost structure including the reduction of STX's global headcount by about 1,600 employees or 3% of its global headcount. The Plan, which the company expects to essentially complete by the end of the September 2016 quarter, is expected to result in total pretax charges of $62 million recorded primarily in the fiscal fourth quarter of 2016. These charges will consist primarily of employee termination costs generating cash outlays in the September 2016 quarter. The savings generated from these restructuring activities are expected to be recognized beginning in the September 2016 quarter and will represent about $100 million in savings on an annual run rate basis, impacting cost of revenue and operating expenses favorably by about $48 million and $52 million, respectively.

Care.com (CRCM 11.68, +3.21 +37.90%) announced that Alphabet's growth equity fund, (GOOGL 702.67, +7.48 +1.08%) Google Capital, has made a $46.35 million investment in CRCM, which makes Google Capital the largest shareholder in Care.com. Additionally, Laela Sturdy, a Partner at Google Capital, will join CRCM's Board of Directors.

Oracle (ORCL 40.93, +0.38 +0.94%) announced the pricing of its sale of $4.25 billion of 1.900% Notes due 2021, $2.5 billion of 2.400% Notes due 2023, $3.0 billion of 2.650% Notes due 2026, $1.25 billion of 3.850% Notes due 2036 and $3.0 billion of 4.000% Notes due 2046. The offering is expected to settle on July 7, 2016, subject to customary closing conditions.

Fiserv (FISV 108.76, +2.32 +2.18%) announced that Panin Bank launched comprehensive new digital banking products and services using Mobiliti and Corillian Online from Fiserv.

Mitsubishi Electric (MIELY 23.57, -0.41 -1.71%) announced that a factory automation platform as a service (FA PaaS) testbed, which is under joint development by MIELY, Hitachi (HTHIY 41.56, -0.35 -0.84%) and Intel (INTC 32.80, +0.87 +2.72%), has been approved by the Industrial Internet Consortium (IIC) in the United States.

Qualcomm (QCOM 53.57, 0.02 +0.04%) filed a patent infringement complaint against Meizu for infringing its patents covering a broad range of features and technologies used in smartphones, including those relating to 3G (WCDMA and CDMA2000) and 4G (LTE) wireless communications standards.

Elsewhere in the tech space:

Starz (STRZA 29.92, +1.67 +5.91%) to be acquired by Lionsgate (LGF 20.23, -0.71 -3.39%) for $4.4 billion in a cash and stock, or about $32.73 per share.

21Vianet (VNET 10.21, +0.52 +5.37%) announced the receipt of withdrawal from Buyer group's 'going private' proposal. Separately, the company announced a $200 million share repurchase program.

Rambus (RMBS 12.08, +0.45 +3.87%) to buy memory product business from Inphi (IPHI 32.03, +3.62 +12.74%) for $90 million in cash.

Advanced Semi (ASX 5.58, +0.14 +2.57%) and Siliconware Precision (SPIL 7.66, +0.11 +1.46%) adopted a resolution to approve the entering into and execution of a joint share exchange agreement.

In reaction to quarterly results:

Paychex (PAYX) reported in-line Q4 EPS of $0.49 on revenues which also came in in-line and rose 8.9% versus last year to $753.9 million. The company also guided net income for FY17 -- expected to increase about 8%; Operating income, net of certain items, as a percent of total service revenue is expected to be about 38%. Further, PAYX announced expectations for the total service revenue to increase in the range of 7% to 8%.

Progress Software (PRGS 27.46, +2.27 +9.01%) reported better than expected Q2 EPS and revenues of $0.33 and $96.1 million, respectively. PRGS also guided Q3 EPS of $0.43-0.46 and revenues of $103-106 million. For FY16, the company sees EPS of $1.57-1.63 on revenues of $412-418 million.

Analyst actions:

PCLN was upgraded to Overweight from Equal Weight at Barclays,
YELP was upgraded to Buy from Neutral at MKM Partners,
NOK was upgraded to Buy from Neutral at Goldman,
SSNI was upgraded to Strong Buy from Outperform at Raymond James;
QCOM was downgraded to Mkt Perform from Outperform at Bernstein,
MESG was downgraded to Hold from Buy at Craig Hallum

[ReturntoSender]

From Briefing.com: 4:15 pm : The stock market ended its day on a lower note, slipping alongside European bourses. The move lower in U.S. equities was prompted by growing fears regarding Italian banking names and revitalized concerns regarding the United Kingdom's exit from the European Union. Additional factors impacting today's trade included a downturn in crude oil, strengthening in the dollar, and the underperformance of the heavyweight financial (-1.5%), industrial (-0.9%), consumer discretionary (-0.7%), and technology (-0.7%) sectors. The Nasdaq Composite (-0.8%) ended behind the S&P 500 (-0.7%) and the Dow Jones Industrial Average (-0.6%).

The major U.S. averages began the day under pressure as investors eyed a downturn in European bourses. European equity markets stumbled as participants weighed remarks from the Bank of England. The central bank struck a cautious tone this morning, warning of risks to commercial property and capital inflows following the country's surprise Brexit vote. Furthermore, Italian banks were in focus after the European Central Bank notified Banca Monte dei Paschi di Siena that it needs to reduce its non-performing loan load.

The S&P 500 (-0.7%) opened under pressure, slipping alongside weakness in heavily-weighted financials (-1.5%), industrials (-0.9%), consumer discretionary (-0.7%), and technology (-0.7%). The benchmark index tested and maintained technical support near 2084/2085 into the afternoon. However, equities succumbed to further selling pressure as crude oil moved to new session lows. WTI crude ended its session lower by 4.7% ($46.73/bbl; -$2.28).

Buyers stepped in during the final hour, enabling the benchmark index to close eight points off its worst level of the day. Eight sectors ended in the red with energy (-1.9%), materials (-1.9%), and financials (-1.5%) rounding out the board. The remaining cyclical sectors ended with losses between 0.7% (technology) and 0.9% (industrials). On the flipside, countercyclical sectors outperformed as utilities (+0.7%), consumer staples (+0.5%), telecom services (UNCH) and health care (-0.1%) each benefited from safe-haven inflows.

The financial sector (-1.5%) remained pressured throughout the session, trading lower in sympathy with European banking names. On that note, Barclays (BCS 7.21, -0.38) ended lower by 5.0% as falling bond yields and the Bank of England's outlook weighed. On the home front, Dow component JPMorgan Chase (JPM 59.55, -1.71) rounded out the price-weighted index. The bank name fell 2.8% after rebounding 2.8% last week. Elsewhere, real estate investment trusts outperformed as Public Storage (PSA 259.74, +5.90) gained 2.3%.

In the industrial sector (-0.9%), airlines demonstrated relative weakness, evidenced by the 1.6% decline in the U.S. Global Jets ETF (JETS 21.10, -0.35). The group moved lower in sympathy with Delta Air Lines (DAL 34.62, -1.15) after the company reported that passenger unit revenue fell 5.0% year-over-year in June. The airline also cut its second-quarter operating margins and unit revenue guidance.

The high-beta chipmakers underperformed in the technology space (-0.7%) as the PHLX Semiconductor Index declined by 1.8%. Qorvo (QRVO 51.82, -2.68) and Skyworks (SWKS 58.85, -3.78) rounded out the index. In the broader technology sector, data storage names underperformed as Seagate Technology (STX 23.16, -0.87) and Western Digital (WDC 44.72, -1.75) lost a respective 3.6% and 3.8%.

The U.S. Dollar Index (96.21, +0.56) ended near its best level of the day as the euro, commodity currencies, and the pound each lost ground to the buck. The single currency lost 0.8% against the greenback (1.1070) while the dollar/Canadian dollar pair gained 1.2% (1.2997). Separately, the dollar lost 0.9% against the yen (101.71).

The Treasury complex settled broadly higher as the yield on the 10-yr note slipped seven basis points to 1.37%. The 10-yr yield notched a new all-time low (1.35%) earlier in the session.

Today's participation was above the recent average as more than 955 million shares changed hands on the NYSE floor.

Economic data was limited to Factory Orders for May:

New orders for manufactured goods declined 1.0% in May (Briefing.com consensus -0.9%) to follow a revised 1.8% increase in April (from 1.9%).
The decline snapped a streak of two consecutive increases.
Shipments ticked up 0.2% despite the overall decline, representing the third consecutive increase.
Orders for durable goods decreased 2.3% after increasing a revised 3.2% in April (from 3.4%).
Transportation orders fell 5.7% and orders for manufactured nondurable goods ticked up 0.3%.
Total inventories for all manufacturing industries decreased 0.3%, representing the tenth decline in the past eleven months.
The inventories-to-shipments ratio was unchanged at 1.36.

Tomorrow's economic data will include the 7:00 ET release of the weekly MBA Mortgage Index. Additionally, the May Trade Balance (Briefing.com consensus -$40.0 billion) and June ISM Services (Briefing.com consensus 53.3) will cross the wires at 8:30 ET and 10:00 ET, respectively. The day's data will be capped off with FOMC Minutes from the June meeting, which will be released at 14:00 ET.

Nasdaq Composite -3.7% YTD
Russell 2000 +0.3% YTD
S&P 500 +2.2% YTD
Dow Jones +2.4% YTD

DJ30 -108.75 NASDAQ -39.67 SP500 -14.40 NASDAQ Adv/Vol/Dec 778/1.543 bln/2277 NYSE Adv/Vol/Dec 809/955.4 mln/2235

3:30 pm :

The dollar index extends this morning's gains, up +0.5% around the 96.17 level, weighing on commodities overall
Commodities, as measured by the Bloomberg Commodity Index, are down -2.5% at 87.43
Crude oil plummets to close at fresh lows of the session as the dollar index stages a notable afternoon rally
August crude oil futures fell $2.28 (-4.7%) to $46.73/barrel
Factors potentially affecting the price of crude include:
5 recent attacks this weekend on various oil pipelines located in Nigeria by militant groups after a brief stalemate
In Nigeria they pumped an avg 1.53 mln barrels a day last month, an increase of about 90,000 a day from May
Last Friday, Baker Hughes reported rig count data showing that rigs were added for 4 out of the 5 previous weeks, signaling that local production may be increasing
Due to the shortened week, API data will be released Wednesday at 4:30 pm ET and EIA crude oil data will be released Thursday, 30 min after regularly scheduled natural gas inventory data
Baker Hughes rig count data will be released this Friday at 1 pm ET
IEA Monthly data will be released July 13th
Natural gas retreats from 1-year highs hit in the previous session, plummeting nearly -8%, its biggest one-day decline of 2016
August natural gas closed $0.23 lower (-7.7%) at $2.76/MMBtu
EIA natural gas inventory data will be released Thursday at 10:30 am ET, at its regularly scheduled time
In precious metals, gold sees an afternoon of consolidation, ending near highs of the day despite notable strength in the dollar index
August gold ended today's session up $19.50 (+1.5%) to $1358.40/oz
Silver closes at fresh 2-year highs as the gold:silver ratio reaches a 2-year low, despite the dollar index gaining afternoon momentum
September silver closed today's session $0.35 higher (+1.8%) at $19.93/oz
Base metal copper consolidates in the afternoon to close near its morning lows
September copper closed $0.04 lower (-1.8%) at $2.18/lb

Futures slipped overnight, falling alongside a downturn in European markets. Markets in Europe adopted a risk-off posture as investors ruminated over commentary from the Bank of England. The central bank struck a cautious note this morning, citing risks to capital markets in the country following the Brexit referendum. Additionally, Italian banks have been in focus after the European Central Bank asked Italy's Banca Monte dei Paschi di Siena to cut net non-performing loans by 40.0%.

Then this morning, the major averages opened on a lower note, weighed down by a downturn in crude oil. The energy component slipped form the $47.50 price level at the beginning of the session as the dollar-denominated commodity was pressured by strengthening in the greenback.

Broader market action took a modest break from last week's strong showing as all three major US indices ended in negative territory. Leading the decline, the Nasdaq Composite shed 39.67 points (-0.82%) to 4822.90. The S&P 500 was down 14.40 points (-0.68%) to 2088.55, and the Dow Jones Industrial Average lost 108.75 points (-0.61%) to 17840.62.

Technology (XLK 43.15, -0.32 -0.74%), as it were, also turned in a slightly weaker session compared to last week as component Skyworks (SWKS 58.82, -3.78 -6.04%) was downgraded for the second time in as many trading days, this time to Sector Weight at Pacific Crest. Other sectors as measured by the S&P closed the day XLU +0.74%, XLP +0.56%, XLV -0.10%, IYZ -0.66%, XLY -0.81%, XLI -0.91%, XLF -1.50%, XLB -1.81%, XLE -2.01% with Utilities gaining on an overall down day and Energy posting the steepest losses.

In the S&P 500 Information Technology (708.76, -5.20 -0.73%) sector, trading ended near the middle of the daily range as components NVDA +1.48%, ATVI +1.36% and PAYX +1.09% managed to resist the sell-off on no apparent catalyst. Other names in the space which closed Tuesday lower included MU -4.72%, WDC -3.77%, STX -3.62%, NTAP -3.33%, HPQ -2.91%, ADSK -2.83%, ADI -2.31%, AKAM -2.25%.
Other notable news items among sector components:

Accenture (ACN 113.10, -0.42 -0.37%) announced the completion of its acquisition of a majority stake in IMJ Corporation (IMJ). Financial terms of the deal were not disclosed.

BNP Paribas (BNPQY 21.55, -0.55 -2.49%) announced that, in relation to Visa's (V 74.67, +0.19 +0.26%) completion of the acquisition of Visa Europe, this sale will translate into an estimated exceptional capital gain of about EUR565 million after taxes BNP in Q2.

First Solar (FSLR 47.77, -0.72 -1.48%) is reallocating production capacity at its Kulim, Malaysia, facility to support a new assembly line dedicated to FSLR's recently announced Series 5 thin film photovoltaic module offering. As a result, FSLR will end production of its TetraSun crystalline silicon solar panel product currently manufactured there, and expects to incur impairment and related charges of about $90 million to $110 million, substantially all of which is expected to be non-cash. These actions are expected to reduce First Solar's operating expenses by $2 million to $4 million this year and $8 million to $10 million annually going forward.

As part of its expansion strategy in Mexico, The Western Union Company (WU 19.13, -0.23 -1.19%), announced an agreement with Walmart de Mexico y Centroamrica (WMMVY 23.10, -1.07 -4.43%) to offer international money transfer services under the Western Union, Vigo and Orlandi ValutaSM brands throughout Mexico.

According to ReCode, Yahoo! (YHOO 37.50, -0.49 -1.29%) suitors including Verizon (VZ 56.53, +0.32 +0.57%) will offer new bids tomorrow.
A Wall Street Journal report detailed the increased offer for LinkedIn (LNKD 190.01, +0.51 +0.27%) shares from Microsoft (MSFT 51.17, +0.01 +0.02%) via Salesforce.com's (CRM 78.67, -1.16 -1.45%) bidding.

A Reuters article later suggested that Alphabet's (GOOG 694.49, -4.72 -0.68%) Google and Facebook (FB 114.00, -0.19 -0.17%) were among other interested parties in LNKD.

Skyworks Solutions (SWKS) expanded its antenna tuning product portfolio with the addition of several new high performance solutions.

Elsewhere in the tech space:

Cyber-Ark Software (CYBR 49.40, +1.03 +2.13%) elected Founder and CEO Udi Mokady as Chairman of the Board effective June 30.

Rovi (ROVI 15.86, +0.32 +2.06%) renewed its multi-year license with Verizon (VZ).

MAM Software Group (MAMS 5.80, -0.37 -6.00%) Chairman Gerald Czarnecki resigned June 29.

Himax Tech (HIMX 8.02, +0.54 +7.22%) announced preliminary Q2 EPS and revenues ahead of prior guidance and expectations. EPS came in at $0.115 and revenues were $201.1 million. The company also made a statement regarding the previously announced retirement of the company's Chief Technology Officer, Chih-Chung Tsai, stating it does not see his departure as impacting the business going forward.

FactSet (FDS 162.12, +0.94 +0.58%) updated Q4 guidance following the sale of its Market Metrics business - Q4 adjusted EPS reaffirmed at $1.68-1.72, and lowered sales guidance to $286-292 million from $292-298 million.

Arris (ARRS 22.53, +1.26 +5.92%) entered into a warrant agreement with Comcast Cable (CMCSA 65.01, -0.27 -0.41%) for the opportunity to acquire ordinary shares based on specific sales targets for FY16-FY17.

Blucora (BCOR 11.05, +0.35 +3.27%) to sell its Infospace business to OpenMail for $45 million in cash. The transaction is expected to close in the third quarter.

Twilio (TWLO 33.99, -0.03 -0.10%) announced an extended collaboration with Amazon Web Services.

Analyst actions:

HIMX was upgraded to Buy from Neutral at Nomura,
WNS was upgraded to Outperform from Neutral at Robert W. Baird;
NFLX was downgraded to Hold from Buy at Needham,
CRUS and SWKS were downgraded to Sector Weight from Overweight at Pacific Crest;
FTV was initiated with an Overweight at Morgan Stanley and a Neutral at Citigroup,
EQIX was initiated with a Buy at Goldman

[ReturntoSender]

From Briefing.com: 4:30 pm Ultratech announces expansion order from a foundry in Asia to add capacity for 28-nm production (UTEK) : Ultratech plans to ship the LSA101 tool to the customer's foundry in Asia in the fourth quarter of 2016.

4:16 pm Western Digital preannounces Q4 results above guidance/consensus; Mark Long to succeed Oliver Leonetti as CFO in Setpember (WDC) :

Co preannounces Q4 EPS $0.72 from $0.65-0.70 guidance vs $0.68 Capital IQ Consensus; revs $3.46 bln from $3.35-3.45 bln vs $3.41 bln Capital IQ Consensus

Co announced the appointment of Mark Long to oversee the company's finance organization as executive vice president, finance, in addition to his role as chief strategy officer. Long will succeed Olivier Leonetti as chief financial officer on Sept. 1, 2016. Leonetti is leaving the company to pursue other opportunities but will continue as CFO through Sept. 1, 2016.

4:11 pm Emcore completes strategic review, announces a special dividend of $1.50/share - shares halted (EMKR) :

As part of the strategic review process, the co evaluated its growth opportunities in existing and adjacent markets, analyzed its products, technologies and production capabilities, and concluded that it could fully leverage its core competency in Mixed-Signal Optics in both existing and new markets.

With this action, Emcore's Board will have returned ~$85 mln of cash to its shareholders since June 2015, representing ~50% of the cash received from operations sold in the prior fiscal year.

"The return of cash to shareholders will strongly improve the Return on Assets of the business by reducing our overall capitalization, while maintaining flexibility to invest in new market opportunities to accelerate earnings growth," says Jeffrey Rittichier, President and CEO. "As previously stated, we're encouraged by the performance of our CATV and Fiber Optic Gyro businesses and see strong growth opportunities in these and other areas to continue improving our financial performance," added Rittichier.

4:15 pm : The stock market ended the Wednesday affair on a higher note, rebounding from selling pressure in the opening hour. Factors impacting today's rebound included a positive reading of the ISM Services Index for June, a reversal in oil, softening in the dollar, and the outperformance of the heavily-weighted health care (+1.2%), consumer discretionary (+0.8%), and technology (+0.5%) sectors. The Nasdaq Composite (+0.8%) finished ahead of the S&P 500 (+0.5%) and the Dow Jones Industrial Average (+0.4%).

The major averages began the day on a choppy note as global bourses responded to implications from the United Kingdom's decision to leave the European Union. European indices led the losses as investors weighed reports from the U.K. that several real estate funds were halting redemptions due to liquidity concerns. Additionally, growing uncertainty in the Italian banking sector added to the negative bias in regional bourses.

U.S. equity markets shrugged off early weakness, responding in part to a better-than-expected reading of the ISM Services Index for June and a reversal in the biotechnology sub-group. The major averages extended their rebound through the afternoon as the minutes from the June FOMC meeting failed to rock the boat. The minutes indicated that the Fed will likely remain on hold, pending further economic data. Additionally, the central bank commented on the need to see the outcome of the Brexit referendum (the Fed meeting was held ahead of the vote) in order to better estimate the speed and path of interest rate normalization.

The benchmark index climbed in the final hour, testing and clearing resistance near the 2095/2096 price level. The S&P 500 (+0.5%) ended off its high with eight sectors trading in the green. The heavily-weighted health care (+1.2%) sector led consumer discretionary (+0.8%), and (+0.6%) energy. The remaining gainers finished with upticks between 0.2% (utilities) and 0.5% (technology).

In the health care space (+1.2%), biotechnology outperformed as the iShares Nasdaq Biotechnology ETF (IBB 266.24, +6.16) climbed 2.4%. In the ETF, Celgene (CELG 104.60, +4.35) gained 4.3% after signing a confidentiality agreement with Medivation (MDVN 62.33, +0.57). Additionally, Sanofi (SNY 41.23, -0.13) and Pfizer (PFE 35.86, +0.05) signed similar agreements, indicating that each could be exploring a potential transaction with Medivation. Elsewhere, Valeant Pharmaceuticals (VRX 23.06, +3.11) spiked 15.6% after Walgreens Boot Alliance (WBA 81.55, -1.97) announced during its conference call that it is pleased with its relationship with Valeant.

Retail names outperformed in the consumer discretionary sector (+0.8%), evidenced by the 1.5% gain in the SPDR S&P Retail ETF (XRT 42.29, +0.63). CarMax (KMX 50.45, +2.69) outperformed among specialty retailers, rallying 5.6%. Conversely, Netflix (NFLX 94.60, -3.31) ended lower by 3.4% after Jefferies downgraded the stock to "Underperform" from "Hold." This follows Netflix receiving a downgrade to "Hold" at Needham yesterday.

The economically-sensitive financial sector (+0.4%) finished modestly higher as banking names erased early losses. Wells Fargo (WFC 46.65, +0.44) and JPMorgan Chase (JPM 60.19, +0.64) ended the day higher by 1.0% and 1.1%, respectively. The two names began the day with respective losses of 0.7% and 1.1%. Real estate investment trusts were pressured through the session as risk appetite increased throughout the session.

The U.S. Dollar Index (96.05, -0.11) ended the day on a lower note as the euro and the yen gained ground against the buck. The euro/dollar pair ended higher by 0.2% (1.1103) while the greenback lost 0.4% against the yen (101.32). Separately, cable declined 0.7% (1.2931).

The Treasury complex finished on a mixed note as the yield on the 10-yr note ended flat at 1.37%.

Today's participation was above the recent average as more than one billion shares changed hands on the NYSE floor.

Today's economic data included the weekly MBA Mortgage Index, May Trade Balance, and June ISM Services:

The weekly MBA Mortgage Index showed a seasonally adjusted increase of 14.2% in mortgage applications.
The trade deficit widened to $41.10 billion in May from $37.40 billion in April.
That was worse than the Briefing.com consensus, which expected the deficit to hit $40.00 billion.
Exports were down $0.30 billion to $182.40 billion while imports increased $3.40 billion to $223.50 billion.
The dynamic indicates some relative strength in the U.S. economy when compared to the rest of the world.
On a year-over-year basis, exports were down 4.9% to $47.20 billion while imports declined 4.7% to $54.30 billion. The goods and services deficit declined 3.5% to $7.20 billion.
The real goods deficit increased $3.60 billion to $61.10 billion, which will be a negative for Q2 GDP since it is above the first quarter average of $60.50 billion.
The Non-Manufacturing ISM Report on Business (aka The ISM Services Index) increased to 56.5 in June from 52.9 in May. The Briefing.com consensus estimate was pegged at 53.3.
The June report represented the 77th consecutive expansionary (i.e. above 50) reading and it was the highest mark of the year.
However, the true test is likely to take place in the upcoming months as the index approaches a multi-year high near 60.0.
The June improvement was driven by growth in most categories.
Business Activity/Production increased to 59.5 from 55.1, New Orders increased to 59.9 from 54.2, Employment ticked up to 52.7 from 49.7, and New Export Orders improved to 53.0 from 49.0.
Conversely, Prices slipped to 55.5 from 55.6 and Backlog of Orders declined to 47.5 from 50.0.

Tomorrow's economic data will include June Challenger Job Cuts and the June ADP Employment Change Report (Briefing.com consensus 152k), which will be released at 7:30 ET and 8:15 ET, respectively. Separately, weekly initial claims (Briefing.com consensus 268k) will cross the wires at 8:30 ET.

Nasdaq Composite -3.0% YTD
Russell 2000 +1.0% YTD
S&P 500 +2.7% YTD
Dow Jones +2.8% YTD

DJ30 +78.00 NASDAQ +36.26 SP500 +11.18 NASDAQ Adv/Vol/Dec 1868/1.69 bln/1155 NYSE Adv/Vol/Dec 1927/1.023 bln/1072

3:30 pm :

The dollar index snaps its 2-day streak of gains, trading down -0.2% around the 96.02 level, boosting commodities
Commodities, as measured by the Bloomberg Commodity Index, are up +0.1% at 87.53
Crude oil closes higher on the day ahead of today's API data while the dollar index trades lower in afternoon pit trading
August crude oil futures rose $0.64 (+1.4%) to $47.37/barrel
Factors potentially affecting the price of crude oil include:
5 recent attacks this weekend on various oil pipelines located in Nigeria by militant groups after a brief ceasefire
In Nigeria they pumped an avg 1.53 mln barrels a day last month, an increase of about 90,000 a day from May
U.S. oil production fell to 8.9 mln barrels/day in April from a high of nearly 9.7 mln barrels one year ago
Last Friday, Baker Hughes reported rig count data showing that rigs were added for 4 out of the 5 previous weeks, signaling that local production may be increasing
Baker Hughes rig count data will be released this Friday at 1 pm ET
Due to the shortened week, API data will be released Wednesday at 4:30 pm ET and EIA crude oil data will be released Thursday, 30 min after regularly scheduled natural gas inventory data
IEA Monthly data will be released July 13th
Natural gas eases off its lows as selling pressure subsides & energy futures turn positive ahead of tomorrow's EIA inventory data
August natural gas closed $0.03 higher (+1.1%) at $2.79/MMBtu
EIA natural gas inventory data will be released at its normally scheduled date/time tomorrow at 10:30 am ET
In precious metals, gold stages a modest afternoon rally as the dollar trades into negative territory for the day
August gold ended today's session up $8.70 (+0.6%) to $1367.10/oz
Silver closes pit trading at fresh 2-year highs for the second consecutive session
September silver closed today's session $0.25 higher (+1.3%) at $20.18/oz
Silver futures have rallied and closed higher for the past 6 consecutive sessions
Base metal copper ends near its morning lows to close afternoon pit trading down for the day
September copper closed $0.03 lower (-1.4%) at $2.15/lb

Equity futures moved lower lockstep with global bourses overnight, succumbing to persistent uncertainty regarding the United Kingdom's decision to leave the European Union. European banking names paced the retreat after reports indicated that several real estate funds in the U.K. are halting redemptions due to liquidity concerns. Furthermore, Italian banks added to the negative tone overseas as the country mulls state aid in the wake of more stringent regulations from the EU.

Today, market data came across in the form of the weekly MBA Mortgage Index which showed a seasonally adjusted increase of 14.2% in mortgage applications. Additionally, the trade deficit widened to $41.10 billion in May from $37.40 billion in April. Also, the Non-Manufacturing ISM Report on Business (aka The ISM Services Index) increased to 56.5 in June from 52.9 in May. The Federal Reserve also released June meeting minutes at 2:00 p.m. ET.

Broader market trading was mostly higher after a brief period of morning weakness. Action turned red to green about an hour and a half into Wednesday trading and gains held following the FOMC minutes. The positive bias was again led by the Nasdaq Composite which added 36.26 points (+0.75%) to 4859.16. The S&P 500 finished in the middle, higher by 11.18 points (+0.54%) to 2099.73, and the Dow Jones Industrial Average advanced 78.00 points (+0.44%) to end the day 17918.62.

Technology (XLK 43.46, +0.31 +0.72%) held onto positive action from the afternoon, closing at highs as component First Solar (FSLR 49.13, +1.36 +2.85%) out-performed on no particular news, but overall strength in the Solar (TAN 21.14, +0.52 +2.52%) sector. Other sectors as measured by the S&P closed Wednesday XLV +1.12%, XLY +0.86%, XLI +0.50%, IYZ +0.48%, XLE +0.43%, XLB +0.40%, XLF +0.27%, XLU +0.21%, XLP +0.09% with Healthcare leading the positive action and Consumer Staples lagging, yet still finishing in the green.

In the S&P 500 Information Technology (712.51, +3.75 +0.53%) sector, we saw action mirror broader market opening weakness, but ultimately rebound into positive territory as component Apple (AAPL) was modestly higher following a premarket initiation at Longbow. Other names in the space which ended the session modestly higher included HPQ +1.94%, CSRA +1.90%, WDC +1.65%, STX +1.55%, QRVO +1.45%, CSCO +1.38%, TDC +1.37%, AKAM +1.31%, RHT +1.25%.
Other notable news items among sector components:

The US Computer Emergency Readiness Team issued an alert stating that Symantec (SYMC 20.38, +0.03 +0.15%) and Norton security products contain critical vulnerabilities.
Fujitsu Limited, Oracle (ORCL 40.53, +0.13 +0.32%), and Oracle Japan have agreed to form a new strategic alliance to deliver enterprise-grade cloud services to customers in Japan and their subsidiaries around the world.

According to Moodstocks' website, Alphabet (GOOG 697.77, +3.28 +0.47%) acquired the company for an undisclosed sum.

Elsewhere in the tech space:

Twitter (TWTR 17.20, +0.06 +0.35%) appointed Bret Taylor, Founder and CEO of Quip, to serve as a Board member effective immediately.

Canadian Solar's (CSIQ 15.09, +0.27 +1.82%) CSI Solar Power sold it solar power projects in China for $32.8 million.

ExlService (EXLS 51.99, +0.20 +0.39%) acquired LISS Systems. Financial terms were not disclosed.

CDK Global (CDK 54.47, -0.24 -0.44%) said it secured a record number of contract renewals in its fiscal fourth quarter.

Pattern Energy Group (PEGI 23.74, +0.26 +1.11%) acquired from SunEdison (SUNEQ 0.13, flat) the development rights to the proposed 600 megawatt King Pine Wind power project. Financial terms of the deal were not disclosed.

Analyst actions:

LPL was upgraded to Outperform from Sell at Credit Agricole;
NFLX was downgraded to Underperform from Hold at Jefferies,
JNPR was downgraded to Hold from Buy at Deutsche Bank,
SYNA was downgraded to Hold from Buy at Lake Street,
VIV was downgraded to Equal Weight from Overweight at Morgan Stanley;
AAPL was initiated with a Buy at Longbow,
SITO was initiated with a Buy at Craig Hallum,
CMTL was initiated with an Outperform at Northland Capital

2:26 pm Ultratech issues response to a report by Glass Lewis & Co regarding the election of proposed Board Directors, 'strongly believes' they made the 'wrong conclusion' in 'failing' to recommend all 7 nominees (UTEK) :

Main points of response (as stated by Ultratech):

Believes Glass Lewis' analysis is flawed and reflects a fundamental misunderstanding of Ultratech's business and performance, as well as the cyclical nature of its industry.
Given Glass Lewis' lack of understanding of the key facts, Ultratech's Board and senior management are available to speak with any and all stockholders to offer context and answer questions about the co's strategy, performance, and corporate governance.
Strongly urges Ultratech stockholders to protect the value of their investment by voting for all seven of the co's director nominees on the white proxy card.

9:22 am EMC announces that Glass Lewis recommends shareholders vote to approve the merger among Denali Holding, Dell (:DELL), Universal Acquisition Co, & EMC (EMC) : Glass Lewis Stated, "Overall, we find that the proposed transaction is financially and strategically reasonable from the perspective of EMC and its shareholders. The proposed consideration represents what is, in our view, an attractive premium to the unaffected closing price of EMC shares and appears generally reasonable in numerous analyses presented by the independent financial advisors, including relative to peer trading multiples, premiums paid and discounted cash flows including stock based compensation expense. The proposed consideration will allow shareholders to realize a substantial portion of their investment in cash and to continue to participate in the future performance of VMware."

[ReturntoSender]

InvestmentHouse - Economy Continues to Underwhelm (Weekend Newsletter)

http://www.investmenthouse.com/frblog.php

- BOJ disappoints, GDP misses big, market does the same.
- The economy continues to underwhelm as this will mark the first
Administration to have no year with 3% or better GDP growth.
- Earnings overall positive, market moves but again, market does not move.
Much.
- Bonds and gold surge on view Fed is nowhere near tightening yet dollar
sells. The data was that weak?

Friday was shocking. A lot of news hit the wires pre-market from earnings,
to central banks to economic data. Things did not go as expected in almost
all instances.

The BOJ, after Abe's announcement of 28T yen in stimulus to come, barely
budged on stimulus. It raised ETF purchases to 6T yen from 3.3T yen, but
that was it. Not even a rate cut.

More than that, it included a statement that it would undertake a
'comprehensive assessment' of its stimulus. Some say that means it will
announce large stimulus plans at the next meeting. I am not so sure of
that. I posit the BOJ may, after over two decades of depression fostered by
the very policies it will assess, be rethinking and reshaping what should be
done in terms of stimulus.


IMF: More shock. The IMF admitted that its restructuring requirements and
policies caused the Greece depression.


GDP shock: US Q2 GDP 1st iteration was a complete whiff at 1.2%. Remember,
some even thought a 3+% quarter was possible.

GDP: 1.2% vs 2.4% exp vs 0.8% prior (from 1.1% Q1 final)

Core PCE: 1.7% vs 2.1% Q1

Business Investment: -2.2%, third straight quarter lower.

Consumer: +4.1% vs 1.6% Q1. That SAVED the report as it added 3% to the
final GDP number.

GDP last 3 quarters: Less than 2%. Juxtapose that to the rosy scenario
painted Wednesday night at the DNC Convention. Who is 'peddling fiction'?
The facts, as we have reported month after month after month, do not support
the grand conclusions about the present and future being made. Nothing new
there, just given the election cycle it is more apparent given the grand
speeches and statements that are more based on what the candidates would
LIKE the facts to be versus what the facts really are.

The shocking facts: President Obama will be the first US President to NEVER
have a year of 3% GDP growth.

The middle class fell below 50% in this country supposedly as the country
enjoyed a strong economic recovery. That is not so much shocking as it is
damning in terms of the notion of a strong economic recovery having occurred
or is in progress.

And more GDP shock: during the run up to the election the numbers reported
were allowed to be so pathetic. How does that help those currently in power?
Will there be a September surprise, a 'surge' in GDP just before the
election, such that it gets the swing voter thinking, 'gee, things just got
better?'

For now, Europe is pointing the way for the US as the latter's GDP growth
rates continue their decline toward more European levels. Indeed, looking
at the EU GDP levels, the gap is narrowing, and that does not mean Europe is
rising to meet the us:

EU GDP: 0.3% as expected. Year/year: 1.6% vs 1.5% exp vs 1.7% prior

France GDP: 0.0% VS 0.2% exp vs 0.6% prior. Take off velocity?


Again, the stock indices didn't surge and they didn't tank. They continued
rather modest moves. Some tested an earlier break upside. Others continued
tight lateral moves.

AMZN and GOOG reported strong earnings and moved higher, helping push NASDAQ
and SP500 green, but there was no strong move. Good earnings for big name
stocks. The central banks perhaps a bit more conservative but hardly
pulling back. Economic data turned from getting better (suspiciously so) to
dramatically worse, e.g. Durable Goods Orders and Q2 GDP.

None of that was, however, an overall catalyst to send the stock indices
higher. SOX is on its own plan, surging higher Tuesday. SP400 broke to a
clearer high Friday. NASDAQ is slowly moving higher itself. SP500 and DJ30
are still in tests, looking to follow the other indices in at least their
trends higher.

Again, the stock indices are still attempting to find a catalyst to send
them seriously higher. Perhaps they are just going to bleed higher e.g.
NASDAQ, RUTX, SP400. With SOX in the lead and NASDAQ working higher as well
thanks to the big names, perhaps the other indices just follow along. Thus
far they have, more or less.

Now that just about all the data is out, except of course the new jobs
report out Friday of this coming week, you would expect more of a move.
Instead a very staggered move upside. If leadership continues to hold up,
to set up, and move higher, well, that is the ultimate factor. Thus far
leadership is indeed setting up and moving up. While this week brings a new
week and a new month and that could shake things up, the leaders are thus
far doing the job of keeping the market moving higher or at least holding
the gains.


THE MARKET

CHARTS

To view charts, click on link or paste URL into browser.

http://investmenthouse1.com/ihmedia/f/charts/sp500.jpg
http://investmenthouse1.com/ihmedia/f/charts/NASDAQ.jpg
http://investmenthouse1.com/ihmedia/f/charts/DJ30.jpg
http://investmenthouse1.com/ihmedia/f/charts/RUTX.jpg
http://investmenthouse1.com/ihmedia/f/charts/SP400.jpg
http://investmenthouse1.com/ihmedia/f/charts/SOX.jpg


NASDAQ: Gapped higher Wednesday out of a short consolidation and continued
higher into Friday. Steady move higher. Not blowout but very steady up the
10 day EMA following the break over the April and June highs. NASDAQ is now
at the late 2015 highs, pushing to move through toward that July 2015 high.

SOX: Big upside break Tuesday to a new post-2000 high. Faded in a 1-2-3
test Wednesday to Friday. SOX is leading, showing strength, and a test sets
it up in good position to continue to lead the market.

SP400: Has fiddled with a new high for over a week. Finally broke to a
more definitive new high Friday. As with SP500 and DJ30, the more mileage
it puts on the break higher, the more chance it has of sticking.

RUTX: Still trying to make the break into the final range that holds the
all-time high from mid-2015. Perhaps the Russell will follow SP400 in its
move.

SP500: Up Friday but not really a new move. The first to a new high, now
in an 8 session lateral move. Not giving up gains, consolidating what it has
won, and leaving itself in good position to continue upside again after this
nice test.

DJ30: Very nice test continues in progress, showing another doji as the Dow
tests the 20 day EMA. Nice test after being the second to hit an all-time
high.


MARKET STATISTICS

NASDAQ
Stats: +7.15 points (+0.14%) to close at 5162.13
Volume: 1.991B (+4.17%)

Up Volume: 922.5M (-117.5M)
Down Volume: 1.12B (+240.97M)

A/D and Hi/Lo: Advancers led 1.02 to 1
Previous Session: Decliners led 1.14 to 1

New Highs: 157 (+16)
New Lows: 38 (+9)

S&P
Stats: +3.54 points (+0.16%) to close at 2173.6
NYSE Volume: 1.2B (+37.06%)

A/D and Hi/Lo: Advancers led 1.68 to 1
Previous Session: Advancers led 1.08 to 1

New Highs: 262 (+90)
New Lows: 19 (+4)

DJ30
Stats: -24.11 points (-0.13%) to close at 18432.24


SENTIMENT INDICATORS

VIX: 11.87; -0.85
VXN: 13.97; -0.87
VXO: 11.52; -2.11

Put/Call Ratio (CBOE): 1.2; +0.3. First move over 1.0 on the close in 15
sessions. One such reading does not mean much but now watching to see if a
few more pop up.

14 of 15 below 1.0, 15 of last 32 over 1.0.
27 of the last 45 below 1.0. 35 of 65 over 1.0.
Definitely getting complacent at these levels.


Bulls and Bears: Bulls hanging in the low 50's, still off the 60ish level
that has spelled correction. Bears, however, are falling significantly and
are near levels where stock corrections have occurred.

Bulls: 53.9 versus 54.4

Bears: 21.6 versus 23.3

Theory: When everyone is bullish and has put all their capital to work,
where does the ammunition to drive the market come from? There is always
new money to start a new year. After that is used will more money be
coming? That is the question.




Bulls: 53.9 versus 54.4
54.4% versus 52.5% versus 47.1% versus 41.6% versus 47.5% versus 45.9%
versus 47.3% versus 45.4% versus 35.4% versus 40.2 versus 39.2 versus 40.2%
versus 44.3% versus 47.4% versus 41.2% versus 45.4% versus 43.3% versus
47.4% versus 44.4% versus 39.4% versus 36.4% versus 34.7% versus 26.5%

Bears: 21.6% versus 23.3%
23.3% versus 24.7% versus 24.5% versus 23.8% versus 23.2% versus 23.5%
versus 23.8% versus 23.7% versus 24.0% versus 21.7% versus 21.6% versus 21.7
versus 20.6% versus 21.7% versus 27.8% versus 27.8% versus 28.9% versus
27.8% versus 30.3% versus 35.4% versus 34.3% versus 35.7% versus 39.8%
versus 39.2% versus 38.1% versus 35.4% versus 36.1%


OTHER MARKETS

Bonds (10 year): 1.46% versus 1.50%. TLT and bonds surging upside off the
test the first part of July.

Historical: 1.50% versus 1.51% versus 1.56% versus 1.57% versus 1.56% versus
1.558% versus 1.58% versus 1.56% versus 1.59% versus 1.58% versus 1.53%
versus 1.47% versus 1.51% versus 1.434% versus 1.36% versus 1.39% versus
1.373% versus 1.367% versus 1.44% versus 1.475% versus 1.51% versus 1.468%
versus 1.46% versus 1.57% versus 1.74% versus 1.68% versus 1.70% versus
1.67% versus 1.61% versus 1.57% versus 1.58% versus 1.62% versus 1.61%
versus 1.64% versus 1.68% versus 1.70% versus 1.72% versus 1.73% versus
1.70% versus 1.80% versus 1.84%


EUR/USD: 1.1173 versus 1.10806. Euro surging off of that double bottom.

Historical: 1.10806 versus 1.10732 versus 109857 versus 1.0992 versus 1.0977
versus 1.1021 versus 1.1022 versus 1.1021 versus 1.10654 versus 1.1035
versus 1.1117 versus 1.1099 versus 11061 versus 1.10588 versus 1.10502
versus 1.10634 versus 1.10891 versus 1.1056 versus 1.11396 versus 1.1106
versus 1.11256 versus 1.10736 versus 1.10226 versus 1.1101 versus 1.14070
versus 1.13324 versus 1.1251 versus 1.13131 versus 1.13749 versus 1.12778
versus 1.12554 versus 1.12731 versus 1.2104 versus 1.1297 versus 1.12526
versus 1.13149 versus 1.1412 versus 1.13570


USD/JPY: 102.045 versus 104.679. The dollar plunges back into the
downtrend channel.

Historical: 104.679 versus 105.98 versus 104.731 versus 105.76 versus
106.05 versus 106.11 versus 107.16 versus 106.139 versus 105.95 versus
104.85 versus 105.31 versus 104.74 versus 102.686 versus 100.59 versus
100.768 versus 101.15 versus 100.89 versus 102.497 versus 103.128 versus
102.912 versus 102.60 versus 101.93 versus 102.32 versus 106.73 versus
104.87 versus 104.788 versus 103.98 versus 104.58 versus 104.12 versus
104.68 versus 105.62 versus 106.085 versus 106.019 versus 106.933 versus
106.966 versus 106.66 versus 107.347 versus 107.72 versus 106.55 versus
106.66 versus 108.86 versus 109.99 versus 111.285


Oil: 41.60, +0.46. Modest gain after more than a week of losses took oil
to the 200 day SMA. Seven week test in progress, trying to rebound and
recover some lost ground.


Gold: 1357.50, +25.20. Surging higher, looking for no rate hikes near
term.


MONDAY

A lot of economic data, earnings, and central bank moves are all in the
market. More data and earnings hit this week, a lot more of each. Still,
it appears some important moves are in progress: bonds rallying, gold
surging, dollar fall, and stocks holding up with continued leadership.

With the market still showing leadership with even oil stocks holding
patterns despite oil's slide, we will continue working on finding good
leaders in position to enter and ride for gain. The world of central bank
driven markets is still in place and will remain in place if the data shows
the kind of weakness that reappeared last week. After all, as DB noted last
week, the US Fed says it is data dependent but doesn't act when data is
good, and then some bad data does actually hit and the entire process starts
over. I suppose that puts us in a start over situation and that means we
look for stocks to play higher as the Fed again puts off hiking rates.

Have a great weekend!

SUPPORT AND RESISTANCE

NASDAQ: Closed at 5162.13

Resistance:
5162 is the early November peak, 5176 is the December intraday peak

Support:
5100 from the April peak and early May peak
The 10 day EMA is 5100
5042 is the March 2015 high
5008.57 is the early March 2015 post-bear market high
5007 is the 12/31 upper gap point from that big gap lower
4999 is the October upper gap point
4980 is the June 2016 peak
4969 is the April 2016 recovery high
4960 is the September 2015 intraday high, an important reversal point for
NASDAQ.
The 50 day EMA at 4946
4920 is the lower gap point from mid-October 2015, the January 2016 lower
gap point
4916 is the mid-November 2015 low
4899 - 4902 from the September 2015 peak, July 2015 low
4894 is the September 2015 closing high
The 200 day SMA at 4845
4836 is the March 2016 peak
4815 is the December 2014 peak
4811 is the November 2014 peak (intraday)
4774 is the January 2-15 high
4751 is the January 2015 lower high
4684 is the May 2016 test low
4637 is the February intraday high
4620 is the February 1 closing high
4615 from September 2014 highs, October 2014 upper gap point, late August
2015 low.
4574 is the June 2015 low
4517-4506 from the September 2015 and August 2015 closing lows
4485 are the twin July 2014 peaks
4471 is the January 2016 closing low
4425 is the late February intraday low
4363 is the February upper gap point
4352 is the March 2014 peak
4313 is the January 2016 intraday low
4292 is the August 2015 low
4212 is the February intraday low


S&P 500: Closed at 2173.60

Resistance:

Support:
The 10 day EMA at 2165
2135 is the May 2015 all-time high
2130 is the June 2015 peak
2126 was the April 2015 prior all-time high
2120 is the June 2016 peak
2119 is the February 2015 intraday high
2116 is the November 2015 high
The 50 day EMA at 2116
2111 is the April 2016 recovery high
2104 is the December 2015 high
2094 is the December 2014 high
2079 is the intraday all-time high from November 2014
2062 is the January 2015 lower high
2046 is the July 2015 closing low
2040 is the March 2015 closing low
The 200 day SMA at 2041
2026 is the May 2016 low
2023 is the November 2015 low
2020 is the September 2015 intraday high
2011 is the September prior all-time high
1995 is the September 2015 recovery peak
1991 is the July 2014 high
1972 is the December 2014 low
1947 is the February 2016 intraday high, the late February peak
1940 is the January 2016 recovery bounce peak closing high
1913 is the early September 2015 closing low testing the bounce from the
August selling
1905 is the August 2014 low
1902 from early May was the intraday all-time high.
1897 is the prior all-time high hit in April 2014
1891 is last week's intraday low prior to the miraculous reversal.
1872 is the September 2015 test low of the August low
1867 is the August 2015 low

Dow: Closed at 18,432.24

Resistance:

Support:
The 10 day EMA at 18,449
18,351 is the all-time high from May 2015
18,288 from March 2015
18,168 is the April 2016 recovery high
18,100 to 18,181: interim peaks in the December 2014 to July 2015 range
The 50 day EMA at 18,067
18,016 is the June 2016 peak
17,978 is the November 2015 peak
17,600 is the rough bottom of the April to June range.
The 200 day SMA at 17,435
17,351 is the September 2014 all-time high.
17,265 is a December 2015 closing low
17,245 is the November 2015 closing low
17,152 is the mid-July 2014 post bear market high
17,068 is the early July 2014 peak
17067 is the December 2014 low
17,063 is the June 2016 low
16,970 is the June 2014 former all-time high
16,946 is the June 2014 peak
16,933 is the September 2015 recovery intraday peak
16,740 is the mid-September peak and potential apex for a right shoulder to
a head and shoulders pattern
16,736 is a prior all-time high from May 2014
16,670 is the December 2014 peak and the recent August 2015 relief bounce
peak.
16,665 is the late August 2015 closing high
16,632 is the April 2014 peak
16,621 is the late February 2016 peak
16,589 is the December 2013 former all-time high
16,526 is the early January resistance
16,511 is the January 2016 intraday high
16,506 is the March 2014 peak
16,466 is the January 2016 recovery closing peak.
16,368 is the August 2014 low


ECONOMIC CALENDAR

July 29 - Friday
July 29 - Friday
GDP-Adv., Q2 (8:30): 1.2% actual versus 2.6% expected, 0.8% prior (revised
from 1.1%)
Chain Deflator-Adv., Q2 (8:30): 2.2% actual versus 1.9% expected, 0.5% prior
(revised from 0.4%)
Employment Cost Index, Q2 (8:30): 0.6% actual versus 0.6% expected, 0.6%
prior (no revisions)
Chicago PMI, July (9:45): 55.8 actual versus 54.0 expected, 56.8 prior (no
revisions)
Michigan Sentiment -, July (10:00): 90.0 actual versus 90.4 expected, 93.5
prior (no revisions)

August 1 - Monday
Construction Spendin, June (10:00): -0.8% prior
ISM Index, July (10:00): 53.1 expected, 53.2 prior
Construction Spendin, June (10:00): 0.7% expected, -0.8% prior

August 2 - Tuesday
Personal Income, June (8:30): 0.3% expected, 0.2% prior
Personal Spending, June (8:30): 0.3% expected, 0.4% prior
Core PCE Prices, June (8:30): 0.2% expected, 0.2% prior
PCE Prices, June (8:30): 0.2% prior
Auto Sales, July (14:00): 4.95M prior
Truck Sales, July (14:00): 8.24M prior

August 3 - Wednesday
MBA Mortgage Index, 07/30 (7:00): -11.2% prior
ADP Employment Chang, July (8:15): 165K expected, 172K prior
ISM Services, July (10:00): 55.8 expected, 56.5 prior
Crude Inventories, 07/30 (10:30): 1.671M prior

August 4 - Thursday
Challenger Job Cuts, July (7:30): -14.0% prior
Initial Claims, 07/30 (8:30): 264K expected, 266K prior
Continuing Claims, 07/23 (8:30): 2139K prior
Factory Orders, June (10:00): -1.9% expected, -1.0% prior
Natural Gas Inventor, 07/30 (10:30): 17 bcf prior

August 5 - Friday
Nonfarm Payrolls, July (8:30): 185K expected, 287K prior
Nonfarm Private Payr, July (8:30): 171K expected, 265K prior
Unemployment Rate, July (8:30): 4.8% expected, 4.9% prior
Average Hourly Earni, July (8:30): 0.2% expected, 0.1% prior
Average Workweek, July (8:30): 34.4 expected, 34.4 prior
Trade Balance, June (8:30): -$42.7B expected, -$41.1B prior
Consumer Credit, June (15:00): $16.2B expected, $18.6B prior

[ReturntoSender]

From Briefing.com: 6:20 pm Vivint Solar closes new $313 mln term loan facility - refinanced 11 tax equity funds that were part of the company's aggregation facility (VSLR) : The term loan facility provides back-leverage financing for a portfolio of 12 tax equity funds that own over 307 megawatts and 47,000 residential solar energy systems across 12 states. This syndicated credit facility provides an alternative to bond securitization. "We believe that the commercial bank market is a very accommodating market of execution for leading players in the power sector. Over time, we expect residential installers will find the bank market to be an attractive alternative to the securitization market."

5:58 pm Motorola Solutions announces $2 billion increase to share repurchase program (MSI) :

5:15 pm Emcore beats by $0.01, guides revs in-line (EMKR) :

Reports Q2 (Jun) earnings of $0.05 per share, excluding non-recurring items, $0.01 better than the Capital IQ consensus est analyst estimate of $0.04; revenues rose 6% year/year to $22.4 mln vs the $23.1 mln consensus

Co sees Q4 revs outlook at $23-25 mln vs. $24.1 mln consensus

4:43 pm Motorola Solutions beats by $0.16, beats on revs; guides Q3 just below consensus; reaffirms FY16 guidance; adds $2 bln to repurchase program (MSI) :

Reports Q2 (Jun) earnings of $1.03 per share, excluding non-recurring items, $0.16 better than the Capital IQ Consensus of $0.87; revenues rose 4.5% year/year to $1.43 bln vs the $1.4 bln Capital IQ Consensus including $146 million in sales associated with the Airwave acquisition. As expected, Products segment sales declined 8 percent primarily driven by weakness in Latin America, Europe and China. The Services segment grew 26 percent with the addition of Airwave, and posted growth of 4 percent in organic managed and support services. Excluding Airwave, the Services segment declined 4 percent due to lower systems integration revenues associated with the completion of a large project in Europe.

Co issues downside guidance for Q3, sees EPS of $1.17-1.22, excluding non-recurring items, vs. $1.23 Capital IQ Consensus Estimate; sees Q3 revs of +% to ~$1.51-1.52 bln vs. $1.53 bln Capital IQ Consensus Estimate.

Co reaffirms guidance for FY16, sees EPS of $4.45-4.65, excluding non-recurring items, vs. $4.52 Capital IQ Consensus Estimate; sees FY16 revs of +5-7% to ~$5.98-6.09 bln vs. $5.98 bln Capital IQ Consensus Estimate.

Ending backlog is $8.2 billion, up $2.2 billion from the year ago period, driven by the addition of $1.6 billion from Airwave and approximately $600 million of organic managed and support services. Products backlog was up $64 million from the year-ago period.

The company also announced that its board of directors has approved a $2 billion increase to the share repurchase program, raising the total authorization since July 2011 to $14 billion.

4:40 pm Universal Display misses by $0.05, misses on revs; guides FY16 revs below consensus (OLED) :

Reports Q2 (Jun) earnings of $0.46 per share, $0.05 worse than the Capital IQ Consensus of $0.51; revenues rose 10.8% year/year to $64.4 mln vs the $69.51 mln Capital IQ Consensus.

Co issues downside guidance for FY16, sees FY16 revs of $190-200 mln vs. $217.04 mln Capital IQ Consensus Estimate.

"We expect strong revenue growth in 2017. At that time, new OLED production from the multi-year capital expenditure cycle is slated to start contributing to our revenues. Ahead of this wave of high-volume capacity, we have been working to expand and broaden our team and core competencies to advance our strategic initiatives and increase our competitive edge. We expect these initiatives, along with new OLED capacity, coupled with our pipeline of new materials, new technologies and new agreements, to bolster our long-term growth plan."

4:39 pm Sierra Wireless beats by $0.08, reports revs in-line; guides Q3 EPS, revs below consensus; sees FY16 EPS, revs at low end of prior guidance (shares halted) (SWIR) :

Reports Q2 (Jun) earnings of $0.20 per share, $0.08 better than the Capital IQ Consensus of $0.12; revenues fell 1.1% year/year to $156.23 mln vs the $154.95 mln Capital IQ Consensus.

On August 3, 2016, the co completed the acquisition of all of the outstanding shares of GenX Mobile Incorporated for total cash consideration of $7.8 million ($6.0 million, net of cash acquired), subject to working capital adjustments. GenX is a provider of in-vehicle cellular devices for the fleet management, asset tracking and transportation markets.

"As a global leader in intelligent wireless solutions for the Internet of Things, we believe that we are well positioned to drive strong long term growth. However, our short term outlook is more cautious. While we expect to see continued solid revenue contributions from new OEM programs, we are seeing signs of softer short term demand and tighter inventory management with some established OEM customers and programs.

Co issues downside guidance for Q3, sees EPS of $0.06-0.13 vs. $0.22 Capital IQ Consensus Estimate; sees Q3 revs of $145-155 mln vs. $167.19 mln Capital IQ Consensus Estimate.

Co comments on FY16 guidance for FY16, saying it sees EPS at the low end of its $0.60-0.90 guidance vs. $0.69 Capital IQ Consensus Estimate; sees FY16 revs at the low the low end of its prior $630-670 mln guidance vs. $643.73 mln Capital IQ Consensus Estimate. "In the fourth quarter of 2016, we expect to see sequential and year-over-year growth, although not to the levels previously anticipated."

4:37 pm Super Micro Computer beats by $0.04, reports revs in-line; guides Q1 in-line (SMCI) :

Reports Q4 (Jun) earnings of $0.20 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $0.16 and guidance of $0.15-0.17; revenues fell 8.6% year/year to $524.3 mln vs the $523.34 mln Capital IQ Consensus and guidance of $520-524 mln.

Co issues in-line guidance for Q1, sees EPS of $0.15-0.30, excluding non-recurring items, vs. $0.28 Capital IQ Consensus Estimate; sees Q1 revs of $470-550 mln vs. $532.69 mln Capital IQ Consensus Estimate.

4:33 pm Univ Elec reports EPS in-line, beats on revs; guides Q3 EPS in-line, revs in-line (UEIC) :

Reports Q2 (Jun) earnings of $0.77 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.77; revenues rose 16.7% year/year to $172.2 mln vs the $169.97 mln Capital IQ Consensus.

Co issues in-line guidance for Q3, sees EPS of $0.87-0.97, excluding non-recurring items, vs. $0.95 Capital IQ Consensus Estimate; sees Q3 revs of $169-177 mln vs. $175.73 mln Capital IQ Consensus Estimate.

4:28 pm FEI beats by $0.05, beats on revs (FEIC) :

Reports Q2 (Jun) earnings of $0.92 per share, excluding transaction costs related to the pending merger with Thermo Fisher Scientific (TMO)and purchase accounting adjustments and integration costs related to the December 2015 acquisition of DCG Systems, Inc., $0.05 better than the Capital IQ Consensus of $0.87; revenues rose 15.7% year/year to $259.36 mln vs the $254.82 mln Capital IQ Consensus.

4:19 pm Applied Optoelectronics beats by $0.10, beats on revs; guides Q3 above consensus (AAOI) :

Reports Q2 (Jun) earnings of $0.16 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus of $0.06; revenues rose 11.5% year/year to $55.3 mln vs the $50.84 mln Capital IQ Consensus.

Co issues upside guidance for Q3, sees EPS of $0.16-0.21 vs. $0.15 Capital IQ Consensus Estimate; sees Q3 revs of $56-59 mln vs. $54.56 mln Capital IQ Consensus Estimate.

"We achieved top and bottom-line results well above our guidance and we are pleased with the progress we made during the quarter. Our results were driven by continued strong demand for our market-leading data center products, where we generated our fifth consecutive quarter of record revenue, and an improvement in demand for our CATV products."

4:18 pm Universal Display signs five-year License and Supplemental Material Purchase Agreement with Tianma Micro-electronics (OLED) : The co announced the signing of an OLED Technology License Agreement and Supplemental Material Purchase Agreement with Tianma Micro-electronics Co. Ltd., a leading Chinese small-and medium-size display panel manufacturer. The agreements run for five years

4:05 pm LinkedIn beats by $0.35, beats on revs (LNKD) :

Reports Q2 (Jun) earnings of $1.13 per share, excluding non-recurring items, $0.35 better than the Capital IQ Consensus of $0.78; revenues rose 31.0% year/year to $932.71 mln vs the $898.56 mln Capital IQ Consensus.On June 11, 2016, LinkedIn entered into a merger agreement with Microsoft Corporation (MSFT) under which Microsoft will acquire LinkedIn for $196.00 per share in an all-cash transaction valued at approximately $26.2 bln, inclusive of LinkedIn's net cash.

Briefing Market Update - 4:20 pm : The stock market ended a surprisingly sleepy session on a flat note as the S&P 500 (UNCH) maintained a meager nine-point range. We say surprising because the Bank of England (BOE) caused quite the stir this morning with some monetary policy accommodation that was more aggressive than expected.

In particular, the BOE exceeded market expectations when it announced a 25 basis point cut in its Bank Rate to a record-low 0.25%, and added that it will purchase up to GBP10 billion of U.K. corporate bonds, and expand its purchase of UK government bonds by GBP60 billion, bringing its total stock of asset purchases to GBP435 billion.

In the past, such a healthy dose of policy stimulus would have stimulated a much more enthusiastic response in the stock market. That didn't happen this time, however. The market's sluggish behavior was held out as a possible indication that market participants believe monetary policy actions are no longer effective.

The latter point notwithstanding, the British pound dropped nearly 2.0% against the dollar to 1.3130 and sovereign bond markets rallied in the wake of the decision, generating an added thought that the Federal Reserve seems likely to refrain from raising its key policy rate at all this year.

Investors lacked conviction throughout today's session, mulling the possible implications of the BOE decision and cognizant that the Employment Situation Report for July will be released on Friday before the start of trading.

Today's trade featured a continued rebound in oil, some strengthening in the dollar, and otherwise mixed performances by the stock market's most influential sectors. To that end, the information technology sector (+0.4%) traded higher while the financial sector (-0.3%) traded lower. All other sectors moves were equally limited in scope on either side of the unchanged line.

The Nasdaq Composite (+0.1%) ended its day slightly ahead of the S&P 500 (UNCH) and the Dow Jones Industrial Average (UNCH).

The S&P 500 meandered in a tight trading range today, finding support at 2159, which was the previous range low, and largely ignored the Factory Orders report for June (-1.5%; Briefing.com consensus -1.9%), which featured the second consecutive monthly decline in factory orders.

A reversal in oil futures added to support efforts as the energy component continued its recent rebound. WTI crude finished its day higher by 2.7% ($41.93/bbl; +$1.11), erasing its weekly loss.

The S&P 500 (UNCH) finished in the middle of today's trading range as six sectors finished in the red. The financial sector (-0.3%) finished behind health care (-0.2%) and energy (-0.2%). Conversely, technology (+0.4%) finished in-line with materials (+0.4%) and ahead of consumer staples (+0.2%) at the front of the pack.

Relative strength in Microsoft (MSFT 57.39, +0.42) and Facebook (FB 124.36, +1.85) helped the technology sector outperform. The two large caps gained 0.7% and 1.5%, respectively. The high-beta chipmakers also outperformed as the sub-group moved higher, helped by gains in ASML (ASML 110.09, +1.64) and Micron (MU 14.03, +0.52).

The economically-sensitive financial sector (-0.3%) underperformed as long-term interest rates came under pressure following the Bank of England's decision. Life insurance names also contributed to sustained weakness as Prudential (PRU 72.84, -3.31) and MetLife (MET 39.54, -3.76) fell 4.4% and 8.7%, respectively. The two names disappointed investors with their bottom-line quarterly results.

Biotechnology displayed relative weakness in the health care space (-0.2%) as the iShares Nasdaq Biotechnology ETF (IBB 296.15, -1.77) trimmed its weekly gain to 2.3%. In the group, Biogen (BIIB 315.56, -6.78) continued to underperform as investors further discounted an acquisition of the company. The stock rallied 9.4% on Tuesday on M&A speculation. Elsewhere, Regeneron Pharmaceuticals (REGN 433.40, -7.97) declined 1.8% after missing top-line estimates for the quarter.

The U.S. Dollar Index (95.77, +0.21) finished modestly higher as the euro and the pound lost ground against the buck. The single currency declined 0.2% against the dollar (1.1130).

Treasuries finished the day on a higher note as yields came down across the curve. The 10-yr note yield finished lower by four basis points (1.51%).

Participation was below the recent average as fewer than 796 million shares changed hands at the NYSE floor.

Today's economic data included Challenger Job Cuts for July, weekly initial claims, and Factory Orders for June:

July Challenger Job Cuts reported in at 45,300, which compares to the prior month's reading of 38,500.
Initial claims increased by 3,000 to 269,000 (Briefing.com consensus 264,000) for the week ending July 30.
There were no special factors influencing the initial claims reading.
The four-week moving average for initial claims jumped to 260,250 from 256,500.
Weekly initial claims remained below 300,000 for the 74th straight week.
Continuing claims decreased by 6,000 to 2.138 million for the week ending July 23.
The four-week moving average for continuing claims increased by 5,250 to 2.142 million, which is still near its lowest level since November 2000.
Factory orders declined 1.5% in June (Briefing.com consensus -1.9%) on the heels of a downwardly revised 1.2% decline (from -1.0%) in May.
That qualified June as a double-dip month since it was the second consecutive month that factory orders declined.
On a year-over-year basis, factory orders are down 2.6% with durable goods orders unchanged and nondurable goods orders down 5.1%.
Orders for durable goods slumped 3.9% in June after a 2.9% decline in May.
That had a lot to do with a 10.5% decline in orders for transportation equipment, which featured a 58.8% decline in orders for nondefense aircraft and parts.
There was some offsetting strength fortunately in orders for nondurable goods industries, which increased 1.0% in June on the back of a 0.6% increase in May.
Notwithstanding the back-to-back monthly decline in factory orders, shipments increased 0.7% and were up for the fourth straight month.
Total inventories for all manufacturing industries were down 0.1% and have now declined in thirteen of the last fourteen months.
The inventory-to-shipments ratio dipped to 1.35 in June from 1.36 in May.

Tomorrow's data includes the 8:30 ET release of the Employment Situation Report for July. The report is expected to show that nonfarm payrolls increased by 185,000. Separately, the June Trade Balance Report (Briefing.com consensus -$42.7 billion) June Consumer Credit (Briefing.com consensus $16.2 billion) will cross the wires at 8:30 ET and 15:00 ET.

DJ30 -2.95 NASDAQ +6.51 SP500 +0.46 NASDAQ Adv/Vol/Dec 1443/1.714 bln/1375 NYSE Adv/Vol/Dec 1665/795.5 mln/1273

3:30 pm :

Commodities, as measured by the Bloomberg Commodity Index, were up +0.4% around the 83.91 level
Crude oil extends yesterday's post-EIA gains ahead of tomorrow's Baker Hughes rig count data
September crude oil futures rose $1.11 (+2.7%) to $41.93/barrel
Natural gas closes lower despite inventory data showing a surprise draw compared to Consensus
September natural gas closed $0.01 lower (-0.4%) at $2.83/MMBtu
Natural gas inventory showed a draw of -6 bcf vs expectations for inventory to be a build between +1 and +10 bcf.
Working gas in storage was 3,288 Bcf as of Friday, July 29, 2016, according to EIA estimates.
Stocks were 389 Bcf higher than last year at this time and 464 Bcf above the five-year average of 2,824 Bcf.
At 3,288 Bcf, total working gas is above the five-year historical range.
In precious metals, gold & silver trade in opposite directions, widening the gold:silver ratio
December gold ended today's session up (+0.2%) $2.60 to $1367.20/oz
September silver closed today's session $0.04 lower (-0.2%) at $20.43/oz
Base metal copper ends lower for the second day in a row
September copper closed $0.03 lower (-1.4%) at $2.17/lb

TECHSTOCKS: Today's flat performance in the broader market comes on the heels of the Bank of England's decision to lower its key interest rate to a record-low 0.25% from 0.50% and ahead of tomorrow's influential Employment Situation Report for July. Further, the BoE voted to increase its U.K. government bond purchases by GBP60 billion and to purchase up to GBP10 billion of U.K. corporate bonds. The accommodative monetary policy decision follows the surprise Brexit vote in late June.

Also, market data today came in the form of July Challenger Job Cuts which were 45,300, compared to the prior month's reading of 38,500. Additionally, initial claims increased by 3,000 to 269,000 for the week ending July 30. Continuing claims decreased by 6,000 to 2.138 million for the week ending July 23. Factory orders declined 1.5% in June on the heels of a downwardly revised 1.2% decline (from -1.0%) in May.

Thursday concluded a mixed session as morning weakness cooled into the afternoon and ultimately ended on a modestly lower tick. Leading the day higher, the Nasdaq Composite added 6.51 points (+0.13%) to 5166.25. Helping the Nasdaq outperform today, top Nasdaq 100 components TSLA +2.1%, PYPL +2.0, NVDA +1.9%, AVGO +1.8%, MAR +1.3% all finished with strong days. The S&P 500 was up less than a point (+0.02%) when the day was done to 2164.25, and the Dow Jones Industrial Average was the lone laggard, shedding 2.95 points (-0.02%) to 18352.05.

As it were, S&P sectors were also scattered as a whole with XLB +0.37%, XLP +0.24%, XLI +0.03%, XLU -0.06%, XLY -0.06%, IYZ -0.09%, XLV -0.15%, XLE -0.18%, XLF -0.30%. Technology (XLK 46.58, +0.23 +0.50%) was the best performing S&P sector, ending just off highs of the day. Component Western Union (WU 20.69, +0.77 +3.89%) posted a strong Thursday following better than expected Q2 earnings.

In the S&P 500 Information Technology (772.10, +3.79 +0.49%) sector, trading came to a close slightly off highs after tepid morning action. Component First Solar (FSLR 43.72, -5.52 -11.21%) was the worst performing component following its latest quarterly print; the company beat market expectations on the top and bottom lines for Q2 but worries about margins and commentary regarding a very competitive pricing environment held the stock lower today. Other names in the space which outperformed today included PYPL +1.97%, TDC +2.02%, NVDA +1.85%, AVGO +1.75%, STX +1.72%, FB +1.51%, YHOO +1.38%, MSI +1.36%, LRCX +1.26%, SWKS +1.20%, HPE +1.16%.

Notable news items among tech companies:

CSRA (CSRA 25.85, -0.25 -0.96%) announced it received a contract to support the Air Force Research Laboratory in conducting human-centered research and development to improve and protect mission-critical processes and tools used by airmen. The single-award contract is valued at $7.5 million over a six-year period.

RadiSys (RSYS 4.72, +0.01 +0.21%) filed for a $100 million mixed securities shelf offering.

Novatel Wireless (MIFI 2.00, +0.12 +6.38%) disclosed a restructuring plan including the reduction of the workforce by about 24%.

TerraForm Global (GLBL 3.36, -0.03 -0.88%) disclosed the receipt of a letter from SunEdison (SUNEQ 0.12, flat) purporting to terminate the Interest Payment Agreement dated as of August 5, 2015.

Elli Mae (ELLI 98.50, +5.98 +6.46%) priced a follow-on offering of 2.75 million shares of its common stock at a price to the public of $90 per share.

Guidewire Software (GWRE 61.31, +0.38 +0.62%) to acquire FirstBest. Financial terms of the deal were not disclosed.

Zynga (ZNGA 2.97, +0.01 +0.34%) appointed Matt Bromberg as COO effective August 8.

BlackBerry (BBRY 7.76, -0.02 -0.26%) commenced a normal course issuer bid to purchase up to $125 million principal amount of its 6% unsecured convertible debentures.

In reaction to quarterly results:

BCE Inc (BCE 47.94, +0.68 +1.44%) reported better than expected Q2 EPS of C$0.94 and in-line revenues of C$5.34 billion. The company also reaffirmed FY16 EPS and revenue guidance of C$3.45-3.55 and growth of 1-3%, respectively.

Nokia (NOK 5.50, -0.19 -3.34%) reported in-line Q2 EPS of EUR0.03 on worse than expected revenues which rose 91.3% versus a year ago to EUR5.58 billion.

Equinix (EQIX 371.40, +1.06 +0.29%) reported Q2 funds from operations of $3.55 per share on revenues of $900.5 million. The company also sees Q3 revenues of $915-921 million on adjusted EBITDA of $419-425 million. For FY16, the company expects revenues of $3.59-3.61 billion on adjusted EBITDA of $1.658-1.668 billion.

CenturyLink (CTL 30.25, -0.26 -0.85%) reported better than expected Q2 EPS of $0.63 on in-line revenues of $4.4 billion. For Q3, CTL sees EPS worse than market expectations at $0.52-0.57 on in-line revenues of $4.35-4.40 billion.

Western Union (WU) reported better than expected Q2 EPS of $0.42 on revenues which came in at $1.38 billion. For FY16, the company sees EPS of $1.60-1.70 compared to prior expectations of $1.58-1.70.

TripAdvisor (TRIP 63.59, -5.90 -8.49%) reported worse than expected Q2 EPS and revenues of $0.38 and $391 million, respectively.

First Solar (FSLR) reported better than expected Q2 EPS and revenues of $0.87 and $934 million, respectively. For FY16, the company sees better than expected EPS of $4.20-4.50, prior guidance was $4.10-4.50 on revenues of $3.8-4.0 billion.

GoDaddy (GDDY 31.78, +3.47 +12.26%) reported a Q2 loss per share of $0.11 on better than expected revenues which rose 15.6% compared to a year ago to $456.2 million. The company also sees Q3 revenues of $468-471 million. For FY16 revenues, GDDY sees $1.84-1.847 billion.

Companies scheduled to report quarterly results tonight/tomorrow morning: TWOU ATVI ACXM MDRX AMBR ASYS AAOI ANET TEAM ABTL RATE WIFI ECOM CPSI CSOD DMD FEIC FEYE GSAT HDP IMMR IMPV SAAS INAP KTOS LNKD MRIN MELI MSI EGOV PCLN RBCN SHOR SWIR SSNI SMCI SYMC TTWO TRMR TRUE UBNT OLED WEB ZG ZNGA/CTSH TDS USM

Analyst actions:

TXN was upgraded to Neutral from Underperform at Exane BNP Paribas,
IPAS was upgraded to Buy from Neutral at Chardan Capital Markets,
NSIT was upgraded to Mkt Perform from Underperform at Raymond James,
LMOS was upgraded to Buy from Hold at Jefferies,
IL was upgraded to Buy from Hold at Craig Hallum;
RUBI was downgraded to Neutral from Buy at Citigroup and to Hold from Buy at Needham,
INOV was downgraded to Underweight from Neutral at Piper Jaffray and to Neutral from Buy at Goldman, TNET was downgraded to Equal Weight from Overweight at Morgan Stanley,
FLTX was downgraded to Equal Weight from Overweight at Barclays

[ReturntoSender]

From Briefing.com: Weekly Recap - Week ending 30-Sep-16The stock market saw some volatility during the past week, which could be easy to overlook, considering the S&P 500 added 0.2% for the week.

The trading week began with a decline that was driven by renewed concerns about Deutsche Bank's capital standing. German Chancellor Angela Merkel said that the bank would not be eligible for state aid if it were to experience a capital shortfall. This drove up concerns that something may indeed be wrong at Deutsche Bank. The stock remained in focus throughout the week, leading another market-wide swoon on Thursday amid reports that some funds who clear trades with Deutsche Bank have reduced their positions and withdrawn some excess cash. The stock ended Thursday with a 6.7% decline, weighing on sentiment in the broader market.

A turnaround in Deutsche Bank and the market developed on Friday when bank CEO John Cryan sent a letter to employees, assuring them of the bank's health. The stock rallied out of the gate on Friday, receiving another boost after AFP reported that the bank is nearing a $5.40 billion settlement with the Justice Department, down from the $14 billion that was originally sought by the DoJ.

As for rate hike expectations, they ended the week higher, but dipped briefly after Friday's economic data introduced another confounding element into the discussion. Specifically, August Core PCE Prices declined 0.1% (Briefing.com consensus +0.2%) even though other inflation measures trended up in August. The implied probability of a rate hike at the December meeting fell to 53.1% intraday, but climbed to 61.7% by the end of the day, up from last week's 54.2%, according to the fed funds futures market.

Index Started Week Ended Week Change % Change YTD %
DJIA 18261.45 18308.15 46.70 0.3 5.1
Nasdaq 5305.75 5312.00 6.25 0.1 6.1
S&P 500 2164.69 2168.27 3.58 0.2 6.1
Russell 2000 1254.62 1251.65 -2.97 -0.2 10.2

4:19 pm Closing Market Summary: Stocks Climb Amid Rebound in Financials (:WRAPX) :

The stock market ended a bumpy week on a higher note with all three major averages climbing near 0.8%. The S&P 500 (+0.8%) rallied into the late afternoon, but selling during the final minutes of the session drove the index just below its 50-day moving average (2168.4), which acted as resistance throughout the month. The S&P 500 gained 0.2% for the week, but shed 0.1% for the month. The benchmark index advanced 3.3% during the third quarter, underperforming the Nasdaq (+0.8%), which climbed 9.7% in Q3 and gained 1.9% in September.

Deutsche Bank (DB 13.09, +1.61) dominated headlines for the second day in a row, but today's focus was on a rebound in the stock amid reassurances from the bank's Chief Executive Officer John Cryan. Mr. Cryan sent a letter to employees, in which he described the bank's capital position as solid, noting that liquid reserves are well above pre-crisis levels from 2007. The stock doubled its late-morning gain, ending higher by 14.0%, after AFP reported the bank's MBS settlement with the Department of Justice will be reduced to $5.4 billion from $14.0 billion. The report was not confirmed by Deutsche Bank and it is worth noting that markets in Germany will be closed on Monday in observance of Unification Day.

The rebound in Deutsche Bank boosted sentiment in the financial sector (+1.4%), which narrowed its September loss to 2.9%, but still ended the month well behind the other ten sectors. Friday's sector-wide rally did not stop Wells Fargo (WFC 44.55, +0.18) from ending in the red as the stock set a fresh low for the year (44.10). The stock spent the entire month in a sharp decline, falling 12.5%, amid fallout from the discovery of more than two million illegally-opened credit card and deposit accounts.

The financial sector was followed by energy (+1.3%), which locked in a market-leading 3.0% gain for the month. The growth-sensitive sector outpaced crude oil, which climbed 0.8% to $48.11/bbl. The energy component gained 7.6% in September, but slipped 0.5% for the quarter.

Consumer staples (+1.0%) and health care (+1.0%) also spent the day among the leaders while other defensively-oriented sectors like utilities (-0.7%), telecom services (-0.3%), and real estate (-0.5%) lagged.

Elsewhere, the top-weighted technology sector (+0.6%) finished in the middle of the pack, masking relative strength among chipmakers as interest surrounding Qualcomm's (QCOM 68.50, +1.05) rumored acquisition of NXP Semiconductor (NXPI 102.02, +5.89) grew. NXP Semiconductor surged nearly 25.0% after Thursday's Wall Street Journal report brought the potential acquisition to light. The PHLX Semiconductor index advanced 1.6% on Friday.

Today's rally in stocks lured some money out of the Treasury market, sending the 10-yr yield higher by four basis points to 1.60%.

Quarter-end flows resulted in increased participation as more than 1.2 billion shares changed hands at the NYSE floor.

Economic data included Personal Income, Personal Spending, Core PCE Prices, Chicago PMI, and Michigan Sentiment:

Personal income increased 0.2% month-over-month in August, as expected, while personal spending was unchanged (Briefing.com consensus +0.2%). Real personal spending ("real PCE"), though, was down 0.1% The decline in real PCE will weigh on Q3 GDP growth forecasts and leave the market in a confused state on the timing of the next rate hike since real PCE was weak in August while the inflation measures trended up
The MNI Chicago Business Barometer jumped to 54.2 in September (Briefing.com consensus 52.0) from 51.5 in August. In the same period a year ago, the barometer stood at 47.8
The final reading for the September Index of Consumer Sentiment checked in at 91.2. That was above the Briefing.com consensus estimate of 90.0 and up from the final reading of 89.8 for August Monday's economic data will include the 10:00 ET release of August Construction Spending (Briefing.com consensus 0.2%) and September ISM Index (Briefing.com consensus 50.4) while auto and truck sales for September will be reported throughout the day.

Russell 2000 +10.2% YTDNasdaq Composite +6.1% YTDS&P 500 +6.1% YTDDow Jones Industrial Average +5.1% YTDWeek in Review: Bank Shares Wobble, But Market Holds

The stock market saw some volatility during the past week, which could be easy to overlook, considering the S&P 500 added 0.2% for the week.

The trading week began with a decline that was driven by renewed concerns about Deutsche Bank's capital standing. German Chancellor Angela Merkel said that the bank would not be eligible for state aid if it were to experience a capital shortfall. This drove up concerns that something may indeed be wrong at Deutsche Bank. The stock remained in focus throughout the week, leading another market-wide swoon on Thursday amid reports that some funds who clear trades with Deutsche Bank have reduced their positions and withdrawn some excess cash. The stock ended Thursday with a 6.7% decline, weighing on sentiment in the broader market.

A turnaround in Deutsche Bank and the market developed on Friday when bank CEO John Cryan sent a letter to employees, assuring them of the bank's health. The stock rallied out of the gate on Friday, receiving another boost after AFP reported that the bank is nearing a $5.40 billion settlement with the Justice Department, down from the $14 billion that was originally sought by the DoJ.

As for rate hike expectations, they ended the week higher, but dipped briefly after Friday's economic data introduced another confounding element into the discussion. Specifically, August Core PCE Prices declined 0.1% (Briefing.com consensus +0.2%) even though other inflation measures trended up in August. The implied probability of a rate hike at the December meeting fell to 53.1% intraday, but climbed to 61.7% by the end of the day, up from last week's 54.2%, according to the fed funds futures market.

Equity indices charged out of the gate, boosted by improved sentiment surrounding Deutsche Bank (DB 13.09, +1.61 +14.02%). Shares of the German banking giant have erased yesterday's losses after two positively-framed reports made the rounds. Chief Executive Officer John Cryan sent a letter to employees, in which he assured them of the bank's capital position, and pointed out that liquid reserves are well above levels from 2007

The news propelled a rebound in European trade, which carried into the opening hours of the New York session. Deutsche Bank stock has received another boost, extending its gain to 14.4% after AFP reported that the bank is nearing an agreement with the Department of Justice to reduce the mortgage-backed securities settlement to $5.40 billion from $14.00 billion. The focus is likely to remain on Deutsche Bank in the coming days, but markets in Germany will be closed on Monday in observance of Unification Day.

To wind down the month, market data today included the personal income reading, which showed a 0.2% month-over-month increase in August, as expected, while personal spending was unchanged. Real personal spending ("real PCE"), though, was down 0.1%. Additionally, the MNI Chicago Business Barometer jumped to 54.2 in September from 51.5 in August. In the same period a year ago, the barometer stood at 47.8. Lastly, the final reading for the September Index of Consumer Sentiment checked in at 91.2; that reading was up from the final reading of 89.8 for August.

September, and the third quarter, came to a close with some decent gains. The Friday session was capped off with the Dow Jones Industrial Average up 164.70 points (+0.91%) to 18308.15. The Nasdaq Composite added 42.85 points (+0.81%) to 5312.00, and the S&P 500 gained 17.14 points (+0.80%) to 2168.27. This week's moves took the three major US indices +5.1%, +6.1% and +6.1% YTD, respectively. The third quarter moves were +2.1%, +9.7% and +3.3%, respectively.

Technology (XLK 47.78, +0.25 +0.53%) ended the month with strong gains as the sector was in the green for the entirety of the day. Component Cognizant Tech (CTSH 47.63, -7.37 -13.40%) was the worst performing name in the space today following the resignation of President Gordon Coburn. Other sectors as measured by the S&P closed XLE +1.45%, XLFS +1.40%, XLF +1.37%, XLV +1.02%, XLP +1.01%, XLI +0.90%, XLY +0.81%, XLB +0.74%, XLRE -0.46%, IYZ -0.62%, XLU -0.69%.

In the S&P 500 Information Technology (801.72, +4.44 +0.56%) sector, action closed out the quarter near highs of the day. Component Qualcomm (QCOM 68.50, +1.05 +1.56%) had another strong session following a premarket upgrade at Mizuho primarily driven by rumors from yesterday that the company would buy NXP Semi (NXPI 102.01, +5.89 +6.13%). Other names in the space which out-performed today included SWKS +3.93%, QRVO +3.84%, NTAP +3.14%, TDC +2.96%, STX +2.01%, AMAT +1.93%, EBAY +1.86%, TEL +1.69%, NVDA +1.66%, LRCX +1.62%, WU +1.61%, XLNX +1.59%, QCOM +1.56%, JNPR +1.48%, PYPL +1.44%.

Other notable news items among sector components:

Shape Security announced a strategic investment from Hewlett Packard Enterprise (HPE 22.75, -0.15 -0.66%) Pathfinder to close a $40 million Series D round of funding.

MasterCard (MA 101.77, +1.16 +1.15%) amended its By-Laws to add proxy access procedures for qualifying stockholders.

Cognizant Tech (CTSH) appointed Rajeev (Raj) Mehta as President of the company; replaces Gordon Coburn who resigned.

According to Reuters, Qualcomm (QCOM) plans to battle against EU antitrust charges in November.

Elsewhere in the tech space:

Ultimate Software (ULTI 204.39, -1.09 -0.53%) acquired cloud workforce intelligence provider Kanjoya. Financial terms of the deal were not disclosed.

Comtech Telecom (CMTL 12.81, -0.32 -2.44%) announced Chairman Fred Kornberg will immediately resume his role as CEO and President and that its current CEO and President Stanton Sloane will depart CMTL.

Zynga (ZNGA 2.91, +0.10 +3.56%) appointed Gerard Griffin as CFO effective immediately.

FXCM (FXCM 8.77, +0.16 +1.86%) sold its DailyFX website for $40 million.

Renren (RENN 2.06, +0.15 +7.85%) announced intentions to spin off a newly formed subsidiary that will hold the social video platform woxiu.com and most of the investments in minority stakes in privately held companies.

Lexmark (LXK 39.96, +4.83 +13.75%) and Apex Consortium received clearance from CFIUS to proceed with the proposed transaction. The transaction is still expected to close in 2016.

In reaction to quarterly results:

CalAmp (CAMP 13.95, -2.46 -14.99%) reported in-line Q2 EPS of $0.27 on worse than expected revenues which rose 29.6% compared to last year to $90.5 million. The company also gave Q3 guidance, excluding the satellite business that ceased operations at the end of Q2 of EPS of $0.24-0.30 on revenues of $81-87 million.

Analyst actions:

QCOM was upgraded to Buy from Neutral at Mizuho,
NTAP was upgraded to Buy from Hold at Summit Redstone;
CAMP was downgraded to Equal Weight from Overweight at First Analysis Sec,
CTSH was downgraded to Neutral from Buy at Citigroup, and was downgraded to Hold from Buy at Argus, NTAP was downgraded to Hold from Buy at Standpoint Research;
MCHP was initiated with a Neutral at Mizuho,
EPAY, PCTY and PAYC were initiated with a Sector Perform at RBC Capital Mkts,
CTSH was initiated with a Buy at HSBC,
SPSC was initiated with an Overweight at Pacific Crest,
INFN and CIEN were initiated with a Hold at Stifel,
FSLR and AYI were initiated with Buy ratings at Williams Capital,
SPWR and CREE were initiated with Hold ratings at Williams Capital,
NLST was initiated with a Speculative Buy at The Benchmark Company,
RUBI was initiated with a Market Perform at Albert Fried,
NTNX was initiated with a Buy at Maxim Group

[ReturntoSender]

From Briefing.com: Weekly Recap - Week ending 07-Oct-16A lot happened in the last week, yet one thing that didn't happen was the S&P 500 breaking out of its trading range. That will have to wait for another time.

When that time comes is anyone's best guess. For the time being, the market seems to be finding it difficult to know what to think. That is leading to some erratic trading behavior, which is sapping investor conviction and leading to the tight trading range.

The week that just concluded featured three down days for the S&P 500 and two up days. The net change was a loss of approximately 15 points or 0.7%.

Notably, the biggest losers for the week were sectors that had previously been big winners. That included the utilities, telecom services, and real estate sectors. Those areas, popularly known as "yield plays" in a low-yielding world, were down between 3.0% and 5.0% for the week, as some crowded positioning in those names got a little less crowded with long-term interest rates pushing higher.

The yield on the benchmark 10-yr note climbed as high as 1.76% from last Friday's settlement of 1.60% before ending the week at 1.72%. That move mirrored moves seen in other sovereign bond markets as investors once again butted up against the view that central banks are hitting their policy limits in terms of their asset purchase programs.

That angst was fed by a Bloomberg report earlier in the week that suggested an unofficial consensus among ECB officials has been reached for discussing how, and when, to taper the bank's asset purchase program. That report, which was refuted later in the week to no avail by ECB Vice President Constancio, created a tizzy on Tuesday that upset the capital markets along with rate-hike talk from Fed officials.

There was already a nervous tone that had carried over from Monday when it was learned the UK plans to invoke Article 50 by the end of March 2017. Doing so will get the ball rolling on its divorce from the European Union.

That news catalyzed a drop in the British pound to a 31-year low, which looked like chump change by the time Friday rolled around and the pound dropped as much as 6% in a move that some considered to be a "flash crash" amid illiquid market conditions. A good portion of that loss was recouped in almost no time, yet the inability of the pound to reclaim all that was lost left the impression that there was some true selling that took place related to concern about the Brexit, which was heightened by some tough talk on the matter from French President Hollande.

If not for the September employment report, the trading action in the British pound would have dominated the market conversation on Friday. Instead, it was the employment data that took command as it seemed to solidify the case for a rate hike from the Fed by the end of the year.

That notion was underpinned by an understanding that nonfarm payrolls increased by 156,000, average hourly earnings growth was up 2.6% year-over-year (and near a seven-year high), and a bump in the unemployment rate to 5.0% was fueled by a jump in the labor force participation rate (a reflection of budding confidence in job prospects).

According to the CME's FedWatch Tool, the probability of a rate hike at the December FOMC meeting increased to 69.5% on Friday from 63.4% on Thursday.

The economic data this week overall generally supported the view of Fed officials calling for a rate hike sooner rather than later. The ISM Index on Monday tipped backed into expansion territory, jumping from 49.4 in August to 51.5 in September, the ISM Non-Manufacturing reading of 51.7 was the highest since last October, and the four-week moving average of 253,500 for weekly initial claims was the lowest since December 8, 1973.

Fittingly, a curve steepening trade took root, with the back end of the Treasury curve bearing the brunt of selling interest. That steepening, which bodes well for the earnings prospects for banks, contributed to a noticeable measure of relative strength in the bank stocks.

The SPDR S&P Bank ETF (KBE) increased 2.5% for the week, trading right through the headline volatility pertaining to Deutsche Bank's (DB) capital position and Wells Fargo's (WFC) fraudulent account openings. The S&P 500 financial sector for its part ended the week 1.5% higher.

The next best-performing sector was the energy sector, which was basically unchanged for the week despite oil prices eclipsing $50.00 per barrel at one point before settling the week up 2.7% at $49.55 per barrel.

A strengthening dollar acted as a headwind on the dollar-denominated commodity space, which featured a sharp sell-off in precious metal prices that was also a byproduct of crowded long positions being unwound and rising interest rates. For the week, gold prices fell 4.4% to $1258.60/troy ounce while silver prices declined 8.5% to $17.58/troy ounce.

Speaking of headwinds, Hurricane Matthew made headlines all week as it barreled toward the east coast of Florida as a Category 4 hurricane. It lost some steam fortunately as it moved northward, yet as a downgraded Category 2 storm it is still causing havoc for coastal areas in the southeast as of this writing and is expected to continue to do so through the weekend.

The next presidential debate on Sunday will certainly be a talking point -- and maybe a trading point -- come Monday morning. However, the path of long-term rates, the behavior of currency markets, and the third quarter earnings reporting period, which kicks up next week, should create plenty of trading interest on their own account.

As a reminder, the Treasury market will be closed Monday for Columbus Day while the stock market will be open for a full day of trading.

Index Started Week Ended Week Change % Change YTD %
DJIA 18308.15 18240.49 -67.66 -0.4 4.7
Nasdaq 5312.00 5292.40 -19.60 -0.4 5.7
S&P 500 2168.27 2153.74 -14.53 -0.7 5.4
Russell 2000 1251.65 1236.56 -15.09 -1.2 8.9

4:16 pm Closing Market Summary: Stocks End Flat with Rates and Employment Data in Focus (:WRAPX) :

The stock market finished a range bound week on a relatively flat note as investors pored over the Employment Situation Report for September. Interest rate volatility remained at the forefront as participants assessed an evolving fed funds rate hike picture and further Brexit shocks from across the pond. The Nasdaq Composite (-0.3%) settled in-line with the S&P 500 (-0.3%) and slightly behind the Dow Jones Industrial Average (-0.2%).

Long-term interest rates struggled for direction as a mixed reading from the September employment report shifted the U.S. rate hike outlook. Headline nonfarm payrolls increased by 156,000 (Briefing.com consensus 176k) while August's reading was revised to 167,000 from 151,000. Furthermore, average hourly earnings increased by 0.2% (Briefing.com consensus +0.2%), which could pave the way to an increase in inflation expectations. Average hourly earnings growth also registered the largest year-over-year increase in several years.

The fed funds futures market responded by discounting the odds of a November rate hike and improving the outlook for a December hike. The implied probability of an interest rate hike at the December meeting increased to 69.5% from 63.4% in the prior session. Rate hike odds also improved as participants assessed remarks from Cleveland Fed President Mester (an FOMC voter) and Fed Vice Chair Fischer. President Mester stated that the employment report appeared consistent with her expectations while Mr. Fischer called the reading a "Goldilocks number."

The benchmark index finished in the middle of its trading range, testing technical resistance near the 2155 price level. Nine sectors ended in the red with materials (-1.8%), industrials (-1.2%), and consumer discretionary (-0.4%) acting as notable laggards. On the flipside, financials (+0.1%) and health care (+0.1%) settled in positive territory.

In the heavyweight industrials sector (-1.2%), Honeywell (HON 106.94, -8.67) tumbled 7.5% after projections for its third and fourth quarter fell short of analyst estimates. Meanwhile, Dow component United Technologies (UTX 100.58, -1.50) finished at the bottom of the price-weighted average as it moved lower in sympathy with the name. The broader sector declined 1.4% this week, which compares to a loss of 0.7% in the benchmark index.

The Dow Jones Transportation Average (-0.9%) displayed relative weakness as airlines trimmed their weekly advance. The U.S. Global Jets ETF (JETS 23.09, -0.35) declined by 1.5%, erasing its weekly gain.

In the consumer discretionary space (-0.4%), retail names outperformed, evidenced by the 0.1% loss in the SPDR S&P Retail ETF (XRT 43.85, -0.03). In the ETF, Gap (GPS 26.25, +3.47) displayed relative strength after comparable store sales for September came in better than feared. The stock was also upgraded to "Hold" from "Sell" at Deutsche Bank. The discretionary space finished the week lower by 0.4%.

Property and casualty insurers led in the financial sector (+0.1%) as Dow component Travelers (TRV 114.53, +1.35) jumped 1.2%. The sub-group rebounded after Hurricane Matthew avoided a direct hit to Florida's east coast last evening. Banking names also continued their recent winning streak as the SPDR S&P Bank ETF (KBE 34.22, +0.03) extended its weekly gain to 2.1%. The broader sector advanced 1.5% this week.

Treasuries ended on a mostly higher note as the long end of the curve underperformed. The yield on the 2-yr note slipped two basis points (0.83%) while the yield on the 10-yr note declined one basis point (1.73%). The spread between the 2-yr and 10-yr note has expanded to 90 basis points from 83 basis points last Friday.

Today's participation was above the recent average as more than 929 million shares changed hands at the NYSE floor.

Today's economic data included the Employment Situation Report for September, the Wholesale Inventory Report for August, and Consumer Credit for August:

Nonfarm payrolls increased by 156,000 (Briefing.com consensus 176,000). Job gains have averaged 178,000 per month so far this year versus an average of 229,000 per month in 2015. August nonfarm payrolls revised to 167,000 from 151,000 July nonfarm payrolls revised to 252,000 from 275,000 Private sector payrolls increased by 167,000 (Briefing.com consensus 171,000) August private sector payrolls revised to 144,000 from 126,000
July private sector payrolls revised to 221,000 from 225,000
Unemployment rate was 5.0% (Briefing.com consensus 4.9%) versus 4.9% in August

Persons unemployed for 27 weeks or more accounted for 24.9% of the unemployed versus 26.1% in August

September average hourly earnings were up 0.2% (Briefing.com consensus +0.2%) after being up 0.1% in August Over the last 12 months, average hourly earnings have risen 2.6% versus 2.4% for the 12-month period ending in August
The average workweek was up 0.1 to 34.4 hours (Briefing.com consensus 34.4)

September manufacturing workweek was up 0.1 hour to 40.7 hours
Factory overtime was unchanged at 3.3 hours

The labor force participation rate was 62.9% versus 62.8% in AugustWholesale inventories declined 0.2% month-over-month in August (Briefing.com consensus -0.1%) following a downwardly revised 0.1% decline (from 0.0%) in June.

Wholesale sales were up 0.7% on the heels of a downwardly revised 0.6% decline (from -0.4%) in July.

Total outstanding consumer credit increased by $25.8 billion in August (Briefing.com consensus $18.0 billion) after increasing an upwardly revised $17.8 billion (from $17.7 billion) in July.
For more on these economic releases, be sure to visit Briefing.com's Economic Calendar page.

There is no economic data of note scheduled to be released on Monday.


The stock market was on the defensive today as participants evaluated an Employment Situation Report for September that seemed likely to have the Federal Reserve on track for a December rate hike. Other factors impacting today's trade included rising long-term rates and relative weakness in the heavily-weighted materials (-1.9%) sector.

Equities stumbled at the start of the session as participants weighed the potential rate hike implications of the September employment report. The report showed solid job growth and also contained some encouraging news on average hourly earnings growth. Headline nonfarm payrolls rose by 156,000 while average hourly earnings increased by 0.2%. The Fed will be particularly interested in average hourly earnings as the 2.6% year-over-year increase is close to the highest it has been over the last seven years.

The fed funds futures market responded by further discounting the odds of an interest rate hike at the November meeting and increasing the probability of a hike in December. The implied probability of an interest rate hike in December has increased to 65.9% from 63.4% in the prior session. Fed funds futures have also enjoyed some jawboning from Cleveland Fed President Mester (an FOMC voter) and Fed Vice Chair Fischer. President Mester indicated that the September employment report was consistent with her expectations while Mr. Fischer called the reading a "Goldilocks number."

Market data today included the consumer credit report which shower total outstanding consumer credit increased by $25.8 billion in August after increasing an upwardly revised $17.8 billion (from $17.7 billion) in July. The key takeaway from the report is that consumer credit -- both revolving and nonrevolving -- continues to expand, which is a supportive element for the U.S. economy. In addition to nonfarm payrolls, private sector payrolls increased by 167,000 and the unemployment rate was 5.0% versus 4.9% in August. Also, the labor force participation rate was 62.9% versus 62.8% in August, and wholesale inventories declined 0.2% month-over-month in August following a downwardly revised 0.1% decline (from 0.0%) in June.

The first week of October, and the fourth quarter, ended lower, but off intraday lows. Weakness following the jobs report took the Dow Jones Industrial Average 113 points down at one point, but the index recovered to close the day -28.01 points (-0.15%) to 18240.49. The worst performing index today was the S&P 500, which lost 7.03 points (-0.33%) to 2153.74, and the Nasdaq Composite finished in between the two, shedding 14.45 points (-0.27%) to 5292.40. This week's moves take the three major US indices +4.7%, +5.4% and +5.7% YTD, respectively.

Middle of the pack as far as S&P sectors go, once again, was the Technology (XLK 47.62, -0.13 -0.27%) sector. Component First Solar (FSLR 37.58, -2.17 -5.46%) was the worst performer today as the stock was downgraded in the premarket session to a Neutral rating from a Buy at Goldman. Other sectors as measured by the S&P ended Friday XLFS +0.06%, XLV -0.07%, XLF -0.10%, XLU -0.13%, XLRE -0.26%, XLP -0.27%, IYZ -0.41%, XLY -0.45%, XLE -0.58%, XLI -1.29%, XLB -1.86% as all but Financial Services lagged.

In the S&P 500 Information Technology (800.80, -1.87 -0.23%) sector, trading was lower all session, but ended off intraday lows and held above the $800-level. Component Oracle (ORCL 38.71, -0.01 -0.03%) ended just lower as the stock was volatile today following the extension of the tender offer for the acquisition of NetSuite (N 105.19, -4.10 -3.75%). Other names in the space which held onto modest weakness through the close included GPN -3.76%, ADS -2.39%, ACN -2.13%, CTSH -1.68%, EBAY -1.59%, TSS -1.50%, CSRA -1.47%, TEL -1.34%, INTU -1.28%.

Other notable news items among sector components:

Oracle (ORCL) extended the expiration of its tender offer for the acquisition of NetSuite (N) to Friday, November 4, 2016. This will be the final extension that ORCL is obligated to make under the merger agreement. In the event that a majority of N's unaffiliated shareholders do not tender sufficient shares to reach the minimum tender condition, ORCL will respect the will of N's unaffiliated shareholders and terminate its proposed acquisition. American Stock Transfer & Trust Company LLC, the depositary for the tender offer, has indicated that as of 12:00 Midnight, Eastern time, at the end of October 6, 2016, about 4,568,498 unaffiliated Shares, or 11.2% of the total unaffiliated Shares, and 45,084,266 total Shares, or 55.3% of the total Shares issued and outstanding, have been tendered into and not properly withdrawn from the tender offer. Both figures include 293,328 Shares tendered pursuant to the guaranteed delivery procedures set forth in the Offer to Purchase.

Yahoo! (YHOO 43.22, -0.46 -1.05%) ticked lower in following a NYPost report that Verizon (VZ 49.92, -0.34 -0.68%) was seeking to have its purchase price for YHOO lowered amid its recent privacy hiccups.

Parkervision (PRKR 4.27, +0.07 +1.67%) filed a patent infringement complaint against Apple (AAPL 114.06, +0.17 +0.15%) in Germany; the accused products include the iPhone 6, iPhone 6s, and the iPad Air 2.

Elsewhere in the tech space:

The FCC released new reforms for data centers to promote investment in the business data services market. Specifically, Chairman Tom Wheeler announced small business would pay lower prices for high-capacity data and voice connections regarded as special access lines.

GoDaddy's (GDDY 35.48, +0.38 +1.08%) Chief Accounting Officer Matthew Kelpy resigned effective Sept. 30, and will serve as principal accounting office through Dec. 31, 2016.

Arris (ARRS 29.65, +1.88 +6.77%) entered into a Warrant and Registration Rights Agreement with Charter Communications (CHTR 266.97, -1.20 -0.45%) pursuant to which Charter may purchase up to 6 million of ARRS's ordinary shares.

Acacia Communications (ACIA 100.00, -9.42 -8.61%) priced a public offering of 4.5 million shares of its common stock at $100 per share.

Angie's List (ANGI 9.15, -0.42 -4.39%) announced that, effective yesterday, Thomas Evans was elected Chairman of the Board, replacing John Chuang, who resigned from his position as director and Chairman, effective October 3, 2016. In addition, ANGI announced Steven Kapner, director, has stepped down from the Board, also effective on October 3, 2016. In connection with the resignations, the Board has been reduced in size to 10 members from 12.

Vodafone (VOD 28.21, -0.34 -1.19%) India has acquired spectrum in all its key telecom circles in the spectrum auction for a total cost of INR 202.8 billion (2.74 billion). The new spectrum significantly enhances the coverage, capacity and speed of Vodafone India's 4G data services in its key circles, complementing existing high-quality 2G and 3G voice and data capabilities.

Avnet's (AVT 42.59, +0.01 +0.02%) deal to acquire Premier Farnell was cleared by the EU.

Analyst actions:

RUN was upgraded to Buy from Neutral at Goldman,
VSLR was upgraded to Neutral from Sell at Goldman,
KLAC was upgraded to Buy from Hold at Needham;
SEDG was downgraded to Sell from Neutral at Goldman,
FSLR was downgraded to Neutral from Buy at Goldman;
AMD was initiated with an Equal Weight at Barclays,
ZG was initiated with a Buy at Needham,
FISV was initiated with a Hold at Cantor Fitzgerald,
FIS was initiated with a Buy at Cantor Fitzgerald,
TERP was initiated with a Hold at Deutsche Bank,
FLIR was initiated with a Buy at Seaport Global Securities,
PTC was initiated with a Buy at Brean Capital

[ReturntoSender]

From Briefing.com: 4:15 pm : The major averages began the week on a higher note, aided by a rebound in European markets, a rally in crude oil futures, and the outperformance of market heavyweight Apple (AAPL 116.06, +2.00). The Nasdaq Composite (+0.7%) settled ahead of both the Dow Jones Industrial Average (+0.5%) and the S&P 500 (+0.5%).

Long-term interest rate concerns shifted out of focus slightly as thin trading conditions and a holiday closure for the U.S. bond market kept a lid on recent rate angst. Today's action was largely headline driven as positive commentary from oil figures and specific company catalysts led to a higher start to the week. Investors also looked ahead to the start of the third quarter earnings reporting season. Alcoa (AA 31.51, +0.14) will kick things off when the company reports quarterly results ahead of Tuesday's open.

Crude oil extended its recent winning streak after Russian President Vladimir Putin signaled that he supports freezing or even cutting Russian oil production. The commentary comes on the heels of OPEC's recently-proposed output cap. Elsewhere, Saudi Arabia's oil minister also contributed to the positive bias when he suggested that oil prices could reach $60.00/bbl before the end of the year. WTI crude finished the day higher by 3.1% ($51.32/bbl, +$1.56).

The major averages carved out session highs in the first hour of trade, yet buying interest tapered off in a slow, steady fashion during the remainder of the session.

All 11 sectors finished with a gain. The energy (+1.5%), utilities (+0.8%), and technology (+0.7%) sectors led the advance. The industrials sector (+0.02%) brought up the rear, held back by an earnings warning from Dover (DOV 66.69, -5.55), which followed on the heels of Honeywell's (HON 106.80, -0.14) profit warning on Friday.

In the technology space (+0.8%), Apple (AAPL 116.06, +2.00) outperformed after Samsung opted to provisionally adjust its Galaxy 7 smartphone production schedule. The company is seeking to better control quality and safety standards. Meanwhile, Twitter (TWTR 17.56, -2.29) was a story stock throughout the day as various reports highlighted waning takeover interest in the company. The social media name tumbled 11.5% on the news, but finished off its session low. Late headlines indicated Twitter could still be acquired, but most likely only at a lower price level.

The economically-sensitive financial sector (+0.5%) outperformed as the fed funds futures market continued to price in a higher probability (now 70%) of a rate hike at the December FOMC meeting. Participants will look for further clues regarding the rate hike picture when the FOMC Minutes from the September 21 meeting cross the wires at 2:00 p.m. ET on Wednesday.

Biotechnology ended ahead of the broader health care space (+0.4%), evidenced by the 1.4% gain in the iShares Nasdaq Biotechnology ETF (IBB 288.07, +3.97). Mylan (MYL 38.87, +2.93) surged 8.2% after announcing that it settled claims related to the misclassification of its EpiPen device under the Medicaid rebate program. Mylan agreed to pay $465 million to resolve all potential liability claims by federal and state governments. Separately, Bristol Myers (BMY 49.81, -5.62) plunged 10.1% after Merck's (MRK 63.90, +1.13) Keytruda medication beat out its competing treatment.

The PHLX Semiconductor Index (-0.5%) erased an early gain as Qualcomm (QCOM 67.25, -0.94) ended lower by 1.4%.

The U.S. bond market was closed in observance of Columbus Day. The 10-yr yield settled at 1.72% last Friday.

Today's participation was below the recent average as fewer than 667 million shares changed hands at the NYSE floor.

With the bond market closed today, there were no economic releases. There aren't any major economic releases on Tuesday's economic calendar either.

Russell 2000: +10.1% YTD
Nasdaq Composite: +6.4% YTD
S&P 500: +5.9% YTD
Dow Jones +5.2% YTD

DJ30 +88.55 NASDAQ +36.27 SP500 +9.92 NASDAQ Adv/Vol/Dec 1987/1.252 bln/838 NYSE Adv/Vol/Dec 2104/666.4 mln/823

3:30 pm :

The dollar index was +0.4% around the 96.93 level, did not appear to affect precious metals
Commodities, as measured by the Bloomberg Commodity Index, were +1.3% around the 86.76 level
Crude oil erased all of Friday's losses, ended near 1-year highs after comments surface from Saudi Arabia & Russia ahead of this week's informal meeting in Istanbul
November crude oil futures rose $1.56 (+3.1%) to $51.32/barrel
Contributing factors affecting the price of oil include:
Today's strength in oil can be largely attributed to comments from Saudi Arabia's energy minister Khalid Al Falih, who suggested oil could rise to $60/barrel by the end of the year. Al Falih also made comments that were optimistic about the potential for a production cut by November.
Note that Al Falih has made similar comments in the past. Back in June he said $60 oil was "very possible" by the end of the year.
Oil initially weakened overnight as it became apparent that neither Iran nor Iraq would be attending the informal meeting, but oil has since recovered all of these losses and crude oil surged to close near 1-year highs today.
It is also worth noting that Russia's oil minister has expressed they will not be committing to a production cut at this meeting in Istanbul.
The next official OPEC meeting is scheduled to take place in Vienna, Austria on November 30.
Data reminders:
Monthly IEA data will be released tomorrow.
API data will be released tomorrow after the bell.
Weekly EIA petroleum data will be released Wed at 10:30 am ET.
Baker Hughes rig count data will be released this Friday at 1 pm ET.
Natural gas saw gains for the third consecutive session ahead of Thursday's EIA data
November natural gas closed $0.07 higher (+2.2%) at $3.27/MMBtu
Weekly EIA natural gas data will be released Thursday at 10:30 am ET.
In precious metals, gold & silver rallied despite continued strength in the dollar index, the gold:silver ratio extended Friday's decline
December gold ended today's session up $7.90 (+0.6%) to $1260.30/oz
December silver closed today's session $0.27 higher (+1.6%) at $17.67/oz
The gold:silver ratio was ~71.3 compared to Friday's pit trading close ratio of ~72.0
Base metal copper finished pit trading near session highs after 3 previous sessions of nearly directionless trading
December copper closed $0.04 higher (+1.9%) at $2.20/lb

Equity indices charged out of the gate, building off a positive bias in global markets. China's Shanghai Composite (+1.5%) outperformed as the index resumed trading following last week's holiday closure. Across the pond, banking names remained in focus as a rebound in shares of Deutsche Bank (DB 13.90, +0.26 +1.91%) aided a similar recovery in regional bourses. Participants initially expressed misgivings after the German lender failed to reach a settlement with the U.S. Department of Justice over the weekend.

An upswing in the commodity complex has also buttressed today's move higher. Crude oil futures have jumped 2.9% ($51.25/bbl; +$1.45) after headlines indicated that Russian President Vladimir Putin supports joining OPEC in a production cap agreement. The Russian leader also indicated that the country may be willing to cut production. Separately, Saudi Arabia's oil minister signaled that oil prices may reach $60.00/bbl before the end of the year. At the end of trading, November crude oil futures were up $1.56 (+3.1%) to $51.32/barrel.

The first half of trade quieted down after the opening hour, which is not too surprising considering banks and the bond market are closed in observation of Columbus Day.

The market closed Monday higher, rebounding off Friday's weakness. The Nasdaq Composite led all others, up 36.27 points (+0.69%) to 5328.67 as Nasdaq 100 components like MYL +8.2%, AAL +3.1%, CTRP +2.3%, TSLA +2.2% and TMUS +1.9% were all strong. The Dow Jones Industrial Average added 88.55 points (+0.49%) to 18329.04, and the S&P 500 was also strong, higher by 9.92 points (+0.46%) when the day was finished to 2163.66.

Technology (XLK 47.95 +0.33 +0.69%) was one of the better performing S&P sectors today. Component Salesforce.com (CRM 75.10, +4.19 +5.91%) was again tossed around as still holding interest in a deal to acquire Twitter (TWTR 17.56, -2.29 -11.54%), but no definitive deal has been announced. Other sectors as measured by the S&P closed Monday XLE +1.54%, IYZ +1.08%, XLU +0.83%, XLB +0.60%, XLRE +0.55%, XLFS +0.52%, XLF +0.51%, XLV +0.46%, XLY +0.15%, XLI +0.10%, XLP +0.00% as Energy led.

In the S&P 500 Information Technology (806.31, +5.51 +0.69%) sector, trading ended just off highs. Component First Solar (FSLR 38.58, +1.00 +2.66%) was also strong today following news out that the company had commissioned the 52.5 megawatt (MW) AC Shams Ma'an project in the Hashemite Kingdom of Jordan, on schedule. Other names in the space which closed higher today included LRCX +1.79%, AAPL +1.75%, GOOGL +1.68%, YHOO +1.62%, GOOG +1.40%, ACN +1.26%, KLAC +1.20%, TDC +1.12%, EA +1.11%, EBAY +1.04%.

Other notable news items among sector components:
Adobe Systems' (ADBE 109.24, +0.60 +0.55%) Chief Accounting Officer, Richard Rowley, notified ADBE of his intention to resign. Rowley expects to remain in his role until January 31.

First Solar (FSLR) commissioned the 52.5 megawatt (MW) AC Shams Ma'an project in the Hashemite Kingdom of Jordan, on schedule.

AudioEye (AEYE 0.13, flat) announced a collaboration with ADP (ADP 87.77, +0.40 +0.46%) to further enrich the user experience of ADP's human capital management solution by making it digitally accessible to clients with employees with disabilities.

According to Reuters, EU officials will not investigate Alphabet's (GOOG 785.94, +10.86 +1.40%) tax deals in Europe.

According to Bloomberg, potential bidders (Disney, Alphabet's Google, Salesforce.com) have lost interest in acquiring Twitter (TWTR).

According to The Information, Salesforce.com (CRM) tried to get lobbying efforts to impact regulators' decision regarding Microsoft (MSFT 58.04, +0.24 +0.42%) / LinkedIn (LNKD 190.71, -0.47 -0.25%) M&A deal.

Elsewhere in the tech space:

Twilio (TWLO 52.02, -8.56 -14.13%) filed for a $400 million offering of common stock by it and various selling shareholders.

MobileIron (MOBL 3.57, +0.88 +32.71%) raised its Q3 revenue guidance to $41-42 million from $39-41 million and billings guidance to $46.5-47.5 million, up from $43-45 million.

Twitter (TWTR) in late trade made highs after Fox Business contributor, Charlie Gasparino, suggested there still may be some interest for TWTR, but that the 'magic number' will be between $14-15 per share. TWTR also reported live streaming results of week 5 of Thursday Night Football were up 19% compared to last week.

Mentor Graphics (MENT 27.17, +0.70 +2.64%) acquired Galaxy Semiconductor. Financial terms of the deal were not disclosed.

NICE (NICE 66.98, +0.41 +0.62%) promoted Beth Gaspich to Chief Financial Officer.

Radware (RDWR 12.59, -0.56 -4.26%) lowered its Q3 EPS and revenue guidance to $0.04 and about $47 million, respectively.

Implant Sciences (IMSC 0.11, -0.23 -67.39%) sold the explosives trace detection assets to L-3
Communications (LLL 151.05, -0.55 -0.36%) for $117.5 million in cash, plus the assumption of specified liabilities, and announces filing voluntary petitions under Chapter 11.

Trimble (TRMB 28.60, +0.13 +0.46%) sold its unmanned aircraft system business to Delair-tech. Financial terms of the deal were not disclosed. The company subsequently entered into alliances for Delair-Tech and Microdrones to become preferred providers of fixed-wing and multiroter UAS solutions.

Analyst actions:

STM was upgraded to Outperform from Neutral at Robert W. Baird,
MENT and CDNS were upgraded to Buy from Neutral at DA Davidson;
APIC was downgraded to Mkt Perform from Mkt Outperform at JMP Securities;
NFLX was initiated with a Sell at Deutsche Bank,
FSLR was initiated with a Neutral at Piper Jaffray,
AEHR was initiated with a Buy at Craig Hallum

[ReturntoSender]

From Briefing.com: 4:25 pm : The stock market ended Tuesday's session on a sharply lower note as equities endured a broad-based selloff, paced by technical selling and residual concerns related to a strengthening dollar, rising long-term rates, and valuations entering the third-quarter earnings reporting season. The Russell 2000 dropped 1.9% while the Nasdaq Composite finished lower by 1.5% and the S&P 500 ended down 1.2%.

The major averages stumbled out of the gate as buyers remained sidelined by some disappointing news on the earnings front.

Alcoa (AA 27.91, -3.60) came under pressure as a weaker-than-expected revenue outlook for its Arconic segments overshadowed an in-line earnings result for its third quarter. Illumina (ILMN 138.99, -45.86) was also in focus after issuing a warning after Monday's close that third quarter and fourth quarter revenue will be below analysts' consensus estimates.

In turn, the U.S. dollar showed some noticeable strength today, which came largely at the expense of the euro and the British pound, which declined 0.8% and 2.3%, respectively, against the greenback. The unnerving action there served as another deterrent for buyers.

At the same time, the dollar's strength created some angst about earnings prospects for U.S. multinational companies and the economic prospects for emerging markets. The iShares MSCI Emerging Markets ETF (EEM 37.22, -0.88) declined 2.3%, dragged lower by its exposure to Samsung Electronics (SSNLF), which is the second largest holding in the ETF, and worries that a stronger dollar, among other things, will make it more expensive for companies in emerging markets to repay dollar-denominated debt.

Samsung Electronics shocked its investors Tuesday with an announcement that it will be discontinuing production and sales of its Galaxy Note 7, which has been plagued by overheating issues and battery fires that have created safety concerns and a PR mess for the company.

Long-term interest rates were also on the rise as the U.S. Treasury market opened for trading again after the Columbus Day holiday. The long end of the curve underperformed at the start as the yield on the benchmark 10-yr note jumped to 1.78% (+6 bps). The 10-yr yield would pull back slightly, settling the day higher by four basis points (1.76%).

The Tuesday retreat continued up to the final hour as the S&P 500 (-1.2%) struggled to find its bearings. The benchmark index violated technical support at 2150 and 2144 before testing and breaching its 100-day simple moving average (2138.51). Prospective buyers were thought to be a bit skittish after the S&P 500 (-1.2%) tested, but failed to hold above its 50-day simple moving average (2166.18) on Monday.

A downturn in crude oil futures also dampened risk appetite. The energy component finished its day modestly lower after the head of Rosneft, Russia's largest oil producer, walked back expectations for the country to freeze or cut oil production. The International Energy Agency further added to selling interest when it reported that the global oil supply increased by 0.6 million barrels per day in September. WTI crude finished the day lower by 1.2% ($50.71/bbl, -$0.61).

All 11 S&P 500 sectors finished in the red with health care (-2.5%), materials (-1.3%), utilities (-1.2%), technology (-1.2%), and consumer discretionary (-1.1%) leading the retreat.



Biotechnology underperformed and the iShares Nasdaq Biotechnology ETF (IBB 277.00, -11.07) fell 3.8%. The sub-group moved lower in response to the revenue warning from Illumina (ILMN 138.99, -45.86).

In the broader health care sector (-2.5%), medical equipment names underperformed after St. Jude Medical (STJ 78.41, -2.87) issued a medical device advisory for its ICD and CRT-D devices. Abbott Labs (ABT 41.16, -2.34), which is in the process of acquiring St. Jude Medical, finished lower by 5.4%.

The high-beta chipmakers displayed relative weakness after the aforementioned Samsung (SSNLF) announcement. Samsung supplier Integrated Device (IDTI 21.05,-1.00) finished at the bottom of the PHLX Semiconductor Index (-2.1%), falling 4.6%.

In the influential technology sector (-1.2%), top-weighted Apple (APPL 116.30, +0.25) outperformed as Samsung's troubles are seen as an opening for Apple to pick up market share in the smartphone market. Salesforce.com (CRM 72.42, -2.68) for its part declined 3.6% after reports indicated the company may still bid on Twitter (TWTR 18.00, +0.44).

Today's participation was below the recent average as more than 811 million shares changed hands at the NYSE floor.

Investors did not receive any economic data of note today.

Tomorrow's economic data will include the 7:00 a.m. ET release of the weekly MBA Mortgage Index. Separately, the Department of Energy will release its latest inventory report at 10:30 a.m. ET while the Federal Reserve will release the minutes from its September 20-21 FOMC meeting at 2:00 p.m. ET.

Russell 2000: +8.1% YTD
Nasdaq Composite: +4.8% YTD
S&P 500: +4.5% YTD
Dow Jones: +4.0% YTD

DJ30 -200.38 NASDAQ -81.89 SP500 -26.93 NASDAQ Adv/Vol/Dec 469/1.662 bln/2423 NYSE Adv/Vol/Dec 381/810.6 mln/2606 3:30 pm :

The dollar index extended this morning's gains, was +0.8% around the 97.68 level, weighed on precious metals
Commodities, as measured by the Bloomberg Commodity Index, -0.7% around the 86.18 level
Crude oil retreated from yesterday's 1-year highs following the IEA's monthly report which showed a lowered demand growth forecast for the second consecutive month
November crude oil futures fell $0.61 (-1.2%) to $50.71/barrel
IEA data highlights:
IEA lowered their FY16 global oil demand growth forecast for the second consecutive month to +1.2 mln barrels/day, compared to last month's forecast for +1.3 mln barrels/day.
The FY17 demand growth estimate remains unchanged from the previous monthly report at +1.2 mln barrels/day.
IEA sees the oil market re-balancing sooner than after the first half of 2017, if OPEC follows through with the proposed production cuts announced in Algiers,Algeria.
OPEC pumped a record high of about 33.64 mln barrels/day in Sept as Iran, Nigeria, & Libya increased production; all three countries are exempt from the recently announced OPEC production cut.
IEA noted as a result, that larger production cuts would have to be made by other OPEC members to meet the desired overall OPEC production level.
Data reminders:
Weekly EIA petroleum data will be released tomorrow at 10:30 am ET.
Rig count data will be released Friday at 1 pm ET.
API data will be released today after the bell.
Natural gas ended near session lows ahead of Thursday's inventory number
November natural gas closed $0.03 lower (-0.9%) at $3.24/MMBtu
Weekly EIA natural gas data will be released Thursday at 10:30 am ET.
In precious metals, gold's decline is outpaced by the drop in silver; the gold:silver ratio snapped its 2-session loss-streak
December gold ended today's session down $4.50 (-0.4%) to $1255.80/oz
December silver closed today's session $0.17 lower (-1.0%) at $17.50/oz
The gold:silver ratio was ~71.8 compared to yesterday's pit trading close price of ~71.3

The major averages slipped at the start of the session as Alcoa's (AA 27.91, -3.60 -11.42%) disappointing revenue outlook for its Arconic division overshadowed a bottom-line beat. Meanwhile, Illumina (ILMN 138.99, -45.86 -24.81%) also soured investor sentiment by warning that third quarter and fourth quarter sales will fall short of consensus estimates. This was the latest warning in a string of warnings from the company.

A downturn in crude oil futures has also helped keep buying interest in check. The International Energy Agency's monthly report indicated that the global oil supply increased by 0.6 million barrels per day in September. A bearish note from Goldman Sachs has also pressured the energy component through the first half of the day. The firm expressed some skepticism regarding Russia's desire to freeze or cut production. On a related note, the head of Rosneft, Russia's largest oil producer, reportedly said today that Rosneft will not be part of an agreement to cut production.

The U.S. Dollar Index (97.66, +0.77 +0.79%) strengthened on a firming in the U.S. rate hike picture. The fed funds futures market currently indicates there is a 70.2% probability of a rate hike at the December FOMC meeting, up from 61.7% at the end of September. The uptick has come on the heels of the Employment Situation Report for September. Investors will continue to asses the rate hike picture when the FOMC releases the minutes from its September 21 meeting tomorrow at 2:00 p.m. ET.

The broader market finished Tuesday trading with losses across the board. The market stepped lower with each moment that passed, eventually ending with the Nasdaq Composite posting the worst affair, lower by 81.89 points (-1.54%) to 5246.79. The S&P 500 lost 26.93 points (-1.24%) to 2136.73, and the Dow Jones Industrial Average shed 200.38 points (-1.09%) to 18128.66. Losses among heavily weighted Nasdaq 100 components INTC -2.0%, MSFT -1.5%, AMZN -1.3%, CMCSA -1.3% and FB -1.0% gave credence to today's decline.

Technology (XLK 47.41, -0.54 -1.13%) was toward the bottom of S&P sectors today, but managed to meander back to the middle of the pack as losses were more steep elsewhere. Component Seagate Tech (STX 35.10, -2.87 -7.56%) was the worst performer following pre-market guidance. Other sectors as measured by the S&P ended Tuesday XLV -2.51%, XLB -1.36%, XLY -1.20%, XLE -1.19%, XLU -1.14%, XLI -1.04%, XLF -1.01%, XLFS -0.96%, IYZ -0.82%, XLRE -0.77%, XLP -0.52%.

In the S&P 500 Information Technology sector (796.83, -9.48 -1.18%), trading returned to the sub-800 mark as broader market weakness pressured the sector. Despite this weakness, component Apple (AAPL 116.35, +0.30 +0.26%) was able to manage modest gains as competitor Samsung's (SSNLF 1350, flat) Galaxy Note 7 smartphone was rumored to be close to a production halt and permanent discontinuation. Names which followed the broader sector, and broader market lower, however, included WDC -4.45%, MU -3.66%, CRM -3.57%, ADSK -2.83%, TDC -2.74%, MCHP -2.64%, JNPR -2.56%, AMAT -2.52%, GPN -2.51%.

Other notable news items among sector components:

Seagate Tech (STX) raised Q1 revenues guidance to $2.8 billion from at least $2.7 billion, and raised non-GAAP gross margin to about 29% from at least 27%. Management noted, the strength in STX's revenue and gross margin for the quarter was driven primarily by better than expected demand for its high capacity enterprise HDD product portfolio.

Yahoo! (YHOO 42.68, -1.24 -2.82%) ticked higher in the after-hours session last night due to Verizon's (VZ 49.90, -0.29 -0.58%) CEO, Lowell McAdam, in CNBC interview commented that NYPost report that it was looking to have its purchase price for YHOO reduced by $1 billion was completely inaccurate. McAdam said the company continues to still see real value in YHOO and that the logic of the merger still makes 'ton of sense'.

Samsung (SSNLF) said it will ask all global partners to stop sales and exchanges of Galaxy Note7 while further investigation takes place. The Wall Street Journal later reported that SSNLF will discontinue the Galaxy Note 7 devices permanently.

Cognizant (CTSH 49.89, -0.56 -1.11%) announced it helped Standard Life, with its 4.5 million customers, implement next-generation IT infrastructure to support business expansion in its Investments and Pensions, and Savings businesses.

Alliance Data Systems (ADS 208.25, -0.53 -0.25%) announced that its LoyaltyOne European-based BrandLoyalty business signed an agreement with Lowes Foods, a major U.S. regional supermarket chain owned by privately-held Alex Lee, Inc.

IBM (IBM 154.79, -2.23 -1.42%) and Siemens Healthineers (SIEGY 115.71, -1.98 -1.68%) announced a five year, global strategic alliance in Population Health Management (PHM). The alliance aims to help hospitals, health systems, integrated delivery networks, and other providers deliver value-based care to patients with complex, chronic and costly conditions such as heart disease and cancer.

FloSports announced new apps available on the Roku and Apple TV (AAPL) platforms. Using the Cisco (CSCO 31.04, -0.43 -1.37%) Infinite Video Platform, FloSports now offers a complete multi-screen experience for the millions of sports fans it serves each month.

3M Health Information Systems, a business of 3M (MMM 169.68, -1.46 -0.85%), and Verily Life Sciences (formerly Google Life Sciences), an Alphabet (GOOG 783.07, -2.87 -0.37%) company, entered into a strategic agreement to develop new population health measurement technology for managing clinical and financial performance.

The U.S. Department of Agriculture has awarded Xerox (XRX 9.76, -0.20 -2.01%) a 10-year, $110M contract for managed print services (MPS) across all USDA agencies. As part of the agreement, Xerox will install and support up to 16,000 Xerox ConnectKey-enabled printers and multifunction devices at more than 3,000 USDA sites around the globe.

Accenture (ACN 116.97, -0.49 -0.42%) announced a collaboration with SAP SE (SAP 88.61, -1.48 -1.64%) to develop the next generation of predictive analytics solutions for asset management in the utilities industry to enable condition-based maintenance.

Elsewhere in the tech space:

MGT Capital Investments (MGT 2.50, +0.71 +39.66%) updated shareholders on its pending acquisition of D-Vasive and Demonsaw. As previously disclosed on September 20, 2016, the NYSE MKT informed the company that it would not approve for listing on the Exchange the 43.8 million shares required to be issued to complete the closing of the D-Vasive merger. Since that time, the company has had discussions and negotiations with all parties involved, in an effort to reach a revised agreement on acceptable terms. Specifically, MGT plans to terminate the current Asset Purchase Agreement with D-Vasive. However, it has reached tentative agreements with John McAfee and Eric Anderson to execute employment agreements as CEO and Chief Technology Officer, respectively. In addition, MGT reached a tentative agreement to exclusively license or acquire the Demonsaw source code and technology platform from D-Vasive. MGT believes that such a revised deal structure would be acceptable under NYSE MKT rules.

Progress Software's (PRGS 27.37, -0.33 -1.19%) CEO, Phil Pead, is retiring. The company appointed Yogesh Gupta to replace him, and also reaffirmed Q4 guidance of adjusted revenues of $123-126 million and adjusted EPS of $0.55-0.58 per share.

JinkoSolar Holding (JKS 16.55, -0.24 -1.43%) to sell its Jinko Power downstream business in China for $250 million in cash.

CGI Group (GIB 47.00, -0.98 -2.04%) received a task order contract worth up to $824 million through 10 years for financial management shared services across the U.S Federal Government.

Analyst actions:

TWTR was upgraded to Hold from Sell at Evercore ISI,
STX was upgraded to Neutral from Underweight at JP Morgan and to Buy from Hold at The Benchmark Company,
VIAV was upgraded to Overweight from Neutral at JP Morgan,
FNSR was upgraded to Buy from Neutral at Goldman,
CARB was upgraded to Outperform from Perform at Oppenheimer;
LITE was downgraded to Sell from Neutral at Goldman,
APPS was downgraded to Hold from Buy at Craig Hallum;
GRUB was initiated with a Neutral,
AMSC with a Buy at Roth Capital,
EVBG was initiated with an Outperform at Credit Suisse, a Buy at Stifel, BofA/Merrill and Canaccord Genuity, an Outperform at William Blair, and an Overweight at Pacific Crest

I think this recall helps out the suppliers for Samsung. Even discontinuing the Note 7 is not too big a negative as Samsung will still have many buyers of other products. I have a Note 5 and love it but really I use the stylus next to never. I like the big screen and usually find I can get answers from the phone faster than from my computer. RtS

[ReturntoSender]

From Briefing.com: 4:22 pm Advanced Micro beats by $0.02, beats on revs; guides Q4 revs in-line (AMD) :

Reports Q3 (Sep) earnings of $0.03 per share, $0.02 better than the Capital IQ Consensus of $0.01; revenues rose 23.2% year/year to $1.31 bln vs the $1.21 bln Capital IQ Consensus.

Gross margin was 5 percent, down from 31 percent from the previous quarter due to a $340 million charge related to the 6th amendment to the Wafer Supply Agreement with GLOBALFOUNDRIES. Non-GAAP gross margin of 31 percent was flat quarter-over-quarter.

Co issues in-line guidance for Q4, sees Q4 revs of $1.03-1.11bln (Down 21-15%) vs. $1.06 bln Capital IQ Consensus Estimate; expects non-GAAP gross margin to be approximately 32%; expects inventory to decline to approximately $660 million

4:21 pm Celestica beats by $0.13, beats on revs; guides Q4 EPS in-line, revs in-line (CLS) :

Reports Q3 (Sep) earnings of $0.43 per share, excluding a net benefit of $0.11 per share related to income taxes, $0.13 better than the Capital IQ Consensus of $0.30; revenues rose 10.0% year/year to $1.55 bln vs the $1.52 bln Capital IQ Consensus.

Operating margin of 3.8%, above the previously provided mid-point of expectations of 3.6%, and consistent with the third quarter of 2015.Co issues in-line guidance for Q4, sees EPS of $0.29-0.35, excluding non-recurring items, vs. $0.32 Capital IQ Consensus Estimate; sees Q4 revs of $1.5-1.6 bln vs. $1.55 bln Capital IQ Consensus Estimate.Co expects a negative $0.09 to $0.14 per share (pre-tax) aggregate impact on net earnings on an IFRS basis for employee stock-based compensation expense, amortization of intangible assets (excluding computer software) and restructuring charges.

4:17 pm KLA-Tencor beats by $0.12, beats on revs (KLAC) :

Reports Q1 (Sep) earnings of $1.16 per share, $0.12 better than the Capital IQ Consensus of $1.04; revenues rose 16.8% year/year to $751 mln vs the $734.59 mln Capital IQ Consensus.Co will guide shortly.

4:16 pm Microsoft flirting with all time/late 1999 highs at the 60 level in the after hours after convincingly beating Q1 estimates (MSFT) : QQQ

4:12 pm Microsoft beats by $0.08, beats on revs; co will guide on the call (MSFT) :

Reports Q1 (Sep) earnings of $0.76 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.68; adj. revenues rose 3.1% year/year to $22.33 bln vs the $21.69 bln Capital IQ Consensus. Revenue in Productivity and Business Processes grew 6% (up 8% in constant currency) to $6.7 bln vs. $6.4-6.6 bln guidance, with the following business highlights: Office commercial products and cloud services revenue grew 5% (up 8% in constant currency) driven by Office 365 commercial revenue growth of 51% (up 54% in constant currency) Office consumer products and cloud services revenue grew 8% (up 8% in constant currency) and Office 365 consumer subscribers increased to 24.0 mln Dynamics products and cloud services revenue grew 11% (up 13% in constant currency) driven by Dynamics online revenue growth Revenue in Intelligent Cloud grew 8% (up 10% in constant currency) to $6.4 bln vs. $6.1-6.3 bln guidance, with the following business highlights: Server products and cloud services revenue increased 11% (up 13% in constant currency) driven by double-digit annuity revenue growth Azure revenue grew 116% (up 121% in constant currency) with Azure compute usage more than doubling year-over-year
Enterprise Services revenue increased 1% (up 2% in constant currency) with growth in Premier Support Services and consulting offset by declines in custom support agreements
Revenue in More Personal Computing declined 2% (down 1% in constant currency) to $9.3 bln vs. $8.7-9.0 bln guidance, with the following business highlights: Windows OEM revenue was flat year-over-year (flat in constant currency), slightly ahead of the PC market
Windows commercial products and cloud services revenue was flat year-over-year (up 2% in constant currency) driven by annuity revenue
Phone revenue declined 72% (down 71% in constant currency)
Gaming revenue declined 5% (down 4% in constant currency) driven by lower Xbox console revenue offset by higher Xbox software and services revenue
Search advertising revenue excluding traffic acquisition costs grew 9% (up 10% in constant currency) driven by increased revenue per search and search volume
During the quarter, the company announced an 8% increase in its quarterly dividend to $0.39 per share, a new share repurchase program authorizing up to $40 bln in share repurchases, and reaffirmed it is on track to complete its current $40 bln share repurchase program by December 31, 2016.

Microsoft expects to close the acquisition of LinkedIn (LNKD) and the sale of our entry-level feature phone business in the second quarter of fiscal year 2017, subject to regulatory approvals and other closing conditions. Co will guide on the call.

4:09 pm Violin Memory notified by the NYSE that it is below the NYSE's continued listing standard; plans to timely notify the NYSE that it intends to cure the $1.00 per share deficiency (VMEM) :

4:06 pm Maxim Integrated beats by $0.01, reports revs in-line; guides Q2 EPS in-line, revs in-line (MXIM) :

Reports Q1 (Sep) earnings of $0.48 per share, $0.01 better than the Capital IQ Consensus of $0.47; revenues fell 0.2% year/year to $561.4 mln vs the $560.39 mln Capital IQ Consensus.

Cash flow from operations was $123 mln.

The company's 90-day backlog at the beginning of the December 2016 quarter was $371 mln.

Co issues in-line guidance for Q2, sees EPS of $0.40-$0.46 vs. $0.45 Capital IQ Consensus Estimate; sees Q2 revs of $520-$560 mln vs. $540.65 mln Capital IQ Consensus Estimate. Sees gross margin of 63-65%.

4:15 pm : The stock market ended the Thursday affair on a flat note as the latest round of quarterly reports prompted mixed reactions from investors. Global monetary policy was also in focus as participants digested the October policy decision from the European Central Bank and some somewhat hawkish commentary from a Federal Reserve official. The Dow Jones Industrial Average (-0.2%) settled slightly behind the S&P 500 (-0.1%) and the Nasdaq Composite (-0.1%).

It was a busy day on the earning front as the third-quarter earnings reporting season continued hitting its stride. Influential names such as Verizon (VZ 49.14, -1.24), American Express (AXP 66.78, +5.53), Travelers (TRV 109.52, -6.71), Walgreens Boot Alliance (WBA 81.02, +3.84) and Union Pacific (UNP 90.64, -6.48) each reported their quarterly results, resulting in some varied assessments.

Equity indices struggled for direction at the start of the session as choppy trade in Europe increased volatility during the early portion of the U.S. session. The European Central Bank released its latest policy statement this morning, opting to maintain its key interest rates and its asset purchase levels. ECB President Mario Draghi followed up the policy inaction with noncommittal remarks. Mr. Draghi indicated that neither extending nor tapering the central bank's asset purchase program were discussed at this month's meeting, but that the board would conduct further policy review in December.

The decision took some steam out of the euro, which in turn, provided another tailwind to the greenback. The U.S. Dollar Index (98.30, +0.38, +0.39%) extended its recent winning streak as policy inaction from the ECB, an improving US rate hike picture, and largely positive economic data boosted the currency. Strengthening in the dollar weighed on the broader market as participants eyed headwinds for dollar-denominated commodities and earnings prospects of multinational companies.

The broader market overcame selling interest near midday, but the major averages were unable to make a meaningful move above their flat lines.

The S&P 500 finished off its best level of the day as ten sectors settled in the red. The lightly-weighted telecom services (-2.0%) sector finished at the bottom of the leaderboard with industrials (-0.5%) and consumer discretionary (-0.2%) also underperforming notably. On the flipside, heavily-weighted health care (+0.5%) finished in positive territory.

The PHLX Semiconductor Index finished higher by 0.8% after takeover rumors signaled that Qualcomm (QCOM 67.34, +1.55) is close to acquiring NXP Semi (NXPI 104.49, +3.46).

The health care sector (+0.5%) demonstrated relative strength as biotechnology and generic drug names outperformed. The iShares Nasdaq Biotechnology ETF (IBB 270.04, +2.56) finished higher by 1.0%, narrowing its month-to-date loss to 6.7%. In the ETF, Gilead Sciences (GILD 74.31, +0.97) jumped 1.3% after announcing top-line results from several drug studies.

In the financial sector (UNCH), Dow component American Express (AXP 66.78, +5.53) outperformed after beating bottom-line estimates for the quarter and issuing upbeat full-year earnings guidance. The name finished at the top of the price-weighted average. On the flip side, Travelers (TRV 109.52, -6.71) rounded out the index despite beating estimates. The stock fell 5.8%.

The industrial sector (-0.5%) underperformed after Union Pacific (UNP 90.64, -6.48) missed bottom-line estimates for the quarter. The stock was also downgraded to "Market Perform" from "Outperform" at Cowen.

Specialty retail names underperformed in the consumer discretionary sector (-0.1%) as eBay (EBAY 29.02, -3.50) plunged 10.8%. The company issued some disappointing guidance, which overshadowed a quarterly beat.

Treasuries finished on a mixed note as the short end of the curve underperformed. The yield on the 2-yr note settled higher by two basis points (0.82%) while the yield on the benchmark 10-yr note finished higher by one basis point at 1.75%.

Today's trading volume fell below the average of 853 million as 773 million shares changed hands at the NYSE floor.

Today's economic data included weekly initial claims, the Philadelphia Fed Survey, Existing Home Sales, and September Leading Indicators:

Initial jobless claims jumped 13,000 to 260,000 (Briefing.com consensus 249,000) for the week ending October 15.
Continuing claims for the week ending October 8 rose by 7,000 to 2.057 million.
The Philadelphia Fed Index dipped from 12.8 in September to 9.7 in October (Briefing.com consensus 5.5).
That reflects a slowing of activity, yet any number above 0.0 still points to an expansion in regional manufacturing activity.
Existing home sales increased 3.2% to a seasonally adjusted annual rate of 5.47 million in September from a downwardly revised 5.30 million (from 5.33 million) in August.
The uptick in September broke a string of monthly sales declines registered in July and August.
The Conference Board's Leading Economic Index (LEI) increased 0.2% in September, as expected, rebounding from an unrevised 0.2% decline in August.

There is no economic data of note scheduled to be released tomorrow.

Russell 2000: +7.4% YTD
S&P 500: +4.8% YTD
Nasdaq Composite: +4.7% YTD
Dow Jones: +4.2% YTD

DJ30 -40.27 NASDAQ -4.58 SP500 -2.95 NASDAQ Adv/Vol/Dec 1288/1.593 bln/1501 NYSE Adv/Vol/Dec 1224/773.0 mln/1671 3:30 pm :

The dollar index was +0.4% around the 98.31 level, hit 7-month highs earlier, weighed on commodities, especially precious metals
Commodities, as measured by the Bloomberg Commodity Index, were -1.0% around the 86.02 level
Crude oil retreated from yesterday's 15-month high ahead of tomorrow's rig count data
December crude oil futures fell $1.15 (-2.2%) to $50.65/barrel
The next OPEC meeting will take place in Vienna, Austria on November 30.
Baker Hughes rig count data will be released tomorrow at 1 pm ET.
The oil rig count has increased for the past 16 consecutive weeks.
Natural gas extended yesterday's losses after EIA data showed a larger-than-expected build compared to Consensus
November natural gas closed $0.03 lower (-1.0%) at $3.14/MMBtu
EIA highlights:
Natural gas inventory showed a build of +77 bcf vs expectations for inventory to be a build of approximately +73 bcf.
Working gas in storage was 3,836 Bcf as of Friday, October 14, 2016, according to EIA estimates.
Stocks were 46 Bcf higher than last year at this time and 185 Bcf above the five-year average of 3,651 Bcf.
At 3,836 Bcf, total working gas is above the five-year historical range.
In precious metals, gold's decline was outpaced by the losses in silver as the dollar index broke out to 7-month highs earlier in the session
December gold ended today's session down $2.40 (-0.2%) to $1267.70/oz
December silver closed today's session $0.10 lower (-0.6%) at $17.56/oz
The gold:silver ratio was at ~72.2%, compared to last Thursday's pit trading closing ratio of ~72.1.

The broader market erased yesterday's modest advance as the Dow Jones Industrial Average led all others lower, shedding 40.27 points (-0.22%) today to end 18162.35. The S&P 500 lost 2.95 points (-0.14%) to 2141.34, and the Nasdaq Composite was lower by 4.58 points (-0.09%) to 5241.83 when the session was over. Notable Nasdaq 100 components which resisted the broader market selling today included WBA +5.0%, NXPI +3.4%, QCOM +2.4%, ALXN +1.8% and BIIB +1.5%.

Equity indices began the day under modest pressure as participants pored over the latest policy statement from the ECB and remarks from President Draghi. The central bank voted to leave its monetary policy stance unchanged, holding its key interest rates steady and maintaining its bond purchase levels at EUR80 billion per month. Mr. Draghi also noted that the board did not discuss either extending or tapering its asset purchase program at this meeting. However, he did signal that the ECB would review policy further in December and also voiced some optimism regarding the potential for an improved inflation trend.

The commentary exacerbated strength in the U.S. Dollar Index (98.31, +0.46 +0.47%) as the euro extended its losing streak against the greenback. An improved US rate hike picture and some positive economic data also contributed to strength in the dollar.

The major averages pulled back amid firming in the buck as participants assessed headwinds on dollar-denominated commodities and the earnings prospects of multinational companies.

Market data that crossed desks today included the initial jobless claims reading which jumped 13,000 to 260,000 for the week ending October 15. Also, the Philadelphia Fed Index dipped from 12.8 in September to 9.7 in October. Further, existing home sales increased 3.2% to a seasonally adjusted annual rate of 5.47 million in September from a downwardly revised 5.30 million (from 5.33 million) in August. Lastly, the Conference Board's Leading Economic Index (LEI) increased 0.2% in September, as expected, rebounding from an unrevised 0.2% decline in August.

Among S&P sectors in negative territory today, the Technology (XLK 47.40, -0.22 -0.46%) sector could not rebound off morning weakness, erasing yesterday's modest gains. Component eBay (EBAY 29.02, -3.50 -10.76%) was the worst performing stock in the sector today despite a better than expected Q3 print. Other sectors as measured by the S&P closed Thursday XLV +0.47%, XLFS +0.16%, XLP -0.06%, XLU -0.06%, XLB -0.06%, XLF -0.10%, XLE -0.11%, XLY -0.16%, XLRE -0.35%, XLI -0.54%, IYZ -1.23% as Healthcare and Financial Services were the lone out-performers.

In the S&P 500 Information Technology (797.35, -1.86 -0.23%) sector, trading could not manage to climb out of the red. Component Alliance Data (ADS 204.77, -10.01 4.66%) was a drag on the space after the company reported a mostly better than expected Q3, but guided FY17 worse than market expectations. Other names in the space which were lower today included FIS -1.35%, TDC -1.33%, GPN -1.05%, XRX -0.93%, RHT -0.88%, JNPR -0.87%, YHOO -0.82%, TSS -0.77%, ORCL -0.68%.

Other notable news items among sector components:

IBM (IBM 151.52, +0.26 +0.17%) announced that TPV Technology Ltd., the manufacturer of Philips-branded televisions, has adopted IBM Cloud and IoT services to more quickly and easily build new smart features and apps, such as video-on-demand and instant playback, directly into its TVs.

Reportedly, Tesla (TSLA 199.10, -4.46 -2.19%) will use NVIDIA's (NVDA 67.73, +1.26 +1.90%) Titan GPU (over MBLY) to give cars produced by TSLA autonomous driving options.

CSRA (CSRA 26.20, -0.13 -0.49%) won a task order through the Department of Defense Joint Service Provider program. The $114 million task order was awarded under the CIO-SP3 contract vehicle, and has a period of performance over four and a half years.

Analog Devices (ADI 63.47, +1.56 +2.52%) and Linear Tech (LLTC 60.15, +0.84 +1.42%) announced that on October 19, 2016 the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act for the proposed combination of Analog Devices and Linear Technology expired. As a result, the transaction has been cleared for U.S. antitrust purposes. In addition, Analog Devices and Linear Technology received clearance for the transaction from the German Federal Cartel Office on October 11, 2016.

Intel (INTC 35.43, -0.08 -0.23%) won support from an European Union Court of Justice for its appeal of the EU's previously announced anti-trust fine.

Alliance Data (ADS) declared an initial quarterly dividend of $0.52 per share.

Elsewhere in the tech space:

Nintendo (NTDOY 32.36, +0.77 +2.45%) unveiled its newest gaming console, the Nintendo Switch. The console is expected to be available March 2017.

DragonWave (DRWI 4.29, +2.08 +94.12%) announced Sprint (S 6.72, -0.16 -2.33%) selected its microwave backhaul equipment for network deployment as part of the company's densification and optimization strategy.

Actua (ACTA 11.55, +0.20 +1.76%) announced the consummation of the sale of GovDelivery to an investor group led by Vista Equity Partners for $153 million in cash, subject to adjustment for working capital, cash, debt and other items. Actua will realize about $133 million in cash in connection with the transaction.

xG Technology (XGTI 0.43, +0.02 +5.12%) to acquire Vislink Communication Systems for $16 million.

InterCloud Systems (ICLD 0.06, +0.00 +0.44%) was recently awarded more than $2.1 million in new contracts. A majority of the work is expected to begin immediately.

HealthEquity (HQY 35.90, -0.84 -2.29%) announced and priced a 2.5 million common stock offering at $35.85 per share.

Wipro (WIT 9.92, -0.14 -1.39%) confirmed a deal to acquire Appirio for $500 million.

In reaction to quarterly results:

Verizon (VZ 49.14, -1.24 -2.46%) reported better than expected Q3 EPS of $1.01 on revenues which fell 6.7% compared to last year to $30.94 billion. VZ also reaffirmed certain guidance.

eBay (EBAY) reported better than expected Q3 EPS of $0.45 on better than expected revenues of $2.22 billion. Also, gross merchandise volume was up 3% to $20.1 billion.

Lam Research (LRCX 96.94, -2.78 -2.79%) reported better than expected Q1 EPS of $1.81 on revenues of $1.63 billion. Gross margins were 45.2% and deferred revenues were $704 million compared to $566 last quarter. LRCX also guided Q2 EPS of $2.08-2.28 on revenues of $1.765-1.915 billion.

Citrix Systems (CTXS 86.34, +0.04 +0.05%) reported better than expected Q3 EPS and revenues of $1.32 and $841 million, respectively. CTXS also guided FY16 EPS and revenues above expectations at $5.18-5.20 and $3.40-3.41 billion, respectively.

Xilinx (XLNX 50.09, +0.48 +0.97%) reported better than expected Q2 EPS of $0.61 on revenues of $579 million. XLNX also gave guidance for Q3 revenues of flat sequentially from $579 million.

Alliance Data (ADS) reported better than expected Q3 EPS and revenues of $4.74 and $1.81 billion, respectively. For FY16, ADS raised its EPS guidance to $16.90 from $16.85 and now sees revenues for FY16 of $7.2 billion from $7.15 billion. Additionally, the company guided FY17 lower than expected at EPS growth of about 10% to about $18.60 on revenue growth of about 10% to about $7.92 billion.

Companies scheduled to report tonight/tomorrow morning: AMD, BHE, CLS, ETFC, KLAC, MXIM, MSFT, PYPL, PFPT/ERIC, EEFT, MWW, SAP, WIT

Analyst actions:

EXPE was upgraded to Overweight from Sector Weight at Pacific Crest,
EPAM was upgraded to Buy from Neutral at Monness Crespi & Hardt,
RST was upgraded to Outperform from Market Perform at Barrington Research,
DRWI was upgraded to Hold from Sell at Desjardins;
CNSL was downgraded to Underweight at a boutique firm;
TEF was initiated with an Underperform at RBC Capital Mkts,
EMKR was initiated with a Buy at Dougherty,
EXPE and PCLN were initiated with a Positive at Susquehanna,
ADI was initiated with an Outperform at CLSA,
NTNX was initiated with a Neutral at BTIG Research,
TRIP was initiated with a Neutral at Susquehanna

[ReturntoSender]

From Briefing.com: Weekly Recap - Week ending 25-Nov-16

The stock market extended its winning streak to three consecutive weeks with the S&P 500 rising 1.4% to mark a fresh all-time high. Not to be outdone, The Dow Jones Industrial Average (+1.5%), Nasdaq (+1.5%), and Russell 2000 (+2.3%) also registered weekly gains and marked new record highs during the holiday-shortened week.

Treasury yield have been on a big post-election run, but selling in the bond market eased up a little during the past week. The 10-yr yield edged up to 2.36% from last Friday's 2.34%. Interestingly, the modest uptick in the benchmark yield did not stop rate-sensitive sectors from receiving some inflows. Post-election laggards like telecom services (+4.6%) and utilities (+1.9%) had a better showing than the broader market during the past week.

Things were a bit more mixed on the cyclical side where only three sectors outperformed the broader market. The energy space (+2.2%) rallied as OPEC members continued playing 'Deal or no Deal' while the consumer discretionary sector (+2.3%) benefitted from expectations for a better than feared holiday shopping season. Industrials (+2.3%) also outperformed, largely thanks to shares of Deere (DE), which surged in reaction to above-consensus results and an upbeat outlook.

It is worth noting that market participants received the policy minutes from the November FOMC meeting during the past week, but the release did not invite a particularly strong reaction. The minutes acknowledged that the Fed is 'relatively close' to raising rates, which was universally received as a sign of a rate hike coming in December. The market had been anticipating this type of a statement, evidenced by the limited movement in the fed funds futures market, which projects a 93.5% implied likelihood of a rate hike in three weeks.

Index Started Week Ended Week Change % Change YTD %
DJIA 18867.93 19152.14 284.21 1.5 9.9
Nasdaq 5321.51 5398.92 77.41 1.5 7.8
S&P 500 2181.90 2213.35 31.45 1.4 8.3
Russell 2000 1315.64 1347.20 31.56 2.4 18.6

The stock market endured a lazy, upward drift on Friday to end the abbreviated post-holiday session on a modestly higher note. The S&P 500 added 0.4%, extending its weekly advance to 1.4%. The benchmark index will enter the final three days of the month with a November gain of 4.1%.

To little surprise, the day after Thanksgiving was very uneventful for equities, as the bulk of the action unfolded in the first and last 30 minutes of the trading day. The benchmark index opened with a four-point gain and built on its advance during the home stretch. Trading volume was particularly low with fewer than 400 million shares changing hands at the NYSE floor.

Ten of eleven sectors ended the day with gains, paced by relative strength in utilities (+1.4%), telecom services (+1.1%), and consumer staples (+0.8%). Most cyclical sectors registered modest gains, but energy (-0.4%) bucked the trend as crude oil retreated.

Rate-sensitive utilities finished in the lead, even though moderate selling in the Treasury market resulted in higher yields. Despite the advance, the sector remains at the bottom of the November leaderboard, showing a decline of 5.1%.

For its part, the consumer staples sector also shows a November loss (-3.1%), but like utilities, the staples sector settled among today's leaders. Wal-Mart (WMT 71.22, +0.39) was among the sources of relative strength, rising 0.6%, after ChannelAdvisor reported that third party sellers on the Wal-Mart website saw a 39.7% year-over-year surge in sales.

Understandably, today's market-related news was limited to reports surrounding the retail sector, but investors will have to wait until next week to get a better feel for how retailers did during the Thanksgiving weekend. Last evening, Adobe Digital Insights estimated that as of 17:00 ET on Thursday, online sales totaled $1.15 billion, representing year-over-year growth of 13.6%. The news was insufficient to keep online retail giant Amazon (AMZN 780.22, +0.10) among today's outperformers despite an upbeat start. Amazon settled flat while the broader discretionary sector (+0.3%) ended just behind the broader market.

On the downside, the energy sector (-0.4%) spent the entire session in negative territory, pressured by crude oil, which dropped 3.2% to $46.41/bbl. Shortly before the close, Bloomberg reported that Monday's meeting between OPEC and non-OPEC producers has been cancelled, adding another wrinkle to the ongoing supply cut saga.

The Treasury market will remain open until 14:00 ET, but a quiet finish is expected, considering the 10-yr note holds just a slim loss, sending its yield higher by one basis point to 2.36%.

Today's economic data was limited to International Trade in Goods and advance Wholesale Inventories:

The October International Trade in Goods report showed a $62.00 billion decline to follow last month's $56.10 billion drop
October advance Wholesale Inventories showed a 0.4% decline (Briefing.com consensus 0.2%) on top of a revised 0.1% uptick in September (from 0.2%)

Monday's session will be free of noteworthy economic data.

Russell 2000 +18.6% YTD
Dow Jones Industrial Average +9.9% YTD
S&P 500 +8.3% YTD
Nasdaq Composite +7.8% YTD

Week in Review: Three in a Row

The stock market extended its winning streak to three consecutive weeks with the S&P 500 rising 1.4% to mark a fresh all-time high. Not to be outdone, The Dow Jones Industrial Average (+1.5%), Nasdaq (+1.5%), and Russell 2000 (+2.3%) also registered weekly gains and marked new record highs during the holiday-shortened week.

Treasury yield have been on a big post-election run, but selling in the bond market eased up a little during the past week. The 10-yr yield edged up to 2.36% from last Friday's 2.34%. Interestingly, the modest uptick in the benchmark yield did not stop rate-sensitive sectors from receiving some inflows. Post-election laggards like telecom services (+4.6%) and utilities (+1.9%) had a better showing than the broader market during the past week.

Things were a bit more mixed on the cyclical side where only three sectors outperformed the broader market. The energy space (+2.2%) rallied as OPEC members continued playing 'Deal or no Deal' while the consumer discretionary sector (+2.3%) benefitted from expectations for a better than feared holiday shopping season. Industrials (+2.3%) also outperformed, largely thanks to shares of Deere (DE), which surged in reaction to above-consensus results and an upbeat outlook.

It is worth noting that market participants received the policy minutes from the November FOMC meeting during the past week, but the release did not invite a particularly strong reaction. The minutes acknowledged that the Fed is 'relatively close' to raising rates, which was universally received as a sign of a rate hike coming in December. The market had been anticipating this type of a statement, evidenced by the limited movement in the fed funds futures market, which projects a 93.5% implied likelihood of a rate hike in three weeks.

Black Friday was thin in terms of volume, as expected, with the broader market ultimately ending at yet another all-time high. The broader market closed Friday with the S&P 500 up 8.63 points (+0.39%) to 2213.35. The Dow Jones Industrial Average added 68.96 (+0.36%) to 19152.14, and the Nasdaq Composite was up 18.24 points (+0.34%) to 5398.92.

Technology (XLK 48.00, +0.20 +0.42%) names were mostly higher today with the broader market as thin volume was pushed around in names with high short interest. Components FTR +1.9%, VRSN +1.8%, T +1.2%, MU +1.1% and CTL +1.1% all closed with strength, driven by the broader market. Other sectors as measured by the S&P closed out the week XLU +1.4%, XLP +0.8%, XLI +0.6%, XLRE +0.4%, XLV +0.4%, XLB +0.3%, XLB +0.3%, XLY +0.2%, XLF +0.1%, XLE -0.5%.

In the S&P 500 Information Technology (804.58, +3.01 +0.38%) sector, trading closed at highs as broader market action drove everything higher at the close. Components FSLR +2.7%, CTSH +2.7%, HPQ +2.1%, CSCO +1.2%, XRX +1.2% and MA +1.1% all closed higher today.

There was one lone piece of economic data today in the form of the November US Markit Services PMI reading which was unchanged compared to the October level at 54.9.

In the week ahead, tech names LEJU, VNET, SOL, ADSK, SPLK, BV, SNPS, VRNT and WDAY will release quarterly results.

[ReturntoSender]

From Briefing.com: 4:33 pm Semtech beats by $0.01, beats on revs; guides Q4 EPS above consensus, revs in-line (SMTC) : Reports Q3 (Oct) earnings of $0.37 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.36; revenues rose 21.7% year/year to $140.9 mln vs the $137.93 mln Capital IQ Consensus.Non-GAAP gross margin was 60.4%Non-GAAP operating margin was 23.6%Co issues guidance for Q4, sees EPS of $0.33-0.37, excluding non-recurring items, vs. $0.33 Capital IQ Consensus Estimate; sees Q4 revs of $134-142 mln vs. $133.52 mln Capital IQ Consensus Estimate.Non-GAAP gross margin is expected to be in the range of 60.0% to 60.5%

4:31 pm Western Digital schedules Investor Day for Dec 6 to discuss ongoing strategic transformation, market positioning, growth opportunities and financial model (WDC) :

4:15 pm : The stock market closed a strong month on a sloppy note as the S&P 500 (-0.3%) spent the day in a retreat from its opening high. The benchmark index narrowed its November gain to 3.4% while the Nasdaq Composite (-1.1%) underperformed, but still added 2.6% for the month. The Dow Jones Industrial Average (UNCH) outperformed today, staying true to its November (+5.4%) form.

Equity indices entered the day with an assortment of positive headlines to rally behind, but what we saw instead, was a continuation of the selling that showed up during the last hour of yesterday's session.

The positive headlines from this morning included:

An official OPEC agreement to lower oil production to 32.5 million barrels per day
Better than expected economic data, which supports the narrative that a December rate hike makes sense and is not being rushed
News that Steve Mnuchin, who is known to be business-friendly, was nominated as Secretary of the Treasury
Report that the European Central Bank is likely to extend its quantitative easing program past March

In the end, only the OPEC-related news stuck, preventing the S&P 500 from ending well below its flat line. The energy sector (+4.8%) extended its November gain to 7.9% while crude oil soared 9.3% to $49.44/bbl, ending the month higher by 5.5%. The big rally in crude began in overnight action, before the results of the OPEC meeting were known. A short squeeze likely played a part in the rally, especially when taking into account yesterday's bearish headline flow. On a side note, today's OPEC deal will put monthly supply back at levels from the start of the year, when hopes for a supply cut were already driving daily price action.

Energy was one of just four pockets of relative strength on the sector leaderboard. Financials (+1.3%) and materials (+1.1%) also posted solid gains while industrials (-0.1%) ended just ahead of the S&P 500 thanks to strength in transport stocks after rail carrier CSX (CSX 35.83, +1.03) raised its guidance.

The financial sector extended its November gain to 13.7%, as the month-long theme of yield curve steepening continued. Selling in the 10-yr note sent its yield higher by eight basis points to 2.37% while the 2-yr yield rose two basis points to 1.11%. For the month, the 10-yr yield spiked 54 basis points while the 2-yr yield jumped 26 basis points.

Today's sharp uptick in Treasury yields weighed on rate-sensitive sectors. Utilities (-3.2%) retreated throughout the day while telecom services (-2.1%), consumer staples (-1.7%), and real estate (-1.2%) were under significant pressure from the start.

Elsewhere, the consumer discretionary sector (-0.9%) was pressured by losses in apparel retailers and homebuilders. The iShares Dow Jones US Home Construction ETF (ITB 27.34, -0.59) fell 2.1% after a disappointing Pending Home Sales report (+0.1%; Briefing.com consensus +0.7%), which made for a soft spot in today's batch of economic data. On the retail side, American Eagle Outfitters (AEO 16.56, -2.35) plunged 12.4% in reaction to disappointing guidance for the holiday period.

Two other influential sectors-health care (-1.0%) and technology (-1.2%)-kept the market under pressure throughout the day, and their underperformance was most notable when looking at the Nasdaq. Biotechnology was particularly weak, sending the iShares Nasdaq Biotechnology ETF (IBB 274.07, -6.24) lower by 2.2%. The biotech ETF narrowed its November gain to 6.8%.

Month-end flows led to increased participation as more than 1.5 billion shares changed hands at the NYSE floor.

Economic data included MBA Mortgage Index, ADP Employment, Personal Income/Spending, Chicago PMI, and Pending Home Sales:

The ADP National Employment Report showed an increase of 216,000 in November (Briefing.com consensus 160,000) while the October reading was revised down to 119,000 from 147,000.
Personal income increased 0.6% in October (Briefing.com consensus +0.4%), bolstered by a 0.5% increase in compensation of employees and a 1.8% jump in personal interest income.
Personal spending was up 0.3%, and while that was below the Briefing.com consensus estimate calling for 0.5% growth, it was essentially in-line with expectations when taking into account that personal spending growth in September was revised up to 0.7% from 0.5%.
Core PCE Prices increased 0.1%, in-line with the Briefing.com consensus.
The MNI Chicago Business Barometer checked in at 57.6 for November (Briefing.com consensus 52.0) versus 50.6 in October. The November reading marked the highest reading for the barometer since January 2015.
New Orders increased to 63.2 from 52.5
Pending Home Sales ticked up 0.1% in October (Briefing.com consensus 0.7%) and the September reading was revised down to 1.4% from 1.5%.
The weekly MBA Mortgage Index fell 9.4% after rising 5.5% last week.

Tomorrow, weekly initial claims (Briefing.com consensus 253K) will be reported at 8:30 ET while October Construction Spending (Briefing.com consensus 0.6%) and the November ISM Index (Briefing.com consensus 52.1) will cross the wires at 10:00 ET.

Russell 2000 +16.3% YTD
Dow Jones Industrial Average +9.8% YTD
S&P 500 +7.6% YTD
Nasdaq Composite +6.3% YTD

DJ30 +1.98 NASDAQ -56.24 SP500 -5.85 NASDAQ Adv/Vol/Dec 1023/1.82 bln/1881 NYSE Adv/Vol/Dec 1177/1.58 bln/1798

3:35 pm :

Clearly a big day in oil
WTI crude oil futures surged following OPEC agreement, but never broke the $50/barrel level
Jan WTI crude oil finished its floor trading +9.1% at $49.40/barrel, after rising as high as $49.90/barrel
In other energy, Jan nat gas closed +0.9% at $3.35/MMBtu
The dollar index rose today, which helped weigh on commodities overall today
Feb gold closed -1.4% at $1174.10/oz, while Mar 2017 ended -1% at $16.49/o
However, in base metals, Mar copper rose 0.8% today to $2.63/lb

When the bell rang on Wednesday, trading was at lows as a late session drop took all three major US indices to lows of the session. Ending the month on a down note, the lone index in the green today, the Dow Jones Industrial Average, managed to gain only 1.98 (+0.01%) to 19123.58. The Nasdaq Composite was down worse than 1%, lower by 56.24 points to 5323.68, and the S&P 500 lost 5.85 points (-0.27%) to 2198.81. The worst performing names the in Nasdaq 100 today, which contributed to the index's decline, included IMN -10.0%, BIOS -8.1%, HZNP -5.9%, TSN -3.7%, DF -3.2% and EBIX -2.6%. Shares of IMN were weaker today after peer Dataram (DRAM 1.17, -0.24 -17.02%) gained more than 40% yesterday, and todaygave up all of those gains.

Equity indices entered the day with an assortment of positive headlines to rally behind, but what we saw instead, was a continuation of the selling that showed up during the last hour of yesterday's session.

The positive headlines from this morning included:

An official OPEC agreement to lower oil production to 32.5 million barrels per day
Better than expected economic data, which supports the narrative that a December rate hike makes sense and is not being rushed
News that Steve Mnuchin, who is known to be business-friendly, was nominated as Secretary of the TreasuryReport that the European Central Bank is likely to extend its quantitative easing program past MarchIn the end, only the OPEC-related news stuck, preventing the S&P 500 from ending well below its flat line. The energy sector (+4.8%) extended its November gain to 7.9% while crude oil soared 9.3% to $49.44/bbl, ending the month higher by 5.5%. The big rally in crude began in overnight action, before the results of the OPEC meeting were known. A short squeeze likely played a part in the rally, especially when taking into account yesterday's bearish headline flow. On a side note, today's OPEC deal will put monthly supply back at levels from the start of the year, when hopes for a supply cut were already driving daily price action.

Among the weaker S&P sectors, Technology (XLK 47.50, -0.57 -1.19%) ended the session worse than 1% lower, shedding all of last week's gains. Component Activision Blizzard (ATVI 36.60, -1.35 -3.56%) was the worst performer today behind no particular catalyst. Other sectors as measured by the S&P closed the day split with XLE +5.08%, XLFS +2.19%, XLF +1.26%, XLB +1.07%, XLI +0.10%, XLY -0.84%, XLV -0.95%, XLRE -1.22%, XLP -1.61%, IYZ -1.96%, XLU -3.15% Energy and Financials closing higher, and Utilities shedding more than 3%.

In the S&P 500 Information Technology (795.89, -9.35 -1.16%) sector, trading was bad enough to fall below the $800-level as the sector ended at lows. Component Autodesk (ADSK 72.66, -2.60 -3.45%) was among the weaker names today after the company reported a strong Q3, but Q4 guidance fell short of market expectations. Other names in the space which closed lower today included GPN -2.89%, AVGO -2.80%, TSS -2.73%, EA -2.64%, EBAY -2.35%, V -2.31%, KLAC -2.23%, FIS -2.17%, INTU -2.08%, ADBE -1.99%, FB -1.95%, FISV -1.80%, GOOGL -1.73%.

Other news items among tech names:

GoPro (GPRO 9.98, +0.15 +1.53%) announced 'solid' holiday quarter sell-thru in the U.S. for its new HERO5 cameras. The company also announced the restructuring of about 200 full-time jobs plus the cancellation of open positions for a reduction in workforce of about 15%. Additionally, Tony Bates will depart his position as president of the Company at the end of the year.

Netflix (NFLX 117.04, -0.47 -0.40%) unveiled new a feature that will allow members to download certain content for on-the-go availability.

Finnair and IBM (IBM 162.22, -1.31 -0.80%) announced a first-of-its-kind agreement to utilize iOS enterprise apps from IBM to support the airline's overall digital transformation.

The Mahindra Group and IBM (IBM) announced the development of a blockchain solution that has the potential to reinvent supply chain finance across India by enhancing security, transparency and operational processes.

FLIR Systems (FLIR 35.93, +0.68 +1.93%) acquired Prox Dynamics for about $134 million in cash. The company anticipates the business and related transaction costs will be about $0.01 dilutive to its 2016 EPS.

Wi-LAN's (WILN 1.35, +0.02 +1.50%) North Star Innovations, Inc. entered into a settlement and patent license agreement with Elite Semiconductor Memory Technology. Financial terms of the deal were confidential.

Mastercard (MA 102.20, -1.62 -1.56%) introduced Decision Intelligence, a comprehensive decision and fraud detection service. The solution uses artificial intelligence technology to help financial institutions increase the accuracy of real-time approvals of genuine transactions and reduce false declines.

Nintendo's (NTDOY 30.83, -0.39 -1.25%) Pokmon Sun and Moon sold 3.7 million Nintendo 3DS units in the Americas in first two weeks. Those levels represent an 85% increase compared to Pokmon X and Y (launched in 2013).

Zayo Group Holdings (ZAYO 34.50, -0.21 -0.61%) to acquire Electric Lightwave for $1.42 billion in cash.

Ericsson (ERIC 5.12, flat) has launched Accelerated Network Build, a new solution to accelerate and streamline the network build process for operators to deliver a faster time to market with quicker return on investment.

SUSE has entered into an agreement with Hewlett Packard Enterprise (HPE 23.80, +0.06 +0.25%) to acquire technology and talent that will expand SUSE's OpenStack Infrastructure-as-a-Service (IaaS) solution and accelerate SUSE's entry into the growing Cloud Foundry Platform-as-a-Service (PaaS) market.

Palo Alto Networks (PANW 134.37, +0.79 +0.59%) announced the integration of its VM-Series virtualized next-generation firewalls with Amazon Web Services Auto Scaling and Elastic Load Balancing.

Intel (INTC 34.71, -0.60 -1.70%) appointed Tom Lantzsch as senior VP and GM of IoT Group and builds Automated Driving Group.

Superconductor Tec (SCON 2.98, +0.98 +49.00%) was awarded a $4.5 million DOE contract to improve HTS Wire for Next Generation Electric Machines program.

Science Applications (SAIC 82.57, -1.74 -2.06%) was awarded a contract that has a five-year period of performance and a total contract value of $156 million to support the joint staff j6 directorate's c4 and cyber program.

CSRA (CSRA 32.01, -0.44 -1.36%) was advised by Providence Equity Partners LLC that they have sold substantially all of their holdings of common stock in the Company.

Brooks Automation (BRKS 16.30, -0.25 -1.51%) disclosed the acquisition of Cool Lab.

In reaction to quarterly results:

Autodesk (ADSK) reported a better than expected Q3 loss per share of $0.18 on revenues which also came in ahead of market expectations yet fell 18.4% compared to a year ago to $489.6 million. For Q4, the company sees a worse than expected loss per share of ($0.39)-($0.32) and worse than expected revenues of $460-480 million.

Splunk (SPLK 57.62, +0.24 +0.42%) reported better than expected Q3 EPS and revenues of $0.12 and $244.79 million, respectively. For Q4, the company guided revenues above expectations at $286-288 million.

Companies scheduled to report quarterly results tonight/tomorrow morning: BV, BL, BOX, EXA, NQ, PSTG, SMTC, SNPS/XCRA

Analyst actions:

SMCI was upgraded to Buy from Neutral at DA Davidson,
SBAC was upgraded to Overweight from Neutral at JP Morgan,
AUO was upgraded to Buy from Neutral at UBS;
FFIV was downgraded to Mkt Perform from Outperform at Bernstein,
MANT was downgraded to Hold from Buy at Maxim Group;
CMPR was initiated with a Hold at Aegis Capital,
NVMI was initiated with a Buy at The Benchmark Company

[ReturntoSender]

From Briefing.com: 4:49 pm Intersil stockholders approved the merger agreement with Renesas Electronics (RNECF); transaction is expected to close during the first half of 2017 (ISIL) : The merger remains subject to the satisfaction of certain other conditions, including antitrust approval by the China government and approval by CFIUS.

4:10 pm Broadcom beats by $0.09, reports revs in-line; guides Q1 revs above consensus; doubles quarterly dividend to $1.02/share (AVGO) :

Reports Q4 (Oct) earnings of $3.47 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus of $3.38; revenues rose 123.7% year/year to $4.15 bln vs the $4.12 bln Capital IQ Consensus.

Gross margin 60.8% vs. 59.5-61.5% guidance

Raised non-GAAP rev to $4.10-4.175 bln from $4.025-4.175 on Nov 2 when it announced $5.5 bln cash acquisition of Brocade (BRCD).

Co issues upside guidance for Q1, sees Q1 revs of $4.00-4.15 bln, excluding non-recurring items, vs. $3.96 bln Capital IQ Consensus Estimate.

4:03 pm Finisar beats by $0.12, beats on revs; guides Q3 EPS above consensus, revs above consensus (FNSR) :

Reports Q2 (Oct) earnings of $0.58 per share, excluding non-recurring items, $0.12 better than the Capital IQ Consensus of $0.46; revenues rose 15.2% year/year to $369.9 mln vs the $364.29 mln Capital IQ Consensus. Non-GAAP gross margin improved to 37.2% compared to 33.1% in the first quarter.

"This growth was primarily driven by strong demand for 100G transceivers. In addition, customer demand for wavelength selective switch and ROADM line card products was strong. Our gross margins improved significantly due to a favorable product mix and leverage achieved from our vertical integration with larger volumes. The combination of revenues being at the higher end of our guidance range with higher gross margins resulted in earnings per fully diluted share above our guidance range,"

Co issues upside guidance for Q3, sees EPS of $0.58-0.64, excluding non-recurring items, vs. $0.48

Capital IQ Consensus Estimate; sees Q3 revs of $378-398 mln vs. $377.62 mln Capital IQ Consensus Estimate. Co sees Q3 non-GAAP gross margin of ~37% to 38%, non-GAAP operating margin of ~18.5% to 19.5%.

4:10 pm : The stock market secured its fifth consecutive advance with the S&P 500 rising 0.2% to extend this week's advance to 2.5%. True to this week's form, small caps outperformed, sending the Russell 2000 higher by 1.6%. The domestically-oriented index will enter Friday with a 5.5% gain for the week.

Equity indices spent the early action near their flat lines as participants digested the latest policy statement from the European Central Bank. The ECB made no changes to its interest rate corridor, but announced that its asset purchase program will be extended until December. The news of an extension overshadowed the revelation that the pace of purchases will slow to EUR60 billion from EUR80 billion, starting in March.

The euro jumped against the dollar immediately after the announcement, but reversed off its high (1.0875), sliding nearly 300 pips to a new session low (1.0603). The decline was accelerated by comments from ECB President Mario Draghi, who said that the central bank will buy assets that have a lower yield than the current deposit rate. The weakness in the euro lifted the U.S. Dollar Index (101.08, +0.85) into the neighborhood of this year's high.

A modest wave of selling developed during the last two hours of action, but eight out of eleven sectors still ended the day with gains.

A handful of cyclical sectors struggled at the start, but the notable resilience that has been observed as of late made its appearance known once again. Top-weighted sectors like technology (+0.4%) and financials (+0.9%) climbed into the afternoon, which helped push the S&P 500 to a fresh intraday record high.

The financial sector (+0.9%) continued its torrid stretch, extending this week's gain to 4.7%, which puts the group well ahead of its peers. Today's advance took place on the back of steepening in the yield curve, which pushed up the 2s10s spread to 130 basis points-just one basis point below this year's high.

Growth-sensitive sectors like energy (+0.5%) and materials (+0.7%) outperformed throughout the day, but the energy sector could not catch up to crude oil, which spiked 2.0% to $50.85/bbl despite dollar strength.

The consumer discretionary space (+0.1%) spent the day behind the broader market as losses in select retailers and casino names offset strength on the apparel side. TailoredBrands (TLRD 26.44, +7.51) and Lululemon (LULU 68.84, +9.00) were among the standouts thanks to above-consensus earnings and upbeat guidance. The two soared 39.7% and 15.0%, respectively.

Also on the earnings front, Costco (COST 157.59, +3.74) jumped 2.4% after its quarterly report showed an increase in membership fees. However, the broader consumer staples sector (-0.5%) underperformed throughout the day.

The remaining countercyclical sectors flashed losses at the start, but health care (+0.2%), utilities (+0.3%), and real estate (+0.5%) recovered by the close.

Longer-dated Treasuries retreated while the front of the curve held unchanged, leaving the 2-yr yield at 1.10% while the 10-yr yield rose five basis points to 2.40%.

Today's participation was just above average as more than 960 million shares changed hands at the NYSE floor.

Economic data was limited to weekly initial claims, which decreased by 10,000 to 258,000 (Briefing.com consensus 255,000), marking the 92nd straight week they have been below 300,000. Continuing claims for the week ending November 26 dropped by 79,000 to 2.005 million.

Tomorrow's economic data will be limited to the 10:00 ET release of the preliminary reading of Michigan Sentiment Index for December (Briefing.com consensus 94.3) and October Wholesale Inventories (Briefing.com consensus -0.4%).

Russell 2000 +22.6% YTD
Dow Jones Industrial Average +12.6% YTD
S&P 500 +9.9% YTD
Nasdaq Composite +8.2% YTD

DJ30 +65.19 NASDAQ +23.59 SP500 +4.84 NASDAQ Adv/Vol/Dec 2165/2.06 bln/1001 NYSE Adv/Vol/Dec 1869/962.6 mln/1120 3:30 pm :

Crude oil snapped its 3-day loss streak ahead of this weekend's meeting between OPEC & non-OPEC producers
Jan 2017 crude oil futures rose $1.01 (+2.0%) to $50.85/barrel
Baker Hughes will release rig count data tomorrow at 1 pm ET.
The Dec 10th non-OPEC producer meeting is scheduled to take place in Vienna, Austria.
Natural gas traded near its 2-year high after the release of EIA data showed a draw in-line with Consensus
Jan 2017 natural gas closed $0.08 higher (+2.2%) at $3.69/MMBtu
EIA highlights:
Working gas in storage was 3,953 Bcf as of Friday, Dec 2, 2016, according to EIA estimates.
Natural gas inventory showed a draw of -42 bcf vs expectations for inventory to be a draw of approximately -43 bcf.
Stocks were 51 Bcf higher than last year at this time and 254 Bcf above the five-year average of 3,699 Bcf.
At 3,953 Bcf, total working gas is above the five-year historical range.
In precious metals, gold was nearing a 9-month low & silver dropped to its lowest level of the session on notable dollar index strength
Feb 2017 gold ended today's session down $5.10 (-0.4%) to $1172.50/oz
Mar 2017 silver closed today's session $0.18 lower (-1.0%) at $17.10/oz
The dollar index rallied back near last month's 15-year high, was +0.9% around the 101.08 level, pressured precious metals
Commodities, as measured by the Bloomberg Commodity Index, were +0.1% around the 87.57 level
Base metal copper closed lower for the third consecutive session, after hitting a 17-month high on Monday
Mar 2017 copper closed $0.01 lower (-0.4%) at $2.63/lb

When Thursday came to a close, the markets were in the green again. Although participation dwindled at the end, the market peaked near midday as all three major US indices notched new all-time highs around the noon hour. Leading the pack when the bell rang, the Nasdaq Composite added 23.59 points (+0.44%) today to end 5417.36. The Dow Jones Industrial Average was up 65.19 points (+0.33%) to 19614.81, and the S&P 500 gained 4.84 points (+0.22%) to 2246.19.

Economic data was limited to weekly initial claims, which decreased by 10,000 to 258,000, marking the 92nd straight week they have been below 300,000. Continuing claims for the week ending November 26 dropped by 79,000 to 2.005 million.

Equity indices spent the early action near their flat lines as participants digested the latest policy statement from the European Central Bank. The ECB made no changes to its interest rate corridor, but announced that its asset purchase program will be extended until December. The news of an extension overshadowed the revelation that the pace of purchases will slow to EUR60 billion from EUR80 billion, starting in March.

The euro jumped against the dollar immediately after the announcement, but reversed off its high (1.0875), sliding nearly 300 pips to a new session low (1.0603). The decline was accelerated by comments from ECB President Mario Draghi, who said that the central bank will buy assets that have a lower yield than the current deposit rate. The weakness in the euro lifted the U.S. Dollar Index (101.08, +0.85) into the neighborhood of this year's high.

A modest wave of selling developed during the last two hours of action, but eight out of eleven sectors still ended the day with gains.

Also posting higher action today, the Technology (XLK 48.30, +0.12 +0.25%) space although action drifted away from highs as the session came to a close. Component Juniper Networks (JNPR 26.88, +0.91 +3.28%) was one of the better performing names today on the back of a premarket upgrade to Buy from Neutral at Nomura. Other sectors as measured by the S&P closed the day XLFS +2.19%, XLF +0.94%, XLB +0.66%, XLE +0.54%, XLRE +0.52%, IYZ +0.51%, XLV +0.19%, XLU +0.17%, XLY +0.00%, XLP -0.39%, XLI -0.56% as Financials led higher and Industrials and Consumer Staples lagged.

In the S&P 500 Information Technology (808.51, +2.86 +0.35%) sector, trading was in the green for most of the day and ultimately closed with a modest advance. Component Corning (GLW 24.88, +0.30 +1.22%) turned in a decent session after the company disclosed last night that the Board authorized a new $$ billion share repurchase program. Other names in the space which finished higher today included TDC +3.08%, SWKS +2.82%, ADS +2.73%, YHOO +2.20%, CSRA +1.81%, VRSN +1.81%, EBAY +1.76%, ADSK +1.74%, ADI +1.29%, GPN +1.28%, AVGO +1.28%, FFIV +1.18%.

Other notable news items among tech stocks:

Qualcomm (QCOM 68.55, +0.21 +0.31%) announced that they are collaborating with Microsoft (MSFT 61.01, -0.36 -0.59%) to enable Windows 10 on mobile computing devices powered by next-generation QualcommSnapdragon processors.

Microsoft (MSFT) completed its acquisition of LinkedIn (LNKD 195.96, flat).

Corning's (GLW) Board authorized a new $4 billion share repurchase program.

FORM Holdings (FORM 11.45, +0.30 +2.69%) entered into a confidential settlement and patent assignment agreement with Nokia (NOK 4.58, -0.12 -2.55%).

Samsung (SSNLF 1250.00, flat) Canada announced update on return and exchange of Note7 Devices. The company has secured close to 90% of the devices that were brought into the Canadian market.
In addition to reporting quarterly results, Comtech Telecom's (CMTL 10.55, -2.20 -17.25%) Board completed its previously announced assessment of capital needs and lowered the quarterly dividend to $0.10 per share from $0.30 per share.

Tyler Tech (TYL 145.54, -2.19 -1.48%) provided an update on Odyssey court case management implementation. The company seeks to correct 'inaccurate' news media coverage including 'false claims of wrongful incarceration due to Tyler's software.'

Nuance Communications (NUAN 15.57, +0.19 +1.24%) intends to offer $500 million senior notes due 2026.

Majesco Entertainment (COOL 5.17, +2.01 +63.61%) signed a merger agreement with PolarityTE. The company will issue preferred stock and also entered into a $2.25 million stock purchase agreement at $3.00 per share.

In reaction to quarterly results:

Science Applications (SAIC 85.91, +3.79 +4.62%) reported better than expected Q3 EPS of $0.91 on worse than expected revenues of $1.11 billion.

Ciena (CIEN 24.87, +3.27, +15.14%) reported worse than expected Q4 EPS of $0.44 on in-line revenues of $716.2 million. For Q1, the company sees revenues in-line at $615-645 million. Management guided FY17 revenue growth of mid-single digits.

Verint Systems (VRNT 34.45, -3.85 -10.05%) reported worse than expected Q3 EPS and revenues of $0.59 and $260.03 million, respectively. For FY17, VRNT lowered EPS and revenue guidance to $2.50 from $2.85 and about $1.075 billion, plus or minus 2% from $1.11 billion, plus or minus 2%.

Methode Electronics (MEI 42.55, +3.55 +9.10%) reported better than expected Q2 EPS of $0.66 on in-line revenues of $209.3 million. For FY17, the company sees EPS and revenue guidance of $2.30-2.45 and $820-845 million, respectively.

Comtech Telecom (CMTL) reported a better than expected Q1 loss per share of $0.11 on worse than expected revenues of $135.8 million. For Q2, CMTL sees revenues similar to Q1 levels, worse than market expectations. For FY17, the company guided EPS and revenues in-line at about $0.30 and about $600 million, respectively.

Companies scheduled to report quarterly results tonight: AVGO, FNSR, XTLY

Analyst actions:

WDC was upgraded to Buy from Hold at Cross Research,
AMD was upgraded to Buy from Underperform at BofA/Merrill,
ADSK was upgraded to Neutral from Sell at Rosenblatt,
JNPR was upgraded to Buy from Neutral at Nomura,
VIAV was upgraded to Buy from Hold at Craig Hallum;
FIT was downgraded to Hold from Buy at Deutsche Bank;
PCLN was initiated with a Buy at CLSA,
EXPE was initiated with an Outperform at CLSA,
TRIP was initiated with an Underperform at CLSA,
LOGM was initiated with a Neutral at Robert W. Baird,
CGNX was initiated with a Buy at Deutsche Bank,
ETFC and AMTD were initiated with a Mkt Perform at Keefe Bruyette,
CREE was initiated with a Mkt Outperform at JMP Securities,
ACIA was initiated with an Equal Weight at Morgan Stanley

[ReturntoSender]

From Briefing.com: Weekly Recap - Week ending 09-Dec-16The stock market enjoyed another strong week that lifted the major averages to new record highs. The S&P 500 rallied 3.1% while the Nasdaq Composite (+3.6%) outperformed as relative strength in technology offset relative weakness among biotechnology names.

Equity indices enjoyed an upbeat start to the week, rising alongside European stocks, even though the results of the constitutional reform referendum in Italy will lead to political uncertainty going forward. Italian citizens voted 59-41 to reject a proposal that would have reformed the country's Senate. Prime Minister Matteo Renzi offered his resignation, but Italian President Sergio Mattarella did not accept that resignation until after Wednesday's passage of a budget for 2017.

The next couple days were quiet in terms of news, but stocks continued pushing higher, keeping post-election trends intact. Biotechnology names took a tumble on Wednesday after President-elect Donald Trump said he wants to lower drug prices. However, the industry group rebounded over the next couple days, ending the week on a modestly higher note.

On Thursday, stocks climbed after the release of the latest policy statement from the European Central Bank. The ECB made no changes to its interest rate corridor, but announced that its asset purchase program will be extended until December. The news of an extension overshadowed the revelation that the pace of purchases will slow to EUR60 billion from EUR80 billion, starting in March. ECB President Mario Draghi said that the central bank will buy assets that have a lower yield than the current deposit rate, which was met with a slide in the euro.

Next week will be highlighted by the December FOMC meeting, which is expected to conclude with the first rate hike since last December. The market is all but certain that a rate hike will happen next week, evidenced by the fed funds futures market, which showed a 97.2% implied probability of a rate hike on Friday afternoon.

Index Started Week Ended Week Change % Change YTD %
DJIA 19170.42 19756.85 586.43 3.1 13.4
Nasdaq 5255.65 5444.50 188.85 3.6 8.7
S&P 500 2191.95 2259.53 67.58 3.1 10.5
Russell 2000 1314.25 1388.08 73.83 5.6 22.2

4:11 pm Closing Market Summary: Strong Week Ends on Upbeat Note (:WRAPX) :

The stock market wrapped up a strong week with another uptick on Friday. The S&P 500 gained 0.6%, extending its weekly advance to 3.1% while the Nasdaq Composite rose 0.5% to end the week higher by 3.6%.

Overall, the Friday affair was fairly quiet, allowing the market to continue respecting post-election trends. To be fair, small caps underperformed today, but the Russell 2000 (+0.1%) still ended the week ahead of other indices, jumping 5.6%.

Equity indices climbed off their opening levels thanks to strength in sectors like health care (+1.2%), consumer staples (+1.4%), and technology (+0.7%). The three influential groups provided an early boost while most of the remaining sectors saw inflows as the day went on. The relentless push higher invited another extension of gains during the final hour, suggesting performance chasing and short covering remained present in the market.

Biotechnology was among the early sources of strength, but the industry group retreated from its high into the afternoon. The iShares Nasdaq Biotechnology ETF (IBB 269.67, +1.15) added 0.4% after being up 2.6% at the start.

The intraday fade in biotech caused the Nasdaq Composite to slip behind the broader market in afternoon action. However, the Nasdaq ended comfortably above its flat line thanks to daylong strength in technology. The top-weighted sector received support from some of its largest components, which overshadowed losses among chipmakers. The PHLX Semiconductor Index lost 0.4% with Skyworks (SWKS 76.93, -2.59) leading the index lower despite a 4.9% spike in Broadcom (AVGO 179.09, +8.38). The stock was on the rise in reaction to upbeat earnings/guidance and a quarterly dividend hike to $1.02 per share from $0.51 per share. Another tech name, Finisar (FNSR 33.41, -0.72) retreated 2.1% despite above-consensus results and upbeat guidance.

The technology sector gained 4.2% for the week, ending only behind financials (week-to-date +4.8%). The economically-sensitive group started the day under pressure, but recovered to end little changed as the yield curve continued steepening. Treasuries retreated throughout the day, sending the 10-yr yield higher by six basis points to 2.47% while the 2-yr yield rose two basis points to 1.14%. The 2s10s spread expanded to a fresh 2016 high of 133 basis points.

The energy sector (+0.4%) ended with a modest gain, but could not catch up to crude oil, which spiked 1.3% to $51.49/bbl ahead of tomorrow's meeting in Vienna between OPEC and non-OPEC members.

Investor participation was below average as fewer than 900 million shares changed hands at the NYSE floor.

Economic data included Wholesale Inventories and Michigan Sentiment:

Wholesale inventories decreased 0.4% month-over-month in October, as expected, following an unrevised 0.1% decline in September. Wholesale sales were up 1.4% on the heels of an upwardly revised 0.4% increase in September Inventory-to-sales ratio moved down to 1.30, which points to the potential for some improved pricing power if demand continues to pick up The preliminary reading for the University of Michigan Consumer Sentiment Index for December checked in at 98.0 (Briefing.com consensus 94.3), up from the final November reading of 93.8 Consumers responded more frequently with the assertion that they had heard on the news that new economic policies will have a positive impact versus a negative impact Monday's economic data will be limited to the November Treasury Budget statement, which will be released at 14:00 ET.

Russell 2000 +22.2% YTD
Dow Jones Industrial Average +13.4% YTD
S&P 500 +10.6% YTD Nasdaq Composite +8.7% YTD Week in Review: Records Smashed

The stock market enjoyed another strong week that lifted the major averages to new record highs. The S&P 500 rallied 3.1% while the Nasdaq Composite (+3.6%) outperformed as relative strength in technology offset relative weakness among biotechnology names.

Equity indices enjoyed an upbeat start to the week, rising alongside European stocks, even though the results of the constitutional reform referendum in Italy will lead to political uncertainty going forward. Italian citizens voted 59-41 to reject a proposal that would have reformed the country's Senate. Prime Minister Matteo Renzi offered his resignation, but Italian President Sergio Mattarella did not accept that resignation until after Wednesday's passage of a budget for 2017.

The next couple days were quiet in terms of news, but stocks continued pushing higher, keeping post-election trends intact. Biotechnology names took a tumble on Wednesday after President-elect Donald Trump said he wants to lower drug prices. However, the industry group rebounded over the next couple days, ending the week on a modestly higher note.

On Thursday, stocks climbed after the release of the latest policy statement from the European Central Bank. The ECB made no changes to its interest rate corridor, but announced that its asset purchase program will be extended until December. The news of an extension overshadowed the revelation that the pace of purchases will slow to EUR60 billion from EUR80 billion, starting in March. ECB President Mario Draghi said that the central bank will buy assets that have a lower yield than the current deposit rate, which was met with a slide in the euro.

Next week will be highlighted by the December FOMC meeting, which is expected to conclude with the first rate hike since last December. The market is all but certain that a rate hike will happen next week, evidenced by the fed funds futures market, which showed a 97.2% implied probability of a rate hike on Friday afternoon.

After lagging the gains seen in the broader market since theelection, the technology sector (XLK) closed at a new all-time high today. TheNasdaq 100 is the only major index that has yet to confirm new all-time highsas mega cap technology stocks like the Facebook (FB), Amazon (AMZN) Netflix ( NFLX) and Google (GOOGL) cohort remain belowhighs hit earlier in the year. Let's not complain, the QQQ came within 0.1% of a its all-timehigh hit in October.

The semiconductor sector (SMH) opened at a new all timingafter closing at a record yesterday but lagged for most of the session, closingdown 0.5%.

Chip giant Broadcom (AVGO) opened at a new all-time highthis morning after the company reported better than expected Q4 results andguided first quarter revenue above consensus. Broadcom raised its long termoperating margin target to 45% from 40%. The company also doubled its quarterly dividend to $1.02/share. The stock quickly pulled back into the range it has been in since August after opening at record levels. The $71 billion company trades at just 13xfiscal 2017 (October) earnings estimates, which appears attractive. The dividend yield is now 2.3%. RFMD peers (who all supply chips for the iPhone) also closed lower (SWKS-3.3%, QRVO -2.3%).

InvenSense (INVN) rose 28% after Reuters reported thatJapanese firm TDK may acquire the chip maker. INVN makes motion sensors for smartphones,including Apple.

Airgain (AIRG) fell just 2% after pricing a 1.35 mln sharesat $17/share

Broker calls:

ADSK upgraded to Buy from Hold at Canaccord Genuity
GIMO to Buy from Neutral at DA Davidson
ADS downgraded to Neutral from Overweight at JP Morgan
TNET to Neutral from Overweight at JP Morgan
IL to Neutral from Buy at Ladenburg
Thalmann BTIG initiated VDSI and MITK Buy

[ReturntoSender]

From Briefing.com: 4:08 pm Plexus beats by $0.05, reports revs in-line; guides Q2 revs below consensus (PLXS) :

Reports Q1 (Dec) earnings of $0.82 per share, $0.05 better than the Capital IQ Consensus of $0.77; revenues rose 3.0% year/year to $635 mln vs the $633.93 mln Capital IQ Consensus.

PLXS won 51 Manufacturing Solutions programs during the quarter representing approximately $217 mln in annualized revenue when fully ramped into production,

Reports operating margin of 5.3%, ROIC of 17.3%.

Co purchased $7.1 mln of its shares at average price of $48.79/share during the quarter.

Co issues guidance for Q2, sees GAAP EPS of $0.71-$0.79. The Capital IQ Consensus is $0.73; sees Q2 revs of $620-$650 mln vs. $657.85 mln Capital IQ Consensus Estimate.

4:30 pm : Wednesday's trading session closed in the neighborhood of where it opened as investors generally elected to watch rather than act amid a batch of economic data and a slew of corporate news. The major averages finished mixed with the S&P 500 and the Nasdaq adding 0.2% and 0.3%, respectively, while the Dow fell 0.1%. A late burst of buying interest led by the financial sector, however, left each of the major average at, or near, their best levels of the day when the closing bell rang.

Frankly, there wasn't a lot of trading excitement throughout the session. The major indices all held to tight trading ranges, reined in by a lack of any meaningful sector leadership, a stark jump in long-term rates, and an awareness that Fed Chair Yellen was going to be speaking at 3:00 p.m. ET on the goals of monetary policy.

Ms. Yellen's speech, as it turned out, was mostly an academic exercise. She didn't provide any "new" information for the market per se, yet her reminder that interest rates are apt to creep higher provided some verbal reassurance that facilitated the positive finish for today's market.

Her speech followed a mixed batch of economic data this morning, which featured a stronger than expected Industrial Production report for December, a weaker than expected NAHB Housing Market Index for January, and the highest year-over-year increase in the Consumer Price Index (+2.1%) since June 2014.

In aggregate, Ms. Yellen's remarks and today's data didn't alter the view that the Fed will continue to abide by its projection for three rate hikes in 2017.

The financial sector (+0.8%) had a slow-developing rally today, but eventually got it in gear toward the end of the session and finished at its highs for the day. A lackluster response to better-than-expected earnings news from Goldman Sachs (GS 234.29, -1.45), Citigroup (C 57.39, -0.99), and U.S. Bancorp (USB 50.56, +0.25) kept a lid on things, yet there was underlying strength in other components that proved to be an effective offset and a driver of today's gains.

Thus far, the financial sector has been fairly slow to respond to better-than-expected earnings reports as it continues to digest a huge move following the election, which produced a 20.5% gain for the sector in the fourth quarter.

In other corporate news, Target (TGT 66.85, -4.09) lowered its Q4 guidance following disappointing holiday sales. The news had a ripple effect on other retailers, which led to a 0.3% decline in the SPDR S&P Retail ETF (XRT 44.25, -0.11, -0.39). Naturally, the consumer discretionary sector (-0.2%) felt the pressure and closed near the bottom of today's leaderboard.

The energy sector (-0.3%) also posted a lackluster performance, falling in tandem with crude oil. The commodity's downtick was forced by some renewed strength in the dollar and expectations that U.S. producers will boost output in response to the higher prices. The U.S. Dollar Index (101.25, +0.92) finished 0.9% higher while gold closed down 0.1% at $1,212.10/ozt.

The top-weighted technology sector outperformed the broader market with a 0.3% increase. The sector was driven primarily by a bullish performance from chipmakers, which rebounded from Tuesday's selling and drove a 1.4 gain in the PHLX Semiconductor Index.

The U.S. Treasury market came under selling pressure in the overnight trade -- pressure which never relented much during the regular session. Securities across the curve were on the defensive, with the belly and back end of the curve getting hit the hardest. The yield on the 5-yr note jumped 10 basis points to 2.23%. The yield on the 10-yr note, meanwhile, also increased 10 basis points to 2.42%

Reviewing today's economic data:

Total CPI rose 0.3% (Briefing.com consensus +0.3%) in December while core CPI, which excludes food and energy, increased 0.2% (Briefing.com consensus +0.2%). On a year-over-year basis, total CPI is up 2.1% and core CPI has increased 2.2%.
The key takeaway from this report is that the consumer inflation rate is steadily rising, which is supporting the Federal Reserve's tightening bias at this juncture.
December Industrial Production increased 0.8% (Briefing.com consensus +0.6%) while Capacity Utilization rose to 75.5% (Briefing.com consensus 75.4%).
The key takeaway from the report is that overall industrial production remains soft, having slipped at an annual rate of 0.6% in the fourth quarter and increasing just 0.5% year-over-year.
The NAHB Housing Market Index for January fell to 67 from a revised 69 in December (from 70).

Tomorrow's economic data will include Initial Claims (Briefing.com consensus 252,000), Housing Starts (1.193 million), and Philadelphia Fed (briefing.com consensus 15.3). All reports will be released at 8:30 a.m. ET.DJ30 -22.05 NASDAQ +16.93 SP500 +4.00 NASDAQ Adv/Vol/Dec 1679/1.52 bln/1278 NYSE Adv/Vol/Dec 1564/913 mln/1353

On Wednesday, the broader market mostly recovered from yesterday's losses. In the Nasdaq Composite, gains took the index up 16.93 points (+0.31%) to 5555.65 at the close. The S&P 500 also was in the green today, adding 4.00 points (+0.18%) to 2271.89, and the Dow Jones Industrial Average rounded out the trio lower by 22.05 points (-0.11%) to 19804.72.

Today's market data included the Total CPI reading, which rose 0.3% in December while core CPI, which excludes food and energy, increased 0.2%. On a year-over-year basis, total CPI is up 2.1% and core CPI has increased 2.2%. Also, December Industrial Production increased 0.8% while Capacity Utilization rose to 75.5%. Lastly, the NAHB Housing Market Index for January fell to 67 from a revised 69 in December (from 70).

49.60, +0.13 +0.26%) space picked up on Wednesday as action finished close to highs. Component Hewlett Packard Enterprise (HPE 22.86, +0.17 +0.75%) was among the better performing names today after acquiring SimpliVity for $650 million in cash. The company expects the acquisition to be accretive to earnings in the first full fiscal year following close. Also, HPE's HPE Software COO Chris Hsu to resign and become CEO of new entity. The spin-off/merger transaction is currently targeted to be completed by August 31. Other sectors as measured by the S&P closed the session XLF +0.83%, XLB +0.63%, XLI +0.38%, XLP +0.34%, XLRE +0.23%, XLU -0.12%, XLV -0.13%, XLY -0.18%, XLE -0.23%, IYZ -0.98% as Financials performed the best.

In the S&P 500 Information Technology (833.76, +2.72 +0.33%) space, trading recouped yesterday's losses as the finished just shy of highs of the day. Component IBM (IBM 166.80, -1.09 -0.65%) was among the weaker names in the sector today after announcing a 5-year deal with the U.S. Army to build, manage and operate a cloud solution. Other notable movers in the sector finished QRVO +3.34%, AVGO +3.30%, SWKS +3.10%, CTXS +2.93%, MU +2.67%, MCHP +2.39%, WDC +2.26%, KLAC +2.04%, LRCX +1.96%, TDC +1.84%, NVDA +1.82%, GLW +1.53%, QCOM +1.46%, ADSK +1.39%.

Other notable news items among sector components:
Adobe Systems (ADBE 108.79, +0.79 +0.73%) authorized new $2.5 billion stock repurchase program through the end of fiscal year 2019.

IBM (IBM) announced that the U.S. Army has signed a five-year, multi-million dollar contract with IBM to build, manage and operate a cloud solution for greater IT flexibility, efficiency and performance.

ServiceNow (NOW 82.85, +1.44 +1.77%) acquired DxContinuum in an all-cash transaction. Financial terms were not disclosed.

Alphabet's (GOOG 806.07, +1.46 +0.18%) Google acquired developer platform provider Fabric from

Twitter (TWTR 17.11, +0.15 +0.88%). Financial terms were not disclosed.

Viavi (VIAV 8.40, -0.09 -1.06%) approved a restructuring and global workforce reduction plan, and will reduce workforce by up to 10%.

CenturyLink (CTL 25.47, flat) was awarded a ten-year NASPO ValuePoint Cloud Solutions Master Agreement which allows CenturyLink to sell the company's cloud solutions to state and local governments.

Hewlett Packard Enterprise (HPE) to acquire SimpliVity for $650 million in cash. The company expects the acquisition to be accretive to earnings in the first full fiscal year following close. HPE's HPE Software COO Chris Hsu to resign and become CEO of new entity. The spin-off/merger transaction is currently targeted to be completed by August 31.

Avnet (AVT 47.09, +0.57 +1.23%) provided a financial outlook data for its Technology Solutions business amid the pending sale to Tech Data (TECD 84.75, +1.08 +1.29%).

In reaction to quarterly results:

ASML (ASML 122.97, +7.06 +6.09%) reported better than expected Q4 earnings and revenues of EUR1.23 and EUR1.91 billion. For Q1, the company sees revenues of about EUR1.8 billion.

TD Ameritrade (AMTD 46.65, +0.78 +1.70%) reported in-line Q1 EPS and revenues of $0.41 and $859 million, respectively. For FY17, the company sees EPS of $1.50-1.80.

ADTRAN (ADTN 22.70, +0.15 +0.67%) reported better than expected Q4 earnings and revenues of $0.21 and $163 million, respectively.

Linear Tech (LLTC 62.45, +0.11 +0.18%) -- being acquired by Analog Devices (ADI 73.01, +0.73 +1.01%) -- reported better than expected Q2 earnings of $0.54 on revenues which were in-line with market expectations at $375.82 million.

Companies scheduled to report quarterly results tonight/tomorrow morning: NFLX, PLXS, PTC/CHKP, WNS

Analyst actions:

NOW was upgraded to Positive from Mixed at OTR Global;
XLNX was downgraded to Underweight from Equal Weight at Barclays,
HIMX was downgraded to Neutral from Outperform at Credit Suisse;
EXPE was initiated with a Strong Buy at Miller Tabak,
PCLN was initiated with a Buy at Miller Tabak,
TRIP and LTRPA were initiated with a Hold at Miller Tabak,
SYNT was initiated with a Market Perform at Cowen,
PANW was initiated with a Hold at Jefferies,
XTLY was initiated with a Buy at Craig Hallum,
FTV was initiated with a Perform at Oppenheimer,
CCMP was initiated with a Hold at Aegis Capital

3:57 am ASML beats by EUR0.25, beats on revs; guides Q1 revs above consensus (ASML) :

Reports Q4 (Dec) earnings of 1.23 per share, 0.25 better than the Capital IQ Consensus of 0.98; revenues rose 33.0% year/year to 1.91 bln vs the 1.77 bln Capital IQ Consensus.
Co issues upside guidance for Q1, sees Q1 revs of ~1.8 bln vs. 1.78 bln Capital IQ Consensus Estimate.
Co sees gross margin of around 47%

[ReturntoSender]

From Briefing.com: 4:36 pm Texas Instruments beats by $0.09, beats on revs; guides Q1 EPS, rev midpoint above consensus; promotes Brian Crutcher to COO (TXN) : Reports Q4 (Dec) earnings of $0.91 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus of $0.82; revenues rose 7.1% year/year to $3.41 bln vs the $3.32 bln Capital IQ Consensus.

"Revenue increased 7% from the same quarter a year ago, as demand for our products remained strong in the automotive market. The improvement we saw in the third quarter for the industrial market continued. Demand in the personal electronics market was down slightly from a year ago. "In our core businesses,

Analog revenue grew 10% and Embedded Processing grew 6% from the same quarter a year ago. Operating margin increased in both businesses.

"Gross margin of 62.5% in the fourth quarter reflected the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter Analog production.

"Our cash flow from operations of $4.6 billion for the year again underscored the strength of our business model. Free cash flow for the year was up 6% from a year ago to $4.1 billion, and represents 30.5% of revenue, up from 29.6% a year ago.

Co issues guidance for Q1, sees EPS of $0.78-0.88, excluding non-recurring items, vs. $0.75 Capital IQ Consensus; sees Q1 revs of $3.17-3.43 bln vs. $3.21 bln Capital IQ Consensus Estimate.
TI said Brian Crutcher has been promoted to chief operating officer. Crutcher, 44, is a 21-year veteran of the company and has been executive vice president responsible for all business and sales operations, as well as for Kilby Labs and information technology. As COO, he adds oversight of TI's global technology and manufacturing operations to his current duties.

4:08 pm Seagate Tech beats by $0.24, beats on revs (STX) :
Reports Q2 (Dec) earnings of $1.32 per share, $0.24 better than the Capital IQ Consensus of $1.08; revenues fell 3.1% year/year to $2.89 bln vs the $2.83 bln Capital IQ Consensus.
gross margin of 31.8%; Gross Margin expansion 600 basis points year-over-year

"Looking ahead, we are optimistic about the long-term opportunities for Seagate's business as enterprises and consumers embrace and benefit from the shift of storage to cloud and mobile applications. Seagate is well positioned to work with the leaders in this digital transformation with a broad market-leading storage solution portfolio."

4:07 pm Cree beats by $0.07, beats on revs; guides Q3 EPS in-line, revs below consensus (CREE) :
Reports Q2 (Dec) earnings of $0.20 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.13; revenues fell 11.9% year/year to $347 mln vs the $325.09 mln Capital IQ Consensus.

Co issues guidance for Q3, sees EPS of $0.01-0.09, excluding non-recurring items, vs. $0.08 Capital IQ Consensus Estimate; sees Q3 revs of $285-315 mln vs. $315.25 mln Capital IQ Consensus Estimate.
"We delivered very good results in fiscal Q2, as revenue and non-GAAP earnings were significantly above our targeted range due to the settlement of our patent infringement and false advertising lawsuit with Feit

Electric," stated Chuck Swoboda, Cree Chairman and CEO. "The fundamentals in our business have improved over the last several quarters, and we remain focused on building a larger and more valuable LED lighting company by bringing better light to our customers."

4:20 pm : Slow and steady was the theme on Tuesday as the major averages opened flat and advanced throughout the duration of the session to close solidly higher. The Nasdaq (+0.9%) picked up steam in the afternoon to finish a step ahead of the S&P 500 (+0.7%), while the small-cap Russell 2000 (+1.7%) surpassed them all.

Investors replaced yesterday's cautious tone with a risk-on attitude. The change of heart was most obvious in the Treasury market, which lost all of Monday's gain as the 10-yr yield swung seven basis points higher to 2.47% after losing the same amount the day before. The U.S. dollar faced a similar dynamic, with the U.S. Dollar Index (100.34, +0.39) adding 0.4% after succumbing to selling pressure on Monday.

Generally speaking, investors traded Treasuries for stocks, but they were more specifically after growth-sensitive equities as all six cyclical sectors outpaced the broader market. Materials led all sectors with a 2.5% gain, setting the pace early following DuPont's (DD 76.05, +3.27) positive earnings report. The stock jumped 4.5% after the company beat earnings estimates and announced that its merger with Dow Chemical (DOW 59.64, +2.50) is expected to close in the first half of 2017.

A ways off from the materials sector was the financial space (+1.2%). The sector ended in second place after many of its top components recouped some of the losses suffered at the start of the earnings season. Technology, the only sector with more influence than financials, finished the day 1.0% higher after strength in chipmakers sent the PHLX Semiconductor Index higher by 2.0%. In the broader tech space, Yahoo! (YHOO 43.90, +1.50) was the most notable advancer after reporting favorable earnings results following yesterday's close.

Following the pro-cyclical narrative, energy added 1.0% on the back of crude oil's 0.8% advance. The commodity finished near this week's flat line, at $53.15/bbl, as reports pointing to lower production from top exporters offset an uptick in U.S. drilling.

On the non-cyclical side of the market, telecom services (-2.7%) finished the day at the bottom of the leaderboard following the disappointing earnings report from Verizon (VZ 50.12, -2.29), which also weighed on AT&T (T 41.36, -0.64). The two stocks account for a significant share of the lightly-weighted sector.

Health care (-0.7%) also finished in the red, while consumer staples bucked the trend, advancing 0.8%. The space's solid showing stemmed from an upbeat response to Kimberly Clark's (KMB 121.79, +4.81) better than expected earnings report. Sector heavyweights like like Procter & Gamble (PG 87.86, +0.90) and Coca-Cola (KO 41.90, +0.47) outperformed, adding close to 1.0% apiece.

Today's economic data was limited to December Existing Home Sales:

Existing home sales for December decreased 2.8% from November to an annualized rate of 5.49 million units while the Briefing.com consensus expected a reading of 5.55 million.
The key takeaway from the report is that inventory constraints, rising prices, and higher mortgage rates remain a key obstacle to stronger sales activity.

Tomorrow's economic data will include MBA Mortgage Applications Index at 7:00 am ET and November FHFA Housing Price Index at 9:00 am ET.

Russell 2000 +0.9% YTD
Dow Jones Industrial Average +0.8% YTD
S&P 500 +1.8% YTD
Nasdaq Composite +4.1% YTD

Yesterday's modestly weak start to the week didn't seem to faze the market today, as the Nasdaq Composite and the S&P 500 both made new all-time highs intraday. Leading the session higher at the close, the Nasdaq Composite finished 5600.96, up 48.01 points (+0.86%). The S&P 500 ended higher by 14.87 points (+0.66%) to 2280.07, and the Dow Jones Industrial Average added 112.96 (+0.57%) to 19912.71.

The lone piece of economic data today was the existing home sales reading, which for December saw sales of such homes decline 2.8% from November to an annualized rate of 5.49 million units.

The heavy-handed Technology (XLK 50.20, +0.31 +0.62%) space mirrored the resilient action in the broader market, ending just under highs. Component Corning (GLW 26.18, +1.41 +5.69%), the best performing name in the space, recorded better than expected Q4 earnings and revenues this morning, taking the stock to a new 8-year high. Other sectors as measured by the S&P closed Tuesday XLB +2.58%, XLF +1.26%, XLE +1.10%, XLI +1.00%, XLY +0.82%, XLP +0.67%, XLRE +0.03%, XLU -0.02%, XLV -0.69%, IYZ -0.74% with Materials posting the best performance, and US Telecoms sliding the worst.

To that end, the US Telecom (IYZ 35.04, -0.26 -0.74%) space was particularly weak today on the back of a worse than expected earnings performance out of bellwether Verizon (VZ 50.12, -2.29 -4.37%). Other IYZ components which underperformed today included FTR -1.98%, T -1.52%, SPOK -1.44%, VG -1.40%, CTL -0.93%, SBAC -0.71%, USM -0.67%, WIN -0.48%, LVLT -0.47%.

In the S&P 500 Information Technology (845.11, +8.61 +1.03%) space, trading also was positively influenced by the record breaking session out of the broader market. Component First Solar (FSLR 32.53, -1.13 -3.36%) was weaker today, despite this positive bias, following a downgrade of the stock to a Mkt Underperform rating from a Mkt Perform rating at JMP Securities. Other names in the space which performed up with the broader market included WDC +4.62%, MU +4.39%, NTAP +3.73%, AVGO +3.53%, HPQ +3.41%, STX +2.94%, IBM +2.85%, ADBE +2.51%, SWKS +2.33%, MSI +2.32%, INTC +2.31%.

Other notable news items among sector components:
Microsoft (MSFT 63.52, +0.56 +0.89%) named Kevin Scott as chief technology officer.

BT Group plc (BT 19.38, -5.05 -20.67%) provided an update on investigation on Italian business. The company also raised adjustments following review and lowered Group outlook for H2.

GlobalStar's (GSAT 1.48, +0.04 +2.78%) President and COO David Kagan will be leaving March 2017 to accept new position with SpeedCast.

Black Box (BBOX 13.90, -0.40 -2.80%) announced CFO Anthony Massetti will resign due to personal reasons.

Ciena's (CIEN 24.65, +0.71 +2.99%) COO Franois Locoh-Donou will step down effective on or about March 23, 2017.

LogMeIn (LOGM 106.55, -1.35 -1.25%) and Citrix (CTXS 94.37, +1.92 +2.08%) said they expect additional time will be required to obtain CPUC approval for transfer of control of GetGo and Grasshopper Group. The additional time is not expected to delay closing of the Merger.

RealPage (RP 29.90, +1.05 +3.64%) to acquire substantially all of the assets of Axiometrics for about $75 million in cash.

Booz Allen Hamilton (BAH 35.79, +0.27 +0.76%) is exploring a possible repricing for its existing Term Loan B credit facility.

In reaction to quarterly results:

Verizon (VZ) reported worse than expected Q4 EPS of $0.86 on revenues which came in in-line with market expectations at $32.34 billion. For FY17, the company sees revenues, on an organic basis with adjusted PES for FY17 expected to be similar to consolidated revenue trends.

Siliconware Precision (SPIL 7.55, -0.05 -0.66%) reported better than expected Q4 earnings of NT$0.89 on revenues of NT$22.18 billion.

SAP AG (SAP 89.63, +0.33 +0.37%) reported better than expected Q4 earnings of EUR1.52 on revenues of EUR6.72 billion. For FY17, the company sees revenues in-line with expectations at EUR23.2-23.6 billion. SAP also raised 2020 targets, expecting non-IFRS cloud subscription and support revenues of EUR8.0-8.5 billion, from EUR7.5-8.0 billion. For non-IFRS total revenues, SAP now sees EUR20-29 billion, from EUR26-28 billion by 2020. For non-IFRS operating profit, SAP now sees EUR8.5-9.0 billion, from EUR8-9 billion by 2020.

Corning (GLW) reported better than expected Q4 earnings and revenues of $0.50 and $2.55 billion, respectively.

Yahoo! (YHOO 43.90, +1.50 +3.54%) reported better than expected Q4 EPS and revenues of $0.25 and $960 million, respectively.

Companies scheduled to report quarterly results tonight/tomorrow morning: CA, CREE, LOGI, STX, TXN, TSS/APH, CVLT, OIIM, TEL, WIT

Analyst actions:

MRCY was upgraded to Buy from Neutral at BofA/Merrill,
DATA was upgraded to Buy from Neutral at Citigroup,
MKSI was upgraded to Buy from Neutral at Dougherty;
AAPL was downgraded to Equal Weight from Overweight at Barclays,
WATT was downgraded to Perform from Outperform at Oppenheimer,
MSTR was downgraded to Neutral from Buy at Citigroup,
QCOM was downgraded to Mkt Perform from Buy at Charter Equity,
FSLR was downgraded to Mkt Underperform from Mkt Perform at JMP Securities;
HQY was initiated with an Overweight at KeyBanc Capital Mkts,
EMAN was initiated with a Buy at Craig Hallum

[ReturntoSender]

From Briefing.com: 4:08 pm Amkor beats by $0.15, misses on revs; guides Q1 EPS, revs below two analyst estimate (AMKR) :

Reports Q4 (Dec) earnings of $0.42 per share, $0.15 better than the Capital IQ Consensus of $0.27; revenues rose 52.3% year/year to $1.02 bln vs the $1.04 bln two analyst estimate.

Co issues downside guidance for Q1, sees EPS of ($0.11)-$0.05 vs. $0.11 Capital IQ Consensus Estimate; sees Q1 revs of $860-940 mln vs. $964.50 mln two analyst estimate; sees gross margin of 13% to 17%

"Although the smartphone market is going through a seasonal slowdown, demand in other markets is healthy."
First quarter 2017 outlook:

4:20 pm : Another day, another record close for the major averages. The key indices backed away from their best levels during afternoon action, but still kept the bulk of their gains. The Dow (+0.7%) led the day's advance while the S&P 500 and the Nasdaq both gained 0.5%.

President Trump's upcoming tax-related announcement was yet again the driver of today's bullish sentiment. Investors have pushed the stock market higher since last Thursday when Mr. Trump promised to deliver a "phenomenal" tax reform plan in the coming weeks. Without any specific details of said plan, it's clear that investors are seeing the gesture as symbolic, a sign of the new administration's resolve in keeping the pro-growth promises of Mr. Trump's presidential campaign.

Financials (+1.1%) provided strong sector leadership throughout the morning, but lost some of their momentum in the afternoon. Industrials (+1.0%) also had a solid showing, as Caterpillar (CAT 98.50, +2.19) rallied around a recent report from U.S. Department of Homeland Security which suggested Mr. Trump's proposed barrier along the U.S./Mexico boarder may cost more than it was originally estimated.

The top-weighted technology sector (+0.7%) finished just a step ahead of the benchmark index, thanks in large part to Apple's (AAPL 133.29, +1.17) strong performance. Apple, the largest company by market cap, has added over 10.0% since reporting record revenues, earnings, and iPhone sales on January 31st.

Energy (unch) was the worst performing cyclical space as crude oil broke its three session wining streak. The commodity finished lower by 1.7% at $52.95/bbl as an uptick in U.S. production overshadowed the release of an OPEC report, which showed high compliance with last year's agreed upon production cuts. This report confirms similar findings from the International Energy Agency.

The only group to finish behind energy was the lightly-weighted telecom services sector (-1.3%) thanks to heavy losses from Verizon (VZ 48.55, -0.43) and AT&T (T 40.65, -0.73). Verizon slipped 0.9% after unveiling a new unlimited data plan while AT&T's downtick of 1.8% was partly due to the company's ongoing dispute with the Communications Workers of America.

U.S. Treasuries also finished the day in the red, leaving the 10-yr note with its fourth consecutive loss. The benchmark 10-yr yield finished two basis points higher at 2.43%.

Investors did not receive economic data on Monday. Tomorrow's lone economic report, January PPI (Briefing.com consensus 0.3%) will cross the wires at 8:30 am ET.

In addition, Fed Chair Janet Yellen will be delivering her semiannual monetary policy report to the Senate Banking Committee on Tuesday. Investors will be tuned in, looking for indications regarding the timing of the next rate hike from the FOMC.

Nasdaq Composite +7.1% YTD
S&P 500 +4.0% YTD
Dow Jones Industrial Average +3.3% YTD
Russell 2000 +2.6% YTD

NASDAQ Adv/Vol/Dec 1650/1.65 bln/1178 NYSE Adv/Vol/Dec 1768/947.4 mln/1165

3:40 pm :

Commodities ended the day lower today
Energy was especially weak
Mar crude oil ended the day -1.7% at $52.95/barrel
Natural gas was the underperformer with the front-month (Mar) closing today's session -2.6% at $2.95/MMbtu
Mar copper had a modest gain of +0.4% to finish at $2.78/lb
Apr gold slipped -0.8% to $1225.80/oz, while Mar silver ended -0.6% at $17.82/oz

The three major averages held onto record highs to open the week, after a record session on Friday. Topping the charts, the Dow Jones Industrial Average added 142.79 points (+0.70%) to 20412.16. The S&P 500 gained 12.15 points (+0.52%) to 2318.25, and the Nasdaq Composite had an equally impressive session, up 29.83 points (+0.52%) at the bell to 5763.96.

General upward action didn't stop at the broader market though, as the Technology (XLK 51.55, +0.23 +0.45%) space, too, enjoyed healthy gains on Monday. Component Activision Blizzard (ATVI 45.70, -1.53 -3.24%) was pressured today, despite broader action higher, as the stock was downgraded to an Underperform rating in the premarket session at Hilliard Lyons. Other sectors as measured by the S&P closed Monday XLF +1.14%, XLI +1.00%, XLB +0.81%, XLV +0.61%, XLU +0.51%, XLRE +0.48%, XLE +0.19%, XLY +0.09%, XLP +0.00%, IYZ -0.18% with Financials leading all others and US Telecoms under-performing.

In the S&P 500 Information Technology (871.50, +5.62 +0.65%) space, trading touched another all-time high today about the $872 level, finishing modestly under that mark. Component Seagate Tech (STX 47.80, +1.34 +2.88%) was the best performing name today behind no major catalyst with other technology bellwethers ending TSM +3.19%, QCOM +1.72%, CSCO +1.46%, ASML +1.32%, NTES +1.31%, INTC +1.30%, MSFT +1.12%.

Other notable news items in the space:
During the weekend, Verizon (VZ 48.55, -0.43 -0.88%) announced the renewal of its Verizon Unlimited plan. Customers have the option to pay $80 for unlimited data, talk and text with certain conditions, or customers can pay $45 per line for four lines for unlimited data, talk and text with certain conditions.

IBM Security (IBM 179.36, +0.68 +0.38%) announced the availability of Watson for Cyber Security, the industry's first augmented intelligence technology designed to power cognitive security operations centers (SOCs).

ParkerVision's (PRKR 2.23, +0.04 +1.83%) wholly-owned German subsidiary, ParkerVision GmbH, has amended its complaint against Apple, Inc. (AAPL 133.29, +1.17 +0.89%), Apple Distribution International and Apple Retail Germany B.V. & Co. KG adding the infringement of the German part of European Patent 1 135 853. This amended complaint also expands the accused products to include the Apple iPhone 7 and iPhone 7 Plus which use Intel's PMB5750 transceiver chip, which is based on Intel's SMARTi architecture.

Nokia (NOK 4.96, +0.08 +1.64%) is to introduce technologies that leverage licensed, unlicensed and shared spectrum for the creation of robust, private end-to-end networks for vertical industries.
NOK also announced the introduction of its 4.9G technologies by the end of 2017.
NOK also successfully carried out the world's first connection based on the 5GTF 'pre-standard', marking a further milestone in Nokia's momentum to make 5G a commercial reality.

AT&T (T 40.65, -0.73 -1.76%) and Communications Workers of America have not reached settlement. Negotiations between the two parties continue.

Zillow (ZG 34.78, +0.69 +2.04%) provided an update on court case vs. VHT. The jury awarded VHT $79,875 in actual damages and $8.24 million in statutory damages.

Volkswagen AG (VLKAY 31.71, +0.55 +1.77%) confirmed an agreement with Mobileye (MBLY 45.48, +2.16 +4.99%).

In reaction to quarterly results:

First Data (FDC 16.14, +0.32 +2.02%) reported better than expected Q4 EPS of $0.39 on revenues which missed market expectations at $2.94 billion.

Tower Semi (TSEM 22.56, +0.49 +2.22%) reported better than expected Q4 earnings of $0.52 per share on in-line revenues of $340.4 million. For Q1, TSEM sees revenue growth of about 19% year-over-year to about $330 million with an upward or downward range of 5%.

WEX (WEX 113.52, -5.76 -4.83%) reported better than expected Q4 earnings of $1.28 per share on better than expected revenues of $290.8 million. For Q1, WEX sees in-line EPS and revenues of $1.16-1.24 and $275-285 million, respectively. For FY17, the company also sees in-line EPS and revenues of $5.10-5.50 and $1.15-1.19 billion, respectively.

Companies scheduled to report quarterly results tonight/tomorrow morning: AMKR CSOD GUID PDFS QTNA RNG/AUO DBD FLIR IPGP MGI NVMI RDCM SQNS TMUS VG

Analyst actions:

MDRX was upgraded to Buy from Neutral at Dougherty,
NOK was upgraded to Mkt Perform from Mkt Underperform at Charter Equity,
AGYS was upgraded to Buy from Neutral at Sidoti;
ATVI was downgraded to Underperform from Long-Term Buy at Hilliard Lyons,
INOV was downgraded to Underperform at BofA/Merrill,
AUO was downgraded to Underweight from Neutral at JP Morgan;
WB and MOMO were initiated with a Buy at Instinet,
YY and CMCM were initiated with a Neutral at Instinet,
PMTS was initiated with a Mkt Perform at Barrington Research,
AXTI was initiated with a Buy at Dougherty

[ReturntoSender]

InvestmentHouse - What is So Hard About the Health Care Issue? (Weekend Newsletter)

http://www.investmenthouse.com/frblog.php

Indices settle down, test the SOTU rally, leave themselves in good enough
position.
- Same old story with some new twists in DC
- What is so hard about the health care issue? Free markets do actually
work, unless your goal is control.
- Pundits say market surges, pundits say the end is near. Trend is up, no
sellers, and until leaders break down in quantity, the trend continues.

A bit of a hangover after the Wednesday Trump SOTU rally.

After a big surge such as Wednesday in response to a specific catalyst such
as the excitement over the State of the Union address, you have to see how
the market reacts. Thursday was problematic, particularly on the growth
indices; DJ30 and SP500, not so much.

Friday was no great day for the stock indices, but it was good for the
upside in that the indices held, to different degrees, the Wednesday
breakout. Again it was the large cap NYSE holding up quite well thanks to
their financial components while the other indices almost tested the entire
move.

The end result, however, are some pretty decent charts and definitely the
ability to extend the new, SOTU hope higher.

Of course the same old issues emerged immediately after the hope-inspired
move: AG Sessions accused of lying during confirmation, counter accusations
of the same conduct by all senators and House reps, wiretapping of Trump's
offices and campaign with references to Watergate -- you know, the usual
business in DC. One step forward, one step to who knows where.

That leaves many pundits split. After the Wednesday breakout the bullish of
bulls are supercharged, calling for DJ30 23K by Labor Day. Others are
calling for a drop after a last upside move spurred by this latest breakout.
I believed that there would be a last leg and then a drop; thus far that
last leg is still going. The right answer? The way the market goes.

There are many reasons to anticipate a decline even as the market broke to
new highs last week. There are some breaks in leadership. Okay, 'breaks'
are not really the right word. More like leadership is getting ragged and
it needs to clean itself up or find new leaders. That is what has kept the
move going, and with semiconductors, China, oil, and small caps in general
turning choppy (medium volatility) and sporting some breaks, the market
needs to generate some new leadership.

On top of that there is another week of 60+% bullish sentiment, hitting a
cycle high on its seventh of nine weeks over 60%. Coupled with that,
however, is an interesting phenomena that occurred: wealthy investors for
some big banks, etc. sold out only to have to move back in when the rally
continued. Bulls to bears back to reluctant bulls. That prompted BAC to
opine SP500 hitting 2450 as those clients moved back in. THEN the pullback.

Right now everyone is guessing at the top. Dangerous stuff. As long as the
market pushes new leaders upside it is a good idea to play the trend with
those good moves as your dominant strategy. Pick up some downside as they
set up bearish patterns and break lower, but most money has to be focused
with the trend in place.

Yes DC has and will have its impact. If Trump is stymied in the silent coup
many claim is occurring then there will be a stock price to pay. For now it
appears the market is willing to continue on faith that there is enough
momentum to get the job done. With a poll released this weekend showing
Trump with a 53% approval rating it would seem the detractors have not made
significant inroads, at least not yet. So, the market is holding a pretty
solid uptrend, still is summoning leadership, and thus the bias and
expectation, near term, remains upside.


NEWS/ECONOMY

The news impacting the stock market boils down to this: will Trump be able
to move his marquis programs through Congress: ACA repeal, tax reform.
After that there is immigration, etc., but the first two are key. As well
as one of his apparent new initiatives, reducing the federal government
size.

He has tweeted and/or discussed plans of reducing the State Department by
roughly 40%. If he would do that to ALL federal agencies and demand the
same output in services, the federal government might start loosely
approaching the level of private sector output. No slam against public
sector workers, but in many audits the findings are the same: to much staff
for the job at hand, too much management. Cut the middle out and let the
workers do their work without so many managers supposedly managing. That
would be truly game changing and might be the counter silent coup to the
silent coup.

Anyway, with respect to the ACA, the idiots in control of the House majority
show they have learned nothing after the TTP debacle where the document was
locked in a secret room where no cameras, phones, or any writing or copying
material was allowed. You could take notes about what you read and saw but
you had to leave the notes when you left. Those without impressive
photographic memories were simply SOL. Of course most in Congress NEVER
BOTHERED to even go look at it, so I suppose it doesn't really matter.
Garbage in, garbage out, right?

So, somewhere in DC there is a room with the House majority plan for the
ACA. And it is not a repeal. It is doing the same thing just not as much.
Like lessening the tension being used on the 'rack' in a medieval dungeon,
like toning down the level of the 'agony booth' on the parallel universe in
the classic Star Trek episode 'Mirror, Mirror.' Oh, THAT will make us all
whole.

What the hell? What about just the good old free market? Look what it did
for the cost of Lasik and other non-insured procedures: costs have
plummeted, quality is excellent, and now everyone can take part. There was
no fixed overhead, no 'insurance will pay for it' cost inflator attached so
those providing the service had to get real and get prices down to what the
market would bear. That capitalism is a pretty amazing thing.

Hmm, but could it work for insurance, without massive government oversight?
How could that possibly happen. Oh, auto insurance works pretty well; not
great, but pretty well because . . . you can shop all over the country for
it. Geico and others are offering plans where you can get the coverage you
want. Oh sure, you have to actually EDUCATE yourself on what you should
have, but we are grownups or at least should be. And by golly, it seems to
work. Prices are way, way down, and frankly could go even lower if the
regulation was further reduced.

How about college accounts? You don't have to go to your state. The first
529 plans were somewhat high priced but then you could buy them anywhere.
Prices plunged, quality was at least as good.

Brokerage and financial services. You probably don't remember when the big
brokers had the market locked up. You could only trade in large blocks,
minimum of 100 shares. Commissions were astronomical so no one wanted to
trade. Then along came Charles Schwab, and after several court fights the
age of the individual investor was born. People could all of the sudden
take control of their investments. They could shop for the best deal as
they built their own wealth. Prices plunged, and competition is STILL at
play 35 years later as Fidelity just dropped its fees again, now charging
just $4.95 per stock trade with very high quality service. Spreads have
narrowed, market information has improved -- so many wonderful things for
investors.

Wow, the free market CAN work, and it MOST CERTAINLY can and will work with
health insurance. When we had HSA's that actually were worth having we had
great choices and prices. We chose low premium, high deductible plans and
could save tax free into our account. I am talking for a self-employed
family, less than $300/month with a $5K deductible for the whole family,
100% coverage after deductible was paid, no exclusions. Great healthcare,
and that was WITHOUT the ability to really shop from state to state and have
competition lower it even more. Now we pay almost $3,000/month and suffer
an effective $12,000 deductible with a separate $6K carveout for my wife.
Free market versus controlled markets.

Why then try to control the market process? Control. If you control one of
the large and important areas in a person's life, particularly healthcare,
you have a lot of say over a person's life. The governing class, whether
espousing to be liberals or conservatives, democrats or republicans,
communists or capitalists, all want power and control. What better way to
control the masses than control healthcare, education, communications (the
unchecked ability to eavesdrop on every communication), and money (required
declaration of every penny a person possesses, control of money rates, and
ultimately, eliminating cash altogether). You make the call.


THE MARKET

CHARTS

SP500, DJ30: Both are holding the upper gap point from the Wednesday
post-SOTU gap and run, showing tight doji. They are in very good position
to continue the move.

NASDAQ: Faded through the 10 day EMA Friday, but recovered to hold the 10
day EMA and a modest gain. That keeps the breakout intact, the trend up the
10 day EMA in place. Some volatility crept into NASDAQ, but it was on
mostly lower relative volume, and NASDAQ is currently holding that trend. It
can really use the chips to hang onto the trend.

SOX: No new high for SOX on the week as the SOTU address produced a bounce
off the 20 day EMA, but by Friday SOX was right back at the 20 day, closing
with a doji. The trend remains in place using that near support, but over
the past two weeks SOX turned choppy, selling back but it did manage to
close out with the trend. Limping along for now, but it is following the
other indices.

SP400: Midcaps rallied to a higher high Wednesday on the SOTU but sold half
the gain Thursday. Friday SP400 reached lower but held the 10 day EMA on
the close. That keeps the uptrend in place, but as with NASDAQ, a lot of
volatility the past 2 weeks as SP400 continued the uptrend. Lower MACD
suggests slowing momentum. SP400 will show great surge pops but then it
also shows selling sessions on their heels. Will have to hold the trend,
heal itself, then continue. As with SOX, for now it is holding on and
following the other indices.

RUTX: Closed lower Friday but fractionally, holding the 20 day EMA on the
low and showing a tight doji. That is a good hold of support, but as with
SP400, the small caps turned volatile the past 1.5 weeks after moving to a
higher high. Another new high Wednesday was immediately sold. Thus far,
however, no breakdown as it tests and holds the break over the December to
January range.


LEADERSHIP

Materials: Still volatile, surging post-SOTU, selling after that. Friday a
move higher, but not taking on the Wednesday highs. Example: CX.
Interesting thing, CX says it will bid for concrete on the border wall. LPX
is testing the 10 day EMA, looking a bit heavy after lethargic trading on
the week. USCR (concrete) rallied up to the late January high on low MACD,
some decent volumes. Trying to work, but very choppy.

Metals: Weak to end the week but some are still holding support, e.g. STLD.
Have to get the patterns back together, however. AKS showed a doji on
Friday after falling down away from resistance Thursday. AKS is not bad,
but is not the best pattern in the market by a long shot. Precious metals
suffered another week as the Fed appears ready to actually hike rates.

Semiconductors: Ups and downs. AVGO reported strong earnings on the week
and was up though even the surge was sold some. AMD gapped below the 20 day
EMA Friday, holding the mid-February closing low so we see if it can bounce.
XLNX still cannot break the pull of the 50 day MA. SWKS, MCHP, LRCX, QRVO
remain in their trends, but they have been on those trends for some time.

Financial: All financials rallied Wednesday then tested the move Thursday,
Friday rebounding to hold much of the move. C, BAC, JPM all show the same
testing action. GS similar as well. The group is in good shape.

FAANG: FB continued a trend ups the 10 day EMA but rather slow in the
uptake last week. AAPL broke higher Wednesday, held the move to the
weekend. AMZN never made it to a higher high, but did hold the 10 day EMA
on the close. NFLX broke lower Thursday, but showed a doji Friday over the
upper gap point. GOOG rallied to the January highs Wednesday, tested to the
10 day EMA Friday.

Drugs/Biotech: Still looks to be, again, an up and coming group. CELG
rallied early week, tested to the 10 day EMA Friday in a 1-2-3 test, then
rallied higher Friday off that test. AMGN is working on a nice trend up the
10 day EMA. JAZZ is in a nice 3 week test of a run higher into early
February. IMMU still looks as if it wants to break higher while CORT
continues its impressive climb up the 10 day EMA toward the target.

Oil: Breaking down as a group. APC sold to a lower low on this fade. HAL
is struggling below the 50 day MA's. CVX is trying to hold the line and MRO
is trying to set a base over the 200 day SMA, but those are works in
progress. SN is interesting in a pullback to the 50 day MA, but many have a
lot of work to do.

China: Mixed and that is a change for the worse. CTRP still looks good
over the 10 day EMA. SOHU can still pull off a nice break higher as can
VIPS and BABA. BIDU is still in the tank. SINA is struggling. NTES
struggled on the week but held the 20 day EMA Thursday.


MARKET STATS

DJ30
Stats: +2.74 points (+0.01%) to close at 21005.71

Nasdaq
Stats: +9.53 points (+0.16%) to close at 5870.75
Volume: 1.843B (-8.96%)

Up Volume: 893.07M (+255.89M)
Down Volume: 905.84M (-474.16M)

A/D and Hi/Lo: Decliners led 1.04 to 1
Previous Session: Decliners led 2.23 to 1

New Highs: 80 (-69)
New Lows: 38 (-7)

S&P
Stats: +1.2 points (+0.05%) to close at 2383.12
NYSE Volume: 825.3M (-2.38%)

A/D and Hi/Lo: Advancers led 1.07 to 1
Previous Session: Decliners led 2.73 to 1

New Highs: 65 (-61)
New Lows: 38 (+7)


SENTIMENT INDICATORS

VIX: 10.96; -0.85
VXN: 11.77; -0.94
VXO: 10.08; -1.92

Put/Call Ratio (CBOE): 0.94; -0.08. Jumped over 1.0 Thursday and Tuesday.
At this juncture that simply looks like some protection buying.


Bulls and Bears: Bulls rallied to a new cycle high while bears slipped back
a whole point. 7 of 9 weeks over 60%. Not at cycle lows for bears, but
historically low.

Bulls: 63.1 versus 61.2

Bears: 16.5 versus 17.5

Theory: When everyone is bullish and has put all their capital to work,
where does the ammunition to drive the market come from? There is always
new money to start a new year. After that is used will more money be
coming? That is the question.





Bulls: 63.1 versus 61.2
61.2 versus 61.8 versus 62.7 versus 61.8 versus 58.2 versus 60.6 versus 58.6
versus 60.2 versus 59.8 versus 59.8 versus 59.6 versus 58.8 versus 56.3
versus 55.6 versus 51.0 versus 42.9 versus 41.7 versus 47.1 versus 42.9
versus 46.1 versus 46.7 versus 45.2 versus 44.6 versus 49.0 versus 52.5
versus 55.9 versus 56.7 versus 56.2 versus 54.3 versus 52.9% versus 53.9%
versus 54.4% versus 52.5% versus 47.1% versus 41.6% versus 47.5% versus
45.9% versus 47.3% versus 45.4% versus 35.4% versus 40.2 versus 39.2

Bears: 16.5 versus 17.5
17.5 versus 17.6 versus 16.7 versus 17.6 versus 17.5 versus 17.3 versus 18.3
versus 18.4 versus 19.6 versus 19.6 versus 19.2 versus 19.6 versus 22.3
versus 21.6 versus 23.5 versus 25.7 versus 24.3 versus 23.1 versus 23.8
versus 23.1 versus 22.8 versus 23.1 versus 24.3 versus 22.6 versus 22.8
versus 20.6 Versus 20.2 versus 20.0 versus 20.9% versus 21.2% versus 21.6%
versus 23.3% versus 24.7% versus 24.5% versus 23.8% versus 23.2% versus
23.5% versus 23.8% versus 23.7% versus 24.0% versus 21.7% versus 21.6%
versus 21.7 versus 20.6% versus 21.7% versus 27.8% versus 27.8% versus 28.9%
versus 27.8% versus 30.3% versus 35.4%


OTHER MARKETS

Bonds (10 year): 2.48% versus 2.46%.
Historical: the last sub-2% rate was in November 2016 (1.867%). 2.46%
versus 2.260% versus 2.367% versus 2.31% versus 2.38% versus 2.42% versus
2.43% versus 2.42% versus 2.45% versus 2.50% versus 2.473% versus 2.43%
versus 2.41% versus 2.398% versus 2.340% versus 2.393% versus 2.41% versus
2.48% versus 2.474% versus 2.477% versus 2.44% versus 2.49% versus 2.48%
versus 2.512% versus 2.52% versus 2.467% versus 2.40% versus 2.47% versus
2.468% versus 2.422% versus 2.372%


EUR/USD: 1.60266 versus 1.05214. Jumped late week even though Yellen pretty
much confirmed a rate hike. Could it be Commerce Secretary Ross talking
about a "sensible" NAFTA deal?

Historical: 1.05214 versus 1.05327 versus 1.05710 versus 1.05877 versus
1.05616 versus 1.05830 versus 1.0557 versus 1.05474 versus 1.06108 versus
1.06665 versus 1.06148 versus 1.05762 versus 1.06023 versus 1.06411 versus
1.06557 versus 1.06825 versus 1.06814 versus 1.07219 versus 1.07880 versus
1.07605 versus 1.07892 versus 1.0791 versus 1.07294 versus 1.06957 versus
1.06843 versus 1.0683 versus 1.0756 versus 1.07274 versus 1.0761 versus
1.07027 versus 1.06394 versus 1.06381 versus 1.07114 versus 1.06450 versus
1.0624 versus 1.05982 versus 1.0555 versus 1.0585 versus 1.05346 versus
105837 versus 1.0525 versus 1.03914 versus 1.05289 versus 1.05155 versus
1.04357 versus 1.04636 versus 1.0451 versus 1.04368 versus 1.04412 versus
1.0392


USD/JPY: 114.042 versus 114.169. Rallied on the week just over the 50 day
SMA, then stalled Thursday and Friday.

Historical: 114.169 versus 113.951 versus 112.966 versus 223.982 versus
112.169 versus 112.745 versus 113.324 versus 113.399 versus 112.906 versus
113.356 versus 113.880 versus 114.306 versus 113.65 versus 113.856 versus
113.265 versus 113.401 versus 112.207 versus 112.332 versus 111.815 versus
112.567 versus 112.903 versus 112.68 versus 112.50 versus 114.493 versus
115.094 versus 114.469 versus 113.362 versus 113.850 versus 112.736 versus
114.39 versus 114.686 versus 114.538 versus 112.774 versus 114.473 versus
114.57 versus 114.70 versus 115.811 versus 116.023 versus 116.923 versus
115.93 versus 116.46 versus 117.983


Oil: 53.33, +0.72. Sold hard to the 50 day EMA then bounced Friday. Tried
the 54-55 level the prior week, stalled, then fell to support. Now it shows
if it can bounce again.


Gold: 1226.50, -6.40. Gold rallied to the 200 day SMA the prior week and
then spent the past week testing the move, falling back to the 50 day EMA
Friday.


MONDAY

The Fed has moved into its quiet time with a series of statements and
speeches about how the time is appropriate for a rate hike. If the Jobs
Report Friday comes in solid enough, then March is on for a rate hike. At
this stage of the Fed cycle and with the hope trade in place, a good report
should be met with cheer if not much rejoicing. Yea.

As noted, the trends remain in place. There is some chop and moderate
volatility in the smaller indices, but they are following the large cap NYSE
lead, and that is still upside. Financial stocks should still provide
leadership, perhaps biotechs and drugs will continue improving, and we will
see if the chips can pull out of their near term choppy trade. The market
will need more than a narrow group of leaders to seriously rally, but of
course certain indices can still push higher on a narrow band of gainers,
e.g. DJ30, SP500.

The trend remains higher with some signs of wear and tear and internal and
sentiment issues, but there is still a lack of sellers -- seller-itis -- and
without earnest sellers, the downside cannot get a foothold. Sure the
market will fade and test moves with a lack of bids, just as it is doing
now. To this point, however, the shortage of bids has been met with new
buys after a rather modest pullback.

Therefore the majority of plays you have to look at are in line with that
trend. It is noteworthy how many good plays/setups there are as that gives
you a barometer of the life of the current upside leg, i.e. if there are few
it could take more testing to better setup the continuation of the upside
move. It does not mean the uptrend is over; that would take actual
breakdowns in several leading groups, demonstrated usually by breakouts that
fail relatively quickly that then break down the pattern. That is when you
have to worry that the trend is over. Before that, it is usually just a lot
of worry for no real reason.

Have a great weekend!


SUPPORT AND RESISTANCE

NASDAQ: Closed at 5870.75

Resistance:
5912 is the March all-time high.

Support:
5800 from the February consolidation lows
5661 is the late January upper gap point
The 50 day EMA at 5664
The 50 day SMA at 5640
The 2016 trendline at 5604
5601 is the January lower gap point
The November prior all-time high at 5404
5340 is the September and October 2016 twin peaks
5287.61 is the September 2016 high
5271.36 is the August 2016 intraday prior all-time high
The 200 day SMA at 5270
5231.94 is the 2015 all-time high
5170 is the October intraday low.
5162 is the early November peak, 5176 is the December intraday peak
5100 from the April peak and early May peak
5042 is the March 2015 high
5008.57 is the early March 2015 post-bear market high
5007 is the 12/31 upper gap point from that big gap lower
4999 is the October upper gap point
4980 is the June 2016 peak


S&P 500: Closed at 2383.12

Resistance:

Support:
The 2016 trendline at 2320
2301 is the late January 2017 high
The 50 day EMA at 2305
The 50 day SMA at 2300
2282 - 2280 from January 2017
2277.53 is the December 2016 high
The November 2016 all-time high at 2213.25
2194 is the August 2016 prior all-time high
The 200 day SMA at 2187
2175 is the June 2016 high
2135 is the May 2015 all-time high
2130 is the June 2015 peak
2126 was the April 2015 prior all-time high
2120 is the June 2016 peak
2119 is the September 2016 low; February 2015 intraday high
2116 is the November 2015 high
2111 is the April 2016 recovery high
2104 is the December 2015 high
2094 is the December 2014 high
2079 is the intraday all-time high from November 2014
2062 is the January 2015 lower high
2046 is the July 2015 closing low
2040 is the March 2015 closing low


Dow: Closed at 21,005.71

Resistance:

Support:
20,126 is the January 2017 intraday high
20,101 is the late January closing high.
The 50 day EMA at 20,189
The 50 day SMA at 20,170
19,994 - 19,999 (early January high, upper gap point from late January
The 200 day SMA at 18,816
19750 is the lows of the December/January range
18,669 is the August 2016 all-time high
18,595 is the July 2016 peak
18,351 is the prior all-time high from May 2015
18,288 from March 2015
18,262 is the upper gap point from the Monday gap lower.
18,247 is the August 2016 low
18,168 is the April 2016 recovery high
18,100 to 18,181: interim peaks in the December 2014 to July 2015 range
18,016 is the June 2016 peak
17,992 is the early September low
17,978 is the November 2015 peak
17,960 is the October intraday low
17,600 is the rough bottom of the April to June range.
17,351 is the September 2014 all-time high.


ECONOMIC CALENDAR

March 6 - Monday
Factory Orders, January (10:00): 1.0% expected, 1.3% prior

March 7 - Tuesday
Trade Balance, January (8:30): -$48.5B expected, -$44.3B prior
Consumer Credit, January (15:00): $17.0B expected, $14.2B prior

March 8 - Wednesday
MBA Mortgage Index, 03/04 (7:00): 5.8% prior
ADP Employment Chang, February (8:15): 180K expected, 246K prior
Productivity-Rev., Q4 (8:30): 1.5% expected, 1.3% prior
Unit Labor Costs - R, Q4 (8:30): 1.6% expected, 1.7% prior
Wholesale Inventorie, January (10:00): -0.1% expected, 1.0% prior
Crude Inventories, 03/04 (10:30): +1.5M prior

March 9 - Thursday
Challenger Job Cuts, February (7:30): -38.8% prior
Export Prices ex-ag., February (8:30): 0.1% prior
Import Prices ex-oil, February (8:30): -0.2% prior
Initial Claims, 03/04 (8:30): 240K expected, 223K prior
Continuing Claims, 2/25 (8:30): 2066K prior
Natural Gas Inventor, 03/04 (10:30): +7 bcf prior

March 10 - Friday
Nonfarm Payrolls, February (8:30): 188K expected, 227K prior
Nonfarm Private Payr, February (8:30): 185K expected, 237K prior
Unemployment Rate, February (8:30): 4.7% expected, 4.8% prior
Avg. Hourly Earnings, February (8:30): 0.2% expected, 0.1% prior
Average Workweek, February (8:30): 34.4 expected, 34.4 prior
Treasury Budget, February (14:00): -$192.6B prior

[ReturntoSender]

From Briefing.com: 4:22 pm Closing Market Summary: Traders Appear OK With March Rate Hike (:WRAPX) :

A rate hike at next week's FOMC meeting appears to be a mere formality following the better than expected Employment Situation Report for February, which crossed the wires early Friday morning. That seemed to be alright with investors as they pushed the major averages higher to finish a slightly disappointing week on a positive note. The Nasdaq (+0.4%) led the modest advance with the S&P 500 (+0.3%) and the Dow (+0.2%) closing just a step behind. For the week, the benchmark S&P 500 lost 0.4%.

The CME Fed Watch Tool now assigns an implied probability of 93.0%, up from 88.6% on Thursday, to a rate hike at the March 14-15 FOMC meeting after the February jobs report showed that nonfarm payrolls increased by 235,000 (Briefing.com consensus 188,000) and average hourly earnings rose 0.2% (Briefing.com consensus +0.2%). The Federal Reserve will announce its decision on Wednesday at 2:00 pm ET.

Crude oil continued to command investors' attention again on Friday, falling 1.5%. The day's tumble left the energy component 8.8% lower since Wednesday's bearish EIA inventory report, which showed record high U.S. inventories. WTI crude finished the Friday session at $48.49/bbl.

All things considered, the energy sector (-0.1%) held up relatively well, finishing the day near its flat line. Real estate (-0.2%) was the only space to post a wider decline.

Conversely, at the top of the leaderboard, the industrials (+0.7%), utilities (+0.8%), and telecom services (+0.7%) spaces settled with solid gains. The top-weighted technology sector (+0.5%) also outperformed as chipmakers finished Friday's session with notable gains; the PHLX Semiconductor Index closed higher by 1.2%.

Retailers provided the consumer discretionary space (+0.1%) with some support, advancing the SPDR S&P Retail ETF (XRT 42.14, +0.31) higher by 0.7% in the wake of Ulta Beauty's (ULTA 286.42, +12.65) most recent earnings report. The company added 4.6% after reporting better than expected top and bottom lines, but it wasn't enough to keep the consumer discretionary sector from underperforming as restaurants weighed.

In the Treasury market, U.S. sovereign debt saw an uptick in buying interest following the release of the February jobs report. The benchmark 10-yr yield closed three basis points lower at 2.58%.

On a related note, the U.S. Dollar Index (101.22, -0.76) finished solidly lower, losing 0.8% in Friday's session.

Friday's economic data included the Employment Situation Report for February and the February Treasury Budget:

February nonfarm payrolls came in at 235,000 while the Briefing.com consensus expected a reading of 188,000. The prior month's reading was revised to 238,000 from 227,000. Nonfarm private payrolls added 227,000 while the Briefing.com consensus expected an increase of 185,000. The unemployment rate decreased to 4.7% (Briefing.com consensus 4.7%). Average hourly earnings increased 0.2% (Briefing.com consensus +0.2%), while the previous month's reading was revised to 0.2% (from +0.1%). The average workweek was reported at 34.4, which is in line with the Briefing.com consensus. The previous month's reading was left unrevised at 34.4.
Average hourly earnings increased 0.2%, leaving them up 2.8% year-over-year and solidifying the prevailing belief that the Federal Reserve will raise the target range for the fed funds rate at its March 14-15 FOMC meeting. That is the key takeaway from this report, followed closely by the encouraging understanding that the labor market is strengthening, which is aiding the prospects for stronger economic growth.
Average hourly earnings increased 0.2%, leaving them up 2.8% year-over-year and solidifying the prevailing belief that the Federal Reserve will raise the target range for the fed funds rate at its March 14-15 FOMC meeting. That is the key takeaway from this report, followed closely by the encouraging understanding that the labor market is strengthening, which is aiding the prospects for stronger economic growth.
The Treasury Budget for February showed a deficit of $192.0 billion versus a deficit of $192.6 billion for February 2016. The Treasury Budget data is not seasonally adjusted, so the February deficit cannot be compared to the $51.3 billion deficit registered in January.

Investors will not receive any economic data on Monday.
Nasdaq Composite +8.9% YTD
S&P 500 +6.0% YTD
Dow Jones Industrial Average +5.8% YTD
Russell 2000 +0.6% YTD

Week in Review: Taking a Breather

After posting six consecutive weekly gains, the stock market saw its third weekly decline of 2017. However, just like the other two weekly downticks, this week's retreat was minor. The S&P 500 shed 0.4%, narrowing its first quarter gain to 6.0%.

The trading week started on an unassuming note with stocks showing limited reaction to a proposal put forth by House Republicans to replace the Affordable Care Act. President Donald Trump spoke favorably about the proposal, but Republicans in Congress have yet to fully support the effort, which has led to concerns that slow progress on the health care front would stymie corporate and personal tax reform, which the market has been anxiously awaiting.

Equity indices inched lower through the first three days of the week, but on Wednesday, it was crude oil that stole the attention, falling more than 5.0% to a fresh 2017 low near $50.30/bbl. The energy component snapped out of a five-point range that has held since the start of the year, responding to the news of yet another significant inventory build. Crude's retreat continued over the next two days, leaving the energy component near $48.50/bbl at the end of the week. Oil lost more than 9.0% during the week while the energy sector surrendered 2.6% since last Friday.

There wasn't much change on the central bank front as Wednesday came and went without any major surprises from the European Central Bank. The ECB made no changes to policy and did not hint at impending tightening even though the 2017 GDP growth forecast for the Eurozone was nudged up to 1.8% from 1.7%. It is worth noting that reports that circulated on Friday suggested the ECB may begin raising rates prior to the end of its asset purchase program. The news coincided with comments from Bundesbank President Jens Weidmann, who said 2017 eurozone inflation is likely to be "far higher" than projected.

As for the Fed, the central bank is now widely expected to announce its next rate hike on March 15 after the Employment Situation report for February did not upset the overall economic picture. With the report showing the addition of 235,000 payrolls, headline expectations (Briefing.com consensus 188K) were beat handily while average hourly earnings increased an in-line 0.2%, bringing the year-over-year growth rate to 2.8%.

The fed funds futures market responded accordingly, pointing to a 93.0% implied likelihood of a rate hike being announced on Wednesday, up from last week's 79.9%.

Winding down the week, the major averages held onto some late gains despite dipping below flat lines toward the middle of the day. Ultimately, the Nasdaq Composite was the best performer, adding about 22.92 points (+0.39%) to 5861.73 today. The S&P 500 was close behind, higher by 7.73 points (+0.33%) when the bell rang to 2372.60, and the Dow Jones Industrial Average posted gains of 44.79 points (+0.21%) to 20902.98. In all, this week's moves took the major averages to +8.9%, +6.0% and +5.8% YTD, respectively.

Today, economic data included the February nonfarm payrolls reading which came in at 235,000 compared to the prior month's reading was revised to 238,000 from 227,000. Nonfarm private payrolls added 227,000 and the unemployment rate decreased to 4.7%. Average hourly earnings increased 0.2%, while the previous month's reading was revised to 0.2% (from +0.1%). The average workweek was reported at 34.4. The previous month's reading was left unrevised at 34.4.

The Technology (XLK 53.11, +0.28 +0.53%) space ended Friday with decided gains. Components FTR +2.69% LRCX +2.59% ADSK +2.23% AMAT +1.98% AVGO +1.95% CTSH +1.86% CTL +1.80% KLAC +1.54% TXN +1.52% FFIV +1.51% all outperformed today. The Utilities space XLU +0.83% was the best performer today, followed by XLI +0.61%, IYZ +0.50%, XLB +0.46%, XLP +0.46%, XLV +0.38%, XLY +0.15%, XLF -0.08%, XLRE -0.10%, XLE -0.16%.

In the S&P 500 Information Technology (897.57, +4.61 +0.52%) space, trading ended modestly higher. Component Seagate Tech (STX 47.28, +0.60 +1.29%) ended slightly higher today after announcing a restructuring plan to take place across Asia, EMEA and the Americas whereby the company would eliminate about 300 jobs.

Other notable news items among sector components:
Seagate Technology (STX) committed to an additional restructuring plan in connection with the continued consolidation of its global footprint across Asia, EMEA, and the Americas. Pursuant to the Plan, the Company intends to close its design center in Korea, which will result in the reduction of the Company's headcount by about 300 employees. This action, which the company expects to be substantially completed by the end of fiscal year 2017, is expected to result in total pre-tax charges of about $50 million, primarily in fiscal year 2017.

IBM (IBM 177.84, +0.66 +0.37%) and DSK Bank have completed the migration of DSK's banking operations to IBM's datacenters as part of a long-term IT services agreement to manage the IBM Cloud infrastructure that supports bank's operations in Bulgaria.

BT (BT 20.88, +0.76 +3.78%) and Ofcom have reached agreement on a long-term regulatory settlement that will see Openreach become a distinct, legally separate company with its own Board1, within the BT Group. The agreement is based upon voluntary commitments submitted by BT that the regulator has said meet its competition concerns.

Edgewater (EDGW 7.12, +0.20 +2.89%) named Jeffrey Rutherford as Chairman and interim President and CEO, replacing Shirley Singleton effective immediately.

ParkerVision (PRKR 2.64, +0.22 +9.09%) completed the sale of about 4.1 million shares of its common stock at an average price of $2.46 per share, for aggregate gross proceeds of $10 million, pursuant to an At Market Issuance Sales Agreement.

In reaction to quarterly results:

Finisar (FNSR 26.98, -7.92 -22.69%) reported worse than expected Q3 EPS and revenues of $0.59 and $380.6 million. The company also guided Q4 EPS and revenues worse than expected at $0.50-0.56 and $360-380 million, respectively.

VeriFone (PAY 19.10, -1.25 -6.14%) reported better than expected Q1 EPS and revenues of $0.21 and $457 million, respectively. For Q2, the company sees EPS below market expectations at $0.29 and revenues in-line at $470-474 million. For FY17, the company sees both in-line EPS and revenues of $1.35-1.39 and $1.895-1.910 billion.

Companies scheduled to report Monday morning: LEJU

Analyst actions:

INAP was upgraded to Buy from Hold at Stifel,
ASML was upgraded to Buy from Neutral at UBS,
CNSL was upgraded to Outperform from Mkt Perform at Raymond James,
HIMX was upgraded to Equal Weight from Underweight at Morgan Stanley,
YY was upgraded to Buy from Hold at T.H. Capital;
PAY was downgraded to Neutral from Buy at BTIG Research;
VIP was initiated with a Buy at ING Group

[ReturntoSender]

From Briefing.com: 4:15 pm Closing Market Summary: Financials Pace Stock Market's Tuesday Tumble (:WRAPX) :

Investors attempted to make the most out of some positive overnight developments on Tuesday morning, but a modest gain at the opening bell was the straw that broke the back of a stock market that may have extended itself a little too far. The major averages finished their worst day of 2017 solidly lower with the Nasdaq (-1.8%) leading the retreat. The S&P 500 settled lower by 1.2%, marking the first time since October that the index closed with a loss of more than 1.0%. That streak is the longest since 1995.

The financial sector (-2.9%), the poster child of the stock market's post-election rally, tumbled deep into negative territory on Tuesday, signaling the possible end of the new administration's honeymoon phase. The reversal of fortune had its roots in the inverse relationship between the yield curve and the banks. The former is flattening in a contradiction of the pro-growth narrative that has driven the stock market to record highs in the post-election period; meanwhile, the banks are getting flattened as investors re-think the high earnings expectations related to a widening yield spread that have driven many bank stocks sharply higher since the election.

As they have since the presidential election on November 8, most sectors followed the financial group's lead to finish the day solidly lower. The cyclical sectors absorbed the worst of the selling pressure with the consumer discretionary, industrials, materials, and technology sectors closing lower between 1.2% and 1.7%.

Countercyclical groups outperformed amid the day's risk-off sentiment with the rate-sensitive utilities sector (+1.4%) closing atop the day's leaderboard. The sector profited from the increased buying interest in the Treasury market, which left yields lower across the board; the benchmark 10-yr yield finished Tuesday's session three basis points lower at 2.43%.

Like its defensive peers, the health care sector (-0.8%) also outperformed the broader market, but it showed relative weakness within the countercyclical space as the debate on health care reform picked up steam in Washington. The GOP's proposed health care legislation will go the floor of the House on Thursday, but reports indicate that the Republicans will not have enough votes to move the bill to the Senate.

Investors will keep their fingers crossed, hoping that a resolution can be worked out in the nation's capital so that lawmakers can move on to tax reform--another promise that has propped up the stock market.

Tuesday's lone economic report was fourth quarter Current Account Balance:

The current account deficit for the four quarter totaled $112.4 billion while the Briefing.com consensus expected the deficit to hit $128.2 billion. The third quarter deficit was revised to $116.0 billion from $113.0 billion.

On Wednesday, investors will receive the weekly MBA Mortgage Applications Index at 7:00 ET, January FHFA Housing Price Index at 9:00 ET, and February Existing Home Sales (Briefing.com consensus 5.54 million) at 10:00 ET.
Nasdaq Composite +9.6% YTD
S&P 500 +6.0% YTD
Dow Jones Industrial Average +5.8% YTD
Russell 2000 +2.0% YTD

4:03 pm Microsemi to close its manufacturing facility in China; no material impact on earnings expected (MSCC) : Focused on lower value discrete solutions, the devices manufactured at the facility are not aligned with Microsemi's strategic direction, and company resources will be invested elsewhere in higher value, higher growth products and end markets. Customers have been notified and the process of closure is under way. No material impact on earnings for the company is expected due to this closure.

Despite opening the session in the green, all three major averages quickly turned lower as the session entered its second hour, with stock ending near lows on Tuesday. The bell rang as the Nasdaq Compsite made daily lows, shedding 107.70 points (-1.83%) to 5793.83. The S&P 500 lost 29.45 points (-1.24%) to 2344.02, and the Dow Jones Industrial Average posted losses of 237.85 (-1.14%) to 20668.01.

The Technology (XLK 52.61, -0.76 -1.43%) space was pounded lower with the broader market today. Component Facebook (FB 138.51, -1.43 -1.02%) was stark evidence of the gravity of today's decline as the stock was upgraded before the bell at BTIG Research to a 'Buy' rating yet the stock failed to hold onto morning gains.

In the S&P 500 Information Technology (891.97, -13.34 -1.47%) space, trading also finished lower despite a positive start. Component Apple (AAPL 139.85, -1.61 -1.13%) displayed weakness today despite announcing a new, cheaper iPad and a special edition of the iPhone 7 and 7 Plus.

Other notable news items among sector components:
Micron (MU 25.52, -0.69 -2.63%) won an auction for Cando Corporation assets for $89.2 million.

Apple (AAPL) announced a cheaper version of the 9.7 inch iPad; will start for $329 at lowest storage. Also announced a special edition iPhone 7 and 7 Plus model.

Seagate Technology (STX 44.51, -1.57 -3.41%), in collaboration with Synology, announced the availability of IronWolf Health Management for Synology's DiskStation Manager 6.1.
In addition to reporting quarterly results, Cheetah Mobile's (CMCM 11.07, -1.31 -10.58%) CFO, Ka Wai Andy Yeung, announced his resignation.

Accenture (ACN 124.64, +0.29 +0.23%) acquired Focus Group Europe, a United Kingdom-based, privately owned, ServiceNow consulting services provider and software reseller that is one of the largest remaining pure-play ServiceNow consulting partners in the UK. Financial details were not disclosed.

Adobe (ADBE 125.07, -1.24 -0.98%) and Microsoft (MSFT 64.21, -0.72 -1.11%) announced availability of their first set of joint solutions. These solutions will transform cross-channel experiences and campaign orchestration using Adobe Experience Cloud and Microsoft Azure, Dynamics 365 and Power BI. In addition, the companies will announce they are collaborating on an industry standard to define and unify the language for marketing, sales and services data needed to deliver digital experiences consistently at scale.
Court of Appeals for the Federal Circuit has, in a precedential opinion, unanimously upheld a lower court's ruling that Synopsys (SNPS 70.61, -0.91 -1.27%) infringed on Mentor Graphic's (MENT 37.15, -0.05 -0.13%) patent for emulation technology.

Salesforce (CRM 81.55, -1.35 -1.63%) will continue its international infrastructure expansion on the

Amazon Web Services (AMZN 843.20, -13.77 -1.61%) Cloud to the AWS Sydney Region in order to support its growing customer base in Australia.

AT&T (T 42.08, -0.33 -0.78%) and IBM (IBM 173.88, -1.86 -1.06%) announced a new AT&T IoT analytics capability, a pilot collaboration between the two companies, aiming to help AT&T's enterprise customers transform their industrial IoT data into analytic insights so they can take immediate action to improve business operations.

In reaction to quarterly results:

Canadian Solar (CSIQ 12.33, -1.22 -9.00%) reported worse than expected Q4 EPS and revenues of $0.24 and $668.4 million, respectively. For Q1, the company sees worse than expected revenues in the range of $570-590 million. For FY17, CSIQ sees better than expected revenues between $4.0-5.0 billion.

Cheetah Mobile (CMCM) reported better than expected Q4 EPS and revenues of RMB0.80 and RMB1.27 billion, respectively. For Q1, the company sees worse than expected revenues of RMB1.15-1.19 billion.

Companies scheduled to report quarterly results after the bell: ATTO, HQY, NQ

Analyst actions:

FB was upgraded to Buy from Neutral at BTIG Research,
MSI was upgraded to Buy from Hold at Jefferies,
QLYS was upgraded to Overweight from Equal Weight at Stephens;
HUBS was downgraded to Outperform from Strong Buy at Raymond James;
SQ was initiated with a Mkt Perform at Raymond James,
AXE was initiated with a Market Perform at Wells Fargo,
AKAM was initiated with a Buy at Drexel Hamilton

[ReturntoSender]

From Briefing.com: 4:20 pm Closing Market Summary: Stocks Fail To Reach Green Territory in Afternoon Rally (:WRAPX) :

An afternoon rally erased much of the stock market's morning loss, but it just wasn't enough to bring the major averages all the way back to their unchanged marks. The S&P 500 opened the second quarter of 2017 with a modest loss of 0.2% while the Nasdaq and the Dow settled lower by 0.3% and 0.1%, respectively. Meanwhile, the small-cap Russell 2000 (-1.2%) underperformed.

Stocks held close to their flat lines at the opening bell, but it didn't take long for the financial sector (-0.3%) to disrupt the equilibrium. Action within the Treasury market prompted the sector's retreat as unequally distributed buying left longer-dated issues notably higher than their shorter-dated peers. However, the yield curve balanced out a bit in the afternoon, allowing the financial group, and the broader market, to come up from its worst level of the day. The 10-yr yield (2.35%) finished four basis points lower while the 2-yr yield (1.24%) gave up only two basis points.

The remaining cyclical groups settled with modest losses. The consumer discretionary space (-0.5%) closed at the bottom of the day's leaderboard following the largely disappointing auto sales figures for the month of March. Large-cap names like Ford Motor (F 11.44, -0.20), General Motors (GM 34.17, -1.19), Fiat Chrysler (FCAU 10.41, -0.52), Toyota Motor (TM 108.52, -0.10), and Honda Motor (HMC 30.13, -0.13) finished with losses between 0.1% (Toyota) and 4.8% (Fiat Chrysler). Used-car retailer CarMax (KMX 56.67, -2.55) also struggled, dropping 4.3%, to settle as one of the worst-performing SPDR S&P Retail ETF (XRT 41.60, -0.64) components. The XRT finished lower by 1.5%.

However, the auto sales results weren't all bad as electric automaker Tesla (TSLA 298.52, +20.22) jumped 7.3% after reporting a 69.0% year-over-year increase in first quarter deliveries. TSLA shares settled at a fresh all-time high as the company surpassed Ford in market capitalization to become the second biggest automaker in the U.S.

On the countercyclical side, defensive groups generally finished ahead of the broader market as investors gave preference to the less-risky equities. The health care sector (+0.1%) finished with the telecom services space (+0.4%) atop the day's leaderboard as managed health care names like UnitedHealth (UNH 165.59, +1.58), Aetna (AET 128.74, +1.19), and Anthem (ANTM 166.49, +1.11) provided a pocket of strength.

On the data front, investors received the March ISM Index and February Construction Spending:

The ISM Index for March declined to 57.2 from an unrevised reading of 57.7 in February while the Briefing.com consensus expected a downtick to 57.0.
The key takeaway from the report is that all 18 industries reported growth in new orders for the month of March.
The key takeaway from the report is that all 18 industries reported growth in new orders for the month of March.
The Construction Spending report for February showed an increase of 0.8% while the Briefing.com consensus expected an increase of 1.0%. The prior month's reading was revised to -0.4% from -1.0%.
The key takeaway from the report is that increases were seen in both private construction spending (+0.8%) and public construction spending (+0.6%).
The key takeaway from the report is that increases were seen in both private construction spending (+0.8%) and public construction spending (+0.6%).

Tomorrow, February Trade Balance (Briefing.com consensus -$44.7 billion) and February Factory Orders (Briefing.com consensus 0.9%) will cross the wires at 8:30 ET and 10:00 ET, respectively.
Nasdaq Composite +9.5% YTD
S&P 500 +5.4% YTD
Dow Jones Industrial Average +4.5% YTD
Russell 2000 +0.9% YTD

The broader market closed out the first session of April, and Q2, with modest losses. Action began Monday in the green, but quickly turned lower as sellers took the markets to near three-day lows before midday. A steady recovery would see the three major averages reclaim a portion of the morning fall, but ultimately all three ended in the red. Leading the lower action, the Nasdaq Composite declined 17.06 points (-0.29%) to 5894.68. The S&P 500 was down 3.88 points (-0.16%) to 2358.84, while the Dow Jones Industrial Average lost about 13.01 points (-0.06%) to 20650.21.

Today's economic data included the ISM Index for March which declined to 57.2 from an unrevised reading of 57.7 in February. Additionally, the Construction Spending report for February showed an increase of 0.8%, while the prior month's reading was revised to -0.4% from -1.0%.

The Technology (XLK 53.26, -0.05 -0.09%) space closed out Monday with slight losses, failing to break out several times in the final moments. Components FTR -4.21% CSRA -3.43% WU -2.85% FSLR -2.84% AKAM -2.68% CTSH -2.13% TDC -2.12% FLIR -1.87% were pressured today. In the S&P, only the Real Estate XLRE +0.13% and the Healthcare spaces XLV +0.08% managed to escape Monday with gains, followed by XLU -0.02% XLP -0.16% XLE -0.17% XLF -0.21% XLI -0.22% XLB -0.38% XLY -0.40% IYZ -0.59%.

In the S&P 500 Information Technology (904.89, -1.32 -0.15%) space, trading also closed the first session of Q2 lower. Component Accenture (ACN 117.64, -2.24 -1.87%) was one of the worst performing names; news was out that the company acquired Genfour for an undisclosed sum. Other names in the space which closed lower today included GPN -1.67%, HPQ -1.62%, MSI -1.61%, QCOM -1.46%, SYMC -1.43%, STX -1.37%, ADSK -1.25%, APH -1.24%, XLNX -1.23%.

Other notable news items among sector components:
DXC Technology (DXC 67.95, -1.25 -1.81%) has been formed following completion of the merger between CSC (CSC 69.01, -2.14 -3.01%) and the Enterprise Services Division of Hewlett Packard Enterprise (HPE 17.57, -0.19 -1.07%).

Apple (AAPL 143.70, +0.04 +0.03%) said to have ordered 70 million OLED panels from Samsung (SSNLF 1500.00, flat) for the iPhone 8, according to the Nikkei Asian Review.

Accenture (ACN) acquired Genfour. Financial terms of the deal were not disclosed.

Sierra Wireless (SWIR 26.30, -0.25 -0.94%) acquired substantially all of the assets of GlobalTop Technology's Global Navigation Satellite System embedded module business for total cash consideration of approx. $3.2 million.

FactSet (FDS 164.22, -0.69 -0.42%) completed its acquisition of the Interactive Data Managed Solutions business from Intercontinental Exchange (ICE 59.32, -0.55 -0.92%), updates Q3 outlook.

Analyst actions:

BBRY was upgraded to Outperform from Neutral at Macquarie,
ELLI was upgraded to Outperform from Market Perform at William Blair;
ANET was downgraded to Hold from Buy at Stifel,
ACN was downgraded to Sell from Neutral at Goldman,
PCLN was downgraded to Neutral at MoffettNathanson,
NTRI was downgraded to Neutral from Buy at Sidoti;
SNAP was initiated with a Hold at Argus,
CGNX was initiated with a Buy at Goldman,
PSDO was initiated with an Outperform at Evercore ISI,
IPAS was initiated with a Buy at Ladenburg Thalmann,
AUXO was initiated with a Buy at Craig Hallum

[ReturntoSender]

From Briefing.com: 4:30 pm Closing Market Summary: Financials Lead Stock Market Higher on Monday (:WRAPX) :

The financial sector (+1.6%), and the broader market, opened the week with a nice bounce-back performance as participants returned in a buying frame of mind following the extended Easter weekend. The S&P 500 (+0.9%) finished in-line with the Dow (+0.9%) and the Nasdaq (+0.9%) and closed at its high for the session.

While geopolitical uncertainty continues to loom, especially with the French presidential election on the horizon, investors were encouraged by the relatively quiet weekend, which saw no major disruptions on the geopolitical front. The positive sentiment led to gains at the start of Monday's session, but the financial sector's solid performance was what really solidified the day's bullish tone.

Participants had an eye on bank stocks after JPMorgan Chase (JPM 85.86, +1.46) and Citigroup (C 58.99, +0.95) sold off last Thursday despite reporting better than expected earnings and revenues. That selling occurred incidentally amid a good bit of geopolitical headline angst in front of the weekend. JPM and C got back in gear today, though, and reclaimed all of Thursday's losses, which sent a bullish signal to the broader market ahead of earnings reports from Bank of America (BAC 22.81, +0.47) and Goldman Sachs (GS 226.26, +2.94) before Tuesday's open.

The financial space was also aided by the activity in the Treasury market, which produced a modest steepening of the yield curve that is beneficial for banks' net interest margins. The 10-yr yield (2.25%) added two basis points while the 2-yr yield (1.19%) decreased by one basis point. Paired with the decrease in the CBOE Volatility Index (14.65, -1.31, -8.2%), the slip in the 10-yr Treasury note offered further evidence of the risk-on sentiment that prevailed in the cash market on Monday.

Most of the financial sector's cyclical peers outperformed the broader market, including the technology (+1.0%), industrials (+1.0%), consumer discretionary (+1.0%), and real estate (+1.2%) sectors. Chipmakers had a hand in the tech group's solid showing. The PHLX Semiconductor Index finished higher by 1.3%.

Crude oil prices dropped 1.1% to finish the day at $52.63/bbl and contributed to the energy sector's (+0.2%) underperformance. The commodity's slip was attributed to profit-taking efforts in light of its recent three-week rally.

On the countercyclical side, the health care sector (+0.3%) struggled to keep pace as Eli Lilly (LLY 82.38, -3.50) and Incyte (INCY 126.07, -14.77) weighed on the space. The two companies slipped 4.1% and 10.5%, respectively, in reaction to the FDA's decision on Friday to deny the companies' rheumatoid arthritis drug Baricitinib. The iShares Nasdaq Biotechnology ETF (IBB 290.58, -0.01) settled at its flat line.

European markets were closed for Easter Monday, but that didn't stop the euro (1.0641) and the pound (1.2565) from adding 0.3% apiece against the U.S. dollar. As a result, the U.S. Dollar Index (100.23, -0.26) finished Monday's session lower by 0.3%.

On the data front, investors received several economic reports, including April Empire State Manufacturing Survey, April NAHB Housing Market Index, and April Net Long-Term TIC Flows:

The Empire Manufacturing Survey for April declined to 5.2 from the prior month's reading of 16.4. The Briefing.com consensus estimate was pegged at 13.0.
The NAHB Housing Market Index for April declined to 68 (Briefing.com consensus 70) from an unrevised reading of 71 in March.
Net Long-Term TIC Flows for April were $53.4 billion versus a revised $5.9 billion (from $6.3 billion) for March.

On Tuesday, investors will receive the March Housing Starts (Briefing.com consensus 1.256 million) and March Industrial Production (Briefing.com consensus 0.4%) reports. The two reports will cross the wires at 8:30 ET and 9:15 ET, respectively.
Nasdaq Composite +8.8% YTD
S&P 500 +4.9% YTD
Dow Jones Industrial Average +4.4% YTD
Russell 2000 +0.3% YTD

The major averages were strong on Monday, all finishing near highs after a dismal finish to the abbreviated week last week, and the extended Easter holiday. Leading the charge was the Dow Jones Industrial Average which gained 183.67 points (+0.90%) to 20636.92. The Nasdaq Composite was up 51.64 points (+0.89%) to 5856.79, while the S&P 500 added 20.06 points (+0.86%) to 2349.01.

On the data front, the Empire Manufacturing Survey for April declined to 5.2 from the prior month's reading of 16.4, while the NAHB Housing Market Index for April declined to 68 from an unrevised reading of 71 in March.

All 11 S&P sectors finished with gains today, with the Technology (XLK 52.85, +0.48 +0.92%) space finishing about middle of the pack on a strong positive Monday bias. Component NVIDIA (NVDA 99.23, +3.74 +3.92%) was the best performer today on no particular news. The rest of the S&P finished with Financials at the head XLF +1.75% followed by IYZ +1.17%, XLRE +1.15%, XLI +1.09%, XLY +1.03%, XLB +0.72%, XLP +0.71%, XLU +0.45%, XLV +0.36%, XLE +0.22%.

In the S&P 500 Information Technology (897.33, +8.65 +0.97%) space, trading posted some decent gains but still finished below the 900 level. Component Alphabet (GOOG 837.17, +13.61 +1.65%) was one of the better performing names today after it was announced that the company signed a commercial agreement with Yandex (YNDX 24.27, +1.52 +6.68%) and settlement agreement with the Federal Antimonopoly Service of Russia. Other names in the space which finished higher today included CSRA +3.03%, TDC +1.97%, LRCX +1.73%, ADS +1.53%, MU +1.46%, FB +1.46%, GPN +1.34%, AMAT +1.33%, SWKS +1.32%, VRSN +1.32%.

Other notable news items among sector components:
Nintendo (NTDOY 30.46, +1.47 +5.07%) said its Switch console is the 'fastest-selling video game system in Nintendo history'; sold more than 906K US units in March according to the NPD Group.

Hewlett Packard Enterprise (HPE 18.10, +0.11 +0.61%) completed its tender offer for Nimble Storage (NMBL).

Straight Path Comms (STRP 112.49, +20.79 +22.67%) disclosed in regulatory filing the receipt of a letter from a third party stating that it is evaluating a topping bid it believes would be more favorable to STRP's shareholders than the current transaction with AT&T (T 40.30, +0.02 +0.05%). Reuters reported that said third party is Verizon (VZ 48.81, +0.19 +0.39%).

Frontier Communications (FTR 1.97, +0.03 +1.55%) renewed its distribution agreement with EPIX.

Yandex N.V. (YNDX) confirmed the Federal Antimonopoly Service of Russia approved the settlement of the two-year old Android antitrust case in Russia.

Toshiba (TOSBF 1.89, -0.02 -1.46%) shares were volatile after NHK reported that Apple (AAPL 141.80, +0.75 +0.53%) is weighing a bid for the company's chip unit.

Apple (AAPL) has secured a permit for self-driving car technology in CA.

Square's (SQ 17.08, +0.16 +0.95%) Jack Dorsey tweeted image of SQ debit card.

Moneygram (MGI 17.79, +1.28 +7.75%) to be acquired by Alibaba Group'S (BABA 111.76, +1.55 +1.41%) Ant Financial for $18.00 per share. In response, bidder Euronet Worldwide (EEFT 84.73, +0.15 +0.18%) acknowledged it submitted a binding offer to acquire to MGI on April 14; EEFT is 'disappointed' that MoneyGram chose not to pursue a combination of the companies.

Norsat (NSAT 10.85, +0.75 +7.43%) shareholder, Privet Fund Management, affirmed its 17.6% active stake, sent a letter to the board indicating its interest in acquiring 100% of the Common Stock not already owned for $11.00 per share in cash.

MOCON Inc. (MOCO 29.70, +8.05 +37.18%) to be acquired by AMETEK (AME 53.97, +0.77 +1.45%) at $30.00/share in cash in a transaction valued at about $182 million.

Analyst actions:

PANW was downgraded to Sector Perform from Outperform at FBN,
ABIL was downgraded to Mkt Perform from Outperform at FBR,
KLAC was downgraded to Negative from Neutral at Susquehanna;
CSIQ was initiated with a Buy at Axiom Capital,
IDTI was initiated with a Neutral at Goldman,
EVBG was initiated with a Buy at Needham,
HIMX was initiated with an Outperform at Macquarie

[ReturntoSender]

From Briefing.com: 4:29 pm Closing Market Summary: Stocks Sell Off Following NY Times Article (:WRAPX) :

Equities sold off on Wednesday following a New York Times article that claims President Trump asked former FBI Director James Comey in February to shut down the bureau's investigation of former National Security Advisor Michael Flynn. The S&P 500 posted its worst one-day performance in nearly a year, losing 1.8%. The Dow (-1.8%) finished in line with the benchmark index while the Nasdaq and the Russell 2000 took the biggest hits, losing 2.6% and 2.8%, respectively. The major indices all closed at their session lows.

The NY Times cited a memo that James Comey wrote following a February 14 meeting with President Trump in the Oval Office. The White House has denied that Mr. Trump asked Mr. Comey to end the investigation with White House Press Secretary Sean Spicer saying the account relayed in the NY Times is "not accurate." Nonetheless, some lawmakers and legal experts believe this alleged incident may qualify as an obstruction of justice, which is considered an impeachable offense.

For investors, the concern at hand is that an investigation into the matter could derail tax reform efforts, which have already been slow to get on track. The stock market has risen sharply since the election, bolstered to a large degree by the belief that tax reform, deregulation, and infrastructure spending will fuel stronger economic and earnings growth.

That view has manifested itself in stretched equity valuations; therefore, the assumption today that the Trump Administration's pro-growth policy agenda could be at risk of not coming to fruition drove a broad-based selling effort as valuations got called into question.

The financial sector (-3.0%), which led the stock market's post-election rally, suffered the biggest loss today among the economic sectors. A flattening of the yield curve didn't help matters for the financial sector as it triggered worries about a compression of net interest margins and banks' earnings prospects.

U.S. Treasuries finished solidly higher across the board with the back end of the yield curve leading the way. The 10-yr yield dropped eleven basis points to 2.22% while the 2-yr yield fell six basis points to 1.24%.

The top-weighted technology sector settled just behind the financial group with a loss of 2.8%. Mega-cap technology stocks like Apple (AAPL 150.25, -5.22), Microsoft (MSFT 67.48, -1.93), Facebook (FB 144.85, -4.93), Alphabet (GOOGL 942.17, -22.44), and Amazon (AMZN 944.76, -21.31) were all on the defensive, posting losses between 2.2% and 3.4%.

The PHLX Semiconductor Index fared even worse, dropping 4.4% as profit-taking hit hard in the semiconductor industry. Including today's decline, the PHLX Semiconductor Index is still up 61.2% over the last 12 months.

Outside of financials and technology, the industrials (-2.1%) and materials (-2.1%) groups exhibited relative weakness, but most of the remaining laggards finished roughly in line with the broader market. The energy sector was an exception, losing only 1.1% thanks to crude oil's positive performance ($49.04/bbl, +0.8%).

The energy component jumped from its flat line to a solid gain following the weekly crude inventory report from the Energy Information Administration (EIA), which showed that U.S. crude stocks declined by 1.8 million barrels for the week ended May 12. While that's less of a decline than the consensus expected (-2.3 million barrels), it was seen as a positive in light of Tuesday's disappointing API reading, which showed a build of 0.9 million barrels.

In addition to energy, three sectors --real estate (+0.6%), utilities (+0.3%), and consumer staples (-0.2%)-- settled notably ahead of the broader market, benefiting from the drop in interest rates and a defensive rotation.

The CBOE Volatility Index (VIX 14.41, +3.76) spiked a whopping 35.3% amid a heightened expectation for near-term volatility in the wake of the NY Times article. The U.S. Dollar Index (97.39, -0.71, -0.7%), meanwhile, slipped to its lowest level since before the U.S. presidential election. The greenback lost 0.7% and 1.9%, respectively, against the euro (1.1157) and the Japanese yen (110.93).

On the data front, the weekly MBA Mortgage Applications Index decreased 4.1% to follow last week's 2.4% increase.

On Thursday, investors will receive several economic reports, including Initial Claims (Briefing.com consensus 240,000) at 8:30 ET, the Philadelphia Fed Index for May (Briefing.com consensus 18.5) at 8:30 ET, and April Leading Indicators (Briefing.com consensus 0.4%) at 10:00 ET. In addition, Walmart (WMT 75.12, +0.01, +0.01%) will report its quarterly earnings results before the open.
Nasdaq Composite +11.7% YTD
S&P 500 +5.3% YTD
Dow Jones Industrial Average +4.3% YTD
Russell 2000 -0.1% YTD

4:10 pm Cisco Systems beats by $0.02, reports revs in-line; guides Q4 EPS in-line, revs below consensus (CSCO) :
Reports Q3 (Apr) earnings of $0.60 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.58; revenues fell 0.5% year/year to $11.94 bln vs the $11.9 bln Capital IQ Consensus, with product revenue flat and service revenue down 2%. 31% of total revenue was from recurring offers, up from 29% for the third quarter of fiscal 2016.

Revenue by geographic segment was: Americas flat, EMEA flat, and APJC down 2%.
Product revenue performance was led by Wireless and Security, which increased by 13% and 9%, respectively. Switching revenue increased by 2%. NGN Routing, Collaboration, Data Center, and Service Provider Video revenue decreased by 2%, 4%, 5%, and 30%, respectively.

Non-GAAP total gross margin and product gross margin were 64.4% (guidance 63-64%) and 63.2%, respectively. The decrease in non-GAAP product gross margin compared with 64.5% in the third quarter of fiscal 2016 was primarily due to pricing and product mix, partially offset by continued productivity improvements.

Co issues guidance for Q4, sees EPS of $0.60-0.62, excluding non-recurring items, vs. $0.62 Capital IQ Consensus Estimate; sees Q4 revs down 4-6% to $11.88-12.13 bln vs. $12.53 bln Capital IQ Consensus Estimate.

Tech Stocks from Briefing.com

On a generally abysmal showing on Wednesday, the broader market sank better than 1.5% among all three major US indices after reports that President Trump asked then-FBI Director James Comey to end the FBI investigation into former National Security Advisor Michael Flynn. The concern at hand is that an investigation into the matter could derail tax reform efforts, which have already been slow to get on track. As such, the tech-heavy Nasdaq Composite was the worst impacted today by the reports, with the index shedding 158.63 points (-2.57%) to 6011.24 in the worst single-day point loss since mid-March. Following suit, the S&P 500 lost about 43.64 points today (-1.82%) to 2357.03, while the Dow Jones Industrial Average declined 372.82 points (-1.78%) to 20606.93.

Following a run up to all-time highs yesterday, the Technology (XLK 54.60, -1.53 -2.73%) space has seemingly come back down to earth as the space was the second worst component of the S&P only to the Financial space. Component NVIDIA (NVDA 127.72, -9.09 -6.64%) performed poorly today after search-engine giant Alphabet (GOOG 919.62, -23.38 -2.48%) announced a cloud TPU chip. As mentioned, the remaining S&P sectors were led lower by the Financials space XLF -3.15% and followed by IYZ -2.12%, XLB -2.11%, XLI -2.00%, XLY -1.58%, XLV -1.31%, XLE -0.99%, XLP -0.16%, XLU +0.25%, XLRE +0.64%.

In the S&P 500 Information Technology (934.74, -26.88 -2.80%) space, trading turned in some depressing losses following yesterday's run higher. Component Apple (AAPL 150.25, -5.22 -3.36%) was among the worst performers today after it was announced that Qualcomm (QCOM 55.36, -0.59 -1.05%) had filed a complaint against four of AAPL's iPhone and iPad manufacturers. Other names in the space which trudged lower today included MU -6.96%, EA -5.83%, AMAT -5.13%, FSLR -4.89%, SWKS -4.69%, RHT -4.51%, ATVI -4.46%, TXN -4.36%, WDC -4.20%, STX -4.18%, ADSK -4.14%, MCHP -4.03%.

Other notable news items among sector components:
Qualcomm (QCOM) filed a complaint in the US District Court against four Apple (AAPL) iPhone and iPad manufacturers for breaching their license agreements and other commitments with Qualcomm and refusing to pay for use of Qualcomm's licensed technologies.

Alphabet (GOOG) announced a new cloud TPU chip, possibly competition to NVIDIA (NVDA).

ePlus'(PLUS 73.45, -1.15 -1.54%) ePlus Technology, inc., is acquiring OneCloud Consulting, Inc. Based in Milpitas, CA, OneCloud Consulting is a versatile team of highly trained technology consultants, architects, developers and instructors.

NPD Group reported that the Nintendo (NTDOY 33.44, +0.41 +1.24%) Switch system was the best-selling video game hardware in the month of April with more than 280,000 units sold.

ServiceNow (NOW 98.56, -1.62 -1.62%) to acquire Qlue; terms not disclosed.
In addition to reporting earnings, Photronics (PLAB 10.25, -1.30 -11.26%) extended its joint venture with Dai Nippon Printing and will focus on serving semiconductor manufacturers in China.

NeoPhotonics (NPTN 8.19, -1.02 -11.07%) has appointed Sandra Waechter as Interim CFO.

In reaction to quarterly results:

Photronics (PLAB) reported worse than expected Q2 earnings and revenues of $0.03 and $108.3 million, respectively. For Q3, the company sees EPS and revenues lower than expected at $0.05-0.12 and $110-120 million, respectively.

Acxiom (ACXM 26.18, -2.03 -7.20%) reported in-line Q4 EPS of $0.15 on revenues which beat market expectations at $224.87 million. The company also guided FY18 EPS below expectations at $0.80 and sees revenues in-line for the full year at $945 million.

Companies scheduled to report quarterly results tonight/tomorrow morning: CSCO, SNPS/MBLY

Analyst actions:

WIN was upgraded to Outperform from Underperform at Raymond James;
SQ was downgraded to Neutral from Buy at BTIG Research,
AMD was downgraded to Hold from Buy at Loop Capital,
SSYS was downgraded to Hold from Buy at Needham;
OCLR was initiated with a Buy at Rosenblatt

[ReturntoSender]

From Briefing.com: 4:35 pm Closing Market Summary: Health Care & Tech Stocks Keep Losses to a Minimum (:WRAPX) :

The S&P 500 (-0.1%) bounced around its unchanged mark throughout the midweek session as the solid performances of the heavily-weighted health care (+1.2%) and technology (+0.7%) sectors helped keep the broader market's loss in check. The Dow (-0.3%) finished a tick behind the benchmark index while the tech-heavy Nasdaq (+0.7%) outperformed.

Biotechnology stocks were bullish once again on Wednesday, pushing the iShares Nasdaq Biotechnology ETF (IBB 316.10, +12.51) to its third-consecutive victory. Led by names like Incyte (INCY 133.99, +9.41), Celgene (CELG 132.83, +6.61), Vertex Pharmaceuticals (VRTX 134.83, +8.50), and Regeneron Pharmaceuticals (REGN 522.02, +26.69), the IBB climbed 4.1%, extending its week-to-date advance to 8.0%.

This week's positive performance within the biotech industry hasn't been driven by any hard news. However, there have been two factors that have helped fuel the bullish bias, namely an emerging sense that the government's attempt to rein in drug prices might not be as harmful as originally thought and buying momentum on a technical breakout from multi-month trading ranges.

Not surprisingly, the heavily-weighted health care sector (+1.2%) settled at the top of the day's leaderboard. The top-weighted technology sector (+0.7%) also finished solidly in the green amid broad strength. Adobe Systems (ADBE 144.24, +3.33) and Red Hat (RHT 98.58, +8.62) were among the top-performers in the technology group, adding 2.4% and 9.6%, respectively, after both companies reported better than expected earnings/revenues and issued upbeat guidance. Chipmakers also had a solid showing, evidenced by the 1.2% increase in the PHLX Semiconductor Index.

The consumer discretionary sector (+0.1%) was the only other group to finish ahead of the benchmark index. Reports that Nike (NKE 52.59, +1.03) and Amazon (AMZN 1002.23, +9.64) are discussing a possible direct sales relationship weighed on retailers like Foot Locker (FL 47.82, -2.51), which slipped 5.0%. The SPDR S&P Retail ETF (XRT 38.81, -0.51) settled lower by 1.3%, extending its month-to-date loss to 4.8%.

At the bottom of the leaderboard, the energy sector (-1.6%) settled in the red for the third-consecutive session as crude oil continued to slide, dropping 2.3% to $42.51/bbl. The energy component was flat in pre-market action and then moved modestly higher on headlines out of Iran suggesting the possibility of further OPEC production cuts. However, these headlines were later negated by some OPEC delegates.

The real kicker to trading sentiment was crude oil's inability to hold a positive bias following the weekly inventory report from the Department of Energy, which showed a draw of 2.5 million barrels from oil stockpiles and a 0.6 million barrel draw from gasoline inventories. The energy component held up relatively well immediately following the report, but then moved sharply lower around noon ET.

Like energy, the heavily-weighted financial sector (-0.8%) also finished solidly lower, suffering from broad weakness. Out of the remaining laggards, the telecom services (-1.2%) and materials (-1.1%) sectors were the weakest performers while the rest of the sectors finished with losses between 0.2% (real estate) and 0.7% (industrials).

In the bond market, Treasuries settled Wednesday's session relatively flat across the curve with the benchmark 10-yr yield closing unchanged at 2.16%.

Reviewing today's economic data, which included May Existing Home Sales and the weekly MBA Mortgage Applications Index:

Existing home sales for May increased 1.1% from April to an annualized rate of 5.62 million units while the Briefing.com consensus expected a reading of 5.52 million. The prior month's reading was revised to 5.56 million from 5.57 million.

The key takeaway from the report remains the same: existing home sales are being impeded by a lack of affordable supply, particularly in the lower- and mid-market price ranges.

The weekly MBA Mortgage Applications Index, which was released earlier this morning, rose 0.6% to follow last week's 2.8% increase.On Thursday, investors will receive Initial Claims (Briefing.com consensus 240,000) and the April FHFA Housing Price Index at 8:30 ET and 9:00 ET, respectively.

4:06 pm Oracle beats by $0.11, beats on revs; will guide for Q1 EPS and revenues on conference call which begins at 17:00 ET (ORCL) :

Reports Q4 (May) earnings of $0.89 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus of $0.78; Non-GAAP revenues rose 3.3% year/year to $10.94 bln vs the $10.45 bln Capital IQ Consensus. Without the impact of the U.S. dollar strengthening compared to foreign currencies, Oracle's reported GAAP Earnings Per Share would have been 2 cents higher, and non-GAAP Earnings Per Share would have been 1 cent higher.

For fiscal 2017, Cloud SaaS revenues were up 61% to $3.2 bln compared to fiscal 2016. Non-GAAP SaaS revenues were up 68% to $3.4 bln. Cloud PaaS and IaaS revenues were up 60% to $1.4 bln for both GAAP and Non-GAAP. Total cloud revenues were up 60% to $4.6 bln. Non-GAAP cloud revenues were up 66% to $4.7 bln. Cloud and on-premise software revenues were up 4% to $30.2 bln. Non-GAAP cloud and on-premise software revenues were up 5% to $30.4 bln.

"We continue to experience rapid adoption of the Oracle Cloud led by the 75% growth in our SaaS business in Q4. This cloud hyper-growth is expanding our operating margins, and we expect earnings per share growth to accelerate in fiscal 2018..."AT&T has agreed to migrate thousands of existing Oracle databases containing petabytes of data plus their associated applications workloads to the Oracle Cloud."Co will guide for Q1 EPS and revenues on conference call which begins at 17:00 ET.

Tech Stocks from Briefing.com

Ending in a split decision, the broader market was championed by the tech-heavy Nasdaq Composite which added 45.92 points (+0.74%) today to close 6233.95. The Dow Jones Industrial Average, by contrast, was the worst performer shedding 57.11 points (-0.27%) to 21410.03, while the S&P 500 lost 1.42 points (-0.06%) to 2435.61.

U.S. Treasuries were mostly unchanged today but the yield curve flattened a bit as WTI crude fell to a seven-month low. The U.S. economic data releases were limited and the big one -- May Existing Home Sales -- came out just slightly better than expected. Philadelphia Fed President Patrick Harker (FOMC voter) told the Financial Times in an interview published today that the Fed could formally announce its $4.5 billion balance sheet unwinding program at the September FOMC meeting but not if inflation fails to reverse its recent downturn.

Market data today included the existing home sales reading for May which increased 1.1% from April to an annualized rate of 5.62 million units, while the prior month's reading was revised to 5.56 million from 5.57 million. Also, the weekly MBA Mortgage Applications Index, which was released earlier this morning, rose 0.6% to follow last week's 2.8% increase.

The Technology (XLK 55.93, +0.31 +0.56%) space snapped the recent losing streak, ending higher today. Component CA Tech (CA 35.80, +4.22 +13.36%) was the best performer after reports circulated about potential M&A in the name. By contrast, the Energy XLE -1.61% space performed the worst today as commodities continued their recent slide; the remaining S&P sectors finished IYZ -1.34%, XLB -1.05%, XLF -0.82%, XLI -0.67%, XLU -0.59%, XLP -0.29%, XLRE -0.22%, XLY +0.16%, XLV +1.27%.

In the S&P 500 Information Technology (961.30, +6.43 +0.67%) space, trading finished near highs. Component Red Hat (RHT 98.58, +8.62 +9.58%) was one of the better performing names today after the company reported an impressive Q1 last night. Other names in the space which outperformed today included FSLR +5.02%, MU +3.83%, WDC +3.17%, ADBE +2.36%, AVGO +2.14%, PYPL +1.94%, TDC +1.93%, NVDA +1.52%, STX +1.51%, SWKS +1.46%, SYMC +1.37%, XLNX +1.32%, AKAM +1.32%, FB +1.09%.

Other notable news items among sector components:

CenturyLink (CTL 24.44, -0.26 -1.05%) entered into a credit agreement in connection with the pending acquisition of Level 3 Communications (LVLT 60.09, -0.37 -0.61%).

Adobe Systems (ADBE 144.24, +3.33 +2.36%) has acquired all SkyBox technology from Mettle, a global developer of best-in-class 360-degree and virtual reality software; Mettle co-founder Chris Bobotis to join Adobe.

Salesforce.com (CRM 87.56, +0.64 +0.74%) announced that Airbus (EADSY 20.87, -0.17 -0.81%) will deploy Salesforce Sales Cloud Einstein and Service Cloud Einstein as part of its global digital transformation strategy.

Western Digital (WDC 91.03, +2.80 +3.17%) issued a statement regarding Toshiba's (TOSBF 2.89, -0.07 -2.36%) Flash JV interest announcement that it selected consortium as a preferred bidder.

Synaptics (SYNA 58.04, +2.93 +5.32%) to offer $450 million aggregate principal amount of Convertible Senior Notes due 2022 in a private offering.

ARI Ntwrk Service (ARIS 6.99, +0.03 +0.43%) to be acquired by an affiliate of True Wind Capital Management for $7.10 per share in cash, or about $140 million.

Advanced Micro (AMD 13.98, +1.34 +10.60%) announced the launch of AMD EPYC 7000 series high-performance datacenter processors.

CA Tech (CA) shares performed strong today following potential M&A reports.

In reaction to quarterly results:

Adobe Systems (ADBE) reported better than expected Q2 EPS and revenues of $1.02 and $1.77 billion, respectively. For Q3, the company sees EPS and revenues ahead of market expectations at about $1.00 and about $1.815 billion, respectively.

Red Hat (RHT) reported better than expected Q1 EPS and revenues of $0.56 and $677 million, respectively. For Q2, the company sees EPS and revenues ahead of market expectations at $0.67 and $695-702 million, respectively. For FY18, management now sees EPS of $2.66-2.70 and revenues of $2.785-2.825 billion vs prior guidance of $2.60-2.64 and $2.72-2.76 billion.

Analyst actions:

RHT and VMW were upgraded to Buy from Hold at Stifel,
VRNS was upgraded to Equal Weight from Underweight at Morgan Stanley,
CDK was upgraded to Outperform from Market Perform at Wells Fargo,
PYPL was upgraded to Overweight from Sector Weight at Pacific Crest;
INTC was downgraded to Neutral from Buy at BofA/Merrill,
CYOU was downgraded to Underperform at Mizuho;
P was initiated with a Buy at Gabelli & Co,
DST was initiated with a Buy at DA Davidson

[ReturntoSender]

From Briefing.com: 4:24 pm Closing Market Summary: Down Week Ends on Shaky Note (:WRAPX) :

The stock market was on track to end Friday on its session high, but quarter-end selling during the final minutes of the action knocked the key indices off their afternoon highs. The S&P 500 added 0.2%, trimming this week's loss to 0.6%, while the Nasdaq Composite (-0.1%) underperformed, widening its weekly decline to 2.0%. Shielded from this week's underperformance in technology, the Dow Jones Industrial Average (+0.3%) shed just 0.2% for the week. The S&P 500 ended the second quarter with a gain of 2.6% while Dow climbed 3.3% and Nasdaq advanced 3.9%.

Equity indices began the day with modest gains that were a by-product of relative strength in groups like consumer discretionary (+0.6%), industrials (+0.8%), and energy (+0.4%) while top-weighted sectors like financials (-0.1%), technology (-0.1%), and health care (-0.1%) could not stay away from their flat lines. The three influential groups reluctantly followed the market higher in the afternoon, but a wave of selling in the final minutes of the session knocked the market to lows.

The discretionary sector received an early boost from NIKE (NKE 59.00, +5.83) after the apparel heavyweight beat fourth quarter expectations. The company issued cautious revenue guidance for the first quarter, but its top-line outlook for the full year was in line with expectations. In addition to reporting results, NIKE announced a pilot program to begin selling its products on Amazon (AMZN 968.00, -7.93). Shares of NIKE soared 11.0%, helping the Dow Jones Industrial Average spend the day ahead of its peers. Apparel retailers had a good showing overall and the SPDR S&P Retail ETF (XRT 40.74, +0.26) rose 0.6%.

Like the discretionary sector, industrials outperformed throughout the day. Transport stocks fueled the rally as the Dow Jones Transportation Average climbed 0.9%, extending its June gain to 4.4%.

The energy sector (+0.4%) was not far behind, catching a bid amid a 2.6% spike in crude oil, which jumped to $46.03/bbl and snapped its five-week skid. WTI crude gained 7.0% for the week while the energy sector advanced 0.7%, finishing only behind financials (week-to-date +3.3%).

The lightly-weighted materials sector (+0.5%) also finished ahead of the broader market while the remaining groups settled closer to their flat lines. Technology saw an intraday gain, which vanished during the late-afternoon slide. Micron (MU 29.86, -1.61) reported better than expected quarterly results, but the stock slid 5.1% nonetheless. The broader PHLX Semiconductor Index fell 0.5%, losing 4.9% for the week.

Treasuries held modest losses in morning action before retreating into the close. The benchmark 10-yr yield rose three basis points to 2.30%.

Economic data included Personal Income/Spending, Chicago PMI, and Michigan Sentiment:

Personal income increased 0.4% in May (Briefing.com consensus +0.3%) after a downwardly revised 0.3% increase (from 0.4%) for April. Personal spending was up 0.1%, as expected, following an unrevised 0.4% increase in April. The core PCE Price Index, which excludes food and energy, increased 0.1%, as expected.
The key takeaway is that inflation moved away from the Fed's longer-run inflation target of 2.0%, not toward it as the Fed is anticipating. That will help solidify the market's belief that the Fed doesn't have enough data-based scope to raise the fed funds rate until perhaps its December meeting at the earliest.
The Chicago Business Barometer, otherwise known as the Chicago Purchasing Managers Index, jumped to 65.7 in June (Briefing.com consensus 57.8) from 59.4 in May.
The key takeaway from the report is that the New Orders Index served as the springboard for the June jump, rising from 61.4 to 71.9 and signaling solid manufacturing demand in the Chicago Fed region.
The University of Michigan's Index of Consumer Sentiment was revised from the preliminary reading of 94.5 for June to 95.1 with the final reading. The latter was above the briefing.com consensus estimate of 94.7, but below the final May reading of 97.1.
The key takeaway from the report is that consumer confidence has dipped to its lowest level since the election, yet it still remains at favorable levels as the average level of 96.8 for the first half of the year was the best half-year average since the second half of 2000.

Monday's economic data will feature the 10:00 ET release of May Construction Spending and June ISM Index while June auto and truck sales will be reported throughout the abbreviated session, which will end at 13:00 ET.

Nasdaq Composite +14.1% YTD
S&P 500 +8.2% YTD
Dow Jones Industrial Average +8.0% YTD
Russell 2000 +4.3% YTD

Week In Review: Nasdaq Stumbles

The stock market endured some volatility, which resulted in a lower finish for the major indices. Relative weakness among technology stocks sent the Nasdaq Composite down 2.0% for the week while the S&P 500 surrendered 0.6%. The price-weighed Dow Jones Industrial Average (-0.2%) ended the week little changed.

The influential financial sector opened the week on a positive note, ending its four-session losing streak with a gain of 0.5%. However, negative performances from the heavily-weighted technology and health care groups mitigated the bullish influence of financials, leaving the benchmark index just a tick above its unchanged mark. Meanwhile, crude oil registered its third-consecutive win, climbing 0.8%.

Things got a bit more interesting on Tuesday, especially in the global bond market, where sovereign yields jumped after European Central Bank President Mario Draghi provided an upbeat assessment of eurozone inflation and growth trends. The financial group outperformed, once again, amid a steepening of the yield curve, but the ten remaining sectors finished in the red with the technology group pacing the retreat.

The midweek session brought some relief as investors bought the dip and put the S&P 500 back at its flat line for the week. The financials and technology sectors led the charge, but strength was broad-based with nine sectors settling in the green. The improvement in risk sentiment came after the ECB said that Mr. Draghi's Tuesday remarks were misinterpreted as hawkish while they were meant to strike a balance. However, longer-dated Treasuries and German bunds held their ground.

The relief rally didn't last long as the market reversed and set a fresh low for the week on Thursday. The technology sector fell to heavy profit-taking, dropping 1.8%. Selling was broad-based with only the financials and energy spaces escaping the session with wins. Banks underpinned the financial group after the Federal Reserve approved the capital plans of all 34 banks required to partake in the annual stress test.

Thursday also saw more selling in the global bond market. Treasuries tumbled in a curve-steepening trade while German bunds slid following hotter than expected inflation data out of Germany.

Friday's session featured a weak rebound in the broader market, as financials, health care, and technology struggled. NIKE (NKE) surged more than 10.0% after beating earnings expectations, which helped keep the market above water.

The fed funds futures market still points to the December FOMC meeting as the most likely time for the next rate-hike announcement with an implied probability of 54.4%, up from last week's 51.3%.
Tech Stocks from Briefing.com

Technology stocks ended a strong first half of the year on a soft note in June. The Nasdaq 100 (QQQ) is up 16% year-to-date after adding 4% in the second quarter, but this massive momentum trade is starting to break down as the index fell through its 50-day moving averages this week. The Nasdaq 100 closed the month lower (-2%) for the first time since October, ending a seven-month win streak.

Today: DJIA +0.3% to 21351; S&P 500 +0.2% to 2423; Nasdaq 100 -0.1% to $5647.

Large-cap tech stocks continue to set the tone for the market so the recent weakness in the sector that accounts for 22% of the S&P 500 and has led the market higher has some investors concerned. On the other hand, a rotation of sector leadership is quite normal and healthy in a bull market.

The valuation on most of the dominant technology giants remains reasonable, but the massive momentum trade can result in some violent corrective moves.

Outside of the mega-cap tech stocks, semiconductors have traded in similar fashion. The Semiconductor ETF (SMH) also recorded its first monthly drop (-4%) since October of last year.

Micron (MU) shares fell 5% today despite beating quarterly estimates and guiding above consensus for the second quarter in a row.

"The global trends taking shape today, including machine learning and big data analytics, are exciting and create significant opportunities for Micron." The fiscal third quarter revenue increase of 20% compared to the previous quarter was due primarily to a 14% increase in DRAM average selling prices and a 17% increase in trade NAND sales volumes. The company's overall consolidated gross margin for Q3 was ~10 percentage points higher compared to the previous quarter primarily due to increases in DRAM average selling prices and manufacturing cost reductions for both NAND and DRAM.

Cloud Computing company Tintri (TNTR) went IPO today. Tintri sells an enterprise cloud platform which is a cloud infrastructure deployed in a company's own data center but with connections to public cloud services. It offers many of the same benefits as public cloud (autonomous services, automation, self-service and analytics) but with the added control, security, and support for enterprise applications that only a private cloud can provide. The expected pricing on this deal was slashed to $7-8 from $10.50-12.50. It priced at $7 and closed up 4%.

The next interesting earnings report from the technology sector will be Barracuda Networks (CUDA) on July 10.

[ReturntoSender]

From Briefing.com:4:39 pm Closing Market Summary: S&P 500, Dow Advance to New All-Time Highs (:WRAPX) :

The stock market closed the week on a positive note with the S&P 500 (+0.5%) and the Dow (+0.4%) both advancing to new record highs. Meanwhile, the Nasdaq climbed 0.6% and finished just nine points below its record close. For the week, the S&P 500 moved higher by 1.4%, which marks its best weekly performance since the end of May.

Financial heavyweights JPMorgan Chase (JPM 92.25, -0.85, -0.9%), Citigroup (C 66.72, -0.30, -0.5%), and Wells Fargo (WFC 54.99, -0.61, -1.1%) unofficially kicked off the second-quarter earnings season on Friday morning with all three companies beating earnings per share estimates. However, the banks sold off nonetheless as their results weren't quite good enough, at least in the market's mind, to extend the six-week bullish run that they rode into Friday's session.

The heavily-weighted financial sector (-0.5%) opened the session with a sizable loss of around 1.5%, but the group immediately started chipping away. The sector reduced its loss to 1.0% within the first 30 minutes of action and nearly reached its flat line in the afternoon. Selling in the last few minutes left the group a step below its session high.

Technology--the only sector with more influence than the financial group--cruised to its sixth-consecutive win on Friday, which helped keep a lid on the financial sector's bearish influence. The tech group rose 0.9% with just about all of its components finishing in positive territory. Microsoft (MSFT 72.78, +1.01) was particularly bullish, finishing the day with a gain of 1.4%.

The health care group (+0.6%) also finished ahead of the broader market despite a relatively disappointing performance from the biotechnology industry; the iShares Nasdaq Biotechnology ETF (IBB 316.41, 0.00) finished right at its unchanged mark. As for the remaining advancers, gains ranged from 0.2% (telecom services) to 1.1% (real estate).

Crude oil locked in a weekly gain of 5.3% with a 1.1% advance on Friday. Reports of supply issues in Nigeria, which is currently exempt from the OPEC-led production cut agreement, helped underpin the commodity. WTI crude settled at a price of $46.58/bbl while the energy sector (+0.5%) settled in line with the benchmark index.

In the bond market, U.S. Treasuries rallied on weaker than expected economic data, which was highlighted by below-consensus readings for June Retail Sales (-0.2% actual vs +0.1% consensus) and June core CPI (+0.1% actual vs +0.2% consensus). The benchmark 10-yr yield finished three basis points lower at 2.32% while the 2-yr yield dropped one basis point to 1.36%.

Reviewing Friday's big batch of economic data, which included June CPI, June Retail Sales, the June Industrial Production and Capacity Utilization Report, May Business Inventories, and the preliminary reading of the University of Michigan Consumer Sentiment Index for July:

Total CPI was unchanged (Briefing.com consensus 0.0%) in June while core CPI, which excludes food and energy, increased 0.1% (Briefing.com consensus 0.2%). On a year-over-year basis, total CPI is up 1.6% and core CPI has increased 1.7%.

The key takeaway from this report is that the trend of disinflation for the Consumer Price Index, which began in March, remained intact and will force the Fed to take more time to determine if it ultimately flows through and undercuts the stable trend in core CPI.

June retail sales decreased 0.2%, which is below the Briefing.com consensus of +0.1%. The prior month's reading was revised to -0.1% from -0.3%. Excluding autos, retail sales decreased 0.2% while the Briefing.com consensus expected an increase of 0.2%. The prior month's reading was left unrevised at -0.3%.

Core retail sales is the component that factors into the PCE goods component of the GDP report, so the key takeaway from the retail sales data is that it points to weak spending on consumer goods in June and will be a negative input for Q2 GDP models.

Industrial Production increased 0.4% in June (Briefing.com consensus 0.4%) while Capacity Utilization ticked up to 76.6% (Briefing.com consensus 76.8%) from a revised reading of 76.4% in May (from 76.6%). The Industrial Production reading for May was revised to 0.1% from 0.0%.

The key takeaway from the report is that factory output in June was little different from where it was in February. Additionally, the low level of capacity utilization points to continued resource slack that will temper inflation expectations.

Business Inventories rose 0.3% in May, which is in line with the Briefing.com consensus. The prior month's reading was left unrevised at -0.2%.

The key takeaway from the report is that business inventories remain elevated relative to sales, which is standing in the way of restoring pricing power.

The preliminary reading of the University of Michigan Consumer Sentiment Index for July declined to 93.1 (Briefing.com consensus 95.1) from 95.1 in June.

The key takeaway from the report is that it is fitting a pattern seen around past cyclical peaks, whereby the assessment of current conditions hits new peaks at the same time expectations start to post significant declines.

Monday's economic data will be limited to the Empire Manufacturing Report for July (Briefing.com consensus 13.0), which will be released at 8:30 ET.

Nasdaq Composite +17.3% YTD
S&P 500 +9.9% YTD
Dow Jones Industrial Average +9.5% YTD
Russell 2000 +5.3% YTD

Week In Review: Yellen Sparks Second-Half Rally

The stock market got off to a slow start this week, but Fed Chair Janet Yellen's semiannual testimony before Congress sparked a rally in the midweek session that lingered all the way into Friday's closing bell. In the end, the S&P 500 registered its largest weekly gain since the end of May and settled Friday's session at a new record close. For the week, the S&P 500 advanced 1.4%.

For the most part, the first two sessions of the week were uneventful. The stock market did make a sharp move lower on Tuesday after Donald Trump Jr. tweeted an email exchange that involved him setting up a meeting with a Russian lawyer in an attempt to gain some possibly incriminating information on then-presidential candidate Hillary Clinton. However, the bearish sentiment didn't last and the S&P 500 entered Wednesday's session flat for the week.

Equities rallied in the midweek session after Fed Chair Janet Yellen's semiannual monetary policy testimony came off less hawkish than many were anticipating. One of the key takeaways from Ms. Yellen's prepared remarks was her acknowledgment that "the federal funds rate would not have to rise all that much further to get to a neutral policy stance." The statement created a sense that the Fed may in fact follow a shorter path of rate hikes that will keep the longer-run neutral level of the federal funds rate below levels that prevailed in previous decades.

The S&P 500 leaned on its most influential sectors, namely technology and financials, to capture its third win of the week on Thursday. The financial sector's positive performance was particularly notable as the group plays an important role in driving economic activity and had failed to keep pace with the broader market in the three prior sessions. Financials remained a focal point once again on Friday with JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup (C) headlining the earnings front.

All three of the aforementioned banks reported better than expected earnings--with JPM and C also beating revenue estimates--but the results were just not enough, at least in the market's mind, to justify the bullish six-week run that JPM, WFC, and C rode into Friday's session. The financial sector settled in the red, losing 0.5%, but the S&P 500 managed to advance to a new all-time high thanks to gains from ten of its eleven sectors.

In addition to earnings, economic data was also a focal point on Friday as below-consensus retail sales and core CPI readings for the month of June prompted a rally in the Treasury market; the benchmark 10-yr yield, which moves inversely to the price of the 10-yr Treasury note, dropped three basis points to 2.32%, ending the week with a seven-basis point loss.

Like Treasury yields, rate-hike expectations were also dialed back a bit this week. However, the fed funds futures market still points to the December FOMC meeting as the most likely time for the next rate-hike announcement with an implied probability of 50.6%. This time last week, the implied probability of a December rate hike sat at 59.1%.

Tech Stocks from Briefing.com

Technology stocks and the broader market finished a strong week on an impressive note. Technology (XLK) stocks rose 0.9% while the Nasdaq 100 (QQQ) rose 0.8%, outpacing the gains seen in the broader market (SPY +0.5%), although the DJIA and S&P 500 closed at new all-time highs while the QQQ lags after leading to the downside in the quick corrective move we saw in late June. Semiconductiors (SMH +1.2%) hit a one month high.

Some notable technology stocks warned about second quarter results:

CyberArk (CYBR) fell 16% after the company warned about second quarter results. This marks the first time the company missed expectations since the company came public almost three years ago. The company said "The primary reason for our revenue shortfall was our performance in EMEA, where certain deals that we anticipated would close did not close by the end of the quarter. We are actively working to determine and implement the appropriate steps to improve execution, drive stronger results and enhance visibility into our EMEA performance." Deutsche Bank and JP Morgan downgraded the stock this morning but the stock did find support in the low 40s.

Acacia Communications (ACIA) fell 6.5% after the company lowered Q2 guidance and guided Q3 vbelow consensus this morning. This follows a guide-up from optical peer AOI (AAOI +7%) yesterday. "Our second quarter results were adversely affected by the quality issue identified at one of our three contract manufacturers that we announced on May 31. As we previously announced, we identified a circuit board cleaning process as the likely root cause of the quality issue. This cleaning process was eliminated and manufacturing at the impacted contract manufacturer resumed. Although we began to ramp manufacturing capacity with our contract manufacturers during the quarter, we experienced supply constraints as capacity was used to both build replacement units and to meet new demand from customers for our AC400 and CFP units," said Raj Shanmugaraj, President and Chief Executive Officer of Acacia Communications. "We anticipate completing our remediation efforts with respect to the remaining impacted units during the third quarter of 2017." "While we are disappointed with the impact that the quality issue had on second quarter results, looking ahead to the third quarter, we believe we are well positioned to meet customer demand for our products This is the third disappointing quarter in row from Acacia after their first two reports after the IPO last year were incredibly strong. A 300%+ return from the IPO has now seen a 70% drawdown.

A10 Networks (ATEN) fell 16% after lowering second quarter guidance. The company said 'a number of opportunities in our pipeline did not close primarily in North America and to a lesser degree in Japan.'Twitter (TWTR +2%) hit a nine-month high after the company hired a former VP at Intuit (Ned Segal) as CFO. On Tuesday

Himax Tech (HIMX +1%) rose despite Oppenheimer downgrading the stock to Underperform. They don't see a turnaround for the core DDIC business.

Nutanix (NTNX) rose 9% after Goldman Sachs added it to their Conviction Buy List, calling it a takeover candidate.

Cowen downgraded Snap (SNAP -2.5%) to Market Perform, killing yesterday's bounce from an upgrade.

Some of the biggest tech stocks in the world will report next week. NFLX will report on Monday afternoon, IBM on Tuesday afternoon, QCOM on Wednesday, SAP and CHKP on Thursday morning and MSFT, V, EBAY, SWKS, MXIM on Thursday afternoon.

[ReturntoSender]

InvestmentHouse - Economic Data Limps In (Weekend Newsletter)

http://www.investmenthouse.com/frblog.php

- Economic data limps in, giving the Fed's new normal dovishness support.
- Stocks take solace, embracing 'bad is good' once again.
- No volume, lousy breadth, new highs for DJ30, SP500, RUTX.
- Thus far rotation is helping all, hurting few. Earnings are coming and
may change that.

Friday saw more weak economic data from the CPI to Retail Sales. I suppose
you can conclude the Fed had this data before Yellen's return to not so
lonesome dove status in her Wednesday congressional address.

The market returned as well, i.e. returned to the 'bad is good' mindset.
Why not? The Fed has its back for economic AND political risk as learned
Wednesday. So, bad news equals good news equals buy.

That sent DJ30 to another new high as SP500 and RUTX joined it. NASDAQ and
SP400 are very close as well. A new normal in normalization of rates and
all is well again in terms of buying stocks.

SP500 11.44, 0.47%
NASDAQ 38.03, 0.61%
DJ30 85.65, 0.39%
SP400 0.34%
RUTX 0.22%
SOX 1.30%

VOLUME: NYSE -12%, NASDAQ -11%. Amazingly low volume. Yes, yes, it is
summer and vacation time, but you would think the Fed's 'run to the light'
capitulation this week trade would perk up a bit.

Advance/Decline: NYSE 2.5:1, NASDAQ 1.3:1. Seriously? NASDAQ is punching
at a new high and breadth is not even 3:2? Trying to figure out how NYSE
breadth hit 5:2 given the weak gains in small and midcaps. Suffice it to
say, breadth was a putrid as volume on this move. But, in a 'ignore the
dangers, enjoy the ride' Fed and PPT-induced rally, who cares, right?


It really does appear as if the Fed and the government (through the Plunge
Protection Team established under Reagan) will do anything to keep stock
markets higher. Why? Because likely they know that if this rally ever
stops and the algos that run the big buys and sells (versus the fund
managers that used to move the markets) flip their bias, the selling would
be historic in its descent, both in rate and magnitude.


It appeared the FOMC was on a 'bold' road to normalization. A steady,
methodical pace of modest rate hikes and a reduction in the ballooned
balance sheet thanks to buying any and all junk the financial markets
produced during the financial crisis and beyond.

Ostensibly this was keeping in step with an improving economy, though as we
pointed out for the past several months, the economic activity is not
improving. The reality appeared to be the Fed realized it was way behind
the curve, and if the domestic political and geopolitical stage continued to
worsen in addition to weakening economic data (to which the Fed would not
admit), the Fed did not have enough silver bullets to forestall any new
crises that might threaten the power of those in power. Thus, the need to
hike.

Then something happened. The data was worse than expected, even worse than
the Fed could gloss over. Jobs beat expectations and that is always good
for an excuse to look the other way, but jobs lag economic activity, and of
course the jobs report these days, similar to most government economic
reports, is hardly a representation of reality. Wages were still bad,
almost 100M (and some say over 100M) working aged are out of the workforce,
GDP was weak and saw corporate profits (as measured by IRS payments) fall,
retail sales fell for a second month, Inflation remains weak (at least
according to the government), and of course the President's healthcare
reform and tax cut agenda is at best in limbo.

Wednesday Chairman Yellen produced a much more dovish economic assessment
for Congress, lowering the Fed's GDP expectations.

So, no bold move back to normalization of rates? No, just the way the
government normalizes these days: CHANGE THE DEFINITION of normal.
Apparently permanently low growth rates and low interest rates are the Fed's
new normal. As with what you hear from many in Congress and 'expert'
economists, US economic growth is now permanently mired at European levels.

This has been said before about the US. Back in the 1970's when the US went
through stagflation and other woes thanks to overregulation, many said the
US economy was a nice experiment, had a good run, but it had run its course.
Then Reagan came along, implemented pro-growth policies, reduced regulation,
returned the power regarding investment decisions (in other words, money)
back to the people, and voila, a 20 year boom started.

The US population ran full circle from free markets and the boom they
produced to largess and entitlement expectation in the almost 40 years since
the Reagan era that Clinton helped keep alive with some good policy
decisions that overcame bad policy decisions, at least for awhile. After 8
years of massive, massive regulation and taxation, the votes came in for a
return to again freer markets, less regulation, less taxation.

The sad thing is, the Administration's propensity to self-inflict wounds
combined with an organized and motivated opposition and an utterly hapless,
power-consumed Congress has road-blocked what most people in the US want:
less regulation, less taxation, and a return of the power regarding
important life decisions such as healthcare.

Thus, perhaps Yellen's and the FOMC's read on the outlook is correct.
Realizing the politics are swinging against any real reform, the Fed was
compelled to adjust its view, fearing that in Yellen's twilight the markets
might actually roll over because of the political obstacles blocking what
sparked the November to early Summer stock market rally. Yellen cannot have
that blemish on her record just before Trump appoints another for the Chair.

Alas, the Fed is political as well. Who would have thought?

The upshot, however, is the Fed again has the market's back. It was
comfortable with letting the market correct a bit, but with these new
potential perils to Yellen's legacy it is taking no chances. So, the Fed
now has the market's back for economics and politics. And Yellen's legacy.

Of course the market responded upside. A new high for DJ30 on Wednesday,
the day of Yellen's new normal. SP500 and RUTX joined in with new all-time
highs on Friday. NASDAQ and SP400 midcaps are knocking on the new high
door.

Excruciatingly light volume and not even a lot of breadth on the move to the
highs, even after the Yellen capitulation. Yet stocks climb. There is no
reason, again, to go lower if the Fed is going to back the stock market for
all reasons. Even Yellen's putative replacement, Mr. Kohn, is viewed by the
financial markets as uber-market friendly. That thought simply added
further giddiness to the upside.

Now the big names are second-guessing whether there will be a late
summer/early fall selloff as they alter their rate hike forecasts. Of
course those forecasts are worthless, but the market, despite rather
terrible internals, continues higher because the Fed has its back and there
is nowhere else to go. Savings? The Fed just knifed the elderly again;
banks should clone the democrat's healthcare commercial of a Paul Ryan
look-alike wheeling granny off the cliff and give the person doing the
pushing a Yellen look. Gold? You can buy it again. The dollar? It just
broke to a lower low out of the bottom of its channel. Hmmm. Perhaps
stocks?


THE MARKET

CHARTS

SP500: New all-time high as SP500 gapped off the 50 day EMA Wednesday and
rallied straight up. No volume, lousy breadth, but it made the new high
without the help from financials as their earnings were met with selling,
but they all recovered nicely. New high, lousy internals. Technically
something of a nightmare, but the market continues to move higher.

RUTX: New high as well though losing as much off the high on the close as
it gained. Still trying to figure out NYSE breadth gains with this kind of
move, a kind of 'excuse me' new high.

DJ30: Another new high here as well, its third straight. On no volume.

NASDAQ: Gapped higher and rallied close to a new high, just 9 points off
the early June closing high. No volume and it will be interesting to see
how NASDAQ reacts at the prior all-time high.

SOX: Broke higher over the June highs, still well off the early June peak.
Up 6 of 8 sessions.

SP400: The small caps touched the June all-time high then faded the gain.
5 of 6 days up, moving off the 50 day MA double bottom formed in June. Not
a bad pattern, new all-time high appears imminent, even with pathetic volme.


LEADERSHIP

Biotechs/Drugs: Overall solid on the week with some good moves Friday, e.g.
DVAX, AMGN. TTPH, AGEN, MNTA and others still look very good.

China: Some very good moves on the week and some on Friday. BABA continued
upside through Friday. YY is one we picked up Wednesday and it shot higher
9% Friday. YNDX gapped massively; could not buy it. NTES started a good
move though Thursday tested back to the 10 day EMA. Solid overall.

FAANG: Helped lead NASDAQ higher Friday, adding more gains. GOOG filled
the late June gap lower. AMZN is in a very nice test after approaching the
prior high. AAPL continued higher to the 50 day SMA. FB gapped a bit higher
to a doji. NFLX added more upside on its rebound.

Financial: Gapped lower on the JPM, C, WFC, GS earnings, these stocks did a
credible job of recovering off the opening lows. C puts in a very nice doji
with tail at the 20 day EMA. JPM gapped to the 20 day EMA then rebounded
sharply. Not bad, still showing good patterns.

Chips: Still recovering. LRCX edged higher on low volume in its week-plus
move. AMAT edged higher as well along with SWKS. AMD, MU faded some on the
week, moved higher Friday.

Metals: Faded some Friday but overall a solid week, maintaining good
patterns. SCHN, STLD, CENX, FCX.

Manufacturing, Machinery, Construction, Materials: Overall a decent week
though not hugely powerful. TEX broke to a higher rally high. MDR rallied
nicely on the week. HOLI rallied, still holding a good pattern.

Energy: Still well down in its selling but once again attempting to build a
foundation to move up. APA, HOS, SPN, PTEN, HAL. Possible, we will see.


MARKET STATS

DJ30
Stats: +84.65 points (+0.39%) to close at 21637.74

Nasdaq
Stats: +38.03 points (+0.61%) to close at 6312.47
Volume: 1.62B (-10.5%)

Up Volume: 1.11B (+167.28M)
Down Volume: 483.29M (-351.3M)

A/D and Hi/Lo: Advancers led 1.3 to 1
Previous Session: Advancers led 1.01 to 1

New Highs: 151 (+45)
New Lows: 36 (-9)

S&P
Stats: +11.44 points (+0.47%) to close at 2459.27
NYSE Volume: 674.3M (-12.22%)

A/D and Hi/Lo: Advancers led 2.49 to 1
Previous Session: Advancers led 1.09 to 1

New Highs: 187 (+66)
New Lows: 8 (-4)


SENTIMENT INDICATORS

VIX: 9.51; -0.39
VXN: 13.8; -0.82
VXO: 8.64; +0.24

Put/Call Ratio (CBOE): 0.84; -0.03


Bulls and Bears: Bulls slip to match the lows of 2017. Hit highs in early
2017, now bulls are falling but surely the Fed's largesse will bounce them
back up. Right?

Bulls: 50.0 versus 52.5

Bears: 18.6 versus 18.8

Theory: When everyone is bullish and has put all their capital to work,
where does the ammunition to drive the market come from? There is always
new money to start a new year. After that is used will more money be
coming? That is the question.





Bulls: 50.0 versus 52.5
52.5 versus 54.9 versus 51.5 versus 50.00 versus 55.8 versus 50.00 versus
51.9 versus 58.1 versus 58.7 versus 58.5 versus 54.7 versus 51.9 versus 56.3
versus 55.8 versus 49.5 versus 56.7 versus 53.4 versus 57.7 versus 63.1
versus 61.2 versus 61.8 versus 62.7 versus 61.8 versus 58.2 versus 60.6
versus 58.6 versus 60.2 versus 59.8 versus 59.8 versus 59.6 versus 58.8
versus 56.3 versus 55.6 versus 51.0 versus 42.9 versus 41.7 versus 47.1
versus 42.9 versus 46.1 versus 46.7 versus 45.2

Bears: 18.6 versus 18.8
18.8 versus 18.6 versus 18.3 versus 19.2 versus 18.3 versus 17.1 versus 17.3
versus 17.9 versus 17.9 versus 18.3 versus 17.5 versus 18.3 versus 18.1
versus 17.3 versus 13.75 versus 17.3 versus 16.5 versus 17.5 versus 17.6
versus 16.7 versus 17.6 versus 17.5 versus 17.3 versus 18.3 versus 18.4
versus 19.6 versus 19.6 versus 19.2 versus 19.6 versus 22.3 versus 21.6
versus 23.5 versus 25.7 versus 24.3 versus 23.1 versus 23.8 versus 23.1
versus 22.8 versus 23.1 versus 24.3


OTHER MARKETS

Bonds: 2.332 versus 2.346%. Bonds gapped sharply higher, hitting 2.28% on
the 10 year, before failing at the 50 day MA and falling back to close at
the 200 day MA. Tried to rally on the Yellen dovishness but having a hard
time advancing the move.

Historical: the last sub-2% rate was in November 2016 (1.867%). 2.346%
versus 2.316% versus 2.361% versus 2.375% versus 2.375% versus 2.368% versus
2.34% versus 2.304% versus 2.268% versus 2.20% versus 2.140% versus 2.140%
versus 2.148% versus 2.165% versus 2.156% versus 2.191% versus 2.155% versus
2.162% versus 2.209% versus 2.21% versus 2.21% versus 2.19% versus 2.176%
versus 2.14% versus 2.183% versus 2.154% versus 2.21% versus 2.20%


EUR/USD: 1.14672 versus 1.13986

Historical: 1.13986 versus 1.14335 versus 1.14682 versus 1.13964 versus
1.14010 versus 1.14220 versus 1.13508 versus 1.13710 versus 1.13510 versus
1.14208 versus 1.14432 versus 1.13786 versus 1.13409 versus 1.11834 versus
1.11928 versus 1.11484 versus 1.11670 versus 1.11346 versus 1.11419 versus
1.11968 versus 1.11466 versus 1.12213 versus 1.12086 versus 1.11930 versus
1.11965 versus 1.1199 versus 1.12491 versus 1.12798 versus 1.12684 versus
1.12811 versus 1.12181 versus 1.12547 versus 1.11768 versus 1.11810 versus
1.12148 versus 1.12240 versus 1.11868 versus 1.12390 versus 1.11916 versus
1.23077 versus 1.10985 versus 1.11557 versus 1.10862 versus 1.09833 versus
1.09328 versus 1.08655 versus 1.08671


USD/JPY: 112.536 versus 113.314. Dollar tested on the week then fell hard
Frida through the 200 day SMA.

Historical: 113.314 versus 113.152 versus 113.929 versus 114.063 versus
113.913 versus 113.126 versus 113.253 versus 113.270 versus 112.413 versus
111.993 versus 112.340 versus 112.24 versus 111.943 versus 111.299 versus
111.357 versus 111.278 versus 111.470 versus 111.729 versus 110.873 versus
110.854 versus 109.560 versus 110.060 versus 109.97 versus 110.334 versus
110.299 versus 109.355


Oil: 46.54, +0.46. Oil rallied back up to the 50 day MA Friday after
failing at that level two weeks back. Faded, put in a higher low, rallied
back. Now if the range is going to hold, oil should continue the break
higher in the range.


Gold: 1227.50, +10.20. Gold broke below the May low last week, rebounded
to recover it this week, gratis Yellen. Tapped the 200 day SMA on the high
then faded the gain. In a range and trying to roll back up from the lows.


MONDAY

NYSE indices were building patterns but were sluggish, not going anywhere.
NASDAQ and SOX started with a relief move after 2 weeks of selling. Then
that relief move took on new life Wednesday with the release of the Yellen
testimony to Congress. Wednesday to Friday those two put in solid moves.
Friday saw the NYSE indices coming around now as well, indeed beating SOX
and NASDAQ to new highs simply, however, because they did not rally before
or sell; they just were.

NASDAQ will be bumping the early June high to start the week with low, low
volume and MACD well, well lower as NASDAQ tests the prior high.
Technically it doesn't have a lot of power, and indeed the NYSE indices rose
on low volume and narrow breadth. Yet the Fed is there along with the PPT,
and the market has put in another recovery.

They may be ready for a test of the week to the upside though whether it is
more than a test becomes less likely now that the Fed is running cover. So,
we see if there is a test we can use to exit some plays and then set up new
upside buys. If a test is just a test, then we have new upside entries. If
not, if the rebound was just the last bit of fluff and rolls over hard, then
we will have some downside plays as well.

Of course, not everything has to fall. Rotation has given to some, taken
from others. It could return, but again, with the Fed becoming more dovish,
new money may enter the market allowing all areas to rise. That is not all
that evident yet given the very, very light trade, but both scenarios are
something to keep in mind when watching the market action this coming week.

Have a great weekend!


SUPPORT AND RESISTANCE

SUPPORT AND RESISTANCE

NASDAQ: Closed at 6312.47

Resistance:
6341.70 is the all-time high from early June.

Support:
6300 is the mid-June interim high
6205 is the late May all-time high
The 50 day EMA at 6153
The 2016 trendline at 6050
5996 is the recent May 2017 low
5937 is the all-time high from April
5915 is the tops of the March to April 2017 range
5910 is the lower gap point from mid-April
5800 from the February consolidation lows
The 200 day SMA at 5729
5661 is the late January upper gap point
5601 is the January lower gap point
The November prior all-time high at 5404
5340 is the September and October 2016 twin peaks
5287.61 is the September 2016 high
5271.36 is the August 2016 intraday prior all-time high
5231.94 is the 2015 all-time high
5170 is the October intraday low.
5162 is the early November peak, 5176 is the December intraday peak
5100 from the April peak and early May peak
5042 is the March 2015 high
5008.57 is the early March 2015 post-bear market high
5007 is the 12/31 upper gap point from that big gap lower


S&P 500: Closed at 2459.27

Resistance:

Support:
2453.46 is the all-time closing high
2439 is the early June prior all-time closing high
The 50 day EMA at 2417
2406 is the all-time high from May 2017
2401 is the March 2017 all-time high
2352 is the recent May 2017 low
2348 is the April 2017 lower gap point
2329 is the March and April twin lows
2322 is the March 2017 low
2319 is the 78% Fibonacci retracement
The 200 day SMA at 2306
2301 is the late January 2017 high
2298 is the late January 2017 high
2282 - 2280 from January 2017
2277.53 is the December 2016 high
The November 2016 all-time high at 2213.25
2194 is the August 2016 prior all-time high
2175 is the June 2016 high


Dow: Closed at 21,637.74

Resistance:

Support:
21,535 is the all-time high
The 50 day EMA at 21,224
21,169 is the March 2017 all-time high
20,553 is the lows of the week of May 15
20,547 is the lower gap point from late April 2017
20,412 is the March 2017 low
20,400 is the mid-April 2017 low.
20,126 is the January 2017 intraday high
The 200 day SMA at 20,121
20,101 is the late January closing high.
19,994 - 19,999 (early January high, upper gap point from late January
19750 is the lows of the December/January range
19,732 is the January 2017 low
18,669 is the August 2016 all-time high
18,595 is the July 2016 peak
18,351 is the prior all-time high from May 2015

[ReturntoSender]

Wall Street Ends Three-Day Slide
11-Aug-17 16:30 ET
Dow +14.31 at 21858.32, Nasdaq +39.68 at 6256.53, S&P +3.11 at 2441.28

https://www.briefing.com/investor/markets/stock-market-update/2017/8/11/wall-street-ends-threeday-slide.htm

[BRIEFING.COM] The stock market's three-day slide came to an end on Friday, but just barely, as the S&P 500 (+0.1%) eked out a narrow victory. The Dow (+0.1%) finished in line with the benchmark index while the Nasdaq outperformed, advancing 0.6%. For the week, the S&P 500 lost 1.4%.

Geopolitical tensions continued to linger on Friday, pushing both European and Asian markets lower and keeping gains on Wall Street in check. President Trump issued another statement regarding the ongoing situation with North Korea, saying "[m]ilitary solutions are now fully in place, locked and loaded, should North Korea act unwisely."

However, the market's anxiety was obviously dialed back a bit as the CBOE Volatility Index (VIX 15.52, -0.52) declined 3.2%, retreating from the four-month high it posted on Thursday. Conversely, U.S. Treasuries moved higher once again, but the rally had more to do with another tepid inflationary reading than with geopolitical concerns.

Both the Consumer Price Index and the core Consumer Price Index, which excludes food and energy, increased 0.1% in July. Those monthly readings were below expectations--the Briefing.com consensus anticipated an increase of 0.2% for both--and left the CPI up 1.7% year-over-year, versus 1.6% in June, and the core CPI up 1.7%, unchanged from June.

The Fed will like that there wasn't any further deterioration in consumer inflation trends, yet with its preferred PCE Price Index up just 1.4% year-over-year in June, today's CPI report isn't going to change the prevailing belief that the Fed will want to take more time to determine if inflation is picking up toward its 2.0% target on a sustained basis.

Treasuries moved higher across the curve, but buying was heaviest at the front end; the 2-yr yield dropped four basis points to 1.29% while the 10-yr yield slipped two basis points to 2.19%. Meanwhile, the U.S. Dollar Index (92.95, -0.35) lost 0.4% as the greenback dropped 0.5% against the euro to 1.1825 and 0.3% against the pound to 1.3019.

As for the equity market, the S&P 500's most influential sectors--technology (+0.8%) and financials (-0.5%)--battled each other from opposite ends of the leaderboard. The tech group benefited from broad strength with mega-cap names like Apple (AAPL 157.48, +2.16) and Microsoft (MSFT 72.50, +1.09) showing particular resolve. The two names advanced 1.4% and 1.5%, respectively.

NVIDIA (NVDA 155.96, -8.78) was one of the few laggards in the tech space, dropping 5.3% despite beating both top and bottom line estimates and raising its revenue guidance for the third quarter. However, the good news was likely priced in ahead of the report as the chipmaker did come into Friday's session with an impressive year-to-date gain of 54.3%.

Elsewhere on the earnings front, Snap (SNAP 11.83, -1.94) plunged 14.1% after reporting worse than expected earnings, revenues, and daily active users. Following Friday's slide, the social media company now sits 59.8% below its all-time high of $29.44 per share, which it posted shortly after its IPO in early March.

In total, five sectors--technology (+0.8%), consumer discretionary (+0.5%), health care (+0.3%), industrials (+0.1%), and consumer staples (+0.1%)--finished in the green while six sectors--energy (-0.7%), utilities (-0.6%), real estate (-0.6%), financials (-0.5%), materials (-0.2%), and telecom services (-0.1%)--finished in the red.

Looking ahead, investors will not receive any economic data of note on Monday.

Nasdaq Composite +16.2% YTD
Dow Jones Industrial Average +10.6% YTD
S&P 500 +9.0% YTD
Russell 2000 +1.3% YTD

Week In Review: Wall Street Slips Alongside U.S.-North Korea Relations

Wall Street took it to the chin this week as a war of words between the U.S. and North Korea prompted investors to take some profits on the heels of the stock market's most recent run to new record highs. Small caps paced the retreat, sending the Russell 2000 lower by 2.7%. The benchmark S&P 500 dropped 1.4% while the Dow (-1.1%) did a little better and the Nasdaq (-1.5%) did a little worse.

After closing Monday at record highs, the S&P 500 and the Dow showed no signs of slowing down on Tuesday morning, further extending their all-time intraday highs. But then sentiment began to shift. The major averages retraced the bulk of their gains as the heavily-weighted financial sector, which led the early rally on Tuesday, began to weaken. Then a second wave of selling took Wall Street into the red.

The second round of selling followed a statement from President Trump, in which he warned that North Korea will be "met with fire and fury like the world has never seen" if it continues to threaten action against the United States. Mr. Trump's comment came just a few hours after the Washington Post reported that North Korea now has the capability to load its missiles with miniaturized nuclear warheads.

Selling extended into Wednesday's session after Pyongyang responded to President Trump's Tuesday comment by saying that it's examining a plan to send missiles towards the U.S. territory of Guam. However, it's important to note that selling on Tuesday and Wednesday was very modest, leaving the S&P 500 with a two-day loss of just 0.3%.

That changed on Thursday though as investors began selling with conviction, sending the S&P 500 lower by 1.5%. While the jawboning between the U.S. and North Korea certainly threw the bulls off balance, Thursday's slide, which marked the S&P 500's worst one-day loss since May, pointed to a market that was probably overdue for a pullback following yet another run to new record highs.

In other words, the U.S.-North Korea spat certainty didn't help investor sentiment, but, more than anything, it provided a convenient excuse for investors to take some money off the table.

Boosted by another lukewarm inflationary reading and an ever-persistent "buy the dip" mentality, the bulls won out on Friday, pushing the stock market slightly higher. The Consumer Price Index ticked up just 0.1% in July, missing the Briefing.com consensus of +0.2%. The Fed prefers the PCE Price Index, but it's clear that the latest CPI reading didn't help the case for a third rate hike in 2017.

The fed funds futures market now points to the June FOMC meeting as the most likely time for the next rate-hike announcement with an implied probability of 57.5%. Last week, the market expected the next rate hike to occur in December with an implied probability of 50.4%.

It's also worth pointing out that the CBOE Volatility Index (VIX) spiked 5.5 points, or 54.7%, this week after drifting near an all-time low from mid-July to early August. The VIX shows what kind of a move, in percentage terms, the market is pricing in for a one-month period from the spot reading. The index is derived from near-dated options on the S&P 500.

[ReturntoSender]

Little Changed

https://www.briefing.com/investor/markets/stock-market-update/2017/8/21/little-changed.htm

21-Aug-17 16:20 ET
Dow +29.24 at 21703.75, Nasdaq -3.40 at 6213.11, S&P +2.82 at 2428.33
[BRIEFING.COM] The equity market opened the week with a rather uneventful performance that left the major averages little changed from where they settled last Friday's session. The S&P 500 (+0.1%) and the Dow (+0.1%) both eked out narrow victories while the Nasdaq (-0.1%) slipped just a tick below its unchanged mark.

Eight of the eleven sectors finished Monday's session in positive territory--consumer discretionary (+0.2%), industrials (+0.1%), materials (+0.1%), health care (+0.5%), consumer staples (+0.4%), utilities (+0.3%), telecom services (+0.7%), and real estate (+1.1%). Countercyclical groups showed relative strength as all four--health care, consumer staples, utilities, and telecom services--finished ahead of the broader market.

On the flip side, the top-weighted technology (-0.1%) and financials (-0.2%) sectors struggled throughout the session, keeping a lid on any bullish sentiment. Within the tech group, chipmakers exhibited particular weakness, sending the PHLX Semiconductor Index lower by 0.7%. Today's loss puts the technology sector in negative territory for the month (-0.1%).

The energy sector (-0.6%) settled at the very bottom of the sector standings, extending its month-to-date loss to 7.2%. The sector moved lower in tandem with the price of crude oil, which dropped 2.4% to $47.56/bbl. Monday's loss breaks a three-session winning streak for the commodity.

Corporate news was light on Monday, but it's worth pointing out that Dow component Nike (NKE 53.61, -1.34) tumbled once again, dropping 2.4%, after being downgraded to 'Hold' from 'Buy' at Jefferies. The company moved solidly lower on Friday in sympathy with Foot Locker (FL 31.82, -2.56), which has plunged 44.6% since delivering a disappointing earnings report on Friday morning.

U.S. Treasuries started the week on a higher note, sending the benchmark 10-yr yield one basis point lower to 2.18%. Meanwhile, the U.S. Dollar Index (93.03, -0.33) slipped 0.4% ahead of the Kansas City Fed's Economic Symposium in Jackson Hole, Wyoming, which will kick off on Thursday.

Investors did not receive any economic data on Monday.

On Tuesday, market participants will receive just one economic report--the FHFA Housing Price Index for June--which will cross the wires at 9:00 ET.

Nasdaq Composite +15.4% YTD
Dow Jones Industrial Average +9.8% YTD
S&P 500 +8.5% YTD
Russell 2000 unch YTD

[ReturntoSender]

Investors Cheer Tax Reform Plan
27-Sep-17 16:30 ET
Dow +56.39 at 22340.71, Nasdaq +73.10 at 6453.26, S&P +10.20 at 2507.04
https://www.briefing.com/investor/markets/stock-market-update/2017/9/27/investors-cheer-tax-reform-plan.htm

[BRIEFING.COM] The U.S. equity market moved into positive territory for the week on Wednesday as investors cheered the GOP's latest tax reform outline. Small caps led the rally, sending the Russell 2000 (+1.9%) to a new record high for the fourth session in a row. The Nasdaq (+1.2%) easily outperformed the S&P 500 (+0.4%) while the Dow (+0.3%) finished a tick behind.

Market participants received the tax reform framework on Wednesday morning, but it contained few surprises as many of the details were leaked to the media beforehand. President Trump gave a speech on the plan in the late afternoon, but provided little to no new information.

Some of the most notable highlights of the plan include cutting the corporate tax rate to 20% from 35%, doubling the standard deduction, and reducing the number of tax brackets to three (or possibly four) from seven. The individual tax rates would be set at 12%, 25%, and 35%, with a fourth option for the highest earners.

Details on how the government will make up for the immediate loss in tax revenue were limited. This topic will likely be an area of contention for the GOP going forward as many conservatives are opposed to the idea of driving up the federal deficit, which would probably be necessary to fund the tax overhaul--at least in the short term.

U.S. Treasuries finished broadly lower in a curve-steepening trade that left the 2-yr yield three basis points higher at 1.47% and the 10-yr yield eight basis points higher at 2.31%. The S&P 500's financial sector (+1.3%) outperformed as lenders cheered the steepening of the yield curve, which bodes well for their earnings prospects.

The information technology sector, the only sector more influential than financials, also soundly outpaced the broader market, moving higher by 1.1%. These two sectors exhibited relative strength throughout the session, keeping the broader market afloat during a long stretch of morning weakness.

Equity indices opened Wednesday's session with modest gains, but quickly retreated toward their flat lines. Sentiment picked back up in the early afternoon, sending the major averages to new session highs. At its worst mark of the day, the S&P 500 held a loss of 0.03% and, at its best, held a gain of 0.6%--marking an all-time high (2,511.75).

Three of the eleven sectors finished with notable losses on Wednesday--utilities (-1.4%), real estate (-0.8%), and consumer staples (-0.7%)--while only one, in addition to technology and financials, settled with a notable gain--consumer discretionary (+0.5%).

In earnings news, Micron Technology (MU 37.09, +2.91) jumped 8.5%, hitting its best level since the dot-com bubble, after beating both top and bottom line estimates and issuing upbeat guidance. The bullish sentiment radiated throughout the semiconductor space, sending the PHLX Semiconductor Index higher by 2.4%.

Conversely, Dow component Nike (NKE 52.67, -1.03) dropped 1.9% after the athletic footwear and apparel company topped earnings expectations for its fiscal first quarter on scant revenue growth and issued a disappointing gross margin outlook for the fiscal second quarter.

Reviewing Wednesday's economic data, which included August Durable Goods Orders, August Pending Home Sales, and the weekly MBA Mortgage Applications Index:

August durable goods orders rose 1.7%, which is more than the 0.7% increase expected by the Briefing.com consensus. The prior month's reading was left unrevised at -6.8%. Excluding transportation, durable orders increased 0.2% (Briefing.com consensus +0.2%) to follow the prior month's revised uptick of 0.8% (from 0.5%).
The key takeaway from the report is that it showed a continued pickup in business spending and a favorable translation of that increased activity for Q3 GDP forecasts.
Pending Home Sales for August declined 2.6% (Briefing.com consensus -0.4%). Today's reading follows an unrevised 0.8% decrease in July.
The weekly MBA Mortgage Applications Index decreased 0.5% to follow last week's 9.7% decline.

On Thursday, market participants will receive several pieces of economic data, including the third estimate of second quarter GDP (Briefing.com consensus +3.0%), weekly Initial Claims (Briefing.com consensus 275K), and Advance International Trade in Goods for August (Briefing.com consensus -$65.1 billion). All three reports will be released at 8:30 ET.

The Nasdaq and the S&P 500 will enter Thursday's session with week-to-date gains of 0.4% and 0.2%, respectively, while the Dow will enter flat.

Nasdaq Composite +19.9% YTD
Dow Jones Industrial Average +13.1% YTD
S&P 500 +12.0% YTD
Russell 2000 +9.4% YTD

[ReturntoSender]

Another Buzzer Beater on Wall Street
19-Oct-17 16:30 ET
Dow +5.44 at 23163.04, Nasdaq -19.15 at 6605.06, S&P +0.84 at 2562.10

https://www.briefing.com/investor/markets/stock-market-update/2017/10/19/another-buzzer-beater-on-wall-street.htm

[BRIEFING.COM] Stocks clawed their way back from early weakness on Thursday and managed to reach positive territory for the fifth session in a row. The S&P 500 (unch) and the Dow (unch) both posted new record closes thanks to a final push higher in the final minutes of the session. Meanwhile, the Nasdaq and the Russell 2000 underperformed, losing 0.3% and 0.2%, respectively.

The S&P 500's technology sector declined by 0.4% on Thursday, with its largest component by market cap--Apple (AAPL 155.98, -3.78)--showing particular weakness. The company fell 2.4% following overnight reports that iPhone 8 orders are weaker than expected and the new Apple Watch is having cellular connection issues in China.

eBay (EBAY 37.29, -0.68) was another notable laggard within the tech space after the e-commerce company issued weak guidance for the fourth quarter; EBAY shares lost 1.8%. On a positive note, software giant Adobe Systems (ADBE 171.73, +18.73) surged 12.2%, hitting a fresh record high, after issuing above-consensus guidance for fiscal year 2018.

The consumer staples space (-0.6%) was the only sector to finish below technology on the day's leaderboard. Phillip Morris (PM 108.15, -4.36), the maker of cigarette brand Marlboro, was the sector's weakest component, tumbling 3.9%, after reporting disappointing profits and revenues for the third quarter and issuing below-consensus earnings guidance for fiscal year 2017.

Meanwhile, health care stocks rallied, extending their gains from the prior two sessions. Within the health care sector--which added 0.6%--Gilead Sciences (GILD 81.59, +1.58) showed particular strength (+2.0%) after the FDA approved the company's lymphoma therapy drug Yescarta.

Wireless giant Verizon (VZ 49.21, +0.56) finished with a gain of 1.2% after reporting upbeat earnings for the third quarter. However, the company's performance was somewhat disappointing considering it opened with a gain of around 3.0%. The lightly-weighted telecom services group added 0.5%.

Financial names finished mixed, leaving the S&P 500's financial sector (+0.2%) slightly higher. American Express (AXP 91.90, -0.18) and Travelers (TRV 133.17, +3.15) embodied the mixed theme; TRV shares climbed 2.4% on better-than-expected top and bottom lines while AXP shares lost 0.2% after announcing that CEO Kenneth Chenault will be stepping down after 16 years at the helm.

Transports finished slightly behind the broader market, evidenced by the Dow Jones Transportation Average (-0.1%), with United Continental (UAL 59.78, -8.21) pacing the modest retreat. The airline plunged 12.1% after disappointing guidance overshadowed its better-than-expected earnings.

In the bond market, U.S. Treasuries advanced on Thursday, but intraday selling pressured the market off its morning high. The benchmark 10-yr yield slipped two basis points to 2.32% after trading as high as 2.35% in overnight action. Meanwhile, the U.S. Dollar Index dropped 0.3% to 93.02.

Also of note, Politico reported in the late afternoon that Fed Governor Jerome Powell is the leading candidate to become the next Fed Chair. President Trump is expected to make his decision before he leaves for an 11-day trip to Asia on November 3.

Reviewing Thursday's economic data, which included the weekly Initial Claims Report, the Philadelphia Fed Index for October, and the Conference Board Leading Economic Index for September:

The latest weekly initial jobless claims count totaled 222,000 while the Briefing.com consensus expected a reading of 236,000. Today's tally was below the revised prior week count of 244,000 (from 243,000). As for continuing claims, they declined to 1.888 million from the revised count of 1.904 million (from 1.889 million).
The key takeaway from this report, which saw some disruptions in claims taking procedures in Puerto Rico and the Virgin Islands, is that the low level of claims should translate into some lofty nonfarm payroll expectations for October since this report covered the week in which the household survey was conducted.
The Philadelphia Fed Survey for October rose to 27.9 from an unrevised 23.8 in September while economists polled by Briefing.com had expected a reading of 20.0.
The key takeaway from the report is that the monthly increase was led by gains in labor market indicators, with the current employment index increasing 24 points to a record-high reading of 30.6.
The Conference Board Leading Economic Index decreased 0.2% in September, while economists polled by Briefing.com expected an increase of 0.1%. The prior month's increase was left unrevised at 0.4%.
The key takeaway from the report is that the downturn had hurricane fingerprints on it with key negative contributions from initial claims, building permits, and the average workweek.

On Friday, investors will receive just one economic report--September Existing Homes Sales (Briefing.com consensus 5.29 million)--which will be released at 10:00 ET.

Nasdaq Composite +22.7% YTD
Dow Jones Industrial Average +17.2% YTD
S&P 500 +14.4% YTD
Russell 2000 +10.7% YTD

[ReturntoSender]

Investors Take Profits After Senate Calls for Corporate Tax Cut Delay
09-Nov-17 16:30 ET
Dow -101.42 at 23461.94, Nasdaq -39.07 at 6750.06, S&P -9.78 at 2584.60

https://www.briefing.com/investor/markets/stock-market-update/2017/11/9/investors-take-profits-after-senate-calls-for-corporate-tax-cut-delay.htm

[BRIEFING.COM] U.S. equities retreated from record highs on Thursday as investors took some profits following a largely uninterrupted two-month rally. The major indices finished near the top of their trading ranges, with the S&P 500 and the Dow losing 0.4% apiece. The tech-heavy Nasdaq (-0.6%) underperformed as technology shares faced particularly heavy selling.

The Senate released its version of a tax reform bill, which called for delaying a cut in the corporate tax rate by one year and differed from the version that the House unveiled last week in several other key areas--including property tax, mortgage interest, and medical expense deductions. The two chambers will have to hammer out those differences in order to put the bill on the president's desk for approval, and doubts surrounding Congress' ability to do just that were cited by some as the main catalyst for Thursday's sell off.

More likely, however, the Senate's unveiling provided a convenient excuse for investors to take some money off the table following yet another record high run for the major U.S. indices. All three major averages finished the prior session at fresh all-time highs and have added between 5.0% and 7.6% since September 8.

Technology shares within the S&P 500 were particularly weak on Thursday, losing 0.9%. Chipmakers paced the tech retreat, sending the PHLX Semiconductor Index lower by 2.0%, with names like Broadcom (AVGO 265.64, -6.76) and Advanced Micro (AMD 11.12, -0.59) losing 2.5% and 5.0%, respectively.

The industrial sector (-1.3%) did even worse, settling at the bottom of the sector standings, while a handful of groups managed to move modestly higher--including consumer discretionary (+0.2%), energy (+0.3%), utilities (+0.1%), and telecom services (+0.3%).

Shares of 21st Century Fox (FOXA 28.70, +0.61) jumped 2.2% after the media giant reported better-than-expected earnings and sales for its fiscal first quarter. Peers like Walt Disney (DIS 102.68, +1.50), CBS (CBS 58.08, +0.83), and Viacom (VIAB 24.78, +0.48) moved higher in sympathy, adding between 1.5% and 2.0%.

Retailers outperformed as well, evidenced by the 1.6% increase in the SPDR S&P Retail ETF (XRT 39.71, +0.64). Macy's (M 19.50, +1.93) led the retail advance, surging 11.0% after reporting above-consensus earnings for its fiscal third quarter and reaffirming its guidance for 2018.

In other corporate news, CNBC reported that the Department of Justice has not set a requirement for Time Warner (TWX 87.05, -1.45) to sell CNN in order to be acquired by AT&T (T 34.00, +0.56), as was reported on Wednesday. Time Warner shares slipped 1.6%, while AT&T shares climbed 1.7%.

U.S. Treasuries ended on a mixed note, with shorter-dated issues showing relative strength while longer-dated issues exhibited relative weakness. The benchmark 10-yr Treasury note finished flat, however, with its yield settling unchanged at 2.33%. Meanwhile, the U.S. Dollar Index dropped 0.4% to 94.42, and WTI crude futures climbed 0.6% to $57.14/bbl.

Elsewhere, Japan's Nikkei had an unnerving bout of volatility on Thursday before ending little changed (-0.2%), while the Euro Stoxx 50 tumbled 1.0%.

Reviewing Thursday's economic data, which was limited to the weekly Initial Claims Report and September Wholesale Inventories:

The latest weekly initial jobless claims count totaled 239,000, while the Briefing.com consensus expected a reading of 231,000. Today's tally was above the unrevised prior week count of 229,000. As for continuing claims, they rose to 1.901 million from the unrevised count of 1.884 million.
The key takeaway is that initial claims, which remained below 300,000 for the 140th straight week, are low and indicative of a tight labor market.
September Wholesale Inventories increased 0.3% (Briefing.com consensus +0.3%). The prior month's reading was revised to +0.8% from +0.9%.
The key takeaway from the report is that the sales increase outpaced the inventory increase by a sizable margin, which is a step in the right direction for wholesalers trying to regain some pricing power.

On Friday, investors will receive two economic reports--the preliminary reading of the University of Michigan Consumer Sentiment Index for November (Briefing.com consensus 100.5) and the October Treasury Budget. The two reports will be released at 10:00 ET and 14:00 ET, respectively.

Nasdaq Composite +25.4% YTD
Dow Jones Industrial Average +18.7% YTD
S&P 500 +15.5% YTD
Russell 2000 +8.7% YTD

[ReturntoSender]

Stocks End Little Changed as Investors Chew on Tax Reform
10-Nov-17 16:30 ET
Dow -39.73 at 23422.21, Nasdaq +0.89 at 6750.94, S&P -2.32 at 2582.30

https://www.briefing.com/investor/markets/stock-market-update/2017/11/10/stocks-end-little-changed-as-investors-chew-on-tax-reform.htm

[BRIEFING.COM] Doubts about the future of tax reform continued to linger on Friday, but stocks pared opening losses in the afternoon to leave the major U.S. indices little changed. The S&P 500 and the Dow finished with modest losses of 0.1% and 0.2%, respectively, while the Nasdaq closed just a tick above its unchanged mark.

The Senate's version of a tax reform bill, which was released on Thursday, has created some doubts in the market about the GOP's ability to implement a tax overhaul as it differs from the House's version of a tax reform bill in several key areas--most notably, the Senate's version calls for delaying a cut in the corporate tax rate by one year.

However, it's tough to say that the Senate's tax reform proposal did little more than give investors an excuse to take some profits following yet another string of record highs. One thing is clear, if investors are concerned about the prospect of tax reform, it didn't impact the equity market significantly this week as the S&P 500 finished with a weekly loss of just 0.2%.

On the whole, Friday's session was pretty uneventful. Many banks were closed in honor of Veterans Day, leading to slightly below-average trading volume.

The S&P 500's energy sector (-0.8%) ended the week on a down note as the price of crude oil declined 0.7% to $56.75/bbl. Health care shares also underperformed, sending the health care group lower by 0.9%, but most of the other sectors finished roughly in line with, or above, the broader market.

Pharmacy retailers like CVS Health (CVS 70.99, +1.97) and Walgreens Boot Alliance (WBA 70.99, +1.85) helped push the consumer staples group (+1.0%) to the top of the sector standings, adding 2.9% and 2.7%, respectively, while department store retailer J.C. Penney (JCP 3.17, +0.42) spiked 15.3% after reporting better-than-expected earnings and revenues for its fiscal third quarter.

In other earnings news, chipmaker NVIDIA (NVDA 216.14, +10.82) climbed 5.3%, hitting a new all-time high, after reporting better-than-expected earnings and revenues and issuing above-consensus revenue guidance for the fourth quarter. Meanwhile, Dow component Walt Disney (DIS 104.78, +2.10) added 2.1% despite missing profit and sales estimates.

U.S. Treasuries finished on a broadly lower note, erasing their gains from earlier in the week. The yield on the benchmark 10-yr Treasury note jumped seven basis points to 2.40%--settling near a two-week high--while the 2-yr yield climbed three basis points to 1.66%. Yields move inversely to prices.

Elsewhere, stocks in the Asia-Pacific region ended Friday on a mixed note, with Japan's Nikkei (-0.8%) showing relative weakness, while the Euro Stoxx 50 dropped 0.5%.

Reviewing Friday's economic data, which was limited to the University of Michigan Consumer Sentiment Index for November:

The preliminary reading of the University of Michigan Consumer Sentiment Index for November declined to 97.8 (Briefing.com consensus 100.5) from 100.7 in October.
The key takeaway from the report is that consumers' anticipated wage gains recorded the highest two-month level in a decade.

On Monday, investors will receive just one economic report--the October Treasury Budget--which will be released at 14:00 ET.

Nasdaq Composite +25.4% YTD
Dow Jones Industrial Average +18.5% YTD
S&P 500 +15.3% YTD
Russell 2000 +8.7% YTD

Week In Review: A Taxing Release

Stocks got off to a good start this week, hitting new record highs on Monday and Wednesday, but retraced their gains in the latter half--a move that was nominally attributed to the release of the Senate's tax reform bill. More likely, however, this week's loss was the result of some profit taking following a largely uninterrupted two-month rally. The S&P 500 and the Nasdaq shed 0.2% apiece, while the Dow lost 0.5%.

The financial sector paced this week's retreat, which is fitting considering the group played a leadership role in the market's most recent bullish run; the financial sector jumped 11.4% from September 8 to November 3, while the benchmark S&P 500 added 5.1%. Dow components JPMorgan Chase (JPM) and Goldman Sachs (GS) lost 3.9% and 1.7% this week, respectively.

Industrial shares also struggled, with transports showing particular weakness; the Dow Jones Transportation Average dropped 2.6%.

Meanwhile, the energy sector outperformed, finishing with a gain of 1.1%. The group benefited from an increase in the price of crude oil, which touched its highest level in more than two years; WTI crude futures finished higher by 2.0% at $56.75/bbl. Heightened tensions in the Middle East, which could potentially disrupt crude production in the region, were largely credited for the move.

Saudi Arabia's Crown Prince Mohammad bin Salman ordered the arrests of some of the country's most prominent political and business figures on allegations of corruption. In addition, Saudi Arabia ordered its citizens to leave Lebanon after accusing the country of declaring war, citing the presence of Iranian-backed Hezbollah members within the Lebanon government.

Back in the U.S., earnings season continued this week--albeit with fewer notable companies on the docket--but headlines were focused on M&A developments. Sprint (S) and T-Mobile US (TMUS) lost 7.2% and 3.6%, respectively, after announcing over the weekend that they could not reach a merger agreement.

Meanwhile, chipmaker Broadcom (AVGO) slipped 3.2% after bidding $70 per share (in cash and stock) for Qualcomm (QCOM), which, conversely, ended the week higher by 4.5%. There were also reports that the Department of Justice would require the sale of CNN before it would approve AT&T's (T) acquisition of Time Warner (TWX), but later reports said that claim was false.

Also of note, Walt Disney (DIS) and 21st Century Fox (FOXA) were reportedly in discussions regarding a sale of assets to Disney from Fox in recent weeks.

On the political front, the Senate on Thursday released its version of a tax reform bill, which called for delaying a cut in the corporate tax rate to 20% from 35% by one year and differed from the version that the House unveiled last week in several other key areas--including deductions related to state and local property taxes.

The two chambers will have to hammer out those differences in order to put the bill on the president's desk for approval, and uncertainty surrounding Congress' ability to do just that were cited by some as the main catalyst for Wall Street's weakness in the latter half of the week.

Following this week's events, investors still strongly believe that the Fed will raise rates next month, with the CME FedWatch Tool placing the chances of a December rate hike at 100.0%.

[ReturntoSender]

Quiet Start to the Holiday Week
20-Nov-17 16:30 ET
Dow +72.09 at 23430.33, Nasdaq +7.92 at 6790.71, S&P +3.29 at 2582.14

https://www.briefing.com/investor/markets/stock-market-update/2017/11/20/quiet-start-to-the-holiday-week.htm

[BRIEFING.COM] Stocks had a quiet, but positive, start to the abbreviated Thanksgiving week on lighter-than-usual trading volume.

The Dow Jones Industrial Average climbed 0.3%, finishing a step above the S&P 500 and the Nasdaq, which added 0.1% apiece. Meanwhile, small caps outperformed, sending the small-cap Russell 2000 higher by 0.7%.

Tax reform remained a topic of conversation in the media on Monday, despite the lack of new developments. The House did its part last week when it passed its version of a tax reform bill, and analysts continue to debate whether the Senate can do the same when its version goes to the floor for a vote sometime after Thanksgiving.

Fed Chair Janet Yellen announced that she will resign from the Board of Governors when Jerome Powell replaces her as Fed Chair in early February. Ms. Yellen had the right to stay on the Board of Governors until January 2024, but her decision was not a surprise and had little impact on the financial markets.

As for corporate news, there were a few notable headlines on Monday, but the day was pretty quiet overall.

Chipmakers showed relative strength, evidenced by the 1.2% increase in the PHLX Semiconductor Index, after Marvell (MRVL 21.59, +1.30) announced that it will acquire Cavium Networks (CAVM 84.02, +8.19) for approximately $6 billion, or $80.00 per share, in cash and stock. MRVL shares added 6.4%, while CAVM shares jumped 10.8%.

The S&P 500's technology sector (+0.3%), which houses chipmakers, finished ahead of the broader market, but a ways behind the telecom services group (+1.0%), which settled at the top of the sector standings. Verizon (VZ 46.20, +0.78) led the telecom rally, adding 1.7%, after Wells Fargo upgraded VZ shares to 'Outperform' from 'Market Perform.'

Telecom giant AT&T (T 34.64, +0.13) also had a relatively positive showing, climbing 0.4%, following reports that the Department of Justice plans to make a major antitrust announcement on Monday evening that involves the company's pending acquisition of Time Warner (TWX 87.71, -1.01). TWX shares lost 1.1%.

The heavily-weighted financial sector climbed 0.5%, while the other advancing sectors added no more than 0.4%.

On the flip side, the health care space was the weakest group on Monday, moving lower by 0.4%. Within the group, Dow component Merck (MRK 54.10, -1.10) showed relative weakness, losing 2.0%, after Switzerland-based rival Roche announced positive clinical trial results for its cancer immunotherapy treatment called Tecentriq.

In the bond market, U.S. Treasuries moved lower in another curve-flattening trade, reducing the 2yr-10-yr spread to just 62 basis points. The yield on the benchmark 10-yr Treasury note climbed two basis points to 2.37%, while the 2-yr yield jumped three basis points to 1.75%. Yields move inversely to prices.

Elsewhere, efforts to form a coalition government in Germany fell apart overnight, leaving Europe's largest economy in a state of political uncertainty. However, European equities were able to climb despite the news, with Germany's DAX (+0.5%) pacing the advance.

Major indices in the Asia-Pacific region ended Monday on a mixed note, with Japan's Nikkei (-0.6%) slipping for the seventh time in nine sessions.

Reviewing Monday's economic data, which was limited to October Leading Indicators:

The Conference Board Leading Economic Index increased 1.2% in October (Briefing.com +0.8%). The prior month's reading was revised to +0.1% from -0.2%.

On Tuesday, investors will again receive just one economic report--October Existing Home Sales (Briefing.com consensus 5.42 million)--which will be released at 10:00 ET.

Nasdaq Composite +26.2% YTD
Dow Jones Industrial Average +18.6% YTD
S&P 500 +15.3% YTD
Russell 2000 +10.8% YTD

[ReturntoSender]

A Green Friday
24-Nov-17 13:30 ET
Dow +31.81 at 23557.99, Nasdaq +21.80 at 6889.15, S&P +5.34 at 2602.42

https://www.briefing.com/investor/markets/stock-market-update/2017/11/24/a-green-friday.htm

[BRIEFING.COM] The stock market meandered its way through an abbreviated session on Friday and scored modest gains to close out the week. The bulk of today's gains were registered shortly after the opening bell. After that, there was mostly sideways trading action.

Despite the modest gains, they were still good enough to propel the S&P 500 and Nasdaq Composite to new record highs.

Leadership throughout today's thinly-traded session was provided by the information technology sector (+0.5%), which was helped along by reports suggesting Broadcom (AVGO 282.38, +7.01, +2.6%) might return next week with an increased offer to acquire Qualcomm (QCOM 68.91, +0.78, +1.1%).

That news contributed to the outperformance of the semiconductor stocks, which was reflected in the 1.0% gain for the Philadelphia Semiconductor Index. Their leadership, and gains in the likes of Facebook (FB 182.78, +1.91, +1.1%) and Amazon.com (AMZN 1186.00, +29.84, +2.6%), served as the driving influences behind the Nasdaq's record run.

Amazon.com was a focal point throughout the day as it is thought by many to be in the best position to capitalize on Black Friday sales and holiday selling activity in general.

Early reports have made it sound like the online sales activity at least is off to a good start. Adobe Analytics reported that $1.52 billion was spent online by 5:00 p.m. ET on Thanksgiving Day, up 16.8% from last year, and that online sales as of 10:00 a.m. ET on Friday were up 18.4% year-over-year.

Amazon.com's stock strength, however, wasn't exclusive. Well-known retailers such as Macy's (M 21.07, +0.44, +2.1%), Best Buy (BBY 57.00, +0.51, +0.9%), Gap (GPS 29.64, +0.47, +1.6%), and Kohl's (KSS 45.09, +0.46, +1.0%) also exhibited relative strength. Their gains supported a 0.2% advance for the S&P 500 consumer discretionary sector.

Gains in the materials (+0.5%), real estate (+0.4%), and energy (+0.3%) sectors also helped prop up the broader market.

Elsewhere, oil prices jumped 1.5% to $58.87 per barrel. That move was aided by a weaker dollar, geopolitical angst, short-term supply disruptions tied to a Keystone pipeline outage, and speculation that OPEC and Russia are primed next week to agree to an extension of their oil production cut program.

The latter meeting will take place on Thursday and will be a key event in a week that will feature several key events, including Jerome Powell's Fed Chair confirmation hearing (Tuesday), current Fed Chair Janet Yellen's economic outlook testimony before the Joint Economic Committee (Wednesday), and an expected vote on the Senate's tax bill on Thursday.

In terms of this week, it was another winning week. The Russell 2000 led the way with a 1.8% gain, followed by the Nasdaq Composite, up 1.6%, the S&P Mid Cap 400, up 1.0%, the S&P 500, up 0.9%, and the Dow Jones Industrial Average, up 0.8%.

Year-to-date returns are as follow:

Nasdaq Composite +28.0%
Dow Jones Industrial Average +19.1%
S&P 500 +16.2%
S&P Mid Cap 400 +12.0%
Russell 2000 +11.9%

[ReturntoSender]

Amazon, Retail Stocks Lead Broad-Based Stock Rebound
26-Nov-18 16:30 ET
Dow +354.29 at 24639.14, Nasdaq +142.87 at 7082.06, S&P +40.89 at 2673.59

https://www.briefing.com/investor/markets/stock-market-update/2018/11/26/amazon-retail-stocks-lead-broadbased-stock-rebound.htm

[BRIEFING.COM] The S&P 500 rebounded 1.6% on Monday, as Amazon (AMZN 1581.33, +79.27, +5.3%) and retail stocks led the broad-based advance from what many considered to be short-term oversold conditions. Meanwhile, the Dow Jones Industrial Average gained 1.5%, the Nasdaq Composite gained 2.1%, and the Russell 2000 gained 1.2%.

Reports of record online Black Friday sales and encouraging forecasts for Cyber Monday sales contributed to the upbeat investor sentiment within the top-performing consumer discretionary sector (+2.6%). Adobe Analytics reported that online Black Friday sales surged 23.6% to a record $6.22 billion and expected a 17.6% year-over-year growth of $7.8 billion on Cyber Monday. The S&P SPDR Retail ETF (XRT 45.75, +0.87) rose 2.0%.

The information technology (+2.3%), financials (+2.1%), communication services (+1.9%), and energy (+1.7%) sectors also had solid performances on Monday.

A positive showing from the other FANG stocks also manifested the general belief that the market was due for a bounce. Facebook (FB 136.38, +4.65, +3.5%), Alphabet (GOOG 1048.62, +24.74, +2.4%), Netflix (NFLX 261.43, +2.61, +1.0%), and Apple (AAPL 174.62, +2.33, +1.4%) all sported healthy gains. Apple was able to shrug off midday losses to finish near its session high.

Financial heavyweights JPMorgan Chase (JPM 109.26, +2.61, +2.5%), Bank of America (BAC 27.56, +0.59, +2.2%), Citigroup (C 63.73, +1.98, +3.2%), and American Express (AXP 109.68, +3.94, +3.7%) provided strong support for the group. Though there was no specific news catalyst for the sector's strong performance, the financials space has been able to weather the stock market's decline in the fourth quarter better than most. The financials group is down 4.1% this quarter compared to the S&P 500's quarterly decline of 8.3%.

Looking at energy, the oil-sensitive energy sector rose in tandem with oil prices. WTI crude, which had fallen over 10.0% last week, jumped 2.4% to $51.66/bbl. Top-weighted component Exxon Mobil (XOM 76.98, +1.49) gained 2.0% after being upgraded to 'Outperform' at Wolfe Research.

Conversely, the defensive-oriented consumer staples (unch), real estate (+0.2%), and utility (+0.5%) sectors finished at the bottom of the sector standings, though still finished above their flat lines.

In other corporate news, General Motors (GM 37.65, +1.72, +4.8%) announced additional restructuring plans that will result in a 15% reduction of its salaried staff and possibly the closure of five of its North American plants. President Donald Trump said to reporters that he told GM executives that he is unhappy with the job cuts and is hopeful that something else will replace the GM plants in Ohio.

Separately, U.S. Treasury selling was modest in scope, especially when considering the optimism that was on display in stocks. The 2-yr yield added one basis point to 2.83%, and the 10-yr yield added two basis points to 3.07%. Also, the U.S. Dollar Index rose 0.1% to 97.05.

In Europe, some ostensibly positive reports surfaced amid the equity rally. Italy's MIB showed relative strength (+2.8%) amid reports that Italian officials indicated a willingness to lower next year's deficit target of 2.4%. However, this report follows weekend remarks from Italy's Deputy Prime Minister Matteo Salvini, who said he would bring down the government if the deficit target is changed. Separately, EU leaders approved the UK Brexit plan, but the plan still faces a lot of dissent in the UK, and there is no assurance it will pass a vote in Parliament.

Elsewhere, equity indices in the Asia-Pacific region closed mostly higher with Hong Kong's Hang Seng rising 1.7%.

Investors did not receive any notable economic data on Monday. Looking ahead, investors will receive the Case-Shiller 20-city Index for September, the Conference Board's Consumer Confidence Index for November, and the FHFA Housing Price Index for September on Tuesday.

Nasdaq Composite +2.6% YTD
Dow Jones Industrial Average -0.3% YTD
S&P 500 unch YTD
Russell 2000 -1.9% YTD

[ReturntoSender]

S&P 500 Trims Weekly Rally with Focus Shifting Towards G-20 Meeting
29-Nov-18 16:25 ET
Dow -27.59 at 25337.74, Nasdaq -18.51 at 7273.29, S&P -5.96 at 2738.03

https://www.briefing.com/investor/markets/stock-market-update/2018/11/29/s-and-p-500-trims-weekly-rally-with-focus-shifting-towards-g20-meeting.htm

[BRIEFING.COM] The S&P 500 trimmed this week's rally by 0.2% on Thursday with market participants shifting focus to this weekend's G-20 meeting between U.S. President Donald Trump and China President Xi Jinping.

Meanwhile, the Dow Jones Industrial Average lost 0.1%, the Nasdaq Composite lost 0.3%, and the Russell 2000 lost 0.3%.

Though the market succumbed to early profit-taking from Wednesday's Powell-driven rally, stocks gradually climbed from session lows as news wires heated up with U.S.-China trade headlines. Despite the uncertainty surrounding the meeting, The Wall Street Journal report published Thursday is probably as good a preview of what an eventual best-case outcome will be from the G-20 meeting. The Wall Street Journal noted (unnamed) officials on both sides are floating the idea of forestalling any further tariffs through the spring to set the stage for a new round of talks to address changes in China's economic policy.

It would be a small victory for the market if there was an agreement at the G-20 meeting to hold off on such tariff actions, yet it isn't the ultimate solution since it kicks the tariff can down the road without eliminating the threat that further tariffs will be imposed.

In addition, The South China Morning Post reported that Peter Navarro, a well-known China trade hawk, will be attending the dinner meeting between President Trump and President Xi on Saturday. Mr. Navarro's presence at the dinner table briefly unnerved investors.

Separately, the Federal Open Market Committee (FOMC) released its minutes from its November 7-8 meeting. Though the market crossed into positive territory shortly after its late afternoon release, one should not get too caught up with the minutes.

Some reasons include (1) the fact that Fed Chair Powell had already stated "interest rates... remain just below the broad range of estimates of the level that would be neutral for the economy," and (2) the market has already been handicapping the strong likelihood that the target range for the fed funds rate will be increased to 2.25% to 2.50% at the December 18-19 FOMC meeting. The latest minutes largely echoed Mr. Powell's language and the likelihood of a December rate hike.

Back to stocks, the heavily-weighted information technology (-1.0%) and financial (-0.8%) sectors weighed on the broader market.

Apple (AAPL 179.55, -1.39, -0.8%) and other tech heavyweights dragged on the group. The sector, though, had risen 6.0% for the week heading into Thursday's session. On the other hand, Qualcomm (QCOM 58.11, +1.46) was a bright spot after the company's former Chairman said in a Bloomberg interview that he is still thinking about taking the company private.

Also, the financial sector was pressured by weak housing data that weighed on investor sentiment. Pending home sales declined 2.6% in October, reported on the heels of a report showing new home sales declined 8.9% in October. The weak reports have fueled concerns about weakening mortgage loan demand, which is a negative for many banks and many of the regional banks in particular. Charles Schwab (SCHW 44.16, -1.50) was a notable financial laggard with a loss of 3.3%.

Conversely, the energy (+0.6%), materials (+0.6%), communication services (+0.4%), and health care (+0.3%) sectors outperformed the broader market.

The oil-sensitive energy group benefited from WTI crude rebounding 2.5% to $51.46/bbl. Crude bounced on the hope that the recent downturn in oil prices will spur OPEC+ producers to agree to a meaningful production cut next week.

FANG stocks Facebook (FB 138.68, +1.92, +1.4%), Netflix (NFLX 288.75, +6.10, +2.2%), and Alphabet (GOOG 1088.30, +2.07, +0.2%) extended gains to lift the communication group.

In earnings, Dollar Tree (DLTR 88.43, +5.11) rose 6.1% after it beat earnings estimates. The discount store company did guide its Q4 earnings and revenues below consensus, however. Also, Abercrombie & Fitch (ANF 20.70, +3.58) spiked 20.9% after a shift in identity helped the clothing retailer beat earnings expectations.

Elsewhere, U.S. Treasuries finished near their unchanged marks with the benchmark 10-yr yield losing one basis point to 3.04%. Also, the U.S. Dollar Index finished flat at 96.76.

Reviewing Thursday's economic data, which included PCE Price Index for October, Personal Income and Spending for October, Pending Home Sales for October, and weekly Initial and Continuing Claims:

Personal income increased 0.5% in October (Briefing.com consensus +0.4%) while personal spending jumped 0.6% (Briefing.com consensus +0.4%). Real PCE, which is the component that factors into Q4 GDP forecasts, was up a solid 0.4%. The PCE Price Index was up 0.2% and the core PCE Price Index, which exclude food and energy, was up 0.1% (Briefing.com consensus +0.2%).
The tame inflation readings are the key takeaway from the report since they are supportive of the Federal Reserve taking a more deliberate approach to raising the fed funds rate.
Pending Home Sales decreased 2.6% in October (Briefing.com consensus +0.7%). Today's reading follows a revised 0.7% increase in September (from +0.5%).
Initial claims for the week ending November 24 increased by 10,000 to 234,000 (Briefing.com consensus 218,000) while continuing claims for the week ending November 17 increased by 50,000 to 1.710 million.
The key takeaway from the report is that it is apt to contribute to assertions that the bottom for the trend in initial and continuing claims may have been reached in this cycle.

Looking ahead, investors will receive the Chicago PMI for November on Friday.

Nasdaq Composite +5.4% YTD
Dow Jones Industrial Average +2.5% YTD
S&P 500 +2.4% YTD
Russell 2000 -0.7% YTD

[ReturntoSender]

Stocks Climb Ahead of G-20 Meeting Between Trump, Xi
30-Nov-18 16:25 ET
Dow +199.62 at 25537.36, Nasdaq +57.45 at 7330.74, S&P +22.41 at 2760.44

https://www.briefing.com/investor/markets/stock-market-update/2018/11/30/stocks-climb-ahead-of-g20-meeting-between-trump-xi.htm

[BRIEFING.COM] The S&P 500 finished strong with a gain of 0.8% on Friday to conclude one of its best weeks of the year. Investors turned their attention to the highly-anticipated G-20 Leaders Summit in Argentina, where U.S. President Trump and China President Xi are expected to take the main stage at a dinner meeting on Saturday.

The Dow Jones Industrial Average gained 0.8%, the Nasdaq Composite gained 0.8%, and the Russell 2000 gained 0.5%.

The major indices hovered near their flat lines in afternoon trading before a Reuters report indicated a Chinese official saying that there are points of consensus between the U.S. and China on trade. Though, some disagreements remain. With that in mind, there seems to be a consensus building around the idea that the best one can hope for is a mutual agreement to forestall further tariff actions for several months so that further talks can be conducted to address trade policy issues.

U.S. Trade Representative Lighthizer spurred some optimism Friday morning when he said he would be surprised if the dinner meeting was not a success. He added it is entirely up to the two Presidents if a deal will be made, though.

10 of the 11 S&P sectors finished in the green on Friday with the utilities (+1.5%), health care (+1.1%), and information technology (+1.1%) sectors outperforming the broader market.

Chip stocks also outperformed, evidenced by the Philadelphia Semiconductor Index rising 1.5%, to help lift the heavily-weighted information technology sector. NVIDIA (NVDA 163.43, +6.07, +3.9%) led chip stocks higher, though Apple (AAPL 178.58, -0.97, -0.5%) was unable to gain traction, eventually losing its status as the S&P 500's largest company by market cap to Microsoft (MSFT 110.89, +0.70, +0.6%).

Some positive earnings reports from tech companies HP (HPQ 23.00, +0.14, +0.6%), VMware (VMW 166.17, +4.69, +2.9%), and Workday (WDAY 164.00, +18.70, +12.9%) also contributed to the sector's advance. Workday and VMware beat both top and bottom line estimates, and HP beat revenue estimates. Workday also raised its fiscal 2019 subscription revenue outlook.

Transport stocks had a great day with the Dow Jones Transportation Average rising 1.3%. With oil and its derivatives factoring heavily in their cost of operations, transport issues reacted favorably to the decline in oil prices and were a leadership area in November. The average finished with a monthly gain of 6.2%.

On the other hand, the energy (-0.2%), materials (+0.4%), and communication services (+0.4%) sectors underperformed the broader market.

In other corporate news, General Electric (GE 7.50, -0.44) and Marriott (MAR 115.03, -6.81) lost 5.5% and 5.6%, respectively, amid some negative occurrences. A WSJ report indicated that General Electric ignored insurance risks, according to some former employees. Deutsche Bank also lowered its GE price target to $7. Separately, Marriott announced a data breach involving its guest reservation database for its Starwood-branded hotels.

Separately, the U.S. Treasury yield curve saw some flattening with the 2-yr yield adding one basis point to 2.81%, and the 10-yr yield losing three basis points to 3.01%. Also, the U.S. Dollar Index rose 0.4% to 97.20, and WTI crude lost 1.6% to $50.65/bbl, weighing on the oil-sensitive energy group.

Reviewing Friday's economic data, which only included the Chicago PMI for November:

The MNI Chicago Business Barometer, popularly referred to as the Chicago PMI, surged to 66.4 in November (Briefing.com consensus 58.0) from 58.4 in October. The November reading is an 11-month high.
The key takeaway from the report is that it was fueled by a big uptick in the New Orders Index, which hit its highest level since May 2014. The strength in new orders is an encouraging sign of robust manufacturing demand for the Chicago Fed region.

Looking ahead, investors will receive the ISM Index for November and Construction Spending for October on Monday.

Nasdaq Composite +6.2% YTD
Dow Jones Industrial Average +3.3% YTD
S&P 500 +3.2% YTD
Russell 2000 -0.2% YTD

Week in Review: Stock Market Rallies with Optimism Surrounding Fed and U.S.-China Trade Relations

The S&P 500 rallied 4.9% this week, helped by the Fed softening its policy stance and by hope that U.S-China trade tensions would be meaningfully eased at the G-20 Leaders Summit. For the month, the benchmark index rose 1.8%.

Meanwhile, the Dow Jones Industrial Average gained 5.2%, the Nasdaq Composite gained 5.6%, and the Russell 2000 gained 3.0%. For the month, the respective indices gained 1.7%, 0.3%, and 1.5%.

The stock market had one of its best days of the year on Wednesday when Federal Reserve Chair Jerome Powell said he sees current interest rates "just below" neutral. That proved to be a rally point because the language Mr. Powell used in early October indicated a view that the fed funds rate was "a long way from neutral."

Mr. Powell added that there is no preset policy path, and the Fed will be data-dependent in its decision making, which pleased investors. By highlighting risks, though, that included previous rate increases, trade disputes, and Brexit/EU political uncertainty, the market chose to read between the lines that the Fed chair isn't wedded to three rate hikes in 2019.

On a related note, the FOMC's minutes from its November 7-8 meeting, which were released on Thursday, did nothing to upset the notion that the Fed will be hiking rates next month; the CME FedWatch Tool puts the chances at 82.7%.

Regarding U.S.-China trade, President Trump and President Xi are to take the G-20's main stage when they discuss trade matters over dinner on Saturday. U.S. Trade Representative Lighthizer said that he would be surprised if the dinner meeting was not a success. Perhaps causing some jitters, though, is the fact that notable China trade hawk Larry Kudlow is reportedly expected to attend the dinner meeting, along with other staff on hand.

A Wall Street Journal report published Thursday is probably as good a preview of what an eventual best-case outcome would be from the G-20 meeting between the two Presidents. The Wall Street Journal noted that (unnamed) officials on both sides have been floating the idea of forestalling any further tariffs through the spring to set the stage for a new round of talks to address changes in China's economic policy.

In addition to the trade speculation and dovish rhetoric from the Fed, there was a positive bias in the market this week due to the belief that the prior week's sell-off resulted in short-term oversold conditions. Efforts to pick up oversold issues, and some chasing behavior, helped fuel this week's gains, which ultimately turned November from a negative month into a positive month for the major indices.

This week, all S&P sectors finished higher with the consumer discretionary (+6.4%), information technology (+6.1%), health care (+5.9%), and communication services (+5.5%) sectors outperforming.

The rally began with the consumer discretionary group rising on the back of continued strength from the U.S. consumer. Reports of record online Black Friday sales and encouraging forecasts for Cyber Monday sales helped lift investor sentiment. The SPDR Retail ETF (XRT) rose 5.1% this week, and Amazon (AMZN) climbed 12.5%.

Conversely, the defensive-oriented real estate (+2.7%), consumer staples (+2.9%), and utility (+2.7%) sectors underperformed the broader market, though still finished with respectable gains.

In corporate news, General Motors (GM) announced additional restructuring plans that will result in a 15% reduction of its salaried staff and the closure of five of its North American plants. President Trump tweeted his disappointment in GM and is looking to cut all of its government subsidies. Separately, United Tech (UTX) announced its intention to split into three independent companies after the Dow component acquired Rockwell Collins earlier this month.

On the earnings front, Salesforce (CRM), Burlington Stores (BURL), Dollar Tree (DLTR), VMware (VMW), HP (HPQ), and Workday (WDAY) released upbeat reports, while Tiffany & Co (TIF), GameStop (GME), and J.M. Smucker (SJM) disappointed investors.

Looking at other markets, the Treasury yield curve saw some flattening with the 2-yr yield losing one basis point to 2.81%, and the 10-yr yield losing four basis points to 3.01%. The U.S. Dollar Index increased by 0.3% to 97.20, and WTI crude added 0.1% to $50.67/bbl, though lost over 20.0% this month.
Overseas, equity indices in the Asia-Pacific region closed the week on a modestly positive note with Japan's Nikkei (+3.3%) showing relative strength. In Europe, the major indices closed the week slightly higher with Italy's MIB (+2.5%) showing relative strength.

[ReturntoSender]

Stocks End Losing Week on Downbeat Note
07-Dec-18 16:25 ET
Dow -558.72 at 24388.95, Nasdaq -219.01 at 6969.25, S&P -62.87 at 2633.08

https://www.briefing.com/investor/markets/stock-market-update/2018/12/7/stocks-end-losing-week-on-downbeat-note.htm

[BRIEFING.COM] The S&P 500 lost 2.3% on Friday to close a losing week (-4.6%) on a sour note. The major averages fumbled an early morning rally effort and steadily retreated throughout the day to finish near session lows.

The Dow Jones Industrial Average lost 2.2%, the Nasdaq Composite lost 3.1%, and the Russell 2000 lost 2.0%. For the week, those indices lost 4.5%, 4.9%, and 5.6%, respectively.

The inability to sustain an early rally effort following Thursday's strong rebound, and a generally supportive employment report, raised some concern that the week's down leg had yet to run its course. Volatile price action also undercut investor sentiment and tempered confidence in buy-the-dip efforts.

Within the S&P 500, the information technology (-3.5%), consumer discretionary (-3.1%), and industrial (-2.6%) sectors underperformed the broader market.

Apple's (AAPL 168.49, -6.23, -3.6%) poor performance within the tech space was reflective of the ongoing effort to liquidate/reduce exposure to the market's most heavily-weighted group. The sector's non-response to Broadcom's (AVGO 228.56, +1.32, +0.6%) upbeat earnings report was also indicative of the negative sentiment hanging over the sector. The tech sector lost 5.1% this week and is now down 14.6% this quarter.

Chip stocks also struggled with the Philadelphia Semiconductor Index losing 3.7%. NVIDIA (NVDA 147.61, -10.68) underperformed with a notable loss of 6.8%.

Within the industrial sector, transport stocks were one of the most-heavily hit groups on Friday with the Dow Jones Transportation Average losing 3.9%, as growth concerns and an uptick in oil prices fed selling efforts. American Airlines (AAL 33.57, -3.37) and FedEx (FDX 201.39, -13.02) were notable laggards with steep losses of 9.1% and 6.1%, respectively.

On the other hand, the utilities (+0.4%) group was the only sector to finish in positive territory on Friday. The energy sector (-0.6%) also showed relative strength.

Looking at energy, OPEC+ producers agreed to a production cut of 1.2 million barrels per day to address weakening oil prices. Russia was a party to the proposed production cuts, yet Iran is reportedly exempt from the production cut requirements. WTI crude rose 2.0% to $52.60/bbl, although it gave up a good chunk of its gains.

In earnings, lululemon athletica (LULU 113.87, -17.57) and Ulta Beauty (ULTA 254.47, -38.45) fell 13.4% and 13.1%, respectively, after releasing their earnings reports. Lululemon sold-off despite beating top and bottom line estimates. Ulta tumbled after the company issued Q4 guidance below consensus.

U.S. Treasuries extended their recent climb, pushing yields lower, amid the equity sell-off. Friday's gains were led by the front end, which responded favorably to the November employment report and a contention from St. Louis Fed President Bullard (a 2019 FOMC voter) that the Fed could consider delaying a rate hike at the December FOMC meeting due to the narrowed yield curve.

Specifically, the 2-yr yield fell seven basis points to 2.70%, and the 10-yr yield fell two basis points to 2.85%. For the week, the 2-yr yield dropped 11 basis points, and the 10-yr yield dropped 16 basis points. Meanwhile, the U.S. Dollar Index decreased 0.2% to 96.92 on Friday.

Separately, the CBOE Volatility Index (VIX), which is often referred to as Wall Street's "fear gauge," rose 9.6% to 23.23. For the week, the VIX climbed nearly 30.0%.

Reviewing Friday's economic data, which included the Employment Situation Report for November, the Preliminary Reading for the University of Michigan Index of Consumer Sentiment for December, Wholesale Inventories for October, and Consumer Credit for October:

November nonfarm payroll growth was a little light of expectations, but key for the market was the recognition that average hourly earnings were up 0.2% month-over-month. The latter resulted in a year-over-year increase of 3.1%, which was unchanged for the 12-month period ending in October.
The key takeaway from the report is that the wage acceleration the Federal Reserve has been bracing for was missing. That won't likely keep the Federal Reserve from raising the target range for the fed funds rate at its December FOMC meeting, yet it's the type of data point that could lead the Federal Reserve to be more cautious-minded about raising rates after that.
The preliminary University of Michigan Index of Consumer Sentiment for December checked in at 97.5 (Briefing.com consensus 96.8), unchanged from the final reading for November and in-line with the two-year average from January 2017 to December 2018.
The key takeaway from the report is the observation that consumer attitudes around job and wage prospects are key to the consumer spending outlook and that some caution on that front may now be warranted as consumers recognize the goal of raising interest rates is to slow the pace of economic growth.
Wholesale inventories increased 0.8% in October (Briefing.com consensus 0.7%) on top of an upwardly revised 0.7% increase (from 0.4%) in September. Wholesale sales were down 0.2% following a downwardly revised 0.1% increase (from 0.2%) in September.
The key takeaway from the report is that inventory growth exceeded sales growth, which is a dynamic that could give way to lower pricing.
Total outstanding consumer credit increased by $25.4 billion in October after increasing an upwardly revised $11.6 billion (from $11.0 billion) in September.
The key takeaway from the report is that the healthy expansion in consumer credit is a good portent for consumer spending activity.

Looking ahead, investors will receive the JOLTS - Job Openings and Labor Turnover Survey on Monday.

Nasdaq Composite +1.0% YTD
Dow Jones Industrial Average -1.3% YTD
S&P 500 -1.5% YTD
Russell 2000 -5.7% YTD

Week in Review: Global Growth Concerns Pull Stocks Lower

The S&P 500 fell 4.6% this week, as global growth concerns were exacerbated by negative developments regarding U.S-China trade negotiations and the continued flattening of the U.S. Treasury yield curve. The Dow Jones Industrial Average lost 4.5%, the Nasdaq Composite lost 4.9%, and the Russell 2000 lost 5.6%.

Investors breathed a fleeting sigh relief that trade relations between the U.S. and China did not worsen over the weekend after the two countries agreed to suspend further tariff actions for 90 days to allow more time for trade discussions. Despite President Trump's optimism, the market's optimism quickly waned on the supposition that a March 1 deadline to resolve major trading issues won't be sufficient time to work out major trade issues that have been in place for years. Furthermore, the specter of increasing the tariff rate to 25% (from 10%) on $200 billion of Chinese goods should an acceptable deal not be reached weighed on investors' minds.

In addition, the news of the arrest of Huawei Technologies' CFO Meng Wanzhou heightened these burgeoning trade concerns. Ms. Meng was arrested Dec. 1 in Canada amid allegations that the company violated U.S. trade sanctions on Iran. Her arrest invited worries about trade negotiations going awry in the 90-day window and potential retaliation against U.S. companies doing business in/with China.

Economic growth concerns were cast into the spotlight by a decisive curve-flattening trade in the Treasury market that featured some inversions on the short end. The 2-yr yield (2.70%) and 3-yr yield (2.71%) closed higher than the yield on the 5-yr Treasury note (2.69%) this week.

Also, the difference between the 2-yr and 10-yr yields narrowed to its slimmest margin since 2007. Specifically, the 2-yr yield lost 11 basis points to 2.70%, and the 10-yr yield lost 16 basis points to 2.85%. Those moves were exacerbated by a "pain trade," as short sellers expecting higher rates were compelled to cover their bearish bets.

In a broader context, concerns over future economic growth drove concerns about future earnings growth. That fueled some of this week's selling interest, which completely unwound the 4.9% gain for the S&P 500 from the prior week at Friday's low.

Notably, that was the case despite there being one less day of trading. The market was closed Wednesday in recognition of the national day of mourning for President George H.W. Bush.

The worst-performing sectors this week were the financials (-7.1%), industrials (-6.3%), materials (-5.2%), information technology (-5.1%), and health care (-4.6%) sectors. The only two sectors that escaped the week with a gain were the utilities (+1.3%) and real estate (+0.3%) sectors.

The rate-sensitive financial sector was undermined by the flattening yield curve, which raised concerns about a compression in net interest margins. Regional banks were notable laggards as worries about lower mortgage loan demand stemmed from home builder Toll Brothers (TOL) acknowledging that it saw a moderation in demand in its fiscal fourth quarter ended Oct. 31 and that it saw the market soften further in November. The SPDR S&P Regional Bank ETF (KRE) fell 7.2% this week.

Transport stocks, in particular, weighed on the trade-sensitive industrial sector. The Dow Jones Transportation Average dropped 8.0% this week. American Airlines (AAL) struggled with a steep 16.4% loss this week.

Apple (AAPL) conceded more losses this week, as it dragged on the tech space. Apple has retreated over 20.0% since releasing its quarterly report in October and has remained a signpost of the ongoing effort to liquidate/reduce exposure to this widely-owned sector, which is still the market's most heavily-weighted sector.

The energy sector (-3.1%) was down for the week, yet it outperformed the broader market, helped by a 3.1% bump in oil prices to $52.52 per barrel.

Energy stocks pared gains on Friday after OPEC+ producers agreed to a production cut of 1.2 million barrels per day to address weakening oil prices. Russia was a party to the proposed production cuts; meanwhile, Iran will reportedly be exempt from the production cut requirements.

On a related note, Qatar, in a surprise move, announced plans to withdraw from OPEC to focus on gas production. Qatar has been a member of OPEC since 1961.

Separately, Atlanta Fed President Bostic (FOMC voter) said he thinks the fed funds rate is within shouting distance of neutral, which followed previous remarks from Dallas Fed President Kaplan (non-FOMC voter) who also suggested the fed funds rate is a little bit below neutral. A Wall Street Journal report also suggested that the Federal Reserve might be more cautious-minded about raising interest rates following its December FOMC meeting.

The November Employment Situation Report on Friday seemingly helped substantiate that view. It showed nonfarm payrolls increasing a weaker than expected 155,000 and average hourly earnings increasing 0.2%, which left them up 3.1% year-over-year, unchanged from October. In other words, the wage growth acceleration the Federal Reserve has been bracing for was missing.

Overseas, global markets finished the week with large losses as well. Germany's DAX (-4.2%) led the European retreat and Japan's Nikkei (-3.0%) led the decline in Asia.

[ReturntoSender]

Tech Stocks Help Lift Wall Street in Shaky Session
10-Dec-18 16:25 ET
Dow +34.31 at 24423.26, Nasdaq +51.27 at 7020.52, S&P +4.64 at 2637.72

https://www.briefing.com/investor/markets/stock-market-update/2018/12/10/tech-stocks-help-lift-wall-street-in-shaky-session.htm

[BRIEFING.COM] The S&P 500 gained 0.2% on Monday in what was yet another volatile day of trading on Wall Street. The benchmark index overcame a loss of 1.9% intraday despite the uncertainty surrounding trade, growth prospects, the path of interest rates, and geopolitics.

Meanwhile, the Dow Jones Industrial Average gained 0.1% after being down as much as 2.1%, Nasdaq Composite gained 0.7% after being down as much as 1.3%, and the Russell 2000 lost 0.3%, though it was down as much as 1.7%.

The major indices fell to session lows shortly after UK Prime Minster Theresa May announced she will be delaying the vote in Parliament originally scheduled for Tuesday on the UK-EU Brexit plan.

It wasn't exactly surprising news since it had been speculated before the open that Ms. May was likely going to announce today a delay in the vote. It was also reported that the vote would have likely been defeated had it been held on Tuesday. Nevertheless, the announcement crystallized the uncertainty surrounding the Brexit matter, which left it akin to pouring fuel on a fire of uncertainty on a host of other issues that have been weighing on investor sentiment and stock prices.

Consequently, there was some knee-jerk selling following the news. That selling interest, though, was soon met with buying activity that coincided with the close of European markets at 11:30 a.m. ET and a sharp rebound in shares of Apple (AAPL 169.60, +1.11, +0.7%) that took hold shortly thereafter.

There wasn't a specific catalyst for the turn in Apple, which had been knocked down early following reports that a court in China granted Qualcomm (QCOM 57.24, +1.25, +2.2%) an injunction against Apple, banning the import and sale of most iPhones in China due to a Qualcomm software patent.

Apple said the patents in question do not apply to the latest operating system that comes installed on all new iPhones, and has filed an appeal to overturn the sales ban, according to CNBC.

Within the S&P 500, the information technology (+1.4%) and communication services (+0.7%) outperformed to help lift the broader market from its early struggles.

Semiconductor stocks helped lead the tech sector rebound effort. The Philadelphia Semiconductor Index climbed 1.4% with Broadcom (AVGO 239.25, +10.69, +4.5%) extending its post-earnings gains from Friday. Facebook (FB 141.85, +4.43, +3.2%), meanwhile, carried the communication services sector following an announcement after Friday's close that it will be boosting its share buyback authorization by $9 billion.

The real estate sector (-0.4%) was one of only three sectors to close Monday with a loss. The other two were the energy (-1.6%) and financial (-1.4%) sectors, which fed into the concerns over economic growth along with the underperformance of the Dow Jones Transportation Average (-0.8%)

Looking at energy, WTI crude fell 2.9% to $51.10/bbl. Continued weakness in oil prices has been an influential drag on the oil-sensitive sector, which is now down over 17.0% this quarter. In the same period, crude is down 30.2%.

Monday's decline also extended the financial sector's position as the worst-performing group this month with a loss of 8.4%. Notable laggards included Wells Fargo (WFC 48.80, -1.46, -2.9%) and Bank of America (BAC 24.76, -0.67, -2.6%).

The contrasting performances from the heavily-weighted tech and financial sectors was a noteworthy occurrence. While the behavior of the technology stocks will likely command the most attention as a potential short-term market catalyst, the behavior of the financial sector should not be overlooked given its command position as a driver of economic activity.

Separately, the bond market settled down from last week's hot streak, pushing yields slightly higher. The 2-yr yield added two basis points to 2.72%, and the 10-yr yield added one basis point to 2.86%.

The U.S. Dollar Index climbed 0.7% to 97.20, benefiting largely at the expense of the British pound, which fell 1.7% to 1.2558 against the dollar as news of the delayed vote on the UK-EU Brexit plan stirred angst about the future of leadership in the UK and the specter of a messy "no deal" Brexit.

Overseas, global equities closed Monday on a lower note amid the uncertainty surrounding global trade issues and Brexit. Japan's Nikkei led the Asian retreat with a loss of 2.1%, and Germany's DAX led the European retreat with a loss of 1.5%.

Reviewing Monday's lone economic report, the JOLTS - Job Openings and Labor Turnover Survey for October showed job openings increased to 7.079 million from a revised 6.960 million (from 7.009 million) in September.

Looking ahead, investors will receive the NFIB Small Business Optimism Index for November and the Producer Price Index for November on Tuesday.

Nasdaq Composite +1.7% YTD
Dow Jones Industrial Average -1.2% YTD
S&P 500 -1.3% YTD
Russell 2000 -6.0% YTD

[ReturntoSender]

Stocks End Tumultuous 2018 on Positive Note
31-Dec-18 16:20 ET
Dow +265.06 at 23327.46, Nasdaq +50.76 at 6635.29, S&P +21.11 at 2506.81

https://www.briefing.com/investor/markets/stock-market-update/2018/12/31/stocks-end-tumultuous-2018-on-positive-note.htm

[BRIEFING.COM] The trading session is over and so is the tumultuous 2018 that gripped the stock market. The S&P 500 (+0.9%), Dow Jones Industrial Average (+1.2%), and Nasdaq Composite (+0.8%) pared yearly losses to 6.2%, 5.6%, 3.9%. The Russell 2000 (+0.8%), for its part, reduced its yearly loss to a disappointing 12.2%.

Thin trading conditions for most of the day contributed to another volatile session on Monday, though all 11 S&P 500 sectors did finish in the green. The health care (+1.4%) and consumer discretionary (+1.1%) sectors remained constant leaders, while the real estate (unch) and utilities (+0.2%) sectors underperformed.

Stocks jumped out to a gain of 1.0%, helped by another hopeful trade tweet from President Trump, but the early advance provided another excuse to sell into strength. The benchmark index would slip into negative territory (-0.1%) at around 11:30 a.m. ET.

The S&P 500 quickly recovered and traded in positive territory for the rest of the day, but not with the same confidence that contributed to its strong start.

Buying conviction was reserved with no news catalysts or economic data to sway investors -- until a last minute swarm of buyers pushed the indices to near session highs.

The CBOE Volatility Index (VIX) decreased 2.9 points to 25.42, ending the year well above its low from early August (10.17).

U.S. Treasuries ended the abbreviated bond market session with gains across the curve, despite the positive disposition in the stock market. The 2-yr yield decreased two basis points to 2.50%, and the 10-yr yield decreased five basis points to 2.69%, reaching its lowest level since February.

As a reminder, the stock market will be closed Tuesday, Jan. 1.

Nasdaq Composite -3.9% YTD
Dow Jones Industrial Average -5.6% YTD
S&P 500 -6.2% YTD
Russell 2000 -12.2% YTD

[ReturntoSender]

Stocks Still in Rally Mode
07-Jan-19 16:20 ET
Dow +98.19 at 23531.35, Nasdaq +84.61 at 6823.48, S&P +17.75 at 2549.65

https://www.briefing.com/investor/markets/stock-market-update/2019/1/7/stocks-still-in-rally-mode.htm

[BRIEFING.COM] The S&P 500 gained 0.7% on Monday, securing its fourth day of gains in the last five sessions. The Dow Jones Industrial Average gained 0.4%, the Nasdaq Composite gained 1.3%, and the Russell 2000 outperformed with a gain of 1.8%.

The major averages opened the session to some tepid buying interest. The S&P 500 briefly dipped into negative territory (-0.3%), but the pullback didn't gain any traction as the benchmark index steadily climbed to session highs (+1.4%) by early afternoon.

This resiliency to selling efforts following huge gains last Friday created some fear of missing out on further gains that helped drive up prices.

Stocks, however, began to lose steam at around 1:45 p.m. ET, shortly after President Trump tweeted that he will address the nation over border security Tuesday evening.

Nevertheless, selling didn't gain much traction, as nine of the 11 S&P 500 sectors finished the session with gains. The consumer discretionary (+2.4%) and energy (+1.3%) sectors outperformed, while the consumer staples (-0.3%) and utilities (-0.7%) groups dragged on the broader market.

Retail was a consistent group that outperformed and helped lift the consumer discretionary sector. The SPDR S&P Retail ETF (XRT 43.56, +1.31) rose 3.1%.

Notable movers included PG&E (PCG 18.95, -5.45) plunging 22.3% amid a possible bankruptcy filing and Loxo Oncology (LOXO 232.65, +92.78) soaring 66.3% after an offer to be acquired by Eli Lilly (LLY 115.28, +0.62, +0.5%) at a 68% premium over its Friday closing price. PG&E was an influential drag on the utilities sector.

U.S. Treasuries started the session in positive territory, but spent the bulk of the day in a retreat that coincided with a rally in the stock market. The 2-yr yield rose four basis points to 2.52%, and the 10-yr yield added two basis points to 2.68%. The U.S. Dollar Index fell 0.5% to 95.70, reaching its lowest close since mid-October.

Separately, the U.S. and China kicked off a two-day round of trade talks in Beijing on Monday.

Reviewing Monday's lone economic report, the ISM Non-Manufacturing Index for December:

The ISM Non-Manufacturing Index slipped to 57.6% in December (Briefing.com consensus 58.8%) from 60.7% in November. The dividing line between expansion and contraction is 50.0%, so the December reading reflects a deceleration in non-manufacturing business activity in the final month of 2018.
The key takeaway from the report is that it follows form with the ISM Manufacturing Index in showing a slowdown in activity in December. That is in keeping with the market's perception of economic matters and threatens to bleed into a slowdown in earnings growth.
According to ISM, the past relationship between the overall economy and the non-manufacturing index corresponds to a 3.2% increase in real GDP on an annualized basis.

Looking ahead, investors will receive the NFIB Small Business Optimism Index for December, the JOLTS - Job Openings and Labor Turnover report for November, and Consumer Credit for November on Tuesday.

Russell 2000 +4.2% YTD
Nasdaq Composite +2.8% YTD
S&P 500 +1.7% YTD
Dow Jones Industrial Average +0.9% YTD

[ReturntoSender]

Stocks Slide as China Stirs Global Growth Concerns
14-Jan-19 16:25 ET
Dow -86.11 at 23909.84, Nasdaq -65.56 at 6905.93, S&P -13.65 at 2582.57

https://www.briefing.com/investor/markets/stock-market-update/2019/1/14/stocks-slide-as-china-stirs-global-growth-concerns.htm

[BRIEFING.COM] The S&P 500 lost 0.5% on Monday, pulling back from a three-week winning streak. The benchmark index never traded in positive territory but it did cut its intraday losses in half. The Dow Jones Industrial Average (-0.4%) also finished off its low. The Nasdaq Composite (-0.9%) and the Russell 2000 (-1.0%) did, too, yet they did not fare as well overall.

The S&P 500 utilities (-2.3%), health care (-1.2%), and information technology (-0.9%) sectors weighed on the broader market. Conversely, the financials (+0.7%) sector helped offset losses and it was the only sector to finish in positive territory.

The broader market opened on a lower note, as disappointing trade data out of China stirred ongoing concerns over global economic growth. Specifically, China's exports unexpectedly declined 4.4% year-over-year in December and its imports declined 7.6%.

In addition, the amount of attention surrounding the partial U.S. government shutdown, which is currently the longest in U.S. history with no clear end in sight, also weighed on investor sentiment.

The S&P 500 managed to bounce off its early lows as Citigroup (C 58.93, +2.24, +4.0%) overcame early weakness that was initially attributed to some disappointment over a fourth quarter revenue shortfall that overshadowed better than expected earnings results driven in part by expense savings and a lower tax rate.

Citigroup was down more than 1.0% in pre-market hours but quickly reversed course shortly after the start of the trading session. Its quick turnaround, which several pundits attributed to a discounted valuation, helped lift other bank stocks and the financial space.

There was no coming back for PG&E (PCG 8.38, -9.21), however, after the company disclosed intentions to file for Chapter 11 bankruptcy protection amid possible liability for the California wildfires. The stock consequently plunged 52.4% and was a huge drag on the underperforming utilities sector.

U.S. Treasuries finished mixed with the 2-yr yield decreasing three basis points to 2.52% and the 10-yr yield adding one basis point to 2.71% in a curve-steepening trade. The U.S. Dollar Index lost 0.1% to 95.59. WTI crude lost 2.1% to $50.58/bbl.

Investors did not receive any economic data on Monday.

Looking ahead, investors will receive a couple of economic reports on Tuesday: the December Producer Price Index and the Empire State Manufacturing Survey. Also, the UK Parliament is expected to hold a widely-watched (and potentially market-moving) vote on the UK Brexit plan around 2:00 p.m. ET.

Russell 2000 +6.3% YTD
Nasdaq Composite +4.1% YTD
S&P 500 +3.0% YTD
Dow Jones Industrial Average +2.5% YTD

[ReturntoSender]

InvestmentHouse - No Time for the US to Back Off (Weekend Newsletter)

https://news.investmenthouse.com/2019/01/the-daily-part-1-of-3-1-19-19.html


- Indices move through next resistance as the third leg expands.
- Trade, Fed trump signs of slowing, some so-so earnings and some warnings.
- China injects massive liquidity, offers US $1T in purchases of goods. No time for the US to back off.
- Fed on the US' side or not?
- More leaders setting up to support the move higher.
- Many are claiming bear market is over, but don't forget that big top is still in place.

After an upside but somewhat disappointing Thursday, at least in terms of NASDAQ and the other indices still bumping the bottom of the October/December trading range, Friday was nothing but net. Renewed trade hope, Fed softening afterglow, and lingering positive bank earnings offset expiration, company layoffs, and weak consumer sentiment.

Stocks started higher and really never looked back. All indices cut well into the trading range, moving through the near resistance, putting distance on the resistance. That is key in turning resistance into support on a subsequent test -- and indices and stocks almost always test.

SP500 34.75, 1.32%
NASDAQ 72.77, 1.03%
DJ30 336.25, 1.38%
SP400 1.40%
RUTX 1.04%
SOX 2.30%
NASDAQ 100 0.98%

VOLUME: NYSE +10%, NASDAQ +15%. NYSE volume moved over average for the first time in a while, just squeezing past. NASDAQ trade was up but still below average. Not exactly explosive volume on expiration.

ADVANCE/DECLINE: NYSE 2.9:1, NASDAQ 2.3:1.

Trade: China is offering purchases of $1T in US goods as a trade deal enhancer. China is at a point it has to deal. 1T yuan in liquidity injected into its financial markets last week in a desperate effort to get its economy going again. Rates for shipping commodities into China plunging, indicating China is not importing nearly the same quantities. Tariffs crushing its economy.

Now the key is what Trump does. This is very reminiscent of the Reagan/Gorbachev nuclear negotiations. Gorbachev knew his economy was imploding as the USSR could not keep up with the economic engine Reagan restarted and used to fund the US military. So, Gorbachev offered everything the US had said it wanted to that point. At that juncture, Reagan's belief was confirmed -- the US was winning the economically and thus militarily. He turned down Gorbachev's offer. Why give up the benefits of a winning hand? We all know the outcome.

Back to Trump's next step. The market rallied late Thursday on a story Mnuchin had or was wanting to offer lifting tariffs as a good faith offering to aid in completing negotiations. Applying Reagan's, and I believe what is Trump's, way of thinking, however, that is the LAST thing the US should do. It would be viewed as weakness on our part by the Chinese. Likely it was Mnuchin, a former GS banker and globalist, acting on his own, applying his globalist views to the negotiation. No, we need to hold resolute, demand that China meet all our conditions, and let time work in our favor. China will only feel more pressure as its economy continues falling. 1T yuan injected in one week. An offer to buy $1T in US goods. That is, as the President would say, huge. Recognize it, understand it, use it. And yes, win.

The Fed, of course, has to be part of the game, and on the US' side at that. The US needs a strong economy to win the trade war and cement the US' position in the future. It is good the Fed is now more 'data dependent'; that helps.

But Powell has to wake up and realize he is not playing for the globe, he is playing for the US. Despite the popular meme many globalists like to parrot, the US is not dependent upon the rest of the world for prosperity. The rest of the world is dependent upon the US' prosperity. If we take care of what we need to do, i.e. play our game, the US and thus the rest of the world, is better off. The Fed appears to be better, but I am not sure it really understands its role in this negotiation.

I thus posit the question I have often put out: why do we have a Fed? If it can stymie the policy of our elected government, how is that constitutional? It is a construct of control that the Constitution does not allow for. It was created to benefit those in positions of power and it has worked to maintain their power ever since. Remember, the very wealthy are not as concerned about their total amount of wealth as they are in maintaining their relative amount of wealth and thus power. With that power comes their wealth. Contemplate that premise and its ramifications and then ask yourself my question again.


THE MARKET

CHARTS

The indices spent the week moving through more resistance, taking out the 50 day MA's, the Fibonacci retracements, and Friday moved through the barrier at the bottom of the trading ranges (though NASDAQ was already there). A very important move obviously. It speaks for itself.

Of course, when the indices are in such a big hole after December's selloff, moving back up results in taking on resistance after resistance. More is to come, and don't forget, this could just be a third upside leg in a relief move after the breakdown from the massive yearlong 2018 topping pattern.

Thus, we are enjoying the upside for sure with good positions already letting us bank gain and more to come. But, there is a long, long way to new highs and the top is disrupted at this point. Many are now convinced that the bear market of December is over and that a new or continuing bull market is in place.

Certainly there are good patterns that developed over the time of the rally, just as I said could be the case several weeks back. Those have set up the upside move and more are set up and breaking higher as well. Very encouraging as rallies MUST have leadership to succeed. They are getting it as well as others coming up from downtrends and reversing their action. To survive a rally needs that.

Again, however, this rally does not mean the top is obviated. We play the moves the market presents. You also keep in mind the top and watch for actions that start to cut against the upside move continuing, e.g. TEAM announcing great earnings doubling expectations, gapping higher but then reversing. That is just one case, but if it happens again and again, that is a warning sign. Thus far, it has been limited and the market is into its third leg.

NASDAQ: NASDAQ gapped upside to a doji, tapping the 100% retracement of the selloff from the first recovery peak of the December selloff. A bit of resistance there, but after moving through 7000, 7400 to 7450 is more likely a recovery level.

SP500: Gapped and rallied, putting more distance on the 50 day MA and breaking up through the bottom of the October/December trading range. Rising volume, moving back above average, but quite light for an expiration session. 2700 is next resistance on up to 2750ish.

DJ30: Finally broke up into the October/December range, clearing the 50 day MA and 61% Fibonacci retracement as well. Next resistance is 25,000 where the 200 day SMA resides as well as a series of price points from October including a series of gaps. Important level.

SOX: SOX broke through the 50 day MA a week back, spent last week testing that move, then Friday a big gap and run higher. Cleared the prior January peak, solid move. As goes SOX . . . typically so goes the rest of the market.

SP400: The midcaps are in recovery mode, clearing all resistance Thursday then gapping and rallying farther Friday. Closed at 1817, next resistance at the 78% Fibonacci retracement and the upper gap point from early December at 1825-1830.

RUTX: Early week RUTX moved through the 50 day MA and 61% Fibonacci retracement. Friday it moved through the bottom of the October/December trading range. Already close to the 78% Fibonacci retracement at 1490 (closed at 1482).


LEADERSHIP

FAANG: Lackluster Friday after an overall solid week that saw these stocks break higher early on. GOOG gapped to a doji below the 200 day SMA, AMZN gapped to the 200 day SMA and faded to basically flat. NFLX gapped higher early week, sold to near the 200 day SMA Friday after earnings; a good place to test and hold. FB gapped upside, faded to a doji on threats of a big fine. AAPL was up on the week though flat Friday.

Software: TEAM gapped higher on earnings, reversed to close with a loss at the 20 day EMA. CRM enjoyed a good week and was up 1.8% Friday. SPLK similar. COUP had a big week for us. FFIV struggling, ADBE trying to get back in the game, NOW still looks interesting.

Financial: Excellent week despite MS struggling on the day of earnings. GS, BAC, JPM, WFC -- good results.

Semiconductors: Some good moves as chips try to come back to life. LRCX gapped and rallied from an inverted head and shoulders at the end of a pullback. SIMO gapped and rallied nicely. UCTT moved but no volume. AMD, AMAT, MU, RMBS, SMTC look very interesting.

Pot: CRON surged Friday off a 10 day EMA test. CGC enjoyed a solid week. TLRY lagged.

Metals: Still improving in some areas. FCX up nicely late week, breaking up off the 50 day MA. CENX ditto.

Machinery: Really got going. CMI posted 2 big sessions to end the week. TEX moved up through resistance after a long downtrend. CAT approaching the 200 day SMA in its recovery.

Drugs: LLY surged Thursday but gapped lower Friday. Big biotech still decent, others are very mixed.

Energy: Service companies are not bad, e.g. SLB, HAL.


MARKET STATS

DJ30
Stats: +336.25 points (+1.38%) to close at 24706.35

Nasdaq
Stats: +72.76 points (+1.03%) to close at 7157.23
Volume: 2.45B (+15.02%)

Up Volume: 1.75B (+230M)
Down Volume: 669.77M (+175.78M)

A/D and Hi/Lo: Advancers led 2.26 to 1
Previous Session: Advancers led 1.68 to 1

New Highs: 33 (+3)
New Lows: 23 (-3)

S&P
Stats: +34.75 points (+1.32%) to close at 2670.71
NYSE Volume: 1.006B (+10.33%)

Up Volume: 845.091M (+185.834M)
Down Volume: 157.891M (-88.536M)

A/D and Hi/Lo: Advancers led 2.87 to 1
Previous Session: Advancers led 2.44 to 1

New Highs: 31 (+12)
New Lows: 12 (+1)


SENTIMENT

VIX: 17.80; -0.26
VXN: 21.89; -1.45
VXO: 17.76; +0.11

Put/Call Ratio (CBOE): 0.84; +0.04

Bulls and Bears:

After a quick crossover, a quick trist, bulls rebounded, bears fell a bit, and there is some separation. Still, the deed is done; they crossed over, typically a very good indication sentiment was extreme to the negative and sets up a move higher. We are seeing a move and now the indices are near the next key levels of resistance.

Bulls: 34.8 versus 29.9

Bears: 29.4 versus 34.6

Theory: When everyone is bullish and has put all their capital to work, where does the ammunition to drive the market come from? There is always new money to start a new year. After that is used will more money be coming? That is the question.




Bulls: 34.8 versus 29.9
29.9 versus 39.3 versus 45.4 versus 46.7 versus 38.3 versus 39.6 versus 42.9 versus 42.5 versus 50.5 versus 51.9 versus 56.3 versus 61.8 versus 60.6 versus 59.0 versus 57.7 versus 60.1 versus 59.6 versus 57.7 versus 57.3 versus 54.9 versus 54.5 versus 54.9 versus 55.3 versus 52.4 versus 47.1 versus 47.6 versus 52.0 versus 55.5 versus 52.9 versus 50.0 versus 49.1 versus 46.6 versus 43.1 versus 43.6 versus 48.0 versus 43.6 versus 42.2 versus 49.5 versus 55.5 versus 54.9 versus 48.6 versus 48.1 versus 48.5 versus 41.9 versus 54.4 versus 66.00

Bears: 29.4 versus 34.6
34.6 versus 21.4 versus 20.4 versus 21.50 versus 20.6 versus 19.8 versus 19.0 versus 19.8 versus 19.8 versus 19.0 versus 18.3 versus 18.5 versus 18.6 versus 18.3 versus 18.1 versus 18.3 versus 18.1 versus 18.3 versus 18.3 versus 18.6 versus 18.8 versus 18.6 versus 18.5 versus 18.5 versus 18.6 versus 18.4 versus 17.6 versus 17.8 versus 17.7 versus 19.2 versus 19.2 versus 19.4 versus 19.4 versus 20.6 versus 20.8 versus 19.6 versus 19.8 versus 18.6 versus 17.5 versus 16.8 versus 15.7 versus 15.5 versus 14.4 versus 14.6 versus 14.4 versus 15.5 versus 12.6 versus 12.8 versus 12.7 versus 13.5 versus 15.2 versus 15.1 versus 15.2 versus 15.1 versus 15.1 versus 15.4 versus 15.4 versus 14.4 versus 14.4 versus 15.1 versus 15.2 versus 15.1 versus 17.0 versus 17.1 versus 19.0 versus 20.2


OTHER MARKETS

Bonds: 2.788% versus 2.752%. Bonds continue fading the past two weeks after surging to that recovery high over the late summer peak.

Historical: the last sub-2% rate was in November 2016 (1.867%). 2.752% versus 2.727% versus 2.718% versus 2.706% versus 2.699% versus 2.733% versus 2.712% versus 2.731% versus 2.694% versus 2.668% versus 2.552% versus 2.643% versus 2.686% versus 2.716% versus 2.774% versus 2.811% versus 2.736% versus 2.788% versus 2.803%. versus 2.762% versus 2.821% versus 2.855% versus 2.895% versus 2.913% versus 2.908% versus 2.884% versus 2.863% versus 2.854% versus 2.892% versus 2.915% versus 2.979% versus 2.993% versus 3.032% versus 3.061% versus 3.058%


EUR/USD: 1.13636 versus 1.13919. Euro continues a 2 week fade after hitting the 200 day SMA. Still heading lower.

Historical: 1.13919 versus 1.13993 versus 1.14802 versus 1.14734 versus 1.14699 versus 1.15075 versus 1.15532 versus 1.14547 versus 1.14834 versus 1.13980 versus 1.13957 versus 1.13343 versus 1.14450 versus 1.14425 versus 1.1432 versus 1.13588 versus 1.14015 versus 1.13708 versus 1.13828 versus 1.13755 versus 1.13533 versus 1.13049


USD/JPY: 109.773 versus 109.133. Dollar continues its recovery, showing improbable strength.

Historical: Last below 109 in June 2018: 109.133 versus 108.912 versus 108.551 versus 108.340 versus 108.563 versus 108.332 versus 107.959 versus 108.802 versus 108.705 versus 108.517 versus 107.173 versus 107.515 versus 109.687 versus 110.273 versus 110.845 versus 111.190 versus 110.337 versus 111.223 versus 111.21 versus 112.521 versus 112.477 versus 112.653 versus 113.382


Oil: 54.04, +1.68. After a weeklong lateral move, oil breaks higher through the 52.50 and 50 day MA resistance. Nice inverted head and shoulders setup paying off upside.


Gold: 1282.60, -9.70. After consolidating just below the upper trendline in the triangle, gold broke lower Friday to the 20 day EMA.


TUESDAY

Market closed Monday for MLK day. Expiration was a big upside move. Perhaps some giveback early Tuesday, but not expecting the move to roll over without some kind of negative news on trade or the Fed this weekend.

If there is some weakness, we plan on using that to pick up some more upside positions. We purchased some Friday while some plays could not make up their mind. We will look at them this week along with some new plays that are set up quite well.

Right now it is that kind of market. The big top is still there, but the rally sparked a third leg this past week. As long as good plays continue setting up and break higher while providing good entries, we will use those to enter.

Have a great weekend!

[ReturntoSender]

Wall Street Mixed as Growth Concerns Limit Gains
24-Jan-19 16:25 ET
Dow -22.38 at 24553.24, Nasdaq +47.69 at 7072.97, S&P +3.63 at 2642.29

https://www.briefing.com/investor/markets/stock-market-update/2019/1/24/wall-street-mixed-as-growth-concerns-limit-gains.htm

[BRIEFING.COM] The S&P 500 eked out a gain of 0.1% on Thursday as it wavered between small gains and losses throughout the day. Another round of better-than-expected corporate earnings coupled with ongoing global growth concerns contributed to a mixed session on Wall Street.

The Dow Jones Industrial Average lost 0.1%, the Nasdaq Composite gained 0.7%, and the Russell 2000 gained 0.7%.

Some discouraging commentary from Commerce Secretary Wilbur Ross and European Central Bank President Mario Draghi helped temper buying interest.

Specifically, Mr. Ross said the U.S. and China are still "miles and miles" from reaching a trade deal, and Mr. Draghi acknowledged that significant stimulus is still needed for the eurozone. These comments stirred concerns about the pace of future economic growth, which in turn stirred concerns about the pace of future earnings growth.

Nevertheless, the cyclical information technology (+0.9%), energy (+0.6%), and industrial (+0.6%) sectors managed to outperform the broader market. Conversely, the consumer staples (-1.3%), health care (-0.9%), and material (-0.6%) sectors were the lone groups to finish in the red.

The Philadelphia Semiconductor Index was a notable pocket of strength on Thursday, rising 5.7% on the back of some strong earnings reports. The outperformance in chip stocks underpinned the strength in the heavily-weighted tech sector and the tech-heavy Nasdaq.

Heavyweight component Texas Instruments (TXN 102.09, +6.60) rose 6.9%, while Lam Research (LRCX 161.20, +21.87, +15.7%), Xilinx (106.06, +16.51, +18.4%), and Teradyne (TER 36.04, +4.11, +12.9%) each surged well over 10% following their earnings reports.

In addition, better-than-feared earnings and guidance from the transport stocks, particularly the airlines, helped lift the Dow Jones Transportation Average (+1.1%) and the industrial sector.

American Airlines (AAL 33.66, +2.01, +6.4%), Southwest Air (LUV 54.21, +3.19, +6.3%), JetBlue (JBLU 18.12, +0.88, +5.1%), and Union Pacific (UNP 160.34, +6.01, +3.9%) all beat earnings and revenue estimates.

On the other hand, McCormick (MKC 124.35, -14.65) was a bit of a story stock, dropping 10.5% after it missed Q4 top and bottom-line estimates and guided fiscal 2019 earnings and revenue below consensus. Its poor performance was a huge drag on the consumer staples sector (-1.3%). Another story stock was PG&E (PCG 13.95, +5.96, +74.6%), which surged late in the day on a report that a California investigation cleared the company from issues surrounding the 2017 Tubbs wildfire.

U.S. Treasuries ended on a higher note, pushing yields lower across the curve. The 2-yr yield decreased three basis points to 2.56%, and the 10-yr yield decreased four basis points to 2.71%. The U.S. Dollar Index rose 0.4% to 96.53, benefiting at the expense of the euro, which fell on the back of Mr. Draghi's cautious-minded remarks. WTI crude rose 1.0% to $53.15/bbl.

Reviewing Thursday's economic data, which included the weekly Initial and Continuing Claims report and the Conference Board's Leading Economic Index for December:

Weekly initial claims decreased by 13,000 to 199,000 (Briefing.com consensus 217,000) for the week ending January 19. That is the lowest level of initial claims since November 15, 1969. Continuing claims for the week ending January 12 dropped by 24,000 to 1.713 million.
The key takeaway from the report is that the low level of initial claims is reflective of a tight labor market.
The Conference Board's Leading Economic Indicators Index decreased 0.1% in December (Briefing.com consensus -0.1%) after increasing 0.2% in November. The Leading Indicators report for December included estimates for manufacturers' new orders for consumer goods and materials for November and December and Building Permits for December due to the ongoing partial government shutdown. The Conference Board will not release its annual benchmark revision of indicators until underlying data become available once the government reopens.
The key takeaway from the report is that the Conference Board sees a path to GDP growth slowing to 2.0% by the end of 2019.

Investors will not receive any notable economic data on Friday.

Russell 2000 +8.6% YTD
Nasdaq Composite +6.6% YTD
S&P 500 +5.4% YTD
Dow Jones Industrial Average +5.3% YTD

[ReturntoSender]

Wall Street Extends Gains, Led by Mega-Cap Stocks
04-Feb-19 16:25 ET
Dow +175.48 at 25239.37, Nasdaq +83.67 at 7233.20, S&P +18.34 at 2724.83

https://www.briefing.com/investor/markets/stock-market-update/2019/2/4/wall-street-extends-gains-led-by-megacap-stocks.htm

[BRIEFING.COM] The S&P 500 gained 0.7% on Monday with shares of mega-cap companies leading the advance. The Dow Jones Industrial Average gained 0.7%, the Nasdaq Composite gained 1.2%, and the Russell 2000 gained 1.0%.

A mega-cap rally characterized the day's trading action for most of the session with buying interest concentrated among a handful of names ahead of Alphabet's (GOOG 1132.80, +22.05, +2.0%) earnings report after the close. A last minute swarm of broad-based buyers, though, pushed most sectors to finish near their best levels of the day.

The S&P 500 information technology (+1.6%), industrials (+1.3%), and communication services (+1.0%) sectors outperformed the broader market.

Shares of widely-held companies like Apple (AAPL 171.25, +4.73, +2.8%), Microsoft (MSFT 105.74, +2.96, +2.9%), Facebook (FB 169.25, +3.54, +2.1%), and Netflix (NFLX 351.34, +11.49, +3.4%) all rose more than 2.0%.

Defense stocks increased, too, underpinning the strength in the industrials sector. The iShares Dow Jones US Aerospace & Defense ETF (ITA 198.86, +4.06) gained 2.1%.

Some story stocks from Monday included Clorox (CLX 158.38, +8.52, +5.7%) and Sysco (SYY 66.64, +3.07, +4.8%), both of which beat earnings estimates. Also, Ultimate Software (ULTI 332.54, +54.71) surged 19.7% after the company received a cash buyout offer led by private equity firm Hellman & Friedman for $11 billion, or $331.50/share.

The health care (-0.3%) and materials (-0.2%) sectors underperformed the broader market and were the only sectors ending Monday with a loss.

U.S. Treasuries also finished the day with losses, pushing yields higher across the curve. The 2-yr yield and 10-yr yield increased three basis points each to 2.53% and 2.72%, respectively. The U.S. Dollar Index gained 0.3% to 95.84. WTI crude lost 1.2% to $54.61/bbl.

Reviewing Monday's lone economic report, the Factory Orders report for November:

Factory orders declined 0.6% in November (Briefing.com consensus +0.3%) on the heels of a 2.1% decline in October. Excluding transportation, orders were down 1.3% in November following a 0.2% increase in October.
The key takeaway from the report is that it showed a drop in business investment in November, evidenced by the 0.6% decline in new orders for nondefense capital goods excluding aircraft. That raises the potential for a further decline in December since the November softness preceded the big market sell-off in December and the start of the partial government shutdown in January that were drags on business confidence.

Looking ahead, investors will receive the ISM Non-Manufacturing Index for January on Tuesday.

Russell 2000 +12.5% YTD
Nasdaq Composite 10.7% YTD
S&P 500 +8.7% YTD
Dow Jones Industrial Average +8.2% YTD

[ReturntoSender]

Wall Street Climbs on Trade Hope, Border Security Agreement
12-Feb-19 16:25 ET
Dow +372.65 at 25425.76, Nasdaq +106.71 at 7414.63, S&P +34.93 at 2744.69

https://www.briefing.com/investor/markets/stock-market-update/2019/2/12/wall-street-climbs-on-trade-hope-border-security-agreement.htm

[BRIEFING.COM] The S&P 500 gained 1.3% on Tuesday, as optimism that U.S. lawmakers reached a tentative agreement to prevent another government shutdown helped fuel broad-based buying interest. Investors also remained hopeful for progress on the ongoing U.S-China trade talks.

The Dow Jones Industrial Average gained 1.5%, the Nasdaq Composite gained 1.5%, and the Russell 2000 gained 1.3%.

President Trump expressed some reservations about the agreement, which included funding that was short of the $5.7 billion requested by the White House, but believed that another shutdown was not likely. As for trade, President Trump said there are no plans for a meeting with President Xi at the end of March, but confirmed that the deadline could be extended if real progress is evident.

Tuesday's gains helped the S&P 500 close above its 200-day moving average (2743) for the first time since Dec. 3.

10 of the 11 S&P 500 sectors finished with gains with materials (+2.3%), consumer discretionary (+1.7%), industrials (+1.6%), and financials (+1.6%) leading the advance. Conversely, the real estate (-0.7%) sector was the lone group to finish with a loss.

While gains were largely broad-based, some company-specific news helped Brighthouse Financial (BHF 40.68, +4.98, +14.0%) and Coty (COTY 10.87, +1.21, +12.5%) lead the S&P 500 in gains.

Brighthouse Financial rose after the company more than doubled its total year-over-year revenue. Coty rose after JAB Holding Company sent out a tender offer to acquire up to 150 million additional shares of the beauty company for $11.65/share in cash.

On the other hand, Facebook (FB 165.04, -0.75) was a notable laggard, losing 0.5% after California Governor Gavin Newsom proposed a "digital dividend" that would require technology companies to share profits with consumers in exchange for collecting information, according to Bloomberg.

Molson Coors Brewery (TAP 59.19, -6.17) fell 9.4% after the company's audit committee invalidated the consolidated financial statements for 2016 and 2017. The committee cited material weakness in its prior financial reporting of deferred tax liabilities for its conclusion.

U.S. Treasuries ended the day on a lower note, pushing yields higher across the curve. The 2-yr yield and the 10-yr yield increased two basis points each to 2.50% and 2.68%, respectively. The U.S. Dollar Index pulled back 0.4% to 96.72, recording its first loss of the month. WTI crude rose 1.4% to $53.12/bbl.

Reviewing Tuesday's economic data, which included the NFIB Small Business Optimism Index for January and the JOLTS - Job Openings report for December:

The NFIB Small Business Optimism Index for January decreased to 101.2 from the prior reading of 104.4 in December.
The December Job Openings and Labor Turnover Survey showed that job openings increased to 7.335 million from a revised 7.166 million (from 6.888 million) in November.

Looking ahead, investors will receive the Consumer Price Index for January, the weekly MBA Mortgage Applications Index, and the Treasury Budget for December on Wednesday.

Russell 2000 +14.1% YTD
Nasdaq Composite +11.8% YTD
S&P 500 +9.5% YTD
Dow Jones Industrial Average +9.0% YTD

[ReturntoSender]

Rally Marches On as Trade Talks Advance, Government Avoids Shutdown
15-Feb-19 16:25 ET
Dow +443.86 at 25883.25, Nasdaq +45.46 at 7472.43, S&P +29.87 at 2775.56

https://www.briefing.com/investor/markets/stock-market-update/2019/2/15/rally-marches-on-as-trade-talks-advance-government-avoids-shutdown.htm

[BRIEFING.COM] The S&P 500 gained 1.1% on Friday, as investors were relieved to hear that U.S.-China trade-talks produced some progress and that Congress passed a funding resolution to avoid another government shutdown. Friday's advance increased the benchmark index's weekly gain to 2.5%.

The Dow Jones Industrial Average (+1.7%), the Nasdaq Composite (+0.6%), and the Russell 2000 (+1.6%) also extended their weekly gains to 3.1%, 2.4%, and 4.2%, respectively.

All 11 S&P 500 sectors finished higher, led by gains in financials (+2.0%), energy (+1.6%), and health care (+1.5%). Conversely, the utilities (+0.3%) and communication services (+0.4%) sectors underperformed but still finished with modest gains.

A week-long round of trade negotiations in Beijing came to a conclusion on Friday, although structural issues -- forced technology transfers, enforcement oversight, and China subsidizing domestic industries -- were unresolved.

Still, investors were pleased to hear that mid-level talks are expected to continue in Washington next week. President Trump expressed optimism, saying talks are going extremely well, while he continued to weigh the possibility of extending the March 1 deadline.

President Trump signed a bipartisan funding resolution, which included funding that was well short of the $5.7 billion requested for border security. As many thought he might, President Trump declared a national emergency, setting up a likely legal battle, to secure adequate funding from other departments to build a border wall.

It was still a positive day for the market, evidenced by the broad-based gains. PepsiCo (PEP 115.91, +3.32, +3.0%) and NVIDIA (NVDA 157.34, +2.81, +1.8%) for instance were undeterred by underwhelming corporate results.

On the other hand, shares of Newell Brands (NWL 17.16, -4.53, -20.9%) and Mattel (MAT 13.82, -3.09, -18.3%) were clobbered on Friday following disappointing guidance, both of which included weak fiscal 2019 guidance.

U.S. Treasuries edged lower, pushing yields slightly higher. The 2-yr yield increased two basis points to 2.52%, and the 10-yr yield increased one basis point to 2.67%. The U.S. Dollar Index decreased 0.1% to 96.90. WTI crude rose 2.0% to $55.56/bbl.

Reviewing Friday's batch of economic data, which included Export and Import Prices for January, the Empire State Manufacturing Survey for February, Industrial Production and Capacity Utilization, and the preliminary University of Michigan Index of Consumer Sentiment for February:

Import prices fell 0.5% in January and are down 1.7% over the last 12 months. Excluding fuel, they are down 0.2% over the last 12 months. Export prices declined 0.6% in January and are down 0.2% over the last 12 months. Excluding agricultural products, export prices are also down 0.2% year-over-year.
The key takeaway is that the Import-Export Price Indexes for January tracked in a way that should keep the Federal Reserve tracking on its patient-minded path.
The Empire Manufacturing Survey for February increased to 8.8 (Briefing.com consensus 7.0) from the prior month's unrevised reading of 3.9.
Industrial production declined 0.6% in January (Briefing.com consensus +0.2%) following a downwardly revised 0.1% increase (from 0.3%) in December. The January downturn was driven by a large drop in motor vehicle assemblies. The capacity utilization rate fell to 78.2% (Briefing.com consensus 78.8%) from an upwardly revised 78.8% (from 78.7%).
The key takeaway from the report is that it will feed into concerns about a slowing U.S. economy. Manufacturing production fell 0.9% due to the downturn in motor vehicle assemblies, but excluding that factor, manufacturing production was still down 0.2% with decreases logged for most other major durable goods industries.
The University of Michigan's preliminary index of consumer sentiment for February increased to 95.5 (Briefing.com consensus 94.0) from the final reading of 91.2 for January, as attitudes improved with the end of the partial government shutdown and the Federal Reserve hitting the pause button on its interest rate hikes.
The key takeaway from the report is the indication that consumers' long-term inflation expectations fell to the lowest level recorded in the past half century, which is a vantage point that is certain to register in the Federal Reserve's willingness to be patient-minded with its policy approach.

Looking ahead, the stock market will be closed Monday for Washington's Birthday, and investors will not receive any economic data.

Russell 2000 +16.4% YTD
Nasdaq Composite +12.6% YTD
Dow Jones Industrial Average +11.0% YTD
S&P 500 +10.7% YTD

[ReturntoSender]

Stocks Drift Higher, on Pace for Historic Quarter
28-Mar-19 16:10 ET
Dow +91.87 at 25717.46, Nasdaq +25.79 at 7669.15, S&P +10.07 at 2815.44

https://www.briefing.com/investor/markets/stock-market-update/2019/3/28/stocks-drift-higher-on-pace-for-historic-quarter.htm

[BRIEFING.COM] The S&P 500 increased 0.4% on Thursday, led by shares of the recently-battered financial and industrial stocks. Stocks drifted higher as Treasuries stabilized, while investors continued to wait for further clarity on a U.S.-China trade resolution, earnings guidance, and U.S. economic growth prospects.

The Dow Jones Industrial Average gained 0.4%, the Nasdaq Composite gained 0.3%, and the Russell 2000 gained 0.8%.

The S&P 500 materials (+1.0%), financials (+0.8%), and industrial (+0.8%) sectors outperformed the broader market. Conversely, the utilities (-1.3%) and communication services (-0.5%) sectors were the lone groups to finish with losses.

A U.S. trade delegation, which included USTR Robert Lighthizer and Treasury Secretary Steven Mnuchin, arrived in Beijing for a two-day meeting on Thursday. Reuters reported Wednesday evening that Chinese negotiators made "unprecedented" proposals on a range of issues including forced technology transfers. Despite the progress, the market continues to wait for a substantive, final trade deal.

In earnings news, lululemon athletica (LULU 167.54, +20.74, +14.1%), PVH Corp (PVH 127.26, +16.37, +14.8%), and Accenture (ACN 175.12, +8.65, +5.2%) all beat top and bottom-line estimates and provided upbeat guidance, sending shares notably higher.

In M&A news, WABCO Holdings (WBC 131.48, -14.53, -10.0%) agreed to be acquired by ZF Friedrichshafen for $136.50/share, or over $7 billion, in cash.

Nielsen (NLSN 23.66, -2.97) was another story stock, dropping 11.2%, after The New York Post reported that Blackstone pulled out of the bidding process to acquire the company.

U.S. Treasuries edged lower, pushing yields higher. The 2-yr yield and the 10-yr yield increased two basis points each to 2.23% and 2.39%, respectively. The U.S. Dollar Index rose 0.5% to 97.24. WTI crude decreased 0.3% to $59.27/bbl.

Reviewing Thursday's economic data, which included the weekly Initial and Continuing Claims report, the third estimate of Q4 GDP, and Pending Home Sales for February:

Initial claims for the week ending March 23 decreased by 5,000 to 211,000 (Briefing.com consensus 220,000) from the revised prior week level of 216,000 (from 221,000) while continuing claims for the week ending March 16 increased by 13,000 to 1.756 mln from the revised prior week level of 1.743 mln (from 1.750 mln).
The key takeaway from the report is that initial claims have approached the lower end of range that has been in effect over the past year while continuing claims hover near the middle of their range from the past year.
The third estimate for Q4 GDP showed a downward revision to 2.2% from 2.6% (Briefing.com consensus 2.5%) and a downward revision to the GDP Price Deflator to 1.7% from 1.8% (Briefing.com consensus 1.8%).
The key takeaway from the report is that even with the downward revision, real GDP increased 3.0% from the fourth quarter of 2017 to the fourth quarter of 2018, down slightly from the previous estimate of 3.1%. Measured from the 2017 annual level to the 2018 annual level, real GDP increased 2.9%.
Pending Home Sales decreased 0.1% in February (Briefing.com consensus 0.5%). Today's reading follows a revised increase of 4.3% in January (from 4.6%).

Looking ahead, investors will receive several economic reports on Friday, which will include Personal Spending for January, the Core PCE Price Index for January, Personal Income for February, New Home Sales for February, and the revised University of Michigan Index of Consumer Sentiment for March.

Nasdaq Composite +15.6% YTD
Russell 2000 +13.8% YTD
S&P 500 +12.3% YTD
Dow Jones Industrial Average +10.3% YTD

[ReturntoSender]

Stocks Pare Tariff-Related Losses as Investors Still Hope for a Deal
06-May-19 16:20 ET
Dow -66.47 at 26438.48, Nasdaq -40.71 at 8123.27, S&P -13.17 at 2932.47

https://www.briefing.com/investor/markets/stock-market-update/2019/5/6/stocks-pare-tariffrelated-losses-as-investors-still-hope-for-a-deal.htm

[BRIEFING.COM] The S&P 500 declined 0.5% on Monday, although it had dropped as much as 1.6% after threats from President Trump to increase China tariffs fueled concerns about a trade deal. Investors regrouped to buy the dip, though, lifting stocks off their lows on hopes that a trade deal will still be secured.

The Dow Jones Industrial Average lost 0.3%, and the Nasdaq Composite lost 0.5%. The domestically-oriented Russell 2000 managed to finish higher by 0.1%.

President Trump said on Sunday that he will increase tariffs on $200 billion of imported Chinese goods to 25% from 10%, effective Friday. An additional $325 billion of imported goods could also face a 25% tax. The news rattled equity markets around the world and catalyzed a 5.6% drop in China's Shanghai Composite.

The worst levels in the U.S., however, came at the beginning of the day as all 11 S&P 500 sectors traded lower. Buying interest throughout the day contributed to a steady advance off early lows.

Many market participants viewed President Trump's threat more as a negotiation tactic to speed up trade talks than a move prevent the completion of a trade deal. Confidence that President Trump would not try to upend a market coming off session highs by jeopardizing a deal supported a reversal in stocks. China reportedly said it still plans to send a trade delegation to Washington this week.

There is increased uncertainty, though, which contributed to the underperformance of the S&P 500 materials (-1.4%), industrials (-1.0%), and information technology (-0.8%) sectors. These sectors contain many companies with Chinese exposure. The health care sector (+0.6%) was the lone group to finish higher.

The energy sector (-0.1%) showed relative strength following positive reactions to Occidental Petroleum (OXY 58.77, +0.82, +1.4%) revising its offer to acquire Anadarko Petroleum (APC 75.49, +2.77, +3.8%) to include more cash. Shares of Chevron (CVX 118.40, +1.13, +1.0%) also outperformed on the news, as its likely defeats its proposal to acquire Anadarko for a premium.

A turnaround in oil prices ($62.31/bbl, +0.38, +0.6%) amid rising tensions between the U.S. and Iran also provided some support for the energy space.

U.S. Treasuries finished higher but lost steam as equities regained buying interest. The 2-yr yield declined one basis point to 2.31%, and the 10-yr yield declined three basis points to 2.50%. The U.S. Dollar Index finished little changed at 97.53.

Investors did not receive any economic data on Monday.

Looking ahead, investors will receive the JOLTS - Job Openings survey for March and the Consumer Credit report for March on Tuesday.

Nasdaq Composite +22.4% YTD
Russell 2000 +19.8% YTD
S&P 500 +17.0% YTD
Dow Jones Industrial Average +13.3% YTD

[ReturntoSender]

Stocks decline following news that trade talks have stalled
17-May-19 16:25 ET
Dow -98.68 at 25764.00, Nasdaq -81.76 at 7816.26, S&P -16.79 at 2859.53

https://www.briefing.com/investor/markets/stock-market-update/2019/5/17/stocks-decline-following-news-that-trade-talks-have-stalled.htm

[BRIEFING.COM] The S&P 500 lost 0.6% on Friday, closing near session lows, following late-session news that talks between the U.S. and China have stalled. The Dow Jones Industrial Average lost 0.4%, the Nasdaq Composite lost 1.0%, and the Russell 2000 lost 1.4%.

Prior to the news, the stock market began the day retreating from a three-day advance after China called out the U.S. on its aggressive negotiating tactics. China suggested the U.S. change its approach if it wants to come to Beijing for meaningful discussions.

The major averages, however, each rallied into positive territory after consumer sentiment for May hit a 15-year high. It should be mentioned, though, that the results were tabulated before the recent setback in trade negotiations with China and implementation of new tariff rates on both sides. This understanding helped temper buying interest.

Still, the S&P 500 was on pace for a relatively flat week before CNBC reported that scheduling discussions for further trade talks have been put on hold since the White House increased scrutiny of "Chinese telecom companies." Although the news wasn't entirely surprising, it did stir concerns about possible retaliation from China.

The cyclical S&P 500 industrials (-1.1%), energy (-1.1%), information technology (-0.8%), and consumer discretionary (-0.8%) sectors led Friday's retreat. The utilities sector (+0.5%) was the lone sector to finish in the green.

Deere & Co. (DE 134.82, -11.17, -7.7%) and China's Baidu (BIDU 128.31, -25.39, -16.5%) dropped noticeably following disappointing results/guidance attributed to weakness in China. Many semiconductor stocks with Chinese exposure also underperformed. The Philadelphia Semiconductor Index lost 2.0%

Tesla (TSLA 211.03, -17.30) fell 7.6% after CEO Elon Musk emailed employees that he will be reviewing all expenses as part of "hardcore" cost cutting efforts. Pinterest (PINS 26.70, -4.16) fell 13.5% after missing earnings estimates and guiding FY19 revenue below consensus.

Separately, the U.S. and Canada agreed to eliminate aluminum and steel tariffs within 48 hours. The White House also confirmed that President Trump will delay auto tariffs for 180 days. Market reaction was muted to both developments, as reports earlier this week had already suggested these outcomes.

U.S. Treasuries finished mixed in a curve-flattening trade. The 2-yr yield increased one basis point to 2.21%, and the 10-yr yield declined two basis points to 2.39%. The U.S. Dollar Index increased 0.1% to 97.99. WTI crude declined 0.4% to $62.73/bbl.

Reviewing Friday's economic data, which included the preliminary University of Michigan Index of Consumer Sentiment for May and the Conference Board's Leading Economic Index for April:

The Conference Board's Leading Economic Index increased 0.2% in April, as expected, following a downwardly revised 0.3% increase (from 0.4%) in March.
The key takeaway from the report is that strengths among the leading indicators became more widespread than weaknesses; nonetheless, the 0.6% increase for the six months ending in April 2019 was much slower than the 2.1% growth during the previous six months.
The preliminary University of Michigan Index of Consumer Sentiment jumped to 102.4 (Briefing.com consensus 96.9) in May from 97.2 in April. The May reading is the highest reading since 2004.
The key takeaway from the report is that it was driven by positive attitudes about the outlook, although it would be remiss not to mention that the results were tabulated before the recent setback in trade negotiations with China and implementation of new tariff rates on both sides. That understanding raises the prospect of a downward revision with the final report for May.

Investors will not receive any notable economic data on Monday.

Nasdaq Composite +17.8% YTD
S&P 500 +14.1% YTD
Russell 2000 +13.9% YTD
Dow Jones Industrial Average +10.4% YTD

[ReturntoSender]

Tech stocks lead Wall Street lower
20-May-19 16:20 ET

https://www.briefing.com/investor/markets/stock-market-update/2019/5/20/tech-stocks-lead-wall-street-lower.htm

Dow -84.10 at 25679.90, Nasdaq -113.91 at 7702.35, S&P -19.30 at 2840.23
[BRIEFING.COM] The S&P 500 declined 0.7% on Monday, led lower by the technology stocks. Lingering concerns about Chinese retaliation against U.S. tech companies following U.S. scrutiny of Huawei Technologies dampened general buying interest.

The Dow Jones Industrial Average lost 0.3%, and the Russell 2000 lost 0.7%. The Nasdaq Composite underperformed with a loss of 1.5%.

Alphabet (GOOG 1138.85, -23.45, -2.0%) and many of the semiconductor companies reportedly began suspending business activity with Huawei to comply with new regulation that requires U.S. government approval to work with the Chinese firm. Lumentum Holdings (LITE 44.42, -1.90, -4.1%) cut its fiscal Q4 guidance to reflect lost business from Huawei.

The possibility that other semiconductor companies could also lower their guidance, and the possibility that China could retaliate against U.S. tech companies, weighed heavily on the Philadelphia Semiconductor Index (-4.0%) and the S&P 500 information technology sector (-1.8%).

Despite the gloomy mood in tech space, the broader market had rallied well off its session lows during the day. An overall lack of buying conviction, however, sent stocks back to their opening lows before a rebound in the last 45 minutes of action helped stocks close off those levels.

The S&P 500 real estate (-1.6%), materials (-1.5%), and communication services (-1.2%) sectors joined the tech sector (-1.8%) as the day's worst-performers. The utilities (+0.2%), financials (+0.1%), and energy (+0.1%) sectors were the lone sectors to finish higher.

Apple (AAPL 183.09, -5.91, -3.1%) was a notable underperformer and was further pressured by HSBC cutting its price target to $174 from $180. Tesla (TSLA 205.36, -5.67, -2.7%) finished well off its session lows (-7.5%), but it still closed at its lowest level since Dec. 2016 after Wedbush cut its price target to $230 from $275.

In M&A news, FCC Chairman Ajit Pai indicated his support for the merger deal between T-Mobile US (TMUS 78.29, +2.92, +3.9%) and Sprint (S 7.34, +1.16, +18.9%). Shares surged on the news, but lost steam after a report indicated that the Department of Justice is leaning against the merger.

U.S. Treasuries finished lower despite the negative disposition in equities. The 2-yr yield increased one basis point to 2.22%, and the 10-yr yield increased two basis points to 2.42%. The U.S. Dollar Index declined 0.1% to 97.95. WTI crude increased 0.9% to $63.30/bbl on rising U.S.-Iran tensions and OPEC+ producers signaling that production cuts may last throughout 2019.

Investors did not receive any economic data on Monday. Looking ahead, investors will receive Existing Home Sales for April on Tuesday.

Nasdaq Composite +16.1% YTD
S&P 500 +13.3% YTD
Russell 2000 +13.1% YTD
Dow Jones Industrial Average +10.1% YTD

[ReturntoSender]

Wall Street declines amid persisting trade uncertainty
22-May-19 16:20 ET
Dow -100.72 at 25776.61, Nasdaq -34.88 at 7750.82, S&P -8.09 at 2856.27

https://www.briefing.com/investor/markets/stock-market-update/2019/5/22/wall-street-declines-amid-persisting-trade-uncertainty.htm

[BRIEFING.COM] The stock market wavered with modest losses on Wednesday, leaving the S&P 500 down 0.3%, amid persisting trade uncertainty. The prevalence, and volatile nature, of trade headlines that have no clear end-date helped curb some of yesterday's trade-related enthusiasm.

The Dow Jones Industrial Average lost 0.4%, the Nasdaq Composite lost 0.5%, and the Russell 2000 lost 0.9%.

Reports that the U.S. is considering blacklisting several other Chinese firms put a damper on Apple (AAPL 182.78, -3.82, -2.1%) and many of the stocks within the Philadelphia Semiconductor Index (-2.1%). Qualcomm (QCOM 69.31, -8.44, -10.9%) was further pressured by a federal judge ruling against the company in an antitrust case.

All of the S&P 500 cyclical sectors finished lower. The energy sector (-1.6%) led the decline amid lower oil prices ($61.40/bbl, -$1.67, -2.6%), which were pressured by the trade uncertainty and some bearish inventory data.

This uncertainty also fostered some defensive positioning in U.S. Treasuries and in the S&P 500 utilities (+0.8%), health care (+0.6%), consumer staples (+0.6%) and real estate (+0.4%) sectors.

The 2-yr yield declined two basis points to 2.22%, and the 10-yr yield declined three basis points to 2.39%. The U.S. Dollar Index finished little changed at 98.09.

Perhaps reassuring for the market was some assurance from the Fed that interest rates will remain low, at least according to the minutes from the Apr. 30-May 1 FOMC meeting. The minutes, however, didn't produce any meaningful effect on the market considering the meeting occurred three weeks ago.

In earnings news, shares of retailers Lowe's (LOW 97.94, -13.16, -11.9%), Nordstrom (JWN 34.35, -3.50, -9.3%), and Urban Outfitters (URBN 24.34, -2.66, -9.9%) dropped noticeably following their results and/or guidance. Target (TGT 77.56, +5.60), on the other hand, climbed 7.8% on its upbeat results and guidance.

Reviewing Wednesday's economic data, which included the FOMC Minutes and the weekly MBA Mortgage Applications Index:

The Minutes from the May FOMC meeting showed that policymakers are comfortable with the current fed funds rate range while "a number of participants" saw a moderation in risk and uncertainties surrounding their outlooks for the year.
The key takeaway is that the stock market has a reasonable assurance to think policy rates are going to remain quite low on a real and nominal basis. Low rates are supportive for risk assets like stocks.
The weekly MBA Mortgage Applications Index rebounded 2.4% following a 0.6% decline in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report and New Home Sales for April on Thursday.

Nasdaq Composite +16.8% YTD
S&P 500 +13.9% YTD
Russell 2000 +13.6% YTD
Dow Jones Industrial Average +10.5% YTD

[ReturntoSender]

Stocks cap strong week on slightly lower note
21-Jun-19 16:20 ET
Dow -34.04 at 26719.13, Nasdaq -19.63 at 8031.70, S&P -3.72 at 2950.46

https://www.briefing.com/investor/markets/stock-market-update/2019/6/21/stocks-cap-strong-week-on-slightly-lower-note.htm

[BRIEFING.COM] The stock market finished slightly lower on this quadruple-witching expiration Friday, as it cooled off from a big stretch of gains. The S&P 500 declined 0.1%, but it did set a new intraday high (2964.63) and finished the week higher by 2.2%.

The Dow Jones Industrial Average (-0.1%) and the Nasdaq Composite (-0.2%) trimmed their weekly gains to 2.4% and 3.0%, respectively. The Russell 2000 (-0.9%) underperformed but still finished the week with a gain of 1.8%.

It was a tight-ranged session with neither buyers nor sellers showing much conviction. Indications that the Fed and other central banks are leaning more dovish remained a measure of support for equities, which contributed to a flattish session instead of a pullback.

The S&P 500 energy (+0.8%), utilities (+0.5%), health care (+0.4%), and communication services (+0.4%) sectors were today's best performers. The real estate (-1.1%), industrials (-0.5%), and information technology (-0.5%) sectors trailed the pack.

Energy stocks continued to benefit from higher oil prices ($57.37/bbl, +$0.25, +0.4%) and also from an explosion at the East Coast's largest refinery on Friday. The move in oil wasn't that noticeable, especially considering it was only a fraction of its 9% weekly gain, but the underlying geopolitical driver had some investors feeling cautious.

After Iran shot down a U.S. military drone on Thursday, President Trump said he ordered a retaliatory strike on Tehran but scrapped the plans ten minutes prior to launch. Mr. Trump said he didn't think the damage inflicted would have been proportional to shooting down an unmanned drone.

Separately, Reuters reported that the Department of Commerce barred several more Chinese supercomputing companies from purchasing parts from U.S. companies. The Philadelphia Semiconductor Index lost 0.7%.

The news provided mixed signals ahead of planned talks with China next week. Earlier in the day, Vice President Mike Pence canceled a Monday speech that was expected to carry a hawkish tone, suggesting that the U.S. did not want to upset Beijing before the G-20 summit.

U.S. Treasuries backtracked from their best levels of the year, driving yields higher across the curve. The 2-yr yield increased six basis points to 1.78%, and the 10-yr yield increased seven basis points to 2.07%. The U.S. Dollar Index lost 0.4% to 96.20.

Reviewing Friday's lone economic report, Existing Home Sales for May:

Existing home sales increased 2.5% month-over-month in May to a seasonally-adjusted annual rate of 5.34 million (Briefing.com consensus 5.30 million) from an upwardly revised 5.21 million (from 5.19 million) in April. Total sales were 1.1% lower than the same period a year ago.
The key takeaway from the report is that the drop in mortgage rates spurred increased sales activity. At the same time, though, the lower rates drove increased demand that helped push the median home price to a record high in an inventory-constrained market.

Investors will not receive any economic data on Monday.

Nasdaq Composite +21.1% YTD
S&P 500 +17.7% YTD
Russell 2000 +14.9% YTD
Dow Jones Industrial Average +14.5% YTD

[ReturntoSender]

Q3 Begins on Higher Note
01-Jul-19 16:15 ET
Dow +117.47 at 26717.43, Nasdaq +84.92 at 8091.16, S&P +22.57 at 2964.33

https://www.briefing.com/investor/markets/stock-market-update/2019/7/1/q3-begins-on-higher-note.htm

[BRIEFING.COM] The stock market began the week on a higher note, but the major averages were only able to keep a portion of their gains through the close. The S&P 500 gained 0.8% after being up 1.0% at the start while the tech-heavy Nasdaq rose 1.1% after starting the session with a 1.7% gain.

The strong open was owed to a positive view of Saturday's meeting between President Trump and China's President Xi Jinping. While the meeting did not yield concrete steps toward reaching a trade deal, it also did not lead to an escalation of the dispute. Instead, President Trump agreed to relax restrictions on sales of components to Huawei and agreed to not impose additional tariffs on imports from China at this time.

Stocks surged out of the gate with chipmakers leading the opening rally, which was not a surprise given the group's sensitivity to trade-related matters. The PHLX Semiconductor Index was up nearly 5.0% at the start of the session but trimmed its gain to 2.7% by the close. Huawei supplier Inphi (IPHI 53.67, +3.57, +7.1%) was the top performer within the group, rallying 7.1%. Semiconductor giant, Intel (INTC 48.05, +0.18, +0.4%), jumped above its 200-day moving average (48.85) at the start, but narrowed its gain to just 0.4% as the session wore on.

The technology sector (+1.5%) remained atop the leaderboard into the close, but like the rest of the market, the top-weighted group settled closer to its session low than its high.

Equities backed off their starting levels during intraday action, as optimism about the weekend outcome of the Trump-Xi meeting was partially offset by the realization that the economic situation in major export centers remains weak. To that point, China's Manufacturing PMI (actual 49.4) remained in contractionary territory in the final June reading, Japan's Manufacturing PMI decreased to 49.3 from 49.5, and the Manufacturing PMI for the eurozone slipped to 47.6 from 47.8. Adding insult to injury, South Korea reported that its exports decreased 13.5% yr/yr in June.

To be fair, the U.S. ISM Manufacturing Index also decreased in June (to 51.7 from 52.1), but it remained in expansionary territory, serving as a reminder that the U.S. economy is still a pocket of relative strength. On that note, the U.S. economic expansion entered its 121st consecutive month today, representing the longest expansionary streak on record.

Relative strength in U.S. data gave a boost to the U.S. Dollar Index, which climbed 0.7% to 96.82, reclaiming its 200-day moving average in the process.

Treasuries ended in the red with shorter tenors leading the retreat. The 10-yr yield rose three basis points to 2.03% while the 2-yr yield rose five basis points to 1.79%.

Today's economic data was limited to the June ISM Manufacturing Index and Construction Spending for May:

The ISM Manufacturing Index for June checked in at 51.7% (Briefing.com consensus 51.5%), down from 52.1% in May. The dividing line between expansion and contraction is 50.0%.
The key takeaway from the report is that it shows weakening manufacturing activity. June was the third straight month in which there was a decelerating pace of growth. This should capture the Fed's attention as it contemplates a rate-cut decision at its July 30-31 FOMC meeting.
Total construction spending declined 0.8% m/m in May (Briefing.com consensus 0.0%) following an upwardly revised 0.4% increase (from 0.0%) in April. Overall, construction spending was down 2.3% yr/yr.
The key takeaway from the report is that private construction spending remains noticeably weak, held back by a downturn in residential spending.

Market participants will not receive any noteworthy data tomorrow.

Nasdaq Composite +21.9% YTD
S&P 500 +18.3% YTD
Russell 2000 +16.4% YTD
Dow Jones Industrial Average +14.5% YTD

[ReturntoSender]

Stocks lose ground amid analyst downgrades, dampened rate-cut hopes
08-Jul-19 16:25 ET
Dow -115.89 at 26806.23, Nasdaq -63.41 at 8098.38, S&P -14.46 at 2975.95

https://www.briefing.com/investor/markets/stock-market-update/2019/7/8/stocks-lose-ground-amid-analyst-downgrades-dampened-ratecut-hopes.htm

[BRIEFING.COM] The S&P 500 lost 0.5% on Monday, pressured by analyst downgrades and waning hopes for a 50-basis points rate cut at the end of the month. With the major indices near record highs, investors adopted a cautious mindset in front of speeches from several Fed officials this week.

The Dow Jones Industrial Average lost 0.4%, the Nasdaq Composite lost 0.8%, and the Russell 2000 lost 0.9%.

With more market participants presumably back from the holiday break, the market had a more comprehensive day to digest the better-than-expected June employment report that was released on Friday. Unlike Friday, though, where stocks rallied from session lows despite the subdued rate-cut expectations, Monday's session exhibited a lack of buying conviction.

Contributing to this lack of conviction were a slew of negative-minded analyst recommendations, which featured Apple (AAPL 200.02, -4.21, -2.1%) being downgraded to Sell from Neutral at Rosenblatt. Morgan Stanley, meanwhile, downgraded global equities to Underweight from Equal-Weight, citing a poor outlook for equities over the next three months.

Weakness in Apple contributed to the underperformance in the S&P 500 information technology sector (-0.7%). Losses from the materials (-1.1%), communication services (-0.9%), health care (-0.8%), industrials (-0.7%), and financials (-0.6%) sectors also hindered the broader market.

Selling was kept in check though, with the real estate sector (+0.4%) providing offsetting support, as the market was able to stay above Friday's session lows.

The market also appeared willing to wait to hear from several Fed officials throughout the week. Fed Chair Powell will speak three times this week, but most attention will likely be centered on his semi-annual monetary policy testimony on Capitol Hill on Wednesday and Thursday.

In other corporate news, shares of Boeing (BA 351.12, -4.74, -1.3%) underperformed the broader market amid news that a Saudi airline opted out of $5.9 billion 737 Max order in favor of Airbus.

U.S. Treasuries finished little changed in a quiet session. The 2-yr yield increased one basis point to 1.89%, and the 10-yr yield declined one basis point to 2.03%. The U.S. Dollar Index increased 0.1% to 97.41. WTI crude increased 0.2% to $57.40/bbl.

Reviewing Monday's lone economic data, the Consumer Credit report for May:

Consumer credit increased by $17.1 billion in May (Briefing.com consensus $17.7 billion) on the heels of an unrevised $17.5 billion in April.
The key takeaway from the report is that the increase was driven by growth in both nonrevolving and revolving credit.

Looking ahead, investors will receive the NFIB Small Business Optimism Index for June and the JOLTS - Job Opening report for May on Tuesday.

Nasdaq Composite +22.1% YTD
S&P 500 +18.7% YTD
Russell 2000 +15.8% YTD
Dow Jones Industrial Average +14.9% YTD

[ReturntoSender]

S&P 500 ekes out gain ahead of Powell testimony
09-Jul-19 16:20 ET
Dow -22.65 at 26783.58, Nasdaq +43.35 at 8141.73, S&P +3.68 at 2979.63

https://www.briefing.com/investor/markets/stock-market-update/2019/7/9/s-and-p-500-ekes-out-gain-ahead-of-powell-testimony-.htm

[BRIEFING.COM] The S&P 500 increased 0.1% on Tuesday, as shares of large-cap technology stocks helped the stock market overcome a slow start. Overall, there appeared to be a wait-and-see mindset for potential market-moving catalysts this week, including Fed Chair Powell's semiannual monetary policy testimony on Capitol Hill tomorrow.

The Nasdaq Composite increased 0.5%, and the Russell 2000 increased 0.1%. The Dow Jones Industrial Average (-0.1%), however, lost ground as shares of 3M (MMM 165.70, -3.49, -2.1%) underperformed after the stock was downgraded to Sector Perform from Outperform at RBC Capital Mkts.

The stock market's lowest levels of the day came at the open, but investors quickly bought the dip, lifting the major indices from session lows. It still looked like the S&P 500 would close lower for the third straight day, though, until a swarm of buyers in the last 30 minutes of action helped stocks close near session highs.

Solid gains in the FAANG stocks -- Facebook (FB 199.21, +3.45, +1.8%), Apple (AAPL 201.24, +1.22, +0.6%), Amazon (AMZN 1988.30, +35.98, +1.8%), Netflix (NFLX 379.93, +3.77, +1.0%), and Alphabet (GOOG 1124.83, +8.48, +0.8%) -- contributed to the positive disposition. The S&P 500 real estate sector (+0.5%) was Tuesday's best-performing sector.

On the downside, the materials (-1.0%), consumer staples (-0.6%), and industrials (-0.2%) sectors were the lone sectors that finished lower. PepsiCo's (PEP 131.74, -0.82, -0.6%) better-than-expected earnings results were unable to stir further buying interest in the stock or the consumer staples sector.

In other corporate news, Acacia Communications (ACIA 64.91, +16.85, +35.1%) agreed to be acquired by Cisco (CSCO 56.34, +0.15, +0.3%) for $2.6 billion, or $70 per share, in cash. The deal represented a 46% premium to ACIA's closing price on Monday.

Separately, USTR Lighthizer and Treasury Secretary Mnuchin spoke to China's Vice Premier Liu He on Tuesday, according to CNBC. Market reaction was muted, as it was expected that there would be a phone call this week to continue trade talks.

U.S. Treasuries finished slightly lower in another tight-ranged session. The 2-yr yield increased one basis point to 1.90%, and the 10-yr yield increased two basis points to 2.05%. The U.S. Dollar Index advanced 0.1% to 97.51. WTI crude increased 0.7% to $57.79/bbl.

Reviewing Tuesday's economic data, which included NFIB Small Business Optimism Index for June and the JOLTS - Job Opening report for May.

The NFIB Small Business Optimism Index for June decreased to 103.3 from 105.0 in May.
The May Job Openings and Labor Turnover Survey showed that job openings decreased to 7.323 million from a revised 7.372 million (from 7.449 million) in April.

Looking ahead, investors will receive the FOMC Minutes from the June meeting, the Wholesale Inventories for May, and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +22.7% YTD
S&P 500 +18.9% YTD
Russell 2000 +15.8% YTD
Dow Jones Industrial Average +14.8% YTD

[ReturntoSender]

Stock market hits new highs after Powell boosts rate-cut expectations
10-Jul-19 16:15 ET
Dow +76.71 at 26860.29, Nasdaq +60.80 at 8202.53, S&P +13.44 at 2993.07

https://www.briefing.com/investor/markets/stock-market-update/2019/7/10/stock-market-hits-new-highs-after-powell-boosts-ratecut-expectations.htm

[BRIEFING.COM] The S&P 500 gained 0.5% on Wednesday, briefly surpassing 3000 for the first time after Fed Chair Powell fueled the market's expectations for a rate cut at the July 30-31 FOMC meeting. The Dow Jones Industrial Average (+0.3%) and the Nasdaq Composite (+0.8%) also set new intraday highs with the Nasdaq finishing at a record close. The Russell 2000 increased 0.2%.

Fed Chair Powell took to Capitol Hill for his semiannual testimony on monetary policy, but the market didn't have to wait for it to begin to hurriedly leap to record highs. The market received Mr. Powell's prepared remarks before his testimony, and the market interpreted the written statement as a strong case for at least a 25-basis points rate cut given the uncertainty in the economic outlook.

There was already a 100% implied likelihood for a 25-basis points cut in the fed funds rate prior to today, according to the fed funds futures market. The probability for a 50-basis points cut, however, did increase to 26.6% from 3.3% yesterday. Contributing to the recalculation was Fed Chair Powell saying that the stronger-than-expected June employment report did not alter the Fed's mindset, contrary to the market's thinking last Friday.

The dovish tone helped eight of the 11 S&P 500 sectors finish higher. The S&P 500 energy sector (+1.4%) led the advance, buoyed by higher oil prices ($60.48/bbl, +$2.69, +4.7%) amid bullish inventory data and supply disruption in the Gulf of Mexico. The financials (-0.5%), industrials (-0.3%), and materials (-0.2%) sectors were the only sectors that finished lower.

The Fed also released the minutes from the June FOMC meeting, although market reaction was muted as Fed Chair Powell's comments provided a more updated view on monetary policy. Mr. Powell will head back to Congress tomorrow to conclude his testimony.

Shorter-dated U.S. Treasuries increased noticeably on growing expectations for a sharp rate cut, driving the 2-yr yield down eight basis points to 1.82%. The 10-yr yield increased one basis point to 2.06%. The U.S. Dollar Index declined 0.4% to 97.10.

Separately, American Airlines (AAL 32.94, +0.58, +1.8%) was a notable gainer on Wednesday after it raised its Q2 guidance for unit revenue and pre-tax margin. Deere (DE 160.81, -2.54) fell 1.6% after UBS downgraded the stock to Neutral from Buy, although it did raise its price target to $167.

Reviewing Wednesday's economic data, which included Wholesale Inventories for May and the weekly MBA Mortgage Applications Index:

Wholesale inventories increased 0.4% in May, as expected, on top of an unrevised 0.8% increase for April. Wholesale sales increased 0.1% following an unrevised 0.4% decline in April.
The key takeaway from the report is that inventory growth continues to outpace sales growth on a year-over-year basis, which should help keep price pressures in check.
The weekly MBA Mortgage Applications Index declined 2.4% following a 0.1% decline in the prior week.

Looking ahead, investors will receive the Consumer Price Index for June, the weekly Initial and Continuing Claims report, and the Treasury Budget for June on Thursday.

Nasdaq Composite +23.6% YTD
S&P 500 +19.4% YTD
Russell 2000 +16.1% YTD
Dow Jones Industrial Average +15.1% YTD

[ReturntoSender]

S&P 500, Dow close at record highs amid lingering rate-cut optimism
11-Jul-19 16:20 ET
Dow +227.88 at 27088.17, Nasdaq -6.49 at 8196.04, S&P +6.84 at 2999.91

https://www.briefing.com/investor/markets/stock-market-update/2019/7/11/s-and-p-500-dow-close-at-record-highs-amid-lingering-ratecut-optimism.htm

[BRIEFING.COM] The S&P 500 (+0.2%) and Dow Jones Industrial Average (+0.9%) closed at record highs on Thursday amid lingering rate-cut optimism. The Dow also hit the 27,000 level for the first time, but the Nasdaq Composite (-0.1%) and Russell 2000 (-0.5%) were unable to keep pace.

Despite the record highs, Thursday's session was relatively tight ranged. The S&P 500 quickly challenged its intraday high (3003) from yesterday, which is also its all-time high, but was unable to surpass it as the market appeared tired after a big stretch of gains.

Thursday's leaders included most of the S&P 500 cyclical sectors. The industrials (+0.7%), financials (+0.6%), and materials (+0.4%) sectors finished atop the standings. The real estate sector (-1.2%) was the day's outright laggard amid higher U.S. Treasury yields.

The 2-yr yield increased three basis points to 1.85%, and the 10-yr yield increased six basis points to 2.12%. The U.S. Dollar Index declined 0.1% to 97.06. WTI crude declined 0.4% to $60.26/bbl.

Fed Chair Powell wrapped up his semiannual testimony on Capitol Hill on Thursday, which didn't differ too much from yesterday's session. Mr. Powell's dovish tone assured the market's thinking that the Fed will cut the fed funds rate by at least 25 basis points at the July 30-31 FOMC meeting.

Higher-than-expected consumer inflation data, however, did temper some expectations for a 50-basis points rate cut. The core reading in the Consumer Price Index for June rose 0.3% (Briefing.com consensus 0.2%), raising the yr/yr rate to 2.1% versus 2.0% in May. According to the fed funds futures market, the implied likelihood for a 50-basis points cut declined to 20.4% from 26.6% yesterday.

Separately, the White House abandoned its proposal to eliminate rebates from government drug plans, which benefited shares of health insurers and companies with exposure to pharmacy benefit management.

UnitedHealth (UNH 261.16, +13.68, +5.5%), CVS Health (CVS 57.97, +2.59, +4.7%), and Cigna (CI 175.34, +14.83, +9.2%) rose on the news, but pharmaceutical companies like Merck (MRK 81.00, -3.82, -4.5%) and Pfizer (PFE 42.98, -1.08, -2.5%) underperformed. The S&P 500 health care sector was unchanged.

In earnings news, Fastenal (FAST 30.36, -0.89, -2.9%) disappointed investors by missing profit estimates. Delta Air Lines (DAL 60.16, +0.69, +1.2%), on the other hand, reported better-than-expected results and raised its full-year guidance.

Reviewing Thursday's economic data, which included the Consumer Price Index for June, the weekly MBA Mortgage Applications Index, and the Treasury Budget for June:

Total CPI increased 0.1% m/m in June (Briefing.com consensus 0.0%) while core CPI, which excludes food and energy, rose 0.3% (Briefing.com consensus +0.2%). On a yr/yr basis, total CPI was up 1.6%, versus 1.8% in May, while core CPI was up 2.1%, versus 2.0% in May.
The key takeaway from the report was that the yr/yr uptick in core CPI should seemingly diminish the prospect of a 50-basis points rate cut at the July meeting.
Initial claims for the week ending July 6 decreased by 13,000 to 209,000 (Briefing.com consensus 222,000). Continuing claims for the week ending June 29 jumped by 27,000 to 1.723 million.
The key takeaway from the report is that it continues to reflect a tight labor market where employers are reluctant to let go of employees.
The Treasury Budget for June showed a deficit of $8.5 billion versus a deficit of $74.8 billion for the same period one year ago. The Treasury Budget is not seasonally adjusted, so the June deficit cannot be compared to the $207.7 billion deficit for May.
The fiscal year-to-date deficit is $747.1 billion versus a deficit of $607.1 billion for the same period ago. The budget deficit over the last 12 months is $919 billion, versus $985.4 billion for the 12 months ending in May.

Looking ahead, investors will receive the Producer Price Index for June on Friday.

Nasdaq Composite +23.5% YTD
S&P 500 +19.7% YTD
Dow Jones Industrial Average +16.1% YTD
Russell 2000 +15.5% YTD

[ReturntoSender]

CSX, transport stocks lead market lower
17-Jul-19 16:20 ET
Dow -115.78 at 27219.85, Nasdaq -37.59 at 8185.20, S&P -19.62 at 2984.42

https://www.briefing.com/investor/markets/stock-market-update/2019/7/17/csx-transport-stocks-lead-market-lower.htm

[BRIEFING.COM] The S&P 500 lost 0.6% on Wednesday, pressured by noticeable losses in the transport stocks after CSX Corp. (CSX 71.38, -8.17, -10.3%) provided disappointing earnings results and guidance. The broader market traded modestly lower for most of the day with losses accelerating into the close.

The Dow Jones Industrial Average lost 0.5%, the Nasdaq Composite lost 0.5%, and the Russell 2000 lost 0.7%.

CSX was presumably the biggest influence on the transports, but earnings warnings from trucking companies Knight-Swift (KNX 35.08, -0.81, -2.3%) and Covenant Transport (CVTI 14.65, -0.51, -3.4%) also contributed to the negative sentiment. Strikingly, the transports were among the best performers yesterday amid easing concerns about a downturn in the sector.

Evidently, the negative-minded guidance brought out the naysayers, yielding losses across the space and big losses in shares of road and rail companies like Union Pacific (UNP 164.55, -10.60, -6.1%) and Norfolk Southern (NSC 191.02, -15.44, -7.5%). The Dow Jones Transportation Average lost 3.6%, wiping out its monthly advance.

The S&P 500 industrials sector (-2.2%) was Wednesday's outright laggard, nearly doubling the losses of the second-worst performing energy sector (-1.2%). There were some bright spots in the space, though. Top-weighted component Boeing (BA 369.52, +6.77) rose 1.9% on no specific news catalyst, while United Airlines (UAL 94.78, +0.86, +0.9%) and Cintas (CTAS 260.37, +20.93, +8.7%) advanced on better-than-expected earnings results.

The S&P 500 utilities (+0.4%) and health care (+0.02%) sectors were the lone sectors that finished higher. Abbott Labs (ABT 85.76, +2.60, +3.3%) gave the health care sector some support after pleasing investors with its earnings results.

Despite earnings-related gains in Bank of America (BAC 29.19, +0.20, +0.7%) and U.S. Bancorp (USB 54.22, +1.18, +2.2%), the S&P 500 financial sector (-0.9%) was unable to gain any ground. Most components finished lower, as the decline in U.S. Treasury yields, and some curve-flattening, weighed on the sector.

The 2-yr yield declined three basis points to 1.83%, and the 10-yr yield declined six basis points to 2.06%. The U.S. Dollar Index lost 0.2% to 97.21. WTI crude lost 1.4% to $56.78/bbl.

Separately, The Wall Street Journal published a report right before the close, indicating that the U.S. and China remain conflicted about restrictions on Huawei Technologies. The report may have contributed to the increased selling into the close.

Reviewing Wednesday's economic data, which included Housing Starts and Building Permits for June and the weekly MBA Mortgage Applications Index:

Housing starts declined 0.9% m/m in June to a seasonally adjusted annual rate of 1.253 million units (Briefing.com consensus 1.270 million) while building permits declined 6.1% m/m to a seasonally adjusted annual rate of 1.220 million (Briefing.com consensus 1.300 million).
The key takeaway from the report is that the single-family supply dynamic will remain a limiting issue for the overall housing market as single-family starts were down 0.8% yr/yr while single-family permits were down 4.7% yr/yr.
The weekly MBA Mortgage Applications Index declined 1.1% following a 2.4% decline in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Philadelphia Fed Index for July, and the Conference Board's Leading Economic Index for June on Thursday.

Nasdaq Composite +23.4% YTD
S&P 500 +19.1% YTD
Dow Jones Industrial Average +16.7% YTD
Russell 2000 +15.0% YTD

[ReturntoSender]

Wall Street lifted by trade news, positive earnings reports
23-Jul-19 16:15 ET
Dow +177.29 at 27349.19, Nasdaq +47.27 at 8251.41, S&P +20.44 at 3005.47

https://www.briefing.com/investor/markets/stock-market-update/2019/7/23/wall-street-lifted-by-trade-news-positive-earnings-reports.htm

[BRIEFING.COM] The S&P 500 increased 0.7% on Tuesday, bolstered by encouraging trade news and positive earnings reports from widely-held companies. The Dow Jones Industrial Average (+0.7%), Nasdaq Composite (+0.6%), and Russell 2000 (+0.7%) advanced in-line with the benchmark index.

It had been a tight-ranged session for a good part of the day despite positive earnings results and guidance from a diversified group of companies like Coca-Cola (KO 54.33, +3.11, +6.1%), United Technologies (UTX 134.94, +1.99, +1.5%), Sherwin-Williams (SHW 490.23, +35.64, +7.8%), and Biogen (BIIB 243.88, +11.40, +4.9%). Travelers (TRV 147.50, -2.21, -1.5%), however, did come up short of expectations.

Unsurprisingly, a positive trade headline helped energize the slow-moving market. Bloomberg reported that USTR Lighthizer and other senior officials will head to China next week to continue trade talks from Monday to Wednesday. Although this possibility had been reported earlier and many high-level talks in the past have yielded little progress, the good mood in the market flowing from earnings seemed to sway the market.

The news pushed the S&P 500 back above the 3000 level, where it would stay above on a closing basis. Ten of the 11 S&P 500 sectors finished higher, led by the trade-sensitive materials (+2.0%) and industrials (+1.2%) sectors. The utilities sector was the lone holdout, finishing lower by 0.6%.

Qualcomm (QCOM 74.12, -1.83, -2.4%) was also left out of the advance after The Wall Street Journal reported that Apple (AAPL 208.84, +1.62, +0.8%) is considering buying Intel's (INTC 51.75, +0.40, +0.8%) smartphone-modem chip business for around $1 billion. The Philadelphia Semiconductor Index finished up 1.2%.

Separately, Congress reached a deal to increase the budget deficit and suspend the debt ceiling for two years. The news provided some relief for investors, but market reaction was mostly muted as the dilemma never appeared to hinder the market beforehand and it was reported yesterday that a deal was close.

U.S. Treasuries finished on a lower note, pushing yields higher across the curve. The 2-yr yield increased two basis points to 1.83%, and the 10-yr yield increased three basis points to 2.07%. The U.S. Dollar Index advanced 0.5% to 97.74, helped by some weakness in the euro. WTI crude rose 0.9% to $56.72/bbl.

Reviewing Tuesday's economic data, which included Existing Home Sales for June and the FHFA Housing Market Index for May:

Existing home sales decreased 1.7% month-over-month in June to a seasonally-adjusted annual rate of 5.27 million (Briefing.com consensus 5.30 million) from an upwardly revised 5.36 million (from 5.34 million) in May. Total sales were 2.2% lower than the same period a year ago.
The key takeaway from the report is that the drop in mortgage rates has failed to spur a meaningful pickup in existing home sales, which continue to be constrained by the lack of available supply at lower price points.
The FHFA Housing Price Index for May increased 0.1% after advancing 0.4% in June.

Looking ahead, investors will receive New Home Sales for June and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +24.4% YTD
S&P 500 +19.9% YTD
Dow Jones Industrial Average +17.2% YTD
Russell 2000 +15.3% YTD

[ReturntoSender]

Stock market slips from record highs in front of eventful week
29-Jul-19 16:15 ET
Dow +28.90 at 27221.35, Nasdaq -36.88 at 8293.33, S&P -4.89 at 3020.97

https://www.briefing.com/investor/markets/stock-market-update/2019/7/29/stock-market-slips-from-record-highs-in-front-of-eventful-week.htm

[BRIEFING.COM] The S&P 500 lost 0.2% on Monday, slipping from record highs in a lackluster session. The Nasdaq Composite (-0.4%) and Russell 2000 (-0.6%) both underperformed, while the Dow Jones Industrial Average (+0.1%) managed to finish higher.

Monday's session didn't include much price action, as investors appeared to be waiting for several key events later this week. Some of these events will include the FOMC's rate decision, U.S.-China trade talks, the July employment report, and Apple's (AAPL 209.68, +1.94, +0.9%) earnings report. On a related note, Apple's price target was raised to $235 from $225 at UBS before its results after Tuesday's close.

Apple shares rose on the increased price target, but the broader market was still weighed down by widely-held shares of Amazon (AMZN 1912.45, -30.60, -1.6%), Facebook (FB 195.94, -3.81, -1.9%), and Alphabet (GOOG 1239.41, -11.00, -0.9%). In turn, the S&P 500 consumer discretionary (-0.6%) and communication services (-0.5%) sectors were among today's laggards but, like the broader market, finished the session off intraday lows.

The S&P 500 financials sector (-0.8%) succumbed to broad-based selling interest throughout the day. Wells Fargo (WFC 48.28, -1.02, -2.1%) was a notable laggard amid a Wall Street Journal report indicating that the Trump administration plans to make it harder for deeply indebted borrowers to acquire mortgage loans.

On the other hand, the S&P 500 defensive-oriented sectors -- utilities (+0.5%), real estate (+0.5%), health care (+0.4%), and consumer staples (+0.3%) -- were the lone sectors that finished higher.

Separately, Mylan N.V. (MYL 20.78, +2.32, +12.6%) agreed to combine with Pfizer's (PFE 41.45, -1.64, -3.8%) off-patent drug business, giving Mylan shareholders 43% of the combined company. On a related note, Mylan N.V. beat top and bottom-line estimates; Pfizer beat earnings estimates but missed revenue estimates.

U.S. Treasuries finished the session higher, pushing yields lower across the curve. The 2-yr yield and the 10-yr yield declined three basis points each to 1.84% and 2.06%, respectively. The U.S. Dollar Index finished flat at 98.04. WTI crude increased 1.2% to $56.87/bbl.

Investors did not receive any notable economic data on Monday.

Looking ahead, Tuesday will feature the Personal Income and Spending report for June, which will include the Fed's preferred inflation gauge -- the PCE Price Index. Investors will also receive the Conference Board's Consumer Confidence Index for July, Pending Home Sales for June, and the S&P Case-Shiller Home Price Index for May.

Nasdaq Composite +25.0% YTD
S&P 500 +20.5% YTD
Dow Jones Industrial Average +16.7% YTD
Russell 2000 +16.4% YTD

[ReturntoSender]

Stock market falls after Powell shoots down easing cycle hopes
31-Jul-19 16:25 ET
Dow -333.75 at 26864.27, Nasdaq -98.19 at 8175.43, S&P -32.80 at 2980.38

https://www.briefing.com/investor/markets/stock-market-update/2019/7/31/stock-market-falls-after-powell-shoots-down-easing-cycle-hopes.htm

[BRIEFING.COM] The S&P 500 fell as much as 1.8% on Wednesday after Fed Chair Powell indicated that the July rate cut was not the start of an easing cycle. Stocks did rally off lows, though, after Mr. Powell quickly suggested that policy could still accommodate another cut if necessary. The S&P 500 finished lower by 1.1%.

The Dow Jones Industrial Average (-1.2%) and Nasdaq Composite (-1.2%) posted comparable losses to the benchmark index, while the Russell 2000 (-0.7%) fared slightly better.

Prior to the Fed's decision to cut the target range for the fed funds rate by 25 basis points to 2.00% to 2.25%, there wasn't much conviction from buyers or sellers in the market. The major indices traded marginally higher, mainly supported by the positive price action in Apple (AAPL 213.04, +4.26, +2.0%) following its results and guidance.

In its policy directive, the Fed cited economic uncertainties and inflation levels that were running below its target for its rate decision. Two voting members, however, did dissent to the rate cut, preferring to keep rates unchanged. Separately, the Fed also noted that it will end its balance sheet reduction efforts in August, two months earlier than previously indicated.

The directive stirred some volatility in the market, but Fed Chair Powell's ensuing press conference then caused the real volatility after he used phrases like "insurance" and "mid-cycle adjustment" to describe the Fed's first rate cut since 2008. Stocks fell sharply before the Fed Chair abated selling pressure by saying that his description didn't mean "just one rate cut."

Mr. Powell's clarification wasn't enough to completely ease investors, though. All 11 S&P 500 sectors finished lower, including noticeable declines in the consumer staples (-2.0%), materials (-1.5%), and information technology (-1.5%) sectors. The Philadelphia Semiconductor Index dropped 3.5%.

The weakness in the semiconductor space was mostly attributed to Advanced Micro Devices (AMD 30.45, -3.42, -10.1%) cutting its full-year revenue outlook. The group, like the broader market, did extend losses during Fed Chair Powell's press conference.

U.S. Treasuries also experienced noticeable movements, ultimately flattening the yield curve by session's end. The 2-yr yield, which touched 1.80% prior to the press conference, finished three basis points higher to 1.88%. The 10-yr yield finished near its lows, declining four basis points to 2.02%. The U.S. Dollar Index rose 0.6% to 98.62. WTI crude increased 0.6% to $58.38/bbl.

Reviewing Wednesday's economic data, which included the ADP Employment Change report for July, the Chicago PMI for July, the Employment Cost Index for the second quarter, and the weekly MBA Mortgage Applications Index:

The ADP Employment Change report showed an estimated 156,000 positions were added to private-sector payrolls in July (Briefing.com consensus 150,000).
The Q2 Employment Cost Index increased 0.6% (Briefing.com consensus 0.6%), seasonally adjusted, for the three-month period ending in June 2019 after increasing 0.7% for the three-month period ending in March 2019. Wages and salaries, which account for about 70% of compensation costs, rose 0.7%, while benefit costs, which make up the remainder of compensation costs, increased 0.5%.
The key takeaway from the report is that there has been some moderation in the growth rate of employment costs for civilian workers.
The July Chicago PMI came in at 44.4 (Briefing.com consensus 50.5), slipping further into contraction territory after coming in at 49.7 in June. A reading below 50.0 denotes a contraction.
The weekly MBA Mortgage Applications Index declined 1.4% following a 1.9% decline in the prior week.

Looking ahead, investors will receive the ISM Manufacturing Index for July, Construction Spending for June, and the weekly Initial and Continuing Claims report on Thursday.

Nasdaq Composite +23.2% YTD
S&P 500 +18.9% YTD
Russell 2000 +16.8% YTD
Dow Jones Industrial Average +15.2% YTD

[ReturntoSender]

Stock market erases gains, closes lower after Trump announces more China tariffs
01-Aug-19 16:25 ET
Dow -280.85 at 26583.42, Nasdaq -64.30 at 8111.13, S&P -26.82 at 2953.56

https://www.briefing.com/investor/markets/stock-market-update/2019/8/1/stock-market-erases-gains-closes-lower-after-trump-announces-more-china-tariffs.htm

[BRIEFING.COM] The stock market gave up a healthy lead and finished noticeably lower on Thursday after President Trump announced a 10% tariff rate on another $300 billion of Chinese imports, effective September 1. The S&P 500 had nearly recovered all its losses from Wednesday, but renewed growth and trade concerns left the benchmark index down 0.9% for the session.

The Dow Jones Industrial Average lost 1.1%, the Nasdaq Composite lost 0.8%, and the Russell 2000 lost 1.5%.

Economic growth concerns were made most apparent in the steep drop in U.S. Treasury yields and oil prices ($53.99/bbl, -$4.39, -7.5%), both of which had already been on the decline in the wake of the Fed's rate cut yesterday. The 2-yr yield dropped 16 basis points to 1.72%, and the 10-yr yield dropped 13 basis points to 1.89%. The U.S. Dollar Index lost 0.2% to 98.36.

In turn, the lower rates and oil prices drove the broad-based selling in the S&P 500 financials (-2.3%) and energy (-2.3%) sectors. The decline in yields, however, did contribute to the gains in the utilities (+1.0%) and real estate (+0.2%) sectors.

Initially, the lower rates had presumably been the catalyzing force behind the rally in equities. That narrative was quickly upended after the tariff announcement brought back familiar trade concerns that the market had set aside during its run to record highs.

Concerns that trade tensions would undercut corporate earnings prospects were evident in the following groups: The S&P 500 industrials sector (-2.0%), which is home to many transportation companies with foreign business; Apple (AAPL 208.43, -4.61, -2.2%), which previously had some of its high-growth products except from tariffs; and the semiconductor stocks, many of which derive a large of portion of their revenue from China.

The Dow Jones Transportation Average lost 2.5%, and the Philadelphia Semiconductor Index lost 2.0%. The SPDR S&P Retail ETF (XRT 41.21, -1.38) was another laggard, losing 3.2% amid fears that strong consumer spending may be adversely affected by the tariffs.

Economic data released today certainly didn't help the mood, although some investors may have seen the results as a case for the Fed to step up its easing efforts, especially after the latest tariff threat. Specifically, the ISM Manufacturing Index for July declined to 51.2% (Briefing.com consensus 51.9%), which is its lowest level since Aug. 2016, and total construction spending for June unexpectedly declined 1.3% (Briefing.com consensus +0.4%).

Reviewing Thursday's economic data, which included the ISM Manufacturing Index for July, Construction Spending for June, and the weekly MBA Mortgage Applications Index:

The ISM Manufacturing Index for July checked in at 51.2% (Briefing.com consensus 51.9%) after crossing at 51.7% in June. The dividing line between expansion and contraction is 50.0%, so the July reading indicates slower growth in the manufacturing sector. The July reading is the lowest level since August 2016.
The key takeaway from the report is that it marked the fourth straight month of a deceleration in growth, which corroborates the view that business activity has softened for the manufacturing sector.
Total construction spending declined 1.3% in June (Briefing.com consensus +0.4%) following an upwardly revised 0.5% decline (from -0.8%) in May. This was the second straight monthly decline and the third straight year-over-year decline in construction spending, which is something that hasn't been seen since 2011.
The key takeaway from the report is that the weakness in June was spread across both private construction and public construction activity.
The latest weekly initial jobless claims count totaled 215,000, which was in-line with the Briefing.com consensus. Today's tally was above the prior week's revised count of 207,000 (from 206,000). As for continuing claims, they increased to 1.699 million from a revised count of 1.677 million (from 1.676 million).

Looking ahead, investors will receive the Employment Situation Report for July, the revised July reading for the University of Michigan Index of Consumer Sentiment, the Trade Balance report for June, and Factory Orders for June on Friday.

Nasdaq Composite +22.2% YTD
S&P 500 +17.8% YTD
Russell 2000 +15.0% YTD
Dow Jones Industrial Average +14.0% YTD

[ReturntoSender]

Wall Street ends week with more losses, as trade concerns overshadow jobs data
02-Aug-19 16:20 ET
Dow -98.41 at 26485.01, Nasdaq -107.05 at 8004.08, S&P -21.51 at 2932.05

https://www.briefing.com/investor/markets/stock-market-update/2019/8/2/wall-street-ends-week-with-more-losses-as-trade-concerns-overshadow-jobs-data.htm

[BRIEFING.COM] Wall Street ended Friday with more losses, as investors remained fixated on possible China tariffs and brushed aside an in-line employment report. The S&P 500 (-0.7%) and Dow Jones Industrial Average (-0.4%) finished well off session lows, while the Nasdaq Composite (-1.3%) and Russell 2000 (-1.1%) fell over 1.0%.

China promised retaliatory measures against the U.S. if President Trump follows through on his tariff threat. This didn't catch too many market participants by surprise, but the lack of positive news on Friday contributed to the follow-through selling.

Most of Friday's decline, however, took place in the first 90 minutes of action. Each of the major averages fell below their 50-day moving averages, which appeared to welcome a buy-the-dip mentality that abated the early selling pressure. The Russell 2000 was the only major U.S. index that closed below the key technical level.

The S&P 500 information technology (-1.7%) and energy (-1.3%) sectors led today's decline, with the latter unable to benefit from the rebound in oil ($55.74/bbl, +$1.75, +3.2%). The defensive-oriented real estate (+0.8%), consumer staples (+0.1%), and utilities (+0.1%) sectors were the lone sectors that finished higher.

July's Employment Situation Report didn't produce much interest. The data came mostly in-line with expectations, and some speculated whether the trade uncertainty would slow down the pace of U.S. hiring activity or wage growth. Nonfarm payrolls increased 164,000 (Briefing.com consensus 160,000), which coincided with decent wage growth and an unemployment rate that stayed near a 50-year low.

In earnings news, Dow components Chevron (CVX 120.73, -0.01, unch) and Exxon Mobil (XOM 71.75, -0.71, -1.0%) provided mixed results. Square (SQ 69.60, -11.38, -14.1%) and NetApp (NTAP 46.04, -11.67, -20.2%) issued disappointing guidance. Newell Brands (NWL 15.34, +1.91, +14.2%) and Pinterest (PINS 33.57, +5.27, +18.6%) provided upbeats results and guidance.

U.S. Treasuries continued to see increased demand, which pushed yields lower in a curve-flattening trade. The 2-yr yield declined one basis point to 1.71%, and the 10-yr yield declined four basis points to 1.86%. The U.S. Dollar Index declined 0.3% to 98.11.

Reviewing Friday's economic data, which included the July Employment Situation Report, the revised July reading for the University of Michigan Index of Consumer Sentiment, the Trade Balance report for June, and Factory Orders for June:

Job growth was decent in July, wage growth was decent, the unemployment rate stayed near a 50-year low with a slight pickup in the labor force participation rate, and there was a sizable drop in the number of long-term unemployed persons.
The key takeaway from the report is that it was a good report in aggregate, which means it didn't offer enough bad news to convince the Fed that it needs to cut the fed funds rate again in September.
The final July reading for the University of Michigan Index of Consumer Sentiment checked in at 98.4 (Briefing.com consensus 98.6) versus the preliminary reading of 98.2 and the final June reading of 98.2.
The key takeaway from the report is that the economic uncertainty and trade uncertainty that has bothered the Fed has yet to bother the consumer in a noticeably adverse way.
The trade deficit for June narrowed slightly to $55.2 billion (Briefing.com consensus -$54.6 billion) from $55.3 billion in May, as imports (-$4.6 billion) fell slightly more than exports (-$4.4 billion).
The key takeaway from a growth standpoint is that both exports and imports fell in June.
Factory orders increased 0.6% in June (Briefing.com consensus 0.8%) on the heels of downwardly revised 1.3% decline (from -0.7%) in May, which followed a 1.2% decline in April.
The key takeaway from the report is that nondefense capital goods orders, excluding aircraft -- a proxy for business spending -- were revised down to 1.5% from the preliminary report showing a 1.9% increase. Shipments of those same goods were up 0.3% versus 0.6% in the preliminary report. That will compute as a drag in the second estimate for Q2 GDP.

Looking ahead, investors will receive the ISM Non-Manufacturing index for July on Monday.

Nasdaq Composite +20.6% YTD
S&P 500 +17.0% YTD
Russell 2000 +13.7% YTD
Dow Jones Industrial Average +13.5% YTD

[ReturntoSender]

Green day on Wall Street as investors embrace risk
08-Aug-19 16:20 ET
Dow +371.12 at 26378.19, Nasdaq +176.33 at 8039.17, S&P +54.11 at 2938.09

https://www.briefing.com/investor/markets/stock-market-update/2019/8/8/green-day-on-wall-street-as-investors-embrace-risk.htm

[BRIEFING.COM] The stock market finished decisively in the green on Thursday, as trade angst subsided and investors embraced a risk-on mindset. The S&P 500 advanced 1.9%, which extended its two-day comeback to 112 points, or 4.0%, from its session low on Wednesday.

The Dow Jones Industrial Average increased 1.4%, the Nasdaq Composite increased 2.2%, and the Russell 2000 increased 2.1%.

Thursday's positive disposition ostensibly formed overnight after China reported a surprise yr/yr increase in July exports while holding its yuan firm, which again signaled goodwill in trade relations. Today's rally, however, appeared to be more a continuation from yesterday's big intraday reversal that suggested the recent sharp sell-off may have been excessive.

Interestingly, the S&P 500 traded just below its 50-day moving average (2934) for most of the afternoon before finally breaking above the key technical level late in the session. The benchmark index held above the level on a closing basis.

All 11 S&P 500 sectors finished higher by at least 1.0%. The energy sector (+2.9%) led the advance as oil prices ($52.52/bbl, +$1.38, +2.7%) rebounded, followed by the information technology (+2.4%), communication services (+2.2%), and consumer discretionary (+2.0%) sectors.

Advanced Micro Devices (AMD 33.92, +4.73, +16.2%) led the Philadelphia Semiconductor Index (+2.7%) higher after it unveiled its well-received server CPUs that Google and Twitter will reportedly use. Broadcom (AVGO 270.98, +0.93, +0.3%) struggled to participate in the chip rally amid news that it is close to purchasing Symantec's (SYMC 22.92, +2.51, +12.3%) enterprise business for about $10 billion

In earnings news, Booking Holdings (BKNG 1941.01, +119.45, +6.6%), Lyft (LYFT 62.10, +1.81, +3.0%), and Roku (ROKU 122.03, +21.06, +20.9%) outperformed the broader market following positive results and/or upbeat guidance. Kraft Heinz (KHC 28.22, -2.65, -8.6%) disappointed investors with its results, and its stock chart remained an eyesore for investors.

U.S. Treasuries were under noticeable selling pressure today, which sent the 10-yr yield up 11 basis points to 1.79% at one point during the session. Buyers gradually came back, ultimately leaving the benchmark yield up three basis points to 1.72%. The 2-yr yield finished also finished three basis points higher at 1.61%. The U.S. Dollar Index increased 0.1% to 97.60.

Reviewing Thursday's economic data, which included the weekly Initial and Continuing Claims report and Wholesale Inventories for June:

Initial jobless claims for the week ending August 3 decreased by 8,000 to 209,000 (Briefing.com consensus 213,000). Continuing claims for the week ending July 27 decreased by 15,000 to 1.684 mln.
The key takeaway from the report is that initial claims continue hovering near multi-decade lows.
Wholesale inventories were unchanged in June (Briefing.com consensus 0.2%) on top of an unrevised 0.4% increase in May. Wholesale sales decreased 0.3% in June after decreasing a revised 0.6% (from +0.1%) in May.
The key takeaway from the June report and the May revision is that the gap between inventory growth and sales growth is widening, which should exert some pressure on prices.

Looking ahead, investors will receive the Producer Price Index for July on Friday.

Nasdaq Composite +21.2% YTD
S&P 500 +17.2% YTD
Dow Jones Industrial Average +13.1% YTD
Russell 2000 +13.6% YTD

[ReturntoSender]

Tariff delay sparks broad-based advanced, Apple shares rise
13-Aug-19 16:20 ET
Dow +372.54 at 26268.98, Nasdaq +152.95 at 8016.37, S&P +43.23 at 2926.32

https://www.briefing.com/investor/markets/stock-market-update/2019/8/13/tariff-delay-sparks-broadbased-advanced-apple-shares-rise.htm

[BRIEFING.COM] U.S. stocks rallied on Tuesday after the White House announced that it will delay the 10% tariff rate for some items imported from China, including cell phones and laptops, until Dec. 15. Apple (AAPL 208.97, +8.49, +4.2%) led the broad-based advance and contributed to the solid gains in the S&P 500 (+1.5%), Dow Jones Industrial Average (+1.4%), and Nasdaq Composite (+2.0%). The Russell 2000 increased 1.1%.

Originally, the 10% tariff rate on $300 billion of mostly consumer goods was set to go into effect Sept. 1. Most products will still be taxed on that date, but the decision to delay some big-ticket items followed a "public comment and hearing process," according to the USTR. Other items will be also removed from the tariff list based on "health, safety, and national security" factors.

President Trump told reporters he wanted to delay the tariffs so consumers would not be hurt during the Christmas shopping season and said he had a very productive call with China. On a related note, China's Ministry of Commerce indicated that trade talks will resume over the phone within the next two weeks.

In turn, the upbeat news contributed to gains in all 11 S&P 500 sectors and a 4% rally in oil prices ($57.04/bbl, +$2.23, +4.1%). Nine sectors advanced at least 1.0%, led by the information technology (+2.5%), consumer discretionary (+1.7%), and communication services (+1.5%) sectors. The Philadelphia Semiconductor Index climbed 3.0%.

Although structural trade issues remain, the news did serve as a temporary relief to the market that had been grappling with geopolitical uncertainty, growth concerns, weakness in global equities, and declining U.S. Treasury yields.

For instance, prior to the tariff news, attention remained heavily centered on the Hong Kong protests that continued to escalate. Riot police confronted protesters at the city's airport after flights were canceled for the second consecutive day on Tuesday.

Shorter-dated U.S. Treasuries sold off, driving yields higher in another curve-flattening trade. The 2-yr yield increased nine basis points to 1.67%, and the 10-yr yield increased four basis points to 1.68%. The general risk-on mood helped the market overlook the continued compression in yields. The U.S. Dollar Index advanced 0.5% to 97.82.

Reviewing Tuesday's economic data, which included the Consumer Price Index for July and the NFIB Small Business Optimism Index for July:

Total CPI increased 0.3% m/m in July, as expected, while core CPI, which excludes food and energy, also increased 0.3% (Briefing.com consensus 0.2%) for the second straight month. Those readings left total CPI up 1.8% yr/yr, versus 1.6% in June, and core CPI up 2.2% yr/yr, versus 2.1% in June.
The key takeaway from the report is that it muddles the monetary policy outlook. The year-over-year readings are not exactly "rate-cutting" material, but with everything else going on, the market will be left to conclude that another rate cut is likely since the Fed will want to ensure that everything else going on doesn't lead to a caustic slide in inflation expectations.
The NFIB Small Business Optimism Index for July increased to 104.7 from 103.3 in June.

Looking ahead, investors will receive the weekly MBA Mortgage Applications Index, and Export and Import Prices for July on Wednesday.

Nasdaq Composite +20.8% YTD
S&P 500 +16.7% YTD
Dow Jones Industrial Average +12.7% YTD
Russell 2000 +12.0% YTD

[ReturntoSender]

Stock market sells off on recession worries
14-Aug-19 16:20 ET
Dow -800.49 at 25479.40, Nasdaq -242.42 at 7773.95, S&P -85.72 at 2840.60

https://www.briefing.com/investor/markets/stock-market-update/2019/8/14/stock-market-sells-off-on-recession-worries.htm

[BRIEFING.COM] Each of the major U.S. indices lost around 3.0% on Wednesday, as weak global data and a recessionary signal in the U.S. Treasury market sent stocks reeling. Broad-based selling left both S&P 500 and Russell 2000 down 2.9%. The Dow Jones Industrial Average lost 3.1%, and the Nasdaq Composite lost 3.0%.

The stock market began the day sharply lower, giving back a bulk of yesterday's advance, after data out of China and Germany continued to weaken. China reported its slowest industrial production growth since 2002, and Germany reported a 0.1% qtr/qtr decline in Q2 GDP. Understandably, investors rushed to safe-haven assets such as gold ($1527.80, +$13.70, +0.9%) and U.S. Treasuries, while equities steadily declined throughout the day.

In turn, the yield on the 10-yr note fell below the yield on the 2-yr note for the first time since 2007, representing an inversion that has preceded each recession since 1980. The average length of time between the first inversion and the start of each recession since 1980 has averaged 18 months, with the range being as little as ten months to as many as two years.

Despite this historical time-cushion, it was risk-off on Wall Street with all 11 S&P 500 sectors finishing lower. The energy (-4.1%) and financials (-3.6%) sectors led the broader retreat amid steep declines in oil prices ($55.01/bbl, -$2.03, -3.6%) and U.S. Treasury yields. The utilities sector (-0.9%) was the only sector that didn't finish lower by at least 1.0%.

The 2-yr yield fell nine basis points to 1.58%, and the 10-yr yield fell ten basis points to 1.58%. Interestingly, the 30-yr yield hit a record low at 2.02% before finishing the session down 11 basis points at 2.03%. The U.S. Dollar Index held firm, advancing 0.2% to 98.04.

It should be noted that the 2s-10s yield spread did not remain inverted during the session. Still, the yield curve had been steadily flattening all year and investors weren't given any reason today to expect a change of course. The yield-curve flattening undercut shares of Citigroup (C 61.41, -3.42, -5.3%), Bank of America (BAC 26.42, -1.30, -4.7%), and JPMorgan Chase (JPM 104.80, -4.54, -4.2%).

Separately, Macy's (M 16.80, -2.56, -13.2%) provided disappointing earnings and guidance, which sent shares down 13.2% and put additional pressure on the SPDR S&P Retail ETF (XRT 38.42, -1.68, -4.2%).

Reviewing Wednesday's economic data, which included Import and Export Prices for July and the weekly MBA Mortgage Applications Index:

Import prices rose 0.2% m/m in July, but declined 0.1% excluding fuel. On a yr/yr basis, all import prices were down 1.8%, versus up 4.8% for the 12 months ending in July 2018, while nonfuel import prices declined 1.3% versus a 1.4% increase for the 12 months ending in July 2018.
Export prices were up 0.2% m/m in July. Excluding agricultural exports, prices were also up 0.2%. On a yr/yr basis, all export prices were down 0.9%, versus up 4.3% for the 12 months ending in July 2018, while nonagricultural export prices were down 1.5%, versus up 5.0% for the 12 months ending in July 2018.
The key takeaway from the report is that it doesn't show any inflation, which stands in contrast to the Consumer Price Index for July. Accordingly, it will only serve to confuse the market's perspective on the Fed's read of inflation trends.
The weekly MBA Mortgage Applications Index spiked 21.7% following a 5.3% increase in the prior week.

Investors will receive the following economic data on Thursday: Retail Sales for July, Industrial Production and Capacity Utilization for July, the Empire State Manufacturing Survey for August, the Philadelphia Fed Index for August, the weekly Initial and Continuing Claims report, the preliminary Productivity and Unit Labor Costs for the second quarter, Business Inventories for June, and Net Long-Term TIC Flows for June.

[ReturntoSender]

Stock market rises 1% in broad-based advance
19-Aug-19 16:15 ET

Dow +249.78 at 26135.77, Nasdaq +106.82 at 8002.83, S&P +34.97 at 2923.65

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

[BRIEFING.COM] The S&P 500 rose 1.2% on Monday in a broad-based advance that extended its rebound rally to a third day. The Nasdaq Composite (+1.4%), Dow Jones Industrial Average (+1.0%), and Russell 2000 (+1.0%) also advanced at least 1.0%.

Monday's session was much like Friday's in that the market quickly jumped out to a big lead following another round of positive headlines. More reports surfaced about stimulus plans in China and Germany, which helped kindle some curiosity about the Fed's annual Jackson Hole Summit on Thursday and Friday. In addition, the U.S. granted Huawei another 90 days to continue buying supplies from U.S. companies.

None of the news, however, really provided the market anything "new" or surprising. Perhaps the calm that flowed from the absence of negative news and economic data helped the market reset from a perceived short-term oversold condition.

All 11 S&P 500 sectors posted decent gains on Monday. Seven sectors rose at least 1.0%, including a 2.1% gain in the energy sector amid higher oil prices ($56.00/bbl, +$1.11, +2.0%). Noticeable gains in the mega-cap stocks provided strong support for the information technology (+1.6%), communication services (+1.4%), and consumer discretionary (+1.3%) sectors.

Apple (AAPL 210.35, +3.85, +1.9%) was one of those mega-cap outperformers following a meeting between Apple CEO Tim Cook and President Trump over the weekend. President Trump said Mr. Cook presented a "compelling argument" for how tariffs would make it harder for Apple to compete against foreign competitors. Apple shares rose nearly 2%.

Estee Lauder (EL 201.65, +22.43) was another standout, rising 12.5% after the company beat top and bottom-line estimates and provided upbeat guidance for the remainder of its fiscal year.

U.S. Treasuries pulled back from a lengthy advance amid the positive disposition in equities. The 2-yr yield and the 10-yr yield increased six basis points each to 1.53% and 1.60%, respectively. The U.S. Dollar Index advanced 0.3% to 98.38.

Investors did not receive any notable economic data on Monday and will not receive any until Wednesday.

Nasdaq Composite +20.6% YTD
S&P 500 +16.6% YTD
Dow Jones Industrial Average +12.0% YTD
Russell 2000 +11.9% YTD

[ReturntoSender]

Target and Lowe's lift Wall Street, FOMC minutes flatten yield curve
21-Aug-19 16:20 ET
Dow +240.29 at 26202.71, Nasdaq +71.65 at 8020.23, S&P +23.92 at 2924.43

[BRIEFING.COM] The S&P 500 increased 0.8% on Wednesday in a broad-based advance. Upbeat results and reassuring guidance from Target (TGT 103.00, +17.47, +20.4%) and Lowe's (LOW 108.00, +10.13, +10.4%) reinforced the notion that the U.S. consumer remains in good shape, while investors parsed the FOMC minutes from the July meeting.

The Dow Jones Industrial Average increased 0.9%, the Nasdaq Composite increased 0.9%, and the Russell 2000 increased 0.8%.

Wednesday's positive disposition formed overnight as futures steadily increased alongside a modest uptick in U.S. Treasury yields. Outsized gains in Target and Lowe's following their earnings reports helped solidify the market's positive posture throughout the day.

All 11 S&P 500 sectors finished in positive territory, with the consumer discretionary (+1.8%) and information technology (+1.2%) sectors gaining over 1.0%. The consumer staples (+0.3%) and communication services (+0.4%) sectors rose modestly.

Price action was relatively muted leading up to the release of the FOMC Minutes, which had a noticeable effect on the U.S. Treasury market. The minutes indicated different viewpoints on where the fed funds rate should be (some called for a 50-basis points rate cut, while others favored no change). In addition, it was said in the minutes that the Fed will remain "flexible" and focused on the implications of incoming data for the outlook.

The minutes produced some knee-jerk selling on the shorter-end of the yield curve, causing some curve-flattening activity that garnered some negative-minded attention. The 2-yr yield increased six basis points to 1.57%, and the 10-yr yield increased two basis points to 1.58%. At one point before the close, the 2s10s spread briefly inverted again. The U.S. Dollar Index increased 0.1% to 98.29. WTI crude declined 0.9%, or $0.53, to $55.65/bbl.

It should be noted that the Fed meeting preceded a tariff announcement from President Trump, a brief 2s-10s spread inversion, and weakening global data. The minutes may be considered even more dated once Fed Chair Powell speaks on Friday during the Fed's Jackson Hole symposium.

Separately, shares of Cree Inc. (CREE 49.01, -9.23) fell 15.9% after the semiconductor company disappointed investors with its guidance.

Reviewing Wednesday's economic data, which included Existing Home Sales for July and the weekly MBA Mortgage Applications Index:

Existing home sales increased 2.5% month-over-month in July to a seasonally-adjusted annual rate of 5.42 million (Briefing.com consensus 5.40 million) from an upwardly revised 5.29 million (from 5.27 million) in June. Total sales were 0.6% higher than the same period a year ago.
The key takeaway from the report is that the inventory of existing homes for sale remains tight. That will continue to support high prices, which in turn makes the persistence of low mortgage rates extremely important as a driver of existing home sales activity.
The weekly MBA Mortgage Applications Index declined 0.9% following a 21.7% spike in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report and the Conference Board's Leading Economic Index for July on Thursday.

Nasdaq Composite +20.9% YTD
S&P 500 +16.7% YTD
Dow Jones Industrial Average +12.3% YTD
Russell 2000 +12.0% YTD

[ReturntoSender]

Wall Street begins week on higher note following Trump trade comments
26-Aug-19 16:20 ET
Dow +269.93 at 25898.81, Nasdaq +101.97 at 7853.76, S&P +31.27 at 2878.38

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

[BRIEFING.COM] The stock market rebounded more than 1% on Monday, catalyzed by President Trump's contention that China called top U.S. negotiators to restart trade talks. The S&P 500 advanced 1.1%, which was comparable to the gains in the Dow Jones Industrial Average (+1.1%), Nasdaq Composite (+1.3%), and Russell 2000 (+1.1%). Most of the price action occurred before the open, but the market was able to close near session highs.

When the futures market opened for trading Sunday evening, the indication for today's open was sharply lower. Presumably, the market was reacting to President Trump's announcement made after Friday's close that he was planning on increasing the tariff rates on $525 billion of Chinese imports. Futures quickly climbed into positive territory in overnight action following the president's remarks from the G7 meeting in France.

Interestingly, the market held its positive posture throughout the day even though trade talks were already planned for September. China's Foreign Ministry spokesman also denied knowledge of any such calls while Chinese press downplayed the significance of Mr. Trump's statement. In a conciliatory move, President Trump reciprocated China's willingness to resolve their dispute through "calm" negotiations.

Gains were broad-based, yet investors didn't appear in any hurry to jump into the action given the relatively light trading volume during the day. Mega-cap stocks within the S&P 500 communication services (+1.5%) and information technology (+1.4%) sectors provided influential leadership. The trade-sensitive materials sector (+0.3%), oddly enough, increased the least.

In key corporate news, Bristol-Myers (BMY 48.11, +1.53, +3.3%) sold Celgene's (CELG 97.00, +3.01, +3.2%) psoriasis drug Otezla to Amgen (AMGN 205.41, +6.33, +3.2%) for $13.4 billion in cash. Bristol-Myers hoped that by selling the rights to Otezla, it would appease any antitrust concerns as it tries to get its merger agreement with Celgene approved.

Separately, oil and gas company TechnipFMC (FTI 24.01, +0.91, +3.9%) announced it will split into two publicly traded companies.

U.S. Treasuries finished the day lower, giving up an overnight rally following President Trump's trade comments. The 2-yr yield increased two basis points to 1.55%, and the 10-yr yield increased one basis point to 1.55%. The U.S. Dollar Index advanced 0.4% to 98.07. WTI crude lost 0.9% to $53.70/bbl on speculation that a possible U.S.-Iran meeting could lead to oversupply.

Reviewing Monday's economic data, which was limited to Durable Goods Orders for July:

Durable goods orders increased 2.1% (Briefing.com consensus +1.2%) following a downwardly revised 1.8% increase (from 2.0%) in June. Excluding transportation, durable goods orders decreased 0.4% (Briefing.com consensus +0.1%) following a downwardly revised 0.8% increase (from 1.2%) in June.
The key takeaway from the report is that orders for nondefense capital goods, excluding aircraft -- a proxy for business investment -- increased 0.4% in July on the heels of a 0.9% increase in June. Shipments, though, dropped 0.7%, which is a component that will factor into Q3 GDP forecasts.

Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for August, the FHFA Housing Price Index for June, and the S&P Case-Shiller Home Price Index for June on Tuesday.

Nasdaq Composite +18.4% YTD
S&P 500 +14.8% YTD
Dow Jones Industrial Average +11.0% YTD
Russell 2000 +9.5% YTD

[ReturntoSender]

Stocks lose ground while Treasury yields resume decline
27-Aug-19 16:25 ET
Dow -120.93 at 25777.88, Nasdaq -26.79 at 7826.97, S&P -9.22 at 2869.16

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

[BRIEFING.COM] The stock market finished lower on Tuesday in a shaky session. The S&P 500 jumped 0.7% out of the gate after yesterday's advance, then declined as much 0.6% as Treasury yields took a noticeable leg lower. The broader market spent most of the afternoon wavering in negative territory, leaving the S&P 500 with a 0.3% loss.

The Dow Jones Industrial Average (-0.5%) and Nasdaq Composite (-0.3%) performed similarly to the benchmark index. The Russell 2000 dropped 1.4%, largely due to weakness in many of the energy and financial stocks.

Today's higher start was formed even as traditional safe-haven assets like gold ($1541.30/oz, +$13.80, +0.9%) and U.S. Treasuries saw increased demand and China again denied it held recent phone calls with top U.S. negotiators. The market, perhaps due to some wary (and weary) investors, quickly embarked on a steady retreat while one of strongest consumer confidence readings since October 2000 produced little reaction.

The reaction to the persistent flattening/inversion activity in the U.S. Treasury yield curve was made more evident in the S&P 500 financials sector (-0.7%), which led all sectors in losses on Tuesday. The energy (-0.6%) and health care (-0.6%) sectors followed suit, while the utilities (+0.1%), materials (+0.1%), and communication services (+0.1%) sectors managed to finish in positive territory.

Specifically, the 2s10s spread inversion widened to four basis points, which isn't terribly conducive for lending activity. The 2-yr yield declined two basis points to 1.53%, and the 10-yr yield declined six basis points to 1.49%. The U.S. Dollar Index was little changed at 98.04. WTI crude rose 2.4% to $54.90/bbl.

Johnson & Johnson (JNJ 129.64, +1.84, +1.4%) outperformed despite being found liable in an opioid case in Oklahoma. JNJ was ordered to pay $572 million, which was at the low end of expectations and much less than the $17 billion the state wanted. Johnson & Johnson said it plans to appeal the ruling.

Other corporate news included merger talks between Philip Morris International (PM 71.70, -6.03, -7.8%) and Altria Group (MO 45.25, -1.87, -4.0%). MO surged on the initial news but fell on a subsequent report from CNBC indicating it would own just 41% of the company at no premium. J.M. Smucker (SJM 103.69, -9.24, -8.2%) disappointed investors with its results and lower guidance.

Reviewing Tuesday's economic data, which included the Conference Board's Consumer Confidence Index for August, the FHFA Housing Price Index for June, and the S&P Case-Shiller Home Price Index for June:

The Conference Board's Consumer Confidence Index for August printed at 135.1 (Briefing.com consensus 129.6) versus an upwardly revised 135.8 (from 135.7) in July, which was the third highest reading since October 2000.
The key takeaway from the report is that it reflects a pretty solid state of consumer confidence, which is a supportive foundation for continued discretionary spending. That matters greatly for an economy driven predominantly by consumer spending.
The FHFA Housing Price Index for June increased 0.2% following a revised 0.2% increase in May (from 0.1%).
The S&P Case-Shiller Home Price Index for June increased 2.1% (Briefing.com consensus of 2.7%) following a 2.4% increase in May.

Looking ahead, investors will receive the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +18.0% YTD
S&P 500 +15.0% YTD
Dow Jones Industrial Average +10.5% YTD
Russell 2000 +8.0% YTD

[ReturntoSender]

Stocks lose ground to begin September, manufacturing data disappoints
03-Sep-19 16:20 ET

Dow -285.26 at 26118.00, Nasdaq -88.72 at 7874.19, S&P -20.19 at 2906.27

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

[BRIEFING.COM] The stock market finished lower on Tuesday to begin the shortened trading week and the month of September. The S&P 500 declined 0.7%, while the Dow Jones Industrial Average (-1.1%), Nasdaq Composite (-1.1%), and Russell 2000 (-1.5%) fell more than 1.0%.

The session began on a lower note as the market digested several global events. Additional tariffs imposed by the U.S. and China on each other went into effect on Sunday, much to the dismay of those hoping for a reprieve. Separately, protests escalated in Hong Kong, and UK Prime Minister Boris Johnson threatened to call a snap election if rebel lawmakers vote to block a no-deal Brexit. Mr. Johnson lost his party's parliamentary majority today.

An early comeback effort was thwarted upon the release of the ISM Manufacturing Index for August, which declined to 49.1% (Briefing.com consensus 51.3%) from a 51.2% reading in July. This denoted the first contraction (a reading below 50.0%) since 2016. The broader market quickly fell to session lows and traded below its opening levels for the rest of the session.

Relative weakness came from many of the S&P 500 cyclical sectors, including industrials (-1.4%), information technology (-1.3%), and financials (-1.1%). It wasn't entirely risk-off, though, as some investors sought safety in the defensive-oriented utilities (+1.8%), real estate (+1.3%), and consumer staples (+0.5%) sectors.

In corporate news, Boeing (BA 354.42, -9.67, -2.7%) fell on a report from The Wall Street Journal indicating its 737 MAX could be grounded through the holiday season. Uber (UBER 30.70, -1.87, -5.7%) and Lyft (LYFT 45.42, -3.55, -7.3%) hit new all-time lows as California moved closer to classify drivers as employees instead of contractors.

Amazon (AMZN 1789.84, +13.55, +0.8%) outperformed after RBC Capital Mkts raised its AMZN price target to $2600 from $2250.

U.S. Treasury yields fell to session lows soon after the release of the ISM Manufacturing Index but steadily came off those lows as the session progressed. The 2-yr yield finished three basis points lower at 1.47%, and the 10-yr yield finished four basis points lower at 1.47%. The U.S. Dollar Index increased 0.1% to 99.01. WTI crude lost 2.1%, or $1.15, to $53.91/bbl.

Reviewing Tuesday's economic data, which included the ISM Manufacturing Index for August and Construction Spending for July:

The ISM Manufacturing Index for August registered 49.1% (Briefing.com consensus 51.3%) following a 51.2% reading for July. The dividing line between expansion and contraction is 50.0%. The reading for August is the first sub-50% reading in three years and the lowest since January 2016.
The key takeaway from the report is that it will foment economic slowdown concerns, as well as worries about the deleterious impact of tariff actions on business investment. According to ISM, the past relationship between the PMI and the overall economy indicates the PMI for August corresponds to a 1.8% increase in real GDP on an annualized basis.
Total construction spending increased 0.1% m/m in July (Briefing.com consensus +0.3%) following an upwardly revised 0.7% decline (from -1.3%) in June.
The key takeaway from the report is the recognition that total construction spending declined 2.7% yr/yr. That was the ninth straight yr/yr decline -- a streak that hasn't been seen since 2011.

Looking ahead, investors will receive the weekly MBA Mortgage Applications Index, the Trade Balance report for July, and the Fed's Beige Book for September on Wednesday.

Nasdaq Composite +18.7% YTD
S&P 500 +15.9% YTD
Dow Jones Industrial Average +12.0% YTD
Russell 2000 +9.2% YTD

[ReturntoSender]

Stocks snap back amid Hong Kong reprieve, weaker dollar
04-Sep-19 16:20 ET
Dow +237.45 at 26355.45, Nasdaq +102.72 at 7976.91, S&P +31.51 at 2937.78

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

[BRIEFING.COM] The stock market snapped back on Wednesday, catalyzed by news that Hong Kong agreed to withdraw its extradition bill while a weaker dollar supported the positive bias in the wake of the latest Brexit news. The S&P 500 (+1.1%) and Nasdaq Composite (+1.3%) increased over 1.0%, while the Dow Jones Industrial Average (+0.9%) and Russell 2000 (+0.9%) advanced 0.9%.

The reaction to the Hong Kong news was made most pronounced in the region's Hang Seng Index (+3.9%), but the positive sentiment did carry over into global markets as well. In terms of its implications for U.S. companies, some viewed the reprieve as one less obstacle in U.S.-China trade talks.

Weakness in the U.S. Dollar Index (98.44, -0.56, -0.6%) was attributed to strength in both the euro and British pound. The latter rose 1.1% against the dollar, as UK lawmakers voted in favor of blocking a no-deal Brexit on Oct. 31. A weaker dollar, should it persist, bodes well for the earnings prospects of U.S. multinational companies.

Today's advance was steady and broad-based with all 11 S&P 500 sectors finishing higher. Leadership came from the information technology (+1.7%), communication services (+1.6%), energy (+1.4%), industrials (+1.3%), and financials (+1.1%) sectors -- all of which rose over 1.0%. A big gain in oil prices ($56.21/bbl, +2.30, +4.3%) benefited many of the oil-sensitive energy stocks.

The market was also undeterred by downside guidance from Starbucks (SBUX 96.11, -0.66, -0.7%), Tyson Foods (TSN 86.06, -7.23, -7.8%), JetBlue (JBLU 16.39, -0.78, -4.5%), and American Eagle Outfitters (AEO 14.38, -1.89, -11.6%).

Today was clearly a positive day for stocks, but market participants weren't in any hurry to jump into the action, evidenced by the relatively light trading volume observed in recent sessions. This might have been due to an understanding that the market has been range-bound amid uncertainty surrounding politics, trade, growth, and monetary policy.

Several Fed officials had the opportunity to speak on monetary policy since yesterday's close. Although the market remained firm on its belief that the Fed will cut rates later this month, comments from the Fed officials weren't as resolute as the market's thinking. On a related note, the Fed's September Beige Book described overall economic activity as expanding at a modest pace.

U.S. Treasuries continued to see increased demand despite the rally in equities, putting some pressure on yields. The 2-yr yield declined three basis points to 1.44%, and the 10-yr yield declined one basis point to 1.46%.

Reviewing Wednesday's economic data, which included the Trade Balance report for July, the Fed's Beige Book for September, and the weekly MBA Mortgage Applications Index:

The trade deficit narrowed in July to -$54.1 billion (Briefing.com consensus -$53.2 billion) from a downwardly revised $55.5 billion (from -$55.2 billion) in June.
The key takeaway from the report is that the goods and services deficit on a year-to-date basis still increased by $28.2 billion, or 8.2%, from the same period in 2018, indicating that the tariff actions have yet to have their intended effect of reducing the overall trade deficit.
The Federal Reserve's September Beige Book described overall economic activity as expanding at a modest pace. The majority of surveyed businesses remained optimistic about the near-term outlook, though concerns about tariffs and trade policy remained in place. There was little overall change in tourism trends while transportation activity softened. Agricultural conditions remained weak due to unfavorable weather. Employment and prices grew at a modest pace.
The weekly MBA Mortgage Applications Index decreased 3.1% following a 6.2% decline in the prior week.

Looking ahead, investors will receive the following reports on Thursday: the ISM Non-Manufacturing Index for August, the ADP Employment Change report for August, Factor Orders for July, the weekly Initial and Continuing Claims report, and revised second-quarter readings for Productivity and Unit Labor Costs.

Nasdaq Composite +20.2% YTD
S&P 500 +17.2% YTD
Dow Jones Industrial Average +13.0% YTD
Russell 2000 +10.1% YTD

[ReturntoSender]

Stocks close little changed, flash manufacturing PMIs in focus
23-Sep-19 16:20 ET
Dow +14.92 at 26949.99, Nasdaq -5.21 at 8112.46, S&P -0.29 at 2991.82

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

[BRIEFING.COM] The S&P 500 finished flat on Monday in a mixed, and tight-ranged, session. Disappointing flash manufacturing PMI readings out of the eurozone kept many buyers sidelined, but encouraging manufacturing activity in the U.S. helped abate early selling pressure. The Dow Jones Industrial Average (+0.1%), Nasdaq Composite (-0.1%), and Russell 2000 (-0.1%) finished little changed.

The session began on a lower note, largely in response to those weaker-than-expected PMI readings overseas. Most notably, Germany's flash PMI for September fell deeper into contraction territory to its lowest reading (41.4) since 2009. The good news was that the Markit's flash manufacturing PMI reading for the U.S. increased to 51.1 from 50.3, reflecting the continued resiliency of the U.S. economy.

The S&P 500 was down just 0.3% at its session low and crossed into positive territory as soon as European markets closed for trading at 11:30 a.m. ET. The broader market maintained this positive disposition throughout the afternoon but faded into the close.

Most S&P 500 sectors finished within 0.3% of their unchanged marks. The consumer staples sector (+0.4%) outperformed the broader market, while the health care (-0.6%) and communication services (-0.4%) sectors underperformed.

Apple (AAPL 218.72, +0.99, +0.5%) and most stocks within the Philadelphia Semiconductor Index (+1.0%) showed relative strength throughout the day. The semiconductor space bounced back from Friday's decline following reports indicating that officials from the U.S. and China described last week's trade talks as "productive" and "constructive," respectively.

In corporate news, American Express (AXP 118.25, +1.45, +1.2%) announced a 120 million share repurchase program and increased its quarterly dividend 10%. Lululemon athletica (LULU 195.18, +5.88, +3.1) rose 3% after the stock was initiated with an Overweight rating at Piper Jaffray.

The U.S. Treasury market reflected some lingering growth concerns as increased demand pushed yields lower. The 2-yr yield declined three basis points to 1.67%, and the 10-yr yield declined six basis points to 1.71%. The U.S. Dollar Index increased 0.1% to 98.62. WTI crude rose 1.0%, or $0.60, to $58.64/bbl.

Investors did not receive any notable economic data on Monday. Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for September, the FHFA Housing Price Index for July, and the S&P Case-Shiller Home Price Index for July on Tuesday.

Nasdaq Composite +12.3% YTD
S&P 500 +19.3% YTD
Russell 2000 +15.6% YTD
Dow Jones Industrial Average +15.5% YTD

[ReturntoSender]

Stocks fall on political uncertainty, trade and growth concerns
24-Sep-19 16:20 ET
Dow -142.22 at 26807.77, Nasdaq -118.84 at 7993.62, S&P -25.18 at 2966.64

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

[BRIEFING.COM] U.S. stocks fell on Tuesday, as investors shunned risk following a decline in consumer confidence, a hard-lined speech from President Trump, and growing calls for the president's impeachment. The S&P 500 (-0.8%) and Dow Jones Industrial Average (-0.5%) declined less than 1%, while the Nasdaq Composite (-1.5%) and Russell 2000 (-1.6%) underperformed amid weakness in the technology and energy stocks.

It was a wild ride to say the least. Stocks opened higher, lifting the S&P 500 up as much as 0.5% and back above the 3000 level, amid news that China was purchasing more U.S. soybeans and Treasury Secretary Mnuchin confirming trade talks will resume in two weeks. None of these developments was particularly surprising.

That advance proved short-lived as stocks began an orderly retreat following a weaker-than-expected consumer confidence report for September and President Trump's speech at the UN General Assembly. In his speech, President Trump delivered tough-sounding remarks on China and Iran, particularly outlining China's dishonesty and warning countries to not subsidize Iran's "blood lust."

Selling accelerated, sending the major averages well into negative territory by midday, after reports surfaced that House Speaker Nancy Pelosi was planning to formally announce an impeachment inquiry on President Trump at 5:30 p.m. ET. Mr. Trump said he will release a full unredacted transcript of his conversation with Ukraine's President Volodymyr Zelensky.

The S&P 500 energy sector (-1.6%) led the sectors in losses as oil prices ($57.32, -1.30, -2.3%) weakened. The communication services sector (-1.3%) and the trade-sensitive Philadelphia Semiconductor Index (-1.7%) showed relative weakness after a strong start. The defensive-oriented utilities (+1.0%) and consumer staples (+0.2%) sectors were the lone sectors to finish in positive territory.

Notable laggards included FAANG components Facebook (FB 181.28, -5.54, -3.0%), Amazon (AMZN 1741.61, -43.69, -2.5%), and Netflix (NFLX 254.59, -11.33, -4.3%). An earnings miss from AutoZone (AZO 1096.63, -50.63, -4.4%) weighed on the stock.

U.S. Treasuries resumed their recent advance amid the political uncertainty and concerns about trade and growth. The 2-yr yield declined six basis points to 1.61%, and the 10-yr yield declined seven basis points to 1.64%. Interestingly, the 10-yr yield is now down 27 basis points from its high on Sept. 13. The U.S. Dollar Index fell 0.3% to 98.32.

Reviewing Tuesday's economic data, which included the Conference Board's Consumer Confidence Index for September, the FHFA Housing Price Index for July, and the S&P Case-Shiller Home Price Index for July:

The Conference Board's Consumer Confidence Index for September dropped to 125.1 (Briefing.com consensus 134.0) from a downwardly revised 134.2 (from 135.1) in August.
The key takeaway from the report is that it reflects burgeoning anxiety among consumers about the impact of tariffs and trade tension. That hasn't translated into a retrenchment in consumer spending yet. If confidence continues to wane, though, the market will start to assume it is going to show up in weaker levels of discretionary spending activity, which would be bad for growth prospects.
The FHFA Housing Price Index for July increased 0.4% following an unrevised 0.2% increase in June.
The S&P Case-Shiller Home Price Index for July increased 2.0% (Briefing.com consensus of 2.3%) following a revised 2.2% increase in June (from 2.1%).

Looking ahead, investors will receive New Home Sales for August and the weekly MBA Mortgage Applications on Wednesday.

Nasdaq Composite +20.5% YTD
S&P 500 +18.3% YTD
Dow Jones Industrial Average +14.9% YTD
Russell 2000 +13.7% YTD

Market Snapshot
Dow 26807.77 -142.22 (-0.53%)
Nasdaq 7993.62 -118.84 (-1.46%)
SP 500 2966.64 -25.18 (-0.84%)
10-yr Note +8/32 1.639
NYSE Adv 872 Dec 1911 Vol 952.2 mln
Nasdaq Adv 674 Dec 2417 Vol 2.3 bln

[ReturntoSender]

Cyclical stocks lead Wall Street higher following trade news, data, earnings
25-Sep-19 16:15 ET
Dow +162.94 at 26970.71, Nasdaq +83.76 at 8077.38, S&P +18.27 at 2984.91

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

[BRIEFING.COM] The S&P 500 gained 0.6% on Wednesday, as upbeat trade news and strong economic data and earnings helped investors brush aside impeachment concerns. The Dow Jones Industrial Average also increased 0.6%, while the Nasdaq Composite (+1.1%) and Russell 2000 (+1.1%) outperformed after leading yesterday's decline.

The stock market struggled for direction to begin the day, with the S&P 500 dipping to session lows (-0.5%) just before new home sales for August and the notes taken from President Trump's call with Ukrainian President Zelensky were released at 10:00 a.m. ET.

The annual pace of new home sales for August (713,000) exceeded the Briefing.com consensus of 659,000 and was one of the highest readings since October 2007. Regarding the notes, the Department of Justice said there was no indication of any violation of campaign finance laws.

Safe-haven assets like gold ($1513.10/ozt, -$27.60, -1.8%) and U.S. Treasuries began to sell off, with some curve-steeping activity contributing to the gains in the S&P 500 financials sector (+0.7%). Trade-sensitive areas like the information technology (+1.2%) and consumer discretionary (+1.0%) sectors gained traction after President Trump said a trade deal with China could "come sooner than you think."

Likewise, the Dow Jones Transportation Average (+1.0%) and Philadelphia Semiconductor Index (+1.8%) finished with noticeable gains as the broader market steadily increased throughout the day. The defensive-oriented health care (-0.5%), real estate (-0.1%), and utilities (-0.1%) sectors were the lone S&P 500 sectors to finish in negative territory.

Nike (NKE 90.81, +3.63, +4.2%) and Cintas (CTAS 266.62, +14.48, +5.7%) padded the advance after both beat top and bottom-line estimates, with Cintas issuing upside FY20 EPS guidance. Philip Morris International (PM 75.28, +3.72, +5.2%) outperformed after it ended merger talks with Altria (MO 40.56, -0.17, -0.4%) as scrutiny of Juul/vaping intensified. Altria owns a stake in Juul.

The 2-yr yield increased six basis points to 1.67%, and the 10-yr yield increased ten basis points to 1.73%. The U.S. Dollar Index rose 0.7% to 99.03 amid weakness in the euro and British pound. WTI crude lost 1.3%, or $0.76, to $56.56/bbl, extending its recent pullback as inventories unexpectedly increased, according to the weekly report from the EIA.

Reviewing Wednesday's economic data, which included New Home Sales for August and the weekly MBA Mortgage Applications Index:

New home sales surged 7.1% m/m to a seasonally adjusted annual rate of 713,000 units (Briefing.com consensus 659,000) from an upwardly revised 666,000 (from 635,000) in July. August trailed only June as the highest-paced sales month since October 2007.
The key takeaway from the report is that the strength underscores the impact of low mortgage rates on buyer demand, as the higher-priced West region saw the biggest increase among all regions.
The weekly MBA Mortgage Applications Index fell 10.1% following a 0.1% decline in the prior week.

Looking ahead, investors will receive the following reports on Thursday: the third estimate for Q2 GDP, the weekly Initial and Continuing Claims report, Pending Home Sales for August, and the Advance reports for International Trade in Goods, Retail Inventories, and Wholesale Inventories.

Nasdaq Composite +21.7% YTD
S&P 500 +19.1% YTD
Dow Jones Industrial Average +15.6% YTD
Russell 2000 +15.0% YTD

Market Snapshot
Dow 26970.71 +162.94 (0.61%)
Nasdaq 8077.38 +83.76 (1.05%)
SP 500 2984.91 +18.27 (0.62%)
10-yr Note -7/32 1.728
NYSE Adv 1791 Dec 997 Vol 839.7 mln
Nasdaq Adv 1817 Dec 1268 Vol 2.0

[ReturntoSender]

Stocks close near lows as U.S. blacklists more Chinese firms
08-Oct-19 16:25 ET
Dow -313.98 at 26164.04, Nasdaq -132.52 at 7823.78, S&P -45.73 at 2893.10

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

[BRIEFING.COM] The S&P 500 fell 1.6% on Tuesday following a series of trade developments that exacerbated concerns about upcoming trade talks and global growth prospects. The Dow Jones Industrial Average (-1.2%), Nasdaq Composite (-1.7%), and Russell 2000 (-1.7%) also posted sizable losses to close near session lows.

The U.S. Commerce Department placed 28 more Chinese firms on its Entity List for their role in fostering violations of human rights against a Muslim minority in China. Beijing's foreign ministry spokesman denied the allegations and warned about possible retaliation, with a report suggesting China could even leave this week's discussions one day early.

Selling pressure appeared to level off after China's Global Times reported that China remains sincere in reaching a comprehensive deal and intends on proceeding "calmly." Stocks then cut losses after Fed Chair Powell said the Fed plans on expanding its balance sheet, but quickly faded into the close on news that the U.S. will impose visa bans on Chinese officials linked to the human rights abuses.

All 11 S&P 500 sectors finished lower in a risk-off session. Nine sectors lost at least 1.0%, including a 2.0% drop in the financials sector. The real estate sector (-0.5%) declined the least.

A disappointing outcome in trade talks was likely being priced in but also the likelihood that the tariff rate on $250 billion of Chinese imports will increase to 30% from 25% on Oct. 15, as planned. In other words, the trade uncertainty continued to dampen the growth outlook for the economy and corporate earnings.

Many of the China-sensitive semiconductor stocks, including Ambarella (AMBA 51.79, -5.43, -9.5%), underperformed as many of these companies derive a sizable portion of their revenue from China. The Philadelphia Semiconductor Index dropped 3.1% on Tuesday.

U.S. Treasuries ended a volatile session on a higher note amid growth concerns and an unexpected decline in producer prices for September. The 2-yr yield declined four basis points to 1.42%, and the 10-yr yield declined two basis points to 1.54%. The U.S. Dollar Index increased 0.2% to 99.13. WTI crude declined 0.3%, or $0.13, to $52.66/bbl.

Reviewing Tuesday's economic data, which included the Producer Price Index for September and the NFIB Small Business Optimism Index for September:

The Producer Price Index for final demand declined 0.3% m/m in September (Briefing.com consensus +0.1%), as did the index for final demand less food and energy (Briefing.com consensus +0.2%).
The key takeaway from the report is that the price declines were broad based, and not just energy-related, which is indicative of an environment characterized by weaker demand. The Producer Price Index for September wasn't good news, unless it's spun as a "bad news is good news" kind of thing because it seemingly strengthened the case for a Fed rate cut later this month.
The NFIB Small Business Optimism Index for September declined to 101.8 from 103.1.

Looking ahead, investors will receive the Minutes from the FOMC's September meeting, the JOLTS - Job Openings report for August, the Wholesale Inventories report for August, and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +17.9% YTD
S&P 500 +15.1% YTD
Dow Jones Industrial Average +12.2% YTD
Russell 2000 +9.2% YTD

Market Snapshot
Dow 26164.04 -313.98 (-1.19%)
Nasdaq 7823.78 -132.52 (-1.67%)
SP 500 2893.10 -45.73 (-1.56%)
10-yr Note +2/32 1.539
NYSE Adv 686 Dec 1926 Vol 805.7 mln
Nasdaq Adv 666 Dec 2420 Vol 1.9 bln

Industry Watch
Strong: Real Estate
Weak: Financials, Health Care, Information Technology

Moving the Market

-- Stocks decline in broad-based retreat on exacerbated concerns about trade and growth

-- U.S. placed 28 Chinese firms on its trade blacklist for their part in fostering human rights abuses against a Muslim minority in China; will impose some visa restrictions

-- China denies violations and warns it could retaliate; still plans on proceeding calmly and is reportedly sincere in reaching a comprehensive deal

-- Fed Chair Powell said the Fed intends on expanding its balance sheet but says it should not be mistaken as "QE"

-- Weakness in the China-sensitive semiconductor stocks

[ReturntoSender]

U.S. stocks rise ahead of key trade meeting tomorrow
10-Oct-19 16:15 ET
Dow +150.66 at 26496.67, Nasdaq +47.04 at 7950.78, S&P +18.73 at 2938.17

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

[BRIEFING.COM] Wall Street ended Thursday on a positive note, as investors looked ahead to a supposed meeting between President Trump and China's Vice Premier, Liu He, tomorrow. The S&P 500 rose 0.6%, comparable to the gains in the Dow Jones Industrial Average (+0.6%), Nasdaq Composite (+0.6%), and Russell 2000 (+0.4%).

The session began on flat note, which was a noteworthy feat considering U.S. futures dropped over 1.0% last night on a negative-sounding report from China. That report indicated that no progress was made among deputy officials in Washington and that officials may leave talks early. The latter was edited later to reflect the planned two-day stay.

A tweet from President Trump in which he said he will meet with the Vice Premier at the White House on Friday quickly sent stocks higher and U.S. Treasuries even lower. Ten of the 11 S&P 500 sectors finished in positive territory, with the energy (+1.3%) and financial (+1.0%) sectors advancing the most. The utilities sector (-0.1%) was the lone holdout amid the higher Treasury yields.

The 2-yr yield (1.53%) and the 10-yr yield (1.66%), which both rose seven basis points, initially started to sell off after yr/yr changes in consumer prices reflected a firming of consumer inflation. The U.S. Dollar Index fell 0.4% to 98.69. WTI crude rose 1.8% (+$0.94) to $53.57/bbl.

Regarding a possible outcome of tomorrow's talks, several news outlets reported that a partial deal could include a currency pact and an agreement to prevent any tariff rate increases. This could help the earnings prospects of companies with exposure to China, namely those within the materials (+1.0%), industrials (+0.9%), and information technology (+0.6%) sectors.

Corporate news was largely overshadowed by the influx of trade headlines.

Notable large-cap movers included Cisco Systems (CSCO 46.15, -0.69, -1.5%), Netflix (NFLX 280.48, +12.95, +4.8%), and Delta Air Lines (DAL 53.10, -0.82, -1.5%). Cisco was downgraded to Neutral from Buy at Goldman Sachs. Netflix brushed off two more analyst price cuts. Delta Air Lines guided Q4 EPS with a midpoint that was below expectations.

Outsized moves belonged to Bed Bath & Beyond (BBBY 12.09, +2.15, +21.6%) and PG&E (PCG 7.79, -3.19, -29.1%). Bed Bath & Beyond appointed former Target (TGT 110.57, +0.21, +0.2%) executive Mark Tritton as its President and CEO. In PG&E's case, a bankruptcy judge decided to allow other parties to put forth a Chapter 11 restructuring plan for the company.

Reviewing Thursday's economic data, which included the Consumer Price Index for September and the weekly Initial and Continuing Claims report:

Total CPI was unchanged m/m in September (Briefing.com consensus +0.1%) while core CPI, which excludes food and energy, was up 0.1% (Briefing.com consensus +0.2%). That left the yr/yr changes at 1.7% and 2.4%, respectively, which were the same increases seen in August.
The key takeaway from the report is that the yr/yr changes connote a firming of consumer inflation, which could give the Fed some possible cover to hold off on a rate cut in October.
Initial claims for the week ending October 5 decreased by 10,000 to 210,000 (Briefing.com consensus 220,000). Continuing claims for the week ending Sept. 28 increased by 29,000 to 1.684 million.
The key takeaway from this report was that the low level of initial claims connotes continuing firming in the labor market, which could give the Fed some possible cover to hold off on a rate in October.

Looking ahead, investors will receive the preliminary October reading for the University of Michigan's Index of Consumer Sentiment and Import and Export Prices for September on Friday.

Nasdaq Composite +19.8% YTD
S&P 500 +17.2% YTD
Dow Jones Industrial Average +13.6% YTD
Russell 2000 +10.1% YTD

Market Snapshot
Dow 26496.67 +150.66 (0.57%)
Nasdaq 7950.78 +47.04 (0.60%)
SP 500 2938.17 +18.73 (0.64%)
10-yr Note -29/32 1.667
NYSE Adv 1754 Dec 1.8 bln Vol 800.0 mln
Nasdaq Adv 1730 Dec 1336 Vol 1.8 bln

Industry Watch
Strong: Energy, Financials, Materials
Weak: Utilities, Real Estate

[ReturntoSender]

Wall Street rises in good start to earnings season
15-Oct-19 16:25 ET
Dow +237.44 at 27024.80, Nasdaq +100.06 at 8148.71, S&P +29.53 at 2995.68

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

[BRIEFING.COM] The S&P 500 rose 1.0% on Tuesday, as JPMorgan Chase (JPM 119.96, +3.51, +3.0%), UnitedHealth (UNH 238.59, +18.00, +8.2%), and Johnson & Johnson (JNJ 132.84, +2.12, +1.6%) kicked off the third quarter reporting season with better-than-expected earnings results.

The Dow Jones Industrial Average gained 0.9%, the Nasdaq Composite gained 1.2%, and the Russell 2000 gained 1.2%.

Most of today's advance came in the early going. The S&P 500 opened just 0.3% higher, and it quickly pushed to session highs amid news that the EU and UK are nearing a draft Brexit deal and that General Motors (GM 36.26, +0.76, +2.1%) and the UAW could also reach a deal soon. Although nothing was finalized, the optimism helped solidify a risk-on mindset following today's batch of better-than-feared earnings results.

The benchmark index traded around the 3000 level for most of the session, supported by gains in nine of its 11 sectors. The health care sector (+1.8%) provided the leadership, followed by the communication services (+1.6%) and financials (+1.3%) sectors. The consumer staples (-0.4%) and utilities (-0.3%) sectors ended the day lower.

Wells Fargo (WFC 50.07, +0.80, +1.6%), Citigroup (C 71.23, +0.99, +1.4%), and Goldman Sachs (GS 206.41, +0.59, +0.3%) each began the day in negative territory after the banks provided mixed results, but a turnaround in shares provided extra support for the early move higher.

Elsewhere, the Philadelphia Semiconductor Index (+2.2%) set a new all-time high on Tuesday. 29 of its 30 components finished higher, with NVIDIA (NVDA 196.37, +9.84, +5.3%) advancing the most after its price target was raised to $250 from $225 at Bank of America/Merrill Lynch.

Trade news continued to make headlines, although the muted reaction likely reflected some exhaustion to trade speculation. "People familiar with the matter" told Bloomberg News that China may struggle fulfilling part of its agreement to purchase $50 billion of U.S. agricultural goods unless President Trump lifts retaliatory tariffs.

U.S. Treasuries finished near their session lows, leaving yields slightly higher. The 2-yr yield increased one basis point to 1.61%, and the 10-yr yield increased two basis points to 1.77%. The U.S. Dollar Index declined 0.2% to 98.31. WTI crude declined 1.4%, or $0.76, to $53.55/bbl.

Tuesday's economic data was limited to the Empire State Manufacturing Survey for October, which increased to 4.0 (Briefing.com consensus -1.0) from 2.0. On Wednesday, investors will receive Retail Sales for September, Business Inventories for August, the weekly MBA Mortgage Applications Index, and Net Long-Term TIC Flows for August.

Nasdaq Composite +22.8% YTD
S&P 500 +19.5% YTD
Dow Jones Industrial Average +15.9% YTD
Russell 2000 +13.0% YTD

Market Snapshot
Dow 27024.80 +237.44 (0.89%)
Nasdaq 8148.71 +100.06 (1.24%)
SP 500 2995.68 +29.53 (1.00%)
10-yr Note -25/32 1.770
NYSE Adv 1846 Dec 1015 Vol 733.7 mln
Nasdaq Adv 2204 Dec 866 Vol 1.8 bln

Industry Watch
Strong: Health Care, Communication Services, Financials
Weak: Consumer Staples, Utilities, Real Estate

Moving the Market

-- Stocks rise in good start to Q3 earnings season

-- JPMorgan Chase (JPM) and UnitedHealth (UNH) finish noticeably higher following positive, and better-than-feared, earnings results

-- The UK and EU reportedly closing in on a draft Brexit deal

-- Risk-on mindset, although trading volume wasn't too great

[ReturntoSender]

S&P 500 sets new intraday high before closing lower
29-Oct-19 16:25 ET
Dow -19.26 at 27071.46, Nasdaq -49.13 at 8276.86, S&P -2.53 at 3036.89

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

[BRIEFING.COM] The S&P 500 declined 0.1% on Tuesday, although it did set a new intraday high in this lackluster session. Earnings reports remained in focus ahead of key developments later in the week, which presumably kept buying conviction in check today.

The Dow Jones Industrial Average also declined 0.1%. The Nasdaq Composite underperformed with a 0.6% loss, while the Russell 2000 managed to gain 0.3%.

An earnings miss from Alphabet (GOOG 1262.62, -27.38, -2.1%) contributed to some profit taking in the stock and in other strong technology stocks like Apple (AAPL 243.29, -5.76, -2.3%). In addition, the selloffs in Beyond Meat (BYND 81.99, -23.42, -22.2%) and GrubHub (GRUB 33.11, -25.28, -43.3%) following their results had some investors feeling less interested in high-beta names.

In turn, the S&P 500 communication services (-1.0%), information technology (-0.9%), and consumer discretionary (-0.6%) sectors, where many of these companies reside, weighed on the broader market. Fortunately, the market found some support in the health care (+1.2%), materials (+0.7%), energy (+0.4%), and real estate (+0.4%) sectors.

Pfizer (PFE 38.21, +0.93, +2.5%) and Merck (MRK 85.11, +2.91, +3.5%) provided the lift for the health care space after both reported positive quarterly results and upbeat guidance. Other blue-chip companies with less-demanding valuations like General Motors (GM 38.21, +1.57, +4.3%), Kellogg (K 62.87, +1.81, +3.0%), Xerox (XRX 34.40, +3.61, +11.7%), and Ingersoll-Rand (IR 127.86, +5.78, +4.7%) also pleased investors with their earnings reports.

Separately, Johnson & Johnson (JNJ 129.12, -0.06, unch) announced that "rigorous and third-party testing confirms there is no asbestos in Johnson's Baby Powder." Shares were halted for trading and did not resume trading before the market closed. Shares of Boeing (BA 348.93, +8.05, +2.4%) reacted favorably to CEO Dennis Muilenburg's testimony before the Senate.

U.S. Treasuries crept higher in an equally lackluster session. The 2-yr yield and the 10-yr yield both declined one basis point to 1.64% and 1.84%, respectively. The U.S. Dollar Index declined 0.1% to 97.69. WTI crude declined 0.3%, or $0.19, to $55.76/bbl.

Reviewing Tuesday's economic data, which included Conference Board's Consumer Confidence Index for October, Pending Home Sales for September, and the S&P Case-Shiller Home Price Index for August:

The Conference Board's Consumer Confidence Index slipped to 125.9 in October (Briefing.com consensus 127.5) from an upwardly revised 126.3 (from 125.1) in September.
The key takeaway from the report is that there wasn't any material change from the prior month despite lingering worries about trade and economic growth prospects, suggesting overall feelings about job security remain an underpinning for consumer confidence.
Pending Home Sales increased 1.5% in September (Briefing.com consensus +0.7%). Today's reading follows a revised 1.4% increase in August (from 1.6%).
The S&P Case-Shiller Housing Price Index for August increased 2.0% (Briefing.com consensus 2.5%) following an unrevised 2.0% increase in the prior month.

Looking ahead, investors will receive the FOMC rate decision, the advance estimate for Q3 GDP, the ADP Employment Change report for October, and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +24.7% YTD
S&P 500 +21.1% YTD
Russell 2000 +17.0% YTD
Dow Jones Industrial Average +16.1% YTD

Market Snapshot
Dow 27071.46 -19.26 (-0.07%)
Nasdaq 8276.86 -49.13 (-0.59%)
SP 500 3036.89 -2.53 (-0.08%)
10-yr Note +1/32 1.834
NYSE Adv 1494 Dec 1357 Vol 808.1 mln
Nasdaq Adv 1545 Dec 1525 Vol 1.8 bln

Industry Watch
Strong: Health Care, Materials, Energy, Real Estate
Weak: Communication Services, Information Technology, Consumer Discretionary

Moving the Market

-- S&P 500 sets new intraday high in muted session before closing lower

-- Alphabet (GOOG) pulls back from all-time highs after missing earnings estimates; relative weakness in other technology stocks

-- Strength in the health care sector after positive results, upbeat guidance from Pfizer (PFE) and Merck (MRK)

-- Blue-chip stocks outperformed

[ReturntoSender]

S&P 500 closes lower on trade concerns, but still ends month higher
31-Oct-19 16:20 ET
Dow -140.46 at 27046.27, Nasdaq -11.62 at 8292.36, S&P -9.21 at 3037.56

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

[BRIEFING.COM] The S&P 500 lost 0.3% on this last day of October, as concerns about a comprehensive U.S.-China trade deal outweighed the positive earnings results from Apple (AAPL 248.76, +5.50, +2.3%) and Facebook (FB 191.65, +3.40, +1.8%).

The Dow Jones Industrial Average (-0.5%), Nasdaq Composite (-0.1%), and Russell 2000 (-0.7%) also finished lower, but an opportunistic mindset into the close helped stocks finish well off their session lows.

Many U.S. investors have already expressed skepticism that China would agree, and commit, to structural reforms in a complete trade deal, but it was discouraging to see a Bloomberg report indicating Chinese officials also having their own doubts. Economic data showing continued weakness in China's manufacturing sector didn't help sentiment, either.

Given the resiliency of the market, it was business as usual when the stock market opened the session relatively unchanged. This was short-lived, though, with the major indices quickly giving back Wednesday's post-FOMC gains. Coinciding with this decline was the release of the Chicago PMI for October, which fell deeper into contraction territory to 43.2 (Briefing.com consensus 48.2) from 47.1.

In turn, weakness primarily rested in the trade-and-growth sensitive areas of the market: The S&P 500 industrials (-1.1%), materials (-1.1%), financials (-0.6%), and energy (-0.5%) sectors. Conversely, the utilities (+0.5%) and communication services (+0.3%) sectors were the lone groups that finished in positive territory.

A risk-off mindset was also manifested in the rally in the U.S. Treasury market and the continued rotation out of growth stocks. Most notably, Twilio (TWLO 96.56, -11.14, -10.3%), Etsy (ETSY 44.49, -8.31, -15.7%), Wayfair (W 82.23, -18.85, -18.7%), and Lyft (LYFT 41.44, -2.67, -6.1%) posted sizable losses following their earnings reports.

The 2-yr yield dropped ten basis points to 1.52%, and the 10-yr yield dropped 11 basis points to 1.69%. The U.S. Dollar Index fell 0.4% to 97.30. WTI crude fell 1.6%, or $0.90%, to $54.18/bbl.

There were some encouraging developments for investors to consider, though. The S&P 500 found support at its previous closing high from July 26 (3025.86) three times today before closing above it. Some month-end rebalancing activity might have also exacerbated today's price action. The benchmark index rose 2.0% this month.

Reviewing Thursday's economic data:

Initial claims for the week ending October 26 increased by 5,000 to 218,000 (Briefing.com consensus 216,000). Continuing claims for the week ending October 19 increased by 7,000 to 1.690 million.
The key takeaway from the report is that there is nothing alarming in the initial claims trend, which continues to track close to historic lows.
Personal income was up 0.3% in September, as expected and personal spending was up 0.2% (Briefing.com consensus +0.3%). The PCE Price Index was unchanged m/m (Briefing.com consensus +0.1%) and up 1.3% yr/yr; the core PCE Price Index was unchanged m/m (Briefing.com consensus +0.1%) and up 1.7% yr/yr.
The key takeaway from the report is that the data fit reasonably well with the Fed's working view that the U.S. economy is growing at a moderate pace with muted inflation pressures.
The Q3 Employment Cost Index increased 0.7%, as expected, seasonally adjusted, for the three-month period ending in September 2019 after increasing 0.6% for the three-month period ending in June 2019. Wages and salaries, which account for about 70% of compensation costs, rose 0.9%, while benefit costs, which make up the remainder of compensation costs, increased 0.6%.
The key takeaway from the report is that it shows a continuation of moderate growth in compensation costs.
Chicago PMI for October fell to 43.2 (Briefing.com consensus 48.2) from 47.1, sinking deeper into contraction territory.

Looking ahead, investors will receive the Employment Situation Report for October, the ISM Manufacturing Index for October, the Construction Spending report for September, and auto and truck sales throughout the day on Friday.

Nasdaq Composite +25.0% YTD
S&P 500 +21.2% YTD
Dow Jones Industrial Average +15.9% YTD
Russell 2000 +15.9% YTD

Market Snapshot
Dow 27046.27 -140.46 (-0.52%)
Nasdaq 8292.36 -11.62 (-0.14%)
SP 500 3037.56 -9.21 (-0.30%)
10-yr Note +30/32 1.683
NYSE Adv 1086 Dec 1765 Vol 1.2 bln
Nasdaq Adv 1148 Dec 1952 Vol 2.0 bln

Industry Watch
Strong: Utilities, Communication Services
Weak: Industrials, Materials, Financials, Energy

Moving the Market

-- Stock market closes slightly lower amid concerns about comprehensive trade deal, weak manufacturing data, month-end rebalancing activity

-- Relative weakness in the cyclical sectors and trade-sensitive areas

-- Apple (AAPL) and Facebook (FB) rise on positive quarterly results

-- U.S. Treasury yields dropped on weak Chicago PMI, trade and growth concerns

[ReturntoSender]

Stock market takes breather, Treasury yields rise
05-Nov-19 16:15 ET
Dow +30.52 at 27492.67, Nasdaq +1.48 at 8434.68, S&P -3.65 at 3074.62

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

[BRIEFING.COM] The S&P 500 shed 0.1% on Tuesday in a mixed session that saw more trade headlines and a further increase in Treasury yields. The Dow Jones Industrial Average (+0.1%), Nasdaq Composite (+0.01%), and Russell 2000 (+0.1%) finished just above their flat lines.

Reports indicated that the U.S. is considering removing the 15% tariff rate that went into effect in September and could possibly delay the tariffs in place for December. China, however, reiterated it would want the U.S. to remove all retaliatory tariffs imposed since last year and for the U.S. to be firmer in its commitments to remove them.

It's a tough ask, but the market presumably understood that negotiations are ongoing and it shouldn't conclude that a "Phase One" deal won't get signed based on these reports. The improved outlook on growth, then, continued to play out in the market, especially after the ISM Non-Manufacturing Index for October increased to 54.7% (Briefing.com consensus 53.3%) from 52.6% in September.

U.S. Treasuries continued to retreat after the report, which sent yields higher in a curve-steepening trade that contributed to the outperformance of the S&P 500 financials sector (+0.4%). The energy sector (+0.5%) was today's leader, while the defensive-oriented real estate (-1.8%), utilities (-1.0%), and health care (-0.9%) sectors posted sizable losses.

The 2-yr yield rose four basis points to 1.63%, and the 10-yr yield rose eight basis points to 1.87%. The U.S. Dollar Index increased 0.4% to 97.94. WTI crude rose 1.0%, or $0.55, to $57.24/bbl.

Walgreens Boots Alliance (WBA 61.21, +1.56, +2.6%) and Kroger (KR 27.83, +2.84, +11.4%) were some notable gainers in the consumer staples sector (+0.3%). Walgreens held preliminary discussions with private equity firms about a leveraged buyout, according to Reuters, while Kroger issued upbeat FY20 guidance following an encouraging update on its "Restock Kroger" initiative.

Adobe Systems (ADBE 289.29, +11.79, +4.3%) also provided shareholders with upbeat FY20 guidance. Shares rose accordingly, while shares of Uber (UBER 28.02, -3.06, -9.9%) and Peloton (PTON 22.74, -1.87, -7.6%) dropped despite better-than-expected results and decent guidance. Shake Shack (SHAK 66.83, -17.38, -20.6%) plunged 21% on disappointing guidance.

Reviewing Tuesday's economic data, which included the ISM Non-Manufacturing Index for October, the Trade Balance report for September, and the JOLTS - Job Openings survey for September:

The ISM Non-Manufacturing Index for October increased to 54.7% (Briefing.com consensus 53.3%) from 52.6% in September.
The key takeaway from the report is that it reflects an acceleration of expansion-based activity in October, which is a supportive consideration since the non-manufacturing sector accounts for a significantly larger slice of U.S. economic activity than the manufacturing sector does.
The U.S trade deficit narrowed slightly in September to $52.5 billion, as expected, from a downwardly revised $55.0 billion (from -$54.9 billion) in August.
The key takeaway from the report is that it wasn't a narrowing driven necessarily by stronger demand. On the contrary, imports (-$4.4 billion) and exports (-$1.8 billion) both declined month-over-month, so the narrowing was simply a function of imports falling more than exports.
The September Job Openings and Labor Turnover Survey showed that job openings declined to 7.024 million from a revised 7.301 million in August (from 7.051 million).

Looking ahead, investors will receive preliminary Q3 numbers for Productivity and Unit Labor Costs and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +27.1% YTD
S&P 500 +22.7% YTD
Russell 2000 +18.6% YTD
Dow Jones Industrial Average +17.9% YTD

Market Snapshot
Dow 27492.67 +30.52 (0.11%)
Nasdaq 8434.68 +1.48 (0.02%)
SP 500 3074.62 -3.65 (-0.12%)
10-yr Note -29/32 1.859
NYSE Adv 1321 Dec 1551 Vol 988.8 mln
Nasdaq Adv 1635 Dec 1465 Vol 2.1 bln

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

Moving the Market

-- Stock market takes breather and closes little changed

-- ISM Non-Manufacturing Index for October increased more than expected

-- U.S. is reportedly considering removing 15% tariff rate imposed on Chinese imports in September and could possibly delay tariffs in December; China wants more tariffs removed

-- Treasury yields rise in curve-steepening trade

[ReturntoSender]

Major indices squeeze out record closes to end week
08-Nov-19 16:25 ET
Dow +6.44 at 27681.28, Nasdaq +40.80 at 8475.32, S&P +7.90 at 3093.08

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

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.5%), and Dow Jones Industrial Average (+0.02%) closed at record highs on Friday, even as President Trump said he had not yet agreed to roll back existing tariffs. The Russell 2000 increased 0.3%.

President Trump's statement refuted China's claim that an agreement was already made, but the market maintained an optimistic view on trade. It presumably continued to think that a "Phase One" deal will still get signed considering the president didn't technically rule out the possibility to roll back tariffs and White House trade advisor Peter Navarro said the U.S. might be willing to delay the Dec. 15 tariffs.

There still wasn't much conviction from buyers or sellers for most of the session, though, until a wave of buyers pushed the market to session highs into the close. The S&P 500 health care (+0.8%) and information technology (+0.6%) sectors posted decent gains, while the energy (-0.8%), utilities (-0.4%), and real estate (-0.2%) sectors finished lower.

Walt Disney (DIS 137.96, +5.00, +3.8%) beat earnings estimates and shares of the Dow component rose accordingly. Its outperformance also helped the S&P 500 communication services sector (+0.4%) overcome weakness in Verizon (VZ 59.35, -1.18, -2.0%), which fell on no confirmed news catalyst.

The trade-sensitive Philadelphia Semiconductor Index (+0.5%) continued to rise amid the upbeat trade sentiment. The group also benefited from follow-through buying in shares of Qualcomm (QCOM 94.03, +4.05, +4.5%) after it reported positive earnings results earlier in the week.

In other corporate news, Southwest's (LUV 58.18, -0.06, -0.1%) 10-Q stated it plans to remove Boeing's (BA 351.00, -6.31, -1.8%) 737 MAX from its flight schedule through March 6, 2020. This is a one-month delay. Gap, Inc. (GPS 16.68, -1.38, -7.6%) announced the departure of its CEO and issued downside EPS guidance.

The U.S. Treasury market finished relatively unchanged in a quiet session. The 2-yr yield declined one basis point to 1.66%, and the 10-yr yield increased one basis point to 1.93%. The U.S. Dollar Index increased 0.2% to 98.37. WTI crude increased 0.2% (+$0.10) to $57.21/bbl.

Reviewing Friday's economic data, which included the preliminary University of Michigan Consumer Sentiment Index for November and the Wholesale Inventories report for September:

The preliminary University of Michigan Consumer Sentiment Index for November crossed at 95.7 (Briefing.com consensus 95.0), which was slightly better than expected and roughly even with the final reading of 95.5 for October.
The key takeaway from the report is that consumer expectations increased from October, underscoring an otherwise confident attitude that should continue to manifest itself in relatively solid consumer spending activity.
Wholesale inventories declined 0.4% m/m in September (Briefing.com consensus -0.1%), on top of a downwardly revised 0.1% increase (from +0.2%) in August. That was the largest decline since October 2017. Wholesale sales were flat in September after declining 0.1% in August.
The key takeaway from the report is that it could prove difficult for wholesalers to gain pricing power given that inventory growth remains well ahead of sales growth on a yr/yr basis.

Investors will not receive any notable economic data on Monday.

Nasdaq Composite +27.7% YTD
S&P 500 +23.4% YTD
Dow Jones Industrial Average +18.7% YTD
Russell 2000 +18.6% YTD

Market Snapshot
Dow 27681.28 +6.44 (0.02%)
Nasdaq 8475.32 +40.80 (0.48%)
SP 500 3093.08 +7.90 (0.26%)
10-yr Note -2/32 1.942
NYSE Adv 1519 Dec 1383 Vol 824.0 mln
Nasdaq Adv 1675 Dec 1390 Vol 2.0 bln

Industry Watch
Strong: Health Care, Information Technology
Weak: Energy, Utilities, Real Estate

Moving the Market

-- S&P 500, Nasdaq, Dow close week at record highs

-- President Trump said he had yet to agree to roll back existing tariffs; market remained optimistic

-- Walt Disney (DIS) beat earnings expectations

-- Relative strength in the health care sector

WTI crude futures inch higher, up nearly 2% this week
08-Nov-19 15:25 ET
Dow -19.22 at 27655.62, Nasdaq +28.43 at 8462.95, S&P +3.18 at 3088.36

[BRIEFING.COM] The S&P 500 is up near session highs with a gain of 0.1%. Any gain today would be a record close for the benchmark index.

One last look inside the S&P 500 sectors shows the health care sector (+0.7%) outperforming after AbbVie (ABBV 85.19, +3.18, +3.9%) submitted an FDA application for a cancer treatment. Conversely, the energy (-0.7%) and utilities (-0.7%) sectors remain today's laggards.

WTI crude futures settled up $0.10 (+0.2%) to $57.21/bbl. For the week, the commodity rose 1.8%.

[ReturntoSender]

S&P 500, Nasdaq extend record run
12-Nov-19 16:20 ET
Nasdaq +21.81 at 8486.09, S&P +4.83 at 3091.84

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

[BRIEFING.COM] The S&P 500 clipped the 3100 level for the first time on Tuesday, but the record run lost some steam to leave the benchmark index up just 0.2% and below 3100 on a closing basis. The Nasdaq Composite (+0.3%) closed at a record high, while the Dow Jones Industrial Average (unch) and Russell 2000 (unch) finished unchanged.

The session began with all 11 S&P 500 sectors gaining traction in a momentum trade ahead of President Trump's lunchtime speech at the Economic Club of New York. Among many things, the president said tariffs on Chinese imports will go up "substantially" if a trade deal doesn't get done, but nothing President Trump said caught the market off guard.

This lack of positive catalysts from the president likely curbed some enthusiasm among investors hoping for more substance in the speech. Buying enthusiasm really started to fade, though, before the speech when the S&P 500 ran into some resistance at the 3100 level.

It was still a generally positive day for the stock market, which has been resilient to any pullback effort this month. Relative strength was found in the S&P 500 health care (+0.6%) and materials (+0.4%) sectors, while relative weakness rested in the real estate (-0.8%) and energy (-0.6%) sectors.

The market also received support from the earnings-driven gains in Rockwell Automation (ROK 198.01, +18.81, +10.5%), DXC Technology (DXC 35.25, +5.85, +19.9%), and Tyson Foods (TSN 88.88, +6.15, +7.4%), as well as the healthy gains from Facebook (FB 194.47, +4.86, +2.6%) and Walt Disney (DIS 138.58, +1.84, +1.4%).

Facebook introduced "Facebook Pay," a feature that will allow users to send payments across its platforms. Disney officially launched its streaming service, which experienced some technical difficulties due to higher-than-expected consumer demand.

The Treasury market reopened for trading after being closed for Veterans Day yesterday. An uptick in demand pushed the 2-yr yield down one basis point to 1.65% and the 10-yr yield down two basis points to 1.91%. The U.S. Dollar Index increased 0.2% to 98.34. WTI crude was unchanged at $56.85/bbl.

Tuesday's economic data was limited to the Small Business Optimism Index for October, which improved to 102.4 from 101.8 in September. On Wednesday, investors will receive the Consumer Price Index for October, the Treasury Budget for October, and the weekly MBA Mortgage Applications Index.

Nasdaq Composite +27.9% YTD
S&P 500 +23.3% YTD
Dow Jones Industrial Average +18.7% YTD
Russell 2000 +18.3% YTD

Market Snapshot
Dow 27691.40 (%)
Nasdaq 8486.09 +21.81 (0.26%)
SP 500 3091.84 +4.83 (0.16%)
10-yr Note +2/32 1.918
NYSE Adv 1364 Dec 1475 Vol 790.6 mln
Nasdaq Adv 1542 Dec 1524 Vol 2.0 bln

Industry Watch
Strong: Health Care, Materials
Weak: Energy, Real Estate

Moving the Market

-- S&P 500, Nasdaq extend record run with modest gains

-- President Trump's speech on trade and economic policy provided no new information for the market

-- S&P 500 ran into some resistance at the 3100 level

WTI crude settles unchanged
12-Nov-19 15:25 ET
Dow -23.17 at 27668.36, Nasdaq +9.77 at 8474.05, S&P +1.43 at 3088.44

[BRIEFING.COM] The S&P 500 is wavering around its flat line right now with a fractional gain. The Russell 2000 is trading unchanged.

One last look at the S&P 500 sectors shows most sectors trading within 0.2% of their flat lines. The health care sector (+0.5%) is outperforming the market, while the energy sector (-0.9%) underperforms to give back some of its monthly gains.

WTI crude futures settled the day unchanged at $56.85/bbl.

[ReturntoSender]

S&P 500, Dow close at record highs; Disney climbs 7%13-Nov-19 16:20 ET
Dow +92.10 at 27783.50, Nasdaq -3.99 at 8482.10, S&P +2.20 at 3094.04

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

[BRIEFING.COM] The S&P 500 (+0.1%) and Dow Jones Industrial Average (+0.3%) closed at record highs on Wednesday, even as trade reports revealed that the U.S. and China continue to waver on familiar issues. Walt Disney (DIS 148.72, +10.14, +7.3%) deserves some credit, with shares rising more than 7% after it said 10 million users have already signed up for Disney+.

The Nasdaq Composite (-0.1%) and Russell 2000 (-0.4%) finished slightly lower.

The Wall Street Journal published two separate reports on trade. The first one stated the U.S. remains hesitant on removing existing tariffs on imported goods from China. The second report outlined China's unwillingness to commit to purchasing a specific amount of farm goods and its resistance to agree to enforcement mechanisms.

Many of the cyclical sectors within the S&P 500 subsequently underperformed, but the broader market remained resilient to any sort of pullback. This might have been due to the market still expecting a "Phase One" deal to get signed and Fed Chair Powell upholding the market's positive view on monetary policy in the first part of his two-day congressional testimony.

Risk sentiment was manifested more conservatively in the defensive-oriented utilities (+1.5%), real estate (+1.1%), and consumer staples (+0.9%) sectors. The financials (-0.6%), energy (-0.5%), materials (-0.5%), industrials (-0.4%), and consumer discretionary (-0.4%) sectors finished in negative territory.

The communication services (+0.4%) and information technology (+0.3%) sectors also finished higher, largely due to the continued outperformance in shares of Apple (AAPL 264.47, +2.51, +1.0%) and Disney. Apple was initiated with an Outperform rating at RBC Capital Mkts with a price target of $295.

Separately, Nike (NKE 91.29, +1.79, +2.0%) said it will stop selling products directly to Amazon (AMZN 1753.11, -24.89, -1.4%). On a related note, Nike was initiated with an Overweight rating at Barclays with a price target of $111.

U.S. Treasuries finished the session higher as part of the defensive trade today. The 2-yr yield declined two basis points to 1.63%, and the 10-yr yield declined four basis points to 1.87%. The U.S. Dollar Index finished little changed at 98.33. WTI crude increased 0.4% (+$0.23) to $57.08/bbl.

Reviewing Wednesday's economic data, which included Consumer Price Index for October, the weekly MBA Mortgage Applications Index, and the Treasury Budget for October:

Total CPI was up 0.4% m/m in October (Briefing.com consensus +0.3%), driven largely by higher energy costs, while core CPI, which excludes food and energy, increased 0.2%, as expected. The monthly changes left the yr/yr changes at 1.8% for total CPI (up from 1.7% previously) and 2.3% for core CPI (down from 2.4% previously).
The key takeaway from the report is that consumer inflation is firming up, but it isn't turning up yet to an actionable, rate-hike degree for the Federal Reserve.
The weekly Mortgage Applications Index jumped 9.6% following a 0.1% decline in the prior week.
The Treasury Budget for October showed a deficit of $134.5 billion versus a deficit of $100.5 billion in the same period a year ago.
October marks the start of fiscal year 2020 for the government. The budget deficit over the last 12 months is $1.018 trillion.

Looking ahead, investors will receive the the Producer Price Index for October and the weekly Initial and Continuing Claims report on Thursday.

Nasdaq Composite +27.8% YTD
S&P 500 +23.4% YTD
Dow Jones Industrial Average +19.1% YTD
Russell 2000 +17.8% YTD

Market Snapshot
Dow 27783.50 +92.10 (0.33%)
Nasdaq 8482.10 -3.99 (-0.05%)
SP 500 3094.04 +2.20 (0.07%)
10-yr Note +3/32 1.882
NYSE Adv 1320 Dec 1542 Vol 798.6 mln
Nasdaq Adv 1267 Dec 1825 Vol 2.1 bln

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

Moving the Market

-- S&P 500 and Dow close at record highs with modest gains; Walt Disney (DIS) shares rise after 10 million users signed up for Disney+

-- U.S. and China at odds over removing existing tariffs, committing to agricultural purchases and enforcement mechanisms

-- Fed Chair Powell delivers congressional testimony that upheld market's favorable view on monetary policy

-- Relative strength in the defensive-oriented sectors

[ReturntoSender]

S&P 500 ekes out record close, Cisco falls on cautious outlook
14-Nov-19 16:20 ET
Dow -1.63 at 27781.87, Nasdaq -3.08 at 8479.02, S&P +2.59 at 3096.63

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

[BRIEFING.COM] The S&P 500 (+0.1%) eked out another record close on Thursday despite Cisco Systems (CSCO 44.91, -3.55, -7.3%) dropping more than 7% after it issued downside quarterly guidance. The Dow Jones Industrial Average (unch), Nasdaq Composite (unch), and Russell 2000 (unch) finished closer to their flat lines.

Cisco blamed familiar macro uncertainties like Brexit and trade for its cautious outlook, but investors construed the situation as a company-specific issue. The broader market held steady throughout the morning, until shares of Walmart (WMT 120.65, -0.33, -0.3%), which were up more than 3% on positive earnings results and an upbeat outlook, turned negative.

The turnaround in Walmart shares coincided with a measly 0.4% decline in the S&P 500 before the benchmark index mustered its way back into positive territory by late afternoon. The real estate sector (+0.8%) led the comeback effort amid another decline in Treasury yields, while the energy sector (-0.3%) fell behind amid lower oil prices ($56.76, -0.32, -0.6%).

The 2-yr yield declined five basis points to 1.58%, and the 10-yr yield declined six basis points to 1.82%. The U.S. Dollar Index declined 0.2% to 98.17.

Demand for Treasuries may have been driven in part by continued misgivings about a "Phase One" trade agreement, which the U.S. and China are struggling to complete, according to a new report from The Financial Times. The stock market, though, remained undeterred by any negative-sounding trade news that doesn't come directly from President Trump, China, or top negotiators.

Today also featured notable analyst recommendations. Apple (AAPL 262.64, -1.83, -0.7%) was downgraded to Sell from Hold at Maxim Group, which may have contributed to a slight pullback in the stock. Kraft Heinz (KHC 30.96, -1.94, -5.9%) was downgraded to Sell from Neutral at Goldman, which certainly dragged the stock lower.

Separately, Fed Chair Powell's final day of testimony on Capitol Hill went largely unnoticed due to it being a reiteration of what the market already knows about monetary policy and the economic outlook.

Reviewing Thursday's economic data, which included the Producer Price Index and the weekly report for Initial and Continuing Claims:

The Producer Price Index for final demand jumped 0.4% m/m in October (Briefing.com consensus +0.3%) while the index for final demand, less food and energy, rose 0.3% (Briefing.com consensus +0.2%). The yr/yr change for these measures checked in at 1.1% and 1.6%, respectively, versus 1.4% and 2.0% in September.
The key takeaway from the report is that its surprise potential was mitigated by the prior release of the CPI data; moreover, the monthly headline surprise was neutralized by the year-over-year deceleration seen in the changes for total PPI and core PPI.
Initial claims increased by 14,000 to 225,000 (Briefing.com consensus 214,000) for the week ending November 9. Continuing claims for the week ending November 2 decreased by 10,000 to 1.683 million.
The key takeaway from the report is the recognition that the variance in the weekly initial claims number wasn't enough to change the otherwise supportive trend in the four-week moving average in a material way.

Looking ahead, investors will receive the following economic reports on Friday: Retail Sales for October, the Empire State Manufacturing Survey for November, Export and Import Prices for October, Industrial Production and Capacity Utilization for October, and Business Inventories for September.

Nasdaq Composite +27.8% YTD
S&P 500 +23.5% YTD
Dow Jones Industrial Average +19.1% YTD
Russell 2000 +17.8% YTD

Market Snapshot
Dow 27781.87 -1.63 (-0.01%)
Nasdaq 8479.02 -3.08 (-0.04%)
SP 500 3096.63 +2.59 (0.08%)
10-yr Note +28/32 1.822
NYSE Adv 1639 Dec 1225 Vol 719.0 mln
Nasdaq Adv 1437 Dec 1639 Vol 2.1 bln

Industry Watch
Strong: Real Estate, Materials, Consumer Discretionary
Weak: Energy, Information Technology

Moving the Market

-- S&P 500 ekes out another record close

-- Cisco Systems (CSCO) drops 7% on disappointing guidance; Walmart (WMT) gives up gains despite beating earning estimates and raising outlook

-- U.S. Treasuries extend weekly advance

WTI crude gives up intraday gain as inventories rise
14-Nov-19 15:25 ET
Dow -19.12 at 27764.38, Nasdaq -5.16 at 8476.94, S&P +0.19 at 3094.23

[BRIEFING.COM] The S&P 500 and Russell 2000 continue to trade unchanged.

One last look at the S&P 500 sectors shows the real estate (+0.5%) and materials (+0.4%) sectors outperforming the broader market, while the energy (-0.4%) and consumer staples (-0.3%) sectors underperform. The latter remains pressured by Walmart (WMT 119.78, -1.22, -1.0%).

WTI crude settled down $0.32 (-0.6%) to $56.76/bbl to give up an early intraday gain. Weekly crude oil inventories increased by 2.2 million barrels after increasing by 7.2 million barrels during the previous week.

[ReturntoSender]

Stock market posts incremental gains, closes at new highs
18-Nov-19 16:20 ET
Dow +31.33 at 28036.13, Nasdaq +9.11 at 8549.94, S&P +1.57 at 3122.03

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

[BRIEFING.COM] The S&P 500 (+0.1%), Dow Jones Industrial Average (+0.1%), and Nasdaq Composite (+0.1%) eked out incremental gains to close at record highs on Monday. The Russell 2000 (-0.3%) closed in negative territory.

The day began with the market digesting a tweet from a China-based CNBC reporter, who said she was informed by a Chinese government source that Beijing is pessimistic about a trade deal because President Trump hasn't supported a tariff rollback. Based on the modest losses and ensuing price action, the market presumably remained optimistic about a Phase One agreement.

The large-cap indices eased their way into positive territory thanks to the turnarounds in the S&P 500 consumer discretionary (+0.3%), information technology (+0.3%), and communication services (+0.3%) sectors. Consistent leaders included the consumer staples (+0.5%) and real estate (+0.5%) sectors, as the negative-sounding trade headline likely fostered some conservative-minded interest.

The trade-sensitive industrials (-0.3%) and materials (-0.2%) sectors were among today's laggards, but their losses were small compared to the 1.3% drop in the energy sector, which was pressured by the decline in oil prices ($57.04, -0.71, -1.2%).

Generally, there wasn't any concerted effort to sell a market trading at all-time highs, but investors weren't eager to embrace risk, either. The trend has been positive, which has likely drawn in some reluctant investors into the market, and today simply may have been a natural breather for a market breaking out to new highs.

Notable corporate news included HP Inc. (HPQ 20.01, -0.17, -0.8%) turning down the takeover bid from Xerox (XRX 39.30, +0.36, +0.9%). HP remained open to a deal, though. Netflix (NFLX 302.57, +7.54, +2.6%) shares outperformed on speculation that either Carl Icahn or Bill Ackman built a large stake in the company.

U.S. Treasuries extended last week's advance, pushing yields slightly lower across the curve. The 2-yr yield declined two basis points to 1.59%, and the 10-yr yield declined three basis points to 1.81%. The U.S. Dollar Index declined 0.2% to 97.80.

Separately, the NAHB Housing Market Index for November declined to 70 from 71 in October. Investors will receive Housing Starts and Building Permits for October on Tuesday.

Nasdaq Composite +28.9% YTD
S&P 500 +24.5% YTD
Dow Jones Industrial Average +20.2% YTD
Russell 2000 +18.1% YTD

Market Snapshot
Dow 28036.13 +31.33 (0.11%)
Nasdaq 8549.94 +9.11 (0.11%)
SP 500 3122.03 +1.57 (0.05%)
10-yr Note +2/32 1.810
NYSE Adv 1247 Dec 1639 Vol 829.3 mln
Nasdaq Adv 1347 Dec 2.0 bln Vol 2.0 bln

Industry Watch
Strong: Consumer Staples, Real Estate, Consumer Discretionary
Weak: Energy, Health Care, Industrials, Materials

Moving the Market

-- Large-cap indices post incremental gains to close at new highs

-- China-based CNBC reporter says Beijing is pessimistic about a trade deal because President Trump did not endorse a tariff rollback, per government source

-- Oil prices decline, Treasuries gain

-- Relative strength in the real estate and utilities sectors

WTI crude gives back 1% amid nervous-sounding trade headline
18-Nov-19 15:25 ET
Dow +22.66 at 28027.46, Nasdaq +8.07 at 8548.90, S&P +0.31 at 3120.77

[BRIEFING.COM] The S&P 500 currently trades at its unchanged mark. Trade has been at the forefront of headlines, but today could simply be a natural breather for a market hitting record highs.

One last look inside the S&P 500 shows the real estate (+0.5%) and consumer staples (+0.5%) sectors continuing to outpace the broader market, while the energy sector (-1.4%) remains today's laggard amid a decline in oil prices.

WTI crude futures settled down $0.71 (-1.2%) to $57.04/bbl amid lingering trade concerns that followed reported pessimism from China.

[ReturntoSender]

Major indices close at new highs before Thanksgiving Day
27-Nov-19 16:20 ET
Dow +42.32 at 28163.91, Nasdaq +57.24 at 8705.16, S&P +13.11 at 3153.63

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

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.7%), and Dow Jones Industrial Average (+0.2%) closed at new record highs on this Wednesday before Thanksgiving Day. The Russell 2000 (+0.6%) closed at a new 52-week high.

It was a steady, broad-based advance that was reflected across gains in ten of the 11 S&P 500 sectors, most notably in the consumer discretionary sector (+0.8%). Sentiment on trade and the economy remained upbeat following mostly positive economic reports and some trade comments from President Trump.

Key data points included durable goods orders unexpectedly rising 0.6% in October (Briefing.com consensus -0.7%), weekly jobless claims reversing two straight weekly increases, and Q2 GDP being revised up to 2.1% (Briefing.com consensus 1.9%) from 1.9% in the advance estimate. As for trade, President Trump said the U.S. and China are in the "final throes of a very important deal."

Trading volume was understandably lighter than usual before the holiday, but that shouldn't take away from the bullish narrative propelling stocks higher. Some of the market's most familiar, and widely-owned, stocks in Apple (AAPL 267.84, +3.55, +1.3%), Amazon (AMZN 1818.51, +21.57, +1.2%), and Facebook (FB 202.00, +3.03, +1.5%) saw increased buying interest.

The S&P 500 industrials sector (-0.2%) was the lone holdout today amid losses in Boeing (BA 368.00, -5.51, -1.5%) and Deere (DE 169.06, -7.59, -4.3%). Boeing was pressured by news that the FAA will take control in re-certifying the airworthiness of each 737 MAX plane. In Deere's case, its cautious FY20 guidance outweighed its revenue beat.

Elsewhere, Box (BOX 18.62, +1.92, +11.5%), Guess? (GES 19.53, +0.45, +2.4%), and Autodesk (ADSK 180.18, +9.38, +5.5%) pleased investors with their earnings results, while Dell (DELL 50.32, -2.87, -5.4%), HP Inc. (HPQ 19.79, -0.27, -1.4%), and VMware (VMW 161.15, -3.75, -2.3%) underwhelmed investors.

U.S. Treasuries ended the session on a lower note, sending yields higher across the curve. The 2-yr yield and the 10-yr yield both increased three basis points each to 1.62% and 1.77%, respectively. The U.S. Dollar Index increased 0.2% to 98.40. WTI crude declined 0.5%, or $0.30, to $58.11/bbl.

Reviewing Wednesday's data dump, which was mixed but mostly positive:

Personal income was unchanged m/m in October (Briefing.com consensus 0.3%). Personal spending increased 0.3%, as expected. The PCE Price Index was up 0.2% and the core PCE Price Index, which excludes food and energy, was up 0.1%. Both inflation readings were in-line with expectations.
The key takeaway from the report is that it won't provoke any rate-hike concerns given that there was a yr/yr deceleration in the core PCE Price Index and the total PCE Price Index remains well below the Fed's 2.0% longer-run target.
Durable goods orders increased 0.6% in October (Briefing.com consensus -0.7%) following a downwardly revised 1.4% decline (prior -1.1%) in September. Excluding transportation, orders were also up 0.6% (Briefing.com consensus +0.2%) after a downwardly revised 0.4% decline (from -0.3%) in September.
The key takeaway from the report is that it will serve as a positive input for Q4 GDP forecasts given that shipments of nondefense capital goods orders, excluding aircraft, jumped 0.8% after declining 0.8% in September and 0.1% in August.
Initial claims for the week ending Nov. 23 decreased by 15,000 to 213,000 (Briefing.com consensus 219,000). Continuing claims for the week ending Nov. 16 decreased by 57,000 to 1.640 million.
The key takeaway from the report is that it marked a downturn in initial claims after two, consecutive weekly increases. The overall level of initial claims remains consistent with what one would see in a tight labor market.
The second estimate for Q2 GDP showed a 2.1% increase on an annualized basis (Briefing.com consensus 1.9%) versus a 1.9% increase with the advance estimate. The GDP Price Deflator was up 1.8% (Briefing.com consensus 1.7%) versus 1.7% with the advance estimate.
The key takeaway from the report is that the upward revision was driven predominately by a change in private inventories. Real final sales growth, which excludes that change, was unchanged from the advance estimate of 2.0%.
The Chicago PMI came in at 46.3 (Briefing.com consensus 47.1), up from the 43.2 reading in October.
Pending Home Sales declined 1.7% in October (Briefing.com consensus +0.9%). Today's reading follows an unrevised 1.5% increase in September.
The MBA Mortgage Applications Index increased 1.5% following a 2.2% decline in the prior week.
The Fed's Beige Book for December noted that economic activity was little changed from the previous reporting period. Consumer spending showed moderate growth in some Districts while auto sales and tourism increased in several Districts. Some Districts reported growth in manufacturing while transportation activity was mixed. Employment increased slightly.

As a reminder, the market will be closed for Thanksgiving Day on Thursday and will reopen for a half-day ending at 1:00 p.m. ET on Friday. Investors will not receive any economic data on Friday.

Nasdaq Composite +31.2% YTD
S&P 500 +25.8% YTD
Russell 2000 +21.2% YTD
Dow Jones Industrial Average +20.7% YTD

Market Snapshot
Dow 28163.91 +42.32 (0.15%)
Nasdaq 8705.16 +57.24 (0.66%)
SP 500 3153.63 +13.11 (0.42%)
10-yr Note -23/32 1.765
NYSE Adv 1795 Dec 1091 Vol 724.5 mln
Nasdaq Adv 2030 Dec 1031 Vol 1.7 bln

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

Moving the Market

-- Major indices close at new highs before Thanksgiving Day

-- Sentiment on trade and the economy remained upbeat following comments from President Trump and decent economic data

-- Relative strength in the mega-cap stocks

-- Lighter than usual trading volume

WTI crude settles Wednesday on lower note
27-Nov-19 15:25 ET
Dow +47.86 at 28169.45, Nasdaq +53.78 at 8701.70, S&P +13.61 at 3154.13

[BRIEFING.COM] The S&P 500 continues to trade near session highs with a gain of 0.4%. The Russell 2000 is up 0.6%.

One last look inside the S&P 500 shows ten of the 11 sectors trading in positive territory. The consumer discretionary (+0.9%), communication services (+0.7%), and health care (+0.6%) sectors outperform, while the industrials sector (-0.2%) remains the lone holdout.

WTI crude settled down $0.30 (-0.5%) to $58.11/bbl.

[ReturntoSender]

Wall Street ekes out gains in mixed session
05-Dec-19 16:20 ET
Dow +28.01 at 27677.70, Nasdaq +4.03 at 8570.70, S&P +4.67 at 3117.43

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

[BRIEFING.COM] The S&P 500 increased 0.2% on Thursday in a mixed session, as investors continued to follow the latest trade headlines with muted conviction. The Dow Jones Industrial Average (+0.1%), Nasdaq Composite (+0.1%), and Russell 2000 (+0.1%) each increased 0.1%.

China's Commerce Ministry said Beijing has maintained close contact with the U.S., which Treasury Secretary Mnuchin indirectly backed up when he told reporters that talks remain on track after a recent phone call. The latest sticking point, according to The Wall Street Journal, is the value of farm goods the U.S. wants China to purchase.

The latter report caused a brief dip in the market, but stocks quickly recovered on the presumption that discussions are still moving toward a Phase One deal. There appeared, however, to be a wait-and-see mindset not only for the trade situation to progress but also for the release of the November employment report on Friday.

Today's outright leader was the lightly-weighted S&P 500 materials sector (+0.7%). Conversely, the energy sector (-0.5%) succumbed to broad-based selling while the consumer staples sector (-0.2%) was pressured by earnings-driven losses in Kroger (KR 26.80, -0.84, -3.0%) and Brown-Forman (BF.B 63.57, -4.27, -6.3%).

Notable gainers included Apple (AAPL 265.58, +3.84, +1.5%) and Nike (NKE 95.79, +2.07, +2.2%) after the stocks received positive-minded analyst recommendations. Apple's price target was raised to $300 from $250 at Citigroup. Nike was upgraded to Buy from Neutral at Goldman Sachs and was placed on its Conviction Buy List.

The biotech space also had some noteworthy moves. Sage Therapeutics (SAGE 60.18, -89.03, -59.7%) tanked after a Phase 3 study did not meet its primary endpoint for major depressive disorder, while Aurinia Pharma (AUPH 15.00, +6.61, +78.8%) surged following a positive Phase 3 result for a lupus drug. Biogen (BIIB 299.39, +9.87, +3.4%) provided a well-received update for its Alzheimer's drug.

Separately, United Airlines (UAL 87.86, -0.31, -0.4%) announced that CEO Oscar Munoz will be stepping down in May and will transition over to Executive Chairman.

U.S. Treasuries finished the session on a lower note. The 2-yr yield increased one basis point to 1.59%, and the 10-yr yield increased two basis points to 1.80%. The U.S. Dollar Index declined 0.3% to 97.38. WTI crude finished little changed at $58.45/bbl as OPEC+ convened in Vienna to discuss production cuts.

Reviewing Thursday's economic data, which included weekly jobless claims, the Trade Balance report for October, and the Factory Orders report for October:

Initial claims for the week ending November 30 dropped by 10,000 to 203,000 (Briefing.com consensus 221,000). Continuing claims for the week ending November 23 increased by 51,000 to 1.693 million.
The key takeaway from this report is the understanding that initial claims dropped back close to the lowest levels on record, which will contribute to a belief that the labor market remains tight.
The key takeaway from this report is the understanding that initial claims dropped back close to the lowest levels on record, which will contribute to a belief that the labor market remains tight. The narrowing in the deficit was a function of exports (-$0.4 billion) declining less than imports (-$4.3 billion).
The key takeaway from the report, however, is that a decline in both exports and imports for the second straight month is not a hallmark of a global economy running strong.
The Factory Orders report for October increased 0.3% (Briefing.com consensus +0.3%), and the September reading was revised to -0.3% (from -0.6%).

Looking ahead, investors will receive the following reports on Friday: the Employment Situation Report for November, the preliminary University of Michigan Index of Consumer Sentiment for December, Wholesale Inventories for October, and Consumer Credit for October.

Nasdaq Composite +29.2% YTD
S&P 500 +24.4% YTD
Russell 2000 +19.8% YTD
Dow Jones Industrial Average +18.7% YTD

Market Snapshot
Dow 27677.70 +28.01 (0.10%)
Nasdaq 8570.70 +4.03 (0.05%)
SP 500 3117.43 +4.67 (0.15%)
10-yr Note -2/32 1.802
NYSE Adv 1551 Dec 1329 Vol 787.0 mln
Nasdaq Adv 1488 Dec 1474 Vol 2.0 bln

Industry Watch
Strong: Materials, Information Technology, Communication Services
Weak: Energy, Consumer Discretionary, Consumer Staples

Moving the Market

-- Stock market ekes out gains in front of employment report tomorrow

-- China says it has maintained close contact with the U.S.; Treasury Secretary Mnuchin says trade talks are on track

-- Relative weakness in the energy space

-- Apple (AAPL), Nike (NKE) gain on positive-minded analyst recommendations

WTI crude settles little changed
05-Dec-19 15:30 ET
Dow +37.89 at 27687.58, Nasdaq +3.88 at 8570.55, S&P +4.69 at 3117.45

[BRIEFING.COM] The S&P 500 is up 0.2% after seeing a brief dip into negative territory earlier. That dip came after The Wall Street Journal reported that the U.S. and China are at odds about the value of farm good purchases.

One last look at the S&P 500 sectors shows the materials (+0.7%), financials (+0.4%), and information technology (+0.4%) sectors leading the advance. Conversely, the energy sector (-0.4%) remains today's laggard.

WTI crude settled little changed at $58.45/bbl. For the week, the commodity is still up 6%.

[ReturntoSender]

Stocks rally to end the week on strong jobs report
06-Dec-19 16:15 ET
Dow +337.27 at 28014.97, Nasdaq +85.83 at 8656.53, S&P +28.48 at 3145.91

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

[BRIEFING.COM] U.S. stocks rallied on Friday after the employment report for November showed a stronger-than-expected labor market. The S&P 500 rose 0.9%, which was slightly less than the gains in the Dow Jones Industrial Average (+1.2%), Nasdaq Composite (+1.0%), and Russell 2000 (+1.2%).

The headline nonfarm payrolls figure increased by 266,000 (Briefing.com consensus of 182,000), which blew past many of the estimates on Wall Street. Other key figures included the unemployment rate declining to 3.5% (Briefing.com consensus 3.6%) from 3.6% in October and average hourly earnings increasing 0.2% (Briefing.com consensus 0.3%).

Supporting risk sentiment was a better-than-expected preliminary consumer sentiment reading for December and an announcement from China that it started to exempt some U.S. agricultural purchases from tariffs. Altogether, the news reinforced a positive economic outlook with the Fed presumably on hold, the state of the consumer in good shape, and the trade situation seemingly improving.

It was no surprise, then, to see a cyclically-charged rally. The energy sector (+2.0%) led the advance amid some key OPEC+ news that contributed to higher oil prices ($59.20, +0.75, +1.3%). The oil producers agreed to cut production by 500,000 barrels per day until March, with Saudi Arabia also offering up to an additional 400,000 barrel cut of its own.

The rate-sensitive utilities sector (-0.2%) struggled during the day, largely due to the increase in Treasury yields that resulted from the jobs report waning demand for bonds. The 2-yr yield increased four basis points to 1.63%, and the 10-yr yield increased five basis points to 1.84%. The U.S. Dollar Index increased 0.3% to 97.68.

In corporate news, Goldman Sachs (GS 224.61, +7.47, +3.4%) outperformed after Bloomberg reported that the bank could settle its 1MDB scandal for less than $2 billion, which would also be less than expected. Ulta Beauty (ULTA 262.20, +26.18, +11.1%) climbed more than 10% after providing positive earnings results and upbeat earnings guidance.

Separately, Dow components Apple (AAPL 270.71, +5.13, +1.9%), JPMorgan Chase (JPM 135.04, +1.98, +1.5%), and Nike (NKE 97.00, +1.21, +1.3%) set new all-time highs on Friday.

Reviewing Friday's economic data, which featured the Employment Situation Report for November:

November nonfarm payrolls increased by 266,000 (Briefing.com consensus 182,000); private sector payrolls increased by 254,000 (Briefing.com consensus 175,000); the unemployment rate was 3.5% (Briefing.com consensus 3.6%), versus 3.6% in October; average hourly earnings were up 0.2% (Briefing.com consensus +0.3%) after increasing an upwardly revised 0.4% (from 0.2%) in October.
The key takeaway, from the spike in nonfarm payrolls to the drop in the unemployment rate to the increase in wages, is that it was a very encouraging report for the U.S. economic outlook.
The preliminary December reading for the University of Michigan Index of Consumer Sentiment rose to 99.2 from 96.8 in November, hitting the upper end of the range it has been in since the beginning of 2017.
The key takeaway from the report is that it bodes well for the consumer spending outlook, as rising levels of consumer sentiment pair nicely with income gains to lend confidence to increased spending activity.
Wholesale inventories increased 0.1% m/m in October (Briefing.com consensus +0.2%), on top of a downwardly revised 0.7% decline (from -0.4%) in September, which was the largest decline since February 2016. Wholesale sales were down 0.7% in October after declining 0.1% in September.
The key takeaway from the report is that it could prove difficult for wholesalers to gain pricing power given that inventory growth remains well ahead of sales growth on a yr/yr basis.
Consumer credit increased by $18.90 bln in October (Briefing.com consensus $17.30 bln) after increasing an upwardly revised $9.60 bln (from $9.50 bln) in September.
The key takeaway from the report is that the October increase was fairly evenly distributed between nonrevolving credit like student or auto loans and revolving credit like credit cards.

Investors will not receive any notable economic data on Monday.

Nasdaq Composite +30.5% YTD
S&P 500 +25.5% YTD
Russell 2000 +21.2% YTD
Dow Jones Industrial Average +20.1% YTD

Market Snapshot
Dow 28014.97 +337.27 (1.22%)
Nasdaq 8656.53 +85.83 (1.00%)
SP 500 3145.91 +28.48 (0.91%)
10-yr Note -3/32 1.841
NYSE Adv 2135 Dec 743 Vol 850.4 mln
Nasdaq Adv 2209 Dec 891 Vol 2.0 bln

Industry Watch
Strong: Energy, Financials, Industrials, Information Technology
Weak: Utilities

Moving the Market

-- Stocks rally after the November employment report exceeded expectations

-- China announced that it started to exempt some U.S. agricultural purchases from tariffs; consumer sentiment picks up in December

-- Cyclical sectors outperformed, Treasuries declined

Consumer credit increases more than expected
06-Dec-19 15:25 ET
Dow +330.93 at 28008.63, Nasdaq +85.45 at 8656.15, S&P +29.47 at 3146.90

[BRIEFING.COM] The S&P 500 is up 1.0%, while the Russell 2000 is up 1.2%.

Consumer credit increased by $18.90 bln in October (Briefing.com consensus $17.30 bln) after increasing an upwardly revised $9.60 bln (from $9.50 bln) in September.

WTI crude settled up $0.75 (+1.3%) to $59.20/bbl after OPEC+ agreed to cut production by 500,000 barrels per day in the first quarter of 2020.
Tesla's price target raised to $500 at Morgan Stanley
06-Dec-19 15:00 ET
Dow +336.45 at 28014.15, Nasdaq +87.48 at 8658.18, S&P +29.50 at 3146.93

[BRIEFING.COM] The S&P 500 is up 1.0% and is on pace to end the week higher. The benchmark index is holding a modest 0.2% weekly gain.

Shares of Tesla (TSLA 336.77, +6.40, +1.9%) are seeing increased demand today after the stock's price target was raised to $500 from $440 at Morgan Stanley. On a related note, China's industry ministry will recommend subsidies for Tesla's Model 3 cars that are built in China, according to Reuters.

The earnings calendar will be pretty light next week, but it will include Costco (COST 294.98, +1.88, +0.6%) and Oracle (ORCL 54.96, +0.28, +0.5%) next Thursday.
Ulta Beauty is today's biggest gainer, while Ball Corp lags
06-Dec-19 14:25 ET
Dow +331.64 at 28009.34, Nasdaq +88.35 at 8659.05, S&P +30.16 at 3147.59

[BRIEFING.COM] The S&P 500 is down slightly from session highs with a gain of 0.9%.

Ulta Beauty (ULTA 266.91, +30.89, +13.1%) remains the biggest gainer in the S&P 500, while Ball Corp. (BLL 63.17, -2.97, -4.5%) is today's biggest laggard on no confirmed news driver. Energy stocks, as a group, are among the best performers.

Small-caps are also having a great day, with the Russell 2000 up 1.2%. For the week, the index is up 0.6%, which is better than its large-cap peers.
Gold and silver lose ground
06-Dec-19 13:55 ET
Dow +333.02 at 28010.72, Nasdaq +87.12 at 8657.82, S&P +31.23 at 3148.66

[BRIEFING.COM] The S&P 500 continues to trade higher by 1.0%.

Gold futures settled down $17.60 (-1.2%) at $1464.9/oz, while silver futures settled today's session $0.44 lower (-2.6%) at $16.61/oz. The strong jobs report and upbeat trade news today has underpinned the risk-on mindset that has bypassed interest for precious metals.

The U.S. Dollar Index is currently up 0.3% to 97.74.

[ReturntoSender]

S&P 500 closes at lows in modest decline
09-Dec-19 16:15 ET
Dow -105.46 at 27909.51, Nasdaq -34.70 at 8621.83, S&P -9.95 at 3135.96

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

[BRIEFING.COM] The S&P 500 lost 0.3% on Monday, closing at session lows amid a lack of buying conviction. The Dow Jones Industrial Average declined 0.4%, the Nasdaq Composite declined 0.4%, and the Russell 2000 declined 0.3%.

The lack of conviction was understandable considering that there was no reported progress on the U.S.-China trade front ahead of the Dec. 15 tariffs, which would presumably upset the market if they went into effect without a Phase One deal. There is still some time left this week to strike a deal, but the trade uncertainty helped keep risk sentiment in check.

Losses were made most prevalent in the S&P 500 health care (-0.7%), utilities (-0.5%), and information technology (-0.5%) sectors. The latter was pressured by Apple (AAPL 266.92, -3.79, -1.4%), which pulled back from record territory. Conversely, the consumer staples (+0.2%), real estate (+0.1%), and consumer discretionary (+0.1%) sectors finished higher.

Other key events this week will include policy decisions from both the Fed and ECB, a UK election, and reports on consumer prices and retail sales for November. Strikingly, the CBOE Volatility Index spiked 16.5% to 15.86, as demand for downside protection increased in anticipation for any disappoints.

Corporate news didn't move the needle, but M&A activity and analyst recommendations did contribute to some notable stock reactions.

In the biotech space, ArQule (ARQL 19.71, +10.04, +103.9%) agreed to be acquired by Merck (MRK 88.72, -0.13, -0.2%) for about $2.7 billion in cash. Synthorx (THOR 67.71, +42.68, +170.5%) agreed to be acquired by French company Sanofi (SNY 45.30, -0.73, -1.6%) for about $2.4 billion in cash. Evidently, both deals came at handsome premiums.

Apple suppliers Qorvo (QRVO 108.44, +1.82, +1.7%) and Skyworks Solutions (SWKS 103.23, +1.87, +1.8%) outperformed after Bank of America/Merrill Lynch "double upgraded" the stocks to Buy from Underperform due to their 5G growth potential.

U.S. Treasuries finished the session relatively unchanged. The 2-yr yield declined one basis point to 1.62%, and the 10-yr yield declined one basis point to 1.83%. The U.S. Dollar Index declined 0.1% to 97.64. WTI crude declined 0.4%, or $0.23, to $58.97/bbl.

Investors did not receive any economic data on Monday. Looking ahead, investors will receive the NFIB Small Business Optimism Index for November and the revised Q3 readings for Productivity and Unit Labor Costs on Tuesday.

Nasdaq Composite +29.9% YTD
S&P 500 +25.1% YTD
Russell 2000 +20.9% YTD
Dow Jones Industrial Average +19.6% YTD

Market Snapshot
Dow 27909.51 -105.46 (-0.38%)
Nasdaq 8621.83 -34.70 (-0.40%)
SP 500 3135.96 -9.95 (-0.32%)
10-yr Note +1/32 1.830
NYSE Adv 1488 Dec 1394 Vol 860.6 mln
Nasdaq Adv 1351 Dec 1768 Vol 2.0 bln

Industry Watch
Strong: Consumer Staples, Real Estate, Consumer Discretionary
Weak: Health Care, Information Technology, Utilities

Moving the Market

-- Stock market closes at lows in modest decline

-- Lack of buying conviction ahead of key events, including Dec. 15 tariffs

-- M&A activity in the biotech space, notable analyst recommendations

-- CBOE Volatility Index spikes 16%

WTI crude slips after last week's big gain
09-Dec-19 15:20 ET
Dow -59.23 at 27955.74, Nasdaq -17.65 at 8638.88, S&P -4.84 at 3141.07

[BRIEFING.COM] The S&P 500 is on pace to close the session little changed as it trades lower by 0.2%.

Reviewing the S&P 500 sectors shows utilities (-0.5%), health care (-0.4%), and information technology (-0.3%) continuing to drag on the broader market, while the consumer staples (+0.3%), consumer discretionary (+0.3%), and real estate (+0.2%) sectors continue to hold modest gains.

WTI crude settled down $0.23 (-0.4%) to $58.97/bbl in a marginal pullback from last week's 7% gain.

[ReturntoSender]

Stocks gain as Fed keeps rates unchanged and signals no rate hike in 2020
11-Dec-19 16:25 ET
Dow +29.58 at 27911.21, Nasdaq +37.87 at 8654.06, S&P +9.11 at 3141.63

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

[BRIEFING.COM] The S&P 500 increased 0.3% on Wednesday, as investors remained comforted by the few surprises in the FOMC's latest policy directive and Fed Chair Powell's press conference. The Nasdaq Composite (+0.4%) pulled out ahead, while the Dow Jones Industrial Average (+0.1%) and Russell 2000 (unch) finished closer to their flat lines.

The FOMC voted unanimously to leave the target range for the fed funds rate at 1.50-1.75%, as was widely expected. Thus, the positive reaction in the market may have been more attributed to the median projection for the policy rate in 2020 signaling no change. Fed Chair Powell for his part reiterated he would need to see a persistent and significant rise in inflation to hike rates.

The broader advance was kept in check, though, with the S&P 500 materials (+0.7%), information technology (+0.7%), and industrials (+0.7%) sectors finishing atop the standings. The real estate (-0.8%), financials (-0.2%), and energy (-0.2%) sectors finished in negative territory.

Generally, today's Fed news was viewed favorably, but several upcoming events likely helped restrain risk sentiment. Coming up are an ECB policy decision and UK election on Thursday and another round of tariffs on Chinese imports on Sunday, which may or may not happen. The trade uncertainty presumably had more influence on sentiment.

Strikingly, the trade-sensitive Philadelphia Semiconductor Index (+2.2%) posted an outsized gain. All 30 components finished higher, as the space likely drew support from the positive results and upbeat guidance from Photronics (PLAB 15.13, +2.56, +20.4%).

On the other hand, Dow components Home Depot (HD 212.00, -3.90, -1.8%) and Chevron (CVX 116.22, -1.67, -1.4%) weighed on the price-weighted index amid some negative news. Home Depot provided preliminary FY20 sales guidance that was below expectations. Chevron announced an $11 billion write-down of its gas assets in the fourth quarter.

U.S. Treasuries, which were already trending higher before the FOMC announcement, extended gains during Mr. Powell's press conference. Both the 2-yr yield and 10-yr yield declined four basis points each to 1.61% and 1.79%, respectively, with investors presumably unconcerned about inflation. The U.S. Dollar Index fell 0.3% to 97.10. WTI crude fell 0.8% (-0.47) to $58.74/bbl.

Reviewing Wednesday's economic data, which included the Consumer Price Index for November, the Treasury Budget for November, and the weekly MBA Mortgage Applications Index:

The Consumer Price Index (CPI) increased 0.3% month-over-month in November (Briefing.com consensus +0.2%) and core CPI, which excludes food and energy, increased 0.2%, as expected, for the second straight month.
The key takeaway from the report is that there was an uptick in prices across most key categories. That uptick is something the Fed wants to see at this juncture and it won't be quick to stamp it out with a rate hike, particularly since the Fed's favorite inflation gauge -- the PCE Price Index -- is still running comfortably below the longer-run 2.0% inflation target.
The Treasury Budget for November showed a deficit of $208.8 billion versus a deficit of $204.9 billion in the same period a year ago. This budget data is not seasonally adjusted, so the November deficit cannot be compared to the deficit of $134.5 billion for October.
The budget deficit over the last 12 months is $1.022 trillion versus $1.018 trillion in October. The fiscal year-to-date deficit is $343.3 billion versus $305.4 for the same period a year ago.
The weekly MBA Mortgage Applications Index increased 3.8% following a 9.2% drop in the prior week.

Looking ahead, investors will receive the Producer Price Index for November and the weekly Initial and Continuing Claims report on Thursday.

Nasdaq Composite +30.4% YTD
S&P 500 +25.3% YTD
Russell 2000 +21.0% YTD
Dow Jones Industrial Average +19.7% YTD

Market Snapshot
Dow 27911.21 +29.58 (0.11%)
Nasdaq 8654.06 +37.87 (0.44%)
SP 500 3141.63 +9.11 (0.29%)
10-yr Note -2/32 1.798
NYSE Adv 1839 Dec 1038 Vol 753.2 mln
Nasdaq Adv 1731 Dec 1359 Vol 2.0 bln

Industry Watch
Strong: Materials, Information Technology, Industrials
Weak: Real Estate, Energy, Financials

Moving the Market

-- FOMC keeps fed funds rate unchanged as expected, signals no rate hike in 2020

-- Relative strength in the trade-sensitive areas of the market: semiconductors, industrials, materials, and technology

-- Home Depot (HD), and Chevron (CVX) drag on the Dow

WTI crude posts decline as inventories rise more than expected
11-Dec-19 15:25 ET
Dow +13.07 at 27894.70, Nasdaq +37.39 at 8653.58, S&P +8.74 at 3141.26

[BRIEFING.COM] The S&P 500 currently trades higher by 0.3% at the conclusion of Fed Chair Powell's press conference, which was a nonevent like the FOMC decision.

One last look at the S&P 500 sectors shows eight of the 11 groups trading in positive territory, led by the materials (+0.7%) and information technology (+0.7%) sectors. The real estate (-0.8%), financials (-0.2%), and energy (-0.1%) sectors trade lower.

WTI crude fell $0.47 (-0.8%) to $58.74/bbl amid some bearish inventory data out of the EIA.

[ReturntoSender]

S&P 500, Nasdaq close at record highs on trade deal optimism
12-Dec-19 16:20 ET
Dow +220.75 at 28131.96, Nasdaq +63.27 at 8717.33, S&P +26.94 at 3168.57

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

[BRIEFING.COM] The S&P 500 (+0.9%) and Nasdaq Composite (+0.7%) closed at record highs on Thursday, as investors reacted positively to news that the U.S. and China are on the verge of signing a Phase One trade deal. The Dow Jones Industrial Average (+0.8%) and Russell 2000 (+0.8%) both rose 0.8%.

The day started with President Trump tweeting that a trade deal was close and The Wall Street Journal reporting that the U.S. offered to reduce existing tariffs and cancel the Dec. 15 tariffs. The news propelled all 11 S&P 500 sectors higher, and the large-cap indices to all-time highs, before skepticism and caution reined in some gains.

Then, as the broader market drifted modestly higher during the afternoon, Bloomberg reported that a deal in principle was reached and was awaiting President Trump's signature. A deal would include rolling back some tariffs and delaying the Dec. 15 tariffs in exchange for China to purchase more U.S. farm goods. Stocks rallied back toward session highs while Treasuries continued to sell-off in a risk-on trade.

The S&P 500 cyclical sectors led the advance, with the energy sector (+2.0%) finding additional support in higher oil prices ($59.18, +0.44, +0.8%) and the financials sector (+2.0%) benefiting from some curve-steepening activity. Trade-sensitive stocks like Wynn Resorts (WYNN 132.27, +11.44, +9.5%) and those in the Philadelphia Semiconductor Index (+2.7%) also outperformed.

The 2-yr yield rose six basis points to 1.67%, and the 10-yr yield rose 11 basis points to 1.90%. The U.S. Dollar Index increased 0.1% to 97.29.

This sharp increase in yields, however, did undercut the real estate (-1.5%) and utilities (-0.5%) sectors. The communication services sector (unch) was pressured by shares of Facebook (FB 196.75, -5.51, -2.7%) on news that the FTC is considering a preliminary injunction on the company over antitrust concerns.

In other corporate news, Delta Air Lines (DAL 56.69, +1.61, +2.9%) pleased investors with a reassuring FY20 forecast. General Electric (GE 11.44, +0.47, +4.3%) and FedEx (FDX 164.89, +5.81, +3.7%) benefited from analyst upgrades.

Overseas, it was election day in the UK, but polls remained opened by the close of U.S. markets. The European Central Bank left rates unchanged on Thursday, as was expected, while ECB President Lagarde said she was seeing initial signs of recovery.

Reviewing Thursday's economic data, which included the Producer Price Index for November and the weekly Initial and Continuing Claims report:

The Producer Price Index for final demand (PPI) was unchanged month-over-month in November (Briefing.com consensus 0.2%) while core PPI, which excludes food and energy, surprisingly declined 0.2% (Briefing.com consensus 0.2%). That left the year-over-year increases at 1.1% and 1.3%, respectively, versus 1.1% and 1.6% in October.
The key takeaway from this report is that it speaks to why the Fed is choosing to remain patient in raising the fed funds rate, as it reflects the disinflation (and low inflation expectations) trend Fed Chair Powell does not want to see growing deeper roots.
Initial claims for the week ending December 7 rose by 49,000 to 252,000 (Briefing.com consensus 212,000). That is the highest level of initial claims since September 30, 2017. Continuing claims for the week ending November 30 decreased by 31,000 to 1.667 million.
The key takeaway from the report is that the latest figure is outside the range of what has become typical reporting for this series, so it may be discounted as aberrant; however, the slowly rising uptick in the four-week moving average for initial claims implies that we may have seen the bottom for this cycle.

Looking ahead, investors will receive the Retail Sales report for November, Export and Import Prices for November, and Business Inventories for October on Friday.

Nasdaq Composite +31.4% YTD
S&P 500 +26.4% YTD
Russell 2000 +22.0% YTD
Dow Jones Industrial Average +20.6% YTD

Market Snapshot
Dow 28131.96 +220.75 (0.79%)
Nasdaq 8717.33 +63.27 (0.73%)
SP 500 3168.57 +26.94 (0.86%)
10-yr Note -30/32 1.891
NYSE Adv 1772 Dec 1086 Vol 892.6 mln
Nasdaq Adv 1993 Dec 1175 Vol 2.1 bln

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

Moving the Market

-- S&P 500, Nasdaq close at record highs on trade deal optimism

-- Report that a trade deal has been reached in principle and is awaiting President Trump's signature

-- Cyclical sectors outperformed and Treasuries sold off

-- Strength in trade-sensitive areas of the market

[ReturntoSender]

Wall Street closes little changed after Phase One deal reached
13-Dec-19 16:15 ET
Dow +3.33 at 28135.29, Nasdaq +17.56 at 8734.89, S&P +0.23 at 3168.80

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

[BRIEFING.COM] The stock market closed little changed on Friday after the U.S. and China finally reached a Phase One trade deal that prevented the Dec. 15 tariffs from taking effect. The S&P 500 (+0.01%) and Nasdaq Composite (+0.2%) eked out closing records. The Dow Jones Industrial Average finished flat, while the Russell 2000 declined 0.4%.

Specifically, the tariff rate on $250 billion of Chinese imports will remain at 25%, the tariff rate on $120 billion of Chinese imports will be cut to 7.5% from 15%, and China will try to purchase $40-50 billion in U.S. farm goods, although this latter part has yet to be solidified. A deal will reportedly be signed in early January.

President Trump said Phase Two discussions will begin immediately, which should focus on issues pertaining to forced technology transfers and IP rights, according to NEC Director Kudlow. The market's muted reaction to the partial deal was presumably attributed to it already being priced into the market's record run. Some skepticism about the limited details and China's commitment lingered.

The S&P 500 energy (-0.9%), materials (-0.8%), and financials (-0.5%) sectors did some pulling back, while the utilities (+0.8%) and information technology (+0.6%) sectors outperformed. Shares of Apple (AAPL 275.15, +3.69, +1.4%) climbed further into record territory.

The Philadelphia Semiconductor Index (-0.6%) was pressured by a negative reaction to Broadcom's (AVGO 315.42, -12.38, -3.8%) earnings report. Oracle (ORCL 54.51, -1.96, -3.5%) and Costco (COST 291.87, -5.47, -1.8%) also had disappointing earnings-based reactions, while Adobe (ADBE 317.94, +11.98, +3.9%) outperformed following its results.

U.S. Treasuries reversed the bulk of yesterday's sell-off, driving yields noticeably lower across the curve. The 2-yr yield fell seven basis points to 1.60%, and the 10-yr yield fell eight basis points to 1.82%. The U.S. Dollar Index declined 0.2% to 97.20. WTI crude rose 1.6%, or $0.93, to $60.11/bbl.

Separately, UK Prime Minister Boris Johnson's Conservative Party easily won the general election, paving the way for a Brexit by the end of January. UK's FTSE rose 1.1%, and the British pound rallied 1.4% against the dollar to 1.3339.

Reviewing Friday's economic data, which included the Retail Sales report for November, Export and Import Prices for November, and Business Inventories for October:

Total retail sales increased 0.2% m/m in November (Briefing.com consensus 0.5%) following an upwardly revised 0.4% increase (from 0.3%) in October. Excluding autos, retail sales rose 0.1% (Briefing.com consensus 0.4%) after an upwardly revised 0.3% increase (from 0.2%) in October.
The report denotes softer levels of discretionary spending activity in November, but the key takeaway is that there was still growth, which is consistent with the market's view that the U.S. consumer has the fundamental backing to keep spending.
Import prices for November were up 0.2%. Excluding fuel, they were down 0.1%, marking the fourth straight decline. Export prices were up 0.2%. Excluding agricultural products, they were flat.
The key takeaway from the report is that it points to an indolent inflation backdrop.
Total business inventories increased 0.2% month-over-month in October (Briefing.com consensus +0.2%) after a downwardly revised 0.1% decline (from 0.0%) in September. Total business sales were down 0.1% following a downwardly revised 0.4% decline (from -0.2%) in September.

Looking ahead, investors will receive the Empire State Manufacturing Survey for December, the NAHB Housing Market Index for December, and Net Long-Term TIC Flows on Monday.

Nasdaq Composite +31.6% YTD
S&P 500 +26.4% YTD
Russell 2000 +21.5% YTD
Dow Jones Industrial Average +20.6% YTD

Market Snapshot
Dow 28135.29 +3.33 (0.01%)
Nasdaq 8734.89 +17.56 (0.20%)
SP 500 3168.80 +0.23 (0.01%)
10-yr Note +29/32 1.820
NYSE Adv 1489 Dec 1358 Vol 844.5 mln
Nasdaq Adv 1553 Dec 1593 Vol 2.1 bln

Industry Watch
Strong: Utilities, Information Technology
Weak: Energy, Materials, Financials

Moving the Market

-- Market closes little changed after Phase One deal confirmed and Dec. 15 tariffs avoided

-- 25% tariff rate will remain on $250 billion of Chinese imports, a 15% tariff rate on $120 billion of Chinese imports will be cut to 7.5%

-- China will purchase additional amounts of U.S. farm goods; reportedly between $40-50 billion over a two-year period

-- Treasury yields decline noticeably to undo yesterday's move

WTI crude rises on trade deal
13-Dec-19 15:20 ET
Dow +8.73 at 28140.69, Nasdaq +16.06 at 8733.39, S&P +0.48 at 3169.05

[BRIEFING.COM] The S&P 500 remains unchanged as it has for more than three hours.

One last look inside the S&P 500 shows mixed results. The energy (-0.8%) and materials (-0.7%) sectors underperform, while the utilities (+0.9%) and information technology (+0.6%) sectors outperform. The tech group has benefited from a 1.2% gain in Apple (AAPL 274.73, +3.27).

WTI crude settled up $0.93 (+1.6%) to 60.11/bbl.

[ReturntoSender]

Stock market extends record run, S&P 500 hits 3200
19-Dec-19 16:10 ET
Dow +137.68 at 28376.87, Nasdaq +59.48 at 8887.23, S&P +14.23 at 3205.37

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

[BRIEFING.COM] The S&P 500 closed above the 3200 level for the first time on Thursday in a modest 0.4% advance. The Nasdaq Composite (+0.7%) and Dow Jones Industrial Average (+0.5%) also extended their reach into record territory. The Russell increased 0.3%.

Starting with the macro headlines, the historical impeachment vote in the House was widely discussed, but investors dismissed the news as having any consequences for the market. Staying in Washington, Treasury Secretary Mnuchin said the USMCA deal could add 0.5% to GDP, which may have supported the market's already positive economic outlook.

Today's session, though, appeared to just be a continuation of the market's bullish bias. Nine of the 11 S&P 500 sectors finished in positive territory, with the real estate sector (+1.1%) continuing to benefit from a bargain-hunting mindset. Conversely, the energy (-0.1%) and utilities (-0.1%) sectors finished lower.

Micron (MU 54.53, +1.49, +2.8%), Canagra Brands (CAG 33.66, +4.61, +15.9%), and Darden Restaurants (DRI 109.05, -7.26, -6.2%) all beat profit estimates, but the latter disappointed investors with its same-restaurant sales growth.

Cisco Systems (CSCO 47.88, +1.24, +2.7%) and Johnson & Johnson (JNJ 145.35, +2.16, +1.5%), two stocks that have underperformed this year, were both upgraded to Overweight from Equal Weight at Barclays.

In corporate deals, Match Group (MTCH 77.35, +6.11, +8.6%) and InterActiveCorp (IAC 238.41, +17.20, +7.8%) agreed to separate. Live Nation (LYV 69.83, +5.88, +9.2%) reportedly reached a tentative settlement with the Department of Justice over its ticketing practices.

U.S. Treasuries edged higher, pushing yields slightly lower across the curve. The 2-yr and 10-yr yields both declined two basis points each to 1.60% and 1.91%, respectively. The U.S. Dollar Index finished little changed at 97.39. WTI crude rose 0.6% (+0.37%) to $61.30/bbl.

Reviewing Thursday's batch of economic data, which featured the Existing Home Sales report for November:

Existing home sales declined 1.7% m/m in November to a seasonally adjusted annual rate of 5.35 million units (Briefing.com consensus 5.45 million) from a downwardly revised 5.44 million (from 5.46 million) in October.
The key takeaway from the report is that home sales continue to be held back by the same forces: a lack of available supply and rising prices.
Initial claims for the week ending December 7 rose by 49,000 to 252,000 (Briefing.com consensus 212,000). That is the highest level of initial claims since September 30, 2017. Continuing claims for the week ending November 30 decreased by 31,000 to 1.667 million.
The key takeaway from the report is that the latest figure is outside the range of what has become typical reporting for this series, so it may be discounted as aberrant; however, the slowly rising uptick in the four-week moving average for initial claims implies that we may have seen the bottom for this cycle.
The Conference Board's Leading Economic Index (LEI) was unchanged in November (Briefing.com consensus +0.1%) following three straight monthly declines. October was revised to -0.2% from -0.1%.
The key takeaway from the report is the understanding that the LEI went negative (-0.2%) for the six-month period ending November versus growth of 0.3% over the previous six months.
The Philadelphia Fed Index for December came in at 0.3 (Briefing.com consensus 8.0), well below the 10.4 reading in November.
The current account deficit for the third quarter totaled $124.1 billion (Briefing.com consensus -$122.0 billion). The second quarter deficit was revised to $125.2 billion from $128.2 billion.

Looking ahead, investors will receive Personal Income and Spending for November, the third estimate for Q3 GDP, and the revised University of Michigan Index of Consumer Sentiment for December on Friday.

Nasdaq Composite +33.9% YTD
S&P 500 +27.9% YTD
Russell 2000 +23.6% YTD
Dow Jones Industrial Average +21.7% YTD

Market Snapshot
Dow 28376.87 +137.68 (0.49%)
Nasdaq 8887.23 +59.48 (0.67%)
SP 500 3205.37 +14.23 (0.45%)
10-yr Note +1/32 1.916
NYSE Adv 1727 Dec 1144 Vol 971.8 mln
Nasdaq Adv 1836 Dec 1296 Vol 2.4 bln

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

Moving the Market

-- S&P 500 closes above 3200 in modest advance

-- Continuation trade of the market's bullish bias; relative strength in the real estate sector

-- Impeachment remained a nonevent

WTI crude settles above $61
19-Dec-19 15:25 ET
Dow +113.00 at 28352.19, Nasdaq +51.41 at 8879.16, S&P +11.94 at 3203.08

[BRIEFING.COM] The S&P 500 is on pace to close at another record high, as it trades higher by 0.4%.

One last look inside the S&P 500 sectors shows real estate (+1.0%) and communication services (+0.7%) leading the advance, while the energy (-0.1%), utilities (-0.1%), and financials (-0.1%) sectors hold modest losses.

WTI crude settled up $0.37 (+0.6%) to $61.30/bbl.

[ReturntoSender]

Stock market rally extends into 2020, China announces stimulus
02-Jan-20 16:25 ET
Dow +330.36 at 28868.71, Nasdaq +119.58 at 9092.21, S&P +27.07 at 3257.85

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

[BRIEFING.COM] The large-cap indices climbed to new highs on this first trading day of 2020, as fresh stimulus out of China helped ignite a global equity rally. The Nasdaq Composite rose 1.3%, and the S&P 500 (+0.8%) and Dow Jones Industrial Average (+1.2%) followed suit. The Russell 2000 (-0.1%) finished lower.

China started the new year by announcing it will cut the reserve requirement ratio for small and large banks by 50 basis points on Jan. 6, providing about $115 billion in additional liquidity that can be lent out. China's Shanghai Composite rose 1.2%, and Europe Stoxx 600 rose 0.9% amid a view that the stimulus action could have global ripple effects.

In the U.S, the S&P 500 industrials sector (+1.8%) drew support from General Electric (GE 11.93, +0.77, +6.9%), and the Philadelphia Semiconductor Index (+2.1%) pushed to new highs amid strength in AMD (AMD 49.10, +3.24, +7.1%), which had its price target raised $58 from $40 at Nomura.

The mega-cap stocks in the S&P 500 information technology (+1.7%), communication services (+1.3%), and consumer discretionary (+1.3%) sectors continued to outperform, too. Apple (AAPL 300.35, +6.70, +2.3%), Amazon (AMZN 1898.01, +50.17, +2.7%), Alphabet (GOOG 1367.37, +30.35, +2.3%), and Facebook (FB 209.78, +4.53, +2.2%) each climbed more than 2.0%.

Today was undoubtedly risk-on, but the weakness in the S&P 500 utilities (-1.4%), real estate (-1.3%), materials (-1.2%), and consumer staples (-0.8%) sectors, and the underperformance in the small-cap and even the mid-cap stocks, somewhat limited this sentiment to the market's most widely-held names.

The advance in longer-dated U.S. Treasuries, which caused some curve-flattening activity, was another conflicting occurrence. The 2-yr yield was unchanged at 1.57%, and the 10-yr yield declined four basis points to 1.88%. The U.S. Dollar Index rose 0.4% to 96.81. WTI crude increased 0.1% (+0.05) to $61.15/bbl.

Two possible explanations for the interest in Treasuries included 1) the relatively soft manufacturing data out of China and Europe and 2) a view that the stock market was overbought and due for a pullback, thus leading to some defensive positioning in Treasuries. The latter view was not fully supported by the 9.5% drop in the CBOE Volatility Index (12.47, -1.31).

Thursday's economic data was limited to the weekly Initial and Continuing Claims report:

Initial claims for the week ending December 28 decreased by 2,000 to 222,000 (Briefing.com consensus 225,000) while continuing claims for the week ending December 21 increased by 5,000 to 1.728 million.
These headline results were not that intriguing, yet the key takeaway from the report -- and what is intriguing -- is that the four-week moving average for initial claims, which are a leading indicator, increased by 4,750 to 233,250. That is the highest four-week moving average since January 27, 2018.

Looking ahead, investors will receive the ISM Manufacturing Index for December, the FOMC Minutes from the Dec. 10-11 meeting, the Construction Spending report for November, and auto and truck sales throughout the day on Friday.

Nasdaq Composite +1.3% YTD
Dow Jones Industrial Average +1.2% YTD
S&P 500 +0.8% YTD
Russell 2000 -0.1% YTD

Market Snapshot
Dow 28868.71 +330.36 (1.16%)
Nasdaq 9092.21 +119.58 (1.33%)
SP 500 3257.85 +27.07 (0.84%)
10-yr Note +4/32 1.874
NYSE Adv 1745 Dec 1101 Vol 863.2 mln
Nasdaq Adv 1881 Dec 1313 Vol 2.2 bln

Industry Watch
Strong: Industrials, Information Technology, Communication Services
Weak: Utilities, Real Estate, Materials, Consumer Staples

Moving the Market

-- Stock market extends rally into 2020, small-caps underperformed

-- China announced a 50-bps cut to the reserve requirement ratio for small and large banks

-- Longer-dated U.S. Treasuries gained, causing some curve-flattening trade despite bullish sentiment in stocks

WTI crude settles little changed
02-Jan-20 15:25 ET
Dow +239.12 at 28777.47, Nasdaq +96.06 at 9068.69, S&P +18.12 at 3248.90

[BRIEFING.COM] The S&P 500 continues to trade near session highs with a 0.6% gain. Small-caps continue to underperform, with the Russell 2000 down 0.5%. Volume has been heavy than usual at the Nasdaq today.

One last look at the S&P 500 sectors shows the information technology (+1.4%), industrials (+1.1%), and communication services (+1.1%) sectors up more than 1.0%. On the other end, the real estate (-1.4%), utilities (-1.4%), and materials (-1.3%) sectors are down more than 1.0%.

WTI crude ticked up $0.05 (+0.1%) to $61.15/bbl.

[ReturntoSender]

S&P 500 closes slightly lower, semiconductors gain
07-Jan-20 16:15 ET
Dow -119.70 at 28583.59, Nasdaq -2.88 at 9068.61, S&P -9.10 at 3237.18

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

[BRIEFING.COM] The S&P 500 wavered with modest losses on Tuesday, losing 0.3% as the current geopolitical uncertainty helped restrain risk sentiment. The Dow Jones Industrial Average (-0.4%) and Russell 2000 (-0.3%) posted comparable declines, while the Nasdaq Composite (unch) fared better amid strength in the semiconductor space.

Iran stepped up its retaliatory threats against the U.S., but the lack of follow-through reassured investors that the situation currently presents little threat to the U.S. economy. Similarly, a pullback in oil prices ($62.68/bbl, -0.58, -0.9%) reflected skepticism that the situation would meaningfully disrupt production.

Within the stock market, all 11 S&P 500 sectors still finished lower in a lackluster session. The real estate sector (-1.2%) was today's weakest performer, followed by the consumer staples (-0.7%) and financials (-0.7%) sectors. A fade into the close pushed the communication services (-0.04%), information technology (-0.1%), and industrials (-0.1%) sectors into negative territory.

Semiconductor stocks were among today's strongest performers after Microchip (MCHP 110.69, +6.96, +6.7%) raised its Q3 revenue guidance and Micron (MU 58.27, +4.71, +8.8%) was upgraded to Outperform from Market Perform at Cowen. The Philadelphia Semiconductor Index rose 1.8%.

Other notable gainers included Apache (APA 32.51, +6.87, +26.8%) after it announced a significant oil discovery off the shore of Suriname and Tesla (TSLA 469.06, +17.52, +3.9%) after it officially opened its Gigafactory 3 in Shanghai.

U.S. Treasuries finished the tight-ranged session little changed. The 2-yr yield remained at 1.54%, the 10-yr yield increased two basis points to 1.83%. The U.S. Dollar Index increased 0.4% to 97.02.

Reviewing Tuesday's economic data, which included the ISM Non-Manufacturing Index for December, the Trade Balance Report for November, and the Factory Orders report for November:

The ISM Non-Manufacturing Index for December registered a 55.0% reading (Briefing.com consensus 54.3%), up from 53.9% in November and the fastest pace since August 2019.
The key takeaway from the report is that it is not as encouraging as it appears at first blush. The pace of new orders, new export orders, and employment all slowed; meanwhile, the backlog of orders contracted at a faster pace than November.
Factory Orders declined 0.7% m/m in November (Briefing.com consensus -0.8%) following a downwardly revised 0.2% increase (from 0.3%) in October. Shipments were up 0.3% following a 0.1% increase in October.
The key takeaway from the report is that it reflects the soft conditions for the manufacturing sector. On a year-to-date basis, orders for durable goods were down 1.3% not seasonally adjusted while orders for nondurable goods were down 0.1%.
The trade deficit narrowed to $43.1 billion in November (Briefing.com consensus -$43.5 billion) from an upwardly revised $46.9 billion (from -$47.2 bln) in October.
The key takeaway from the report is that the real trade deficit of $75.25 billion left the fourth quarter average 9% below the third quarter average, which will be a positive input for Q4 GDP growth forecasts.

Looking ahead, investors will receive the ADP Employment Change Report for December, the Consumer Credit Report for November, and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +1.1% YTD
S&P 500 +0.2% YTD
Dow Jones Industrial Average +0.2% YTD
Russell 2000 -0.6% YTD

Market Snapshot
Dow 28583.59 -119.70 (-0.42%)
Nasdaq 9068.61 -2.88 (-0.03%)
SP 500 3237.18 -9.10 (-0.28%)
10-yr Note -2/32 1.826
NYSE Adv 1256 Dec 1624 Vol 792.2 mln
Nasdaq Adv 1449 Dec 1698 Vol 2.8 bln

Industry Watch
Strong: Communication Services, Information Technology
Weak: Real Estate, Consumer Staples, Financials

Moving the Market

-- Stock market closes slightly lower amid lingering geopolitical uncertainty

-- Semiconductor stocks outperformed

-- Oil prices pulled back

WTI crude gives back nearly 1%
07-Jan-20 15:30 ET
Dow -69.64 at 28633.65, Nasdaq +13.19 at 9084.68, S&P -3.75 at 3242.53

[BRIEFING.COM] The S&P 500 currently trades lower by 0.1%, while the Russell 2000 trades lower by 0.3%.

One last look inside the S&P 500 shows the real estate sector (-1.1%) down more than 1.0%, while the materials sector (+0.5%) is up at least 0.5%. The Philadelphia Semiconductor Index remains today's strongest-performing group with a gain of 2.1%.

WTI crude settled down $0.58 (-0.9%) to $62.68/bbl.

[ReturntoSender]

S&P 500, Nasdaq hit new highs in relief rally
08-Jan-20 16:15 ET
Dow +161.41 at 28745.00, Nasdaq +60.66 at 9129.27, S&P +15.87 at 3253.05

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

[BRIEFING.COM] The S&P 500 (+0.5%) set a new intraday high on Wednesday, as investors were relieved to hear that the situation in Iran may not escalate militarily beyond the actions taken by Iran last night. The Nasdaq Composite (+0.7%) closed at a record high, the Dow Jones Industrial Average gained 0.6%, and the Russell 2000 gained 0.3%. Stocks did fade into the close, though.

Iran fired more than a dozen ballistic missiles against U.S. and coalition forces in Iraq, which immediately sent equity futures down more than 1.5%. The reaction was short-lived upon details that it resulted in no American casualties and Tehran said it did not seek escalation or war.

As stocks wavered with modest gains after the open, President Trump told the nation in a press conference that he will be imposing additional sanctions on Iran, implicating that economic countermeasures will be favored over military ones. A mostly broad-based rally ensued, with nine of the 11 S&P 500 sectors finishing with gains.

The information technology (+1.0%) and communication services (+0.7%) sectors outperformed, while the energy sector (-1.7%) fell behind amid a retreat in oil prices ($59.62, -3.06, -4.9%). WTI crude futures dropped below $60/bbl following bearish inventory data and receding concerns about production disruptions.

Stock laggards included Boeing (BA 331.37, -5.91, -1.8%) after a 737-800 jetliner crashed shortly after takeoff in Tehran, killing all 176 passengers on board, and Walgreens Boots Alliance (WBA 55.83, -3.46, -5.8%) after it missed earnings estimates.

Positive corporate news came out of Macy's (M 18.10, +0.43, +2.4%), which reported better than feared holiday sales, and Constellation Brands (STZ 190.29, +6.69, +3.6%), which beat top and bottom-line estimates.

Shares of GrubHub (GRUB 54.75, +6.12, +12.6%) climbed nearly 13% after The Wall Street Journal reported the company is pursuing strategic options, including a possible sale.

U.S. Treasuries declined alongside the advance in equities, driving yields higher across the curve. The 2-yr yield rose four basis points to 1.58%, and the 10-yr yield rose five basis points to 1.87%. The U.S. Dollar Index increased 0.3% to 97.30. Gold futures fell 0.9% to $1560.50/ozt.

Reviewing Wednesday's economic data, which included the ADP Employment Change Report for December and the Consumer Credit report for November:

The ADP Employment Change Report showed an estimated 202,000 positions were added to private sector payrolls in December (Briefing.com consensus 155,000) on top of an upwardly revised 124,000 (from 67,000) in November.
Consumer credit increased by $12.5 bln in November (Briefing.com consensus $17.5 bln) after increasing by $18.9 bln in October.
The key takeaway from the report is that the November increase was driven entirely by nonrevolving credit.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report on Thursday.

Nasdaq Composite +1.8% YTD
S&P 500 +0.7% YTD
Dow Jones Industrial Average +0.7% YTD
Russell 2000 -0.3% YTD

Market Snapshot
Dow 28745.00 +161.41 (0.56%)
Nasdaq 9129.27 +60.66 (0.67%)
SP 500 3253.05 +15.87 (0.49%)
10-yr Note -26/32 1.869
NYSE Adv 1630 Dec 1189 Vol 896.0 mln
Nasdaq Adv 1857 Dec 1328 Vol 2.4 bln

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

Moving the Market

-- S&P 500, Nasdaq set new highs in relief trade

-- Iran's retaliation caused no American casualties and President Trump implicated economic countermeasures over military ones

-- Relative weakness in energy stocks amid 5% drop in the price of oil

WTI crude drops 5%
08-Jan-20 15:30 ET
Dow +277.04 at 28860.63, Nasdaq +99.58 at 9168.19, S&P +29.70 at 3266.88

[BRIEFING.COM] The S&P 500 is trading at session highs with a gain of 0.9%. The Russell 2000 is up 0.6%.

One last look at the S&P 500 sectors shows ten of the 11 sectors trading with gains. Information technology (+1.5%), communication services (+1.1%), health care (+1.1%), and financials (+1.0%) are setting the pace, while the energy sector (-1.4%) remains the lone sector trading lower.

WTI crude dropped $3.06 (-4.9%) to $59.62/bbl on receding concerns about disruptions to production and bearish inventory data.

[ReturntoSender]

S&P 500 rallies past 3300 in risk-on session
16-Jan-20 16:15 ET
Dow +267.42 at 29297.55, Nasdaq +98.44 at 9357.16, S&P +27.52 at 3316.81

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

[BRIEFING.COM] The S&P 500 rose 0.8% on Thursday in a broad-based advance that carried the benchmark index past the 3300 level for the first time. The Dow Jones Industrial Average (+0.9%) and Nasdaq Composite (+1.1%) also closed at record highs, while the Russell 2000 outperformed with a 1.4% gain.

It was a day replete with good news that helped extend the market's bullish momentum and, in turn, bolster risk sentiment. Morgan Stanley (MS 56.44, +3.50, +6.6%) provided strong earnings results, retail sales increased 0.3% in December as expected, weekly jobless claims continued to reverse a modestly rising uptrend, and the USMCA deal was passed in the Senate.

All 11 S&P 500 sectors started and finished in the green, with the broader market rallying into the close. The information technology sector (+1.4%) provided the leadership amid strength in its top-weighted components and the semiconductor stocks, which got a boost from the positive earnings results from Taiwan Semiconductor (TSM 58.75, +0.36, +0.6%).

It didn't end there, though. Charles Schwab (SCHW 49.00, +1.88, +4.0%) beat earnings estimates, Signet Jewelers (SIG 30.13, +8.64, +40.2%) provided upbeat holiday sales results and comparable sales guidance, Spirit Airlines (SAVE 42.65, +2.97, +7.5%) provided upside unit revenue guidance, and XPO Logistics (XPO 95.35, +12.53, +15.1%) said it may sell or spin-off some of its business units.

Altogether, it was enough to subdue valuation concerns for at least one more day. Underlying expectations for positive earnings guidance, persistently low Treasury yields, and modest economic growth without Fed intervention were not meaningfully undermined in today's session.

Notable laggards included BNY Mellon (BK 46.72, -3.97, -7.8%), Tesla (TSLA 513.49, -5.01, -1.0%), PPG Industries (PPG 127.41, -3.33, -2.6%). BNY missed revenue estimates, Tesla was downgraded to Underweight from Equal-Weight at Morgan Stanley, and PPG issued disappointing quarterly results and guidance.

U.S. Treasuries finished on a lower note amid the risk-on mindset in equities. The 2-yr yield increased two basis points to 1.57%, and the 10-yr yield increased two basis points to 1.81%. The U.S. Dollar Index increased 0.1% to 97.30. WTI crude rose 1.1%, or $0.62, to $58.48/bbl.

Reviewing Thursday's economic data, which featured the Retail Sales report for December:

Retail sales increased 0.3% m/m in December following an upwardly revised 0.3% increase (from 0.2%) in November. Retail sales, excluding autos, jumped 0.7% (Briefing.com consensus +0.5%) after a downwardly revised unchanged reading (from 0.1%) in November.
The key takeaway from the report is that the December sales increases were broad based, with the exception of motor vehicles and parts dealers (-1.3%) and department stores (-0.8%), breathing life into the notion that the consumer remains a driving force of growth for the U.S. economy.
Initial claims for the week ending January 11 dropped by 10,000 to 204,000 (Briefing.com consensus 217,000). Continuing claims for the week ending January 4 decreased by 37,000 to 1.767 million.
The key takeaway from the report is that it reflects a tight labor market and has helped squelch a modestly rising uptrend in initial claims.
Import prices for December were up 0.3%. Excluding fuel, they were flat. Export prices were down 0.2%. Excluding agricultural products, they were down 0.1%.
The key takeaway from the report is that there were no inflation pressures embedded in the data. Nonfuel import prices were down 1.4% yr/yr while nonagricultural export prices were down 0.6%.
Total business inventories declined 0.2% month-over-month in November, as expected, following a downwardly revised 0.1% increase (from 0.2%) in October. Total business sales were up 0.7% following a downwardly revised 0.2% decline (from -0.1%) in October.
The key takeaway from the report is that the gap between inventory growth on a yr/yr basis (+2.8%) and sales growth (+1.0%) should help keep prices in check.
The Philadelphia Fed Index for January jumped to 17.0 (Briefing.com consensus 3.0) from the revised 2.4 reading in December (from 0.3).
The NAHB Housing Market Index for January declined to 75 (Briefing.com consensus 74) from 76 in December.

Looking ahead, investors will receive Housing Starts and Building Permits for December, Industrial Production and Capacity Utilization for December, and the preliminary University of Michigan Index of Consumer Sentiment for January on Friday.

Nasdaq Composite +4.3% YTD
S&P 500 +2.7% YTD
Dow Jones Industrial Average +2.7% YTD
Russell 2000 +2.2% YTD

Market Snapshot
Dow 29297.55 +267.42 (0.92%)
Nasdaq 9357.16 +98.44 (1.06%)
SP 500 3316.81 +27.52 (0.84%)
10-yr Note -2/32 1.805
NYSE Adv 2003 Dec 846 Vol 846.2 mln
Nasdaq Adv 2388 Dec 796 Vol 2.4 bln

Industry Watch
Strong: Information Technology, Industrials, Consumer Discretionary
Weak: Energy

Moving the Market

-- S&P 500 rallies past 3300 in risk-on session

-- Broad-based advance led by the technology stocks

-- Morgan Stanley (MS) rises on impressive quarterly results

-- Upbeat economic data, including an expected 0.3% increase in retail sales for December

WTI crude gains 1% in risk-on session
16-Jan-20 15:25 ET
Dow +209.20 at 29239.33, Nasdaq +73.29 at 9332.01, S&P +20.70 at 3309.99

[BRIEFING.COM] The S&P 500 is up 0.9% and is on pace to close at a record high.

One last look at the S&P 500 sectors shows all 11 sectors still trading in the green. The information technology sector (+1.1%) remains on top, while the energy sector (+0.2%) has fallen back to the bottom of the standings.

WTI crude rose $0.62 (+1.1%) to $58.48/bbl.

[ReturntoSender]

Wall Street extends rally on solid economic data
17-Jan-20 16:20 ET
Dow +50.46 at 29348.01, Nasdaq +31.81 at 9388.97, S&P +12.81 at 3329.62

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

[BRIEFING.COM] The S&P 500 advanced 0.4% on Friday, as upbeat economic data helped extend the market's record run. The Dow Jones Industrial Average (+0.2%) and Nasdaq Composite (+0.3%) also closed at new highs, while the Russell 2000 (-0.3%) finished lower.

Overall, it was a relatively subdued session that seemingly had the potential for even more gains. For instance, housing starts rose to their highest level in 13 years in December, China's industrial production rose more than expected in December, and a couple of influential hedge fund managers told CNBC they were bullish on stocks.

Buyers, however, appeared exhausted after another great week of gains. There were still more buyers than sellers given the amount of positive news in the market, as nine of the 11 S&P 500 sectors finished in the green. The communication services (+0.9%) and utilities (+0.8%) sectors outperformed, while the energy sector (-0.7%) underperformed.

The industrials sector (unch) also included its fair share of laggards. Boeing (BA 324.15, -7.85, -2.4%) extended losses on a report of another software issue, and several transportation stocks fell after issuing relatively disappointing earnings results and/or guidance.

Expeditors International (EXPD 76.82, -4.52, -5.6%), J.B. Hunt (JBHT 114.68, -5.08, -4.2%), and CSX (CSX 76.40, -0.34, -0.4%) let investors down, while KC Southern (KSU 166.52, +4.89, +3.0%) shareholders were able to look past its earnings miss.

Separately, Alphabet (GOOG 1480.39, +28.69, +2.0%) and Apple (AAPL 318.73, +3.49, +1.1%) benefited from a pair of positive analyst recommendations. UBS raised its GOOG price target to $1675 from $1460. Morgan Stanley raised its AAPL price target to $368 from $296.

U.S. Treasuries finished mixed amid some curve-steepening activity. The 2-yr yield declined one basis point to 1.56%, while the 10-yr yield increased three basis points to 1.84%. The U.S. Dollar Index increased 0.3% to 97.62. WTI crude increased 0.1% to $58.55/bbl.

Reviewing Friday's economic data:

Total housing starts surged 16.9% m/m in December to a seasonally adjusted annual rate of 1.608 million (Briefing.com consensus 1.380 million), driven by an 11.2% increase in single-family starts and a 30% increase in multi-unit starts. Building permits, meanwhile, declined 3.9% m/m to 1.416 million (Briefing.com consensus 1.460 million), with single-family permits down 0.5%.
The key takeaway from the report is the huge starts number and the recognition that the largest homebuilding region -- the South -- saw an impressive 11.3% increase in single-family starts. That's a good sign as it relates to potential supply coming online and it's good simply as a positive growth indicator.
Industrial production declined 0.3% in December (Briefing.com consensus +0.1%), pressured by a 5.6% decline in utilities output that stemmed from unseasonably warm weather. The capacity utilization rate fell to 77.0% from an upwardly revised 77.4% (from 77.3%) in November.
The key takeaway from the report is that manufacturing output increased 0.2% despite a large 4.6% drop in the output of motor vehicles and parts. Excluding the motor vehicle sector, factory output increased 0.5%.
The preliminary reading of the University of Michigan's Index of Consumer Sentiment for January declined to 99.1 (Briefing.com consensus 98.9) from 99.3 in November.
Job openings declined to 6.800 million from a revised 7.361 million (from 7.267 million) in November, according to the JOLTS report.

As a reminder, the market will be closed on Monday for Martin Luther King Jr. Day.

Nasdaq Composite +4.6% YTD
S&P 500 +3.1% YTD
Dow Jones Industrial Average +2.8% YTD
Russell 2000 +1.9% YTD

Market Snapshot
Dow 29348.01 +50.46 (0.17%)
Nasdaq 9388.97 +31.81 (0.34%)
SP 500 3329.62 +12.81 (0.39%)
10-yr Note -2/32 1.831
NYSE Adv 1458 Dec 1409 Vol 988.4 mln
Nasdaq Adv 1387 Dec 1751 Vol 2.3 bln

Industry Watch
Strong: Communication Services, Utilities
Weak: Energy, Industrials

Moving the Market

-- Stock market closes at fresh record highs on upbeat economic data

-- Housing starts rise more than expected in December, China reports better-than- expected industrial production for December

-- Relative weakness in the transportation space following earnings/guidance

WTI crude settles little changed
17-Jan-20 15:25 ET
Dow +7.39 at 29304.94, Nasdaq +7.16 at 9364.32, S&P +6.10 at 3322.91

[BRIEFING.COM] The S&P 500 continues to trade higher by 0.2%.

One last look at the S&P 500 sectors shows utilities (+0.7%) and communication services (+0.6%) continuing to outperform, while the energy (-0.8%) and industrials (-0.1%) sectors trade in the red. The energy sector is the only sector trading lower for the week with a 1.2% decline.

WTI crude increased $0.07 (+0.1%) to $58.55/bbl.

[ReturntoSender]

S&P 500 and Nasdaq eke out gains as WHO eases virus worries
23-Jan-20 16:15 ET
Dow -26.18 at 29160.00, Nasdaq +18.71 at 9402.50, S&P +3.79 at 3325.54

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

[BRIEFING.COM] The S&P 500 lost as much as 0.6% on Thursday amid concerns about growth and valuation, but an intraday rebound gathered steam after the World Health Organization declined to declare an international virus alert or public health emergency for the coronavirus. The benchmark index finished the session up 0.1%.

The Nasdaq Composite (+0.2%) closed at a record high, and the Russell 2000 (+0.03%) eked out a slim gain. The Dow Jones Industrial Average (-0.1%) edged lower amid negative reactions to earnings reports from Travelers (TRV 134.19, -7.15, -5.1%) and Procter & Gamble (PG 124.99, -0.57, -0.5%).

China unnerved the market after it locked down several cities to contain the spreading of the coronavirus ahead of the Lunar New Year festivities. The swift decision rekindled concerns that economic activity would slow down and possibly affect the earnings prospects that current stock valuations are based on.

These growth concerns were manifested in the continued depreciation of oil ($55.61, -1.07, -1.9%) and the flattening activity in the U.S. Treasury yield curve, although the steady advance in the S&P 500 industrials sector (+1.1%) somewhat undermined the slower growth narrative. The real estate (+1.0%) and utilities (+0.9%) sectors benefited from lower yields.

The industrial sector outperformed amid gains in Union Pacific (UNP 187.19, +6.26, +3.5%), which released a well-received earnings report, and General Electric (GE 11.77, +0.40, +3.5%), which was upgraded to Overweight from Equal-Weight at Morgan Stanley. A rebound in Boeing (BA 317.79, +8.79, +2.8%) also helped.

Sectors steadily cut losses throughout the afternoon, partly due to the idea that the coronavirus is not yet something to fear and that actions are being taken to mitigate its effects. Ironically, the health care sector (-0.5%) was today's laggard.

Separately, Comcast (CMCSA 45.65, -1.79, -3.8%) beat earnings estimates, but shares still finished lower. Comcast said it expects video subscriber losses to increase in 2020, which contributed to the 7% rebound in shares of Netflix (NFLX 349.60, +23.60, +7.2%).

As previously stated, the U.S. Treasury market experienced some curve-flattening activity. The 2-yr yield increased one basis point to 1.52%, while the 10-yr yield declined three basis points to 1.74%. The U.S. Dollar Index increased 0.2% to 97.68.

Reviewing Thursday's economic data:

Initial claims for the week ending January 18 increased by 6,000 to 211,000 (Briefing.com consensus 215,000). Continuing claims for the week ending January 11 decreased by 37,000 to 1.731 million.
The key takeaway from the report is that it covered the period in which the survey for the January employment report is conducted. The low level of initial claims, then, should forge expectations for another decent gain in nonfarm payrolls.
The Conference Board's Leading Economic Index (LEI) declined 0.3% m/m in December (Briefing.com consensus -0.2%) following an upwardly revised 0.1% increase (from 0.0%) in November. December was the fourth time in the last five months that the LEI declined.
The key takeaway from the report is the Conference Board's indication that weaknesses among the leading indicators have become slightly more widespread than the strengths.

Investors will not receive any notable economic data on Friday.

Nasdaq Composite +4.8% YTD
S&P 500 +2.9% YTD
Dow Jones Industrial Average +2.2% YTD
Russell 2000 +1.0% YTD

Market Snapshot
Dow 29160.00 -26.18 (-0.09%)
Nasdaq 9402.50 +18.71 (0.20%)
SP 500 3325.54 +3.79 (0.11%)
10-yr Note +26/32 1.730
NYSE Adv 1425 Dec 1402 Vol 948.5 mln
Nasdaq Adv 1415 Dec 1760 Vol 2.5 bln

Industry Watch
Strong: Industrials, Utilities, Real Estate
Weak: Health Care, Energy

Moving the Market

-- Stocks cut intraday losses, Nasdaq closes at record high

-- World Health Organization declined to declare an international virus alert or public health emergency for the coronavirus

-- Relative strength in the industrials sector

-- Oil prices continued to fall amid weaker expectations for demand

WTI crude falls 2% on demand concerns
23-Jan-20 15:25 ET
Dow -20.22 at 29165.96, Nasdaq -18.48 at 9365.31, S&P +2.89 at 3324.64

[BRIEFING.COM] The S&P 500 currently trades higher by 0.1%, while the Dow trades lower by 0.1%.

One last look inside the S&P 500 sectors shows industrials (+1.0%), real estate (+0.8%), and utilities (+0.7%) outperforming, while health care (-0.7%) and communication services (-0.3%) underperform.

WTI crude fell $1.07 (-1.9%) to $55.61/bbl, although this settlement price was well above its intraday 3.4% decline.

[ReturntoSender]

Stocks rebound on waning virus concerns
28-Jan-20 16:20 ET
Dow +187.05 at 28722.76, Nasdaq +130.37 at 9269.70, S&P +32.61 at 3276.24

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

[BRIEFING.COM] U.S. stocks bounced back on Tuesday, recovering a bulk of yesterday's losses as investors bought the dip amid waning coronavirus concerns. The Nasdaq Composite led the rebound with a 1.4% gain, while the S&P 500 (+1.0%), Dow Jones Industrial Average (+0.7%), and Russell 2000 (+0.9%) followed behind.

The day began with modest gains, as the market looked past disappointing earnings reports from 3M (MMM 165.56, -10.07, -5.7%) and Pfizer (PFE 38.10, -2.06, -5.1%), then stocks climbed higher soon after the Conference Board released its Consumer Confidence Index for January. That index rose to 131.6 (Briefing.com consensus 128.0) from 128.2 in December.

All 11 S&P 500 sectors contributed to the rally, including five that rose at least 1.0%. The information technology sector (+1.9%) led the charge on the back of Apple (AAPL 317.69, +8.74, +2.8%), which was set to release its earnings report after the close. Shares got an added lift on reports Apple asked suppliers to raise iPhone production levels by more than 10% over the last year.

The Philadelphia Semiconductor Index, which was among yesterday's worst-performing groups, rose 2.4%. The consumer staples sector, which was yesterday's best-performing S&P 500 sector, increased just 0.1%.

As for the coronavirus, there weren't too many positive developments on the situation, as more cases and deaths were confirmed in China with additional travel restrictions enacted. Investors, however, appeared placated by the fact that it remained under control in the U.S. Any negative impact to earnings growth, thus, might be transitory or minimal.

In other earnings news, United Technologies (UTX 152.86, +1.83, +1.2%) and Lockheed Martin (LMT 437.17, +4.79, +1.1%) were some of the more notable companies today that beat top and bottom-line estimates.

U.S. Treasuries gave back some of their recent gains, sending yields modestly higher. The 2-yr yield increased three basis points to 1.46%, and the 10-yr yield increased four basis points to 1.64%. The U.S. Dollar Index finished flat at 97.98. WTI crude rose 0.7%, or $0.39, to $53.40/bbl.

Reviewing Tuesday's economic data:

The Conference Board's Consumer Confidence Index rose to 131.6 in January (Briefing.com consensus 128.0) from an upwardly revised 128.2 (from 126.5) in December.
The key takeaway from the report is that the survey group remains optimistic about the overall situation, as nearly 41% of respondents described business conditions as good while 49% of respondents believed that jobs are plentiful.
Total durable goods orders rose 2.4% m/m in December (Briefing.com consensus +0.5%) following a downwardly revised 3.1% decline (from -2.0%) in November. Excluding transportation, durable goods orders slipped 0.1% (Briefing.com consensus +0.3%) on the heels of a downwardly revised 0.4% decline (from 0.0%) in November.
The key takeaway from the report is that nondefense capital goods orders, excluding aircraft -- a proxy for business spending -- declined 0.9% after increasing just 0.1% in November. Shipments of these goods, which factor into GDP computations, were down 0.4% following a 0.3% decline in November.
The S&P Case-Shiller Home Price Index increased 2.6% yr/yr in November (Briefing.com consensus 2.5%) following a 2.2% yr/yr increase in December.

Looking ahead, investors will receive the following on Wednesday: an FOMC Rate Decision, Pending Home Sales for December, the weekly MBA Mortgage Applications Index, and the Advance reports for Wholesale Inventories, Retail Inventories, and Trade in Goods.

Nasdaq Composite +3.3% YTD
S&P 500 +1.4% YTD
Dow Jones Industrial Average +0.7% YTD
Russell 2000 -0.6% YTD

Market Snapshot
Dow 28722.76 +187.05 (0.66%)
Nasdaq 9269.70 +130.37 (1.43%)
SP 500 3276.24 +32.61 (1.01%)
10-yr Note -25/32 1.649
NYSE Adv 1990 Dec 885 Vol 832.6 mln
Nasdaq Adv 2156 Dec 971 Vol 2.1 bln

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

Moving the Market

-- Investors buying the coronavirus dip, S&P 500 up around 1%

-- Broad-based advance led by the technology stocks

-- 3M (MMM) and Pfizer (PFE) disappoint with earnings and/or guidance.

WTI crude posts modest gain
28-Jan-20 15:25 ET
Dow +247.64 at 28783.35, Nasdaq +145.79 at 9285.12, S&P +39.60 at 3283.23

[BRIEFING.COM] The S&P 500 is up 1.2% and is on pace to recoup most of its losses from yesterday.

One last look inside the S&P 500 shows the information technology sector leading the charge with a 2.0% gain. At the other end is the consumer staples sector with a small 0.3% gain.

WTI crude settled higher by $0.39 (+0.7%) to $53.40/bbl. The commodity is still down more than 12% this month, though.

[ReturntoSender]

Major indices extend weekly gains, close at new highs
06-Feb-20 16:10 ET
Dow +88.92 at 29379.68, Nasdaq +63.47 at 9572.17, S&P +11.09 at 3345.78

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

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.7%), and Dow Jones Industrial Average (+0.3%) added to their strong weekly gains and closed at fresh record highs on Thursday. The small-cap Russell 2000 (-0.3%) struggled to keep pace and closed lower.

The lead news item today was China announcing it will cut tariffs on $75 billion of U.S. imports by 50% on Feb. 14. This should not only help Beijing fulfill its pledges from the Phase One trade deal, but also provide additional economic stimulus. In the U.S., weekly jobless claims falling to their lowest level in nine months was another good sign for the economy.

Mega-cap technology stocks did the heavy lifting today, helping the S&P 500 communication services (+1.1%) and information technology (+0.9%) sectors outpace the broader market. The S&P 500, however, drifted with modest gains throughout the session, as investors presumably exercised some caution after a big week with the January employment report still due tomorrow.

The energy sector (-1.0%) was today's outright laggard after a rare outperformance yesterday.

Earnings were mixed and, keeping with recent trend, reactions were isolated to reporting companies. Twitter (TWTR 38.41, +5.02, +15.0%) and Cardinal Health (CAH 58.26, +5.58, +10.6%) stood out with impressive post-earnings gains, while Becton Dickinson (BDX 252.25, -33.74, -11.8%) and Kellogg (K 63.46, -5.90, -8.5%) were some of the laggards.

Separately, Boeing (BA 341.43, +11.88, +3.6%) shares outperformed on reports that the FAA will approve the company's design fixes to the 737 MAX. New software flaws were discovered but the goal to return to service by mid-year remained intact, according to Bloomberg.

U.S. Treasuries finished a quiet session little changed. The 2-yr yield was unchanged at 1.45%, and the 10-yr yield declined one basis point to 1.64%. The U.S. Dollar Index increased 0.2% to 98.49. WTI crude increased 0.2% to $50.97/bbl.

Reviewing Thursday's economic data:

Initial claims for the week ending February 1 decreased by 15,000 to 202,000 (Briefing.com consensus 218,000), which is a nine-month low. Continuing claims for the week ending January 25 increased by 48,000 to 1.751 million.
The key takeaway from the report is that the low level of initial claims, which are a leading indicator, is indicative of employers maintaining a positive view of the demand outlook.
The BLS reported that nonfarm business sector labor productivity increased 1.4% in the fourth quarter (Briefing.com consensus 1.7%). Unit labor costs were also up 1.4% (Briefing.com consensus 1.2%).
The key takeaway from the report is that productivity is still running below the long-term average from 1947 to 2019 (2.1%); however, the 1.7% growth in nonfarm business sector productivity in 2019 was the strongest since 2010 and above the 1.3% average for the period 2007-2019.

Looking ahead, investors will receive the Employment Situation Report for January, the Wholesale Inventories report for December, and the Consumer Credit report for December on Friday.

Nasdaq Composite +6.7% YTD
S&P 500 +3.6% YTD
Dow Jones Industrial Average +3.0% YTD
Russell 2000 +0.5% YTD

Market Snapshot
Dow 29379.68 +88.92 (0.30%)
Nasdaq 9572.17 +63.47 (0.67%)
SP 500 3345.78 +11.09 (0.33%)
10-yr Note +1/32 1.642
NYSE Adv 1359 Dec 1502 Vol 950.0 mln
Nasdaq Adv 1459 Dec 1703 Vol 2.3 bln

Industry Watch
Strong: Communication Services, Information Technology
Weak: Energy, Materials, Financials

Moving the Market

-- Stock market extends weekly gains and closes at new record highs

-- China said it will cut tariffs on $75 billion of U.S. imports by 50%

-- Weekly jobless claims drop below expectations to nine-month low

WTI crude inches higher
06-Feb-20 15:25 ET
Dow +40.17 at 29330.93, Nasdaq +44.87 at 9553.57, S&P +6.92 at 3341.61

[BRIEFING.COM] The S&P 500 is down from prior highs and is up just 0.2%.

One last look at the S&P 500 sectors before the close shows mixed results. Communication services (+1.1%) and information technology (+0.8%) outperform amid strength in the mega-cap technology stocks, while energy (-0.9%) and materials (-0.3%) underperform.

WTI crude increased $0.12 (+0.2%) to $50.97/bbl.

[ReturntoSender]

Stocks end strong week on lower note despite decent jobs report
07-Feb-20 16:15 ET
Dow -277.26 at 29102.42, Nasdaq -51.64 at 9520.53, S&P -18.07 at 3327.71

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

[BRIEFING.COM] The S&P 500 pulled back 0.5% on Friday, unable to generate follow-through buying interest after the better-than-expected employment report for January. The Nasdaq Composite (-0.5%) fell in-line with the benchmark index, while the Dow Jones Industrial Average (-0.9%) and Russell 2000 (-1.2%) underperformed.

Nonfarm payrolls grew by 225,000 in January, beating the Briefing.com consensus of 164,000 and corroborating prior reports from this week that U.S. hiring activity remained strong. Average hourly earnings increased 0.3%, as expected, while the unemployment rate increased to 3.6% (Briefing.com consensus 3.5%) from 3.5%.

The employment report capped a series of good reports this week, but it wasn't enough to warrant more gains on Friday. The S&P 500, after all, entered the session up 3.7% for the week in part due to data showing strength in the labor market.

The S&P 500 information technology sector (-1.5%) was an influential weight on the market amid broad-based weakness. Apple (AAPL 320.03, -4.41, -1.4%) was pressured by news that it extended the closure of its China stores through Feb. 15. The defensive-oriented consumer staples sector (+0.2%) outperformed.

Notable gainers included Uber (UBER 40.63, +3.54, +9.5%), AbbVie (ABBV 92.29, +5.11, +5.9%), and T-Mobile US (TMUS 85.44, +2.67, +3.2%) following their earnings reports. Take-Two Interactive (TTWO 112.60, -15.14, -11.9%), on the other hand, was the biggest laggard in the S&P 500 following its report.

In other corporate news, FedEx (FDX 155.66, +7.03, +4.7%) said it is optimizing last-mile residential deliveries that will drive costs lower. Intercontinental Exchange (ICE 92.63, +2.52, +2.8%) said it will no longer explore strategic opportunities with eBay (EBAY 36.20, -1.80, -4.7%).

U.S. Treasuries finished on a higher note amid the negative bias in the stock market. The 2-yr yield declined six basis points to 1.39%, and the 10-yr yield declined seven basis points to 1.58%. The U.S. Dollar Index increased 0.2% to 98.69. WTI crude fell 1.2%, or $0.62, to $50.35/bbl.

Reviewing Friday's economic data:

Nonfarm payrolls, bolstered by a nice 44,000 increase in construction jobs, were better than expected in January; average hourly earnings were up; and the labor force participation rate improved with annual adjustments to population controls giving it some ballast. January nonfarm payrolls increased by 225,000 (Briefing.com consensus 164,000).
The key takeaway from the report is that employment conditions remain in that sweet spot of being encouraging on the hiring front and encouraging on the inflation front in that average hourly earnings growth isn't accelerating sharply enough to provoke imminent rate-hike concerns.
Wholesale inventories declined 0.2% in December (Briefing.com consensus -0.1%) following a revised 0.1% increase (from -0.1%) in November
Consumer credit increased by $22.0 bln in November (Briefing.com consensus $17.5 bln) after increasing a downwardly revised $11.9 bln (from $12.5 billion) in November.
The key takeaway from the report is that the increase in December was led by a jump in revolving credit.

Investors will not receive any notable economic data on Monday.

Nasdaq Composite +6.1% YTD
S&P 500 +3.0% YTD
Dow Jones Industrial Average +2.0% YTD
Russell 2000 -0.7% YTD

Market Snapshot
Dow 29102.42 -277.26 (-0.94%)
Nasdaq 9520.53 -51.64 (-0.54%)
SP 500 3327.71 -18.07 (-0.54%)
10-yr Note +27/32 1.586
NYSE Adv 1009 Dec 1829 Vol 859.9 mln
Nasdaq Adv 973 Dec 2211 Vol 2.2 bln

Industry Watch
Strong: Consumer Staples, Real Estate, Communication Services
Weak: Information Technology, Materials

Moving the Market

-- Stock market closed lower but still finished the week sharply higher

-- Economy added 225,000 jobs to nonfarm payrolls in January (Briefing.com consensus 164,000)

-- Relative weakness in the information technology sector, while defensive-oriented sectors outperformed

WTI crude extends losses
07-Feb-20 15:30 ET
Dow -273.18 at 29106.50, Nasdaq -17.53 at 9554.64, S&P -17.31 at 3328.47

[BRIEFING.COM] The S&P 500 is on pace to end a great week on lower note. Currently, the benchmark index is down 0.5%.

One last look inside the S&P 500 shows materials (-1.5%) and information technology (-1.0%) down at least 1.0%, while consumer staples (+0.2%), communication services (+0.1%), and real estate (+0.1%) trade higher.

WTI crude fell $0.62 (-1.2%) to $50.35/bbl.

[ReturntoSender]

S&P 500 and Nasdaq extend winning ways with small gains
11-Feb-20 16:15 ET
Dow -0.48 at 29276.25, Nasdaq +10.55 at 9638.96, S&P +5.66 at 3357.75

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

[BRIEFING.COM] The large-cap indices started Tuesday's session hitting intraday highs, but stocks steadily pulled back throughout the day amid a lack of follow-though buying interest. The S&P 500 (+0.2%) and Nasdaq Composite (+0.1%) still eked out closing records, while the Dow Jones Industrial Average (unch) finished flat. The Russell 2000 rose 0.6%.

The initial boost in the market was attributed to reports indicating that the rate of new coronavirus cases was slowing down and a view that monetary policy will remain favorable given the risks that remain due to the virus. Fed Chair Powell told the House Financial Services Committee today that the Fed is "closely monitoring" the situation.

The S&P 500 real estate (+1.2%) and energy (+1.0%) sectors advanced at least 1.0%. The communication services (-0.4%), consumer staples (-0.3%), and information technology (-0.3%) sectors underperformed, with the former pressured by Facebook (FB 207.19, -5.87, -2.8%) after it was downgraded to Sell from Hold at Pivotal Research.

The ratio of advancers to decliners in the NYSE was more than 2:1, but today's advance was slim given the missing leadership from the mega-cap technology stocks. On a related note, the FTC said it will be examining small acquisitions made by Apple (AAPL 319.61, -1.94, -0.6%), Microsoft (MSFT 184.44, -4.26, -2.3%), Alphabet (GOOG 1508.79, +0.11, unch), Amazon (AMZN 2150.80, +16.89, +0.8%), and Facebook (FB).

Separately, the merger agreement between Sprint (S 8.52, +3.72, +77.5%) and T-Mobile US (TMUS 94.49, +9.96, +11.8%) was finally approved by a federal court in New York. Shares of Sprint surged more than 75% in response.

In earnings news, Under Armour (UAA 16.59, -3.86, -18.9%) and Goodyear Tire (GT 11.56, -1.63, -12.4%) disappointed investors with results and/or guidance and both mentioned the negative impact caused by the coronavirus. Burlington Stores (BURL 243.45, +14.95, +6.5%) outperformed after raising guidance.

U.S. Treasuries finished on a lower note and barely moved during Fed Chair Powell's congressional testimony. The 2-yr yield increased four basis points to 1.42%, and the 10-yr yield increased four basis points to 1.42%. The U.S. Dollar Index declined 0.1% to 98.75. WTI crude rose 0.9%, or $0.44, to $50.01/bbl.

Reviewing Tuesday's economic data:

The NFIB Small Business Optimism Index for January increased to 104.3 from 102.7 in December.
The December Job Openings and Labor Turnover Survey showed job openings decline to 6.423 million from a revised 6.787 million in November (from 6.800 million).

Looking ahead, investors will receive the weekly MBA Mortgage Applications Index and the Treasury Budget for January on Wednesday.

Nasdaq Composite +7.4% YTD
S&P 500 +3.9% YTD
Dow Jones Industrial Average +2.6% YTD
Russell 2000 +0.5% YTD

Market Snapshot
Dow 29276.25 -0.48 (0.00%)
Nasdaq 9638.96 +10.55 (0.11%)
SP 500 3357.75 +5.66 (0.17%)
10-yr Note -2/32 1.594
NYSE Adv 1987 Dec 906 Vol 835.3 mln
Nasdaq Adv 1965 Dec 1192 Vol 2.4 bln

Industry Watch
Strong: Real Estate, Energy
Weak: Communication Services, Consumer Staples, Information Technology

Moving the Market

-- S&P 500 and Nasdaq eke out closing records in lackluster session

-- Fed Chair Powell testifies before Congress, says closely monitoring the coronavirus

-- Rate of new cases is reportedly slowing down

-- Relative strength in the real estate space

WTI crude closes back above $50 per barrel
11-Feb-20 15:25 ET
Dow -45.51 at 29231.22, Nasdaq -5.43 at 9622.98, S&P +3.04 at 3355.13

[BRIEFING.COM] The S&P 500 is clinging onto a slim 0.1% gain, while the Dow (-0.1%) and Nasdaq (-0.1%) slip lower.

One last look at the S&P 500 sector shows real estate (+1.1%), materials (+1.0%), and consumer discretionary (+1.0%) providing support for the broader market, while the communication services (-0.4%) and consumer staples (-0.3%) sectors trade lower.

WTI crude settled up $0.44 (+0.9%) to $50.01/bbl.

[ReturntoSender]

Stock market extends rally to new highs
12-Feb-20 16:15 ET
Dow +275.08 at 29551.33, Nasdaq +87.02 at 9725.98, S&P +21.70 at 3379.45

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

[BRIEFING.COM] The S&P 500 (+0.7%), Dow Jones Industrial Average (+0.9%), and Nasdaq Composite (+0.9%) extended their winning ways on Wednesday and closed at new record highs. The Russell 2000 kept pace with a 0.7% gain.

The narratives driving stocks higher remained unchanged. Reports continued to indicate the slowing pace of the coronavirus, Fed Chair Powell's congressional testimony assured investors that monetary policy will remain favorable, and the positive bias in stocks (including foreign ones) continued to fuel risk sentiment.

Ten of the 11 S&P 500 sectors contributed to the advance with the energy (+1.4%) and information technology (+1.1%) sectors taking the top spots today. Energy stocks received extra support from a 2.3% gain in WTI crude ($51.17/bbl, +1.16). The consumer staples sector (-0.04%) sat this one out with a marginal loss.

Apple (AAPL 327.20, +7.59, +2.4%) remained an influential force in the market, while smaller companies Micron (MU 59.27, +2.02, +3.5%), Las Vegas Sands (LVS 71.13, +2.28, +3.3%), and Wynn Resorts (WYNN 136.82, +4.83, +3.7%) benefited from analyst upgrades. Bank of America/Merrill Lynch liked the risk-reward ratios for LVS and WYNN given the improving coronavirus situation.

On the downside, shares of Lyft (LYFT 48.46, -5.48, -10.2%), Western Union (WU 26.13, -2.11, -7.5%), and Bed Bath & Beyond (BBBY 11.79, -3.06, -20.6%) were among today's biggest laggards in response to earnings results.

U.S. Treasuries remained out of favor amid the bullish bias in stocks. The 2-yr yield increased two basis points to 1.44%, and the 10-yr yield increased four basis points to 1.63%. The U.S. Dollar Index remained strong, closing 0.3% higher at 99.00.

Separately, the CBOE Volatility Index fell 9.5% to 13.74, returning to levels seen before the coronavirus started to hit stocks last month.

Reviewing Wednesday's economic data:

The Treasury Budget for January showed a deficit of $32.6 billion versus a surplus of $8.7 billion in the same period a year ago. This budget data is not seasonally adjusted, so the January deficit cannot be compared to the deficit of $13.3 billion for December.
The budget deficit over the last 12 months is $1.063 trillion versus $1.022 trillion in December. The fiscal year-to-date deficit is $389.2 billion versus $310.3 for the same period a year ago.
The weekly MBA Mortgage Applications Index increased 1.1% following a 5.0% increase in the prior week.

Looking ahead, investors will receive the Consumer Price Index for January and the weekly Initial and Continuing Claims report on Thursday.

Nasdaq Composite +8.4% YTD
S&P 500 +4.6% YTD
Dow Jones Industrial Average +3.6% YTD
Russell 2000 +1.3% YTD

Market Snapshot
Dow 29551.33 +275.08 (0.94%)
Nasdaq 9725.98 +87.02 (0.90%)
SP 500 3379.45 +21.70 (0.65%)
10-yr Note -2/32 1.632
NYSE Adv 1744 Dec 1147 Vol 929.2 mln
Nasdaq Adv 1924 Dec 1250 Vol 2.3 bln

Industry Watch
Strong: Energy, Information Technology
Weak: Consumer Staples

Moving the Market

-- Stock market extends rally to new highs in mostly broad-based advance

-- Positive views regarding the coronavirus, the economy, and monetary policy

-- Defensive-oriented stocks underperformed

WTI crude climbs 2% in risk-on session
12-Feb-20 15:25 ET
Dow +248.98 at 29525.23, Nasdaq +74.10 at 9713.06, S&P +19.44 at 3377.19

[BRIEFING.COM] The S&P 500 is currently up 0.6%, and the Russell 2000 is up 0.7%.

One last look inside the S&P 500 shows the energy (+1.3%) and communication services (+1.0%) sectors leading the market in gains, while the consumer staples sector (-0.1%) sits this one out with a modest decline.

WTI crude settled up $1.16 (+2.3%) to $51.17/bbl.

[ReturntoSender]

Stocks slip from record highs following spike in reported coronavirus cases
13-Feb-20 16:15 ET
Dow -128.11 at 29423.22, Nasdaq -13.99 at 9711.99, S&P -5.51 at 3373.94

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

[BRIEFING.COM] The stock market slipped from record highs on Thursday following a spike in reported coronavirus cases in China, but it did close well off session lows. The S&P 500 lost 0.2%, the Dow Jones Industrial Average lost 0.4%, and the Nasdaq Composite lost 0.1%. The Russell 2000, however, increased 0.3%.

The news was particularly disappointing because reports over the past few days had indicated that the rate of new cases was slowing down. The surge may have been due to a new diagnostic procedure, but White House officials reportedly remained skeptical of China's information, thinking Beijing is still underreporting cases.

The S&P 500, which was already up 4.8% in February, only declined as much as 0.6% today. This wasn't a move that suggested investors were fearful, but instead reflected a subdued risk sentiment given how far the market had come in a short period of time. Of course, the coronavirus remains a risk, especially for U.S. companies with Chinese exposure.

Given its resiliency, though, investors turned defensive and boosted demand for stocks within the S&P 500 utilities (+1.0%), consumer staples (+0.6%), and real estate (+0.5%) sectors. The industrials (-0.7%) and health care (-0.5%) sectors underperformed.

Cisco Systems (CSCO 47.32, -2.61, -5.2%) was a notable laggard following its earnings report, while PepsiCo (PEP 146.47, +0.39, +0.3%) and Applied Materials (AMAT 67.37, +2.00, +3.1%) closed at record highs following their results. Tesla (TSLA 804.00, +36.71, +4.8%) outperformed after announcing a $2 billion common stock offering.

In other news, the Federal Reserve Bank of New York will reduce the size of its overnight and term repurchase operations, according to Bloomberg. A judge reportedly placed a temporary block on Microsoft's (MSFT 183.71, -1.00, -0.5%) Pentagon cloud contract award following a lawsuit from Amazon (AMZN 2149.87, -10.13, -0.5%).

U.S. Treasuries finished mixed and little changed. The 2-yr yield increased one basis point to 1.45%, while the 10-yr yield declined one basis point to 1.62%. The U.S. Dollar Index increased 0.1% to 99.10. WTI crude rose 0.5%, or $0.23, to $51.40/bbl.

Reviewing Thursday's economic data:

According to the BLS, the Consumer Price Index (CPI) increased just 0.1% m/m in January (Briefing.com consensus +0.2%) while core CPI, which excludes food and energy, increased 0.2%, as expected. The monthly increases left total CPI up 2.5% yr/yr, versus 2.3% in December. That is the largest yr/yr increase since October 2018. Core CPI was up 2.3% yr/yr for the fourth straight month.
The key takeaway from this report is that it won't spark any undue inflation/rate-hike concerns in the market given the stability of core CPI and the Fed's seeming willingness to let inflation run a little hot to prevent inflation expectations from slipping too much.
For the week ending February 8, initial claims increased by 2,000 to 205,000 (Briefing.com consensus 212,000). Continuing claims for the week ending February 1 decreased by 61,000 to 1.698 million.
The key takeaway from the report is that it shows U.S. employers still aren't anticipating any lasting demand shocks related to the coronavirus; otherwise, one might be seeing a spike in initial claims -- a leading indicator -- along with the spike in diagnosed cases.

Looking ahead, investors will receive the following reports on Friday: Retail Sales for January, Industrial Production and Capacity Utilization for January, Import and Export Prices for January, Business Inventories for December, and the preliminary University of Michigan Index of Consumer Sentiment for February.

Nasdaq Composite +8.2% YTD
S&P 500 +4.4% YTD
Dow Jones Industrial Average +3.1% YTD
Russell 2000 +1.5% YTD

Market Snapshot
Dow 29423.22 -128.11 (-0.43%)
Nasdaq 9711.99 -13.99 (-0.14%)
SP 500 3373.94 -5.51 (-0.16%)
10-yr Note +1/32 1.609
NYSE Adv 1426 Dec 1444 Vol 816.7 mln
Nasdaq Adv 1669 Dec 1540 Vol 2.2 bln

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

Moving the Market

-- China reported large spike in new coronavirus cases; market recouped a bulk of opening losses, though

-- Relative strength in the defensive-oriented sectors

-- An appreciation for the fact that the S&P 500 was up 4.8% over the last eight trading sessions

WTI crude posts modest gain
13-Feb-20 15:25 ET
Dow -77.81 at 29473.52, Nasdaq -1.58 at 9724.40, S&P -0.52 at 3378.93

[BRIEFING.COM] The S&P 500 is trading just below its flat line, while the Russell 2000 trades higher by 0.3%.

One last look at the S&P 500 sectors shows mixed results. The utilities (+1.0%), consumer staples (+0.6%), and real estate (+0.5%) sectors sport decent gains, while the industrials (-0.5%) and energy (-0.4%) sectors hold modest losses.

WTI crude settled up $0.23 (+0.5%) to $51.40/bbl to follow up yesterday's 2.3% gain.

[ReturntoSender]

S&P 500 closes lower after Apple issues revenue warning
18-Feb-20 16:15 ET
Dow -165.89 at 29232.10, Nasdaq +1.57 at 9732.77, S&P -9.87 at 3370.29

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

[BRIEFING.COM] The S&P 500 declined as much as 0.7% on Tuesday after Apple (AAPL 319.00, -5.95, -1.8%) provided a revenue warning due to the coronavirus. The market resiliently cut its losses during the afternoon, though, leaving the S&P 500 down 0.3% for the session.

The Nasdaq Composite (+0.02%) eked out a closing record, while the Dow Jones Industrial Average (-0.6%) and Russell 2000 (-0.2%) still finished lower.

Apple specifically said it doesn't expect to meet its revenue guidance for the March quarter due to the coronavirus restraining its supply chain and impacting consumer demand in China. The news didn't come as a surprise given similar warnings previously issued by companies, and investors presumably viewed the situation as temporary and China-specific.

Investors, however, did assume some defensive positioning, evident by the gains in bonds, gold futures ($1590.00, +$19.00, +1.2%), and the CBOE Volatility Index (14.83, +1.15, +8.4%). The resulting decline in Treasury yields undercut the financials sector (-0.9%), while it benefited the utilities sector (+0.8%).

The 2-yr yield declined two basis points to 1.40%, and the 10-yr yield declined three basis points to 1.56%. The U.S. Dollar Index rose 0.4% to 99.43. WTI crude inched up 0.1% (+$0.05) to $52.10/bbl, recouping its intraday losses.

Microsoft (MSFT 187.23, +1.88, +1.0%) and Amazon (AMZN 2155.67, +20.80, +1.0%), which have a combined market cap of nearly $2.5 trillion, helped offset the weakness in Apple with 1% gains of their own. Both stocks extended their yearly gains to 18.7% and 16.6%, respectively, while Apple trimmed its yearly gain to 8.6%.

Walmart (WMT 119.63, +1.74, +1.5%) also outperformed despite missing profit estimates. Tesla (TSLA 858.40, +58.37, +7.3%) resumed its parabolic advance after its price target was raised at Bernstein and Morgan Stanley, although both targets were well below TSLA's closing price.

Reviewing Tuesday's economic data, which included the Empire State Manufacturing Survey and NAHB Housing Market Index:

The Empire State Manufacturing Survey for February increased to 12.9 (Briefing.com consensus 6.3) from the prior month's reading of 4.8.
The NAHB Housing Market Index for February declined to 74 (Briefing.com consensus 75) from 75 in January.

Looking ahead, investors will receive the Producer Price Index for January, Housing Starts and Building Permits for January and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +8.5% YTD
S&P 500 +4.3% YTD
Dow Jones Industrial Average +2.4% YTD
Russell 2000 +0.9% YTD

Market Snapshot
Dow 29232.10 -165.89 (-0.56%)
Nasdaq 9732.77 +1.57 (0.02%)
SP 500 3370.29 -9.87 (-0.29%)
10-yr Note +3/32 1.561
NYSE Adv 1190 Dec 1685 Vol 916.4 mln
Nasdaq Adv 1455 Dec 1758 Vol 2.2 bln

Industry Watch
Strong: Utilities, Communication Services, Consumer Discretionary
Weak: Financials, Energy, Industrials

Moving the Market

-- Apple (AAPL) issued revenue warning for the March quarter due to the coronavirus

-- S&P 500 closed lower, while Nasdaq eked out closing record

-- Investors assumed some defensive positioning: Treasuries, gold, and the VIX all posted gains

WTI crude recoups losses and ekes out gain
18-Feb-20 15:25 ET
Dow -147.19 at 29250.80, Nasdaq +6.09 at 9737.29, S&P -7.64 at 3372.52

[BRIEFING.COM] The S&P 500 and Russell 2000 are both down 0.2%.

One last look inside the S&P 500 sectors shows energy (-0.8%) and financials (-0.8%) continuing to lead the market in losses, while utilities (+07%), communication services (+0.6%), and consumer discretionary (+0.2%) trade in the green.

WTI crude settled up $0.05 (+0.1%) to $52.10/bbl.

[ReturntoSender]

S&P 500 and Nasdaq close in record territory
19-Feb-20 16:15 ET
Dow +115.84 at 29347.94, Nasdaq +84.44 at 9817.21, S&P +15.86 at 3386.15

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

[BRIEFING.COM] The S&P 500 (+0.5%) and Nasdaq Composite (+0.9%) closed at fresh record highs on Wednesday, as investors remained optimistic about the global economic outlook despite the coronavirus. The Dow Jones Industrial Average increased 0.4%, and the Russell 2000 increased 0.5%.

In the U.S., building permits climbed to a near 13-year high in January, while China signaled further support for businesses affected by the coronavirus. In addition, the FOMC minutes from the January meeting didn't alter the market's favorable outlook for monetary policy, which is to say that policy could be adjusted if the coronavirus situation doesn't improve.

Although the stock market did lose some steam into the close, the S&P 500 energy (+1.3%) and information technology (+1.1%) sectors still rose more than 1.0%. Energy stocks benefited from a sharp increase in oil prices ($53.32/bbl, +1.22, +2.3%). The defensive-oriented real estate (-1.4%) and utilities (-1.1%) sectors closed noticeably lower.

Apple (AAPL 323.62, +4.62, +1.5%) provided influential leadership for the market while momentum stock like Tesla (TSLA 917.42, +59.02, +6.9%) and Virgin Galactic (SPCE 37.35, +7.05, +23.3%) stayed hot.

Apple's advance today was a testament to the market's view that the coronavirus is a transitory event. Shares recouped most of yesterday's losses following the company's quarterly revenue warning due to the virus. Regarding Tesla, its price target was raised to $928 from $729 at Piper Sandler.

The Philadelphia Semiconductor Index rose 2.6%, thanks to strength in NVIDIA (NVDA 314.70, +18.13, +6.1%), which was upgraded to Outperform from Mkt Perform at Bernstein, and Analog Devices (ADI 123.89, +5.32, +4.5%), which beat earnings estimates.

U.S. Treasuries traded within a narrow range and closed slightly lower. The 2-yr yield increased two basis points to 1.42%, and the 10-yr yield increased one basis point to 1.57%. The U.S. Dollar Index advanced 0.2% to 99.59.

Reviewing Wednesday's economic data:

The Producer Price Index for January was up 0.5% m/m (Briefing.com consensus +0.1%) and core PPI, which excludes food and energy, was also up 0.5% (Briefing.com consensus +0.1%).
Notwithstanding the large m/m increases, the key takeaway from the report is that producer prices remain relatively tame on a yr/yr basis, up 2.1% for total PPI and up 1.7% for core PPI. Also, with the Consumer Price Index released last week, it is clear today that there wasn't much bleed-through in January to the consumer side of things from the uptick in producer prices.
Granted total housing starts declined 3.6% m/m in January to a seasonally adjusted annual rate of 1.567 million (Briefing.com consensus 1.390 million), but that was well above expectations and marked a 21.4% yr/yr increase. Building permits -- a leading indicator -- increased 9.2% m/m to 1.551 million (Briefing.com consensus 1.460 million) and were up 17.9% yr/yr.
The key takeaway from the report is the recognition that the three-month moving average for starts (1.525 mln) is the highest since January 2007.
The weekly MBA Mortgage Applications Index fell 6.4% following a 1.1% increase in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Philadelphia Fed Index for February, and the Conference Board's Leading Economic Index for January on Thursday.

Nasdaq Composite +9.4% YTD
S&P 500 +4.8% YTD
Dow Jones Industrial Average +2.8% YTD
Russell 2000 +1.4% YTD

Market Snapshot
Dow 29347.94 +115.84 (0.40%)
Nasdaq 9817.21 +84.44 (0.87%)
SP 500 3386.15 +15.86 (0.47%)
10-yr Note 0/32 1.569
NYSE Adv 1540 Dec 1334 Vol 828.7 mln
Nasdaq Adv 1913 Dec 1260 Vol 2.4 bln

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

Moving the Market

-- S&P 500 and Nasdaq close at new highs

-- Strength in the semiconductor and energy spaces

-- Building permits rise more than expected, climb to near 13-year high in January

WTI crude gains more than 2%
19-Feb-20 15:25 ET
Dow +140.03 at 29372.13, Nasdaq +92.98 at 9825.75, S&P +18.88 at 3389.17

[BRIEFING.COM] The S&P 500 continues to trade higher by 0.6% and is on pace to close in record territory.

One last look at the S&P 500 sectors shows energy (+1.5%) and information technology (+1.1%) up more than 1%, while utilities (-0.9%) and real estate (-1.0%) are down about 1%. No other sector is trading lower today.

WTI crude rose $1.22 (+2.3%) to $53.32/bbl.

[ReturntoSender]

Stocks sell off to end week, while gold and bonds gain
21-Feb-20 16:15 ET
Dow -227.57 at 28992.32, Nasdaq -174.37 at 9576.63, S&P -35.48 at 3337.75

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

[BRIEFING.COM] U.S. stocks sold off to end the week, while investors continued to buy less risky assets, amid pestering concerns about the coronavirus and valuation. The Nasdaq Composite led the retreat with a 1.8% decline, followed by the S&P 500 (-1.1%), Russell 2000 (-1.0%), and Dow Jones Industrial Average (-0.8%).

Reported cases of the coronavirus continued to climb in China, but that wasn't new information for the market -- or investors who were buying yesterday's dip. Arguably, the bigger story was the continued flight-to-safety in gold ($1648.90/ozt, +28.90, +1.8%) and U.S. Treasuries (30-yr yield set a new all-time low at 1.89%).

The defensive positioning was attributed not only to the coronavirus fostering growth concerns, but also to the record run in U.S. stocks despite the coronavirus. The latter bolstered calls that the market had gotten overextended and was due for a pullback. The Markit flash services PMI for February, which fell into contraction territory, didn't help sentiment, either.

The top-weighted S&P 500 information technology sector (-2.3%) was today's outright laggard amid broad-based selling. The gains in the real estate (+0.4%) and consumer staples (+0.3%) sectors reflected the market's defensive posture and helped limit the broader decline.

Apple (AAPL 313.05, -7.25, -2.3%), Amazon (AMZN 2095.97, -57.13, -2.7%), Alphabet (GOOG 1485.11, -33.04, -2.2%), and Microsoft (MSFT 178.59, -5.83, -3.2%) -- four widely-held, and crowded, stocks largely responsible for the market's record run -- dropped more than 2% on Friday.

Deere (DE 177.43, +11.60, +7.0%) was among the few bright spots in the market after the company reported solid quarterly results.

U.S. Treasuries, as previously stated, continued to post gains. The 2-yr yield declined four basis points to 1.35%, and the 10-yr yield declined five basis points to 1.47%. The U.S. Dollar Index fell 0.5% to 99.32. WTI crude declined 0.7%, or $0.40, to $53.34/bbl.

Reviewing Friday's economic data, which featured the Existing Home Sales report for January:

Existing home sales decreased 1.3% m/m in January to a seasonally adjusted annual rate of 5.46 million units (Briefing.com consensus 5.42 million) from a downwardly revised 5.53 million (from 5.54 million) in December. Total sales were up 9.6% year-over-year.
The key takeaway from the report is that the housing inventory for January was at its lowest level since 1999, demonstrating that there are serious inventory constraints in the existing home sales market, which is driving up prices and underscoring the importance of mortgage rates staying low for affordability purposes.

Investors will not receive any notable economic data on Monday.

Nasdaq Composite +6.7% YTD
S&P 500 +3.3% YTD
Dow Jones Industrial Average +1.6% YTD
Russell 2000 +0.6% YTD

Market Snapshot
Dow 28992.32 -227.57 (-0.78%)
Nasdaq 9576.63 -174.37 (-1.79%)
SP 500 3337.75 -35.48 (-1.05%)
10-yr Note +27/32 1.469
NYSE Adv 852 Dec 1999 Vol 1.1 bln
Nasdaq Adv 985 Dec 2161 Vol 2.7 bln

Industry Watch
Strong: Information Technology, Consumer Discretionary, Communication Services
Weak: Consumer Staples, Real Estate, Health Care

Moving the Market

-- Stocks sell off amid coronavirus and valuation concerns

-- Weakness in the cyclical sectors, especially information technology; relative strength in bond proxies

-- U.S. Treasuries and gold post decent gains; 30-yr yield sets new all-time low (1.89%)

WTI crude closes lower but still ends week noticeably higher
21-Feb-20 15:25 ET
Dow -268.91 at 28950.98, Nasdaq -195.71 at 9555.29, S&P -39.92 at 3333.31

[BRIEFING.COM] The S&P 500 is down 1.2% and is on pace to end the week with a loss greater than 1.4%.

One last look inside the benchmark index shows eight of the 11 sectors trading in the red. The top-weighted information technology sector (-2.6%) is today's outright laggard amid broad-based selling, while the consumer staples (+0.3%), real estate (+0.3%), and utilities (+0.2%) sectors trade higher.

WTI crude declined 0.7%, or $0.40, to $53.34/bbl but still finished the week up 2.8%.

[ReturntoSender]

Stock market sells off more than 3% on widening spread of coronavirus
24-Feb-20 16:20 ET

Dow -1031.60 at 27960.72, Nasdaq -355.31 at 9221.32, S&P -111.86 at 3225.89

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

[BRIEFING.COM] The stock market sold off more than 3% on Monday following a surge in coronavirus cases outside China, including South Korea, Italy, and Iran. The Dow Jones Industrial Average (-3.6%), S&P 500 (-3.4%), and Russell 2000 (-3.0%) each turned negative for the year, while the Nasdaq Composite (-3.7%) gave up most of its monthly gains.

Governments took swift action to help contain the outbreak, such as closing public spaces, but weakness in foreign equity markets reflected concerns about the possibility of a global pandemic. South Korea's Kospi fell 3.9%, and Italy's MIB fell 5.4%. China's Shanghai Composite declined just 0.3% amid reports that the rate of new coronavirus cases may have peaked in the region.

The World Health Organization (WHO) said that the drop in infections in China is "real" due to Beijing's aggressive approach. It remained unclear, however, if the virus would continue to worsen in a way that further impedes economic activity that consequently hurts earnings prospects.

In turn, de-risking efforts were widespread with all 11 S&P 500 sectors finishing in negative territory, including seven that dropped at least 3.0%. The energy (-4.7%), information technology (-4.2%), and consumer discretionary (-3.5%) sectors led the retreat, while the utilities sector (-1.2%) declined the least.

Technology and travel stocks, such as Advanced Micro Devices (AMD 49.12, -4.16, -7.8%) and American Airlines (AAL 25.45, -2.37, -8.5%), sold off on concerns that their businesses would be hurt by the coronavirus. Many health care names like UnitedHealth (UNH 277.79, -23.64, -7.8%) were additionally pressured by Senator Bernie Sanders (I-VT) decisively winning the Nevada caucuses.

Away from equities, investors continued to seek safety in gold ($1676.70/ozt, +27.80, +1.7%) and U.S. Treasuries given the growth concerns and weakness in stocks. Hedging interest against further downside was also on full display by the 46.6% surge in the CBOE Volatility Index (25.03, +7.95).

The 2-yr yield and the 10-yr yield fell nine basis points each to 1.26% and 1.38%, respectively. The U.S. Dollar Index finished flat at 99.30. WTI crude dropped 3.9%, or $2.09, to $51.25/bbl.

Separately, Newmont Goldcorp (NEM 50.26, +0.82, +1.7%) and Gilead Sciences (GILD 72.90, +3.20, +4.6%) exhibited relative strength throughout the day. Newmont set a 52-week high amid the continued strength in gold prices, while Gilead benefited from an acknowledgement from WHO that its Remdesivir drug is the only drug that appears to be effective in treating the coronavirus.

Investors did not receive any economic data on Monday. Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for February, the FHFA Housing Price Index for February, and the S&P Case-Shiller Home Price Index for December on Tuesday.

Nasdaq Composite +2.8% YTD
S&P 500 -0.2% YTD
Dow Jones Industrial Average -2.0% YTD
Russell 2000 -2.4% YTD


Market Snapshot
Dow 27960.72 -1031.60 (-3.56%)
Nasdaq 9221.32 -355.31 (-3.71%)
SP 500 3225.89 -111.86 (-3.35%)
10-yr Note +32/32 1.367

NYSE Adv 290 Dec 2607 Vol 1.2 bln
Nasdaq Adv 459 Dec 2781 Vol 3.1 bln


Industry Watch
Strong: Utilities

Weak: Energy, Information Technology, Consumer Discretionary


Moving the Market
-- Stock market drops more than 3% as coronavirus cases surge outside China, including South Korea, Italy, and Iran

-- Weakness in technology and travel stocks

-- Treasuries and gold rally in flight to safety; 10-yr yield nears all-time low from 2016



WTI crude erases monthly gain
24-Feb-20 15:25 ET

Dow -823.75 at 28168.57, Nasdaq -291.06 at 9285.57, S&P -90.11 at 3247.64
[BRIEFING.COM] The S&P 500 is currently down 2.8%, reducing its yearly gain to 0.5%.

One last look at the S&P 500 sectors shows all 11 groups trading with losses. The energy sector (-4.0%) continues to lead the retreat with a huge loss, while the utilities sector (-0.6%) is down modestly given its defensive-oriented, and rate-sensitive, bias.

WTI crude fell 3.9% (-$2.09) to $51.25/bbl to give up its monthly gain.

[ReturntoSender]

Market Remains on Edge as Growth Concerns Build
06-Mar-20 16:25 ET
Dow -256.50 at 25864.78, Nasdaq -162.98 at 8575.62, S&P -51.57 at 2972.37

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

[BRIEFING.COM] The stock market ended a volatile week on a lower note with the S&P 500 (-1.7%) settling just above its low from Monday. The benchmark index gained 0.6% for the week while the Dow Jones Industrial Average (-1.0%) outperformed, gaining 1.8% since last Friday.

The final session of the week was marred by a continued deterioration of sentiment due to the ongoing spread of the coronavirus while the pressure on growth expectations intensified. Treasuries essentially never stopped after Thursday's cash close, continuing their forceful charge in the overnight futures market. Treasuries did pull back from their highs in midday trade, but the long bond rallied to a fresh record high in the afternoon while the 10-yr note stopped a bit short of its best level of the day. The 10-yr yield fell 22 basis points to 0.71%, representing a 42-basis point drop for the week.

Expectations for another sharp rate cut remain in place with the fed funds futures market pointing to a 56.0% implied likelihood of a 75-basis point rate cut at or before the conclusion of the FOMC meeting on March 18.

The S&P 500 staged a 70-point rally during the final hour of trade, which led to a significant improvement in final sector standings, though all eleven sectors finished in the red.

Four groups surrendered 2.0% or more. Energy (-5.6%) and financials (-3.3%) were particularly weak throughout the day due to their exposure to growth and concerns about issuers of high-yield debt in the energy sector.

Bank stocks suffered from the drop in Treasury yields while energy companies struggled as oil fell $4.57, or 10.0%, to $41.32/bbl. The energy component ended the day at its lowest level since mid-2016 after OPEC+ could not agree to a sharp production cut despite yesterday's reports to the contrary. Russia's Energy Minister, Alexander Novak, said that OPEC+ countries are free to pump at will starting from April 1.

Airline stocks like Alaska Air (ALK 45.21, +1.75, +4.0%), JetBlue Airways (JBLU 13.88, +0.02, +0.1%), United Airlines (UAL 52.10, +0.51, +1.0%), and Delta Air Lines (DAL 45.89, +0.88, +2.0%) recorded gains on Friday after recovering from fresh multi-year lows. Alaska Air did warn that its guidance for FY20 should no longer be relied upon due to coronavirus-related uncertainty.

Shares of cruise operators started the day in positive territory but retreated as the day went on. Norwegian Cruise Line Holdings (NCLH 27.10, -1.49, -5.2%) was the weakest performer of the bunch, stopping just above its record low (24.16) that was notched when the company went public in early 2013.

In company-specific news, Costco (COST 311.28, -4.48, -1.4%) reported better than expected Q2 results, but the stock still finished lower. AMD (AMD 48.59, +0.48, +1.0%) fared better than the broader market after reaffirming its guidance for FY20. The chipmaker did caution that Q1 results are likely to be on the low end of its guidance.

The CBOE Volatility Index (VIX 42.14, +2.52, +6.4%) hit an 11-year high at 54.39%, before pulling back as the market jumped off lows in late trade.

Reviewing today's economic data:

February nonfarm payrolls increased by 273,000 (Briefing.com consensus 170,000). Job gains have averaged 243,000 over the last three months. January nonfarm payrolls revised to 273,000 from 225,000
February private sector payrolls increased by 228,000 (Briefing.com consensus 160,000). January private sector payrolls revised to 222,000 from 206,000
February unemployment rate was 3.5% (Briefing.com consensus 3.6%), versus 3.6% in January. Persons unemployed for 27 weeks or more accounted for 19.2% of the unemployed versus 19.9% in January
February average hourly earnings were up 0.3% (Briefing.com consensus +0.3%) after increasing 0.2% in January. Over the last 12 months, average hourly earnings have risen 3.0%, versus 3.1% for the 12 months ending in January
The average workweek in February was 34.4 hours (Briefing.com consensus 34.3), versus 34.3 hours in January
The labor force participation rate was unchanged at 63.4%
The trade deficit narrowed to $45.3 billion (Briefing.com consensus -$46.0 billion) in January from an upwardly revised -$48.6 billion (from -$48.9 bln) in December.
The key takeaway from the report is that it featured a decline in both exports and imports; however, the understanding that this is a January report (i.e. doesn't capture the brunt of the coronavirus impact) will diminish market interest in it
Wholesale inventories decreased by 0.4% in January (Briefing.com consensus -0.2%) after decreasing 0.3% in December
Total consumer credit increased by $12.00 bln in January (Briefing.com consensus $17.50 bln) after increasing a revised $20.20 bln (from $22.00 bln) in December.

There is no economic data on Monday's schedule.

Nasdaq Composite -4.4% YTD
S&P 500 -8.0% YTD
Dow Jones Industrial Average -9.4% YTD
Russell 2000 -13.1% YTD

Market Snapshot
Dow 25864.78 -256.50 (-0.98%)
Nasdaq 8575.62 -162.98 (-1.87%)
SP 500 2972.37 -51.57 (-1.71%)
10-yr Note +28/32 0.706
NYSE Adv 521 Dec 2260 Vol 1.61 bln
Nasdaq Adv 681 Dec 2547 Vol 4.26 bln

Industry Watch
Strong: Industrials, Consumer Discretionary
Weak: Financials, Energy, Materials, Technology

Moving the Market

Stocks remain pressured by plunging growth expectations/falling Treasury yields

Better than expected February jobs report overlooked by the market

Crude Oil Near Four-Year Low
06-Mar-20 15:25 ET
Dow -649.40 at 25471.88, Nasdaq -290.22 at 8448.38, S&P -97.30 at 2926.64

[BRIEFING.COM] The S&P 500 trades lower by 3.2% going into the final 30 minutes of the session.

The benchmark index has jumped more than 25 points over the past 30 minutes as the magnitude of moves in the market remains amplified. The S&P 500 has narrowed this week's loss to 0.9% while the Dow (-2.5%) is up 0.3% for the week.

Crude oil fell $4.57, or 10.0%, to $41.32/bbl, ending the day at its lowest level since mid-2016 after OPEC+ failed to reach an agreement to reduce output.

[ReturntoSender]

Stocks Surge to End Wild Week
13-Mar-20 16:20 ET
Dow +1985.00 at 23185.62, Nasdaq +672.43 at 7874.23, S&P +230.31 at 2711.02

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

[BRIEFING.COM] The stock market rebounded on Friday, though the advance still left the major averages deep in the red for the week. The S&P 500 rallied 9.3%, narrowing this week's loss to 8.8% while the Russell 2000 (+7.7%; -16.6% for the week) underperformed.

Stocks jumped out of the gate after equity futures hit a circuit breaker, but this time, it was to the upside. The early rally set expectations for a strong rebound, but the bulk of the cash session was not as inspiring. The first three hours of trade saw a pullback, during which the S&P 500 approached yesterday's closing level. The index returned to its starting mark in midday trade, but regrouped and staged a huge 6.7% rally in the last 30 minutes as the president was discussing measures to deal with the coronavirus.

Lawmakers in Washington neared an agreement on some fiscal relief measures while President Trump declared a national emergency during a late-afternoon speech. The declaration will allow up to $50 bln in spending. Separately, the president said interest on student loans will be waived until further notice and that the U.S. will be purchasing oil to fill the Strategic Petroleum Reserve.

All eleven sectors ended on their highs, which masked intraday volatility. The CBOE Volatility Index (VIX 57.83, -17.64, -23.4%) climbed above yesterday's high before pulling back, indicating the presence of expectations for a continuation of a bumpy ride.

Financials (+13.2%) were at the forefront of today's advance, narrowing this week's loss to 9.8%. The Federal Reserve conducted another emergency liquidity operation, offering to buy Treasury securities of different maturities throughout the day to alleviate significant stress in the Treasury market, which caused bid/ask spreads on longer tenors to widen notably. Treasuries ended the day on a mostly lower note with the 10-yr yield rising ten basis points to 0.95%.

The top-weighted technology sector (+12.0%) also outperformed with Apple (AAPL 277.97, +29.74, +12.0%) rising amid reports that the company's stores in China have reopened. The PHLX Semiconductor Index (+10.9%) finished a bit ahead of the sector thanks to gains in all 30 components. Broadcom (AVGO 234.22, +15.44, +7.1%) missed Q1 expectations and withdrew its guidance for FY20 but recovered its loss during the market's late rally.

The energy sector (+8.8%) was among the weakest performers, trimming this week's loss to 24.3%, which still left the group well behind the other sectors. The sector backed down from its starting high alongside a pullback in crude oil, which ended the day higher by $0.23, or 0.7%, at $31.80/bbl after hitting a session high of $33.87/bbl.

Reviewing today's economic data:

Import prices declined 0.5% month-over-month in February and were up 0.3% excluding fuel. Export prices were down 1.1%, and down 1.0% excluding agricultural products. On a year-over-year basis, import prices were down 1.2%, and down 0.7% excluding fuel. Export prices were down 1.3% yr/yr, and down 1.6% excluding agricultural products.
The key takeaway from the report is that inflation is still missing for the most part in terms of both import and export prices.
The preliminary March reading for the University of Michigan's Index of Consumer Sentiment showed a drop to 95.9 (Briefing.com consensus 96.0) from the final reading of 101.0 for February.
The key takeaway from the report is that sentiment has been shaken by the spread of the coronavirus and the sharp decline in stock prices, both of which are weighing on expectations that should translate into lower levels of consumer spending activity.

Monday's economic data will be limited to the 8:30 ET release of the Empire State Manufacturing Survey (prior 12.9) and Net Long-Term TIC Flows at 16:00 ET (prior $85.60 bln).

Nasdaq Composite -12.2% YTD
S&P 500 -16.1% YTD
Dow Jones Industrial Average -18.8% YTD
Russell 2000 -27.5% YTD

Market Snapshot
Dow 23185.62 +1985.00 (9.36%)
Nasdaq 7874.23 +672.43 (9.34%)
SP 500 2711.02 +230.31 (9.28%)
10-yr Note -1 6/32 0.951
NYSE Adv 2536 Dec 352 Vol 2.01 bln
Nasdaq Adv 2443 Dec 878 Vol 4.61 bln

Industry Watch
Strong: Financials, Information Technology
Weak: Energy, Utilities, Health Care

Moving the Market

-- Stocks recoup some losses from yesterday's awful day but are trading near session lows

-- Global central banks step up stimulus/liquidity efforts

-- Fiscal relief package reportedly close to being reached

President Trump Expected to Speak Soon
13-Mar-20 15:25 ET
Dow +902.15 at 22102.87, Nasdaq +280.87 at 7482.68, S&P +103.29 at 2583.93

[BRIEFING.COM] The S&P 500 is higher by 3.8%, trading about 50 points below its session high.

President Trump is expected to declare a national coronavirus emergency during an address from the White House. The address was scheduled to begin at 15:00 ET.

Crude oil climbed $0.23, or 0.7%, to $31.80/bbl today, but fell nearly $10.00, or 23.0%, for the week. The energy sector (+1.8%) continues holding a portion of its gain, but it is set to end the week behind the remaining ten sectors with a loss of 29.2%.

[ReturntoSender]

Market plummets with worst losses since 1987 as growth concerns dominate
16-Mar-20 16:25 ET
Dow -2997.10 at 20188.52, Nasdaq -970.28 at 6903.95, S&P -324.89 at 2386.13

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

[BRIEFING.COM] There was a crisis of confidence in the stock market today, which led to the worst day of losses since the crash of 1987. The Dow Jones Industrial Average declined 12.9%, the S&P 500 fell 12.0%; the Nasdaq Composite dropped 12.3%; and the Russell 2000 plunged 14.3%.

Confidence was lacking in the monetary policy response; it was lacking in the fiscal response; and it was lacking in the outlook for economic growth and earnings prospects.

The lack of confidence kicked in overnight when the futures market went limit down after the Federal Reserve announced a stunning series of policy measures aimed at supporting the financial markets and the flow of credit.

Specifically, the target range for the fed funds rate was cut by 100 basis points to 0.00% to 0.25%, the discount rate was cut by 150 basis points to 0.25%, a $700 billion quantitative easing program is being implemented, there was coordinated central bank action to enhance liquidity via standing U.S. dollar liquidity swap line arrangements, and bank reserve requirement ratios were reduced to 0.00%, effective March 26.

The policy effort is laudable, yet market participants quickly made it known that it isn't thought to be enough to turn the tide of deteriorating confidence on Main Street and Wall Street.

That confidence has been shaken by a multitude of announcements that made it clear the U.S. economy -- the world's largest economy -- is rapidly sliding into a shutdown mode that will severely curtail earnings prospects and will raise the specter of recession in coming months.

Those announcements included forced closures of restaurants and bars in some states; airlines further cutting their flight capacity further; more and more schools announcing extended closures; Apple (AAPL 242.21, -35.76, -12.9%), and other retailers, announcing that they will voluntarily close their stores; Wynn Resorts (WYNN 54.80, -17.82, -24.4%) and MGM Resorts (MGM 10.25, -5.19, -33.6%) noting they will temporarily suspend their casino/resort operations in Las Vegas; the president recommending to avoid gatherings of 10 or more people; and the city of San Francisco issuing an order for residents to stay inside, except for essential purposes.

In other developments, Canada announced it will be closing its borders to non-citizens, with the exception of permanent residents and Americans. The EU, meanwhile, discussed closing borders for 30 countries to foreigners.

These developments were all part of a mosaic that undermined consumer confidence and investor confidence. The latter was further impacted by a sense of angst that the government has not gone far enough with its fiscal stimulus plans to effectively mitigate the economic fallout from the growing wave of "cocooning" that is expected to lead to a major retrenchment in consumer and business spending and large job losses as a result of that retrenchment.

There was some chatter during the day that the White House is pushing an $800 billion stimulus proposal, half of which would involve a payroll tax cut, and an assistance package for the airline industry. Separately, Senate Minority Leader Schumer was reportedly floating a $750 billion stimulus proposal.

Notwithstanding those ideas, there was nothing concrete as a step-up measure on the fiscal side to alter investor confidence. The end result was wholesale selling of risk assets, which escalated further in the final hour as President Trump and his coronavirus task force conducted a press conference, which featured a suggestion that the trajectory of the virus might not peak until July or August. Importantly, though, it didn't feature any announcement of a fiscal stimulus plan.

The major indices all closed at, or near, their lows for the day, pressured by double-digit percentage losses in ten of the 11 sectors. The lone exception was the consumer staples sector (-7.0%); otherwise, losses ranged from 10.0% (health care) to 16.6% (real estate) in an historic day of trading. All 30 Dow components ended lower, with more than half suffering double-digit percentage losses. Boeing (BA 129.61, -40.59, -23.9%) was the biggest laggard.

Reviewing today's economic data:

The New York Fed's Empire State Manufacturing Survey fell to -21.5 in March (Briefing.com consensus 4.7) from 12.9 in February. The dividing line between expansion and contraction is 0.0.

Tuesday's economic releases will include Retail Sales and Industrial Production for February, Business Inventories for January, and the NAHB Housing Market Index for March.

Nasdaq Composite: -23.0%
S&P 500: -26.1%
Dow Jones Industrial Average: -31.7%
Russell 2000: -41.8%

[ReturntoSender]

Stock market loses 4% to end ugly week
20-Mar-20 16:15 ET
Dow -913.21 at 19174.04, Nasdaq -271.06 at 6878.87, S&P -104.47 at 2304.92

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

[BRIEFING.COM] An early rebound effort quickly turned into losses on this quadruple-witching expiration Friday, as investors continued to grapple with the persistent shutdown of the economy. The S&P 500 (-4.3%), Dow Jones Industrial Average (-4.6%), and Russell 2000 (-4.2%) declined more than 4.0%, while the Nasdaq Composite declined 3.8%.

California ordered residents to stay at home, except for essential needs, until further notice last night, but stocks started today's session on a higher note amid hopes for a rebound. It wasn't until New York announced similar stay-at-home restrictions that optimism started to unravel, as it contributed to the notion that more states will follow suit to limit the spread of the coronavirus.

Later, London announced the closure of pubs and restaurants, New Jersey ordered non-essential businesses to close, and the Chicago Tribune reported that Illinois will issue its own shelter-in-place order. President Trump also said that the southern border with Mexico will be closed to non-essential travel.

Washington continued to work on a $1 trillion+ stimulus package to soften the economic impact caused by these disruptions, but today's orderly retreat suggested that it might not be enough to meaningfully address the magnitude of these shutdowns. According to Bloomberg, Treasury Secretary Mnuchin believes the stimulus bill is too small.

Losses were widespread, but the energy sector (+1.0%) was able to buck the broader trend, and trim its huge weekly decline, despite an 8% decline in oil prices ($23.73/bbl, -2.17, -8.4%). The utilities (-8.2%) and consumer staples (-6.5%) sectors were today's weakest performers.

The Fed remained active in trying to further support the financial system. On Friday, the Fed expanded its Money Market Mutual Fund Liquidity Facility (MMLF) to accept municipal debt and stepped up its purchases of Treasury and mortgage-backed securities. The New York Fed said it will now conduct two repo operations totaling $1 trillion for the rest of the month.

U.S. Treasuries gained buying interest amid the selling in equities and actions taken by the Fed. The 2-yr yield declined three basis points to 0.37%, and the 10-yr yield declined 18 basis points to 0.94%. The U.S. Dollar Index finished flat at 102.72.

Friday's economic data was limited to Existing Home Sales, which increased 6.5% m/m in February to a seasonally adjusted annual rate of 5.77 million units (Briefing.com consensus 5.50 million). This follows a downwardly revised 5.42 million (from 5.46 million) in January.

The key takeaway from the report is that existing home sales activity was robust in February based on contract signings that happened in December and January. Next month could look reasonably good, too, but the excitement over this report has been tempered by expectations that a meaningful slowdown will soon follow because of the coronavirus impact.

Looking ahead, the NYSE will temporarily shift to fully electronic trading on Monday and investors will not receive any notable economic data.

Nasdaq Composite: -23.3%
S&P 500: -28.7%
Dow Jones Industrial Average: -32.8%
Russell 2000: -39.2%

Market Snapshot
Dow 19174.04 -913.21 (-4.55%)
Nasdaq 6878.87 -271.06 (-3.79%)
SP 500 2304.92 -104.47 (-4.34%)
10-yr Note +27/32 0.881
NYSE Adv 1295 Dec 1617 Vol 2.7 bln
Nasdaq Adv 1303 Dec 1971 Vol 5.2 bln

Industry Watch
Strong: Energy
Weak: Utilities, Consumer Staples

Moving the Market

-- Stock market loses 4% as economies continue to shut down

-- New York and California order stay-at-home restrictions

-- Fed announces it will increase daily repo operations to $1 trillion

-- Heavy volume on this quadruple-witching expiration day

WTI crude falls 8% after yesterday's rebound
20-Mar-20 15:35 ET
Dow -478.19 at 19609.06, Nasdaq -129.72 at 7020.21, S&P -60.52 at 2348.87

[BRIEFING.COM] The S&P 500 is down 2.6% and is on pace to end the week down more than 13%.

One last look at the S&P 500 sectors shows all 11 sectors trading lower, although the energy sector is down just 0.3%. Interestingly, the defensive-oriented utilities (-4.8%) and consumer staples (-4.7%) are among today's weakest performers.

WTI crude settled down $2.17 (-8.4%) to $23.73/bbl following yesterday's 23% rebound.

[ReturntoSender]

S&P 500 rebounds nearly 10% on fiscal stimulus hopes
24-Mar-20 16:15 ET
Dow +2112.98 at 20704.97, Nasdaq +557.18 at 7417.21, S&P +209.93 at 2447.33

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

[BRIEFING.COM] The S&P 500 surged 9.4% on Tuesday, as news that the elusive fiscal stimulus package was close to being agreed to in the Senate spurred a broad-based rebound. The Dow Jones Industrial Average climbed 11.4%, the Nasdaq Composite climbed 8.1%, and the Russell 2000 climbed 9.4%.

All 11 S&P 500 sectors posted strong gains, especially the energy (+16.3%), financials (+12.8%), and industrials (+12.8%) sectors. The consumer staples sector (+4.8%) was the lone sector to advance less than 5.0%.

Lawmakers continued to narrow their differences on the stimulus bill, with Senate Minority Leader Schumer (D-NY) placing negotiations "on the two-yard line" around lunchtime. According to CNBC, the White House is hopeful to have an agreement in principle by "sunset," but noted it was unlikely that an actual Senate vote would take place tonight.

An agreement is needed to restore some confidence for consumers, investors, and businesses during the economic shutdowns across the country. The Fed has already stepped in numerous times to expand credit and liquidity, while President Trump today provided a goal for when he wants the economy to reopen despite the outbreak.

Specifically, President Trump said he would love to have the country open for business by Easter (April 12) but will decide based on expert input from health officials. New York Governor Cuomo, who has been very active in trying to slow the rising rate of infections, empathized with the president but argued that we shouldn't "accelerate the economy at the cost of human life."

Nevertheless, the prospects of fiscal stimulus and possibly having the economy reopen in April, combined with some short-covering activity and a bargain-hunting mindset, helped the market bounce from a deeply oversold condition. Tuesday's huge gains cut the S&P 500's monthly decline to 17.2% and yearly decline to 24.3%.

Chevron (CVX 66.55, +12.33) was among today's largest gainers with shares rising 22.7%, as investors were pleased to hear that the company has no plans to cut its dividend despite the turmoil in the oil market. The company also cut its capital spending plan by $4 billion and suspended its share buyback program. WTI crude rose 1.9%, or $0.44, to $23.93/bbl on Tuesday.

U.S. Treasuries retreated for most of the day but did close off session lows. The 2-yr yield rose eight basis points to 0.37%, and the 10-yr yield rose five basis points to 0.82%. The U.S. Dollar Index declined 0.5% to 101.96. Gold futures rose 6.0% to $1659.80/ozt to extend its weekly advance following some positive-minded commentary out of Goldman Sachs.

Friday's lone economic report was New Home Sales for February, which decreased 4.4% m/m in February to a seasonally adjusted annual rate of 765,000 units (Briefing.com consensus 761,000) from an upwardly revised 800,000 (from 764,000) in January.

The key takeaway from the report is that it shows new home demand was strong in February, but that was before everything changed this month in the U.S. with the coronavirus situation, which is expected to severely weigh on home buying interest in the near term.

Looking ahead, investors will receive Durable Goods Orders for February, the FHFA Housing Price Index for March, and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite: -17.3%
S&P 500: -24.3%
Dow Jones Industrial Average: -27.5%
Russell 2000: -34.3%

Market Snapshot
Dow 20704.97 +2112.98 (11.37%)
Nasdaq 7417.21 +557.18 (8.12%)
SP 500 2447.33 +209.93 (9.38%)
10-yr Note -5/32 0.840
NYSE Adv 2677 Dec 240 Vol 1.7 bln
Nasdaq Adv 2831 Dec 460 Vol 4.3 bln

Industry Watch
Strong: Energy, Financials, Industrials
Weak: Consumer Staples

Moving the Market

-- S&P 500 rebounds nearly 10% on fiscal stimulus hopes

-- Senate could reportedly reach a deal in principle tonight

-- President Trump hopes to reopen the economy by Easter (April 12)

-- Market bounces from a deeply oversold condition

WTI crude settles 2% higher
24-Mar-20 15:30 ET
Dow +1810.58 at 20402.57, Nasdaq +493.60 at 7353.63, S&P +185.59 at 2422.99

[BRIEFING.COM] The S&P 500 continues to trade higher by 8.1%, while the Russell 2000 follows behind with a 7.5% gain.

One last look at the S&P 500 sector standings shows energy (+12.7%), financials (+10.9%), and industrials (+10.7%) up more than 10%, while the consumer staples sector (+4.5%) is the lone sector up less than 5.0%.

WTI crude settled up $0.44 (+1.9%) to $23.93/bbl.

[ReturntoSender]

Stocks extend rally after Senate approves stimulus bill, jobless claims surge
26-Mar-20 16:15 ET
Dow +1351.62 at 22552.23, Nasdaq +413.24 at 7796.89, S&P +154.51 at 2630.07

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

[BRIEFING.COM] The S&P 500 extended its weekly rally by 6.2% on Thursday after the Senate approved the $2 trillion fiscal stimulus package for the economy, which saw a record surge in weekly jobless claims. The Dow Jones Industrial Average rose 6.4%, the Nasdaq Composite rose 5.6%, and the Russell 2000 rose 6.3%.

Initial claims for the week ending March 21 increased by 3.001 million to 3.283 million (Briefing.com consensus 525,000), which was above most expectations but also unsurprising given the slew of economic shutdowns aimed at slowing the rate of coronavirus infections. For the market, and Congress, it quantified how bad the situation has been for American workers.

House Speaker Pelosi (D-CA) said the stimulus bill will be passed tomorrow by voice vote with "strong bipartisan support" despite some speculation that objecting members would request a roll call vote, which would further delay its passage. The impending fiscal relief, then, provided investors some reassurance while doing some quarter-end rebalancing.

The S&P 500 closed at session highs and up 20.0% from its Monday intraday low. All 11 S&P 500 sectors posted strong gains today between 4.3% (consumer discretionary) and 8.4% (utilities). Oil prices ($22.60, -1.93, -7.9%) were unable to catch a bid, though, partly due the oil industry not being included in this stimulus bill.

Prior to the open, Fed Chair Powell reiterated in an NBC "Today Show" interview that the Fed isn't going to run out of ammunition and will continue to provide credit to places that need it. The reminder that the Fed will be on the market's side in the foreseeable future was another positive consideration for the market.

In corporate news, semiconductor stocks drew support from Micron's (MU 44.79, +2.29, +5.4%) encouraging quarterly results and guidance. Henry Schein (HSIC 53.56, +3.53, +7.1%) was among the latest companies contributing to the fight against COVID-19 with an antibody rapid blood test for health care professionals.

U.S. Treasuries finished the session on a higher note, as the record number of unemployment claims reminded bond investors of the negative macro environment. The 2-yr yield declined four basis points to 0.26%, and the 10-yr yield declined five basis points to 0.81%. The U.S. Dollar Index fell back below 100.00, finishing 1.6% lower at 99.43.

Reviewing Thursday's economic data:

Initial claims for the week ending March 21 increased by 3,001,000 to 3,283,000. That is the highest seasonally adjusted number for initial claims by many miles. The prior record was 695,000 in October 1982. Continuing claims for the week ending March 14 increased by 101,000 to 1,803,000, but that number will skyrocket next week as well.
The key takeaway from the report is that it underscores for everyone how much worse the current economic situation is than anything else experienced in this modern age. It is a stark reflection that this time is different.
The third estimate for Q4 GDP showed a 2.1% annualized rate of growth that was in-line with the second estimate and the Briefing.com consensus estimate. Similarly, the GDP Price Deflator was left unchanged at 1.3%, as expected.
The key takeaway from the report is that it is inconsequential at this juncture. That would be the effective takeaway in normal times (we're less than a week away from the end of Q1), but things are no longer normal as the first quarter is ending with the U.S. economy in shutdown mode to help stop the spread of COVID-19.
The advance goods trade deficit totaled $59.89 bln in February after a $65.9 bln deficit in January. Advance retail inventories decreased 0.3% in February after decreasing 0.1% in January. Advance wholesale inventories decreased 0.5% in February after decreasing 0.5% in January.

Looking ahead, investors will receive Personal Income and Spending for February, PCE Prices for February, and the final University of Michigan Index of Consumer Sentiment for March on Friday.

Nasdaq Composite: -13.1%
S&P 500: -18.6%
Dow Jones Industrial Average: -21.0%
Russell 2000: -29.3%

Market Snapshot
Dow 22552.23 +1351.62 (6.38%)
Nasdaq 7796.89 +413.24 (5.60%)
SP 500 2630.07 +154.51 (6.24%)
10-yr Note +3/32 0.833
NYSE Adv 2578 Dec 382 Vol 1.6 bln
Nasdaq Adv 2715 Dec 561 Vol 3.9 bln

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

Moving the Market

-- S&P 500 climbs more than 6%, extending its rally to 20% from its recent low

-- Weekly jobless claims surged to a record 3.283 million

-- Senate approved $2 trillion stimulus bill, as expected; House will vote on bill tomorrow

WTI crude loses nearly 8% despite equity rally
26-Mar-20 15:25 ET
Dow +934.30 at 22134.91, Nasdaq +296.37 at 7680.02, S&P +115.67 at 2591.23

[BRIEFING.COM] Little has changed in the market with the S&P 500 continuing to trade higher by 4.5%. The small-cap Russell 2000 is up 4.8%.

One last look at the S&P 500 sectors shows the utilities sector (+7.2%) still leading the advance, followed by the real estate sector (+5.9%). The consumer discretionary sector (+2.7%) is up the least, falling behind the materials sector (+3.3%).

WTI crude futures settled down $1.93 (-7.9%) to $22.60/bbl, as investors remained bearish due to the well-documented struggles with the market. The fact that the oil industry wasn't included in the stimulus bill may have added to the poor sentiment.

[ReturntoSender]

Stocks end strong week on lower note amid profit taking
27-Mar-20 16:20 ET
Dow -915.39 at 21636.84, Nasdaq -295.16 at 7501.73, S&P -88.60 at 2541.47

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

[BRIEFING.COM] The S&P 500 declined 3.4% on Friday after a rebound effort faded into the close, as investors took weekly profits. The benchmark index had started the session down 4.2%, then cut its losses to just 0.5% after the House passed the $2 trillion stimulus bill in the afternoon.

The Dow Jones Industrial Average lost 4.1%, the Nasdaq Composite lost 3.8%, and the Russell 2000 lost 4.1%.

The stimulus bill will provide relief for U.S. households and businesses, as the rising number of coronavirus infections continues to keep much of America in shutdown mode. On a related note, the U.S. surpassed China and Italy for the most confirmed cases of COVID-19.

Before the close, United Airlines (UAL 32.84, -2.71, -7.6%) said it isn't going to conduct involuntary furloughs or pay cuts in the U.S. before September 30; however, it cautioned that air travel demand could remain suppressed possibly into next year.

In other words, it may have dampened hope for V-shape economic recovery. The market, meanwhile, had already been losing steam from its rebound effort prior to the memo. At session's end, the S&P 500 energy (-6.9%) and information technology (-4.6%) sectors led today's decline, while the utilities sector (+0.5%) closed higher.

Within the Dow, shares of Boeing (BA 162.00, -18.55, -10.3%) fell 10% after Treasury Secretary Mnuchin said the company has no plans of using government aid at this time. Procter & Gamble (PG 110.17, +2.79, +2.6%) bucked the broader trend after the stock was upgraded to Buy from Hold at Stifel.

In earnings news, lululemon athletica (LULU 32.84, -2.71, -7.6%) reported better-than-expected quarterly results, but shares fell alongside the broader market after a strong week.

U.S. Treasuries ended the week on a higher note, driving yields lower across the curve. The 2-yr yield declined three basis points to 0.23%, and the 10-yr yield declined six basis points to 0.75%. The U.S. Dollar Index declined 1.0% to 98.36. WTI crude lost another 4.2%, or $0.95, settling lower at $21.65/bbl.

Reviewing Friday's economic data:

Personal income increased 0.6% m/m in February (Briefing.com consensus +0.4%) while personal spending rose 0.2%, as expected. The PCE Price Index increased 0.1% while the core PCE Price Index, which excludes food and energy, rose 0.2%, both as expected.
The key takeaway from the report would have been that inflation remains subdued and that the income growth is a plus for consumer spending, but with the subsequent shutdown due to the coronavirus, the key takeaway now is that this February report is cold comfort in a world far different than the one that existed in February.
The final reading for the University of Michigan Index of Consumer Sentiment for March was revised down to 89.1 (Briefing.com consensus 95.7) from the preliminary reading of 95.9. The final reading for February was 101.0.
The key takeaway from the report is that it captures the leading wave of the change in consumer sentiment, which is deteriorating rapidly in the face of the coronavirus impact on the U.S. economy. According to the report, the 11.9-point drop from February is the fourth largest one-month decline in nearly a half century.

Looking ahead, Pending Home Sales for February on Monday.

Nasdaq Composite: -16.4%
S&P 500: -21.3%
Dow Jones Industrial Average: -24.2%
Russell 2000: -32.2%

Market Snapshot
Dow 21636.84 -915.39 (-4.06%)
Nasdaq 7501.73 -295.16 (-3.79%)
SP 500 2541.47 -88.60 (-3.37%)
10-yr Note +17/32 0.679
NYSE Adv 651 Dec 2302 Vol 1.4 bln
Nasdaq Adv 844 Dec 2500 Vol 3.9 bln

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

Moving the Market

-- Stocks close lower in profit-taking trade

-- House passes $2 trillion stimulus bill

-- Relative weakness in energy stocks, oil prices

Carnival in talks to raise $7 billion in new debt
27-Mar-20 15:25 ET
Dow -324.83 at 22227.40, Nasdaq -108.84 at 7688.05, S&P -24.69 at 2605.38

[BRIEFING.COM] The S&P 500 currently trades at session highs with a 1.0% decline.

Bloomberg reported earlier that Carnival (CCL 14.60, -3.23, -18.0%) is in discussions to raise $7 billion in new debt. Shares have barely reacted to the report, as the stock is already taking it on the chin with an 18% decline.

WTI crude settled today's session down $0.95 (-4.2%) to $21.65/bbl, extending its weekly decline to 8.8%, as little was done to help the struggling oil industry this week.

[ReturntoSender]

Stock market closes quarter on lower note
31-Mar-20 16:15 ET
Dow -410.32 at 21917.22, Nasdaq -74.05 at 7699.45, S&P -42.06 at 2584.59

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

[BRIEFING.COM] The stock market ended the tumultuous first quarter in negative territory on Tuesday, while investors continued to assess the latest news on the coronavirus and the policies proposed to address its impact. The S&P 500 closed near session lows with a 1.6% decline after a brief stay in positive territory early in the session.

The Dow Jones Industrial Average lost 1.8%, the Nasdaq Composite lost 1.0%, and the Russell 2000 lost 0.5%.

Notably, President Trump said a $2 trillion infrastructure bill should be included in the fourth part of a stimulus bill with U.S. interest rates near zero. Prior to the statement, Bloomberg reported that White House officials were looking into a $600 billion relief bill for mortgage markets, the travel industry, and state governments.

There was another story from a Bloomberg reporter that President Trump approved a proposal pushed for by some businesses to delay payment of certain tariffs by 90 days. An announcement could come as soon as this week. Market reaction was muted, although shares of Caterpillar (CAT 116.04, +4.33, +3.9%) likely benefited from the president's infrastructure proposal.

Instead, quarter-end rebalancing contributed to the outperformance of the distressed energy sector (+1.6%) and, conversely, the sharp declines in the defensive-oriented utilities (-4.0%) and real estate (-3.3%) sectors.

On the coronavirus front, NIAID Director Dr. Fauci said there have been "glimmers of hope" that social distancing is helping to curtail the spread of COVID-19, but the situation remained dire with the number of infections continuing to rise in the U.S. On a related note, Texas Governor Abbott issued a "stay at home" order until May 4.

Separately, the Fed established a repurchase agreement facility as an alternative source for foreign central banks to temporarily exchange their U.S. Treasury securities for U.S. dollars. This was simply the latest "whatever it takes" action by the Fed to support financial markets.

U.S. Treasuries had a relatively quiet day, ultimately closing mixed and little changed. The 2-yr yield declined one basis point to 0.20%, while the 10-yr yield increased three basis points to 0.70%. The U.S. Dollar Index declined 0.2% to 98.99. WTI crude increased 1.5% to $20.52/bbl, although it was up more than 8% in the session.

Reviewing Tuesday's economic data:

The Conference Board's Consumer Confidence Index for March dropped to 120.0 (Briefing.com consensus 110.0) from an upwardly revised 132.6 (from 130.7) for February. The March reading is the lowest since July 2017.
The key takeaway from the report is that the downturn was not as bad as feared; however, the prevailing expectation is that consumer confidence will get much worse due to the impact of the coronavirus and its effect on consumer attitudes about job security and income growth prospects.
The Chicago PMI decreased to 47.8 in March (Briefing.com consensus 40.0) from 49.0 in February.
The S&P Case-Shiller Home Price Index for January increased 3.1% following an upwardly revised 2.8% increase in December (from +2.9%).

Looking ahead, investors will receive the ISM Manufacturing Index for March, the ADP Employment Change Report for March, Construction Spending for February, the weekly MBA Mortgage Applications Index, and auto and truck sales for March on Wednesday.

Nasdaq Composite: -14.2%
S&P 500: -20.0%
Dow Jones Industrial Average: -23.2%
Russell 2000: -30.9%

Market Snapshot
Dow 21917.22 -410.32 (-1.84%)
Nasdaq 7699.45 -74.05 (-0.95%)
SP 500 2584.59 -42.06 (-1.60%)
10-yr Note +4/32 0.686
NYSE Adv 1293 Dec 1598 Vol 1.7 bln
Nasdaq Adv 1630 Dec 1642 Vol 4.0 bln

Industry Watch
Strong: Energy
Weak: Real Estate, Utilities

Moving the Market

-- Stocks falter on final day of quarter

-- White House reportedly discussing plans for "phase four" relief bill; President Trump proposes $2 trillion infrastructure bill

-- Fed creates temporary repurchase facility for foreign central banks

WTI crude posts modest gain as stocks fall to session lows
31-Mar-20 15:25 ET
Dow -413.14 at 21914.40, Nasdaq -117.06 at 7656.44, S&P -49.88 at 2576.77

[BRIEFING.COM] The S&P 500 is trading at session lows with a 2.0% decline.

One last look at the S&P 500 sectors shows all trading in the red, led lower by real estate (-4.8%), utilities (-3.6%), and financials (-3.5%). The energy sector is down just 0.4%.

WTI crude settled today's session up $0.30 (+1.5%) to $20.52/bbl, although it was up by more than 8% earlier in the session.

[ReturntoSender]

Stock market loses 4% to start second quarter
01-Apr-20 16:15 ET
Dow -973.65 at 20943.57, Nasdaq -339.52 at 7359.93, S&P -114.09 at 2470.50

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

[BRIEFING.COM] The stock market retreated more than 4% to start the second quarter on Wednesday, as President Trump warned that the next two weeks will be "very painful" in terms of coronavirus fatalities. The S&P 500 (-4.4%), Dow Jones Industrial Average (-4.4%), and Nasdaq Composite (-4.4%) each fell 4.4%. The Russell 2000 underperformed with a 7.1% decline.

The coronavirus task force on Tuesday estimated that deaths attributed to COVID-19 could total 100,000-240,000 in the U.S. with daily deaths projected to peak in two weeks. To help contain the outbreak, and hopefully bring these figures down, Florida, Nevada, and Pennsylvania joined the growing list of states to issue 'stay at home' orders for 30 days.

Original assumptions made by the medical community were based on the data coming out of China, which the U.S. intelligence community said underrepresented the real number of cases and deaths in the country, according to Bloomberg. The White House's projections, based on new data being released every day, had the market worried about the social and psychological effects on the economy.

In turn, no S&P 500 sector was spared in today's sell-off with ten sectors losing at least 3.0%, including 6.1% declines in the real estate and utilities sectors. The consumer staples sector performed relatively better with a 1.8% decline.

Economic data for March showed the manufacturing sector contract and private-sector hiring decline, as expected, due to the coronavirus. Many market participants, however, expect the data to worsen with Boston Fed President Rosengren expecting unemployment to increase "dramatically."

In the oil market, The Wall Street Journal reported that President Trump will meet with the CEOs of some of the largest U.S. oil companies on Friday to discuss how the government can help the industry. WTI crude spiked on the news before settling down 1.0%, or $0.20, to $20.32/bbl.

Separately, tucked behind the macro headlines was Xerox (XRX 17.60, -1.34, -7.1%) withdrawing its offer to acquire HP Inc (HPQ 14.84, -2.52, -14.5%), Marriott (MAR 69.15, -5.66, -7.6%) disclosing a data breach that affected 5.2 million customers, and Macy's (M 4.43, -0.48, -9.8%) being removed from the S&P 500.

U.S. Treasuries finished mixed with longer-dated Treasuries advancing in a safe-haven bid. The 2-yr yield increased two basis points to 0.22%, while the 10-yr yield declined six basis points to 0.64%. The U.S. Dollar Index rose 0.5% to 99.50.

Reviewing Wednesday's economic data:

The ISM Manufacturing Index for March registered a reading of 49.1% (Briefing.com consensus 43.3%), down from 50.1% in February. The dividing line between expansion and contraction is 50.0%.
The key takeaway for some will be that the number wasn't as bad as feared, but lost in that takeaway is the fact that the overall index was supported by a sizable uptick in the supplier deliveries index (to 65.0% from 57.3%), which reflects slower delivery times that are a byproduct of the COVID-19 response that has disrupted supply networks. Translation: the March number is not as encouraging as it seems at first blush.
Total construction spending declined 1.3% m/m in February (Briefing.com consensus +0.5%) on the heels of an upwardly revised 2.8% increase (from +1.8%) in January. Residential spending was down 0.6% m/m while nonresidential spending declined 1.6% m/m.
The key takeaway from the report is that it is relatively meaningless for a market that is pre-occupied with the economic view ahead due to the shutdown measures that started to hit home in March to deal with containing the spread of COVID-19.
The ADP Employment Change report pointed to a net loss of 27,000 nonfarm payrolls in March (Briefing.com consensus -175,000) while the February reading was revised down to 179,000 from 183,000.
The weekly MBA Mortgage Applications Index increased 15.3% following a 29.4% drop in the prior week.

Looking ahead, investors will receive the weekly Initial Claims and Continuing Claims report, the Trade Balance report for February, and the Factory Orders report for February on Thursday.

Nasdaq Composite: -18.0%
S&P 500: -23.5%
Dow Jones Industrial Average: -26.6%
Russell 2000: -35.8%

Market Snapshot
Dow 20943.57 -973.65 (-4.44%)
Nasdaq 7359.93 -339.52 (-4.41%)
SP 500 2470.50 -114.09 (-4.41%)
10-yr Note +26/32 0.631
NYSE Adv 214 Dec 2728 Vol 1.3 bln
Nasdaq Adv 468 Dec 2826 Vol 3.6 bln

Industry Watch
Strong: Consumer Staples
Weak: Financials, Real Estate, Utilities

Moving the Market

-- Stock market loses more than 4% to start the second quarter

-- White House estimates 100,000-240,000 deaths in U.S. due to the coronavirus; projects daily deaths to peak in two weeks

-- President Trump warns of "very painful two weeks"

-- Manufacturing sector contracts, private-sector hiring declines in March

WTI crude settles down 1%
01-Apr-20 15:25 ET
Dow -964.21 at 20953.01, Nasdaq -351.43 at 7348.02, S&P -120.34 at 2464.25

[BRIEFING.COM] The S&P 500 remains near session lows with a 4.6% decline. The Russell 2000 is down 6.8%.

One last look at the S&P 500 sector standings shows utilities (-7.7%), real estate (-7.4%), and financials (-6.1%) leading the retreat, while the consumer staples sector (-1.9%) is the lone sector down less than 3%.

WTI crude settled the session down $0.20 (-1.0%) to $20.32/bbl. It's a volatile market, though, with futures currently up 1.5% to $20.78/bbl.
Oil prices briefly spike on news President Trump will meet with oil execs

[ReturntoSender]

Stocks gain and oil prices spike; jobless claims cross six million
02-Apr-20 16:15 ET
Dow +469.93 at 21413.50, Nasdaq +126.73 at 7486.66, S&P +56.40 at 2526.90

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

[BRIEFING.COM] The stock market ended a two-day skid on Thursday, and oil prices spiked 24% on hopes for a truce to the global price war. Stocks rose even as weekly initial claims doubled to a record 6.6 million, depicting the dire economic situation caused by the coronavirus.

The S&P 500 (+2.3%) and Dow Jones Industrial Average (+2.2%) set the pace with gains over 2.0%, followed by the Nasdaq Composite (+1.7%) and Russell 2000 (+1.3%).

At one point, WTI crude was up more than 34% after President Trump said Saudi Arabia and Russia could soon cut production by about 10 million barrels per day after speaking with both nations. The president later said production cuts could even be as high as 15 million barrels per day. WTI crude futures settled higher by 23.9%, or $4.86, to $25.18/bbl.

Although more discussions are reportedly needed between Saudi Arabia, Russia, and possibly even the U.S. to reach an agreement, news that Saudi Arabia is asking for an emergency OPEC+ meeting supported the market's price-truce hopes. Conversely, some investors were wary that the lack of oil demand would still weigh on the industry despite attempts to control supply.

Nevertheless, the bounce in oil was a much-needed reprieve for companies within the S&P 500 energy sector (+9.1%), which led all sectors in gains by a wide margin. The utilities sector (+3.2%) was next in line, while the consumer discretionary sector (+0.4%) was today's laggard.

Specifying the jobs data, initial claims spiked by 3.341 million to a seasonally adjusted 6.648 million (Briefing.com consensus 2,800,000) for the week ending March 28. Continuing claims for the week ending March 21 reached 3.029 million, which is the highest level since July 6, 2013. The positive price action in the market suggested that the shocking numbers may already have been priced in.

Separately, shares of Walgreens Boots Alliance (WBA 40.32, -2.71, -6.3%) dropped 6%, as the company's cautious tone regarding its outlook outweighed its better-than-expected quarterly results. Note, the Dow component's fiscal quarter ended on Feb. 29, which was before the economic shutdowns in March.

U.S. Treasuries finished mixed and little changed. The 2-yr yield increased one basis point to 0.23%, while the 10-yr yield declined one basis point to 0.63%. The U.S. Dollar Index increased 0.5% to 100.19.

Reviewing Thursday's economic data:

For the week ending March 28, initial claims spiked by 3,341,000 to a seasonally adjusted 6,648,000 (Briefing.com consensus 2,800,000). Continuing claims for the week ending March 21 spiked by 1,245,000 to 3,029,000, which is the highest level since July 6, 2013.
The key takeaway from the report is that it speaks to how bad things are right now for so many people due to the sudden economic stop, but, unfortunately, the report itself likely still doesn't reflect the full extent of the layoff picture.
The trade deficit narrowed to $45.3 billion (Briefing.com consensus -$46.0 billion) in January from an upwardly revised -$48.6 billion ( from -$48.9 bln) in December.
The key takeaway from the report is that it featured a decline in both exports and imports; however, the understanding that this is a January report (i.e. doesn't capture the brunt of the coronavirus impact) will diminish market interest in it.
Factory orders were unchanged m/m in February (Briefing.com consensus +0.3%) following an unrevised 0.5% decline in January. Shipments were down 0.2% m/m in February after decreasing 0.6% in January.
The key takeaway from the report is that it showed business spending was relatively soft in February, which is expected to give way to an extremely sharp contraction in March.

Looking ahead, investors will receive the Employment Situation Report for March and the ISM Non-Manufacturing Index for March on Friday.

Nasdaq Composite: -16.6%
S&P 500: -21.8%
Dow Jones Industrial Average: -25.0%
Russell 2000: -34.9%

Market Snapshot
Dow 21413.50 +469.93 (2.24%)
Nasdaq 7486.66 +126.73 (1.72%)
SP 500 2526.90 +56.40 (2.28%)
10-yr Note -4/32 0.621
NYSE Adv 1717 Dec 1178 Vol 1.3 bln
Nasdaq Adv 1818 Dec 1413 Vol 3.6 bln

Industry Watch
Strong: Energy, Utilities, Consumer Staples
Weak: Consumer Discretionary

Moving the Market

-- Stocks end two-day skid, close near session highs

-- Oil prices spike 24% after President Trump said he hopes and expects Saudi Arabia and Russia to cut oil production

-- Weekly jobless claims doubled to a record 6.648 million

WTI crude settles up 24% on price truce hopes
02-Apr-20 15:30 ET
Dow +251.46 at 21195.03, Nasdaq +50.18 at 7410.11, S&P +30.81 at 2501.31

[BRIEFING.COM] The S&P 500 is up 1.2%, while the Russell 2000 is down 0.4%.

One last look at the S&P 500 sector shows energy (+6.8%) well in the lead with a 6.8% gain. The utilities sector is the current runner-up with a 1.7% advance. Conversely, the consumer discretionary sector (-0.7%) is down in negative territory.

WTI crude settled up $4.86 (+23.9%) to $25.18/bbl on hopes that the price war between Saudi Arabia and Russia could soon end with production cuts.

[ReturntoSender]

Stock market climbs 7% on encouraging COVID-19 signs
06-Apr-20 16:20 ET
Dow +1627.46 at 22679.99, Nasdaq +540.15 at 7913.23, S&P +175.03 at 2663.68

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

[BRIEFING.COM] The stock market rallied more than 7% to start the shortened trading week, as sentiment was buoyed by encouraging signs that the COVID-19 outbreak may be improving. The Dow Jones Industrial Average (+7.7%) and Russell 2000 (+8.2%) set the pace, followed by the Nasdaq Composite (+7.3%) and S&P 500 (+7.0%).

The positive bias was formed overnight in the futures trade when data out of Europe showed countries reporting fewer coronavirus-related deaths, offering hope that the U.S. could follow a similar path. As the death toll in the U.S. approaches 10,000, New York Governor Cuomo said he's seeing signs that possible flattening of New York's caseload curve is starting to emerge.

Social distancing efforts have also provided an improved statistical outlook regarding total U.S. deaths, although the trajectory of the coronavirus is subject to change. Nevertheless, these encouraging signs provided the market some relief that contributed to a broad-based, and steady, advance.

The market closed at session highs with the 11 S&P 500 sectors advancing between 3.9% (consumer staples) and 8.8% (information technology).

The gains don't necessarily suggest the market is in the clear, though. New coronavirus data could upend today's positive sentiment, a fourth phase stimulus bill could run into some hurdles, and investors don't know what news will come out of the oil industry this week.

OPEC+ postponed its production-cut meeting to later this week, which contributed to WTI crude pulling back 7.5%, or $2.13, to $26.21/bbl today. A decision might wait until Friday after a G-20 emergency energy meeting, according The Wall Street Journal.

In other news, the Fed announced the establishment of a facility that will purchase small business loans that are guaranteed by the White House's Payroll Protection Program (PPP). Delta Air Lines (DAL 22.32, -0.16, -0.7%) said it expects Q2 revenue to be down 90%.

U.S. Treasuries started the week on a lower note amid the risk-on mindset displayed in the stock market. The 2-yr yield increased eight basis points to 0.27%, and the 10-yr yield increased nine basis points to 0.68%. The U.S. Dollar Index increased 0.2% to 100.73.

Investors did not receive any notable economic data on Monday. Looking ahead, investors will receive the JOLTS - Job Openings report for February and the Consumer Credit report for February on Tuesday.

Nasdaq Composite -11.8% YTD
S&P 500 -17.6% YTD
Dow Jones Industrial Average -20.5% YTD
Russell 2000 -31.8% YTD

Market Snapshot
Dow 22679.99 +1627.46 (7.73%)
Nasdaq 7913.23 +540.15 (7.33%)
SP 500 2663.68 +175.03 (7.03%)
10-yr Note -29/32 0.667
NYSE Adv 2625 Dec 270 Vol 1.4 bln
Nasdaq Adv 2730 Dec 542 Vol 3.8 bln

Industry Watch
Strong: Information Technology, Financials, Consumer Discretionary
Weak: Consumer Staples

Moving the Market

-- Stock market rallies more than 7% amid signs that the coronavirus situation is improving, caseload curve could soon flatten

-- Broad-based relief rally

-- Crude prices fall after OPEC+ postpones emergency meeting

WTI crude pulls back 7%
06-Apr-20 15:30 ET
Dow +1288.15 at 22340.68, Nasdaq +441.37 at 7814.45, S&P +145.70 at 2634.35

[BRIEFING.COM] The S&P 500 currently trades higher by 5.9%, and the Russell 2000 trades higher by 6.9%.

One last look at the S&P 500 sectors shows consumer discretionary (+6.8%), materials (+6.9%), financials (+6.3%), industrials (+6.2%) with gains more than 6%, while the consumer staples sector (+2.9%) is the lone sector up less than 3%.

WTI crude settled down $2.13 (-7.5%) to $26.21/bbl after OPEC and its allies postponed their production meeting to later this week.

[ReturntoSender]

Daylong Fade Produces Modest Losses
07-Apr-20 16:20 ET
Dow -26.13 at 22653.86, Nasdaq -25.98 at 7887.26, S&P -4.27 at 2659.41

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

[BRIEFING.COM] The major averages ended Tuesday with modest losses after surrendering their opening gains. The S&P 500 (-0.2%) slipped four points after starting the day with a 93-point gain while the Nasdaq (-0.3%) underperformed slightly.

Equities jumped out of the gate after markets across Asia and Europe had another good outing overnight. The sharply higher start was attributed to optimism about a potential plateau in coronavirus cases, but the key indices hit their best levels within the first five minutes of action, followed by a daylong slide that sent the Nasdaq and S&P 500 into negative territory.

Six out of eleven sectors ended the day with gains ranging from 0.1% (real estate) to 2.4% (materials) while the top-weighted technology sector (-1.1%) underperformed from the start.

Apple (AAPL 259.43, -3.04, -1.2%) and many other large tech components struggled in the afternoon. Chipmakers finished a bit ahead of the sector, with the PHLX Semiconductor Index surrendering 0.5%.

On the flip side, materials (+2.4%) and energy (+2.0%) outperformed throughout the day. The energy sector was able to remain in the green, even though crude oil slumped into the pit close, ending lower by 9.3% at $23.78/bbl. Exxon Mobil (XOM 41.24, +0.77, +1.9%) announced a 30% reduction to its capital spending plans for FY20.

As for materials, the group's advance was paced by gains in names like Dow (DOW 32.33, +1.79, +5.9%), Freeport-McMoRan (FCX 7.59, +0.40, +5.6%), and Eastman Chemical (EMN 52.87, +2.69, +5.4%). Martin Marietta Materials (MLM 185.42, +8.46, +4.8%) and Vulcan Materials (VMC 107.92, +4.75, +4.6%) also had a good showing, likely due to expectations that the next fiscal stimulus will include an infrastructure component.

Regarding additional stimulus, House Speaker Nancy Pelosi told Democratic lawmakers that she wants the next spending package to be at least $1 trillion. Meanwhile, Senate Majority Leader, Mitch McConnell, said that he expects the increase to the small business loan program to be approved on Thursday.

Treasuries retreated during the first half of the session but narrowed their losses as the day went on. The 10-yr yield ended higher by six basis points at 0.74%.

The U.S. Dollar Index fell 0.8% to 99.88, returning to levels from Thursday.

Reviewing today's economic data:

The NFIB Small Business Optimism Index fell to 96.4 in March from 104.5 in February
Job openings decreased to 6.882 mln in February from a revised 7.012 mln (from 6.963 mln) in January
Consumer credit expanded by $22.30 bln in February (Briefing.com consensus $14.00 bln) after increasing by a revised $12.10 bln (from $12.00 bln) in January.

Tomorrow's data will be limited to the 7:00 ET release of the weekly MBA Mortgage Index (prior 15.3%).

Nasdaq Composite -12.1% YTD
S&P 500 -17.7% YTD
Dow Jones Industrial Average -20.6% YTD
Russell 2000 -31.7% YTD

Market Snapshot
Dow 22653.86 -26.13 (-0.12%)
Nasdaq 7887.26 -25.98 (-0.33%)
SP 500 2659.41 -4.27 (-0.16%)
10-yr Note -15/32 0.736
NYSE Adv 2090 Dec 813 Vol 1.47 bln
Nasdaq Adv 1815 Dec 1410 Vol 4.03 bln

Industry Watch
Strong: Energy, Financials, Real Estate, Materials, Industrials
Weak: Consumer Staples, Health Care

[ReturntoSender]

Stocks Revisit Highs From Tuesday
08-Apr-20 16:20 ET
Dow +779.71 at 23433.57, Nasdaq +203.64 at 8090.90, S&P +90.57 at 2749.98

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

[BRIEFING.COM] The stock market rallied on Wednesday, though the advance found resistance near Tuesday's opening high. The S&P 500 gained 3.4% while the Russell 2000 (+4.6%) outperformed.

Equities got off to a shaky start that had the S&P 500 trading just six points above yesterday's low during the first hour of action. However, most heavily weighted sectors showed relative strength during the initial downdraft, which allowed for a swift bounce that continued into the afternoon.

The rally took place as participants remained optimistic about the recent slowdown in new coronavirus cases, which led to speculation about parts of the U.S. economy being able to reopen soon. NIAID Director Fauci said death models are improving and that a turnaround in COVID-19 would be likely after this week.

The optimism about the future overshadowed a couple reminders about how dire the recent past has been. The World Trade Organization expects that global GDP will be down between 2.5% and 8.8% this year while the Organization for Economic Cooperation and Development noted today that its leading indicators are pointing to a sharp slowdown in all major economies except for India, where a less drastic slowdown has being observed.

All eleven sectors ended in the green with seven groups finishing ahead of the broader market. Real estate (+7.4%) and energy (+6.7%) outperformed throughout the day while utilities (+5.4%) and materials (+5.0%) ascended the leaderboard in late trade.

The top-weighted technology sector (+2.7%) kept pace with the broader market for the bulk of the session but couldn't keep up during the final stretch. However, chipmakers outperformed, sending the PHLX Semiconductor Index higher by 3.4%.

Zoom Video (ZM 117.81, +4.06, +3.6%) took part in the early rally, but surrendered the bulk of its gain after it was reported that Google banned its employees from using the software due to concerns about potential data leaks. Government officials from Germany and Taiwan have already been told not to use Zoom's video conferencing software.

Elsewhere, McDonald's (MCD 177.49, +1.90, +1.1%) rallied despite revealing that its comparable sales fell 3.4% in Q1 due to a 6.9% plunge in international sales while domestic sales ticked up 0.1%. The company reported strong performance for January and February but comparable sales in March were down 22.2%, led by a 34.7% drop in international sales. The company withdrew its outlook for the longer term and suspended its share buyback program.

Treasuries ended the day in mixed fashion, as shorter tenors climbed while longer tenors retreated, sending the 10-yr yield higher by three basis points to 0.76%.

Crude oil jumped $1.39, or 5.9%, to $25.17/bbl, reclaiming a portion of its loss from yesterday even though the latest weekly inventory report showed another massive build.

Economic data released this morning was limited to the weekly MBA Mortgage Index, which fell 17.9% to follow last week's 15.3% increase. The Purchase Index dropped 12.2% while the Refinance Index slumped 19.4%.

March PPI (Briefing.com consensus -0.4%; prior -0.6%), Core PPI (Briefing.com consensus -0.1%; prior -0.3%), weekly Initial Claims (Briefing.com consensus 5.00 mln; prior 6.65 mln), and Continuing Claims (prior 3.029 mln) will be reported at 8:30 ET while February Wholesale Inventories (Briefing.com consensus -0.4%) and the preliminary reading of the Michigan Consumer Sentiment for April (Briefing.com consensus 79.3; prior 89.1) will be released at 10:00 ET.

Nasdaq Composite -9.8% YTD
S&P 500 -14.8% YTD
Dow Jones Industrial Average -17.9% YTD
Russell 2000 -28.6% YTD

Market Snapshot
Dow 23433.57 +779.71 (3.44%)
Nasdaq 8090.90 +203.64 (2.58%)
SP 500 2749.98 +90.57 (3.41%)
10-yr Note -2/32 0.764
NYSE Adv 2592 Dec 316 Vol 1.21 bln
Nasdaq Adv 2721 Dec 539 Vol 3.44 bln

Industry Watch
Strong: Energy, Technology, Industrials, Consumer Discretionary, Real Estate
Weak: Consumer Staples, Health Care, Communication Services

Moving the Market

Stocks display early strength despite weak showing from other global equity markets

U.S. administration officials reportedly preparing plans for reopening of the economy

[ReturntoSender]

Shortened Week Ends on Higher Note
09-Apr-20 16:20 ET
Dow +285.80 at 23719.37, Nasdaq +62.67 at 8153.57, S&P +39.84 at 2789.82

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

[BRIEFING.COM] The stock market climbed to end the holiday-shortened week, but the Thursday affair saw some intraday volatility. The S&P 500 gained 1.5%, extending this week's advance to 12.1% while the Nasdaq (+0.8%) underperformed but still gained 10.6% for the week.

The market climbed out of the gate after the release of another horrific weekly initial claims report was masked by news of more unprecedented action from the Fed to help none of the 16 million people who got fired over the past three weeks. Of course, the Fed would protest that direct support is not in its mandate, but neither is the ability to purchase junk bond ETFs or collateralized debt obligations, which can now be acquired by the Fed. The central bank also added another $2.30 trln in emergency lending capacity for businesses and municipalities. Fed Chairman, Jay Powell, said that the central bank will continue using its powers forcefully, proactively, and aggressively.

In Europe, the Bank of England announced that it will begin directly financing the U.K.'s fiscal needs while German Chancellor, Angela Merkel, rejected Italy's demand for the issuance of joint euro debt.

Also of note, the Japanese government will reportedly spend up to $2.20 bln to help Japanese manufacturers move their production facilities out of China.

Equities backpedaled from their highs in the afternoon, but ten out of eleven sectors were able to finish in the green. The gains were paced by groups like financials (+5.2%), real estate (+5.2%), and utilities (+4.8%).

The top-weighted technology sector (UNCH) lagged, which was also the case earlier in the week. The sector climbed 10.6% for the week while chipmakers also underperformed today. The PHLX Semiconductor Index lost 2.3%, narrowing this week's gain to 11.0%.

Costco (COST 300.01, -5.96, -2.0%) reported a 12.1% jump in domestic comparable sales in March, but its stock finished lower since the market had already priced in strong March sales.

The energy sector (-1.1%) turned negative in the afternoon amid volatility in crude oil. That volatility followed conflicting headlines from the OPEC+ meeting, where producers struggled to agree to a large output cut. The Wall Street Journal reported in the late afternoon that daily output in May and June will be reduced by ten million barrels. Crude oil ended the day lower by $2.30, or 9.1%, at $22.87/bbl.

Treasuries finished near their highs, sending the 10-yr yield lower by four basis points to 0.73%.

The U.S. Dollar Index fell 0.6% to 99.50, widening this week's loss to 1.0%.

Reviewing today's economic data:

It was another dismal initial claims report, with 6.606 million jobless claims filed for the week ending April 4 (Briefing.com consensus 5.000 million), bringing the three-week total to 16,780,000 after revisions. Continuing claims for the week ending March 28 hit a record high 7.455 million
The key takeaway from the jobless claims data is that the number of filings is simply astounding and a true sign of the vast impact of the sudden economic stop. Unfortunately, it likely still doesn't capture the fullness of the impact as it's reasonable to assume that the system for filing claims is overwhelmed and not facilitating every effort to file for jobless benefits
The preliminary reading for the University of Michigan's Consumer Sentiment Index for April plummeted to 71.0 (Briefing.com consensus 79.3) from 89.1 in March. This is the largest monthly decline on record
The key takeaway from the report is that the more modest decline in the Expectations Index captures a feeling that the impact of the COVID-19 cases and death rates could soon peak, allowing for a restart of the economy
The Producer Price Index for final demand declined 0.2% m/m in March (Briefing.com consensus -0.4%). Core PPI was up 0.2% (Briefing.com consensus -0.1%)
The key takeaway from the report is that it doesn't fully reflect the impact of the COVID-19 shutdown measures as the pricing date for the survey was March 10
Wholesale inventories decreased by 0.7% in February (Briefing.com consensus -0.4%) after decreasing a revised 0.6% (from -0.4%) in January

There is no data scheduled for Monday.

Nasdaq Composite -9.1% YTD
S&P 500 -13.7% YTD
Dow Jones Industrial Average -16.9% YTD
Russell 2000 -25.3% YTD

Market Snapshot
Dow 23719.37 +285.80 (1.22%)
Nasdaq 8153.57 +62.67 (0.77%)
SP 500 2789.82 +39.84 (1.45%)
10-yr Note +9/32 0.729
NYSE Adv 2495 Dec 418 Vol 1.51 bln
Nasdaq Adv 2502 Dec 735 Vol 4.10 bln

Industry Watch
Strong: Financials, Real Estate, Utilities, Industrials
Weak: Health Care, Consumer Staples, Technology, Communication Services

Moving the Market

Continued volatility in crude oil

Federal Reserve to provide additional $2.30 trln in emergency lending

Crude Oil Ends Sharply Lower
09-Apr-20 15:25 ET
Dow +255.31 at 23688.88, Nasdaq +21.70 at 8112.60, S&P +32.06 at 2782.04

[BRIEFING.COM] The S&P 500 trades higher by 1.2% with 30 minutes remaining in the session. The index is on track to gain 11.8% for the week.

Crude oil ended today's pit session lower by $2.30, or 9.1%, at $22.87/bbl after a sharp reversal from its session high at $28.36/bbl. The energy sector, meanwhile, is down 2.3%.

The pullback in oil took place as OPEC+ could not agree to an output reduction, though the meeting is continuing at this time.

[ReturntoSender]

S&P 500 declines, Nasdaq gains to start the week
13-Apr-20 16:15 ET
Dow -328.60 at 23390.77, Nasdaq +38.85 at 8192.42, S&P -28.19 at 2761.63

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

[BRIEFING.COM] The S&P 500 declined 1.0% on Monday in a slight reversal from last week's rally, while relative strength in the technology stocks helped lift the Nasdaq Composite (+0.5%). The Dow Jones Industrial Average fell 1.4%, and the Russell 2000 fell 2.8%.

There wasn't much conviction in today's session ahead of the Q1 earnings reports from the leading U.S. banks this week. Perhaps some skittishness regarding the loan-loss reserves these banks are accruing contributed to the influential drag from the S&P 500 financials sector (-3.6%).

Sellers were kept in check, though, as stocks drifted sideways for most of the session and closed well off intraday lows after a brief tumble after the open. The S&P 500 real estate sector (-4.6%) declined the most, while the consumer discretionary sector (+1.1%) finished comfortably in positive territory.

Interestingly, a multinational agreement to cut oil production was unable to stir much enthusiasm within the energy sector (-0.4%). Specifically, OPEC and other non-OPEC members agreed to cut production by 9.7 mb/d from May 1-June 30, then 7.7 mb/d from July 1-Dec. 31, and then 5.8 mb/d from Jan. 1, 2021-April 30, 2022.

WTI crude futures struggled for direction and ultimately settled the session down 2.0%, or $0.45, to $22.42/bbl, suggesting that investors were not convinced that the production cuts alone would save an industry still facing demand problems caused by COVID-19. The economy is expected to gradually reopen in May, but the speed and scope of a recovery remained uncertain.

Investors' appetite for growth, meanwhile, continued to lead buyers toward technology companies, including Amazon (AMZN 2168.87, +126.11, +6.2%), Apple (AAPL 273.25, +5.26, +2.0%), and Netflix (NFLX 396.72, +26.00, +7.0%). Amazon stepped up efforts to meet strong customer demand, while Netflix benefited from a positive note in Barron's.

Separately, shares of Caterpillar (CAT 114.14, -10.89, -8.7%) dropped nearly 9% after the stock was downgraded to Underperform from Neutral at Bank of America/Merrill Lynch.

U.S. Treasuries ended the quiet session on a lower note. The 2-yr yield increased one basis point to 0.23%, and the 10-yr yield increased two basis points to 0.75%. The U.S. Dollar Index declined 0.1% to 99.42.

Investors did not receive any economic data on Monday. Looking ahead, investors will receive Import and Export Prices for March on Tuesday.

Nasdaq Composite -8.7% YTD
S&P 500 -14.5% YTD
Dow Jones Industrial Average -18.0% YTD
Russell 2000 -27.4% YTD

Market Snapshot
Dow 23390.77 -328.60 (-1.39%)
Nasdaq 8192.42 +38.85 (0.48%)
SP 500 2761.63 -28.19 (-1.01%)
10-yr Note -2/32 0.755
NYSE Adv 773 Dec 2155 Vol 1.2 bln
Nasdaq Adv 1270 Dec 1979 Vol 3.1 bln

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

Moving the Market

-- S&P 500 declines, Nasdaq gains to start the week

-- OPEC and non-OPEC members agree to cut oil production by 9.7 million b/d from May 1-June 30

-- Relative weakness in the financials sector ahead of Q1 earnings reports this week

WTI crude settles lower despite production cut agreement
13-Apr-20 15:25 ET
Dow -396.65 at 23322.72, Nasdaq -3.80 at 8149.77, S&P -38.54 at 2751.28

[BRIEFING.COM] The S&P 500 is currently down 1.3%, while the Nasdaq has returned to its flat line.

One last look at the S&P 500 sectors shows consumer discretionary (+1.0%) as the lone sector trading higher, while the real estate (-4.5%), utilities (-3.5%), and financials (-3.4%) sectors weigh on the broader market.

WTI crude futures settled today's session down $0.45 (-2.0%) to $22.42/bbl despite OPEC and non-OPEC members agreeing to production cuts that last through April 2022.

[ReturntoSender]

Stock market rises despite tepid bank results
14-Apr-20 16:20 ET
Dow +558.99 at 23949.76, Nasdaq +323.32 at 8515.74, S&P +84.43 at 2846.06

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

[BRIEFING.COM] It was a good day for the stock market on Tuesday, as investors expressed optimism in an economic recovery despite the uncertainty signaled by some of the nation's most influential banks. The Nasdaq Composite rose 4.0%, pulling ahead of the S&P 500 (+3.1%), Dow Jones Industrial Average (+2.4%), and Russell 2000 (+2.1%), for its fourth straight advance.

JPMorgan Chase (JPM 95.50, -2.69, -2.7%) and Wells Fargo (WFC 30.18, -1.25, -4.0%) kicked off the Q1 earnings reporting season with underwhelming quarterly results, but more relevantly, they stirred some concern by substantially increasing their provisions for credit losses. The latter represented the challenges the companies are preparing for given the unprecedented circumstances.

The stock market wasn't concerned with uncertainty today, though, as it remained comforted in the notion that the economy will strategically reopen through a coordinated plan from federal and state officials. In addition, better-than-feared trade data for March out of China may have also aided investor sentiment.

The S&P 500 consumer discretionary (+4.2%) and information technology (+4.2%) sectors outperformed on the back of strong gains from Amazon (AMZN 2283.32, +114.45, +5.3%), Apple (AAPL 287.05, +13.80, +5.1%), and Microsoft (MSFT 173.70, +8.19, +5.0%). The health care sector (+3.3%) was led higher by Johnson & Johnson (JNJ 146.03, +6.26, +4.5%) following its quarterly results.

It appeared, then, that only the financials (+0.3%) and energy (-0.5%) sectors today reflected underlying concerns many investors still have with the economy. The energy space was specifically pressured by a 10% drop in oil prices ($20.22/bbl, -$2.20, -9.8%), as the industry remained burdened by the lack of meaningful oil demand despite the upcoming production cuts.

U.S. Treasuries held firm despite the bullish price action in the stock market. The 2-yr yield declined one basis point to 0.22%, and the 10-yr yield was unchanged at 0.75%. The U.S. Dollar Index declined 0.5% to 98.85.

Tuesday's economic data was limited to Import and Export Prices for March: import prices declined 2.3%, while prices, excluding oil, were unchanged. Export prices declined 1.6% in March, and prices, excluding agriculture, declined 1.5%.

Looking ahead, investors will receive a deluge of reports on Wednesday: Retail Sales for March, Industry Production and Capitalization Utilization for March, the Empire State Manufacturing Index for April, the NAHB Housing Market Index for April, the weekly MBA Mortgage Applications Index, Business Inventories for February, and Net Long-Term TIC Flows for February.

Nasdaq Composite -5.1% YTD
S&P 500 -11.9% YTD
Dow Jones Industrial Average -16.1% YTD
Russell 2000 -25.8% YTD

Market Snapshot
Dow 23949.76 +558.99 (2.39%)
Nasdaq 8515.74 +323.32 (3.95%)
SP 500 2846.06 +84.43 (3.06%)
10-yr Note +24/32 0.747
NYSE Adv 2195 Dec 726 Vol 1.2 bln
Nasdaq Adv 2278 Dec 942 Vol 3.7 bln

Industry Watch
Strong: Consumer Discretionary, Information Technology
Weak: Financials, Energy

Moving the Market

-- Stock market closes firmly higher amid a positive sentiment regarding the economy

-- JPMorgan Chase (JPM) and Wells Fargo (WFC) substantially increase provisions for credit losses, shares fall

-- Strength in mega-cap technology stocks

-- Oil prices drop 10% amid persistent demand problems

WTI crude futures fall 10%
14-Apr-20 15:25 ET
Dow +483.64 at 23874.41, Nasdaq +307.87 at 8500.29, S&P +76.73 at 2838.36

[BRIEFING.COM] The S&P 500 is up 2.8%, while the Russell 2000 underperforms with a 1.7% gain.

One last look at the S&P 500 sectors shows consumer discretionary (+3.9%), consumer staples (+3.8%), and information technology (+3.7%) leading the market in gains, while the energy (-0.7%) and financials (-0.3%) sectors trade lower.

WTI crude futures settled down a disappointing $2.20 (-9.8%) to $20.22/bbl, as the market remained burdened by the lack of oil demand despite the upcoming production cuts.

[ReturntoSender]

Stocks close lower amid weak economic data
15-Apr-20 16:20 ET
Dow -445.41 at 23504.35, Nasdaq -122.56 at 8393.18, S&P -62.70 at 2783.36

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

[BRIEFING.COM] The S&P 500 declined 2.2% on Wednesday, as the release of historically weak economic data undercut risk sentiment. The Dow Jones Industrial Average lost 1.9%, the Nasdaq Composite lost 1.4% to snap a four-session winning streak, and the Russell 2000 underperformed with a 4.3% decline.

Highlighting the data: retail sales declined 8.7% m/m in March (Briefing.com consensus -10.0%), industrial production declined 5.4% m/m in March (Briefing.com consensus -3.3%), the Empire State Manufacturing Survey for April plunged 57 points to -78.2 (Briefing.com consensus -32.0), and the NAHB Housing Market Index for April plunged 42 points to 30 (Briefing.com consensus 57).

In addition, more banks bolstered their loan-loss reserves to prepare for tougher times ahead, the Fed's Beige Book for April noted a sharp contraction in economic activity with business contacts expecting conditions to worsen, and The Wall Street Journal reported that the Paycheck Protection Program for small businesses was on pace to run out of money today.

The plethora of reminders that economic conditions are woeful contributed to losses in all 11 S&P 500 sectors, but the S&P 500 remarkably still finished above Monday's closing level. The financials sector (-4.3%) was an influential laggard following earnings reports from Bank of America (BAC 22.19, -1.54, -6.5%), Citigroup (C 42.86, -2.56, -5.6%), and Goldman Sachs (GS 178.52, +0.29, +0.2%).

The energy sector (-4.7%) declined the most, though, as the group remained pressured by lower oil prices after the EIA projected a 9.2 mb/d decline in oil demand in 2020. WTI crude futures settled just below $20.00/bbl, losing 1.3%, or $0.27, to $19.95/bbl.

UnitedHealth (UNH 281.68, +11.18, +4.1%) was a notable standout after the Dow component reported better-than-expected earnings results. Its outperformance limited the decline in the health care sector (-0.5%).

Separately, airline stocks finished mixed after the companies reached individual agreements with the government for payroll relief. Shares of American Airlines (AAL 12.29, +0.35, +2.9%) closed higher, while Delta Air Lines (DAL 24.35, -0.19, -0.8%) closed lower.

Longer-dated U.S. Treasuries exhibited strength in a textbook trade given the negative economic data and decline in stocks. The 2-yr yield declined two basis points to 0.20%, and the 10-yr yield declined 11 basis points to 0.64%. The U.S. Dollar Index increased 0.7% to 99.57.

Reviewing Wednesday's big batch of data:

Retail sales declined 8.7% m/m in March (Briefing.com consensus -10.0%) following an upwardly revised 0.4% decline (from -0.5%) in February. Excluding autos, sales declined 4.5% (Briefing.com consensus -7.6%) following an unrevised 0.4% decline in February.
The key takeaway from the report is that it captured the impact of the COVID-19 shutdown situation, as spending in discretionary categories cratered while spending for essential items accelerated in a big way.
Industrial production declined 5.4% m/m in March (Briefing.com consensus -3.3%) following a downwardly revised 0.5% increase (from 0.6%) in February. Total capacity utilization was 72.7% (Briefing.com consensus 74.1%) following an unrevised 77.0% in February.
The key takeaway from the report is that it captures the severity of the shutdown situation, best reflected in the pronouncement that the downturn in industrial production was the worst since 1946.
The New York Fed's Empire State Manufacturing Survey plummeted 57 points to -78.2 (Briefing.com consensus -32.0).
The NAHB Housing Market Index for April plunged to 30 (Briefing.com consensus 57) from 72 in March.
Business inventories decreased 0.4% in February, as expected, while the January reading was revised down to -0.3% from -0.1%.
The Mortgage Bankers Applications Index increased 7.3% week-over-week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims, Housing Starts and Building Permits for March, and the Philadelphia Fed Index for April on Thursday.

Nasdaq Composite -6.5% YTD
S&P 500 -13..9% YTD
Dow Jones Industrial Average -17.6% YTD
Russell 2000 -29.1% YTD

Market Snapshot
Dow 23504.35 -445.41 (-1.86%)
Nasdaq 8393.18 -122.56 (-1.44%)
SP 500 2783.36 -62.70 (-2.20%)
10-yr Note +12/32 0.633
NYSE Adv 480 Dec 2424 Vol 1.1 bln
Nasdaq Adv 742 Dec 2483 Vol 3.3 bln

Industry Watch
Strong: Health Care
Weak: Financials, Energy, Materials

Moving the Market

-- Stocks retreat following weak economic data

-- Retail sales drop 8.7% m/m in March, Industrial Production declines 5.4% m/m in March

-- More banks bolster loan-loss reserves

-- U.S. Treasuries exhibit strength

WTI crude settles below $20/bbl
15-Apr-20 15:30 ET
Dow -436.09 at 23513.67, Nasdaq -97.09 at 8418.65, S&P -58.83 at 2787.23

[BRIEFING.COM] The S&P 500 currently trades lower by 2.1%, while the Russell 2000 continues to underperform with a disappointing 3.7% loss.

One last look at the S&P 500 sectors shows energy (-4.7%), materials (-4.5%), real estate (-4.4%), and financials (-4.2%) down more than 4.0%, while the health care (-0.3%) and communication services (-0.9%) sectors are down less than 1.0%.

WTI crude futures settled down $0.27 (-1.3%) to $19.95/bbl, as investors remained unconvinced that the upcoming production cuts will be enough to offset the lack of oil demand.

[ReturntoSender]

Large-cap indices close higher despite more bad data
16-Apr-20 16:20 ET
Dow +33.33 at 23537.68, Nasdaq +139.19 at 8532.37, S&P +16.19 at 2799.55

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

[BRIEFING.COM] The stock market closed mixed on Thursday, as investors responded to another round of weak economic data by continuing to buy shares of technology companies while avoiding distressed sectors like financials and energy. The Nasdaq Composite rose 1.7%, while the S&P 500 (+0.6%) and Dow Jones Industrial Average (+0.1%) posted smaller gains. The Russell 2000 declined 0.5%.

Briefly, weekly jobless claims totaled 5.245 million (Briefing.com consensus 5.000 million), down 1.37 million from the prior week. Housing starts for March declined 22.3% m/m while building permits fell 6.8% m/m. The Philadelphia Fed Index for April plunged 43.9 points to -56.6 (Briefing.com consensus -25.0) for its lowest reading since July 1980.

The data was ugly like yesterday's, but unlike yesterday the stock market was more accepting of the data amid a tapering shock value. Regarding the economic outlook, investors were reminded today that the road ahead may not be as smooth as had hoped after New York extended its economic restrictions until May 15. The White House is expected to release a "flexible" guideline today for states to consider.

This viewpoint didn't dampen risk sentiment, but instead led investors into stocks that have outperformed this year: large-cap technology names like Amazon (AMZN 2408.19, +100.51, +4.4%), Microsoft (MSFT 177.04, +5.16, +3.0%), and many of the semiconductor stocks. The latter drew support from encouraging quarterly results and guidance from Taiwan Semi (TSM 52.40, +2.74, +5.5%).

These gains contributed the outperformance of the S&P 500 consumer discretionary (+1.9%) and information technology (+1.2%) sectors. The health care sector (+2.2%), though, advanced the most after Abbott Labs (ABT 96.00, +5.06, +5.6%) was the latest health care company to beat earnings estimates.

Interestingly, declining issues outpaced advancing issues in both the Nasdaq and NYSE despite the positive indication in the major indices. Laggards were found in areas that have underperformed this year, specifically the energy (-4.0%), financials (-1.7%), and industrials (-0.8%) sectors.

The industrials space was pressured by Boeing (BA 134.24, -11.74, -8.0%) and airline stocks after United Airlines (UAL 28.21, -3.65, -11.5%) provided shareholders a discouraging update. The company said it expects travel demand to remain suppressed for the remainder of 2020 and likely into next year, augmenting worries about a prolonged economic recovery.

U.S. Treasuries continued to show relative strength, pushing yields lower across the curve. The 2-yr yield declined one basis point to 0.19%, and the 10-yr yield declined three basis points to 0.61%. The U.S. Dollar Index increased 0.6% to 100.06. WTI crude declined 0.3% to $19.89/bbl.

Reviewing Thursday's economic data:

Initial claims for the week ending April 11 were "only" 5.245 million (Briefing.com consensus 5.000 million), down 1.37 million from the prior week. Continuing claims for the week ending April 4, meanwhile, were 11.976 million, up 4.53 million from the prior week.
The key takeaway from the report is that the labor market is wrecked right now; and gainful employment with gainful income, which is missing for so many, is what is needed to drive an economy that relies heavily on consumer spending.
Housing starts declined 22.3% m/m in March to a seasonally adjusted annual rate of 1.216 million (Briefing.com consensus 1.300 million). Building permits were down 6.8% m/m to a seasonally adjusted annual rate of 1.353 million (Briefing.com consensus 1.297 million).
Building permits were better than expected because of increases for multi-unit dwellings, yet the key takeaway for this leading indicator is that permits for single-unit housing were down between 6.4% and 20.2% across all regions.
The Philadelphia Fed Index for April plunged to -56.6 (lowest since July 1980) from -12.7 in March.

Looking ahead, investors will receive the Conference Board's Leading Economic Index for March on Friday.

Nasdaq Composite -4.9% YTD
S&P 500 -13.4% YTD
Dow Jones Industrial Average -17.5% YTD
Russell 2000 -29.4% YTD

Market Snapshot
Dow 23537.68 +33.33 (0.14%)
Nasdaq 8532.37 +139.19 (1.66%)
SP 500 2799.55 +16.19 (0.58%)
10-yr Note +3/32 0.610
NYSE Adv 1084 Dec 1803 Vol 1.1 bln
Nasdaq Adv 1438 Dec 1791 Vol 3.9 bln

Industry Watch
Strong: Consumer Discretionary, Information Technology, Health Care
Weak: Energy, Financials, Industrials

Moving the Market

-- Nasdaq outperforms amid strength in technology stocks; S&P 500, Dow inch higher

-- Jobless claims total 5.245 million (Briefing.com consensus 5.0 million); Housing starts for March declined 22.3% m/m while building permits fell 6.8% m/m.

-- Continued weakness in financial and energy sectors

-- Declining issues outpace advancing issues in Nasdaq and NYSE

WTI crude posts slight decline
16-Apr-20 15:30 ET
Dow -38.28 at 23466.07, Nasdaq +89.70 at 8482.88, S&P +8.47 at 2791.83

[BRIEFING.COM] The S&P 500 continues to trade above its flat line with a 0.3% gain, while the Russell 2000 lags with a 1.7% decline.

One last look at the S&P 500 sectors shows health care (+1.9%) and consumer discretionary (+1.3%) remaining atop the standings, while energy (-3.4%) and financials (-2.0%) continue to underperform with noticeable losses.

WTI crude futures settled down $0.06 (-0.3%) to $19.89/bbl.

[ReturntoSender]

Stocks end positive week near session highs
17-Apr-20 16:15 ET
Dow +704.81 at 24242.49, Nasdaq +117.78 at 8650.15, S&P +75.01 at 2874.56

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

[BRIEFING.COM] The S&P 500 advanced 2.7% on Friday amid hopes for a COVID-19 treatment and optimism about reopening the economy. The Dow Jones Industrial Average (+3.0%) and Russell 2000 (+4.3%) outpaced the benchmark index, while the Nasdaq Composite (+1.4%) had a more modest performance.

A report published by Stat News indicated that most coronavirus patients treated with Gilead Sciences' (GILD 83.99, +7.45, +9.7%) remdesivir showed a rapid recovery in a trial at the University of Chicago Medicine. Note, Gilead did not issue an official statement regarding the trial, which lacked a placebo group for comparison.

The possibility that there might be an effective COVID-19 treatment, though, added to the positive sentiment in the market as it could restore some confidence for consumers when the economy starts to reopen. President Trump said yesterday that some states already satisfied the administration's new guidelines to reopen before May.

While some investors remained cautious, the market continued to price in a better-than-feared economic outlook. All 11 S&P 500 sectors posted gains to end the week with relative strength found in the energy (+10.4%) and financials (+5.6%) sectors.

The information technology sector (+1.4%) underperformed today amid relative weakness in Apple (AAPL 282.80, -3.89, -1.4%), which was downgraded to Sell from Neutral at Goldman Sachs on a view that iPhone sales will take more time to recover than expected.

Boeing (BA 154.00, +19.76, +14.7%) shares rose nearly 15% after the company said it plans to restart production at its Puget Sound facility next week. Procter & Gamble (PG 124.69, +3.19, +2.6%) advanced with the broader market after it beat earnings estimates.

U.S. Treasuries were holding steady despite the stock market gains amid a weak Q1 GDP print out of China and continued weakness in oil prices ($18.20/bbl, -1.67, -8.4%). Longer-dated maturities saw modest selling, though, after the New York Fed stated it will reduce its Treasury purchases next week to ~$75 billion from ~$150 billion this week.

The 2-yr yield increased one basis point to 0.20%, and the 10-yr yield increased four basis points to 0.65%. The U.S. Dollar Index declined 0.2% to 99.78.

Friday's economic data was limited to the Conference Board's Leading Economic Index for March, which declined 6.7% (Briefing.com consensus -7.1%) following a revised 0.2% decline in February (from +0.1%). Investors will not receive any economic data on Monday.

Nasdaq Composite -3.6% YTD
S&P 500 -11.0% YTD
Dow Jones Industrial Average -15.1% YTD
Russell 2000 -26.3% YTD

Market Snapshot
Dow 24242.49 +704.81 (2.99%)
Nasdaq 8650.15 +117.78 (1.38%)
SP 500 2874.56 +75.01 (2.68%)
10-yr Note -3/32 0.650
NYSE Adv 2470 Dec 427 Vol 1.4 bln
Nasdaq Adv 2616 Dec 654 Vol 4.3 bln

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

Moving the Market

-- Stock market ends week near session highs amid hopes for COVID-19 treatment, optimism about reopening the economy

-- Broad-based advance with relative strength in the energy and financial sectors

-- Gilead Sciences' (GILD) remdesivir shows promising therapeutic signs for COVID-19

WTI crude extends decline by 8%
17-Apr-20 15:30 ET
Dow +498.49 at 24036.17, Nasdaq +63.29 at 8595.66, S&P +53.24 at 2852.79

[BRIEFING.COM] The S&P 500 is up 1.9%, while the Russell 2000 outperforms with a 3.7% gain.

One last look at the S&P 500 sectors shows energy (+8.1%) and financials (+4.7%) firmly atop the standings, while the information technology (+0.6%), communication services (+0.8%), and consumer staples (+0.9%) sectors are up less than 1.0%.

WTI crude futures settled down $1.67 (-8.4%) to $18.20/bbl amid a lack of confidence in the fundamentals, which include weak demand.

[ReturntoSender]

Stocks close lower, as oil contract turns negative
20-Apr-20 16:15 ET
Dow -592.05 at 23650.44, Nasdaq -89.41 at 8560.74, S&P -51.40 at 2823.16

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

[BRIEFING.COM] The S&P 500 declined 1.8% on Monday, although that was relatively modest given the implosion in the oil market where the expiring May contract for WTI crude closed negative for the first time ever. The Dow Jones Industrial Average declined 2.4%, the Nasdaq Composite declined 1.0%, and the Russell 2000 declined 1.3%.

Specifically, WTI crude futures for May delivery collapsed 306%, or $55.83, to -$37.63/bbl ahead of tomorrow's expiration, as no one presumably wanted to take physical delivery given the well-documented storage constraints and lack of demand. The negative price also indicated that producers are paying someone to take their oil.

The historic, and mind-boggling, occurrence appeared to spoil an intraday rebound in stocks, which started to accelerate losses heading into the futures settlement time at 2:30 p.m. ET. Around that same time, it was also reported that a vote to replenish the small business loan program was delayed in the Senate due to ongoing negotiations.

All 11 S&P 500 sectors closed in negative territory, near session lows, with the energy (-3.2%), real estate (-3.7%), and utilities (-3.9%) sectors leading the retreat. The health care (-0.8%) and communication services (-0.9%) sectors declined less than 1%.

It should be noted, though, that the WTI futures curve did show escalating prices amid expectations that prices should rebound with production cuts and hopefully increased demand. For instance, the June WTI crude futures contract settled at $20.30/bbl, although that was still an 18.9% decline.

Back to stocks, Walt Disney (DIS 102.26, -4.37, -4.1%) and Boeing (BA 143.61, -10.39, -6.8%) underperformed the broader market following a pair of analyst downgrades and negative-sounding reports. Disney is reportedly suspending pay for 100,000 employees, while a GE leasing subsidiary canceled 69 orders of Boeing's 737 MAX.

U.S. Treasuries finished mixed with longer-dated maturities continuing to show relative strength. The 2-yr yield increased one basis point to 0.21%, while the 10-yr yield declined three basis points to 0.63%. The U.S. Dollar Index increased 0.2% to 99.98.

Investors did not receive any economic data on Monday. Looking ahead, investors will receive Existing Home Sales for March on Tuesday.

Nasdaq Composite -4.6% YTD
S&P 500 -12.6% YTD
Dow Jones Industrial Average -17.1% YTD
Russell 2000 -27.3% YTD

Market Snapshot
Dow 23650.44 -592.05 (-2.44%)
Nasdaq 8560.74 -89.41 (-1.03%)
SP 500 2823.16 -51.40 (-1.79%)
10-yr Note +2/32 0.628
NYSE Adv 675 Dec 2242 Vol 1.1 bln
Nasdaq Adv 1252 Dec 2004 Vol 3.7 bln

Industry Watch
Strong: Health Care, Communication Services
Weak: Energy, Real Estate, Utilities

Moving the Market

-- Stocks close lower as oil contract turns negative

-- WTI crude contract for May collapses to -$37.63/bbl; prices show rebound in later contracts

-- Vote on small business funding delayed in Senate

WTI crude closes at negative $37 in historic session
20-Apr-20 15:30 ET
Dow -580.12 at 23662.37, Nasdaq -74.70 at 8575.45, S&P -49.74 at 2824.82

[BRIEFING.COM] The S&P 500 and Russell 2000 both trade lower by 1.7%.

Oil tanker companies like Frontline (FRO 10.89, +1.29, +13.7%) are showing strength after the negative print in oil prices today, as producers are essentially paying companies to take their oil.

WTI crude for May delivery plunged 306.0% (-$55.83) to -$37.63/bbl, while the June contract fell 18.9% to $20.30/bbl.
Halliburton bucks energy decline after earnings report
20-Apr-20 15:00 ET
Dow -526.60 at 23715.89, Nasdaq -60.39 at 8589.76, S&P -45.66 at 2828.90

[BRIEFING.COM] The S&P 500 is down back at session lows with a 1.6% decline.

All sectors are currently negative with the energy sector (-3.9%) surpassing the utilities sector (-3.7%) at the bottom of the standings. Halliburton (HAL 7.60, +0.03, +0.3%) bucks the energy trend following its earnings results.

Looking ahead in earnings, IBM (IBM 121.03, +0.90, +0.7%) will report results after the close, while Coca-Cola (KO 47.44, -0.63, -1.3%) will report tomorrow morning.

[ReturntoSender]

Stock Market Update

Stocks extend weekly decline amid continued turmoil in oil market
21-Apr-20 16:15 ET
Dow -631.56 at 23018.88, Nasdaq -297.50 at 8263.24, S&P -86.60 at 2736.56

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

[BRIEFING.COM] The S&P 500 fell 3.1% on Tuesday, closing near session lows for its second straight decline, as risk sentiment remained suppressed by the ongoing turmoil in the oil futures market. The Dow Jones Industrial Average declined 2.7%, the Nasdaq Composite declined 3.5%, and the Russell 2000 declined 2.3%.

The May WTI contract officially expired at $10.01/bbl after falling negative yesterday, but the fundamental problems that drove the contract into negative territory continued to plague the rest of the WTI futures curve. The June WTI contract plunged 43.0%, or $8.70, to $11.57/bbl, although it did touch $6.50/bbl at its low.

Remarkably, the S&P 500 energy sector (-1.7%) performed relatively well despite the risking risks of credit defaults, dividend cuts, and job losses facing many of its components. President Trump may have alleviated some worries on the jobs front after vowing to protect energy companies with appropriate funding.

As for the broader market, there might have been a general sense that it was due for a breather following the incredible rally from the March 23 lows, with the angst in the oil market allowing for some rethinking about the economic outlook.

The information technology sector (-4.1%) underperformed in a rare outing amid broad-based selling, which included an earnings-related decline in IBM (IBM 116.76, -3.65, -3.0%). The utilities (-1.6%) and real estate (-1.6%) sectors declined the least today.

In other earnings news, Dow components Coca-Cola (KO 45.31, -1.22, -2.6%) and Travelers (TRV 101.78, unch) finished mixed following their earnings reports.

Separately, news that Congressional leaders and the Trump administration reached a stimulus bill agreement, which reportedly includes $310 billion in small business funding, was encouraging but not market moving. The Senate and House will still need to vote on the bill.

In the U.S. Treasury market, longer-dated tenors continued to exhibit strength in a safety trade. The 2-yr yield declined one basis point to 0.20%, and the 10-yr yield declined six basis points to 0.57%. The U.S. Dollar Index increased 0.2% to 100.17.

Reviewing Tuesday's economic data:

Existing home sales declined 8.5% m/m in March to a seasonally adjusted annual rate of 5.27 million (Briefing.com consensus 5.35 million). Total sales were up 0.8% year-over-year, marking the ninth straight month that they have increased on a year-over-year basis.
The key takeaway from the report is that it showed existing home sales activity was relatively soft before the COVID-19 impact, with low inventory and high prices crimping sales. Existing home sales are counted when the deals are closed, so the sales activity for March is predicated mostly on contracts signed in January and February.

Looking ahead, investors will receive the weekly MBA Mortgage Applications Index and the FHFA Housing Market Index for April on Wednesday.

Nasdaq Composite -7.9% YTD
S&P 500 -15.3% YTD
Dow Jones Industrial Average -19.3% YTD
Russell 2000 -29.0% YTD

Market Snapshot
Dow 23018.88 -631.56 (-2.67%)
Nasdaq 8263.24 -297.50 (-3.48%)
SP 500 2736.56 -86.60 (-3.07%)
10-yr Note +4/32 0.562
NYSE Adv 588 Dec 2275 Vol 1.0 bln
Nasdaq Adv 803 Dec 2418 Vol 3.7 bln

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

Moving the Market

-- Stocks extend weekly declines, close near session lows

-- WTI crude contract for June tanks 43% to $11.57/bbl

-- Relative weakness in the information technology sector

June WTI contract tanks 43%
21-Apr-20 15:30 ET
Dow -499.77 at 23150.67, Nasdaq -243.77 at 8316.97, S&P -71.87 at 2751.29

[BRIEFING.COM] The S&P 500 is down 2.6%, extending its weekly decline to 4.4%.

One last look at the S&P 500 sectors shows energy (-0.7%) down the least despite the turmoil in the oil futures market. The information technology sector (-3.5%) remains at the bottom of the standings amid broad-based selling interest.

WTI crude futures (June) tanked $8.70 (-43.0%) to $11.57/bbl amid the same issues that took the May WTI contract negative yesterday.

[ReturntoSender]

Stocks recoup some weekly losses in broad-based advance
22-Apr-20 16:15 ET
Dow +456.94 at 23475.82, Nasdaq +232.15 at 8495.39, S&P +62.75 at 2799.31

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

[BRIEFING.COM] The S&P 500 advanced 2.3% on Wednesday, recouping some of its weekly decline, as sentiment benefited from a reprieve in the oil futures market and more stimulus action. The Nasdaq Composite outperformed with a 2.8% gain, followed by the Dow Jones Industrial Average (+2.0%) and Russell 2000 (+1.3%).

Specifically, WTI crude futures gained 19.3%, or $2.23, to $13.80/bbl after a two-day collapse, and the Senate passed a $484 billion stimulus bill targeted for small businesses, hospitals, and COVID-19 testing. What's interesting, though, is that stocks were already indicated for a higher start as oil futures initially traded lower, and the market barely reacted to the initial news of a stimulus agreement yesterday.

To be fair, the reprieve in oil prices might have warranted follow-through buying after the open, and the stimulus bill is now one step closer to providing much-needed relief. A general observation that the S&P 500 declined 4.8% over the past two days, thus presenting a suitable entry point for some investors, likely contributed to the gains, too.

The advance was steady and broad-based, with all 11 S&P 500 sectors closing in positive territory. The information technology sector (+3.9%) leaped ahead amid strength in the semiconductor stocks, which rallied around a positive earnings report from Texas Instruments (TXN 111.98, +5.14, +4.8%). The consumer staples sector (+1.1%) underperformed.

Facebook (FB 182.28, +11.48, +6.7%) and Alphabet (GOOG 1263.21, +46.87, +3.9%) also did some heavy lifting, partially due to the overwhelmingly positive response to Snap's (SNAP 16.95, +4.51, +36.3%) revenue results.

Chipotle Mexican Grill (CMG 882.26, +95.57, +12.2%) was another earnings standout, while shares of Netflix (NFLX 421.42, -12.41, -2.9%) and AT&T (T 29.47, -0.40, -1.3%) declined following their results.

U.S. Treasuries finished on a lower note with longer-dated maturities backtracking from their recent advance. The 2-yr yield increased one basis point to 0.21%, and the 10-yr yield increased five basis points to 0.62%. The U.S. Dollar Index increased 0.1% to 100.40.

Reviewing Wednesday's economic data:

The FHFA Housing Price Index for April rose 0.7% after increasing an upwardly revised 0.5% in March (from +0.3%).
The weekly MBA Mortgage Applications Index declined 0.3% following a 7.3% increase in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report and the New Home Sales report for March on Thursday.

Nasdaq Composite -5.3% YTD
S&P 500 -13.4% YTD
Dow Jones Industrial Average -17.7% YTD
Russell 2000 -28.0% YTD

Market Snapshot
Dow 23475.82 +456.94 (1.99%)
Nasdaq 8495.39 +232.15 (2.81%)
SP 500 2799.31 +62.75 (2.29%)
10-yr Note -4/32 0.614
NYSE Adv 2051 Dec 854 Vol 1.0 bln
Nasdaq Adv 2163 Dec 1060 Vol 3.0 bln

Industry Watch
Strong: Information Technology, Energy
Weak: Consumer Staples, Financials

Moving the Market

-- Stocks recoup some weekly losses in broad-based advance

-- WTI crude spikes 19% to $13.80/bbl

-- Senate passes $484 billion stimulus bill for small businesses, hospitals, and COVID-19 testing

WTI crude futures bounce 19%
22-Apr-20 15:30 ET
Dow +521.38 at 23540.26, Nasdaq +252.76 at 8516.00, S&P +69.89 at 2806.45

[BRIEFING.COM] The S&P 500 currently trades higher by 2.6%, while the Russell 2000 trades higher by 1.5%.

One last look at the S&P 500 sectors shows gains across the board with the information technology sector (+4.0%) out in front and the consumer staples sector (+1.3%) in the back.

WTI crude futures rose $2.23 (+19.3%) to $13.80/ozt, providing a reprieve from the turmoil over the past two days.

[ReturntoSender]

Stock market gives up gains after negative remdesivir report
23-Apr-20 16:20 ET
Dow +39.44 at 23515.26, Nasdaq -0.63 at 8494.76, S&P -1.51 at 2797.80

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

[BRIEFING.COM] The S&P 500 advanced as much as 1.6% on Thursday after the number of weekly initial claims declined to about 4.4 million, but stocks gave up gains following a negative report regarding a potential COVID-19 treatment. The benchmark index finished just below its flat line with a 0.1% decline.

The Dow Jones Industrial Average (+0.2%) and Nasdaq Composite (unch) also closed little changed, while the Russell 2000 (+1.0%) outperformed.

The Financial Times reported that Gilead's (GILD 77.78, -3.53, -4.3%) remdesivir drug flopped in its first randomized clinical trial in China, according to draft documents published accidentally by the World Health Organization (WHO). The news unnerved the market, and wiped out gains, as Stat News reported last Friday that the drug showed promising signs in one Chicago trial.

Gilead defended the results, saying WHO had an inappropriate characterization of the study and the data still suggested the drug had a "potential benefit," according to Stat News. Shares of Gilead still declined, and the broader market struggled the rest of the session, as the report reminded investors of the medical breakthroughs still needed to restore consumer confidence.

The S&P 500 sectors finished mixed with six closing higher and five closing lower. The energy sector (+3.0%) outperformed amid a 21.7% spike in WTI crude futures ($16.80/bbl, +3.00), which are now up 45% since Tuesday's settlement price. The utilities (-1.8%), real estate (-1.2%), and consumer staples (-1.0%) sectors underperformed.

As for the jobs data, initial claims for the week ending April 18 decreased by 810,000 to 4.427 million (Briefing.com consensus 4.0 million), which helped the market's thinking that the worst of the labor market data might be in the past.

The latter can be rationalized by states getting ready to reopen their economies, but it likely won't be as swift as the market's month-long rally. Illinois, for instance, extended its stay-at-home order through the end of May.

On the earnings front, Union Pacific (UNP 152.29, +5.19, +3.5%), Eli Lilly (LLY 159.93, +3.22, +2.1%), and CSX (CSX 64.47, +0.58, +1.0%) stood out with positive results and/or guidance.

U.S. Treasuries traded near their flat lines during the session. The 2-yr yield increased one basis point to 0.22%, while the 10-yr yield declined one basis point to 0.61%. The U.S. Dollar Index increased 0.1% to 100.50.

Reviewing Thursday's economic data:

Initial claims for the week ending April 18 decreased by 810,000 to 4.427 million (Briefing.com consensus 4.0 million). Continuing claims for the week ending April 11 increased by 4,064,000 to 15.976 million (a record high).
The key takeaway from this report, which covers the period in which the survey for the April Employment Situation Report was conducted, is that it presents some hope that the peak of the layoffs following the COVID-19 shutdowns has passed. Nonetheless, it is also a reminder of how bad things are on the labor front.
New home sales decreased 15.4% m/m in March to a seasonally adjusted annual rate of 627,000 units (Briefing.com consensus 655,000) from a downwardly revised 741,000 (from 765,000) in February. On a yr/yr basis, new home sales, which are counted when a contract is signed, were down 9.5%.
The key takeaway from the report is that it isn't as bad as feared, although COVID-19 shutdown issues didn't ramp up until the latter half of the month, which is harbinger presumably of decidedly weaker activity in April.

Looking ahead, investors will receive Durable Goods Orders for March and the revised University of Michigan Index of Consumer Sentiment for April on Friday.

Nasdaq Composite -5.3% YTD
S&P 500 -13.4% YTD
Dow Jones Industrial Average -17.6% YTD
Russell 2000 -27.2% YTD

Market Snapshot
Dow 23515.26 +39.44 (0.17%)
Nasdaq 8494.76 -0.63 (-0.01%)
SP 500 2797.80 -1.51 (-0.05%)
10-yr Note +2/32 0.602
NYSE Adv 1757 Dec 1104 Vol 1.1 bln
Nasdaq Adv 1931 Dec 1256 Vol 3.7 bln

Industry Watch
Strong: Energy, Industrials
Weak: Consumer Staples, Real Estate

Moving the Market

-- Stocks pare gains on disappointing Remdesivir update

-- Weekly initial claims decreased by 810,000 to 4.427 million (Briefing.com consensus 4.0 million).

-- WTI crude futures spike 25% to $17/bbl

WTI crude futures rise 22%
23-Apr-20 15:25 ET
Dow +59.68 at 23535.50, Nasdaq +5.71 at 8501.10, S&P +0.94 at 2800.25

[BRIEFING.COM] The S&P 500 is trading near session lows with a 0.1% gain. The Russell 2000 is up 1.8%.

One last look at the S&P 500 sectors shows energy (+3.2%), industrials (+0.8%), and health care (+0.8%) atop the standings, while the utilities (-1.8%) and real estate (-1.1%) sectors extend losses.

WTI crude futures settled higher by $3.00 (+21.7%) to $16.80/bbl. Including today's finish, WTI futures are now up 45% since Tuesday's settlement price.

[ReturntoSender]

Stocks end negative week on positive note
24-Apr-20 16:20 ET
Dow +260.01 at 23775.27, Nasdaq +139.77 at 8634.53, S&P +38.94 at 2836.74

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

[BRIEFING.COM] The S&P 500 increased 1.4% on Friday, wrapping up a negative week on a positive note amid a resurgence in buyers during the afternoon. The Dow Jones Industrial Average rose 1.1%, the Nasdaq Composite rose 1.7%, and the Russell 2000 rose 1.6%.

Investors started the day parsing a mixed batch of earnings reports, including those from a trio of Dow components. Price action was muted from an index level, though, as the market appeared disinterested, even as oil prices ($17.03, +0.23, +1.4%) continued to rebound and the $484 billion coronavirus relief bill was signed by President Trump.

Stocks then started to gain traction in afternoon trade, presumably pulling in reluctant investors, who were fearful of missing out on additional gains given the market's recent resiliency despite the negative economic environment. From a sector level, the gains were broad, with all 11 S&P 500 sectors closing in positive territory.

The information technology sector (+2.1%) led the advance, followed by the materials sector (+1.6%). The energy sector (+0.2%) underperformed today.

As hinted earlier, Dow components Intel (INTC 59.26, +0.22, +0.4%), Verizon (VZ 57.93, +0.34, +0.6%), and American Express (AXP 83.17, +0.71, +0.9%) reported mixed earnings results, but shares were able to close higher despite early losses.

Facebook (FB 190.07, +4.94, +2.7%) was a notable standout after the company announced the launch of Messenger Rooms, a competing service to Zoom Video (ZM 158.80, -10.29, -6.1%).

In other corporate news, Boeing (BA 128.98, -8.76, -6.4%) will reportedly cut its 787 Dreamliner production in half and announce job cuts as a result. Alphabet (GOOG 1279.31, +3.00, +0.2%) will reportedly cut its marketing budgets by as much as half in the second half of the year. AT&T (T 29.71, +0.21, +0.7%) CEO Randall Stephenson will retire on July 1.

U.S. Treasuries ended the session with modest gains, pushing yields slightly lower. The 2-yr yield and 10-yr yield both declined two basis points each to 0.20% and 0.60%, respectively. The U.S. Dollar Index declined 0.2% to 100.24. On a related note, the Fed will reduce its Treasury purchases to $10 billion/day next week from $15 billion/day this week.

Reviewing Friday's economic data:

Durable goods orders declined 14.4% m/m in March (Briefing.com consensus -10.0%). Excluding transportation, durable goods orders declined 0.2% (Briefing.com consensus -4.0%).
The key takeaway from the report is that business spending was up slightly in March, yet that condition isn't expected to persist into April when COVID-19 shutdown measures hit in full force and corporate capex cut announcements accelerated.
The final reading for the University of Michigan Index of Consumer Sentiment for March was revised up to 71.8 (Briefing.com consensus 66.5) from the preliminary reading of 71.0. The final reading for March was 89.1.
The key takeaway from the report is that the downturn in the Expectations Index has not been as severe as the downturn in the Current Economic Conditions Index, which suggests consumers are clearly concerned about the outlook but still clinging to some rebound hope with anticipated reopenings of state economies.

Investors will not receive any notable economic data on Monday.

Nasdaq Composite -3.8% YTD
S&P 500 -12.2% YTD
Dow Jones Industrial Average -16.7% YTD
Russell 2000 -26.1% YTD

Market Snapshot
Dow 23775.27 +260.01 (1.11%)
Nasdaq 8634.53 +139.77 (1.65%)
SP 500 2836.74 +38.94 (1.39%)
10-yr Note +2/32 0.588
NYSE Adv 1799 Dec 1085 Vol 1.1 bln
Nasdaq Adv 2102 Dec 1112 Vol 3.6 bln

Industry Watch
Strong: Information Technology, Materials, Consumer Discretionary
Weak: Energy, Real Estate, Utilities

Moving the Market

-- S&P 500 closes near session highs, still ends week lower

-- Relative strength in information technology sector despite underwhelming guidance from Intel (INTC)

-- Oil prices extend rebound, $484 billion coronavirus relief bill signed by President Trump

WTI crude extends rebound to third day
24-Apr-20 15:25 ET
Dow +216.26 at 23731.52, Nasdaq +113.53 at 8608.29, S&P +33.10 at 2830.90

[BRIEFING.COM] The S&P 500 is up 1.2%, and the Russell 2000 is up 1.4%.

One last look at the S&P 500 sectors shows green across the board. The information technology sector (+1.6%) ekes out the top spot, while the utilities sector (+0.4%) sits at the bottom of the standings.

WTI crude futures settled up $0.23 (+1.4%) to $17.03/bbl.

[ReturntoSender]

Stock rally driven by positive remdesivir update
29-Apr-20 16:20 ET
Dow +532.31 at 24633.86, Nasdaq +306.98 at 8914.72, S&P +76.12 at 2939.51

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

[BRIEFING.COM] The S&P 500 climbed 2.7% on Wednesday, primarily driven by positive remdesivir news and aided by better-than-feared earnings reports and a market-friendly reminder from the Fed. The Nasdaq Composite rose 3.6%, the Dow Jones Industrial Average rose 2.2%, and the Russell 2000 rose 4.8%.

The day started with Gilead Sciences (GILD 83.14, +4.47, +5.7%) affirming that remdesivir, an antiviral treatment for COVID-19, met its primary endpoint in an NIAID placebo-controlled study. The news helped the market open noticeably higher, as it fueled reopening hopes and overshadowed data depicting Q1 GDP contracting at a 4.8% annualized rate (Briefing.com consensus -4.3%).

The ensuing advance in stocks was paced by the S&P 500 energy (+7.4%), communication services (+5.1%), and information technology (+4.2%) sectors, while the defensive-oriented consumer staples (-0.4%) and utilities (-0.9%) sectors were left out of the rally.

Alphabet (GOOG 1341.48, +107.81, +8.7%), MasterCard (MA 283.69, +19.09, +7.2%), and Boeing (BA 139.00, +7.70, +5.9%) contributed to the bullish price action following their earnings reports. Energy stocks received an added boost from the 22% spike in oil prices ($15.13/bbl, +2.76, +22.3%).

Later in the day, the Fed unanimously voted to maintain the target range for the fed funds rate at 0.00-0.25%, as was expected, and said rates will remain there until the economy is on track to achieve the Fed's goals of full employment and price stability. The inference is that rates will stay there for much longer, as the record unemployment isn't expected to return to normal anytime soon.

Fed Chair Powell acknowledged that low rates alone won't revive economic activity and reiterated the Fed's commitment to using its full range of policy tools. Mr. Powell also said legislators should embrace policies that protect against avoidable insolvencies. Market reaction was relatively muted to the policy directive and the Fed Chair's comments.

While most stocks finished the day higher, notable holdouts included Starbucks (SBUX 76.86, -1.83, -2.3%), Advanced Micro Devices (AMD 53.66, -1.85, -3.3%), and General Electric (GE 6.58, -0.22, -3.2%) following their earnings reports.

Small-cap companies Hertz Global (HTZ 4.00, -1.00, -20.0%) and Chesapeake Energy (CHK 26.85, -2.33, -8.0%) sold off on news of potential bankruptcy filings.

U.S. Treasuries were relatively unchanged throughout the session, as bond investors were unfazed by the equity rally given the weak GDP data and precarious economic environment. The 2-yr yield declined one basis point to 0.19%, while the 10-yr yield increased two basis points to 0.63%. The U.S. Dollar Index declined 0.3% to 99.53.

Reviewing Wednesday's economic data:

First quarter GDP declined at an annualized rate of 4.8% (Briefing.com consensus -4.3%) while the GDP Price Deflator was 1.3% (Briefing.com consensus 1.1%). This was the largest decline in GDP since the fourth quarter of 2008.
The key takeaway from the report is that it hints at how ugly the Advance Q2 GDP report will be given that shutdown measures in the U.S. didn't start to gain steam until the latter half of March.
Pending Home Sales dropped 20.8% in March after increasing a revised 2.3% in February (from +2.4%).
The weekly Mortgage Applications Index declined 3.3% following a 0.3% decline in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, Personal Income and Spending for March, the Q1 Employment Cost Index and the Chicago PMI for April on Thursday.

Nasdaq Composite -0.7% YTD
S&P 500 -9.0% YTD
Dow Jones Industrial Average -13.7% YTD
Russell 2000 -18.4% YTD

Market Snapshot
Dow 24633.86 +532.31 (2.21%)
Nasdaq 8914.72 +306.98 (3.57%)
SP 500 2939.51 +76.12 (2.66%)
10-yr Note -1/32 0.622
NYSE Adv 2562 Dec 350 Vol 1.2 bln
Nasdaq Adv 2644 Dec 596 Vol 4.3 bln

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

Moving the Market

-- Stock market rallies, closes at highest level since early March

-- Gilead Sciences' (GILD) remdesivir drug meets primary endpoint in NIAID study

-- Alphabet (GOOG) shares climb on better-than-feared quarterly results

-- Fed keeps rates unchanged, commits to market-friendly policy

-- WTI crude futures rises 22%

WTI crude gains 22%
29-Apr-20 15:25 ET
Dow +626.52 at 24728.07, Nasdaq +337.29 at 8945.03, S&P +89.10 at 2952.49

[BRIEFING.COM] The S&P 500 is up 3.1%, and the Russell 2000 is up 5.6%.

One last look at the S&P 500 sectors shows energy (+6.9%), communication services (+5.8%), and information technology (+4.4%) firmly in the lead, while the utilities (+0.1%) and consumer staples (+0.2%) sectors cling onto small gains.

WTI crude futures settled higher by $2.76 (+22.3%) to $15.13/bbl.

[ReturntoSender]

Stocks advance on reopening hopes, but pare gains into close
05-May-20 16:20 ET

Dow +133.33 at 23883.09, Nasdaq +98.41 at 8809.14, S&P +25.70 at 2868.44

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

[BRIEFING.COM] The S&P 500 rallied as much as 2.0% on Tuesday, as investors continued to buy into the reopening narrative, but stocks pared gains late in the day to leave the benchmark index up 0.9% for the session. The Nasdaq Composite increased 1.1%, the Dow Jones Industrial Average increased 0.6%, and the Russell 2000 increased 0.8%.

Positive reopening news included California announcing plans to reopen parts of its economy as early as Friday, joining a growing list of U.S. states to have already opened or outlined plans. Starbucks (SBUX 72.90, +1.01, +1.4%) said it expects to have 85% of its U.S. stores open again by the end of the week, excluding dine-in service.

The market might have gotten ahead of itself, though, as the news flow didn't provide it any new revelations. Neither did a CNBC interview with Fed Chair Clarida, but the market lost steam shortly after the interview, perhaps reminded of the relatively high asset prices given the uncertainty still facing an economic recovery/reopening.

The S&P 500 financials sector (-0.1%) slipped into negative territory amid the late-session decline, while the health care sector (+2.2%) was minimally affected. The reopening enthusiasm still buoyed oil prices ($24.53/bbl, +4.16, +20.4%) by 20% amid expectations for a demand recovery.

The health care space received a sentiment boost by news that Pfizer (PFE 38.51, +0.89, +2.4%) and BioNTech SE (BNTX 50.00, +4.22, +9.2%) dosed their first U.S. patients in a clinical trial of a potential COVID-19 vaccine.

The market, conversely, continued to dismiss the dose of bad news, presumably due to a view that it's old news and more good news will follow with increased reopening efforts.

Notably, the ISM Non-Manufacturing Index for April fell into contraction territory with a 41.8% reading (Briefing.com consensus 38.5%), United Airlines (UAL 24.12, -1.14, -4.5%) warned it will likely cut 30% of its management and administrative staff in October, and Norwegian Cruise Line Holdings (NCLH 11.18, -3.26, -22.6%) expressed "substantial doubt" about its future.

U.S. Treasuries ended the session little changed. The 2-yr yield was unchanged at 0.17%, and the 10-yr yield increased two basis points to 0.66%. The U.S. Dollar Index increased 0.3% to 99.78.

Reviewing Tuesday's economic data:

The ISM Non-Manufacturing Index for April dropped to 41.8% (Briefing.com consensus 38.5%) from 52.5% in March. A number below 50.0% is indicative of contraction. The April reading was the lowest reading for the index since March 2009.
The key takeaway from the report is that, like the ISM Manufacturing Index, it was not as "good" as the headline number suggests given that there was a spike in the Supplier Deliveries Index (to all-time high 78.3% from 62.1%), which is largely indicative of supply problems due to the COVID-19 impact.
The Trade Balance report for March showed a widening in the deficit to $44.4 billion (Briefing.com consensus -$44.2 billion) from an upwardly revised $39.8 billion (from -$39.9 billion) for February. Exports were down $20.0 billion from February while imports were down $15.4 billion.
The widening in the deficit was the result of exports declining more than imports, yet the key takeaway is that the large declines in both reflect weak trade activity in the wake of COVID-19 shutdown issues that only got worse in April.

Looking ahead, investors will receive the ADP Employment Change Report for April and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite -1.8% YTD
S&P 500 -11.2% YTD
Dow Jones Industrial Average -16.3% YTD
Russell 2000 -23.7% YTD


Market Snapshot
Dow 23883.09 +133.33 (0.56%)
Nasdaq 8809.14 +98.41 (1.13%)
SP 500 2868.44 +25.70 (0.90%)
10-yr Note -24/32 0.659

NYSE Adv 1626 Dec 1274 Vol 927.1 mln
Nasdaq Adv 1736 Dec 1472 Vol 3.9 bln


Industry Watch
Strong: Energy, Health Care, Information Technology

Weak: Consumer Staples


Moving the Market
-- Stock markets trades sharply higher amid reopening momentum

-- Oil prices rise 20% amid expectations for higher demand as states continue to reopen

-- Continued dismissal of bad news



WTI crude rises 20% on reopening optimism
05-May-20 15:25 ET

Dow +294.62 at 24044.38, Nasdaq +161.67 at 8872.40, S&P +43.14 at 2885.88
[BRIEFING.COM] The S&P 500 is up 1.5%, down slightly from session highs.

One last look at the S&P 500 sectors still shows broad-based gains ranging from 0.5% (financials) and 2.6% (health care). The financials sector had been an early leader in today's session.

WTI crude settled up $4.16 (+20.4%) to $24.53/bbl, fueled by expectations that reopening the economy will help demand recover.

[ReturntoSender]

Stocks close higher, Nasdaq turns positive for the year
07-May-20 16:20 ET

Dow +211.25 at 23875.89, Nasdaq +125.27 at 8979.68, S&P +32.77 at 2881.19

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

[BRIEFING.COM] Cyclical sectors led the S&P 500 to a 1.2% gain on Thursday, while mega-cap technology stocks carried the Nasdaq Composite to a 1.4% gain and into positive territory for the year. The Dow Jones Industrial Average rose 0.9%, and the Russell 2000 rose 1.6%.

The day started with investors receiving economic data that the market construed as relatively good: weekly initial jobless claims totaled 3.169 million (Briefing.com consensus 2.900 million), but it was encouraging that it reflected another 677,000 decline from the prior week. Likewise, China's imports fell more than expected in April, but an increase in exports was a nice surprise.

Weekly claims are a leading indicator, so the declining trend appeared to endorse the market's reopening/recovery enthusiasm, which was made apparent in the outperformance of the cyclical energy (+2.5%), financials (+2.2%), and materials (+2.1%) sectors.

The S&P 500 peaked at around the 2900 level before gradually paring gains throughout the afternoon. The defensive-oriented consumer staples (-0.4%) and health care (-0.1%) sectors closed in negative territory.

It was still a good day with many stocks receiving earnings-related boosts, including PayPal (PYPL 146.29, +17.98, +14.0%), T-Mobile US (TMUS 95.29, +8.70, +10.1%), Lyft (LYFT 31.78, +5.66, +21.7%), and Twilio (TWLO 170.89, +48.49, +39.6%). Investors were especially pleased to hear PayPal and Lyft noting improved/stabilizing conditions in April.

Moderna (MRNA 53.19, +4.24, +8.7%) was another story stock after announcing it received FDA approval to proceed to a Phase 2 trial for its COVID-19 vaccine candidate.

It wasn't a true risk-on day, though, as U.S. Treasuries padded gains throughout the session and WTI crude futures ($23.65/bbl, -0.30, -1.3%) gave up an intraday gain. The advance in Treasuries drove the 2-yr yield down six basis points to 0.11% and the 10-yr yield down eight basis points to 0.63%. The U.S. Dollar Index declined 0.2% to 99.88.

Reviewing Thursday's economic data:

Initial claims for the week ending May 2 decreased by 677,000 to 3.169 million (Briefing.com consensus 2.900 mln). Continuing claims for the week ending April 25 surged by 4,636,000 to 22.647 million, which is a record high.
The market, in its current frame of mind, is apt to see the decline in initial claims as relatively good news, yet the key takeaway from the report is that the massive influx of initial claims is just bad in an absolute sense for economic activity because those jobs won't be recovered nearly as quickly as they have been lost.
Nonfarm business sector labor productivity decreased 2.5% in the first quarter (Briefing.com consensus -6.0%) following a 1.2% increase in the fourth quarter. Unit labor costs increased 4.8% (Briefing.com consensus +2.9%) after increasing 0.9% in the fourth quarter.
The key takeaway from the report is that productivity was weak, which is a headwind to an increased standard of living. That headwind should be even stronger in the second quarter.
Consumer credit contracted by $12.1 bln in March (Briefing.com consenus $7.5 bln) after increasing a downwardly revised $20.0bln (from $22.3 bln) in February.
The key takeaway from the report is that it shows how banks and finance companies grew more restrictive in extending revolving credit to individuals in March.

Looking ahead, investors will receive the Employment Situation Report for April and Wholesale Inventories for March on Friday.

Nasdaq Composite +0.1% YTD
S&P 500 -10.8% YTD
Dow Jones Industrial Average -16.3% YTD
Russell 2000 -23.1% YTD


Market Snapshot
Dow 23875.89 +211.25 (0.89%)
Nasdaq 8979.68 +125.27 (1.41%)
SP 500 2881.19 +32.77 (1.15%)
10-yr Note +29/32 0.638

NYSE Adv 2090 Dec 767 Vol 955.3 mlnb
Nasdaq Adv 2228 Dec 964 Vol 3.7 bln


Industry Watch
Strong: Energy, Financials, Materials

Weak: Consumer Staples, Health Care


Moving the Market
-- Stocks close higher, Nasdaq turns positive for the year

-- Cyclical sectors outperform, led by financials and energy

-- Weekly jobless claims declined by 677,000 to 3.169 million (Briefing.com consensus 2.900 million)

-- Treasuries advance despite gains in stock market



WTI crude fades gains, settles lower
07-May-20 15:25 ET

Dow +216.44 at 23881.08, Nasdaq +120.54 at 8974.95, S&P +34.28 at 2882.70
[BRIEFING.COM] The S&P 500 is up 1.2%. Given the late-session fades over the past two sessions, the last 30 minutes of action will be interesting to watch.

Earlier, the Consumer Credit report for March showed consumer credit contract by $12.1 bln in March (Briefing.com consensus $7.5 bln) after increasing a downwardly revised $20.0 bln (from $22.3.0 billion) in February.

WTI crude futures settled down $0.30 (-1.3%) to $23.65/bbl.

[ReturntoSender]

S&P 500 recoups early decline and closes flat
11-May-20 16:20 ET
Dow -109.33 at 24221.99, Nasdaq +71.02 at 9192.36, S&P +0.39 at 2930.19

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

[BRIEFING.COM] The S&P 500 finished flat on Monday in a resilient session that started with the benchmark index down 0.9%. The Nasdaq Composite, powered by its mega-cap components, rose 0.8% while the Dow Jones Industrial Average (-0.5%) and Russell 2000 (-0.6%) closed lower.

Monday's lower start was seemingly rooted in pestering worries that reopening the economy too soon could cause additional outbreaks of COVID-19, especially after reports pointed to an uptick in cases in Germany and South Korea. The market quickly disavowed this view, which was likely a good excuse to take a breather, and it returned to positive territory by the afternoon.

Positive news today included New York Governor Cuomo saying he will end state-wide restrictions this Friday, allowing for the re-opening of some low-risk businesses, and Quidel (QDEL 208.95, +50.35, +31.8%) receiving FDA approval for its antigen test for COVID-19. The resiliency in the market likely pulled in under-allocated investors fearful of missing out on further gains.

Health care stocks saw the biggest gains following the antigen news, evidenced by the 1.7% advance in the S&P 500 health care sector. The most influential gains, though, came from the mega-cap technology stocks within the information technology (+0.7%), communication services (+0.1%), and consumer discretionary (+0.1%) sectors.

The S&P 500, which was nearing its April high (2954.86), did falter into the close, pressured by widening losses in the growth-oriented financials (-1.9%), energy (-1.7%), materials (-1.5%), and industrials (-1.3%) sectors.

Separately, shares of NVIDIA (NVDA 322.62, +10.12, +3.2%) set a new all-time high after its price target was raised to $350 from $270 at Needham.

U.S. Treasuries started the session little changed but steadily declined during the rebound in stocks. The 2-yr yield increased four basis points to 0.18%, and the 10-yr yield increased four basis points to 0.72%. The U.S. Dollar Index advanced 0.5% to 100.19. WTI crude lost 1.1%, or $0.25, to $24.46/bbl despite news that Saudi Arabia is planning to cut June production by an additional 1 mln barrels per day.

Investors did not receive any economic data on Monday. On Tuesday, investors will receive the Consumer Price Index for April, the NFIB Small Business Optimism Index for April, and the Treasury Budget for April.

Nasdaq Composite +2.5% YTD
S&P 500 -9.3% YTD
Dow Jones Industrial Average -15.1% YTD
Russell 2000 -20.7% YTD

Market Snapshot
Dow 24221.99 -109.33 (-0.45%)
Nasdaq 9192.36 +71.02 (0.78%)
SP 500 2930.19 +0.39 (0.01%)
10-yr Note -2/32 0.707
NYSE Adv 1003 Dec 1844 Vol 1.0 bln
Nasdaq Adv 1442 Dec 1801 Vol 3.9 bln

Industry Watch
Strong: Health Care, Consumer Staples, Information Technology
Weak: Financials, Materials, Energy

Moving the Market

-- S&P 500 recoups early losses in resilient trade

-- Defensive tone with mega-cap and health care stocks outperfo

[ReturntoSender]

Stocks close lower following cautious comments from Fed Chair Powell
13-May-20 16:20 ET
Dow -516.81 at 23247.97, Nasdaq -139.38 at 8863.19, S&P -50.12 at 2819.87

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

[BRIEFING.COM] The S&P 500 lost 1.8% on Wednesday in a broad-based decline, as investors respected some cautious commentary from Fed Chair Powell. The Dow Jones Industrial Average declined 2.2%, the Nasdaq Composite declined 1.6%, and the Russell 2000 declined 3.3%.

In his speech prior to the open, Fed Chair Powell said the economic outlook remained highly uncertain and subject to significant downside risks, adding that a recovery may take some time to gather momentum. Mr. Powell also said the Fed can do more to help the financial system but dismissed the notion of implementing negative interest rates.

The S&P 500 did trade in positive territory for a moment after the open, but sellers quickly regained control with losses broadening out to all 11 S&P 500 sectors. The energy (-4.4%) and financials (-3.0%) sectors took the biggest hits, while the consumer staples (-0.9%) and utilities (-0.9%) sectors declined less than 1.0%.

Investors were reminded today that part of the economic uncertainty referenced by Fed Chair Powell included U.S-China tensions and hurdles in COVID-19 testing. The latter was noted by a New York University study that suggested Abbott Lab's (ABT 92.16, -1.64, -1.8%) COVID-19 test is prone to false negatives.

Adding to U.S.-China tensions, the FBI confirmed that China-affiliated cyber actors have targeted U.S. organizations conducting COVID-19-related research. Also, a report out of China indicated that Beijing is mulling punitive countermeasure on the U.S. as a result of lawsuits that are seeking COVID-19-related damages.

Separately, valuation concerns were voiced by a couple of influential names. Legendary investor Stanley Druckenmiller said the risk-reward for equity is maybe as bad as he's seen it in his career. Appaloosa Management's David Tepper told CNBC that he hasn't seen the market this overvalued since 1999.

U.S. Treasuries ended the session slightly higher. The 2-yr yield declined one basis point to 0.15%, and the 10-yr yield declined three basis points to 0.65%. The U.S. Dollar Index increased 0.3% to 100.25. WTI crude declined 1.6%, or $0.42, to $25.34/bbl.

Reviewing Wednesday's economic data:

The Producer Price Index for final demand declined 1.3% m/m in April (Briefing.com consensus -0.5%), marking its biggest decrease since records began in December 2009. Most of that decline was attributed to a 3.3% drop in prices for final demand goods.
The Producer Price Index for April may not be convincing enough to the Fed to go down the negative interest rate road, yet the key takeaway is that it will certainly keep it on the path at the lower bound.
The weekly MBA Mortgage Applications Index increased 0.3% following a 0.1% increase in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report and Export and Import Prices for April on Thursday.

Nasdaq Composite -1.2% YTD
S&P 500 -12.7% YTD
Dow Jones Industrial Average -18.5% YTD
Russell 2000 -26.1% YTD

Market Snapshot
Dow 23247.97 -516.81 (-2.17%)
Nasdaq 8863.19 -139.38 (-1.55%)
SP 500 2819.87 -50.12 (-1.75%)
10-yr Note -4/32 0.653
NYSE Adv 325 Dec 2594 Vol 1.1 bln
Nasdaq Adv 623 Dec 2620 Vol 4.2 bln

Industry Watch
Strong: Consumer Staples, Utilities
Weak: Financials, Energy, Industrials

Moving the Market

-- Stocks close lower following cautious commentary from Fed Chair Powell

-- Powell cautions about prolonged economic recovery, suggests more stimulus may be needed

-- Broad-based decline with weakness in the energy and financials sectors

-- Valuation concerns, U.S.-China tensions, COVID-19 testing not perfect

WTI crude settles modestly lower
13-May-20 15:25 ET
Dow -671.69 at 23093.09, Nasdaq -232.15 at 8770.42, S&P -74.37 at 2795.62

[BRIEFING.COM] The S&P 500 is down 2.5% to extend its weekly decline to 4.6%.

One last look at the S&P 500 sector shows all sectors down more than 1%. Energy (-4.8%), financials (-3.3%), and industrials (-3.2%) lead the decline, while the consumer staples sector (-1.4%) sector is the down the least.

WTI crude futures settled down $0.42 (-1.6%) to $25.34/bbl.

[ReturntoSender]

Stocks close higher in turnaround trade led by financials
14-May-20 16:20 ET
Dow +377.37 at 23625.34, Nasdaq +80.55 at 8943.74, S&P +32.50 at 2852.37

https://stockcharts.com/def/servlet/ScanUI

[BRIEFING.COM] The S&P 500 advanced 1.2% on Thursday in a turnaround trade led by the beaten-up financials sector. The benchmark index was down as much as 1.9% in early action following a relatively disappointing weekly jobless claims report.

The Dow Jones Industrial Average increased 1.6%, and the Nasdaq Composite increased 0.9%. The Russell 2000 underperformed with a 0.4% gain.

Total jobless claims for the week ending May 9 totaled 2.981 million (Briefing.com consensus 2.475 million) while continuing claims for the week ending May 2 totaled 22.833 million. The elevated figures raised doubts on a timely economic recovery, but the data might have prodded lawmakers to act more quickly for additional fiscal stimulus.

Reports followed that the White House was interested in a bipartisan, fourth coronavirus relief bill (although not the $3 trillion bill proposed by House Democrats). The possibility for more stimulus, coupled with a view that the recent weakness in the market provided a good entry point, helped ignite a buy-the-dip mindset.

The S&P 500 financials sector (+2.6%) set the rebound pace amid strength in the bank stocks, including Wells Fargo (WFC 24.06, +1.53, +6.8%) amid speculation that it could merge with Goldman Sachs (GS 174.45, +2.65, +1.5%). The consumer staples sector (-0.3%) was the only sector without a gain today.

Sentiment might have also been boosted by an IEA report suggesting oil demand has been a little stronger than expected, The Wall Street Journal reporting that Taiwan Semi (TSM 52.10, +1.18, +2.3%) will announce plans to build an advanced chip factory in Arizona, and news that Connecticut overstated its weekly initial claims count by more than 200,000.

The IEA report likely contributed to the 8.3% gain in WTI crude futures ($27.44/bbl, +2.10). Separately, Cisco (CSCO 43.85, +1.90, +4.5%) was an earnings standout after the company issued positive quarterly results and guidance.

U.S. Treasuries finished mixed and little changed. The 2-yr yield increased one basis point to 0.16%%, while the 10-yr yield declined two basis points to 0.63%. The U.S. Dollar Index increased 0.1% to 100.31.

Reviewing Thursday's economic data, which featured the weekly jobless claims report:

Total jobless claims for the week ending May 9 were 2,981,000 (Briefing.com consensus 2.475 million). That was a decrease of 195,000 from the prior week, but still an exceedingly high number all things considered. Continuing claims for the week ending May 2 increased by 456,000 to 22.833 million, which is yet another record high.
The key takeaway from the report is that the alarmingly high level of initial and continuing claims paints a risk of a slower recovery due to weaker consumer spending activity and the rising potential that temporary job losses become permanent job losses in an elongated recovery process.
Import prices declined 2.6% in April, and prices, excluding oil, declined 0.5%. Export prices declined 3.3% in April, and prices, excluding agriculture, also declined 3.3%.

Looking ahead, investors will receive a big batch of data on Friday: Retail Sales for April, the Empire State Manufacturing Survey for May, Industrial Production and Capacity Utilization for April, Business Inventories for March, the JOLTS report for March, and Net Long-Term TIC Flows for March.

Nasdaq Composite -0.3% YTD
S&P 500 -11.7% YTD
Dow Jones Industrial Average -17.2% YTD
Russell 2000 -25.8% YTD

Market Snapshot
Dow 23625.34 +377.37 (1.62%)
Nasdaq 8943.74 +80.55 (0.91%)
SP 500 2852.37 +32.50 (1.15%)
10-yr Note +2/32 0.628
NYSE Adv 1585 Dec 1309 Vol 1.1 bln
Nasdaq Adv 1608 Dec 1653 Vol 3.9 bln

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

Moving the Market

-- Stocks stage rebound attempt led by the bank and energy stocks

-- Total jobless claims for the week ending May 9 were 2,981,000 (Briefing.com consensus 2.475 million).

-- White House reportedly interested in phase four stimulus bill

WTI crude rises 8%
14-May-20 15:30 ET
Dow +291.36 at 23539.33, Nasdaq +33.03 at 8896.22, S&P +19.90 at 2839.77

[BRIEFING.COM] The S&P 500 is trading at session highs with a 0.8% gain.

Most sectors have turned positive with the financials sector now an impressive 2.5%. The defensive-oriented real estate (-0.4%) and consumer staples (-0.2%) sectors are the lone holdouts.

WTI crude settled today's session higher by $2.10 (+8.3%) to $27.44/bbl.

[ReturntoSender]

Stocks close higher despite headline negativity
15-May-20 16:20 ET
Dow +60.08 at 23685.42, Nasdaq +70.84 at 9014.58, S&P +11.20 at 2863.57

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

[BRIEFING.COM] The S&P 500 (+0.4%), Dow Jones Industrial Average (+0.3%), and Nasdaq Composite (+0.8%) ended Friday's session modestly higher, recovering from early declines that followed more weak economic data and increased U.S.-China tensions. The Russell 2000 outperformed with a 1.6% gain after a rough week for the small-cap index.

The communication services (+1.3%), consumer discretionary (+1.1%), and materials (+1.0%) sectors led today's gains, helping the S&P 500 rebound from an early 1.3% decline. The utilities (-1.4%) and financials (-0.7%) sectors were Friday's laggards.

Early in the day, economic data showed total retail sales decline a record 16.4% m/m in April (Briefing.com consensus -11.9%) and industrial production decline 11.2% m/m in April (Briefing.com consensus -12.1%). The market wasn't visibly upset by the data, though, likely due to the prevailing view that it can't get any worse.

Instead, there was a negative reaction to news that the Trump administration moved to block semiconductor shipments to China's Huawei Technologies. With relations already strained because of the coronavirus outbreak, the move renewed worries about potential Chinese retaliation against U.S. companies.

Investors bought buy the dip, though, except in the semiconductor space given the headline negativity. The Philadelphia Semiconductor Index declined 2.2%, which included an earnings-related decline in Applied Materials (AMAT 52.04, -2.39, -4.4%).

Outside the semiconductor space, oil prices capped a strong week with another solid performance. WTI crude futures rose 7.1%, or $1.94, to $29.38/bbl today to extend its weekly advance to 18.8%.

DraftKings (DKNG 29.23, +3.92, +15.5%) was an individual standout after the sports betting company topped EPS estimates and provided positive commentary regarding its outlook.

U.S. Treasuries ended the week with modest losses. The 2-yr yield increased one basis point to 0.15%, and the 10-yr yield increased two basis points to 0.64%. The U.S. Dollar Index declined 0.1% to 100.38.

Reviewing Friday's economic data:

Total retail sales declined a record 16.4% m/m in April (Briefing.com consensus -11.9%) while retail sales, excluding autos, declined 17.2% m/m (Briefing.com consensus -8.2%).
The key takeaway from the report is that the broad-based weakness is a representation of the adverse spending shock that resulted from shutdown measures, announced pay cuts, and the massive jump in unemployment.
Industrial production declined 11.2% m/m in April (Briefing.com consensus -12.1%), which was the largest monthly drop in the 101-year history of the index. The capacity utilization rate fell from 73.2% to 64.9% (Briefing.com consensus 64.0%), which is 14.9 percentage points below its long-run average and a record-low in a series that dates back to 1967.
The key takeaway from the report is that it is a reflection of how industrial production cratered amid shutdown orders designed to contain the spread of COVID-19. On a yr/yr basis, industrial production was down 15.0%.
The University of Michigan's Index of Consumer Sentiment rose to 73.7 in the preliminary reading for May (Briefing.com consensus 67.4) from 71.8 in April.
The key takeaway from the report is that attitudes about current conditions improved while sentiment surrounding the outlook continued to deteriorate, pinched by concerns about financial prospects that were most notable among upper income households. That is apt to be a headwind for a pickup in consumer spending.
The Empire State Manufacturing Survey for May checked in at -48.5 (Briefing.com consensus -58.0) following the prior month's reading of -78.2.
March job openings decreased to 6.191 mln from a revised 7.004 mln in February (from 6.882 mln).
Business inventories decreased 0.2% in March, while the February reading was revised down to -0.5% from -0.4%.

Looking ahead, investors will receive the NAHB Housing Market Index for May on Monday.

Nasdaq Composite +0.5% YTD
S&P 500 -11.4% YTD
Dow Jones Industrial Average -17.0% YTD
Russell 2000 -24.7% YTD

Market Snapshot
Dow 23685.42 +60.08 (0.25%)
Nasdaq 9014.58 +70.84 (0.79%)
SP 500 2863.57 +11.20 (0.39%)
10-yr Note -25/32 0.650
NYSE Adv 1625 Dec 1217 Vol 1.4 bln
Nasdaq Adv 1985 Dec 1235 Vol 4.2 bln

Industry Watch
Strong: Communication Services, Consumer Discretionary, Materials
Weak: Utilities, Financials

Moving the Market

-- Stocks recoup early losses to lift major indices into positive territory

-- Increased tensions with China; Retail sales and industrial production were noticeably weak in April

-- Relative weakness in the semiconductor space after Trump administration moves to block semiconductor shipments to Huawei

WTI crude caps strong week with another x% gain
15-May-20 15:30 ET
Dow +50.00 at 23675.34, Nasdaq +50.58 at 8994.32, S&P +5.82 at 2858.19

[BRIEFING.COM] The S&P 500 continues to drift higher with a 0.2% gain. The Russell 2000 outperforms with a 1.5% gain to reduce its weekly decline to 5.6%.

One last look inside the S&P 500 sectors shows most trading higher now. The communication services (+1.1%) and consumer discretionary (+1.0%) sectors lead, while the utilities (-2.5%) and real estate (-1.1%) sectors lag.

WTI crude futures settled today's session higher by $1.94 (+7.1%) to $29.38/bbl. For the week, oil was up 18.8%.

[ReturntoSender]

Stocks bolstered by positive vaccine update
18-May-20 16:15 ET
Dow +911.95 at 24597.37, Nasdaq +220.27 at 9234.85, S&P +90.21 at 2953.78

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

[BRIEFING.COM] The S&P 500 rallied 3.2% on Monday, as reopening hopes were fueled by a positive vaccine update from Moderna (MRNA 80.00, +13.31, +20.0%). The small-cap Russell 2000 outperformed with a 6.1% gain, followed by the Dow Jones Industrial Average (+3.9%) and Nasdaq Composite (+2.4%).

Prior to the open, Moderna announced that a Phase 1 study for its COVID-19 vaccine candidate yielded positive interim clinical results. The company was hopeful that a Phase 3 trial could begin earlier than expected in July, and it started scaling up its manufacturing capacity so it can produce as much vaccine as possible if approved.

The news provided an added boost to the market, which was already trading higher following Fed Chair Powell's "60 Minutes" interview with CBS. Mr. Powell assured the market that the Fed is still not out of ammunition and suggested Congress should do more. Mr. Powell also said that a full economic recovery could take more than a year and will likely require a vaccine.

The timely vaccine update, then, coupled with the Fed's support and an increase in nationwide reopening efforts, helped ignite a cyclically-charged rally.

All 11 S&P 500 sectors finished higher, including leadership from the energy (+7.6%), industrials (+6.6%), and financials (+5.3%) sectors. Oil prices climbed 8.3%, or $2.44, to $31.82/bbl. Treasuries sold off, driving yields higher in a curve-steepening trade. The CBOE Volatility Index declined 8.0% to 29.33.

Apple (AAPL 314.96, +7.25, +2.4%), Walt Disney (DIS 116.85, +7.80, +7.2%), and Delta Air Lines (DAL 21.86, +2.67, +13.9%) were among the latest companies announcing plans to ramp up their reopening efforts.

Uber (UBER 33.62, +1.15, +3.5%), on the other hand, said it plans to reduce its workforce by an additional 3,000 employees and scale back its non-core businesses due to economic challenges caused by COVID-19. Shares were up nearly 11% following the news but retraced gains to close higher by 3.5%.

As mentioned, Treasury yields increased as safe-haven demand waned amid today's bullish mindset. The 2-yr yield increased four basis points to 0.19%, and the 10-yr yield increased ten basis points to 0.74%. The U.S. Dollar Index declined 0.8% to 99.60.

Monday's economic data was limited to the NAHB Housing Market Index for May, which increased to 37 (Briefing.com consensus 34) from 30 in April. Looking ahead, investors will receive Housing Starts and Building Permits for April on Tuesday.

Nasdaq Composite +2.9% YTD
S&P 500 -8.6% YTD
Dow Jones Industrial Average -13.8% YTD
Russell 2000 -20.1% YTD

Market Snapshot
Dow 24597.37 +911.95 (3.85%)
Nasdaq 9234.85 +220.27 (2.44%)
SP 500 2953.78 +90.21 (3.15%)
10-yr Note -8/32 0.726
NYSE Adv 2601 Dec 313 Vol 1.2 bln
Nasdaq Adv 2674 Dec 593 Vol 4.3 bln

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

Moving the Market

-- Stocks rallied following positive vaccine update from Moderna (MRNA), fueled reopening enthusiasm

-- Fed Chair Powell said central bank is not out of ammunition, suggests Congress should do more

-- Broad-based equity gains; oil prices climbed 8%, Treasuries decline in curve-steepening trade

WTI crude futures rise 8%
18-May-20 15:25 ET
Dow +922.90 at 24608.32, Nasdaq +221.90 at 9236.48, S&P +95.48 at 2959.05

[BRIEFING.COM] The S&P 500 continues to trade near session highs with a 3.3% gain.

One last look at the S&P 500 sectors shows the energy (+7.7%), industrials (+6.7%), and financials (+5.5%) sectors leading in gains. The health care (+1.3%) and consumer staples (+1.3%) sectors underperform, likely due to their defensive-oriented nature.

WTI crude futures settled today's session higher by $2.44 (+8.3%) to $31.82/bbl.

[ReturntoSender]

Stocks succumb to late-day selling
19-May-20 16:15 ET
Dow -390.51 at 24206.86, Nasdaq -49.72 at 9185.13, S&P -30.97 at 2922.81

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

[BRIEFING.COM] The S&P 500 pulled back 1.1% on Tuesday, as stocks succumbed to late-day selling following a negative-sounding vaccine headline. The Dow Jones Industrial Average (-1.6%) and Russell 2000 (-2.0%) declined more than the benchmark index, while the Nasdaq Composite (-0.5%) fared slightly better.

For most of the session, the S&P 500 wavered around its flat line, supported by relative strength in the technology stocks. As the S&P 500 traded at session highs (+0.4%) late in the session, Stat News published a report in which vaccine experts cautioned about Moderna's (MRNA 71.67, -8.33, -10.4%) COVID-19 vaccine candidate due to a lack of critical data provided.

Recall, stocks rallied on Monday after the company said a Phase 1 trial yielded positive results. The negative-sounding headline, then, provided a good excuse for investors to take some profits given the uncertainty that remains.

All 11 S&P 500 sectors finished in negative territory, most notably the financials (-2.5%) and energy (-2.9%) sectors. The consumer discretionary (-0.1%), information technology (-0.4%), and communication services (-0.4%) sectors gave up gains as selling accelerated into the close.

In Washington, Fed Chair Powell and Treasury Secretary Mnuchin testified before the Senate Banking Committee regarding the government response to COVID-19. Mr. Powell reiterated the Fed's commitment to using its full range of tools to support the economy, and Mr. Mnuchin said he's prepared to increase risk and lend more money.

The testimony was not a market-moving event, while several stocks did react to specific corporate news. For example, Dow components Walmart (WMT 124.95, -2.71, -2.1%) and Home Depot (HD 238.10, -7.25, -3.0%) finished lower following their earnings reports.

Separately, Facebook (FB 216.88, +3.69, +1.7%) introduced "Facebook Shops" and "Instagram Shop" to help more businesses go online. Spotify (SPOT 175.03, +13.60, +8.4%) shares climbed 8% after the company reached a deal to exclusively host the Joe Rogan Experience podcast.

U.S. Treasuries ended the session with small gains. The 2-yr yield declined one basis point to 0.18%, and the 10-yr yield declined three basis points to 0.71%. The U.S. Dollar Index declined 0.1% to 99.55. WTI crude rose another 1.5%, or $0.48, to $32.30/bbl.

Reviewing Tuesday's economic data:

Housing starts fell 30.2% m/m in April to a seasonally adjusted annual rate of 891,000 (Briefing.com consensus 950,000). Building permits were down 20.8% m/m to a seasonally adjusted annual rate of 1.074 million (Briefing.com consensus 1.000 mln).
The key takeaway from the report is that while building permits exceeded expectations, permits for single-family dwellings decreased 24.3% m/m to 669,000, which points to a slowing market.

Looking ahead, investors will receive the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +2.4% YTD
S&P 500 -9.5% YTD
Dow Jones Industrial Average -15.2% YTD
Russell 2000 -21.6% YTD

[ReturntoSender]

S&P 500 closes at highest level since March 6
20-May-20 16:15 ET
Dow +369.04 at 24575.90, Nasdaq +190.67 at 9375.80, S&P +48.67 at 2971.48

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

[BRIEFING.COM] The S&P 500 gained 1.7% on Wednesday in a broad-based advance to close at its highest level since March 6. The Nasdaq Composite (+2.1%) and Russell 2000 (+3.0%) increased more than the benchmark index, while the Dow Jones Industrial Average rose 1.5%.

Stocks reclaimed the prior day's losses at the open and proceeded to drift higher throughout the day. The market remained resilient with little news to meaningfully deter its bullish mindset or economic recovery hopes. All 11 S&P 500 sectors contributed to the advance.

The energy sector (+3.8%) followed oil prices ($33.51, +1.21, +3.8%) higher after EIA data showed an unexpected weekly decline in crude inventories. The financials (+2.2%) and communication services (+2.7%) sectors followed suit, with the latter benefiting from a 6.0% gain in shares of Facebook (FB 229.97, +13.09). The health care sector (+0.1%) eked out a small gain.

In Washington, the Senate passed the Holding Foreign Companies Accountable Act, which requires certain foreign companies listed in the U.S. to certify that they are not owned or controlled by a foreign government. Failure to provide appropriate certification could result in de-listing.

The increased scrutiny on Chinese companies pressured shares of Alibaba (BABA 216.79, -0.41, -0.2%) and Baidu (BIDU 108.52, -1.23, -1.1%), while the broader U.S. market was barely bothered by the bill's potential to worsen U.S.-China tensions.

Shares of Target (TGT 119.63, -3.53, -2.9%) and Lowe's (LOW 116.99, +0.12, +0.1%) struggled throughout the session despite beating top and bottom-line estimates. TGT shares fell 3%, while LOW shares squandered an early 5% gain. Analog Devices (ADI 114.57, +8.24, +7.8%) was an earnings standout.

Separately, the FOMC Minutes from the April meeting revealed that policymakers discussed targeting yields on shorter tenors and considered changes to how forward guidance is expressed. The 2-yr yield declined two basis points to 0.16%, and the 10-yr yield declined three basis points to 0.68%. The U.S. Dollar Index declined 0.2% to 99.14.

Wednesday's economic data was limited to the weekly MBA Mortgage Applications Index, which decreased 2.6% following a 0.3% increase in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, Existing Home Sales for April, the Philadelphia Fed Index for May, and the Conference Board's Leading Economic Index for April on Thursday.

Nasdaq Composite +4.5% YTD
S&P 500 -8.0% YTD
Dow Jones Industrial Average -13.9% YTD
Russell 2000 -19.3% YTD

Market Snapshot
Dow 24575.90 +369.04 (1.52%)
Nasdaq 9375.80 +190.67 (2.08%)
SP 500 2971.48 +48.67 (1.67%)
10-yr Note +1/32 0.685
NYSE Adv 2312 Dec 589 Vol 921.0 mln
Nasdaq Adv 2558 Dec 696 Vol 4.2 bln

Industry Watch
Strong: Energy, Financials, Communication Services, Industrials
Weak: Health Care, Utilities

Moving the Market

-- S&P 500 closes at highest level since March 6

-- Broad-based advance, relative strength in energy, financials, and communication services sectors

-- Little news to deter market's bullish mindset, recovery hopes

WTI crude extends rally by 4%
20-May-20 15:25 ET
Dow +361.64 at 24568.50, Nasdaq +183.16 at 9368.29, S&P +48.13 at 2970.94

[BRIEFING.COM] The S&P 500 continues to sport a solid 1.7% gain.

One last look at the S&P 500 sectors shows all 11 sectors still trading in positive territory. The energy (+3.7%), communication services (+2.7%), and financials (+2.4%) sectors set the performance pace, while the health care sector (+0.2%) sectors clings onto a slim gain.

WTI crude futures settled today's session higher by $1.21 (+3.8%) to $33.51/bbl.

[ReturntoSender]

S&P 500 ekes out gain in front of holiday weekend
22-May-20 16:20 ET
Dow -8.96 at 24465.16, Nasdaq +39.71 at 9324.61, S&P +6.94 at 2955.32

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

[BRIEFING.COM] The major indices closed near session highs on Friday, preserving their weekly gains in front of the Memorial Day weekend. The S&P 500 increased 0.2%, the Nasdaq Composite increased 0.4%, and the Russell 2000 increased 0.6%. The Dow Jones Industrial Average (-0.04%) finished just below its flat line.

From a sector perspective, investors leaned defensively, evident by the positive performances from the S&P 500 real estate (+2.2%), utilities (+1.1%), and consumer staples (+0.3%) sectors. The information technology (+0.4%) and communication services (+0.5%) sectors also closed higher.

The tech sector was perked up by shares of NVIDIA (NVDA 361.05, +10.04, +2.9%) after the company reported positive quarterly results and upbeat guidance. Conversely, many of the cyclical sectors closed lower, including energy (-0.7%) and financials (-0.3%). Energy stocks were clipped by the decline in oil prices ($33.25, -0.71, -2.1%).

The price action was relatively muted throughout the day, with the broader market barely reacting to positive or negative news. The S&P 500 traded lower for most of the day, so the positive finish was good to see for the bulls.

Today's negative news came out of China as reports indicated it was going to implement national security laws on Hong Kong to tighten its control over the region. The Hang Seng Index declined 5.6% on Friday, while shares of Alibaba (BABA 199.70, -12.46, -5.9%) declined 6% despite beating quarterly estimates.

Separately, NIAID Director Fauci told media outlets that he was "cautiously optimistic" about Moderna's (MRNA 69.00, +1.95, +2.9%) COVID-19 vaccine candidate and that it was possible to develop a vaccine by the end of the year.

U.S. Treasuries closed mixed. The 2-yr yield increased two basis points to 0.17%, while the 10-yr yield decreased two basis points to 0.66%. The U.S. Dollar Index increased 0.4% to 99.77.

Investors did not receive any economic data on Friday and will not receive any on Monday due to the market's closure for Memorial Day.

Nasdaq Composite +3.9% YTD
S&P 500 -8.5% YTD
Dow Jones Industrial Average -14.3% YTD
Russell 2000 -18.8% YTD

Market Snapshot
Dow 24465.16 -8.96 (-0.04%)
Nasdaq 9324.61 +39.71 (0.43%)
SP 500 2955.32 +6.94 (0.24%)
10-yr Note +1/32 0.661
NYSE Adv 1640 Dec 1246 Vol 719.7 mln
Nasdaq Adv 1845 Dec 1357 Vol 3.6 bln

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

Moving the Market

-- S&P 500 ekes out gain in front of the Memorial Day weekend

-- Defensive-oriented sectors outperformed

-- China withdraws 2020 GDP growth target, says it will implement national security laws on Hong Kong

WTI crude caps strong week on lower note
22-May-20 15:25 ET
Dow -93.92 at 24380.20, Nasdaq +10.47 at 9295.37, S&P -3.09 at 2945.29

[BRIEFING.COM] The S&P 500 has slipped back below its flat line with 30 minutes left to go in the session. The Russell 2000 is up 0.3%, extending its weekly gain to 7.6%.

One last peak into the S&P 500 sectors shows energy (-1.2%) and financials (-0.6%) weighing on the broader market, while support is coming from the real estate (+1.5%), utilities (+0.4%), and communication services (+0.2%) sectors.

WTI crude futures settled down $0.71 (-2.1%) to $33.25/bbl but still ended the week higher by 13.2%.

[ReturntoSender]

Stocks give up intraday gains on China uncertainty
28-May-20 16:20 ET
Dow -147.63 at 25400.64, Nasdaq -43.37 at 9369.01, S&P -6.40 at 3029.60

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

[BRIEFING.COM] U.S. stocks trimmed weekly gains on Thursday, as headline uncertainty related to China caused the major indices to falter into the close. The S&P 500 (-0.2%), Dow Jones Industrial Average (-0.6%), and Nasdaq Composite (-0.5%) finished slightly lower. The Russell 2000, which traded lower for most of the session, declined 2.5%.

The market started the session little changed, catching its breath after a strong two-day rally, but also after China approved legislation to tighten its control over Hong Kong, weekly initial jobless claims totaled 2.123 million (Briefing.com consensus 1.950 million), and Q1 GDP was revised down to -5.0% (Briefing.com consensus -4.8%) from -4.8% in the advance estimate.

Investors, at first, didn't feel inclined to sell given the fear of missing out on further gains amid growing signs of an economic recovery. Buyers, instead, concentrated their efforts toward the defensive-oriented segments of the market, such as the leading S&P 500 utilities (+3.0%), health care (+1.3%), and real estate (+1.2%) sectors.

Sellers later took control after President Trump said late in the session that he will hold a press event about China on Friday. Reports indicated that the president could unveil sanctions on Chinese officials in response to the Hong Kong national security law, threatening to exacerbate U.S.-China tensions.

The S&P 500 energy (-2.9%) and financials (-1.6%) sectors accelerated intraday losses following the headline negativity, while the consumer discretionary (-1.1%), industrials (-1.0%), and communication services (-1.0%) sectors fell into negative territory.

Shares of Facebook (FB 225.46, -3.68, -1.6%) and Twitter (TWTR 31.60, -1.47, -4.5%), meanwhile, were pressured by President Trump's executive-order plans to limit legal protections for social media companies that unfairly stifle free speech.

Separately, Workday (WDAY 182.56, +12.18, +7.2%) and Dollar Tree (DLTR 97.64, +10.11, +11.6%) stood out after pleasing investors with their earnings reports, while HP Inc. (HPQ 15.01, -2.11, -12.3%) disappointed investors with its results.

U.S. Treasuries ended the session mixed. The 2-yr yield was unchanged at 0.17%, while the 10-yr yield increased three basis points to 0.71%. The U.S. Dollar Index declined 0.6% to 98.50. WTI crude futures rose 2.7%, or $0.89, to $33.68/bbl.

Reviewing Thursday's batch of economic data:

Initial claims for the week ending May 23 decreased by 323,000 to 2.123 million (Briefing.com consensus 1.950 million). Continuing claims for the week ending May 16 decreased by 3,860,000 to 21.052 million.
The key takeaway from the report will be the downturn in continuing claims, which will feed into the market's upbeat view about reopening prospects.
New orders for durable goods declined 17.2% m/m in April (Briefing.com consensus -17.0%) following a downwardly revised 16.6% decline (from -14.4%) in March. Excluding transportation, new orders for durable goods declined 7.4% m/m (Briefing.com consensus -8.4%) following a downwardly revised 1.7% decline (from -0.2%) in March.
The key takeaway from the report is that it wasn't much of a surprise as activity in April seized up with the shutdown measures employed to contain the spread of the coronavirus.
The second estimate for Q1 GDP showed a downward revision to -5.0% (Briefing.com consensus -4.8%) from the 4.8% decline seen in the advance estimate. The GDP Price Deflator was revised up to 1.4% (Briefing.com consensus 1.3%) from 1.3%.
The key takeaway from the report is that it's old news for a market that is clearly locked on the idea that economic activity is going to be rebounding in coming months.
Pending Home Sales dropped 21.8% in April (Briefing.com consensus -4.8%) after declining an unrevised 20.8% in March.

Looking ahead to Friday, investors will receive the Personal Income and Spending report for April, the revised University of Michigan Index of Consumer Sentiment for May, the Chicago PMI for May, and the Advance International Trade in Goods, Retail Inventories, and Wholesale Goods reports for April.

Nasdaq Composite +4.4% YTD
S&P 500 -6.2% YTD
Dow Jones Industrial Average -11.0% YTD
Russell 2000 -16.1% YTD

Market Snapshot
Dow 25400.64 -147.63 (-0.58%)
Nasdaq 9369.01 -43.37 (-0.46%)
SP 500 3029.60 -6.40 (-0.21%)
10-yr Note -1/32 0.700
NYSE Adv 1220 Dec 1665 Vol 1.0 bln
Nasdaq Adv 1107 Dec 2135 Vol 4.0 bln

Industry Watch
Strong: Health Care, Utilities, Real Estate
Weak: Financials, Energy, Consumer Discretionary, Industrials, Communication Services

Moving the Market

-- President Trump said he will hold a press event about China on Friday, headline uncertainty causes stocks to give up intraday gains

-- Weekly initial jobless claims totaled 2.123 million (Briefing.com consensus 1.950 million)

-- Defensive-minded session

WTI crude gains nearly 3%
28-May-20 15:30 ET
Dow +29.50 at 25577.77, Nasdaq +32.35 at 9444.73, S&P +13.70 at 3049.70

[BRIEFING.COM] The S&P 500 is losing some gains and is currently up 0.5%.

Looking at the S&P 500 sectors shows mixed results. The utilities (+3.1%), health care (+1.9%), and materials (+1.4%) sectors remain today's leaders, while the energy (-1.6%), financials (-0.6%), and consumer discretionary (-0.3%) sectors lag.

WTI crude futures settled today's session up $0.89 (+2.7%) to $33.68/bbl.

[ReturntoSender]

Stocks extend rally in pain trade to the upside
02-Jun-20 16:20 ET
Dow +267.63 at 25742.65, Nasdaq +56.33 at 9608.40, S&P +25.09 at 3080.69

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

[BRIEFING.COM] The S&P 500 increased 0.8% on Tuesday, paced higher by all 11 of its sectors in a "pain trade" to the upside. The Dow Jones Industrial Average increased 1.1%, the Nasdaq Composite increased 0.6%, and the Russell 2000 increased 0.9%.

Cyclical sectors that stand to benefit directly from an increase in economic activity, such as the S&P 500 energy (+2.7%), materials (+1.8%), and industrials (+1.3%) sectors, saw the biggest gains today. A strong finish into the close also lifted the consumer staples (+0.2%) and communication services (+0.5%) sectors into positive territory.

Some attributed the strong finish to a report from Sputnik News, which indicated that a limited COVID-19 vaccine could come by the end of the year, according to a U.S. Army medical researcher.

The gains above reflected the persistent reopening enthusiasm, but the price action was described as a "pain trade" due to underallocated investors, awaiting a pullback, presumably giving in to chase the market higher. That's what it felt like, at least, as many have been awestruck by the market's furious rally off its March 23 low.

Visa (V 193.36, +2.01, +1.0%) and Western Union (WU 23.05, +2.34, +11.3%) were among the latest companies noting stabilizing/improving conditions in May, providing some assurance for bullish investors.

Visa, specifically, saw total U.S. payments volume decline just 5% yr/yr in May versus an 18% decline in April. Western Union shares were also boosted by news that it's seeking to acquire smaller rival MoneyGram (MGI 3.36, +0.77, +29.7%), according to Bloomberg Law.

Separately, Goldman Sachs (GS 204.14, +4.21, +2.1%) and Microsoft (MSFT 184.91, +2.08, +1.1%) received price-target increases to $230 and $250, respectively, at Wells Fargo. The turnaround in MSFT shares, which were down nearly 1% intraday, helped support the broader market in afternoon trade.

U.S. Treasuries ended the session on a lower note, pushing yields slightly higher. The 2-yr yield increased two basis points to 0.16%, and the 10-yr yield increased two basis points to 0.68%. The U.S. Dollar Index declined 0.1% to 97.72. WTI crude rose 3.8%, or $1.35, to $36.80/bbl.

Investors did not receive any notable economic reports on Tuesday. Looking ahead, investors will receive the ADP Employment Change report for May, the ISM Non-Manufacturing Index for May, Factory Orders for April, and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +7.1% YTD
S&P 500 -4.6% YTD
Dow Jones Industrial Average -9.8% YTD
Russell 2000 -15.0% YTD

Market Snapshot
Dow 25742.65 +267.63 (1.05%)
Nasdaq 9608.40 +56.33 (0.59%)
SP 500 3080.69 +25.09 (0.82%)
10-yr Note -2/32 0.678
NYSE Adv 2146 Dec 753 Vol 1.0 bln
Nasdaq Adv 2017 Dec 1240 Vol 3.9 bln

Industry Watch
Strong: Energy, Materials, Industrials
Weak: Consumer Staples

Moving the Market

-- Stock market closes near session highs in "pain trade"

-- Continued optimism about an economic recovery; cyclical sectors outperformed

-- Turnaround in mega-cap stocks supported the market's strong finish

WTI crude gains nearly 4%
02-Jun-20 15:30 ET
Dow +103.23 at 25578.25, Nasdaq -1.78 at 9550.29, S&P +5.56 at 3061.16

[BRIEFING.COM] The S&P 500 continues to pare gains and is now up just 0.2%.

One last look at the S&P 500 sectors shows nine of the 11 sectors trading in positive territory. The energy (+2.0%), materials (+1.6%), and industrials (+1.1%) remain in the lead, while the consumer staples (-0.4%) and communication services (-0.1%) sectors tick lower.

WTI crude futures settled today's session up $1.35 (+3.8%) to $36.80/bbl.

[ReturntoSender]

S&P 500 snaps winning streak, but Dow closes higher
04-Jun-20 16:20 ET

Dow +11.93 at 26281.82, Nasdaq -67.10 at 9615.84, S&P -10.52 at 3112.22

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

[BRIEFING.COM] The S&P 500 declined 0.3% on Thursday in a mixed session to snap a four-session winning streak. The Dow Jones Industrial Average eked out a 0.1% gain, the Nasdaq Composite declined 0.7%, and the Russell 2000 closed flat.

Early in the session, the S&P 500 overcame a negative start, but failed to break above the 3130 level, which was yesterday's high and the high from March 4. The Nasdaq 100 (-0.8%) even set a new all-time high before retracing gains alongside the broader market. Technical factors, then, appeared to have a role in calming this market down.

The information technology (-0.8%) and health care (-0.8%) sectors were influential laggards, but the rate-sensitive real estate (-1.8%) and utilities (-2.0%) sectors declined the most amid an increase in longer-dated Treasury yields. The 10-yr yield rose six basis points to 0.82%, while the 2-yr yield was flat at 0.19%.

There were pockets of relative strength, though, specifically in the S&P 500 financials (+2.0%) and industrials (+1.1%) sectors, the Philadelphia Semiconductor Index (+0.8%), and in many of the travel-related industries. The battered travel stocks exhibited huge gains today.

The latter were boosted by American Airlines (AAL 16.74, +4.89, +41.3%) announcing plans to increase its domestic flying schedule for the summer travel season due to improving demand. AAL shares surged 41% while Boeing (BA 184.30, +11.14, +6.4%) shares rose 6%.

In other developments, weekly initial claims remained elevated at 1.877 million (Briefing.com consensus 1.800 million), continuing claims increased by 649,000 to 21.487 million, and the ECB increased its pandemic emergency purchase program by EUR600 billion to a total of EUR1.350 trillion. The ECB extended this program until at least the end of June 2021.

The aggressive stimulus from the ECB fueled optimism about a recovery in Europe, which could be on the verge of a stronger fiscal union. The euro continued to rise against the dollar, contributing to another 0.5% decline in the U.S. Dollar Index (96.82).

Reviewing Thursday's economic data:

Initial claims for the week ending May 30 decreased by 249,000 to 1.877 million (Briefing.com consensus 1.800 million). Continuing claims for the week ending May 23 increased by 649,000 to 21.487 million.
The key takeaway from the report is twofold: (1) initial claims are still extremely high and (2) continuing claims didn't continue to improve, denoting some slowness in rehiring activity.
A revision reported by the BLS indicated nonfarm business sector labor productivity decreased 0.9% (Briefing.com consensus -2.6%) in the first quarter versus an originally reported decrease of 2.5%. Unit labor costs, meanwhile, increased 5.1% versus an originally reported 4.8% increase.
The key takeaway from the report is that productivity was better than expected in the first quarter, but it was still weak all the same.
The U.S. trade deficit widened to $49.4 billion in April (Briefing.com consensus -$49.8 billion) from an upwardly revised $42.3 billion (from -$44.4 billion) in March.
The key takeaway from the report is that it was accented by a sizable decline in both exports and imports, which was a byproduct of reduced demand due to shutdown measures implemented around the globe to help contain the spread of COVID-19.

Looking ahead, investors will receive the Employment Situation Report for May and Consumer Credit for April on Friday.

Nasdaq Composite +7.2% YTD
S&P 500 -3.7% YTD
Dow Jones Industrial Average -7.9% YTD
Russell 2000 -13.0% YTD


Market Snapshot
Dow 26281.82 +11.93 (0.05%)
Nasdaq 9615.84 -67.10 (-0.69%)
SP 500 3112.22 -10.52 (-0.34%)
10-yr Note -7/32 0.821

NYSE Adv 1610 Dec 1296 Vol 1.2 bln
Nasdaq Adv 1689 Dec 1589 Vol 6.0 bln


Industry Watch
Strong: Financials, Industrials, Materials

Weak: Utilities, Real Estate, Health Care, Information Technology


Moving the Market
-- Stocks close mixed, S&P 500 snaps four-session winning streak while Dow closes higher

-- Travel-related stocks boosted by positive update from American Airlines (AAL)

-- Weekly initial claims decreased by 323,000 to 2.123 million (Briefing.com consensus 1.950 million), while continuing claims increased 21.487 million

-- ECB increased its pandemic emergency purchase program by EUR600 billion to a total of EUR1.350 trillion



WTI crude ekes out gain
04-Jun-20 15:30 ET

Dow -116.10 at 26153.79, Nasdaq -95.91 at 9587.03, S&P -23.86 at 3098.88
[BRIEFING.COM] The S&P 500 is trading lower by 0.8% and is on pace to close lower for the first time in five sessions.

One last look at the S&P 500 sectors shows utilities (-3.0%) and real estate (-2.4%) continuing to feel the burden of the increase in longer-dated Treasuries, while the financials (+1.3%) and industrials (+0.6%) sectors continue to sport solid gains.

WTI crude futures settled today's session higher by $0.14 (+0.4%) to $37.42/bbl.

[ReturntoSender]

Stocks rally on surprisingly positive employment report
05-Jun-20 16:20 ET
Dow +829.16 at 27110.98, Nasdaq +198.27 at 9814.11, S&P +81.58 at 3193.80

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

[BRIEFING.COM] U.S. stocks rallied to end a strong week after the May employment report showcased an unexpected increase in payrolls. The S&P 500 rose 2.6%, and the Nasdaq Composite rose 2.1%, setting a new intraday high in the process. The Dow Jones Industrial Average (+3.2%) and Russell 2000 (+3.8%) outperformed again.

Consensus estimates were projecting millions more in job losses in May. Instead, nonfarm payrolls increased by 2.509 million (Briefing.com consensus -8.50 million), and private sector payrolls increased by 3.094 million (Briefing.com consensus -8.8 million). The unemployment rate even ticked lower to 13.3% (Briefing.com consensus 19.9%) from 14.7% in April.

The stock market was already on track for a higher start prior to the report's release, but equity index futures shot higher immediately after the release as the data suggested a recovery was occurring quicker than anticipated. After the open, it was a relatively smooth advance throughout the day.

The S&P 500 energy (+7.5%), financials (+3.9%), and industrials (+3.7%) sectors posted solid gains that lifted each sector above 10% for the week. All sectors finished higher today, but the utilities (+1.4%) and consumer staples (+1.5%) sectors struggled to keep pace with the benchmark index.

Investors continued to pile into value-oriented stocks like Boeing (BA 205.43, +21.13, +11.5%), which rose 41% this week, but also bought heavyweight favorites like Apple (AAPL 331.50, +9.18, +2.9%), which set a new all-time high today.

The continued rise in oil prices ($39.50, +2.08, +5.6%) ahead of an OPEC+ meeting this weekend continued to attract buyers into the energy sector. In the semiconductor space, Broadcom (AVGO 317.08, +8.19, +2.7%) satisfied investors with its earnings report and in-line guidance. The Philadelphia Semiconductor Index (+2.6%) closed at a record high.

U.S. Treasuries ended the session with losses, especially on the longer-end of the curve. The 2-yr yield increased two basis points to 0.21%, while the 10-yr yield increased eight basis points to 0.90% -- its highest level since March 20. The U.S. Dollar Index increased 0.3% to 97.00.

Reviewing Friday's economic data, which featured the Employment Situation Report for May:

May nonfarm payrolls increased by 2.509 million (Briefing.com consensus -8.50 million). May private sector payrolls increased by 3.094 million (Briefing.com consensus -8.8 million). May unemployment rate was 13.3% (Briefing.com consensus 19.9%), versus 14.7% in April.
The key takeaway from the report is that the surprising increase in nonfarm payrolls and nonfarm private payrolls reflects an economy getting back to work even sooner than the market itself was anticipating, which is why equity index futures shot higher and bond prices shot lower immediately following the release.
Consumer credit contracted by $68.7 billion in April (Briefing.com consensus -$42.0 billion) after declining an upwardly revised $6.9 bln (from -$12.1 billion) in March.
The key takeaway from the report is that it shows how banks and finance companies grew more restrictive in extending credit to individuals in April as job losses, and concerns about repayment capabilities, mounted.

Investors will not receive any notable economic data on Monday.

Nasdaq Composite +9.4% YTD
S&P 500 -1.1% YTD
Dow Jones Industrial Average -5.0% YTD
Russell 2000 -9.7% YTD

Market Snapshot
Dow 27110.98 +829.16 (3.15%)
Nasdaq 9814.11 +198.27 (2.06%)
SP 500 3193.80 +81.58 (2.62%)
10-yr Note -28/32 0.888
NYSE Adv 2488 Dec 439 Vol 1.5 bln
Nasdaq Adv 2503 Dec 802 Vol 6.5 bln

Industry Watch
Strong: Energy, Financials, Industrials, Real Estate
Weak: Consumer Staples, Utilities

Moving the Market

-- Stocks rally after surprisingly positive employment report for May, Nasdaq sets new intraday high

-- May nonfarm payrolls increased by 2.509 million (Briefing.com consensus -8.50 million), unemployment rate ticks lower to 13.3% (Briefing.com consensus 19.9%) from 14.7% in April.

-- Broad-based advance led by the cyclical sectors

-- 10-yr yield (0.90%) rises to March levels

WTI crude rises more than 5% ahead of OPEC+ meeting
05-Jun-20 15:30 ET
Dow +870.58 at 27152.40, Nasdaq +216.88 at 9832.72, S&P +87.50 at 3199.72

[BRIEFING.COM] The S&P 500 is up 2.8% and on pace to end the week higher by 5.1%.

One last look into the S&P 500 sector standings shows energy (+7.0%) setting the performance pace with a 7.0% gain. The financials (+4.0%) and industrials (+3.8%) sectors follow suit, while the consumer staples sector (+1.7%) underperforms.

WTI crude futures settled the session higher by $2.08 (+5.6%) to $39.50/bbl ahead of the OPEC+ production cut meeting on Saturday.

[ReturntoSender]

S&P 500 turns positive for the year
08-Jun-20 16:15 ET
Dow +461.46 at 27572.44, Nasdaq +110.66 at 9924.77, S&P +38.46 at 3232.26

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

[BRIEFING.COM] The S&P 500 rose 1.2% on Monday, turning positive for the year amid continued strength in value and cyclical stocks. The Nasdaq Composite (+1.1%) closed at a new all-time high, while the Dow Jones Industrial Average (+1.7%) and Russell 2000 (+2.0%) pulled ahead.

There were few macro developments to alter the market's bullish trend, allowing investors to continue to pile into beaten-up stocks that have more upside potential with a ramp-up in economic activity. Boeing (BA 230.50, +25.07, +12.2%) was one such name, including others within the airline, cruise line, energy, and retail industries.

All 11 S&P 500 sectors closed higher. The energy sector set the performance pace with a 4.3% gain, followed by the utilities (+2.6%) and real estate (+2.2%) sectors. The materials sector (+0.1%) eked out a last-minute gain as the broader market rallied into the close. The information technology sector (+0.5%) overcame an early 1.2% decline.

The market's persistent gains since the March 23 low appeared to engender a sense of trading complacency. Hertz (HTZ 5.53, +2.96, +115.2%), for example, filed for Chapter 11 bankruptcy protection on May 26, but the stock finished the session up 888% since its May 26 closing price, including today's 115% gain.

The Fed's loose monetary policy has played a large role in the stock market's V-shaped recovery. On Monday, the central bank expanded its Main Street Lending Program to allow more small and medium-sized businesses to receive financial support.

Separately, Amazon (AMZN 2524.06, +41.06, +1.7%) shares hit a new all-time high, benefiting from RBC Capital Mkts raising its price target to $3300 from $2700.

U.S. Treasuries ended the session mixed. The 2-yr yield increased one basis point to 0.22%, while the 10-yr yield declined two basis points to 0.88%. The U.S. Dollar Index declined 0.3% to 96.67. WTI crude declined 3.2%, or $1.26, to $38.24/bbl. On a related note, OPEC+ agreed to extend the 9.7 mbpd production output cut through the end of July.

Investors did not receive any economic data on Monday. Looking ahead to Tuesday, investors will receive the NFIB Small Business Optimism Index for May, the JOLTS - Job Openings report for April, and Wholesale Inventories for April.

Nasdaq Composite +10.6% YTD
S&P 500 +0.1% YTD
Dow Jones Industrial Average -3.4% YTD
Russell 2000 -7.9% YTD

Market Snapshot
Dow 27572.44 +461.46 (1.70%)
Nasdaq 9924.77 +110.66 (1.13%)
SP 500 3232.26 +38.46 (1.20%)
10-yr Note +3/32 0.874
NYSE Adv 2396 Dec 550 Vol 1.4 bln
Nasdaq Adv 2470 Dec 856 Vol 6.1 bln

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

Moving the Market

-- S&P 500 extends recovery rally, Nasdaq sets new all-time high

-- Value-oriented and cyclical stocks remain strong; relative weakness in tech stocks

-- Little macro news to deter positive trend

WTI crude gives back 3% to start the week
08-Jun-20 15:25 ET
Dow +320.87 at 27431.85, Nasdaq +76.62 at 9890.73, S&P +24.97 at 3218.77

[BRIEFING.COM] The S&P 500 is up 0.8% and has manged to cut its yearly decline to just 0.4%.

Leading the effort today are the energy (+3.2%), utilities (+2.2%), and real estate (+1.6%) sectors. The materials sector (-0.4%) is the lone sector currently trading in negative territory.

WTI crude futures settled lower by $1.26 (-3.2%) to $38.24/bbl. On a related note, OPEC+ members agreed to extend the 9.7 mbpd production output cut through the end of July.

[ReturntoSender]

Mega-caps power Nasdaq to new record high after FOMC statement
10-Jun-20 16:20 ET
Dow -282.31 at 26989.99, Nasdaq +66.59 at 10020.37, S&P -17.04 at 3190.01

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

[BRIEFING.COM] The S&P 500 declined 0.5% on Wednesday in a volatile session following the June FOMC statement, while the Nasdaq Composite rose 0.7% to close at another record high. The Dow Jones Industrial Average (-1.0%) and Russell 2000 (-2.6%) continued to pull back from recent gains.

The Fed kept the target range for the fed funds rate unchanged at 0.00-0.25%, and its dot plot signaled rates will remain near zero through at least 2022. The Fed's economic projections called for a 6.5% contraction in 2020 GDP, followed by 5.0% growth in 2021. Core PCE inflation is expected to remain below the Fed's 2.0% target through 2020.

After the release of the policy directive, the S&P 500 erased prior losses and gained as much as 0.5%, but stocks quickly retraced those gains during Fed Chair Powell's press conference. Mr. Powell didn't say anything particularly new, reiterating the Fed's commitment to supporting the economy, but he did subtly urge Congress to do more.

Neither the statement nor the press conference altered today's trading theme, though. Like yesterday, continued strength in the mega-cap stocks provided major support at the index level. Within the S&P 500 sectors, the information technology sector was in a league of its own, rising 1.7% while no other sector finished higher.

The energy (-4.9%) and financials (-3.8%) sectors were hit relatively hard, with the financials space pressured by the Fed's acknowledgement of low rates for a while longer.

Notably, shares of Apple (AAPL 352.84, +8.85, +2.6%), Microsoft (MSFT 196.84, +7.04, +3.7%), Amazon (AMZN 2647.45, +46.59, +1.8%), Tesla (TSLA 1025.05, +84.38, +9.0%), and NVIDIA (NVDA 374.67, +12.83, +3.6%) rallied to new all-time highs. Several brokerage firms raised their price targets on AAPL, AMZN, and TSLA.

Separately, Starbucks (SBUX 79.01, -3.36, -4.1%) said it expects quarterly sales to decline as much as $3.2 billion and operating income to decline as much as $2.2 billion due to the coronavirus. SBUX shares fell 4%.

In the Treasury market, longer-dated maturities saw greater demand following the FOMC statement. The 2-yr yield declined three basis points to 0.17%, and the 10-yr yield declined eight basis points to 0.75%. The U.S. Dollar Index declined 0.3% to 96.02. WTI crude gained 1.6%, or $0.62, to $39.54/bbl.

Reviewing Wednesday's economic data, which included the Consumer Price Index for May:

The Consumer Price Index for May declined 0.1% m/m (Briefing.com consensus 0.0%) following a 0.8% decline in April. Core CPI, which excludes food and energy, also declined 0.1% (Briefing.com consensus 0.0%). That was the third straight monthly decline in core CPI, which is something that has never happened before.
The key takeaway from the report is that it shows a trend of disinflation that will keep the Fed favoring easy monetary policy and asset purchases for some time.
The weekly MBA Mortgage Applications Index rose 9.3% following a 3.9% decline in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report and the Producer Price Index for May on Thursday.

Nasdaq Composite +11.7% YTD
S&P 500 -1.3% YTD
Dow Jones Industrial Average -5.4% YTD
Russell 2000 -12.1% YTD

Market Snapshot
Dow 26989.99 -282.31 (-1.04%)
Nasdaq 10020.37 +66.59 (0.67%)
SP 500 3190.01 -17.04 (-0.53%)
10-yr Note +32/32 0.726
NYSE Adv 790 Dec 2103 Vol 1.2 bln
Nasdaq Adv 1211 Dec 2141 Vol 5.1 bln

Industry Watch
Strong: Information Technology
Weak: Energy, Financials, Industrials, Real Estate

Moving the Market

-- Mega-caps power Nasdaq to another record close, while the rest of the market continued to struggle

-- Fed kept fed funds rate unchanged and signaled rates will stay near zero at least through 2022, Fed Chair Powell subtly urges Congress to do more

-- Relative weakness in the cyclical sectors

WTI crude settles higher, extends gains
10-Jun-20 15:25 ET
Dow -189.17 at 27083.13, Nasdaq +97.71 at 10051.49, S&P -5.55 at 3201.50

[BRIEFING.COM] The S&P 500 is trading lower by 0.2%, while the Russell 2000 continues to underperform with a 2.2% decline.

One last look at the S&P 500 sectors shows the information technology sector (+2.0%) way in the lead with a 2% gain, while the energy (-3.8%), financials (-3.2%), and industrials (-1.9%) sectors flounder in negative territory.

WTI crude futures settled today's session higher by $0.62 (+1.6%) to $39.54/bbl.

[ReturntoSender]

Stocks close higher, trim weekly losses
12-Jun-20 16:15 ET
Dow +477.37 at 25605.56, Nasdaq +96.08 at 9588.83, S&P +39.21 at 3041.18

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

[BRIEFING.COM] The S&P 500 gained 1.3% on Friday to reclaim some of yesterday's sharp decline, although it was up as much as 2.9% early in the session. The Dow Jones Industrial Average (+1.9%), Nasdaq Composite (+1.0%), and Russell 2000 (+2.3%) also bounced back but closed off session highs.

While yesterday's decline was orderly in nature, today's session was characterized by an inclination to sell into strength. Every time the market attempted to rebound, sellers would regain control and take the market back down. At one point in the afternoon, the S&P 500 was down 0.6% before buyers gradually returned to buy the dip.

The S&P 500 sectors were able to finish mostly higher, with cyclical sectors assuming the leadership. The financials (+3.0%), energy (+2.7%), and industrials (+2.0%) sectors rose at least 2.0%, but it was the real estate sector (+3.2%) that advanced the most. The utilities (-0.2%) and consumer staples (-0.2%) sectors closed lower.

Adobe (ADBE 406.54, +18.87, +4.9%) was an individual standout following its earnings report, while lululemon athletica (LULU 296.36, -11.76, -3.8%) failed to generate much excitement with its results. Tesla (TSLA 935.28, -37.56, -3.9%) was pressured by Goldman Sachs downgrading the stock to Neutral from Buy.

Interestingly, shares of bankrupt Hertz (HTZ 2.83, +0.77, +37.4%) were reawakened today with a 37% gain. The company reportedly asked a bankruptcy judge if it could sell $1 billion worth of common stock to capitalize on the trading frenzy that has buoyed its stock.

U.S. Treasuries finished on a lower note, pushing yields higher across the curve. The 2-yr yield increased two basis points to 0.18%, and the 10-yr yield increased five basis points to 0.70%. The U.S. Dollar Index increased 0.4% to 97.11. WTI crude declined 0.5%, or $0.17, to $36.24/bbl.

Reviewing Friday's economic data:

The preliminary University of Michigan Index of Consumer Sentiment for June showed an improvement to 78.9 (Briefing.com consensus 75.8) from the final reading of 72.3 for May.
The key takeaway from the report is that the uptick was driven by renewed gains in employment and an expectation for a decline in the unemployment rate; however, most consumers were not anticipating the reestablishment of favorable financial conditions anytime soon.
Import prices increased 1.0% in May, and prices, excluding oil, increased 0.1%. Export prices increased 0.5% in May, and prices, excluding agriculture, increased 0.6%.

Looking ahead, investors will receive the Empire State Manufacturing Survey for June and Net Long-Term TIC Flows for April on Monday.

Nasdaq Composite +6.9% YTD
S&P 500 -5.9% YTD
Dow Jones Industrial Average -10.3% YTD
Russell 2000 -16.8% YTD

Market Snapshot
Dow 25605.56 +477.37 (1.90%)
Nasdaq 9588.83 +96.08 (1.01%)
SP 500 3041.18 +39.21 (1.31%)
10-yr Note -3/32 0.710
NYSE Adv 2289 Dec 635 Vol 1.2 bln
Nasdaq Adv 2485 Dec 832 Vol 4.3 bln

Industry Watch
Strong: Energy, Industrials, Financials, Real Estate
Weak: Consumer Staples, Utilities

Moving the Market

-- Stocks reclaim some losses from Thursday in volatile session

-- There was an inclination to sell into strength

-- Cyclical sectors outperformed

WTI crude settles lower, extends weekly decline
12-Jun-20 15:25 ET
Dow +253.25 at 25381.44, Nasdaq +18.26 at 9511.01, S&P +15.53 at 3017.50

[BRIEFING.COM] The S&P 500 continues to trade higher by 0.5% and is on pace to close the week lower by 5.6%.

One last look at the S&P 500 sectors shows real estate (+2.3%), financials (+1.6%), and energy (+1.2%) outperforming, while the utilities (-0.5%), consumer staples (-0.4%), and consumer discretionary (-0.2%) sectors trade lower.

WTI crude futures declined 0.5% (-$0.17) to $36.24/bbl. The futures contract ended the week down 8.3%.

[ReturntoSender]

Stocks rebound with a little help from the Fed
15-Jun-20 16:20 ET
Dow +157.62 at 25763.18, Nasdaq +137.21 at 9726.04, S&P +25.28 at 3066.46

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

[BRIEFING.COM] The S&P 500 gained 0.8% on Monday to overcome an early 2.5% decline, as the market brushed aside coronavirus concerns and welcomed another aggressive policy update from the Fed. The Dow Jones Industrial Average swung nearly 1000 points from its bottom to close 0.6% higher. The Nasdaq Composite (+1.4%) and Russell 2000 (+2.3%) outperformed.

The early weakness was attributed to reports about increasing rates of coronavirus cases and hospitalizations in several U.S. states and even an outbreak at a food market in Beijing. Underwhelming industrial production and retail sales data for May out of China also weighed on recovery sentiment.

All 11 S&P 500 sectors traded sharply lower, but buyers gradually returned to buy the dip, which contributed to a steady rebound off early lows. Then, at 2:00 p.m. ET, the rebounding market received a noticeable pop into positive territory after the Fed announced it will start buying individual corporate bonds through its Secondary Market Corporate Credit Facility.

The move was unexpected, but it reminded the market that the Fed can, and will, expand its policy tools to support the market at any time during this recovery. All 11 S&P 500 sectors ended the session in positive territory.

The financials sector (+1.4%) outperformed, even as banks noted a steady pace of net credit losses in May, followed by the consumer staples sector (+1.1%). The health care (+0.2%) and energy (+0.1%) sectors eked out small gains.

Stay-at-home stocks continued to outperform the broader market amid the threat of a second wave of coronavirus infections. Shopify (SHOP 805.47, +62.89, +8.5%) was a notable standout after announcing a new partnership with Walmart (WMT 118.08, +0.34, +0.3%).

U.S. Treasuries exhibited an early flight-to-safety trade, which then unraveled with the rebound in equities. The 2-yr yield and the 10-yr yield ended the session unchanged at 0.18% and 0.70%, respectively. The U.S. Dollar Index declined 0.6% to 96.71. WTI crude futures rose 1.9%, or $0.68, to $36.94/bbl.

Monday's economic data was limited to the Empire State Manufacturing Survey for June, which improved to -0.2 (Briefing.com consensus -25.0) from -48.5 in May.

Looking ahead to Tuesday, investors will receive Retail Sales for May, Capacity Utilization and Industrial Production for May, Business Inventories for May, and the NAHB Housing Market Index for June. In addition, Fed Chair Powell will provide his semiannual monetary policy testimony.

Nasdaq Composite +8.4% YTD
S&P 500 -5.1% YTD
Dow Jones Industrial Average -9.7% YTD
Russell 2000 -14.9% YTD

Market Snapshot
Dow 25763.18 +157.62 (0.62%)
Nasdaq 9726.04 +137.21 (1.43%)
SP 500 3066.46 +25.28 (0.83%)
10-yr Note -1/32 0.711
NYSE Adv 1925 Dec 943 Vol 1.2 bln
Nasdaq Adv 2380 Dec 934 Vol 4.4 bln

Industry Watch
Strong: Financials, Consumer Staples, Communication Services, Real Estate
Weak: Health Care, Energy

Moving the Market

-- Market closes higher in buy-the-dip trade

-- Fed said it will start buying individual corporate bonds

-- Early weakness attributed to reports of increasing rates of coronavirus cases and hospitalizations in several states

WTI crude rises 2%
15-Jun-20 15:20 ET
Dow +131.57 at 25737.13, Nasdaq +125.50 at 9714.33, S&P +22.36 at 3063.54

[BRIEFING.COM] The S&P 500 is up 0.6%, while the Russell 2000 trades higher by 2.1%.

One last look at the S&P 500 sectors shows financials (+1.2%), real estate (+0.9%), and materials (+0.9%) leading in gains, while the health care sector (-0.1%) dips just below its flat line.

WTI crude futures settled the session up $0.68 (+1.9%) to $36.94/bbl.

[ReturntoSender]

Stock rally aided by positive by media reports, retail sales data
16-Jun-20 16:15 ET
Dow +526.82 at 26290.00, Nasdaq +169.84 at 9895.88, S&P +58.15 at 3124.61

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

[BRIEFING.COM] The S&P 500 gained 1.9% on Tuesday, paced higher by all 11 of its sectors amid positive-sounding media reports and encouraging retail sales data. The Dow Jones Industrial Average (+2.0%) and Nasdaq Composite (+1.8%) performed comparably to the benchmark index, while the Russell 2000 (+2.3%) outperformed.

The session started in risk-on mode after retail sales rebounded 17.7% m/m in May (Briefing.com consensus 9.0%), Bloomberg reported that President Trump was preparing a $1 trillion infrastructure proposal, and the BBC reported on a COVID-19 steroidal treatment in the UK that reduced deaths in severely ill patients.

All 11 S&P 500 sectors were up big. The benchmark index, however, went from being up as much as 2.8% intraday (and up 6.3% from Monday's intraday low) to being up just 0.3% during Fed Chair Powell's semiannual monetary policy testimony before the Senate Banking Committee.

Mr. Powell told lawmakers he thinks there will be long road to a recovery, but the Fed will continue to be proactive in supporting financial markets, adding that the central bank would think about capping yields if rates go up too much on certain parts of the curve. The S&P 500 financials sector (+1.4%) turned negative shortly after this acknowledgement.

The broader market was weaker, though, as recovery hopes were further pressured by news that Texas reported a new high for COVID-19 hospitalizations and that Beijing raised its COVID emergency response level and closed its schools. Investors bought the dip (again), sending the S&P 500 back above the 3100 level on a closing basis.

Five sectors increased by at least 2.0%, including the energy (+2.8%) and health care (+2.4%) sectors at the top. The utilities sector (+0.5%) lagged. In the health care space, Eli Lilly (LLY 163.71, +22.19, +15.7%) shares surged 15.7% after the company announced its breast cancer therapy met its primary endpoint and its insulin drug received FDA approval.

U.S. Treasuries ended the session with losses that caused some curve-steepening activity. The 2-yr yield increased two basis points to 0.21%, and the 10-yr yield increased five basis points to 0.76%. The U.S. Dollar Index increased 0.4% to 97.05. WTI crude rose 3.2%, or $1.20, to $38.56/bbl.

Reviewing Tuesday's economic data:

Retail sales for May in the U.S. surged 17.7% m/m (Briefing.com consensus 9.0%) following an upwardly revised 14.7% decline in April (from -16.4%). Excluding autos, retail sales jumped 12.4% m/m (Briefing.com consensus 5.2%) following an upwardly revised 15.2% decline for April (from -17.2%).
The key takeaway from the Retail Sales report is that it reflects pent-up demand that was unleashed as reopening efforts took root. Granted the April base was severely depressed and sales were still down 6.1% yr/yr, yet this market is thriving right now on hopeful sequential comparisons; hence, this was seen as very encouraging news.
Total industrial production increased 1.4% m/m in May (Briefing.com consensus 3.0%) on the heels of a downwardly revised 12.5% decline (from -11.2%) in April. The capacity utilization rate was 64.8% (Briefing.com consensus 67.9%) versus a downwardly revised 64.0% (from 64.9%) in April.
The key takeaway from the report is that the improvement was all manufacturing-based thanks largely to an uptick in the output of motor vehicles and parts.
The NAHB Housing Market Index for June increased to 58 (Briefing.com consensus 45) from 37 in May.
Business Inventories declined 1.3% in April (Briefing.com consensus -0.4%) following a revised 0.3% decline in March (from -0.2%).

Looking ahead, investors will receive Housing Starts and Building Permits for May and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +10.3% YTD
S&P 500 -3.3% YTD
Dow Jones Industrial Average -7.9% YTD
Russell 2000 -13.0% YTD

Market Snapshot
Dow 26290.00 +526.82 (2.04%)
Nasdaq 9895.88 +169.84 (1.75%)
SP 500 3124.61 +58.15 (1.90%)
10-yr Note -24/32 0.750
NYSE Adv 2361 Dec 522 Vol 1.3 bln
Nasdaq Adv 2496 Dec 819 Vol 4.6 bln

Industry Watch
Strong: Energy, Materials, Health Care, Information Technology, Consumer Discretionary
Weak: Utilities

Moving the Market

-- Stock rally aided by positive-sounding media reports, encouraging retail sales data

-- President Trump working on $1 trillion infrastructure proposal; news of steroidal treatment in the UK that reduced deaths in severely ill COVID-19 patients

-- Retail sales rebounded 17.7% m/m in May (Briefing.com consensus 9.0%)

-- Volatility following Fed Chair's Powell semiannual monetary policy testimony

WTI crude gains amid IEA rebound forecast
16-Jun-20 15:25 ET
Dow +464.44 at 26227.62, Nasdaq +145.56 at 9871.60, S&P +50.70 at 3117.16

[BRIEFING.COM] The S&P 500 is currently up 1.7%, although it was up as much as 2.8% early in the session.

One last look at the S&P 500 sectors still shows green across the board. The energy (+2.5%), health care (+2.2%), and materials (+2.2%) sectors are up at least 2.0%, while the utilities sector (+0.6%) underperforms.

WTI crude futures settled today's session up $1.20 (+3.2%) to $38.56/bbl. On a related note, the IEA forecast a record rebound in oil demand in 2021.

[ReturntoSender]

Stock Market Update
Major indices, except Nasdaq, close lower
17-Jun-20 16:20 ET
Dow -170.37 at 26119.63, Nasdaq +14.66 at 9910.54, S&P -11.25 at 3113.36

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

[BRIEFING.COM] The S&P 500 declined 0.4% on Wednesday, falling for the first time in four sessions amid lingering angst about a U.S. recovery and equity valuations. The Dow Jones Industrial Average lost 0.7%, and the Russell 2000 lost 1.8%. The Nasdaq Composite, however, increased 0.2%.

It was a relatively benign decline for the benchmark index considering that eight of the 11 S&P 500 sectors finished in negative territory. The energy (-3.3%) and financials (-1.4%) sectors declined noticeably, while the communication services (+0.1%), consumer discretionary (+0.1%), and information technology (+0.03%) sectors barely finished higher.

The market's recovery optimism was kept in check after several states (and Beijing) continued to report an uptick in COVID-19 cases, Oracle (ORCL 51.52, -3.07, -5.6%) disclosed that customers within some of its hardest hit verticals postponed some orders, and Norwegian Cruise Line (NCLH 19.20, -1.76, -8.4%) extended its suspension of cruise voyages through Sept. 30.

The S&P 500 was trading higher in the afternoon despite any growth concerns but notably slipped to session lows (-0.5%) shortly after Jeremy Grantham, a closely-followed market pundit, told CNBC that the goal number for equity exposure in the U.S. is zero due to the market's bubble-like characteristics.

It's one man's view, but one that some investors wouldn't disagree with given the grim economic environment. Domestically-oriented small-caps underperformed amid the recovery angst, but losses were mitigated by a recognition that the Fed will continue to aggressively support financial conditions. Investors siding with Mr. Grantham will likely have to bet against the Fed.

On a related note, Fed Chair Powell concluded his semiannual monetary policy testimony on Wednesday. Mr. Powell reminded lawmakers of their spending powers, reiterating that Congress should do more to support the economy. Market reaction was muted.

U.S. Treasuries ended the session slightly higher after trading in a narrow range. The 2-yr yield declined two basis points to 0.19%, and the 10-yr yield declined two basis points to 0.73%. The U.S. Dollar Index increased 0.2% to 97.13. WTI crude declined 0.9% to $37.93/bbl amid an unexpected increase in weekly crude inventories.

Reviewing Wednesday's economic data:

Total housing starts increased 4.3% m/m in May to a seasonally adjusted annual rate of 974,000 units. That was well below the Briefing.com consensus estimate of 1.170 million and down 23.2% yr/yr. Total building permits increased 14.4% m/m to a seasonally adjusted annual rate of 1.220 million, which was just shy of the Briefing.com consensus estimate of 1.260 million.
The key takeaway from the report is that permits, which are a leading indicator, increased a solid 11.9% m/m for single-unit dwellings. Single-unit permits increased in all regions, too.
The weekly MBA Mortgage Applications Index rose 8.0% following a 9.3% spike in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report and the Philadelphia Fed Index for June on Thursday.

Nasdaq Composite +10.5% YTD
S&P 500 -3.6% YTD
Dow Jones Industrial Average -8.5% YTD
Russell 2000 -14.5% YTD

Market Snapshot
Dow 26119.63 -170.37 (-0.65%)
Nasdaq 9910.54 +14.66 (0.15%)
SP 500 3113.36 -11.25 (-0.36%)
10-yr Note +25/32 0.725
NYSE Adv 966 Dec 1945 Vol 1.0 bln
Nasdaq Adv 1252 Dec 2084 Vol 4.2 bln

Industry Watch
Strong: Consumer Discretionary, Information Technology, Communication Services
Weak: Energy, Financials, Real Estate

Moving the Market

-- Major indices, except Nasdaq, close lower

-- Lingering angst pertaining to a recovery and valuations

-- Relative weakness in small-caps and the energy and financials sectors

-- Aggressive policy support from the Fed remained a positive consideration; Fed Chair Powell reminded Congress of their spending powers

WTI crude settles lower
17-Jun-20 15:30 ET
Dow -142.87 at 26147.13, Nasdaq +16.37 at 9912.25, S&P -10.50 at 3114.11

[BRIEFING.COM] The S&P 500 is down 0.3%, returning into negative territory for the first time since this morning.

One last look at the S&P 500 sectors shows the energy sector (-2.7%) down noticeably, followed by the financials (-1.1%) and real estate (-0.9%) sectors. The consumer discretionary (+0.1%), information technology (+0.1%), and communication services (unch) sectors trade near their flat lines.

WTI crude futures settled today's session lower by $0.33 (-0.9%) to $37.93/bbl. On a relate note, weekly crude inventories showed an unexpected build, according to data from the EIA.

[ReturntoSender]

S&P 500 trims weekly gain, but not Nasdaq
19-Jun-20 16:15 ET
Dow -208.64 at 25871.48, Nasdaq +3.07 at 9946.13, S&P -17.60 at 3097.61

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

[BRIEFING.COM] The S&P 500 declined 0.6% on this quadruple-witching expiration Friday, as renewed concerns about a recovery and the coronavirus tempered the market's early enthusiasm. The Dow Jones Industrial Average lost 0.8%, and the Russell 2000 lost 0.6%. The Nasdaq Composite (+0.03%), however, eked out an incremental gain.

Today's price action was relatively volatile. The S&P 500 gained as much as 1.3% shortly after the open but then declined as much as 1.0% into negative territory by the afternoon. The following coronavirus-related developments were attributed to the intraday decline:

Apple (AAPL 349.72, -2.01, -0.6%) will reportedly re-close some stores in four states due to COVID risks. Arizona, Florida, and California reported noticeable increases in daily coronavirus cases. Boston Fed President Rosengren said a second-half economic rebound will likely be slower than initially hoped due to the continued spread of the coronavirus.

The market closed off its lows, but most sectors still finished lower, including the S&P 500 utilities (-3.1%) and energy (-1.7%) sectors at the bottom of the standings. The health care sector (+0.9%) was the lone sector in the green amid gains in its biotech components. The iShares NASDAQ Biotechnology ETF (IBB 137.85, +4.36) rose 3.3%.

CarMax (KMX 91.78, -6.13, -6.3%) was among the weakest performers in the S&P 500 after the company provided mixed earnings results. Shares initially traded higher after the company said sales have progressively improved since hitting a trough in early April.

U.S. Treasuries ended the session near their flat lines after trading lower in early action. The 2-yr yield and the 10-yield remained unchanged at 0.19% and 0.70%, respectively. The U.S. Dollar Index increased 0.3% to 97.67. WTI crude rose 2.5% (+$0.95) to $39.74/bbl.

Friday's economic data was limited to the Current Account Balance for the first quarter, which narrowed to $104.2 billion (Briefing.com consensus -$99.8 billion) from $109.8 billion in the fourth quarter of 2019. Looking ahead, investors will receive the Existing Home Sales report for May on Monday.

Nasdaq Composite +10.9% YTD
S&P 500 -4.1% YTD
Dow Jones Industrial Average -9.4% YTD
Russell 2000 -15.0% YTD

Market Snapshot
Dow 25871.48 -208.64 (-0.80%)
Nasdaq 9946.13 +3.07 (0.03%)
SP 500 3097.61 -17.60 (-0.56%)
10-yr Note +1/32 0.695
NYSE Adv 990 Dec 1868 Vol 3.5 bln
Nasdaq Adv 1548 Dec 1792 Vol 6.0 bln

Industry Watch
Strong: Health Care
Weak: Utilities, Industrials, Real Estate, Energy

Moving the Market

-- Market tamed by coronavirus/recovery concerns

-- Arizona, Florida, and California report noticeable increases in COVID-19 cases

-- Apple (AAPL) reportedly planning to temporarily re-close some stores again due to COVID risks

-- Boston Fed President Rosengren offers cautious outlook on economy

WTI crude rises toward $40 per barrel
19-Jun-20 15:25 ET
Dow -40.19 at 26039.93, Nasdaq +17.72 at 9960.78, S&P -1.75 at 3113.46

[BRIEFING.COM] The S&P 500 has battled back to its flat line, as investors buy the intraday dip.

One last look at the S&P 500 sectors before the close shows health care (+1.0%), materials (+0.3%), and consumer discretionary (+0.2%) trading higher, while the industrials (-0.6%), utilities (-0.6%), and financials (-0.5%) sectors lag.

WTI crude settled today's session higher by $0.95 (+2.5%) to $39.74/bbl.

[ReturntoSender]

Mega-cap tech powers Nasdaq to another record close
22-Jun-20 16:20 ET
Dow +153.50 at 26024.98, Nasdaq +110.35 at 10056.48, S&P +20.12 at 3117.73

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

[BRIEFING.COM] The S&P 500 gained 0.7% on Monday, but it was the Nasdaq Composite (+1.1%) that continued to steal the spotlight. The tech-sensitive index closed at another record high and rose for the seventh straight day amid strength in the mega-cap technology stocks. The Dow Jones Industrial Average increased 0.6%, and the Russell 2000 increased 1.1%.

Notably, Apple (AAPL 358.87, +9.15, +2.6%) and Microsoft (MSFT 200.57, +5.42, +2.8%) gained more than 2.5%, hit fresh all-time highs, and boosted the top-weighted S&P 500 information technology sector (+1.9%) to the top spot today. The utilities sector (+1.3%) followed suit, while the health care (-0.4%) and financials (-0.5%) sectors lagged.

Apple received a lot of attention today due to its annual Worldwide Developers Conference, although most of the stock's gains came prior to the widely-watched event. On a related note, Cowen raised its price target on AAPL to $400 from $335 before the open. Microsoft and other tech giants rose on no specific news catalysts.

As for the coronavirus situation, the U.S. exceeded 30,000 new cases on Saturday for its highest daily level since May, but some of the hotspots in the country did report a lower count on Sunday. Vice President Pence also called attention to the increasing rate of infections among younger people, according to ABC News.

In other developments, Nike (NKE 99.51, +3.73, +3.9%) received a price target increase to $112 from $96 at Piper Sandler, American Airlines (AAL 14.92, -1.08, -6.8%) announced plans to raise $3.5 billion in capital through stock and bond sales, and Virgin Galactic (SPCE 17.39, +2.39, +15.9%) partnered with NASA for a private orbital astronaut readiness program.

U.S. Treasuries finished little changed after starting the session with small gains. The 2-yr yield was unchanged at 0.19%, and the 10-yr yield increased one basis point to 0.71%. The U.S. Dollar Index declined 0.6% to 97.09. WTI crude futures rose 2.2%, or $0.86, to $40.60/bbl.

Monday's economic data was limited to the Existing Home Sales report for May:

Existing home sales declined 9.7% m/m in May to a seasonally adjusted annual rate of 3.91 million (Briefing.com consensus 3.98 million). May marked the third straight month of a decline in sales.
The key takeaway from the report is that closed sales in May reflect most contract signings completed in March and April, which is when the brunt of the COVID-19 shutdown effects were felt. Accordingly, the disappointment over weak sales in May should be mitigated by a belief that coming months will feature stronger sales activity.

Looking ahead, investors will receive the New Home Sales report for May on Tuesday.

Nasdaq Composite +1.1% YTD
S&P 500 -3.5% YTD
Dow Jones Industrial Average -8.8% YTD
Russell 2000 -14.1% YTD

Market Snapshot
Dow 26024.98 +153.50 (0.59%)
Nasdaq 10056.48 +110.35 (1.11%)
SP 500 3117.73 +20.12 (0.65%)
10-yr Note -1/32 0.705
NYSE Adv 1532 Dec 1372 Vol 1.1 bln
Nasdaq Adv 1847 Dec 1482 Vol 4.4 bln

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

Moving the Market

-- Mega-cap technology stocks boost Nasdaq to new record close

-- Apple's (AAPL) Worldwide Developers Conference received plenty of attention

-- Market remained level-headed about the coronavirus situation

WTI crude futures close above $40/bbl
22-Jun-20 15:25 ET
Dow +85.01 at 25956.49, Nasdaq +76.24 at 10022.37, S&P +12.11 at 3109.72

[BRIEFING.COM] The S&P 500 has come down slightly from session highs with a current 0.4% gain. Vice President Pence warned that young people are catching COVID-19 at an increasing rate, according to ABC News, although it's unclear if that caused the recent slippage since this occurrence was already in the news.

One last look at the S&P 500 sectors shows information technology (+1.5%) and utilities (+1.0%) up the most, while the real estate (-0.6%), financials (-0.6%), and consumer staples (-0.5%) sectors weigh on the benchmark index.

WTI crude futures settled today's session higher by $0.86 (+2.2%) to $40.60/bbl.

[ReturntoSender]

Nasdaq rises for eighth straight day
23-Jun-20 16:20 ET
Dow +131.14 at 26156.12, Nasdaq +74.89 at 10131.37, S&P +13.43 at 3131.16

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

[BRIEFING.COM] The S&P 500 gained 0.4% on Tuesday amid more indications of an economic recovery, while the Nasdaq Composite (+0.7%) pulled ahead to close at another record high for its eighth straight advance. The Dow Jones Industrial Average (+0.5%) and Russell 2000 (+0.4%) also posted modest gains, but the market did close near session lows.

All 11 S&P 500 sectors started the session sharply higher after President Trump clarified that the U.S.-China trade deal was still intact and June flash Manufacturing PMIs out of Europe improved more than expected. There was brief weakness in the overnight futures market after trade advisor Navarro said the trade deal with China was over, which he later said was taken out of context.

Shortly after the open, data showed new home sales in the U.S. rebound 16.6% m/m in May to a seasonally adjusted annual rate of 676,000 (Briefing.com consensus 635,000), which supported the market's expectations for an economic recovery. There was a lack of follow-through buying interest, though, as the market traded sideways for most of the day.

Within the S&P 500, the consumer discretionary (+1.0%), information technology (+0.7%), and communication services (+0.6%) sectors advanced the most amid noticeable, and persistent, gains in its mega-cap components, including Apple (AAPL 366.53, +7.66, +2.1%) and Amazon (AMZN 2764.41, +50.50, +1.9%).

Conversely, the utilities (-1.1%) and real estate (-0.4%) sectors closed lower after slipping into negative territory in early action, while the consumer staples (-0.1%) and industrials (unch) sectors squandered gains amid some late selling in the broader market.

There was no confirmed catalyst for the minor slippage, but it appeared to be rooted in part to a lack of conviction from buyers given the narrow leadership in the mega-caps. Others pointed to Treasury Secretary Mnuchin warning that decoupling from China is possible if their trading relationship remains uneven.

Elsewhere, U.S. Treasuries finished near their flat lines in another lackluster session in the bond market, while gold futures rose 0.9% to $1782.00/ozt. The 2-yr yield was unchanged at 0.19%, and the 10-yr yield increased one basis point to 0.71%. The U.S. Dollar Index declined 0.3% to 96.72. WTI crude declined 0.5% to $40.38/bbl.

Reviewing Tuesday's economic data:

New home sales increased sharply in May, rising 16.6% m/m to a seasonally adjusted annual rate of 676,000 (Briefing.com consensus 635,000). The increase came on the heels of a sharp downward revision for April to 580,000 from 623,000.
The key takeaway from the report is that sales activity bounced back smartly in May, reflecting a welcome pickup in contract signings as COVID-19 shutdown pressures lessened. This understanding should foster expectations that sales activity will continue to improve in coming months given the tight supply of existing homes for sale, low mortgage rates, and pent-up demand.

Looking ahead, investors will receive the FHFA Housing Price Index for June and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +12.9% YTD
S&P 500 -3.1% YTD
Dow Jones Industrial Average -8.4% YTD
Russell 2000 -13.7% YTD

Market Snapshot
Dow 26156.12 +131.14 (0.50%)
Nasdaq 10131.37 +74.89 (0.74%)
SP 500 3131.16 +13.43 (0.43%)
10-yr Note -2/32 0.721
NYSE Adv 1677 Dec 1232 Vol 1.0 bln
Nasdaq Adv 1807 Dec 1516 Vol 5.6 bln

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

Moving the Market

-- Stock market closes higher but near session lows; Nasdaq sets new record high

-- President Trump reaffirms that U.S.-China trade deal is still intact, clarifying a previous comment from trade advisor Navarro

-- June flash manufacturing PMIs out of Europe and new home sales for May in the U.S. rebound more than expected

WTI crude gives up intraday gain, closes lower
23-Jun-20 15:25 ET
Dow +185.82 at 26210.80, Nasdaq +90.84 at 10147.32, S&P +20.51 at 3138.24

[BRIEFING.COM] The S&P 500 is up 0.7%, while the Nasdaq trades higher by 1.0% as it vies for its eight straight day of gains.

One last look at the S&P 500 sectors shows consumer discretionary (+1.4%), information technology (+1.1%), and communication services (+1.0%) trading higher by at least 1.0%. The utilities (-1.1%) and real estate (-0.1%) sectors still trade lower.

WTI crude futures settled today's session lower by $0.22 (-0.5%) to $40.38/bbl, giving up an intraday gain.

[ReturntoSender]

Stock market retreats on renewed coronavirus fears
24-Jun-20 16:15 ET
Dow -710.16 at 25445.96, Nasdaq -222.20 at 9909.17, S&P -80.96 at 3050.20

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

[BRIEFING.COM] The major indices fell more than 2% on Wednesday amid renewed concerns about the coronavirus and its potential impact on reopening activity. The S&P 500 lost 2.6%, the Dow Jones Industrial Average lost 2.7%, the Nasdaq Composite lost 2.2%, and the Russell 2000 lost 3.5%.

All 11 S&P 500 sectors closed lower, and all 30 Dow components closed lower. The energy (-5.5%), industrials (-3.5%), and financials (-3.5%) sectors were hit the hardest, while the utilities sector (-0.9%) was the lone sector that declined less than 1.0%.

Several states, including Texas and California, continued to report daily records in new coronavirus cases and hospitalizations, which forced governments, companies, and citizens to react in preemptive manners that the market feared would slow down the pace of a recovery.

Notably, the S&P 500 fell to session lows (-3.2%) shortly after New York Governor Cuomo announced that the tri-state area will be imposing a 14-day quarantine on travelers coming from coronavirus hotspots. The EU was also reported to be considering its own restrictions on U.S. travelers, banning them from entering when it relaxes its border restrictions on July 1.

It could be argued that the extent of today's decline was exacerbated by the market's overextended set-up. The Nasdaq was up for eight straight days, rising 6.7% to record highs in the process, while the S&P 500 was up in six of the prior eight sessions despite similar reports of the rising rate of coronavirus in several states.

While there were positive developments, such as rebounding economic data, during that stretch, there were few upbeat reports today.

Other negative-sounding news from today included the U.S. considering $3.1 billion in new export tariffs on European goods, the EU planning to proceed with its digital tax, Apple (AAPL 360.06, -6.47, -1.8%) planning to re-close seven stores in Houston, and Walt Disney (DIS 112.07, -4.52, -3.9%) employees reportedly petitioning the company to delay its Florida reopening.

U.S. Treasuries finished with modest gains amid the weakness in equities. The 2-yr yield declined one basis point to 0.18%, and the 10-yr yield declined two basis points to 0.69%. The U.S. Dollar Index rose 0.6% to 97.21. WTI crude fell 6.2%, or $2.50, to $37.88/bbl.

Reviewing Wednesday's economic data:

The FHFA Housing Price Index for April increased 0.2% following a 0.1% increase in March.
The weekly MBA Mortgage Applications Index fell 8.7% following an 8.0% spike in the prior week.

Looking ahead to Thursday, investors will receive the weekly Initial and Continuing Claims report, Durable Goods Orders for May, the third estimate for Q1 GDP, and the advance May reports for International Trade in Goods, Retail Inventories, and Wholesale Inventories.

Nasdaq Composite +10.4% YTD
S&P 500 -5.6% YTD
Dow Jones Industrial Average -10.8% YTD
Russell 2000 -16.7% YTD

Market Snapshot
Dow 25445.96 -710.16 (-2.72%)
Nasdaq 9909.17 -222.20 (-2.19%)
SP 500 3050.20 -80.96 (-2.59%)
10-yr Note +2/32 0.695
NYSE Adv 343 Dec 2558 Vol 1.1 bln
Nasdaq Adv 601 Dec 2753 Vol 5.5 bln

Industry Watch
Strong: Consumer Staples, Utilities
Weak: Financials, Energy, Industrials, Real Estate

Moving the Market

-- Stock market declines more than 2% amid renewed coronavirus/recovery concerns

-- Several states continued to report daily records in new coronavirus cases and hospitalizations

-- New York tri-state area to enforce a 14-day quarantine on travelers coming from coronavirus hotspots

WTI crude falls more than 6%
24-Jun-20 15:25 ET
Dow -597.06 at 25559.06, Nasdaq -193.86 at 9937.51, S&P -70.36 at 3060.80

[BRIEFING.COM] The S&P 500 is trading lower by 2.2%, which is better than the 3.2% decline from its session low.

One last look at the S&P 500 sectors shows the energy (-4.7%), real estate (-3.1%), financials (-2.9%), and industrials (-2.9%) sectors bearing the brunt of the damage, while the utilities sector is down just 0.7%.

WTI crude futures settled lower by $2.50 (-6.2%) to $37.88/bbl.

[ReturntoSender]

Market closes at session highs, led by financials
25-Jun-20 16:15 ET
Dow +299.66 at 25745.62, Nasdaq +107.84 at 10017.01, S&P +33.43 at 3083.63

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

[BRIEFING.COM] The S&P 500 gained 1.1% on Thursday, recouping some of yesterday's decline, amid solid leadership from the financials sector (+2.7%). The Dow Jones Industrial Average (+1.2%) and Nasdaq Composite (+1.1%) kept pace with the benchmark index, while the Russell 2000 (+1.7%) outperformed.

The session started on a lower note following news that the U.S. tallied a daily record for new coronavirus cases on Wednesday. The S&P 500 fell 0.9%, but it quickly bounced back into positive territory after nearly touching its 200-day moving average (3021) and was led higher by shares of financial companies after regulators eased restrictions on the Volcker Rule for banking institutions.

Financials stocks took the news in stride, as the modification allows banks to increase their investments in a broad set of venture capital funds, but the major indices proceeded to drift near their flat lines for a good portion of the day. The market, however, broke out late in the session and carried nearly every sector into positive territory, except the utilities sector (-1.2%).

There was no news item that contributed to the breakout, but it might have been fueled by some short covering activity from investors anticipating more weakness in the market due to the negative coronavirus headlines.

Notably, Texas and Florida announced a temporary pause of additional reopening phases, CDC officials told reporters that COVID-19 cases in the U.S. might be ten times higher than currently reported, and Walt Disney (DIS 111.36, -0.71, -0.6%) delayed its reopening date of Disneyland past July 17.

Weekly jobless claims also remained high, decreasing by just 60,000 to 1.480 million (Briefing.com consensus 1.250 million) for the week ending June 20. The good news was that continuing claims declined noticeably by 767,000 to 19.522 million.

In other corporate news, Boeing (BA 174.88, -1.81, -1.0%) was downgraded to Sell from Hold at Berenberg, and KB Home (KBH 29.38, -3.95, -11.9%) disappointed investors with its quarterly results.

U.S. Treasuries posted modest gains for the second straight session. The 2-yr yield declined two basis points to 0.16%, and the 10-yr yield declined one basis point to 0.67%. The U.S. Dollar Index increased 0.2% to 97.35. WTI crude increased 2.0%, or $0.75, to $38.75/bbl.

Reviewing Thursday's economic data:

Initial claims for the week ending June 20 decreased 60,000 to a still-high 1.480 million (Briefing.com consensus 1.250 million). Continuing claims for the week ending June 13 plunged by 767,000 to 19.522 million.
The key takeaway from the report is that, while it was nice to see the big drop in continuing claims, it remains alarming still to see such high levels of initial claims, particularly since the reacceleration in coronavirus case counts and a rethink of reopening efforts are going to trigger worries about another wave of layoffs.
Durable Goods Orders for May increased 15.8% (Briefing.com consensus 11.6%) on the heels of a downwardly revised 18.1% decline (from -17.7%) in April. Excluding transportation, orders rose 4.0% (Briefing.com consensus 2.1%) following a downwardly revised 8.2% decline (from -7.7%) in April.
The key takeaway from the report is that order activity clearly rebounded in May, yet new order levels year to date are 13.6% lower than the same period a year ago on a not seasonally adjusted basis.
The third estimate for Q1 GDP was unchanged at -5.0% (Briefing.com consensus -5.0%) while the GDP Price Deflator was unchanged at 1.4% (Briefing.com consensus 1.4%).
The key takeaway from this report is that it is insignificant for the market given its dated nature.Personal consumption expenditures growth was unchanged from the second estimate at -6.8%.
The advance goods trade deficit totaled $74.3 bln in May following a $70.7 bln deficit in April. Advance retail inventories declined 6.1% in May after decreasing 3.8% in April. Advance wholesale inventories decreased 1.2% in May after increasing 0.2% in April.

Looking ahead, investors will receive the Personal Income and Spending report for May and the revised University of Michigan Index of Consumer Sentiment for June on Friday.

Nasdaq Composite +11.6% YTD
S&P 500 -4.6% YTD
Dow Jones Industrial Average -9.8% YTD
Russell 2000 -15.3% YTD

Market Snapshot
Dow 25745.62 +299.66 (1.18%)
Nasdaq 10017.01 +107.84 (1.09%)
SP 500 3083.63 +33.43 (1.10%)
10-yr Note 0/32 0.683
NYSE Adv 1876 Dec 1037 Vol 966.8 mln
Nasdaq Adv 2252 Dec 1071 Vol 4.6 bln

Industry Watch
Strong: Financials, Energy, Information Technology, Materials
Weak: Utilities, Consumer Discretionary

Moving the Market

-- Stock market breaks out to session highs late in the day on no specific news item

-- Volcker rule relaxed, financial stocks rally

-- S&P 500 found support at 200-day moving average (3021)

-- Coronavirus concerns muted

WTI crude gains 2%
25-Jun-20 15:25 ET
Dow +235.45 at 25681.41, Nasdaq +71.54 at 9980.71, S&P +26.51 at 3076.71

[BRIEFING.COM] The S&P 500 is now up 0.9% to trade at session highs.

One last look at the S&P 500 sectors shows financials (+2.6%) firmly in the lead with a 2.6% gain, followed by the energy sector (+1.5%). The utilities (-1.3%) and consumer discretionary (unch) sectors underperform.

WTI crude futures settled today's session higher by $0.75 (+2.0%) to $38.75/bbl.

[ReturntoSender]

Market stung by multiple thorns
26-Jun-20 16:20 ET
Dow -730.05 at 25015.57, Nasdaq -259.78 at 9757.23, S&P -74.71 at 3008.92

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

[BRIEFING.COM] The S&P 500 dropped 2.4% on Friday in a risk-off session amid the continued rise in new coronavirus cases and industry-specific issues for the banks and social media companies. The Dow Jones Industrial Average (-2.8%), Nasdaq Composite (-2.6%), and Russell 2000 (-2.4%) also fell more than 2.0%.

All 11 S&P 500 sectors closed in negative territory, with the financials (-4.3%) and communication services (-4.5%) sectors falling more than 4%. The utilities sector declined the least with a 1.0% decline.

The U.S. hit another daily record for new coronavirus cases, prompting hotspots like Texas and Florida to scale back their reopening efforts. The reduced reopening activity threatens to undermine consumer sentiment and personal spending, the latter of which rebounded 8.2% m/m in May (Briefing.com consensus +7.0%).

Unfortunately, the market was also burdened by other developments. Banks were pressured by the Fed's decision to require them to suspend share repurchases and cap dividend payments in the third quarter (out of an abundance of caution), while more companies suspended ad spending on Facebook (FB 216.08, -19.60, -8.3%).

Verizon (VZ 53.16, -1.12, -2.1%), Unilever (UN 54.51, -0.32, -0.6%), and Honda Motor (HMC 25.33, -0.92, -3.5%) joined the growing list of companies that paused spending, which was a wake-up call for companies that derive revenue from advertising in how they handle misconduct within their platforms.

Facebook shares fell 8%, but Alphabet (GOOG 1359.90, -81.43, -5.7%) and Twitter (TWTR 29.05, -2.32, -7.4%) also took it on the chin.

In other developments, Nike (NKE 93.67, -7.73, -7.6%) missed top and bottom-line estimates, Cisco (CSCO 46.31, +1.09, +2.4%) was the lone Dow component to close higher amid news that the Trump administration is thinking about helping the company in 5G development, and the yearly rebalancing of the FTSE Russell indices happened at the close.

Quarter-end rebalancing might have played a part in today's decline, too, as investors re-allocated money into bonds. The 2-yr yield was unchanged at 0.16%, while the 10-yr yield declined four basis points to 0.64%. The U.S. Dollar Index was little changed at 97.45. WTI crude declined 0.7%, or $0.26, to $38.49/bbl.

Reviewing Friday's economic data:

Personal income declined 4.2% m/m in May (Briefing.com consensus -6.0%) following a 10.8% increase in April while personal spending surged 8.2% (Briefing.com consensus 7.0%) after declining 12.6% in April. The PCE Price Index and core-PCE Price Index, which excludes food and energy, were both up 0.1% and slightly ahead of consensus estimates.
The key takeaway from the report is that the personal savings rate, as a percentage of disposable income, remains exceptionally high at 23.2%. Granted that's down from 32.2% in April, but a high savings rate means less spending activity, which means less economic growth.
The final University of Michigan Index of Consumer Sentiment for June slipped to 78.1 (Briefing.com consensus 78.8) from the preliminary reading of 78.9. The final reading for May was 72.3, so the sentiment level is still higher than the prior month.
The key takeaway from the report is the contention that consumer attitudes and demand will be influenced by the progress -- or lack thereof -- against the coronavirus.

Looking ahead, investors will receive the Pending Home Sales report for May on Monday.

Nasdaq Composite +8.7% YTD
S&P 500 -6.9% YTD
Dow Jones Industrial Average -12.3% YTD
Russell 2000 -17.4% YTD

Market Snapshot
Dow 25015.57 -730.05 (-2.84%)
Nasdaq 9757.23 -259.78 (-2.59%)
SP 500 3008.92 -74.71 (-2.42%)
10-yr Note +4/32 0.649
NYSE Adv 559 Dec 2319 Vol 3.2 bln
Nasdaq Adv 732 Dec 2600 Vol 6.8 bln

Industry Watch
Strong: Utilities
Weak: Financials, Communication Services, Energy

Moving the Market

-- Market loses nearly 3%, stung by multiple thorns

-- U.S. tallies another daily record in new coronavirus cases, Texas and Florida scale back reopening efforts

-- Fed will require banks to suspend share repurchases and cap dividend payments in the third quarter to retain resiliency

-- More companies suspend ad spending on Facebook (FB)

WTI crude posts modest decline amid equity weakness
26-Jun-20 15:30 ET
Dow -741.62 at 25004.00, Nasdaq -230.29 at 9786.72, S&P -73.68 at 3009.95

[BRIEFING.COM] The S&P 500 is down 2.4% to trade at session lows.

One last look at the S&P 500 sectors shows red across the board with every sector down more than 1%. The financials (-4.5%) and communication services (-4.2%) are down more than 4%, while the real estate sector (-1.4%) is down the least with a 1.4% decline.

WTI crude futures settled lower by $0.26 (-0.7%) to $38.49/bbl.

[ReturntoSender]

Stocks rebound to start the week
29-Jun-20 16:20 ET
Dow +580.25 at 25595.82, Nasdaq +116.93 at 9874.16, S&P +44.19 at 3053.11

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

[BRIEFING.COM] The S&P 500 increased 1.5% on Monday in a broad-based advance to recoup some of last week's decline. The Dow Jones Industrial Average (+2.3%) and Russell 2000 (+3.1%) outperformed the benchmark index, while the Nasdaq Composite (+1.2%) underperformed.

All 11 S&P 500 sectors finished in positive territory, led by the industrials sector (+3.2%) amid leadership from Boeing (BA 194.49, +24.48, +14.4%), which resumed 737 MAX flights for certification. The health care sector (+0.9%) was the lone sector that rose less than 1.0%.

Value-oriented stocks edged out growth stocks today after data showed pending home sales rebound 44.3% m/m in May (Briefing.com consensus +18.0%), which extended a trend of data depicting a rebound in the economy. The market pushed toward session highs after its 10:00 a.m. ET release and proceeded to drift higher the rest of the session.

In other corporate news, more companies halted ad spending from Facebook (FB 220.64, +4.56, +2.1%) due to concerns about insufficient efforts to police misinformation and hateful content. FB shares still finished higher after being down as much as 4.2% early in the session.

Microsoft (MSFT 198.44, +2.11, 1.0%) and PepsiCo (PEP 131.08, +2.15, +1.7%) reportedly targeted only Facebook's platforms, while Starbucks (SBUX 73.48, +1.91, +2.7%) and Coca-Cola (KO 44.36, +0.79, +1.8%) paused all social media spending.

Given the positive bias in stocks, the coronavirus resurgence was less in focus today even as New Jersey and parts of California scaled back reopening efforts. The Treasury market appeared more in tune with the threat of reduced economic activity, as bonds held firm throughout the session.

The 2-yr yield was unchanged at 0.16%, and the 10-yr yield was unchanged at 0.64%. The U.S. Dollar Index increased 0.1% to 97.51. WTI crude rose 3.1%, or $1.18, to $39.67/bbl.

Looking ahead to Tuesday's economic calendar, investors will receive the Conference Board's Consumer Confidence Index for June, the Chicago PMI for June, and the S&P Case-Shiller Home Price Index for April.

Nasdaq Composite +10.1% YTD
S&P 500 -5.5% YTD
Dow Jones Industrial Average -10.3% YTD
Russell 2000 -14.8% YTD

Market Snapshot
Dow 25595.82 +580.25 (2.32%)
Nasdaq 9874.16 +116.93 (1.20%)
SP 500 3053.11 +44.19 (1.47%)
10-yr Note +1/32 0.633
NYSE Adv 2227 Dec 711 Vol 965.2 mln
Nasdaq Adv 2235 Dec 1147 Vol 4.3 bln

Industry Watch
Strong: Industrials, Communication Services, Materials
Weak: Health Care

Moving the Market

-- Stocks close at session highs, recoup some of last week's decline

-- Boeing (BA) shares rose 14% on news that it resumed 737 MAX flights for certification

-- Pending home sales rebound 44.3% m/m in May (Briefing.com consensus +18.0%)

WTI crude closes just below $40/bbl
29-Jun-20 15:30 ET
Dow +449.75 at 25465.32, Nasdaq +64.07 at 9821.30, S&P +29.32 at 3038.24

[BRIEFING.COM] The S&P 500 is up 1.0% to trade slightly below session highs (+1.4%).

One last look at the S&P 500 sectors shows industrials (+2.7%) up nearly 3% and firmly atop the standings while six other sectors are up at least 1.0%. The health care (+0.4%), financials (+0.5%), and information technology (+0.5%) sectors underperform.

WTI crude futures settled higher by $1.18 (+3.1%) to $39.67/bbl.

[ReturntoSender]

Market wraps up tremendous quarter on positive note
30-Jun-20 16:20 ET
Dow +217.08 at 25812.90, Nasdaq +184.61 at 10058.77, S&P +47.05 at 3100.16

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

[BRIEFING.COM] The S&P 500 gained 1.5% on Tuesday to close out a tremendous second quarter, while the Nasdaq Composite (+1.9%) pulled ahead amid strength in its mega-cap and semiconductor components. The Dow Jones Industrial Average increased 0.9%, and the Russell 2000 increased 1.4%.

The gains were broad, with all 11 S&P 500 sectors closing in positive territory. Eight sectors rose at least 1.0%, including a 2% gain in the energy sector (+2.2%), while the utilities sector (+0.4%) lagged. The most influential gains, though, were found in the mega-cap stocks, including Tesla (TSLA 1079.81, +70.46, +7.0%) and NVIDIA (NVDA 379.91, +11.91, +3.2%).

TSLA shares surged in anticipation of the company's Q2 delivery results this week, while NVDA shares rose alongside the broader semiconductor space after Micron (MU 51.52, +2.38, +4.8%) and Xilinx (XLNX 98.39, +6.43, +7.0%) provided upbeat guidance. Micron also topped quarterly expectations. The Philadelphia Semiconductor Index rose 2.7%.

On the downside, Boeing (BA 183.30, -11.19, -5.8%) was a noticeable drag on the Dow after Norwegian Air and BOC Aviation reportedly canceled plane orders from the company. Note, BA shares did climb 14% on Monday. Wells Fargo (WFC 25.60, -0.10, -0.4%), meanwhile, said it expects to reduce its Q3 dividend following its stress test results.

In M&A activity, Uber (UBER 31.08, +1.45, +4.9%) reportedly started discussions to acquire Postmates for $2.6 billion, while lululemon athletica (LULU 312.01, +17.66, +6.0%) agreed to acquire in-home fitness company MIRROR for $500 million.

Separately, Fed Chair Powell and Treasury Secretary Mnuchin testified before the House Financial Services Committee about the measures taken to support the economy. Market reaction was muted, as nothing new was particularly said.

U.S. Treasuries finished near their starting positions. The 2-yr yield declined one basis point to 0.15%, and the 10-yr yield increased two basis points to 0.65%. The U.S. Dollar Index decreased 0.2% to 97.38. WTI crude declined 1.0%, or $0.39, to $39.28/bbl.

Reviewing Tuesday's economic data:

The Conference Board's Consumer Confidence Index for June increased to 98.1 (Briefing.com consensus 92.0) from a downwardly revised 85.9 (from 86.6) for May.
The improvement is welcome, yet the key takeaway from the report is that the index remains well below the February reading of 132.6, which predated the COVID-19 shutdown effort.
The Chicago PMI for June increased to 36.6 (Briefing.com consensus 45.0) from 32.3 in May.
The S&P Case-Shiller Home Price Index increased 4.0% in April (Briefing.com consensus 4.1%) following a 3.9% increase in March.

Looking ahead to Wednesday, investors will receive the ISM Manufacturing Index for June, the ADP Employment Change report for June, the FOMC Minutes from the June meeting, Construction Spending for May, the weekly MBA Mortgage Applications Index, and auto and truck sales for June.

Nasdaq Composite +12.1% YTD
S&P 500 -4.0% YTD
Dow Jones Industrial Average -9.6% YTD
Russell 2000 -13.6% YTD

Market Snapshot
Dow 25812.90 +217.08 (0.85%)
Nasdaq 10058.77 +184.61 (1.87%)
SP 500 3100.16 +47.05 (1.54%)
10-yr Note -25/32 0.662
NYSE Adv 1898 Dec 1036 Vol 1.2 bln
Nasdaq Adv 2258 Dec 1105 Vol 4.4 bln

Industry Watch
Strong: Energy, Information Technology, Consumer Discretionary, Health Care
Weak: Utilities

Moving the Market

-- Stock market gains in broad-based advance to close out tremendous quarter

-- Mega-caps exert influential leadership while semiconductor stocks rally following some positive earnings-related news

-- Boeing (BA) drags on Dow after reportedly receiving plane order cancellations

WTI crude declines 1%
30-Jun-20 15:25 ET
Dow +76.75 at 25672.57, Nasdaq +148.52 at 10022.68, S&P +32.91 at 3086.02

[BRIEFING.COM] The S&P 500 is up 1.1% and is on track to end the quarter with a 19.4% gain.

One last look at the S&P 500 sectors shows all 11 groups trading higher. The information technology (+1.4%), consumer discretionary (+1.3%), and health care (+1.2%) sectors outperform, while the utilities (+0.1%) and consumer staples (+0.1%) sectors are up just 0.1%.

WTI crude futures settled lower by $0.39 (-1.0%) to $39.28/bbl.

[ReturntoSender]

Nasdaq closes at record high in mixed session
01-Jul-20 16:20 ET
Dow -77.91 at 25734.99, Nasdaq +95.86 at 10154.63, S&P +15.57 at 3115.73

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

[BRIEFING.COM] The S&P 500 (+0.5%) and Nasdaq Composite (+1.0%) finished with decent gains on Wednesday amid positive economic data and upbeat vaccine news. It was also record close for the Nasdaq, but it was a negative day for the Dow Jones Industrial Average (-0.3%) and Russell 2000 (-1.0%).

The S&P 500 real estate (+2.6%), utilities (+2.3%), and communication services (+2.2%) sectors rose more than 2.0%, while the energy (-2.5%), financials (-1.0%), and materials (-0.5%) sectors closed in negative territory.

Each sector had started the day higher after Stat News reported that Pfizer (PFE 33.74, +1.04, +3.2%) and BioNTech (BNTX 64.14, -2.60, -3.9%) made progress on their COVID-19 vaccine candidate, the ISM Manufacturing Index for June returned into expansionary mode with a 52.6% reading (Briefing.com consensus 49.2%), and the ADP Employment Change Report for June showed consecutive gains for private-sector payrolls.

Negative headwinds, however, included an observation that the S&P 500 was already up 3.0% over the prior two days, a report from Bloomberg that the U.S. is preparing global sanctions against China for its abuse of Muslim minorities, and news that Apple (AAPL 364.11, -0.69, -0.2%) will re-close an additional 30 stores tomorrow due to the coronavirus.

Regarding the latter, the market has adopted the idea that preemptive measures will induce short-term pain but will help curb the outbreak, and that any pain will be alleviated by policy support. The FOMC Minutes from the June 9-10 meeting highlighted concerns about a significant rise in coronavirus infections due to early reopening, and that highly accommodative monetary policy will likely be needed to facilitate a recovery.

Considering these developments, it was a mixed session with cyclical sectors underperforming and money continuing to flow into the mega-cap and momentum stocks like Amazon (AMZN 2878.70, +119.88, +4.4%). FedEx (FDX 156.66, +16.44, +11.7%) was another standout with a 12% gain following its earnings report.

U.S. Treasuries finished with modest losses, pushing yields higher across the curve. The 2-yr yield increased two basis points to 0.17%, and the 10-yr yield increased three basis points to 0.68%. The U.S. Dollar Index declined 0.3% to 97.15. WTI crude declined 1.2%, or $0.48, to $39.76/bbl.

Reviewing Wednesday's economic data:

The ISM Manufacturing Index for June rose to 52.6% (Briefing.com consensus 49.2%) from 43.1% in May. This was the first reading above 50.0% in four months and the largest month-over-month increase since August 1980. The dividing line between expansion and contraction is 50.0%.
The key takeaway from the report is that it reflects a clear bounce back from the super depressed conditions seen in April and May. It's a natural rebound so to speak as the economy reopens, but the key is its sustainability, which is still an open question.
Construction spending declined 2.1% m/m in May (Briefing.com consensus +1.1%) on the heels of a downwardly revised 3.5% decline (from -2.9%) in April.
The key takeaway from the report is that total construction spending has decelerated and is now up just 0.3% yr/yr, with a 4.7% yr/yr increase in total public construction spending helping to offset a 1.2% yr/yr decline in total private construction spending.
The ADP Employment Change report for June showed an estimated 2.369 million positions were added to private-sector payrolls. This was less than the Briefing.com consensus of 3.75 million. The data from May was revised higher to 3.065 million from -2.76 million.

Looking ahead to Thursday, investors will receive the Employment Situation Report for June, the weekly Initial and Continuing Claims report, the Trade Balance report for May, and the Factory Orders report for May.

Nasdaq Composite +13.2% YTD
S&P 500 -3.6% YTD
Dow Jones Industrial Average -9.8% YTD
Russell 2000 -14.5% YTD

Market Snapshot
Dow 25734.99 -77.91 (-0.30%)
Nasdaq 10154.63 +95.86 (0.95%)
SP 500 3115.73 +15.57 (0.50%)
10-yr Note -2/32 0.677
NYSE Adv 1515 Dec 1417 Vol 928.7 mln
Nasdaq Adv 1497 Dec 1855 Vol 4.5 bln

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

Moving the Market

-- Market trades mixed to start the third quarter

-- COVID-19 vaccine being developed in part by Pfizer (PFE) reportedly shows promising signs

-- June ISM Manufacturing Index returns to expansionary mode, ADP report shows back-to- back months of private-sector payroll gains

-- Trump administration is preparing global sanctions against China over its treatment of Muslim minorities, according to Bloomberg

WTI crude gains but energy stocks lag
01-Jul-20 15:25 ET
Dow +6.32 at 25819.22, Nasdaq +119.55 at 10178.32, S&P +22.57 at 3122.73

[BRIEFING.COM] The S&P 500 is trading at session highs with a 0.8% gain. The Russell 2000, however, is down 0.7%.

One last look at the S&P 500 sectors shows real estate (+2.7%), utilities (+2.4%), and communication services (+2.4%) up more than 2.0%, while the energy (-2.0%) and financials (-0.9%) sectors lag with noticeable losses.

WTI crude futures rose $0.48 (+1.2%) to $39.76/bbl.

[ReturntoSender]

Nasdaq closes at new record in bullish start to the week
06-Jul-20 16:20 ET
Dow +459.67 at 26287.05, Nasdaq +226.02 at 10433.65, S&P +49.71 at 3179.59

[BRIEFING.COM] The S&P 500 rose 1.6% on Monday in a bullish start to the week, but it was the Nasdaq Composite (+2.2%) and Dow Jones Industrial Average (+1.8%) that gained the advantage today. The Nasdaq closed at another record high, while the Russell 2000 underperformed the large-cap indices with a 0.8% gain.

Ten of the 11 S&P 500 sectors finished in positive territory, including the consumer discretionary (+3.2%), communication services (+2.2%), financials (+2.0%), and information technology (+1.8%) sectors atop the standings. The utilities sector (-1.3%) was the lone holdout with a 1.3% decline.

The positive bias was ignited overseas when a front-page editorial in one of China's state-run news outlets implied that a "healthy bull market" was imminent. China's Shanghai Composite surged 5.7% on Monday. The U.S. stock market saw a noticeable bump after the ISM Non-Manufacturing Index for June returned to expansionary territory with a 57.1% reading (Briefing.com consensus 49.0%).

It was largely a momentum trade rooted in recovery optimism and a fear of missing out, but the market drifted mostly sideways after the ISM report, which was released at 10:00 a.m. ET. The market was supported heavily by mega-cap, and momentum, stocks, including Amazon (AMZN 3057.04, +166.74, +5.8%) and Tesla (TSLA 1371.58, +162.92, +13.5%).

In the energy space, Dominion Energy (D 73.59, -9.10) shares fell 11.0% following a pair of noteworthy actions. The company agreed sell its natural gas assets to Berkshire Hathaway (BRK.B 182.72, +3.89, +2.2%) for $4 billion in cash, which will also assume $5.7 billion in debt, and announced the cancellation of the Atlantic Coast Pipeline that was jointly owned by Duke Energy (DUK 79.81, -2.03, -2.5%).

This was Warren Buffet's first major deal during the pandemic, but it wasn't as alluring as Uber (UBER 32.52, +1.84, +6.0%) agreeing to acquire Postmates for $2.65 billion.

Headlines about the daily record in new coronavirus cases in the U.S. remained in the news, but the market remained steadfast in the view that a growing cooperation in mask-wearing and increased testing would slow the outbreak. On a related note, Regeneron Pharma (REGN 627.25, +4.80, +0.8%) said it started a Phase 3 trial for its COVID-19 antibody treatment.

U.S. Treasuries finished slightly lower in a tight-ranged session. The 2-yr yield increased one basis point to 0.16%, and the 10-yr yield increased two basis points to 0.68%. The U.S. Dollar Index declined 0.4% to 96.75. WTI crude declined 0.2% to $40.51/bbl.

Reviewing Monday's economic data:

The ISM Non-Manufacturing Index for June increased to 57.1% (Briefing.com consensus 49.0%) from 45.4% in May. A reading above 50.0% connotes an expansion in activity. June represented the first month of expanding activity since March.
Survey responses reflect changes, if any, in the current month compared to the previous month. The key takeaway, then, is that the June report can't be taken at face value as a "strong" report so much as it can be taken as a report showing stronger activity relative to the depressed activity in May.

Looking ahead, investors will receive the JOLTS - Job Openings report for May on Tuesday.

Nasdaq Composite +16.3% YTD
S&P 500 -1.6% YTD
Dow Jones Industrial Average -7.9% YTD
Russell 2000 -13.5% YTD

Market Snapshot
Dow 26287.05 +459.67 (1.78%)
Nasdaq 10433.65 +226.02 (2.21%)
SP 500 3179.59 +49.71 (1.59%)
10-yr Note -1/32 0.680
NYSE Adv 2057 Dec 899 Vol 1.1 bln
Nasdaq Adv 2188 Dec 1170 Vol 4.5 bln

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

Moving the Market

-- Tech stocks driving Nasdaq to new records

-- Chinese state media suggested fostering a bull market should be a priority for the Chinese economy

-- ISM Non-Manufacturing Index for June returns into expansionary territory

-- M&A activity

WTI crude ticks lower while stocks gain
06-Jul-20 15:25 ET
Dow +363.92 at 26191.30, Nasdaq +201.26 at 10408.89, S&P +40.53 at 3170.41

[BRIEFING.COM] The S&P 500 is up 1.3% as it continues to drift sideways.

One last look at the S&P 500 sectors shows consumer discretionary (+2.7%), financials (+1.9%), communication services (+1.8%), and information technology (+1.6%) continuing to outperform the benchmark index. The utilities sector (-1.6%) remains an eyesore with a decline nearing 2%.

WTI crude futures decreased $0.07 (-0.2%) to $40.51/bbl.

[ReturntoSender]

Market falters into close, snaps winning streak
07-Jul-20 16:20 ET
Dow -396.85 at 25890.20, Nasdaq -89.76 at 10343.89, S&P -34.40 at 3145.19

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

[BRIEFING.COM] The stock market pulled back from its recent gains on Tuesday, with the S&P 500 (-1.1%), Dow Jones Industrial Average (-1.5%), and Russell 2000 (-1.9%) losing more than 1.0%. The Nasdaq Composite declined 0.9% after setting a new intraday high in the morning.

Early in the session, money continued to flow into the mega-cap technology companies, which briefly lifted the S&P 500 into positive territory. A lack of conviction, however, gradually subsumed the market on the thesis that it had gotten overextended on a short-term basis. The benchmark index had risen for five straight days coming into the session.

Cyclical sectors declined the most, specifically the energy (-3.2%), financials (-2.1%), industrials (-1.9%), and consumer discretionary (-1.7%) sectors. The consumer staples sector (+1.0%), on the other hand, was the only sector that closed higher due to a 7% gain in shares of Walmart (WMT 126.95, +8.06, +6.8%).

Walmart, according to Recode, plans to launch Walmart+ later this month as a competing delivery service to Amazon (AMZN 3000.12, -56.92, -1.9%) prime.

Separately, Atlanta Fed President Bostic cautioned in a Financial Times interview that economic activity appears to be leveling off due to the continued spread of the coronavirus. On Tuesday, the cities of San Francisco and Melbourne, Australia scaled back reopening efforts, joining many other local governments to do so, while Carnival (CCL 14.57, -1.04, -6.7%) canceled some future cruise itineraries.

On a related note, Novavax (NVAX 104.56, +25.12, +31.6%) announced it received a $1.6 billion investment from the federal government to advance its COVID-19 vaccine candidate. NVAX shares surged nearly 32%.

Longer-dated U.S. Treasuries finished higher, causing some curve-flattening activity. The 2-yr yield was unchanged at 0.16%, while the 10-yr yield declined three basis points to 0.65%. The U.S. Dollar Index increased 0.3% to 97.00. WTI crude increased 0.2% to $40.60/bbl.

Tuesday's economic data was limited to the JOLTS - Job Openings report, which showed job openings increase to 5.397 mln in May from a revised 4.996 mln in April (from 5.046 mln). Looking ahead, investors will receive the Consumer Credit Report for May and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +15.3% YTD
S&P 500 -2.7% YTD
Dow Jones Industrial Average -9.3% YTD
Russell 2000 -15.1% YTD

Market Snapshot
Dow 25890.20 -396.85 (-1.51%)
Nasdaq 10343.89 -89.76 (-0.86%)
SP 500 3145.19 -34.40 (-1.08%)
10-yr Note +4/32 0.640
NYSE Adv 707 Dec 2250 Vol 961.2 mln
Nasdaq Adv 904 Dec 2435 Vol 4.2 bln

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

Moving the Market

-- Stock market closes lower after recent stretch of gains, relative weakness in cyclical sectors

-- Walmart (WMT) shares gain 7% on news that the company plans to launch a competing delivery service this month

-- Lingering growth concerns

WTI crude ekes out gain
07-Jul-20 15:25 ET
Dow -277.85 at 26009.20, Nasdaq -38.66 at 10394.99, S&P -20.22 at 3159.37

[BRIEFING.COM] The S&P 500 is now trading at fresh session lows with 0.7% decline.

One last look at the S&P 500 sectors shows consumer staples (+1.5%) bucking the broader trend due to a 7% gain in shares of Walmart (WMT 127.29, +8.40, +7.1%). The energy (-2.5%), financials (-2.1%), industrials (-1.6%), and consumer discretionary (-1.5%) sectors are down noticeably.

WTI crude futures settled today's session higher by $0.09 (+0.2%) to $40.60/bbl.

[ReturntoSender]

Mega-cap tech leads market higher
08-Jul-20 16:20 ET
Dow +177.10 at 26067.30, Nasdaq +148.61 at 10492.50, S&P +24.62 at 3169.81

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

[BRIEFING.COM] The S&P 500 advanced 0.8% on Wednesday, recovering some of yesterday's decline, while the Nasdaq Composite advanced 1.4% to close at another record high. The Dow Jones Industrial Average (+0.7%) and Russell 2000 (+0.8%) performed more in-line with the benchmark index.

The market appeared to receive a late-day boost after St. Louis Fed President Bullard (non-FOMC voter) told CNBC that he is optimistic on a recovery, as the economy appears to be tracking very well right now. Prior to Mr. Bullard's comments, the S&P 500 was trading near its flat line in a lackluster session.

Apple (AAPL 381.37, +8.68, +2.3%), Microsoft (MSFT 212.83, +4.58, +2.2%), and Amazon (AMZN 3081.11, +80.99, +2.7%), which were strong all session, each rose more than 2.0% to provide the boost in the information technology (+1.6%) and consumer discretionary (+1.5%) sectors. The materials sector fell 1.5%, but no other sector declined more than 0.3%.

Advancing issues had a modest advantage over declining issues at the NYSE and Nasdaq, reflecting a mixed market, but the continued outperformance of the market's largest technology stocks made a big difference at the index level. New macro developments were lacking today, but there was some notable corporate news.

Biogen (BIIB 280.19, +11.84, +4.4%) submitted its application to the FDA for its Alzheimer's drug, Twitter (TWTR 35.41, +2.42, +7.3%) may reportedly be working on a subscription service, and National General (NGHC 33.84, +13.43, +65.8%) agreed to be acquired by Allstate (ALL 88.22, -4.43, -4.8%) for $4 billion in cash.

U.S. Treasuries finished near their flat lines in a tight-ranged session. The 2-yr yield was unchanged at 0.16%, and the 10-yr yield was unchanged at 0.65%. The U.S. Dollar Index declined 0.4% to 96.47. WTI crude increased 0.8%, or $0.31, to $40.91/bbl, even as the EIA reported an unexpected build in weekly crude inventories.

Reviewing Wednesday's economic data:

Consumer credit contracted by $18.2 billion in May (Briefing.com consensus -$22.0 billion) after declining an downwardly revised $70.2 bln (from -$68.7 billion) in April.
The key takeaway from the report is that May marked the third straight contraction in consumer credit that was led by a decline in revolving credit, which underscores the more restrictive credit stance adopted by lenders in the wake of the COVID shutdown and massive spike in unemployment.
The weekly MBA Mortgage Applications Index increased 2.2% following a 1.8% decline in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report and Wholesale Inventories for May on Thursday.

Nasdaq Composite +16.9% YTD
S&P 500 -1.9% YTD
Dow Jones Industrial Average -8.7% YTD
Russell 2000 -14.5% YTD

Market Snapshot
Dow 26067.30 +177.10 (0.68%)
Nasdaq 10492.50 +148.61 (1.44%)
SP 500 3169.81 +24.62 (0.78%)
10-yr Note -1/32 0.663
NYSE Adv 1727 Dec 1208 Vol 1.0 bln
Nasdaq Adv 1858 Dec 1353 Vol 4.0 bln

Industry Watch
Strong: Information Technology, Consumer Discretionary, Financials, Utilities
Weak: Materials, Consumer Staples, Real Estate

Moving the Market

-- Stock market closes near session highs following positive commentary from St. Louis Fed President Bullard

-- Continued strength in the mega-cap technology stocks, which lifted the Nasdaq to a new record close

-- Choppy price action, reflective of consolidation action

WTI crude futures settle in the green
08-Jul-20 15:25 ET
Dow +155.87 at 26046.07, Nasdaq +125.93 at 10469.82, S&P +21.10 at 3166.29

[BRIEFING.COM] The S&P 500 is now trading higher by 0.6%, just short of its intraday high of 0.8%.

One last look at the S&P 500 sectors shows information technology (+1.4%), consumer discretionary (+1.2%), utilities (+1.1%), and communication services (+1.0%) sectors leading the market higher. The materials (-1.7%) remains today's laggard by a wide margin.

WTI crude futures settled today's session higher by $0.31 (+0.8%) to $40.91/bbl.

[ReturntoSender]

Technology stocks drag market lower
13-Jul-20 16:15 ET
Dow +10.50 at 26085.80, Nasdaq -226.50 at 10390.94, S&P -29.82 at 3155.22

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

[BRIEFING.COM] The S&P 500 advanced as much as 1.6% on Monday, but a confluence of negative-sounding headlines caused noticeable profit taking in many of the technology-related stocks that left the benchmark index down 0.9% for the session. The Nasdaq Composite fell 2.1%, and Russell 2000 fell 1.3%. The Dow Jones Industrial Average (+0.04%) eked out a fractional gain.

The S&P 500 information technology (-2.1%), communication services (-2.0%), and consumer discretionary (-1.7%) sectors declined the most, while the health care (+0.5%), industrials (+0.4%), and financials (+0.3%) sectors showed relative strength.

The day started in rally mode with the FAANG stocks hitting fresh all-time highs and health care stocks outperforming after two COVID-19 vaccine candidates from the Pfizer (PFE 35.21, +1.38, +4.1%) and BioNTech (BNTX 77.78, +7.42, +10.6%) collaboration received fast-track designation from the FDA.

After the S&P 500 topped out at the 3235.28 level at around 1:40 p.m. ET, the Treasury Budget for June revealed a record $864.1 billion deficit, the Los Angeles and San Diego Unified School Districts announced that the new school year will start remotely, and Secretary of State Pompeo confirmed the U.S. will strengthen its policy on China's territorial claims in the South China Sea.

Losses accelerated, taking the market into negative territory, after California Governor Newsom announced all counties have to re-close indoor operations in several business sectors due to the coronavirus. In addition, the inability of the S&P 500 to stay above its June 8 closing level (3232.39) likely contributed to the downwards momentum.

Shares of Tesla (TSLA 1497.06, -47.59, -3.1%), which were up as much as 16%, turned negative and encouraged profit taking in many of the other mega-cap technology stocks that some say had gotten overbought. Each of the FAANG stocks closed lower.

In other developments, PepsiCo (PEP 134.94, +0.45, +0.3%) beat top and bottom-line estimates; Analog Devices (ADI 117.25, -7.25, -5.8%) issued upside Q3 guidance and agreed to acquire Maxim Integrated (MXIM 69.29, +5.20, +8.1%) for approximately $21 billion in stock; and Macau lifted its quarantine travel restrictions, boosting many of the casino stocks.

U.S. Treasuries ended the session near their flat lines. The 2-yr yield was flat at 0.16%, and the 10-yr yield increased one basis point to 0.64%. The U.S. Dollar Index decreased 0.1% to 96.54. WTI crude decreased 1.2%, or $0.49, to $40.08/bbl.

Reviewing Monday's economic data:

The Treasury Budget was earmarked with a gaping (and record) $864.1 billion deficit for the month of June. This budget data is not seasonally adjusted, so the June deficit cannot be compared to the May deficit of $398.7 billion other than to say both qualify as massive shortfalls in terms of government finances. The deficit in June 2019 was $8.5 billion.
The key takeaway from the report is that the huge swing in the budget was a function of the tax filing deadline being extended, and government spending surging, due to stimulus measures employed in response to the COVID-19 impact.

Looking ahead, investors will receive the Consumer Price Index for June on Tuesday.

Nasdaq Composite +15.8% YTD
S&P 500 -2.3% YTD
Dow Jones Industrial Average -8.6% YTD
Russell 2000 -15.9% YTD

Market Snapshot
Dow 26085.80 +10.50 (0.04%)
Nasdaq 10390.94 -226.50 (-2.13%)
SP 500 3155.22 -29.82 (-0.94%)
10-yr Note +24/32 0.625
NYSE Adv 1056 Dec 1886 Vol 1.0 bln
Nasdaq Adv 910 Dec 2188 Vol 4.8 bln

Industry Watch
Strong: Health Care, Financials, Industrials, Utilities
Weak: Information Technology, Communication Services, Consumer Discretionary, Real Estate

Moving the Market

-- Market closes at lows amid negative-sounding developments; technology stocks succumbed to profit taking

-- California Governor Newsome announced all counties to re-close indoor operations in several sectors

-- Los Angeles and San Diego Unified School Districts announced that the new school year will start online only

-- June Treasury Budget reveals a huge $864.1 billion deficit; the U.S. plans to oppose certain Chinese territorial claims in the South China Sea

-- Pfizer (PFE) and BioNTech (BNTX) received fast track designation from FDA for two of their COVID-19 vaccine candidates

WTI crude closes lower as stocks trade at lows
13-Jul-20 15:25 ET
Dow +229.30 at 26304.60, Nasdaq -106.04 at 10511.40, S&P -2.77 at 3182.27

[BRIEFING.COM] The S&P 500 is now trading lower by 0.1% after being up as much as 1.6% midday.

One last look at the S&P 500 sectors shows real estate (-1.1%), information technology (-1.0%), communication services (-1.0%), and consumer discretionary (-0.6%) leading the market in losses. Conversely, the financials (+1.1%), health Care (+1.1%), and materials (+0.8%) sectors show relative strength.

WTI crude futures settled the session lower by $0.49 (-1.2%) to $40.08/bbl.

[ReturntoSender]

Stocks rebound in broad-based advance
14-Jul-20 16:15 ET
Dow +556.79 at 26642.59, Nasdaq +97.73 at 10488.67, S&P +42.30 at 3197.52

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

[BRIEFING.COM] The S&P 500 gained 1.3% on Tuesday, recovering yesterday's decline in a mostly broad-based advance. The Dow Jones Industrial Average (+2.1%) and Russell 2000 (+1.8%) had strong performances with roughly 2% gains, while the Nasdaq Composite (+0.9%) underperformed.

The market stumbled out of the gate after JPMorgan Chase (JPM 98.21, +0.56, +0.6%), Citigroup (C 50.15, -2.05, -3.9%), and Wells Fargo (WFC 24.25, -1.16, -4.6%) reported large provisions for credit losses in their Q2 earnings reports. While large provisions reflect a challenging economic environment for the banks, investors were willing to stay in the market.

All 11 S&P 500 sectors closed higher, with the best performers found in the cyclical energy (+3.6%), materials (+2.5%), and industrials (+2.2%) sectors. A strong finish in the market carried the consumer discretionary (+0.6%) and financials (+0.7%) sectors into positive territory.

Shares of Amazon (AMZN 3084.00, -20.00, -0.6%) were down as much as 5.0% in early action alongside many of the mega-cap technology stocks, as money appeared to flow out of these crowded names and into beaten-down stocks. Investors, however, gradually returned to the mega-cap space throughout the day, providing a boost for the major indices and leaving AMZN shares down just 0.6%.

Separately, Delta Air Lines (DAL 26.11, -0.71, -2.7%) missed top and bottom-line estimates and issued a cautious revenue outlook for its September quarter. Travelers (TRV 118.55, +4.31, +3.8%) said it expects a net loss in Q2, primarily due to catastrophic events and civil unrest. TRV shares still closed higher.

In the Treasury market, longer-dated tenors saw increased buying interest following the large credit-loss provisions from the banks. The 2-yr yield declined on basis point to 0.15%, and the 10-yr yield declined three basis points to 0.62%. The U.S. Dollar Index declined 0.2% to 96.29. WTI crude increased 0.4%, or $0.16, to $40.24/bbl.

Reviewing Tuesday's economic data:

The Consumer Price Index (CPI) for June increased 0.6% m/m (Briefing.com consensus 0.5%) following a 0.1% decline in May. Excluding food and energy, CPI rose 0.2% m/m (Briefing.com consensus 0.1%) after a 0.1% decline in May. This was the first increase in core CPI since February.
The key takeaway from the report is that shows inflation at the consumer level remains in a subdued state, evidenced by a 0.6% yr/yr increase in total CPI and a 1.2% yr/yr increase in core CPI.
The NFIB Small Business Optimism for June increased to 100.6 from 94.4 in May.

Looking ahead to Wednesday, investors will receive Industrial Production and Capacity Utilization for June, Export and Import Prices for June, the Empire State Manufacturing Index for July, and the weekly MBA Mortgage Applications Index.

Nasdaq Composite +16.9% YTD
S&P 500 -1.0% YTD
Dow Jones Industrial Average -6.6% YTD
Russell 2000 -14.4% YTD

Market Snapshot
Dow 26642.59 +556.79 (2.13%)
Nasdaq 10488.67 +97.73 (0.94%)
SP 500 3197.52 +42.30 (1.34%)
10-yr Note -23/32 0.629
NYSE Adv 1903 Dec 1009 Vol 908.6 mln
Nasdaq Adv 1920 Dec 1179 Vol 4.3 bln

Industry Watch
Strong: Energy, Industrials, Materials, Health Care
Weak: Consumer Discretionary, Financials

Moving the Market

-- Stocks close at session highs in mostly broad-based advance

-- Beaten-down cyclical stocks outperformed, while mega-cap technology stocks underperformed

-- Treasuries edged higher following large provisions for credit losses from the banks

WTI crude settles higher
14-Jul-20 15:25 ET
Dow +427.72 at 26513.52, Nasdaq +13.07 at 10404.01, S&P +24.02 at 3179.24

[BRIEFING.COM] The S&P 500 is up 0.8%, still well behind the Dow Jones Industrial Average, which is up 1.7%.

One last look at the S&P 500 sectors shows energy (+3.1%), materials (+1.8%), and industrials (+1.7%) still leading the market in gains, while the consumer discretionary (-0.7%), financials (+0.1%), and communication services (+0.1%) sectors lag.

WTI crude futures settled higher by $0.16 (+0.4%) to $40.24/bbl.

[ReturntoSender]

Reopening trade lifts market higher on vaccine news
15-Jul-20 16:15 ET
Dow +227.51 at 26870.10, Nasdaq +61.91 at 10550.58, S&P +29.04 at 3226.56

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

[BRIEFING.COM] The S&P 500 gained 0.9% on Wednesday in a choppy trading session following another positive vaccine update. The Dow Jones Industrial Average increased 0.9%, and the Nasdaq Composite increased 0.6%. The Russell 2000 outperformed with a 3.5% gain amid strength in small-cap cyclical stocks.

A reopening trade in which economically-sensitive stocks outperform was catalyzed by news that Moderna's (MRNA 80.22, +5.18, +6.9%) COVID-19 candidate elicited neutralizing antibodies in all 45 participants in a Phase 1 study. MRNA shares closed higher by 7%, although they were up as much as 18% intraday.

Other measures of support included impressive quarterly results from Goldman Sachs (GS 216.90, +2.89, +1.4%), the Fed's July Beige Book observing an increase in consumer spending across all districts, industrial production increasing 5.4% m/m in June (Briefing.com consensus 4.6%), and the Empire State Manufacturing Survey for July jumping to 17.2 (Briefing.com consensus 5.8) from -0.2 in June.

From a sector standpoint, the S&P 500 industrials (+2.6%), energy (+2.0%), financials (+1.9%), and materials (+1.7%) sectors benefited the most from this reopening trade, while the defensive-oriented utilities (-0.4%) and consumer staples (unch) sectors underperformed.

It was also a rotational trade, as cyclical, value, and small-cap stocks outperformed at the expense of mega-cap technology stocks like Amazon (AMZN 3008.87, -75.13, -2.4%). The underperformance of these widely-held names briefly cut the S&P 500's intraday gain to just 0.1%, but a buy-the-dip trade ultimately prevailed.

Some of that intraday selling was also attributed to pestering diplomatic tensions between the U.S. and China and an inability of the S&P 500 to stay above its June 8 closing level (3232.39). UnitedHealth (UNH 304.07, -4.45, -1.4%) was an additional drag following its mixed earnings report.

U.S. Treasuries finished mixed and little changed. The 2-yr yield declined one basis point to 0.14%, while the 10-yr yield increased two basis points to 0.63%. The U.S. Dollar Index declined 0.2% to 96.06. WTI crude increased 2.2%, or $0.89, to $41.13/bbl.

Reviewing Wednesday's economic data:

Total industrial production increased 5.4% m/m in June (Briefing.com consensus 4.6%) following an unrevised 1.4% increase in May. The capacity utilization rate improved to 68.6% (Briefing.com consensus 68.3%) from an upwardly revised 65.1% (from 64.8%) in May.
The key takeaway from the report was the stark disclosure that the index fell 42.6% at an annual rate for the second quarter as a whole, which was the worst downturn since the industrial retrenchment after World War II.
The Empire State Manufacturing Survey for July jumped to 17.2 (Briefing.com consensus 5.8) from -0.2 in June. The dividing line between expansion and contraction for this regional manufacturing survey is 0.0.
Import prices increased 1.4% in June, and prices, excluding oil, increased 0.3%. Export prices increased 1.4% in June, and prices, excluding agriculture, also increased 1.4%.
The weekly MBA Mortgage Applications Index increased 5.1% following a 2.2% increase in the prior week.

Looking ahead to Thursday's economic calendar, investors will receive the weekly Initial and Continuing Claims report, Retail Sales for June, the Philadelphia Fed Index for July, the NAHB Housing Market Index for July, Business Inventories for May, and Net Long-Term TIC Flows for May.

Nasdaq Composite +17.6% YTD
S&P 500 -0.1% YTD
Dow Jones Industrial Average -5.9% YTD
Russell 2000 -11.4% YTD

Market Snapshot
Dow 26870.10 +227.51 (0.85%)
Nasdaq 10550.58 +61.91 (0.59%)
SP 500 3226.56 +29.04 (0.91%)
10-yr Note -1/32 0.636
NYSE Adv 2473 Dec 457 Vol 950.9 mln
Nasdaq Adv 2556 Dec 606 Vol 4.5 bln

Industry Watch
Strong: Energy, Industrials, Financials, Materials
Weak: Utilities, Consumer Staples

Moving the Market

-- Stock market gains on familiar reopening trade, catalyzed by a positive vaccine update from Moderna (MRNA)

-- Encouraging bank earnings and economic data

-- Mega-cap technology stocks undeperformed

WTI crude gains 2% in reopening trade
15-Jul-20 15:30 ET
Dow +127.05 at 26769.64, Nasdaq +28.23 at 10516.90, S&P +20.26 at 3217.78

[BRIEFING.COM] The S&P 500 continues to drift higher by 0.7%. The Russell 2000 stays ahead with a strong 3.5% gain.

One last look at the S&P 500 sectors shows industrials (+2.4%), financials (+1.6%), energy (+1.4%), and materials (+1.3%) in the lead as money continues to flow into cyclical stocks, while the consumer staples (-0.1%) and utilities (-0.3%) sectors trade lower.

WTI crude futures settled higher by $0.89 (+2.2%) to $41.13/bbl.

[ReturntoSender]

Wall Street dragged by technology sector
16-Jul-20 16:20 ET
Dow -135.39 at 26734.71, Nasdaq -76.66 at 10473.92, S&P -10.99 at 3215.57

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

[BRIEFING.COM] The S&P 500 declined 0.3% on Thursday amid relative weakness in the technology sector, but the market did close near its best levels of the session. The Dow Jones Industrial Average declined 0.5%, the Nasdaq Composite declined 0.7%, and the Russell 2000 declined 0.7%.

Earnings news and economic data were mostly better than expected, but today's price action appeared to be more influenced by unrelated moves in the mega-cap technology stocks. The Nasdaq, for instance, was down as much as 1.8% intraday, but it staged a decent rebound in the afternoon as shares of Amazon (AMZN 2999.90, -8.97, -0.3%) nearly recouped an early 3.0% decline.

The top-weighted S&P 500 information technology sector, however, struggled all session with a 1.2% decline amid a lack of leadership from Apple (AAPL 386.09, -4.81, -1.2%) and Microsoft (MSFT 203.92, -4.12, -2.0%). The utilities (+1.3%), materials (+0.4%), communication services (+0.3%), and consumer staples (+0.2%) sectors closed higher.

Earnings reactions were mixed to better-than-expected results from Bank of America (BAC 23.93, -0.67, -2.7%), Morgan Stanley (MS 52.64, +1.29, +2.5%), Johnson & Johnson (JNJ 149.25, +0.99, +0.7%), and Abbott Labs (ABT 96.40, -0.33, -0.3%).

On the data front, retail sales increased 7.5% m/m in June (Briefing.com consensus 5.2%), and weekly initial jobless claims decreased by 10,000 to 1.300 million (Briefing.com consensus 1.260 million). Market reaction was muted.

In other developments, high-profile accounts on Twitter (TWTR 35.28, -0.39, -1.1%) were compromised in a bitcoin scam, Dell (DELL 59.10, +6.42, +12.2%) confirmed it's exploring a potential spin-off of its stake in VMware (VMW 139.87, +0.17, +0.1%), and American Airlines (AAL 12.45, -0.99, -7.4%) warned it could furlough or lay off up to 25,000 employees.

U.S. Treasuries finished the session mostly higher but closed near their flat lines. The 2-yr yield increased one basis point to 0.15%, while the 10-yr yield declined two basis points to 0.61%. The U.S. Dollar Index increased 0.3% to 96.33. WTI crude futures fell 0.9%, or $0.37, to $40.76/bbl.

Reviewing Thursday's economic data, which included Retail Sales for June and the weekly Initial and Continuing Claims report:

Initial jobless claims for the week ending July 11 decreased by 10,000 to 1,300,000 (Briefing.com consensus 1.260 million). Continuing claims for the week ending July 4 decreased by 422,000 to 17,338,000.
The key takeaway from the report is that initial jobless claims continue to run at extremely high levels relative to where they were before the COVID shutdown period began in March, which is a reminder that the labor market recovery still has a long, long way to go.
Retail sales increased 7.5% m/m in June (Briefing.com consensus 5.2%) following an upwardly revised 18.2% increase (from 17.7%) in May. Excluding autos, retail sales rose 7.3% (Briefing.com consensus 5.0%) on the heels of a downwardly revised 12.1% increase (from 12.4%) in May.
The key takeaway from the report is that the pace of growth slowed in June, which is important knowing that retail sales activity in July will be crimped by efforts to pause or roll back reopening activity in response to a surge in coronavirus case counts. In other words, the good news for June will be offset by an expectation for less good -- or even bad -- retail sales for July.
The NAHB Housing Market Index for July increased to 72 (Briefing.com consensus 58) from 58 in June.
The Philadelphia Fed Index for July decreased to 24.1 (Briefing.com consensus 22.5) from the 27.5 reading in June.
Business inventories declined 2.3% in May, as expected, following a revised 1.4% decline in April (from -1.3%).

Looking ahead, investors will receive Housing Starts and Building Permits for June and the preliminary University of Michigan Index of Consumer Sentiment for July on Friday.

Nasdaq Composite +16.7% YTD
S&P 500 -0.5% YTD
Dow Jones Industrial Average -6.3% YTD
Russell 2000 -12.0% YTD

Market Snapshot
Dow 26734.71 -135.39 (-0.50%)
Nasdaq 10473.92 -76.66 (-0.73%)
SP 500 3215.57 -10.99 (-0.34%)
10-yr Note +23/32 0.615
NYSE Adv 1363 Dec 1572 Vol 776.9 mln
Nasdaq Adv 1334 Dec 1905 Vol 4.2 bln

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

Moving the Market

-- Wall Street dragged by the information technology sector, but market closes well off session lows

-- Earnings news and economic data were mostly better than expected

-- Retail sales increased 7.5% m/m in June (Briefing.com consensus +5.2%), weekly initial jobless claims decreased by 10,000 to 1.300 million (Briefing.com consensus 1.260 million)

Energy stocks weighed down by lower oil prices
16-Jul-20 15:25 ET
Dow -185.48 at 26684.62, Nasdaq -91.81 at 10458.77, S&P -16.11 at 3210.45

[BRIEFING.COM] The S&P 500 is down 0.5%, while the Russell 2000 is down 1.1%. Updating the prior comment, Texas Governor Abbott denied rumors that he is considering a statewide shutdown of the state.

One last look at the S&P 500 sectors shows losses across most sectors. The information technology (-1.3%) and real estate (-1.1%) sectors are down more than 1.0%, while the utilities (+1.2%) and materials (+0.2%) sectors are the only sectors in the green.

WTI crude futures settled lower by $0.37 (-0.9%) to $40.76/bbl. The lower oil prices have weighed on the energy sector (-0.7%).

[ReturntoSender]

S&P 500 closes higher in defensive-led session
17-Jul-20 16:15 ET
Dow -62.76 at 26671.95, Nasdaq +29.36 at 10503.28, S&P +9.16 at 3224.73

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

[BRIEFING.COM] The S&P 500 eked out a 0.3% gain on Friday in a lackluster session led by the defensive-oriented sectors. The Nasdaq Composite (+0.3%) and Russell 2000 (+0.4%) rose comparably to the benchmark index, while the Dow Jones Industrial Average declined 0.2% amid relative weakness in financial and energy companies.

Negative factors in today's trade included Netflix (NFLX 492.99, -34.40, -6.5%) issuing cautious subscriber guidance, the preliminary University of Michigan Index of Consumer Sentiment for July dropping to 73.2 (Briefing.com consensus 77.6) from 78.1 in June, and the U.S. tallying another daily record in new coronavirus cases.

The lower consumer sentiment reading was closely linked with the resurgence in coronavirus cases, but investors remained willing to stay in the market. Many opted for a defensive stance that lifted the S&P 500 utilities (+2.3%), real estate (+1.4%), and health care (+1.4%) sectors into the leadership spots at the expense of the cyclical energy (-1.5%) and financials (-0.8%) sectors.

Several mega-cap technology stocks continued to underperform, taking note of the disappointing price action in Netflix as a possible precursor if they fail to live up to elevated expectations. Shares of Amazon (AMZN 2961.97, -37.93, -1.3%) fell 7.4% this week, including today's 1.3% decline.

In other earnings news, BlackRock (BLK 587.72, +20.76, +3.7%) and J.B. Hunt Transport (JBHT 136.82, +4.27, +3.2%) were some notable standouts, with the latter helping drive the outperformance of the Dow Jones Transportation Average (+1.1%).

U.S. Treasuries ended the session little changed. The 2-yr yield declined one basis point to 0.14%, and the 10-yr yield increased two basis points to 0.63%. The U.S. Dollar Index declined 0.4% to 95.95. WTI crude futures declined 0.5%, or $0.20, to $40.56/bbl.

Reviewing Friday's economic data:

Total housing starts increased 17.3% m/m in June to a seasonally adjusted annual rate of 1.186 million units (Briefing.com consensus 1.180 million). Building permits rose 2.1% to 1.241 million (Briefing.com consensus 1.290 million).
The key takeaway from the report is that single-unit permits (+11.8%) and starts (+17.2%) were both strong, which is good to see for a housing market that is short on supply.
The preliminary University of Michigan Index of Consumer Sentiment for July dropped to 73.2 (Briefing.com consensus 77.6) from the final reading of 78.1 for June. The July reading, which is just 1.4 points above the April low, slumped in conjunction with the renewed surge in coronavirus cases and moves by some states to pause or roll back reopening efforts.
The key takeaway from the report is the acknowledgment that sentiment is destined to sink further, creating a risk for a longer recession, if Congress fails to come through with another aggressive fiscal policy response that focuses on financial relief for households and state and local governments.

Looking ahead, there are no economic reports scheduled until next Wednesday, which will include Existing Home Sales for June.

Nasdaq Composite +17.1% YTD
S&P 500 -0.2% YTD
Dow Jones Industrial Average -6.5% YTD
Russell 2000 -11.7% YTD

Market Snapshot
Dow 26671.95 -62.76 (-0.23%)
Nasdaq 10503.28 +29.36 (0.28%)
SP 500 3224.73 +9.16 (0.28%)
10-yr Note 0/32 0.623
NYSE Adv 1609 Dec 1318 Vol 869.0 mln
Nasdaq Adv 1935 Dec 1311 Vol 4.5 bln

Industry Watch
Strong: Utilities, Health Care, Real Estate, Materials, Information Technology
Weak: Financials, Energy, Communication Services, Consumer Discretionary

Moving the Market

-- S&P 500 closes slightly higher amid defensive-oriented leadership

-- Netflix (NFLX) shares fall 6.5% on cautious subscriber guidance

-- Preliminary University of Michigan Index of Consumer Sentiment for July dropped to 73.2 (Briefing.com consensus 77.6) from 78.1 in June

-- Relative weakness in financial and energy stocks

WTI crude futures post modest loss
17-Jul-20 15:25 ET
Dow -47.41 at 26687.30, Nasdaq +43.88 at 10517.80, S&P +13.50 at 3229.07

[BRIEFING.COM] The S&P 500 continues to trade higher by 0.4% and is on pace to close the week higher by 1.4%. Trading volume has been lighter than usual at the NYSE.

One last look at the S&P 500 sectors shows utilities (+2.4%), real estate (+1.7%), and health care (+1.6%) continuing to lead in gains, while the energy (-1.6%) and financials (-0.6%) remain today's laggards.

WTI crude futures settled lower by $0.20 (-0.5%) to $40.56/bbl.

[ReturntoSender]

Nasdaq closes at record high in field day for the mega-caps
20-Jul-20 16:20 ET
Dow +8.92 at 26680.87, Nasdaq +263.90 at 10767.18, S&P +27.11 at 3251.84

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

[BRIEFING.COM] The mega-cap stocks stole the show on Monday, powering the Nasdaq Composite to a 2.5% gain (and record close) and lifting the S&P 500 to a 0.8% gain. The Dow Jones Industrial Average (+0.03%) closed little changed, while the Russell 2000 declined 0.4%.

Amazon (AMZN 3196.84, +234.87, +7.9%) gained 8% after its price target was raised to a Street-high of $3800 at Goldman Sachs and Jefferies. Tesla (TSLA 1643.00, +142.16, +9.5%) and Microsoft (MSFT 21.60, +8.70, +4.3%) rallied ahead of their earnings reports on Wednesday. Alphabet (GOOG 1565.72, +50.17, +3.3%) and Apple (AAPL 393.43, +8.12, +2.1%) rose with the mega-cap trade.

In turn, the S&P 500 consumer discretionary (+3.1%), information technology (+2.6%), and communication services (+1.3%) sectors posted solid gains, but they were the only sectors to close higher today. The Philadelphia Semiconductor Index (+2.0%) also had a great day, reflecting an infatuation for growth stocks after falling out of favor last week.

Conversely, the energy (-1.7%), utilities (-1.4%), industrials (-1.2%), and consumer staples (-1.0%) sectors fell at least 1.0%. The Dow Jones Transportation Average declined 1.6%.

Investors were also provided with positive COVID-19 vaccine data from the U.S. collaboration between Pfizer (PFE 36.50, +0.25, +0.7%) and BioNTech (BNTX 88.20, +2.95, +3.5%) and the UK collaboration between AstraZeneca (AZN 58.68, -2.42, -4.0%) and the University of Oxford.

The broad market did not rally on the news this time around, evidenced by only three S&P 500 sectors closing higher and by declining issues outpacing advancing issues at the NYSE. The S&P 500, however, did finish above its June 8 closing level (3232.39) due to the strength in the mega-caps.

In M&A activity, Noble Energy (NBL 10.18, +0.53, +5.4%) agreed to be acquired by Chevron (CVX 85.27, -1.92, -2.2%) for $5 billion, or $10.38/share, in stock.

U.S. Treasuries finished little changed after trading near their flat lines all session. The 2-yr yield increased one basis point to 0.15%, and the 10-yr yield decreased one basis point to 0.62%. The U.S. Dollar Index declined 0.1% to 98.82. WTI crude futures gained 0.7%, or $0.27, to $40.83/bbl.

Investors did not receive any notable economic data on Monday and will not receive any reports on Tuesday, either.

Nasdaq Composite +20.0% YTD
S&P 500 +0.7% YTD
Dow Jones Industrial Average -6.5% YTD
Russell 2000 -12.0% YTD

Market Snapshot
Dow 26680.87 +8.92 (0.03%)
Nasdaq 10767.18 +263.90 (2.51%)
SP 500 3251.84 +27.11 (0.84%)
10-yr Note +24/32 0.612
NYSE Adv 1280 Dec 1676 Vol 785.4 mln
Nasdaq Adv 1695 Dec 1556 Vol 4.3 bln

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

Moving the Market

-- Mega-caps power Nasdaq to record close, S&P 500 turns positive for the year

-- Amazon (AMZN) shares gained 8% after Goldman Sachs and Jefferies raised their price target on AMZN to a Street-high of $3800

-- More encouraging vaccine news, but broad market did not rally on news this time around

-- Declining issues outpaced advancing issues at NYSE

WTI crude settles higher, but energy stocks lag
20-Jul-20 15:20 ET
Dow +45.73 at 26717.68, Nasdaq +244.26 at 10747.54, S&P +25.72 at 3250.45

[BRIEFING.COM] The S&P 500 is up 0.8% to extend its monthly gain to an impressive 4.8%. The benchmark index is on pace to close above its June 8 closing level (3232.39), which it has not managed to do since then.

One last look at the S&P 500 sectors shows consumer discretionary (+2.9%), information technology (+2.5%), and communication services (+1.0%) as the only sectors trading higher. The utilities (-1.3%), energy (-1.4%), and industrials (-1.1%) sectors are down more than 1.0%.

WTI crude futures settled higher by $0.27 (+0.7%) to $40.83/bbl.

[ReturntoSender]

Down day to end the week, Intel disappoints
24-Jul-20 16:20 ET
https://www.briefing.com/stock-market-update

Dow -182.44 at 26469.89, Nasdaq -98.24 at 10363.26, S&P -20.03 at 3215.63

[BRIEFING.COM] The stock market ended the week in negative territory in a mostly broad-based decline. The S&P 500 fell 0.6%, the Dow Jones Industrial Average fell 0.7%, and the Nasdaq Composite fell 0.9%. The small-cap Russell 2000 underperformed with a 1.5% decline.

Ten of the 11 S&P 500 sectors closed lower, but the health care (-1.1%) and information technology (-1.2%) sectors were the only sectors to decline more than 1.0%. Note, the tech sector was down as much as 2.7% intraday, while the consumer discretionary sector gained 0.3% as shares of Amazon (AMZN 3008.91, +22.36, +0.8%) recovered an early 3.3% decline.

Intel (INTC 50.59, -9.81, -16.2%) did very little recovering, with shares falling 16% after the company announced a six-month delay in its next-generation 7nm chip technology. While disappointing for Intel investors, the news was welcomed by investors of Advanced Micro Devices (AMD 69.40, +9.83, +16.5%).

Other negative factors today included China ordering the U.S. to close its consulate in Chengdu in response to the U.S. ordering China to close its consulate in Houston and a delay in the Republican coronavirus relief bill until next week.

On a more positive note, new home sales surged 13.8% m/m in June to a seasonally adjusted annual rate of 776,000 (Briefing.com consensus 680,000). That was the strongest pace of sales since July 2007 and higher than the pre-pandemic pace of 774,000 seen in January.

In other corporate news, Goldman Sachs (GS 201.47, -1.66, -0.8%) settled its 1MDB case for $3.9 billion, Verizon (VZ 56.85, +1.00, +1.8%) beat top and bottom-line estimates, American Express (AXP 95.33, -1.34, -1.4%) reported mixed quarterly results, and Walt Disney (DIS 117.61, -0.51, -0.4%) reportedly delayed several blockbuster movies by a year.

U.S. Treasuries finished little changed. The 2-yr yield declined one basis point to 0.14%, and the 10-yr yield was flat at 0.58%. Gold futures rose 0.4% to $1897.50/ozt -- its highest settlement price ever amid continued weakness in the U.S. Dollar Index (94.39, -0.30, -0.3%). WTI crude futures settled little changed at $41.08/bbl.

Reviewing Friday's economic data:

New home sales surged 13.8% m/m in June to a seasonally adjusted annual rate of 776,000 (Briefing.com consensus 680,000). That was the strongest pace of sales since July 2007 and higher than the pre-pandemic pace of 774,000 seen in January. On a yr/yr basis, new home sales were up 13.7%.
The key takeaway from the report is that sales activity in the new home market is quite healthy given the tight supply of existing homes for sale, low mortgage rates, pent-up demand, and an emerging, coronavirus-driven shift by city dwellers to suburban settings.

Looking ahead, investors will receive Durable Goods Orders for June on Monday.

Nasdaq Composite +15.5% YTD
S&P 500 -0.5% YTD
Dow Jones Industrial Average -7.3% YTD
Russell 2000 -12.0% YTD

Market Snapshot
Dow 26469.89 -182.44 (-0.68%)
Nasdaq 10363.26 -98.24 (-0.94%)
SP 500 3215.63 -20.03 (-0.62%)
10-yr Note 0/32 0.582
NYSE Adv 992 Dec 1937 Vol 711.3 mln
Nasdaq Adv 868 Dec 2356 Vol 4.2 bln

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

Moving the Market

-- Stocks close lower to end the week

-- Intel (INTC) shares declined 16% after announcing delay in 7nm chip technology and issuing downside Q3 EPS guidance

-- U.S.-China tensions, delay in GOP coronavirus relief bill

WTI crude settles little changed
24-Jul-20 15:25 ET
Dow -193.52 at 26458.81, Nasdaq -102.91 at 10358.59, S&P -23.45 at 3212.21

[BRIEFING.COM] The S&P 500 is down 0.7% and is on pace to end the week lower by 0.4%.

One last look at the S&P 500 sectors shows consumer discretionary (+0.3%) as the only sector trading higher. Laggards remain information technology (-1.2%) and health care (-1.2%), but no other sector is down more than 1.0%.

WTI crude futures settled little changed at $41.08/bbl.

[ReturntoSender]

Stocks boosted by dovish Fed comments
29-Jul-20 16:20 ET
Dow +160.29 at 26539.57, Nasdaq +140.85 at 10543.02, S&P +40.00 at 3258.44

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

[BRIEFING.COM] The S&P 500 rallied 1.2% on Wednesday, as investors were pleased with the Fed's latest policy directive and were unconcerned by the House Judiciary Committee's antitrust hearing. The Nasdaq Composite rose 1.4%, and the Russell 2000 rose 2.1%. The Dow Jones Industrial Average underperformed with a 0.6% gain.

It was a steady and broad-based advance that lifted all 11 S&P 500 sectors into positive territory, including seven that rose at least 1.0%. The energy (+2.1%) and financials (+2.0%) sectors advanced the most with 2% gains, while the consumer staples sector lagged with a 0.2% gain.

A bulk of today's gains came prior to the start of the antitrust hearing and the Fed's unanimous decision to leave rates unchanged. The market pushed higher as soon as Fed Chair Powell began his press conference at 2:30 p.m. ET, liking his comment that the Fed is "not even thinking about thinking about thinking about raising rates." (Yes, Mr. Powell said "thinking" three times).

Note, the CEOs of Apple (AAPL 380.16, +7.15, +1.9%), Amazon (AMZN 3033.53, +33.20, +1.1%), Alphabet (GOOG 1522.02, +21.68, +1.5%), and Facebook (FB 233.29, +3.17, +1.4%) were still testifying before the House Judiciary Committee when the market closed for trading. While many lawmakers expressed serious concern about their business practices, shareholders kept their composure.

Earnings remained mixed, but notable standouts included Advanced Micro Devices (AMD 76.09, +8.48, +12.5%), Shopify (SHOP 1053.59, +68.59, +7.0%), and Starbucks (SBUX 77.42, +2.78, +3.7%). Dow component Visa (V 198.58, +1.84, +0.9%) overcame a negative start following its positive report.

On the downside, Boeing (BA 166.00, -4.84, -2.8%) and General Electric (GE 6.59, -0.30, -4.4%) closed sharply lower following their earnings reports. Boeing also said it expects to cut 19,000 jobs and estimated it will take around three years for travel to return to 2019 levels, which weighed on the airline stocks.

U.S. Treasuries edged higher after the release of the July FOMC statement, but the moves were minuscule. The 2-yr yield declined one basis point to 0.13%, and the 10-yr yield was flat at 0.58%. The U.S. Dollar Index fell another 0.4% to 93.35. WTI crude futures gained 0.6%, or $0.23, to $41.27/bbl.

Reviewing Wednesday's economic data:

Pending home sales increased 16.6% in June (Briefing.com consensus +17.0%) after surging an unrevised 44.3% in May.
The advance international trade in goods deficit totaled $70.6 bln in June following a $75.3 bln deficit in May. Advance retail inventories declined 2.6% in June after decreasing 6.2% in May. Advance wholesale inventories declined 2.0% in June after decreasing 1.2% in May.
The weekly MBA Mortgage Applications Index declined 0.8% following a 4.1% increase in the prior week.

Looking ahead, investors will receive the advance estimate for Q2 GDP and the weekly Initial and Continuing Claims report on Thursday.

Nasdaq Composite +17.5% YTD
S&P 500 +0.9% YTD
Dow Jones Industrial Average -7.0% YTD
Russell 2000 -10.1% YTD

Market Snapshot
Dow 26539.57 +160.29 (0.61%)
Nasdaq 10543.02 +140.85 (1.35%)
SP 500 3258.44 +40.00 (1.24%)
10-yr Note +1/32 0.569
NYSE Adv 2387 Dec 574 Vol 861.0 mln
Nasdaq Adv 2176 Dec 1084 Vol 3.9 bln

Industry Watch
Strong: Financials, Energy, Real Estate, Information Technology
Weak: Utilities, Consumer Staples

Moving the Market

-- Stock market closes higher in broad-based advance

-- Fed kept rates unchanged as expected, Fed Chair Powell reiterated dovish policy stance

-- House Judiciary Committee held antitrust hearing, but shareholders did not show concern

-- Mixed earnings

WTI crude gains amid equity rally
29-Jul-20 15:25 ET
Dow +182.56 at 26561.84, Nasdaq +147.12 at 10549.29, S&P +42.11 at 3260.55

[BRIEFING.COM] The S&P 500 is trading at fresh session highs with a 1.3% gain, while the Russell 2000 outperforms with a 1.8% gain.

One last look at the S&P 500 sectors shows green across the board, with nine sectors up at least 1.0%. The financials sector is up the most with a 1.9% gain, while the utilities sector is up the least with a 0.3% gain.

WTI crude futures settled higher by 0.6%, or $0.23, to $41.27/bbl.

[ReturntoSender]

Mega-caps help market cut losses ahead of earnings
30-Jul-20 16:15 ET
Dow -225.92 at 26313.65, Nasdaq +44.87 at 10587.89, S&P -12.22 at 3246.22

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

[BRIEFING.COM] The S&P 500 declined as much as 1.7% on Thursday following the release of weak economic data, but a buy-the-dip trade in the mega-cap stocks helped the benchmark index close lower by just 0.4%. The Nasdaq Composite gained 0.4%, while the Dow Jones Industrial Average lost 0.9% and the Russell 2000 lost 0.4%.

Prior to the open, data showed Q2 GDP declined at an annualized rate of 32.9% (Briefing.com consensus -35.0%) and initial and continuing jobless claims increase on a weekly basis. The GDP print reflected the self-imposed lockdown while the unemployment data suggested that the labor market is still struggling to normalize.

The data appeared to take a toll on the cyclical energy (-4.1%), materials (-2.0%), and financials (-1.8%) sectors, but a turnaround in the mega-caps contributed to the gains in the information technology (+0.5%), communication services (+0.3%), and consumer discretionary (+0.1%) sectors.

Shares of Apple (AAPL 384.76, +4.60, +1.2%), Amazon (AMZN 3051.88, +18.35, +0.6%), Alphabet (GOOG 1531.45, +9.43, +0.6%), and Facebook (FB 234.50, +1.21, +0.5%) were down between 1-2% at their lows today as investors braced for their earnings reports after the close, but shareholders gradually embraced a buy-the-dip mindset that sent shares into positive territory.

Procter & Gamble (PG 131.42, +3.11, +2.4%), Qualcomm (QCOM 107.19, +14.16, +15.2%), PayPal (PYPL 192.51, +7.91, +4.3%), and UPS (UPS 141.46, +17.78, +14.4%) set new all-time highs after pleasing investors with their earnings results and/or guidance. Qualcomm also announced a licensing agreement with China's Huawei Technologies.

In other developments, reports indicated that lawmakers are still haggling over the contents of the next coronavirus relief bill, and President Trump suggested that the presidential election should be delayed to prevent mail-in fraud.

U.S. Treasuries finished the day with modest gains amid today's weak data. The 2-yr yield declined two basis points to 0.11%, and the 10-yr yield declined four basis points to 0.54%. The U.S. Dollar Index fell another 0.5% to 92.98. WTI crude futures fell 3.2%, or $1.30, to $39.97/bbl.

Reviewing Thursday's economic data:

Second quarter GDP declined at an annualized rate of 32.9% (Briefing.com consensus -35.0%), which is the worst annualized quarterly decline on record. The GDP Price Deflator declined 1.8% (Briefing.com consensus +0.1%).
The key takeaway from the report is its data-based rendering of just how bad things were in the second quarter amidst a self-imposed lockdown to contain the spread of the coronavirus and just how much ground needs to be made up to get back to pre-pandemic levels.
Initial claims for the week ending July 25 increased by 12,000 to 1.434 million (Briefing.com consensus 1.400 million). Continuing claims for the week ending July 18 surged by 867,000 to 17.018 million.
The key takeaway from this report is that initial claims are moving in the wrong direction (up, not down), signalling that the initial recovery momentum from the depths of the second quarter has slowed.

Looking ahead, investors will receive the Personal Income and Spending report for June, the Chicago PMI for July, the Q2 Employment Cost Index, and the revised University of Michigan Index of Consumer Sentiment for July on Friday.

Nasdaq Composite +18.0% YTD
S&P 500 +0.5% YTD
Dow Jones Industrial Average -7.8% YTD
Russell 2000 -10.4% YTD

Market Snapshot
Dow 26313.65 -225.92 (-0.85%)
Nasdaq 10587.89 +44.87 (0.43%)
SP 500 3246.22 -12.22 (-0.38%)
10-yr Note +3/32 0.548
NYSE Adv 1018 Dec 1923 Vol 826.2 mln
Nasdaq Adv 1446 Dec 1827 Vol 4.0 bln

Industry Watch
Strong: Information Technology, Consumer Discretionary, Communication Services, Consumer Staples
Weak: Energy, Financials, Materials

Moving the Market

-- Buy-the-dip trade in the mega-caps helps market cut losses

-- Adv. Q2 GDP showed 32.9% annualized contraction (Briefing.com consensus -35.0%); weekly initial claims and continuing claims increased versus prior week

-- Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), and Facebook (FB) closed higher in front of their earnings after the close

WTI crude falls back below $40 per barrel
30-Jul-20 15:25 ET
Dow -199.93 at 26339.64, Nasdaq +58.36 at 10601.38, S&P -10.05 at 3248.39

[BRIEFING.COM] The S&P 500 continues to pare losses and is now down 0.3% amid gains in the mega-cap stocks.

One last look at the sector standings shows eight trading lower and three trading higher. Consumer discretionary (+0.7%), information technology (+0.5%), and communication services (+0.4%) are on track to close higher, while energy (-3.6%), financials (-1.9%), and materials (-1.9%) continue to underperform.

WTI crude futures settled the session lower by $1.30 (-3.2%) to $39.97/bbl.

[ReturntoSender]

Apple, Amazon, and Facebook lead market higher to close out July
31-Jul-20 16:15 ET
Dow +114.67 at 26428.32, Nasdaq +157.46 at 10745.35, S&P +24.90 at 3271.12

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

[BRIEFING.COM] The S&P 500 advanced 0.8% on Friday, closing at session highs amid a 10.5% gain in Apple (AAPL 425.04, +40.28, +10.5%), an 8% gain in Facebook (FB 253.67, +19.17, +8.2%), and a 4% gain in Amazon (AMZN 3164.68, +112.80, +3.7%) following their impressive quarterly results.

The Nasdaq Composite gained 1.5%, and the Dow Jones Industrial Average gained 0.4%. The Russell 2000, however, fell 1.0%.

The overall market was relatively weak on this final day of July, as declining issued outpaced advancing issues at both the NYSE and Nasdaq, but a turnaround in the S&P 500 utilities (+0.2%), materials (+0.1%), and financials (unch) sectors helped contribute to today's strong finish.

The information technology (+2.5%), consumer discretionary (+1.3%), and communication services (+0.8%) sectors were relatively strong all session due to the mega-cap gains, while the energy (-0.7%), health care (-0.6%), and industrials (-0.4%) sectors lagged.

Negative factors that weighed on the market included lawmakers still arguing over the contents of the next coronavirus relief bill, Alphabet (GOOG 1482.96, -48.49, -3.2%) falling 3% after posting its first-ever yr/yr decline in revenue, and the University of Michigan Index of Consumer Sentiment for July being revised lower to 72.5 (Briefing.com consensus 73.0) from 73.2.

Outside the mega-cap gains, Merck (MRK 80.24, +1.25, +1.6%) and Exxon Mobil (XOM 42.08, +0.21, +0.5%) finished higher following their earnings reports while KC Southern (KSU 171.85, +15.16, +9.7%) spiked 10% on news it could be taken private for more than $21 billion, according to The Wall Street Journal.

Chevron (CVX 83.94, -2.33, -2.7%) and Caterpillar (CAT 132.88, -3.84, -2.8%) were some notable earnings laggards.

U.S. Treasuries finished the session little changed. The 2-yr yield declined one basis point to 0.10%, and the 10-yr yield was flat at 0.54%. The U.S. Dollar Index rebounded 0.5% to 93.44. WTI crude futures increased 0.4%, or $0.16, to $40.13/bbl.

Reviewing Friday's economic data:

Personal income declined 1.1% m/m in June (Briefing.com consensus -0.9%) following a downwardly revised 4.4% decline (from -4.2%) in May. Personal spending increased 5.6% m/m (Briefing.com consensus 5.9%) on the heels of an upwardly revised 8.5% increase (from 8.2%) in May. The PCE Price Index rose 0.4% m/m, as expected, while the core-PCE Price Index, which excludes food and energy, jumped 0.2% m/m, which was also in-line with expectations.
The key takeaway from the report is that a 2.2% m/m gain in wages and salaries as the economy reopened was not enough to offset the 8.9% m/m decline in personal current transfer receipts. This consideration highlights the risk to the recovery trajectory that would be exacerbated at this juncture without further government assistance.
The Q2 Employment Cost Index increased 0.5% (Briefing.com consensus 0.6%), seasonally adjusted, for the three-month period ending in June 2020 after increasing 0.8% for the three-month period ending March 2020.
The key takeaway from the report is that employment costs held relatively steady with the same period a year ago.
The final July reading for the University of Michigan Index of Consumer Sentiment slipped to 72.5 from the preliminary reading of 73.2 and the final June reading of 78.1.
The key takeaway from the report is that the Expectations Index fell back to a six-year low, exposing a potential headwind for spending activity that is integral for stronger growth.
The Chicago PMI for July increased to 51.9 (Briefing.com consensus 42.0) from 36.6 in June.

Looking ahead, investors will receive Construction Spending for June and auto and truck sales for July on Monday.

Nasdaq Composite +19.8% YTD
S&P 500 +1.3% YTD
Dow Jones Industrial Average -7.4% YTD
Russell 2000 -11.3% YTD

Market Snapshot
Dow 26428.32 +114.67 (0.44%)
Nasdaq 10745.35 +157.46 (1.49%)
SP 500 3271.12 +24.90 (0.77%)
10-yr Note +2/32 0.538
NYSE Adv 1257 Dec 1676 Vol 1.3 bln
Nasdaq Adv 1138 Dec 2126 Vol 4.4 bln

Industry Watch
Strong: Consumer Discretionary, Information Technology, Communication Services
Weak: Energy, Financials, Health Care

Moving the Market

-- U.S. stocks trade mostly lower

-- Apple (AAPL), Amazon (AMZN), and Facebook (FB) rise after strong earnings reports

-- Alphabet (GOOG) shares fall despite positive quarterly results

-- Uncertainty surrounding next coronavirus relief bill

WTI crude settles higher, but energy stocks lag
31-Jul-20 15:25 ET
Dow -28.75 at 26284.90, Nasdaq +106.06 at 10693.95, S&P +7.65 at 3253.87

[BRIEFING.COM] The S&P 500 is back in positive territory with a 0.2% gain. The Russell 2000 is down 1.5%.

One last look at the S&P 500 sectors shows information technology (+2.0%), consumer discretionary (+1.1%), and communication services (+0.1%) as the only sectors in the green. Conversely, the energy (-1.6%), health care (-1.1%), and real estate (-1.1%) sectors are down more than 1.0%.

WTI crude futures gained 0.4%, or $0.16, to $40.13/bbl.

[ReturntoSender]

Stocks rise concurrently with longer-dated Treasuries
04-Aug-20 16:20 ET
Dow +164.07 at 26828.47, Nasdaq +38.37 at 10941.24, S&P +11.90 at 3306.51

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

[BRIEFING.COM] The S&P 500 gained 0.4% on Tuesday to close at session highs in a tight-ranged session, even as negotiations surrounding the next coronavirus relief bill remained deadlocked. The Nasdaq Composite (+0.4%) kept pace with the benchmark index to close at a record high, while the Dow Jones Industrial Average (+0.6%) and Russell 2000 (+0.7%) outperformed.

According to media reports, Treasury Secretary Mnuchin said negotiators are no closer to a deal than a week ago while Senator Perdue (R-GA) estimated that stimulus talks could last an additional two weeks. While discouraging, the broad market was not deterred by the news, as nine of the 11 S&P 500 sectors closed higher.

The energy sector rose 2.5% amid higher oil prices ($41.68/bbl, +0.66, +1.6%), followed by gains in the real estate (+1.4%), utilities (+1.4%), and materials (+1.3%) sectors. The health care (-0.5%) and financials (-0.4%) sectors were the lone holdouts.

Financial stocks were pressured by some curve-flattening activity in the Treasury market, which reflected some growth-related angst given that lawmakers remained divided over stimulus talks. The 2-yr yield increased one basis point to 0.12%, while the 10-yr yield fell five basis points to 0.52%.

Within the tech space, Microsoft (MSFT 213.29, -3.25, -1.5%) cooled off from yesterday's TikTok-driven rally, while Advanced Micro Devices (AMD 85.04, +7.37) surged 9.5% to fresh record highs. AMD shot higher after Jefferies raised its price target on the stock to $95 from $86 on a view that it will capitalize on Intel's (INTC 49.13, +0.83, +1.7%) production issues.

Gold futures ($2020.80/ozt, +$33.80, +1.7%) also rallied to new highs above $2000/ozt. The U.S. Dollar Index declined 0.1% to 93.27 after trading higher in the morning.

Tuesday's economic data was limited to the Factory Orders report for June, which increased 6.2% m/m (Briefing.com consensus 5.2%) following a downwardly revised 7.7% increase (from 8.0%) in May.

The key takeaway from the report is the affirmation that business spending picked up in June as economies reopened, evidenced by a 3.4% increase in new orders for nondefense capital goods excluding aircraft that was up slightly from the 3.3% increase noted in the Advance Durable Goods Orders report.

Looking ahead, investors will receive the ADP Employment Change Report for July, the Trade Balance report for June, and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +21.9% YTD
S&P 500 +2.3% YTD
Dow Jones Industrial Average -6.0% YTD
Russell 2000 -9.1% YTD

Market Snapshot
Dow 26828.47 +164.07 (0.62%)
Nasdaq 10941.24 +38.37 (0.35%)
SP 500 3306.51 +11.90 (0.36%)
10-yr Note +27/32 0.504
NYSE Adv 1902 Dec 1057 Vol 863.3 mln
Nasdaq Adv 1938 Dec 1288 Vol 3.9 bln

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

Moving the Market

-- Stocks trade mixed, while Treasury market strengthens

-- Little progress on coronavirus relief bill negotiations, according to reports

Energy stocks follow oil prices higher
04-Aug-20 15:25 ET
Dow +110.91 at 26775.31, Nasdaq +1.19 at 10904.06, S&P +4.61 at 3299.22

[BRIEFING.COM] The S&P 500 is up 0.1%, while the Russell 2000 outperforms with a 0.5% gain.

One last look at the S&P 500 sectors shows energy (+2.4%), materials (+1.7%), utilities (+1.7%), and real estate (+1.3%) in the leadership positions, while the financials (-0.6%), health care (-0.7%), and information technology (-0.2%) sectors still trade lower.

WTI crude futures settled higher by 1.6% (+$0.66) to $41.68/bbl.

[ReturntoSender]

Another Strong Day for the mega-caps
06-Aug-20 16:20 ET
Dow +185.46 at 27386.98, Nasdaq +109.67 at 11108.14, S&P +21.41 at 3349.18

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

[BRIEFING.COM] The mega-cap stocks did the heavy lifting on Thursday, powering the Nasdaq Composite (+1.0%) to another record close and leaving the S&P 500 (+0.6%) within 1.5% of its all-time high. The Dow Jones Industrial Average gained 0.7%, while the small-cap Russell 2000 declined 0.1%.

Look no other than to Apple (AAPL 455.61, +15.36, +3.5%), Microsoft (MSFT 216.35, +3.41, +1.6%), Amazon (AMZN 3225.00, +19.97, +0.6%), Alphabet (GOOG 1550.10, +26.49, +1.8%), and Facebook (FB 265.28, +16.16, +6.5%) to explain today's positive bias that obscured the advantage declining issues had over the advancing issues at the NYSE and Nasdaq.

There were no specific catalysts driving the moves in these names, suggesting that investors were simply chasing these stocks higher due to their strong balance sheets, growth prospects, and dominance in their respective markets. These stocks also awakened a flat-trading market in the afternoon.

Unsurprisingly, the S&P 500 communication services (+2.5%), information technology (+1.5%), and consumer discretionary (+0.5%) sectors advanced the most today. On the other end were the energy (-0.7%), health care (-0.6%), materials (-0.4%), and financials (-0.2%) sectors in negative territory.

In other developments, initial claims for the week ending August 1 were better than feared, decreasing by 249,000 to 1.186 million (Briefing.com consensus 1.400 million), and the U.S. lifted its advisory to avoid all international travel. The latter helped put a bid in the airline stocks.

Separately, lawmakers scheduled stimulus talks for later this evening, although it remained uncertain if a deal was going to get done by tomorrow.

Outside equities, U.S. Treasuries finished little changed, oil prices ($41.95/bbl, -0.29, -0.7%) closed lower, and precious metals continued to rally. The 2-yr yield was flat at 0.11%, and the 10-yr yield declined one basis point to 0.54%. The U.S. Dollar Index declined 0.1% to 92.77. Gold futures rose 0.9% to $2068.80/ozt, and silver futures rose 5.5% to $28.37/ozt.

Reviewing Thursday's economic data:

Initial claims for the week ending August 1 decreased by 249,000 to 1.186 million (Briefing.com consensus 1.400 million). Continuing claims for the week ending July 25 decreased by 844,000 to 16.107 million.
The key takeaway from the report is that initial claims were much better than expected, which is eye candy to a stock market moving up on relative terms. The big picture takeaway, however, is that initial claims are still running in excess of 1.1 million. That's not a good thing, as it underscores the continued perilous state of the labor market. In the same week a year ago, initial claims were 214,000.

Looking ahead, investors will receive the Employment Situation Report for July, Consumer Credit for June, and Wholesale Inventories for June on Friday.

Nasdaq Composite +23.8% YTD
S&P 500 +3.7% YTD
Dow Jones Industrial Average -4.0% YTD
Russell 2000 -7.4% YTD

Market Snapshot
Dow 27386.98 +185.46 (0.68%)
Nasdaq 11108.14 +109.67 (1.00%)
SP 500 3349.18 +21.41 (0.64%)
10-yr Note +1/32 0.539
NYSE Adv 1458 Dec 1479 Vol 791.0 mln
Nasdaq Adv 1492 Dec 1765 Vol 4.0 bln

Industry Watch
Strong: Communication Services, Information Technology, Consumer Discretionary
Weak: Health Care, Materials, Financials, Energy

Moving the Market

-- Mega-cap leadership

-- Initial claims for the week ending August 1 decreased by 249,000 to 1.186 million (Briefing.com consensus 1.400 million)

-- Coronavirus relief negotiations will reportedly continue this evening

WTI crude futures settle lower, weigh on energy stocks
06-Aug-20 15:25 ET
Dow +142.80 at 27344.32, Nasdaq +105.10 at 11103.57, S&P +18.31 at 3346.08

[BRIEFING.COM] The S&P 500 is up 0.6% and is less than 2.0% from its all-time high.

One last look at the S&P 500 sectors shows communication services (+2.6%) firmly in the lead, followed by information technology (+1.4%) and consumer discretionary (+0.7%). Conversely, the energy (-0.9%), health care (-0.8%), and financials (-0.2%) sectors lag in negative territory.

WTI crude futures setled lower by $0.29 (-0.7%) to $41.95/bbl.

[ReturntoSender]

Late selling snaps winning streak in S&P 500 and Dow
11-Aug-20 16:15 ET
Dow -104.53 at 27686.91, Nasdaq -185.53 at 10782.89, S&P -26.78 at 3333.69

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

[BRIEFING.COM] The S&P 500 advanced as much as 0.6% on Tuesday on the back of continued strength in the value and cyclical stocks, but broad-based selling in the last hour of trading left the benchmark index down 0.8% for the session to snap a seven-session winning streak. The Nasdaq Composite underperformed with a 1.7% decline.

The Dow Jones Industrial Average declined 0.4% after rising as much as 1.3% intraday, and the Russell 2000 declined 0.6% after rising as much as 1.2% intraday.

The late-day selling was attributed to comments from Senate Majority Leader McConnell (R-KY), who told Fox News that White House officials have yet to reconvene with congressional Democrats regarding fiscal relief for households and businesses. The news appeared to be a good excuse to tame the market as the S&P 500 came within 0.4% of its all-time high today.

Growth and defensive-oriented stocks saw increased selling that weighed on the S&P 500 information technology (-1.8%), utilities (-2.2%), real estate (-1.9%), and communication services (-1.3%) sectors. Conversely, the financials (+1.3%) and industrials (+0.5%) sectors managed to close higher due to their perceived value.

Notably, U.S. Treasuries and precious metals succumbed to sizable pullbacks. The 2-yr yield increased three basis points to 0.16%, while the 10-yr yield increased eight basis points to 0.66% -- this curve-steepening activity was a boon for the financial stocks. Gold futures fell 4.5% to $1946.90/ozt. The U.S. Dollar Index increased 0.2% to 93.72. WTI crude futures declined 0.7% to $41.66/bbl.

In other macro developments, President Trump floated the idea of cutting taxes on capital gains and middle-income families to further stimulate the economy, and Russia jumped ahead key testing stages to approve a COVID-19 vaccine. Note, it appears unlikely that Congress would approve such legislation or that people would seek out the Russian vaccine.

Separately, Qualcomm (QCOM 108.83, +2.47, +2.3%) shares bucked the negative trend in the tech space after the company reportedly won an appeal in its FTC antitrust case.

Reviewing Tuesday's economic data:

The Producer Price Index for final demand increased 0.6% in July (Briefing.com consensus 0.3%) after decreasing 0.2% in May. Excluding food and energy, the index for final demand rose 0.5% (Briefing.com consensus 0.1%) after decreasing 0.3% in May.
The key takeaway from the report is that inflation pressures at the producer level have increased, but they remain low at this time.
The NFIB Small Business Optimism Index decreased to 98.8 in July from 100.6 in June.

Looking ahead, investors will receive the Consumer Price Index for July, the Treasury Budget for July, and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +20.2% YTD
S&P 500 +3.2% YTD
Dow Jones Industrial Average -3.0% YTD
Russell 2000 -5.6% YTD

Market Snapshot
Dow 27686.91 -104.53 (-0.38%)
Nasdaq 10782.89 -185.53 (-1.69%)
SP 500 3333.69 -26.78 (-0.80%)
10-yr Note -27/32 0.636
NYSE Adv 1473 Dec 1467 Vol 956.0 mln
Nasdaq Adv 1266 Dec 1900 Vol 4.3 bln

Industry Watch
Strong: Financials, Industrials
Weak: Information Technology, Utilities, Real Estate, Communication Services

Moving the Market

-- Late-day selling takes market lower, snapping winning streaks in S&P 500 and Dow

-- Value and cyclical stocks outperformed, growth stocks lagged

-- Treasury yields rose in curve-steepening trade

-- President Trump floated idea of tax cuts on capital gains, middle-income families; Russia approved COVID-19 vaccine

WTI crude settles lower, stock market turns negative
11-Aug-20 15:25 ET
Dow +16.65 at 27808.09, Nasdaq -120.80 at 10847.62, S&P -14.45 at 3346.02

[BRIEFING.COM] The market has succumbed to some late-day selling in the final hour of trading. The S&P 500 is down 0.4%, with some attributing the decline to comments from lawmakers that stimulus talks have yet to resume between both sides.

One last look at the S&P 500 sectors shows information technology (-1.1%), utilities (-1.9%), real estate (-1.5%), and communication services (-0.8%) leading the decline, while the financials (+1.7%), industrials (+0.8%), and energy (+0.3%) sectors still trade higher.

WTI crude futures settled lower by 0.7%, or $0.29, to $41.66/bbl.

[ReturntoSender]

Mega-caps find renewed strength, lift market
12-Aug-20 16:20 ET

Dow +289.93 at 27976.84, Nasdaq +229.42 at 11012.31, S&P +46.66 at 3380.35

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

[BRIEFING.COM] The S&P 500 gained 1.4% on Wednesday and came within a few points of closing at a new record high amid renewed strength in the mega-caps. The Nasdaq Composite set the performance pace with a 2.1% gain. The Dow Jones Industrial Average increased 1.1%, and the Russell 2000 increased 0.5%.

After leading yesterday's decline, the mega-caps returned to usual form with a strong rebound. Apple (AAPL 452.04, +14.54, +3.3%) rose 3%; Tesla (TSLA 1554.76, +180.37, +13.1%) surged 13% after announcing a 5:1 stock split; and NVIDIA (NVDA 457.61, +23.61, +5.4%) rose 5% after its price target was raised to a Street-high of $540 from $450 at Cascend Securities.

The mega-cap stocks carried the S&P 500 information technology (+2.3%) and consumer discretionary (+1.7%) sectors into the leadership roles today. The Philadelphia Semiconductor Index also had a strong day, rising 3.4%.

Gains broadened out to the defensive-oriented health care (+1.7%), utilities (+1.5%), real estate (+1.3%), and consumer staples (+1.3%) sectors, too. Interestingly, the financials sector (-0.3%) sat this one out after outperforming in recent sessions as part of the rotation into value and cyclical stocks.

In vaccine news, Moderna (MRNA 69.52, +0.55, +0.8%) reached a $1.525 billion deal with the U.S. government to manufacture and deliver 100 million doses of its COVID-19 vaccine. MRNA shares gained just 0.8%, though, after starting the day with an 11% gain.

Elsewhere, Treasury Secretary Mnuchin reportedly offered to resume coronavirus relief talks but Democratic congressional leadership said that administration officials remained unwilling to budge from their prior stance. The standstill did not deter trading sentiment today.

U.S. Treasuries finished little changed in a quiet session. The 2-yr yield was unchanged at 0.16%, and the 10-yr yield increased one basis point to 0.67%. The U.S. Dollar Index decreased 0.2% to 93.44. WTI crude rose 2.3%, or $0.94, to $42.60/bbl.

Reviewing Wednesday's economic data:

The Consumer Price Index (CPI) for July increased 0.6% m/m (Briefing.com consensus 0.3%) following a 0.6% increase in June. Excluding food and energy, CPI rose 0.6% m/m (Briefing.com consensus 0.2%) after a 0.2% increase in June.
The key takeaway from the report is that while it followed in the footsteps of yesterday's hotter than expected PPI report, it is unlikely to have significant policy implications, since the Fed has made it clear that discussions about a rate hike are not being conducted at this time.
The Treasury Budget showed a $63.0 bln deficit for July. The budget data is not seasonally adjusted, so the July deficit cannot be compared to the June deficit of $864.1 bln. The deficit in July 2019 was $119.7 bln.
The key takeaway from the report is that the delayed tax filing deadline prevented the July statement from showing another big deficit as outlays nearly doubled year-over-year.
The weekly MBA Mortgage Applications Index rose 6.8% following a 5.1% decline in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report and Import and Export Prices for July on Thursday.

Nasdaq Composite +22.7% YTD
S&P 500 +4.6% YTD
Dow Jones Industrial Average -2.0% YTD
Russell 2000 -5.1% YTD


Market Snapshot
Dow 27976.84 +289.93 (1.05%)
Nasdaq 11012.31 +229.42 (2.13%)
SP 500 3380.35 +46.66 (1.40%)
10-yr Note -2/32 0.667

NYSE Adv 1844 Dec 1084 Vol 770.9 mln
Nasdaq Adv 1825 Dec 1426 Vol 3.6 bln


Industry Watch
Strong: Information Technology, Consumer Discretionary, Health Care, Utilities

Weak: Financials, Energy, Industrials


Moving the Market
-- Market rebounds in mostly broad-based advance

-- Mega-caps resumed leadership roles in buy-the-dip trade

-- Value and cyclical stocks underperformed



WTI crude gains 2%
12-Aug-20 15:25 ET

Dow +343.01 at 28029.92, Nasdaq +246.92 at 11029.81, S&P +53.44 at 3387.13
[BRIEFING.COM] The S&P 500 is now up 1.6% and is vying for a new record close.

One last look at the S&P 500 sectors shows ten of the 11 groups contributing to the advance. Information technology (+2.5%), health care (+2.0%), utilities (+1.9%), and consumer discretionary (+1.8%) outperform, while the financials sector (-0.2%) sits this one out.

WTI crude futures settled higher by 2.3% (+$0.94) to $42.60/bbl.

[ReturntoSender]

S&P 500 closes lower, but mega-caps limit decline
13-Aug-20 16:15 ET
Dow -80.12 at 27896.72, Nasdaq +30.27 at 11042.58, S&P -6.92 at 3373.43

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

[BRIEFING.COM] The S&P 500 declined 0.2% on Thursday, but continued strength in the mega-cap stocks helped limit the decline. The Nasdaq Composite gained 0.3%, while the Dow Jones Industrial Average (-0.3%) and Russell 2000 (-0.2%) performed in-line with the benchmark index.

Apple (AAPL 460.04, +8.00, +1.8%) set a fresh record high in a momentum trade, helping the information technology sector (+0.04%) eke out a gain despite a pullback in the semiconductor stocks and an 11% decline in Cisco (CSCO 42.72, -5.38, -11.2%) following its disappointing quarterly guidance. The Philadelphia Semiconductor Index fell 1.1%.

The communication services sector (+0.4%) also closed higher due to its mega-cap components. Nine sectors closed lower, though, with the energy (-2.0%), real estate (-1.2%), industrials (-0.7%), and financials (-0.6%) sectors declining the most.

In key data, weekly initial claims decreased by 228,000 to 963,000 (Briefing.com consensus 1.150 mln), which was the first time since March that claims checked in below one million. This was a relatively positive development for the market, but some speculated whether it would lessen the pressure for lawmakers to reach a timely coronavirus relief bill.

A report from Politico suggested that there is little hope among negotiators of reaching a deal by September. House Speaker Pelosi (D-CA) said she will only resume talks with White House officials if they are willing to agree to at least a $2 trillion deal.

Interestingly, the S&P 500 grazed above its all-time closing high (3386.15) and matched its high from yesterday at around the 3387 level before facing selling pressure throughout the afternoon. The initial selling, albeit modest, coincided with longer-dated Treasury yields pushing toward session highs.

The 10-yr yield finished higher by five basis points to 0.72% after touching 0.65% at its low in overnight action. The 2-yr yield was flat at 0.16%. The U.S. Dollar Index declined 0.2% to 93.29. WTI crude fell 0.8%, or $0.34, to $42.26/bbl.

Reviewing Thursday's economic data, which included the weekly Initial and Continuing Claims report:

Initial claims for the week ending August 8 decreased by 228,000 to 963,000 (Briefing.com consensus 1.150 mln) from last week's revised reading of 1.191 mln (from 1.186 mln). Continuing claims for the week ending August 1 decreased by 604,000 to 15.486 mln from last week's revised reading of 16.107 mln (from 16.090 mln).
The key takeaway from the report is that it represented the first sub-one million reading in nearly five months. However, at 963,000, weekly initial claims are still about four times as large as what the market had been accustomed to prior to the surge in late March.
Import prices increased 0.7% in July, and prices, excluding oil, increased 0.2%. Export prices increased 0.8% in July, and prices, excluding agriculture, increased 0.7%.

Looking ahead, investors will receive the following reports on Friday: Retail Sales for July, preliminary Q2 productivity and unit labor costs, Industrial Production and Capacity Utilization for July, the preliminary Univ. of Michigan Index of Consumer Sentiment for August, and Business Inventories for June.

Nasdaq Composite +23.1% YTD
S&P 500 +4.4% YTD
Dow Jones Industrial Average -2.3% YTD
Russell 2000 -5.3% YTD

Market Snapshot
Dow 27896.72 -80.12 (-0.29%)
Nasdaq 11042.58 +30.27 (0.27%)
SP 500 3373.43 -6.92 (-0.20%)
10-yr Note -12/32 0.717
NYSE Adv 1204 Dec 1736 Vol 719.1 mln
Nasdaq Adv 1472 Dec 1772 Vol 3.4 bln

Industry Watch
Strong: Communication Services, Information Technology, Consumer Discretionary
Weak: Energy, Financials, Industrials, Real Estate

Moving the Market

-- S&P 500 closes lower, but mega-caps limit decline

-- Weekly initial claims decreased by 228,000 to 963,000 (Briefing.com consensus 1.150 mln) -- first time since March that claims were under one million

-- S&P 500 unable to stay above at its all-time closing high (3386.15)

-- Coronavirus relief talks remained at standstill

WTI crude settles lower, energy stocks lag
13-Aug-20 15:30 ET
Dow -80.57 at 27896.27, Nasdaq +39.33 at 11051.64, S&P -5.31 at 3375.04

[BRIEFING.COM] The S&P 500 is trading lower by 0.2%, and the Russell 2000 is trading lower by 0.4%.

One last look at the S&P 500 sectors shows energy (-1.7%), real estate (-1.0%), and financials (-0.6%) leading today's decline, while the communication services (+0.5%), consumer discretionary (+0.1%), and information technology (+0.1%) sectors trade higher.

WTI crude futures settled lower by 0.8%, or $0.34, to $42.26/bbl. The lower oil prices added pressure to the energy stocks.

[ReturntoSender]

Nasdaq closes at new high, while S&P 500 comes up short
17-Aug-20 16:15 ET
Dow -86.11 at 27844.91, Nasdaq +110.42 at 11129.80, S&P +9.14 at 3381.99

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

[BRIEFING.COM] The S&P 500 increased 0.3% on Monday but came up short yet again of a record close. The Nasdaq Composite, however, did close at a new record high with a 1.0% gain, while the Dow Jones Industrial Average declined 0.3%. The Russell 2000 increased 0.5%.

While it was generally a positive start to the week, investors leaned defensively amid perceived growth concerns attributed to increased U.S.-China tensions, a lack of progress in coronavirus relief talks, and Warren Buffett's Berkshire Hathaway (BRK.B 206.78, -4.18, -2.0%) reducing positions in several bank stocks.

Illustrating the defensive bias, the S&P 500 consumer discretionary (+1.2%), real estate (+0.9%), information technology (+0.7%), and health care (+0.6%) sectors assumed today's leadership for their exposure to the mega-caps and stable businesses. Gold prices gained 2.4% to $1996.80/ozt, and longer-dated Treasuries saw an uptick in demand.

Conversely, the financials (-1.5%), energy (-0.6%), industrials (-0.5%), and utilities (-0.1%) sectors returned to their usual ways this year by closing in negative territory.

Sentiment in the financial sector was pressured after a 13F filing revealed Berkshire Hathaway decreased positions in JPMorgan Chase (JPM 99.71, -2.70, -2.6%) and Wells Fargo (WFC 24.47, -0.83, -3.3%) in the second quarter. Notably, Berkshire added a new position in Barrick Gold (GOLD 30.13, +3.14, +11.6%).

In U.S.-China news, the U.S. further restricted Huawei's access to U.S. chip technology, and President Trump signed a second executive order requiring TikTok to divest its U.S. operations in 90 days. President Trump also suggested there could still be actions against other Chinese companies, including Alibaba (BABA 256.96, +2.99, +1.2%).

In the mega-cap space, NVIDIA (NVDA 493.48, +30.92, +6.7%), Home Depot (HD 288.24, +7.69, +2.7%), and Walmart (WMT 135.60, +3.00, +2.3%) rallied to fresh all-time highs ahead of their earnings reports this week. Tesla (TSLA 1835.64, +184.93, +11.2%) also climbed to new highs with an 11% gain.

U.S. Treasuries, as previously noted, had a decent outing, particularly on the longer-end of the curve. The 2-yr yield increased two basis points to 0.15%, while the 10-yr yield declined three basis points to 0.68%. The U.S. Dollar Index declined 0.3% to 92.81. WTI crude futures gained 2.2%, or $0.89, to $42.94/bbl.

Reviewing Monday's economic data:

The NAHB Housing Market Index increased to an all-time high of 78 in August (Briefing.com consensus 74), as builders have seen, and continue to see, strong demand for new single-family homes.
The Empire State Manufacturing Survey for August declined to 3.7 (Briefing.com consensus 15.0) following the prior month's reading of 17.2.

Looking ahead, investors will receive Housing Starts and Building Permits for July on Tuesday.

Nasdaq Composite +24.0% YTD
S&P 500 +4.7% YTD
Dow Jones Industrial Average -2.4% YTD
Russell 2000 -5.0% YTD

Market Snapshot
Dow 27844.91 -86.11 (-0.31%)
Nasdaq 11129.80 +110.42 (1.00%)
SP 500 3381.99 +9.14 (0.27%)
10-yr Note +1/32 0.697
NYSE Adv 1513 Dec 1448 Vol 744.6 mln
Nasdaq Adv 1860 Dec 1487 Vol 3.1 bln

Industry Watch
Strong: Consumer Discretionary, Information Technology, Health Care, Consumer Staples
Weak: Financials, Energy, Industrials, Utilities

Moving the Market

-- S&P 500 and Nasdaq lean on positive momentum

-- Relative weakness in financial stocks

-- Defensive mindset amid ongoing U.S.-China tensions, lack of progress in coronavirus relief talks, Warren Buffett's second quarter moves

-- Relatively light trading volume

WTI crude settles higher but energy stocks lag
17-Aug-20 15:25 ET
Dow -88.75 at 27842.27, Nasdaq +115.11 at 11134.49, S&P +9.57 at 3382.42

[BRIEFING.COM] The S&P 500 continues to trade higher by 0.3%, and the Russell 2000 is up 0.4%.

One last look at the S&P 500 sectors shows the market getting solid support from the consumer discretionary (+1.3%), information technology (+0.7%), and health care (+0.6%) sectors. The financials (-1.5%), energy (-0.8%), and industrials (-0.6%) sectors flounder in negative territory.

WTI crude futures settled higher by 2.2%, or $0.89, to $42.94/bbl.

[ReturntoSender]

New highs for S&P 500 and Nasdaq
18-Aug-20 16:15 ET

Dow -66.84 at 27778.07, Nasdaq +81.12 at 11210.92, S&P +7.79 at 3389.78

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

[BRIEFING.COM] The S&P 500 increased 0.2% on Tuesday, setting new closing and intraday highs for the first time since February in the process. The Nasdaq Composite also set new highs with a 0.7% gain, but the Dow Jones Industrial Average (-0.2%) and Russell 2000 (-1.0%) finished in negative territory.

The new highs were reached shortly after the open on the heels of blowout earnings reports from Walmart (WMT 134.71, -0.89, -0.7%) and Home Depot (HD 285.00, -3.24, -1.1%), better-than-expected housing starts and building permits data for July, and continued upwards momentum from mega-cap stocks like Amazon (AMZN 3312.49, +130.08, +4.1%).

In sell-the-news fashion, the S&P 500, including WMT and HD, quickly descended into negative territory. An intraday rebound, however, did give the S&P 500 an incremental new high in the afternoon as investors gravitated toward mega-cap stocks within the consumer discretionary (+1.5%), communication services (+1.1%), and information technology (+0.4%) sectors.

Conversely, investors generally avoided small-caps and value-oriented stocks within the energy (-1.7%), financials (-0.7%), utilities (-0.5%), and industrials (-0.5%) sectors. Interestingly, the Dow (-0.2%) was a better representation of today's action, as declining issues did outnumber advancing issues at the NYSE and Nasdaq.

Separately, Politico reported that Senate Republicans are aiming to introduce a smaller stimulus package that will provide $300/week in enhanced unemployment, money for the USPS, and more money for small businesses. Additional fiscal support would provide investors some confidence in the large retailers sustaining their strong performances.

In other corporate news, Oracle (ORCL 55.18, +1.19, +2.2%) reportedly joined the list of companies trying to acquire TikTok US. Kohl's (KSS 20.01, -3.44, -14.7%) said it experienced a softer back-to-school selling season. Teva Pharma (TEVA 10.48, -1.11, -9.6%) is reportedly being sued by the U.S. government over alleged kickbacks violating the False Claims Act.

U.S. Treasuries finished the session slightly higher. The 2-yr yield declined one basis point to 0.14%, and the 10-yr yield declined one basis point to 0.67%. The U.S. Dollar Index fell another 0.6% to 92.30, which benefited gold futures ($2013.2/ozt, +14.50, +0.7%). WTI crude futures declined 0.2%, or $0.09, to $42.80/bbl.

Reviewing Tuesday's economic data:

Total housing starts surged 22.6% m/m in July to a seasonally adjusted annual rate of 1.496 million units (Briefing.com consensus 1.230 million) from an upwardly revised 1.220 million (from 1.186 million) in June. Building permits soared 18.8% m/m to 1.495 million (Briefing.com consensus 1.332 million) from an unrevised 1.258 million in June.
Multi-unit starts and permits drove the positive surprises, yet the key takeaway is that there was also strength in single unit starts (+8.2% m/m) and permits (+17.0% m/m), which is a reflection of strong housing demand.

Looking ahead, investors will receive the FOMC Minutes from the July 28-29 meeting and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +25.0% YTD
S&P 500 +4.9% YTD
Dow Jones Industrial Average -2.7% YTD
Russell 2000 -5.9% YTD


Market Snapshot
Dow 27778.07 -66.84 (-0.24%)
Nasdaq 11210.92 +81.12 (0.73%)
SP 500 3389.78 +7.79 (0.23%)
10-yr Note +3/32 0.668

NYSE Adv 1167 Dec 1795 Vol 770.5 mln
Nasdaq Adv 1239 Dec 2066 Vol 3.2 bln


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

Weak: Energy, Real Estate, Financials, Utilities


Moving the Market
-- S&P 500 sets new all-time high for first time since Feb. 19

-- Another defensive session

-- Relative strength in Amazon (AMZN) following positive batch of retail earnings

-- Housing data better than expected



WTI crude settles slightly lower
18-Aug-20 15:25 ET

Dow -65.53 at 27779.38, Nasdaq +87.26 at 11217.06, S&P +8.97 at 3390.96
[BRIEFING.COM] The S&P 500 is up 0.3% and is on pace to close at a new record high.

One last glance at the S&P 500 sectors shows consumer discretionary (+1.5%), communication services (+1.2%), information technology (+0.4%), and consumer staples (+0.4%) trading higher, while energy (-1.8%), financials (-0.6%), and industrials (-0.5%) lag in negative territory.

WTI crude futures settled lower by 0.2%, or $0.09, to $42.80/bbl.

[ReturntoSender]

Profits taken but Apple hits $2 trillion market cap
19-Aug-20 16:15 ET
Dow -85.19 at 27692.88, Nasdaq -64.38 at 11146.54, S&P -14.93 at 3374.85

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

[BRIEFING.COM] The S&P 500 declined 0.4% on Wednesday, as investors presumably took some profits after the benchmark index set a new all-time high and Apple (AAPL 462.83, +0.58, +0.1%) reached a $2 trillion market capitalization. The Dow Jones Industrial Average lost 0.3%, and the Nasdaq Composite lost 0.6%. The Russell 2000 gained 0.2%.

All 11 S&P 500 sectors closed in negative territory as selling accelerated into the close. The real estate (-2.0%), energy (-1.2%), consumer staples (-0.7%), and consumer discretionary (-0.7%) sectors weighed on the market, while the financials sector (-0.1%) finished just below its flat line.

The day started in a slow grind higher amid an absence of new macro catalysts, which was good for the positive momentum in Apple and, in effect, the major indices. The S&P 500 was only up 0.3% at its high, and a hair below the 3400 level, before turning negative shortly after the FOMC Minutes were released at 2:00 p.m. ET.

Nothing surprising was stated in the minutes, but officials remained concerned about the economy and possibility of a protracted recovery; members discussing yield caps thought yield caps and targets would provide only modest benefits in the current environment. The latter acknowledgement supported the selling pressure in the Treasury market that left yields little changed.

The 2-yr yield was flat at 0.14%, and the 10-yr yield was flat at 0.67%. The U.S. Dollar Index rebounded 0.8% to 92.99, while gold futures pulled back 2.1% to $1970.10/oz. WTI crude futures were flat at $42.90/bbl.

In retail earnings, Target (TGT 154.22, +17.32, +12.7%) and Lowe's (LOW 158.28, +0.37, +0.2%) reported strong earnings results, but Target's 12% gain set it apart. TJX Cos. (TJX 54.36, -3.09, -5.4%) fell 5% after reporting a larger-than-expected quarterly loss.

Separately, Johnson & Johnson (JNJ 150.39, +0.30, +0.2%) agreed to acquire Momenta Pharma (MNTA 52.12, +21.31, +69.2%) for about $6.5 billion in cash, or a 70% premium to yesterday's closing price.

Wednesday's economic data was limited to the weekly MBA Mortgage Applications Index, which decreased 3.3% following a 6.8% increase in the prior week. Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Conference Board's Leading Economic Index for July, and the Philadelphia Fed Index for August on Thursday.

Nasdaq Composite +24.2% YTD
S&P 500 +4.5% YTD
Dow Jones Industrial Average -3.0% YTD
Russell 2000 -5.8% YTD

Market Snapshot
Dow 27692.88 -85.19 (-0.31%)
Nasdaq 11146.54 -64.38 (-0.57%)
SP 500 3374.85 -14.93 (-0.44%)
10-yr Note -2/32 0.688
NYSE Adv 1202 Dec 1756 Vol 766.0 mln
Nasdaq Adv 1477 Dec 1777 Vol 3.4 bln

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

Moving the Market

-- Investors take profits following release of FOMC Minutes

-- S&P 500 sets new high, Apple (AAPL) hits $2 trillion market cap

-- Target (TGT) jumped 12% on strong earnings

WTI crude futures settled flat
19-Aug-20 15:25 ET
Dow +12.89 at 27790.96, Nasdaq -26.34 at 11184.58, S&P -4.32 at 3385.46

[BRIEFING.COM] The S&P 500 is down 0.1% amid losses in eight of its 11 sectors.

One last look at the S&P 500 sectors shows real estate (-1.7%), energy (-0.8%), and consumer staples (-0.6%) down the most, while the financials sector (+0.4%) is up the most but not by much.

WTI crude futures settled little changed at $42.90/bbl.

[ReturntoSender]

Mega-caps power Nasdaq to new record
20-Aug-20 16:20 ET
Dow +46.85 at 27739.73, Nasdaq +118.49 at 11265.03, S&P +10.66 at 3385.51

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

[BRIEFING.COM] The large-cap indices closed higher on Thursday, as the upwards momentum in the mega-caps overshadowed any underlying weakness in the market. The Nasdaq Composite rallied 1.1% for another record close, while the S&P 500 (+0.3%) and Dow Jones Industrial Average (+0.2%) posted smaller gains. The Russell 2000 declined 0.5%.

The session did start on a lower note after weekly initial claims increased by 135,000 to 1.106 million (Briefing.com consensus 990,000), which fueled recovery concerns amid stalled negotiations surrounding the next coronavirus relief bill. That might have explained the clear advantage declining issues had over advancing issues at the NYSE and Nasdaq.

Overall price action, though, has become more intertwined with the constantly growing mega-cap stocks: Apple (AAPL 473.10, +10.27, +2.2%), Microsoft (MSFT 214.58, +4.88, +2.3%), Amazon (AMZN 3297.37, +36.89, +1.1%), Alphabet (GOOG 1581.75, +34.22, +2.2%), and Facebook (FB 269.01, +6.42, +2.4%), which have thrived in the precarious environment.

The big gains in these stocks today carried the information technology (+1.4%), communication services (+1.4%), and consumer discretionary (+0.1%) sectors into positive territory, and the real estate sector (+1.1%) also showed strength after underperforming yesterday.

These were the only sectors that finished higher. The energy sector fell 2.1%, but no other sector lost more than 1.0%.

Separately, Uber (UBER 31.41, +1.99, +6.8%) and Lyft (LYFT 29.76, +1.62, +5.8%) were granted a reprieve in their disputes over driver classification in California, sending shares of both companies higher by 6%. LYFT was down as much as 8.5% after the company previously announced plans to suspend California operations at midnight.

In other corporate news, Intel (INTC 49.17, +0.84, +1.7%) announced a $10 billion accelerate stock repurchase program, NVIDIA (NVDA 485.64, +0.10, unch) reported positive earnings results and upbeat revenue guidance, and Estee Lauder (EL 198.27, -14.23, -6.7%) disappointed investors with its earnings report.

U.S. Treasuries finished the day with modest gains. The 2-yr yield declined two basis points to 0.12%, and the 10-yr yield declined three basis points to 0.64%. The U.S. Dollar Index declined 0.2% to 92.74. WTI crude futures declined 0.6%, or $0.27, to $42.62/bbl.

Reviewing Thursday's economic data:

Initial claims for the week ending August 15 increased by 135,000 to 1.106 million (Briefing.com consensus 990,000). Continuing claims for the week ending August 8 decreased by 636,000 to 14.844 million.
The key takeaway from the report is that it covered the week in which the survey is conducted for the August Employment Situation Report. The jump in initial claims above 1.1 million is going to temper economists' expectations for gains in August nonfarm payrolls.
The Conference Board's Leading Economic Index (LEI) increased 1.4% m/m in July (Briefing.com consensus 1.1%) on the heels of an upwardly revised 3.0% increase (from 2.0%) in June. This was the third straight monthly increase for the index following three straight monthly declines for the February-April period.
The key takeaway from the report is that, despite three straight monthly increases, the July index level of 104.4 remains 6.6% below the 111.8 level seen in February (i.e. the pre-COVID shutdown phase).
The Philadelphia Fed Index decreased to 17.2 in August (Briefing.com consensus 21.0) from 24.1 in July.

Looking ahead, investors will receive Existing Home Sales for July on Friday.

Nasdaq Composite +26.6% YTD
S&P 500 +4.8% YTD
Dow Jones Industrial Average -2.8% YTD
Russell 2000 -6.2% YTD

Market Snapshot
Dow 27739.73 +46.85 (0.17%)
Nasdaq 11265.03 +118.49 (1.06%)
SP 500 3385.51 +10.66 (0.32%)
10-yr Note +3/32 0.652
NYSE Adv 1198 Dec 1761 Vol 706.9 mln
Nasdaq Adv 1301 Dec 1967 Vol 4.1 bln

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

Moving the Market

-- Mega-cap stocks outperform, while cyclical sectors lag

-- Weekly initial claims increased by 135,000 to 1.106 million (Briefing.com consensus 990,000

WTI crude settles modestly lower
20-Aug-20 15:25 ET
Dow +16.65 at 27709.53, Nasdaq +104.00 at 11250.54, S&P +7.41 at 3382.26

[BRIEFING.COM] The S&P 500 is up 0.2%, while the Nasdaq widens its advantage with a 0.9% gain.

One last look at the S&P 500 sectors shows information technology (+1.3%), communication services (+1.1%), real estate (+1.1%), and consumer discretionary (+0.2%) still trading in the green, while the energy (-1.7%), financials (-1.0%), and utilities (-0.9%) sectors lag in negative territory.

WTI crude futures settled lower by 0.6%, or $0.27, to $42.62/bbl.

[ReturntoSender]

Cyclically-charged Monday rally
24-Aug-20 16:15 ET
Dow +378.13 at 28308.46, Nasdaq +67.92 at 11379.72, S&P +34.12 at 3431.28

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

[BRIEFING.COM] The S&P 500 (+1.0%) and Nasdaq Composite (+0.6%) rose to new record highs on Monday, as sentiment was boosted by news the FDA approved emergency use authorization for convalescent plasma in hospitalized COVID-19 patients. The Dow Jones Industrial Average gained 1.4%, and the Russell 2000 gained 1.0%.

Cyclical stocks outperformed, as they typically do when there is any positive-sounding coronavirus update due to the prospect for a stronger recovery in these beaten-down spaces. The S&P 500 energy (+2.8%), financials (+2.3%), industrials (+1.8%), and materials (+1.7%) sectors set the performance pace.

The health care sector (-0.5%) was the only S&P 500 sector that closed lower today.

Many of the mega-cap stocks started the day rallying to fresh all-time highs, but a lack of follow-through buying interest in these names tamed the bulls and briefly took the tech-sensitive Nasdaq into negative territory. Investors bought the intraday dip, although these stocks (and the Nasdaq) closed well off session highs.

Apple (AAPL 503.43, +5.95, +1.2%), for example, was up as much as 3.6% but ended the day higher by 1.2%. Nevertheless, it was still a good day for Apple after Morgan Stanley raised its price target to a Street-high $520 from $431. Today was also the record date for the company's 4:1 stock split.

In the energy space, many oil producers temporarily closed oil refineries in the U.S. Golf Coast in anticipation of two tropical storms, one of which is expected to strengthen into a hurricane before making landfall later this week.

WTI crude futures increased 0.7%, or $0.30, to $42.61/bbl. Natural gas futures increased 1.5% to $2.612/MMBtu. Unleaded gasoline futures increased 3.9% to $1.26/gallon.

U.S. Treasuries finished near their flat lines in a muted session, suggesting bond investors were less enthused about the vaccine news. The 2-yr yield was flat at 0.15%, and the 10-yr yield increased one basis point to 0.65%. The U.S. Dollar Index increased 0.1% to 93.30.

Investors did not receive any economic data on Monday. Looking ahead, investors will receive New Home Sales for July, the Consumer Confidence Index for August, the FHFA Housing Price Index for August, and the S&P Case-Shiller Home Price Index for June on Tuesday.

Nasdaq Composite +26.8% YTD
S&P 500 +6.2% YTD
Dow Jones Industrial Average -0.8% YTD
Russell 2000 -6.0% YTD

Market Snapshot
Dow 28308.46 +378.13 (1.35%)
Nasdaq 11379.72 +67.92 (0.60%)
SP 500 3431.28 +34.12 (1.00%)
10-yr Note -2/32 0.653
NYSE Adv 2152 Dec 815 Vol 773.3 mln
Nasdaq Adv 1829 Dec 1508 Vol 3.8 bln

Industry Watch
Strong: Energy, Financials, Materials, Industrials
Weak: Health Care, Real Estate

Moving the Market

-- New highs for S&P 500 and Nasdaq

-- FDA approved emergency use authorization for convalescent plasma in hospitalized COVID-19 patients

-- Cyclical sectors outperformed

WTI crude futures rise, energy stocks follow
24-Aug-20 15:25 ET
Dow +241.47 at 28171.80, Nasdaq +22.15 at 11333.95, S&P +20.49 at 3417.65

[BRIEFING.COM] The S&P 500 is up 0.6% as nine of its 11 sectors continue to trade in the green.

Briefly, the energy (+2.0%), financials (+1.8%), materials (+1.6%), and industrials (+1.4%) sectors are up more than 1.0%, while the health care (-0.8%) and real estate (-0.3%) sectors trade lower.

WTI crude futures settled higher by 0.7%, or $0.30, to $42.61/bbl, which has been an added boost for the energy stocks.

[ReturntoSender]

Another day, another record high as mega-caps power rally
26-Aug-20 16:15 ET
Dow +83.48 at 28331.92, Nasdaq +198.59 at 11665.06, S&P +35.11 at 3478.73

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

[BRIEFING.COM] The S&P 500 (+1.0%) and Nasdaq Composite (+1.7%) rallied to fresh record highs on Wednesday, propelled higher by some eye-popping gains in the mega-cap stocks. The Dow Jones Industrial Average increased just 0.3%, while the Russell 2000 was left in the dust with a 0.7% decline.

Highlighting a few of the moves: Salesforce (CRM 272.32, +56.27, +26.0%) surged 26% following its earnings report, Facebook (FB 303.91, +23.09, +8.2%) rose 8% on no news, and Netflix (NFLX 547.53, +56.95, +11.6%) rose 11% on no news. Apple (AAPL 506.09, +6.79, +1.4%) and Tesla (TSLA 2153.17, +129.83, +6.4%) were fueled by a pair of Street-high price-target increases.

Consequently, today's leadership came from the S&P 500 communication services (+3.7%), information technology (+2.1%), and consumer discretionary (+1.5%) sectors, which are home to many of the mega-caps. In the afternoon, the gains broadened out to the materials (+1.0%), industrials (+0.1%), and consumer staples (+0.1%) sectors.

Notably, the market internals weren't as bullish. Declining issues outnumbered advancing issues at the NYSE and Nasdaq by a comfortable margin. The biggest laggards were found within the energy (-2.2%), utilities (-1.2%), and real estate (-0.7%) sectors.

In other developments, durable goods orders increased 11.2% m/m in July (Briefing.com consensus +3.9%), and Moderna (MRNA 70.50, +4.25, +6.4%) said its COVID-19 vaccine generated a promising immune response in ten elderly patients.

For some perspective on today's record-setting performance, the S&P 500 finished the day up 58.7% from its March 23 low, up 7.7% for the year, and 13.0% above its 200-day moving average (3079). The latter raises the risk for a technical correction, although the momentum in the market can go on for longer than expected.

U.S. Treasuries finished the day little changed. The 2-yr yield decreased one basis point to 0.15%, and the 10-yr yield increased one basis point to 0.69%. The U.S. Dollar Index declined 0.1% to 92.91. WTI crude futures increased by 0.1% to $43.39/bbl.

Reviewing Wednesday's economic data:

New orders for durable goods increased 11.2% m/m in July (Briefing.com consensus +3.9%) from an upwardly revised 7.7% (from 7.6%) in June. Excluding transportation, new orders jumped 2.4% m/m (Briefing.com consensus +1.8%) following an upwardly revised 4.0% increase (from 3.6%) in June.
The key takeaway from the report is that increased orders were seen across the manufacturing complex (other than nondefense aircraft and parts), underscoring a recovery-minded disposition in the wake of the COVID shutdown period.
The weekly MBA Mortgage Applications Index declined 6.5% following a 3.3% decrease in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the second estimate for Q2 GDP, and Pending Home Sales for July on Thursday.

Nasdaq Composite +30.0% YTD
S&P 500 +7.7% YTD
Dow Jones Industrial Average -0.7% YTD
Russell 2000 -6.5% YTD

Market Snapshot
Dow 28331.92 +83.48 (0.30%)
Nasdaq 11665.06 +198.59 (1.73%)
SP 500 3478.73 +35.11 (1.02%)
10-yr Note -1/32 0.695
NYSE Adv 1158 Dec 1809 Vol 745.0 mln
Nasdaq Adv 1432 Dec 1910 Vol 3.4 bln

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

Moving the Market

-- S&P 500 and Nasdaq closed at fresh record highs on back of continued mega-cap leadership

-- Upbeat earnings reports, economic data

-- Declining issues outpaced advancing issues at NYSE and Nasdaq by a comfortable margin

[ReturntoSender]

Mega-cap tech comes out strong in positive day for Nasdaq
31-Aug-20 16:15 ET
Dow -233.82 at 28420.05, Nasdaq +79.82 at 11775.46, S&P -7.70 at 3500.31

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

[BRIEFING.COM] Mega-cap tech powered the Nasdaq Composite to a 0.7% gain and to new record highs on Monday. The S&P 500 set an intraday record high but declined 0.2% amid relative weakness in the broader market. The Dow Jones Industrial Average fell 0.8%, and the Russell 2000 fell 1.0%.

There was an absence of new macro developments, so the same tech-related stocks continued to set the winning pace at the expense of the cyclical stocks within the energy (-2.2%), materials (-1.5%), financials (-1.2%), and industrials (-1.2%) sectors. Declining issues outpaced advancing issues by more than a 2:1 margin at the NYSE.

Apple (AAPL 129.04, +4.23, +3.4%) and Tesla (TSLA 498.32, +55.64, +12.6%) rose 3% and 12%, respectively, as investors continued to bid shares higher following their stock splits today. Amazon (AMZN 3450.96, +49.16, +1.5%) gained 1.5% after its drone delivery unit received FAA certification.

AAPL and AMZN carried the S&P 500 information technology (+0.4%) and consumer discretionary (+0.2%) sectors into the green, but the health care (+0.3%) and utilities (+0.3%) sectors also put in a positive performance.

Interestingly, the CBOE Volatility Index climbed 15.0% to 26.41, as investors assumed some protection against a possible downturn in equities. The popular view is that a modest correction could come in September after a strong two-month performance in the S&P 500. The benchmark index ended August with an impressive 7.0% gain.

Separately, CNBC reported that a TikTok deal could be announced as soon as tomorrow. Front-runners Microsoft (MSFT 225.53, -3.38, -1.5%), Walmart (WMT 138.85, -1.45, -1.0%), and Oracle (ORCL 57.22, -0.66, -1.1%) declined at least 1.0% today.

U.S. Treasuries saw modest gains amid the underlying weakness in the stock market. The 2-yr yield declined two basis points to 0.13%, and the 10-yr yield declined four basis points to 0.69%. The U.S. Dollar Index declined 0.2% to 92.19. WTI crude futures declined 0.8%, or $0.35, to $42.62/bbl.

Investors did not receive any notable economic data on Monday. Looking ahead, investors will receive the ISM Manufacturing Index for August and Construction Spending for July on Tuesday.

Nasdaq Composite +31.2% YTD
S&P 500 +8.3% YTD
Dow Jones Industrial Average -0.4% YTD
Russell 2000 -6.4% YTD

[ReturntoSender]

S&P 500 and Nasdaq extend record run into September
01-Sep-20 16:15 ET
Dow +215.61 at 28635.66, Nasdaq +164.21 at 11939.67, S&P +26.34 at 3526.65

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

[BRIEFING.COM] The S&P 500 (+0.8%) and Nasdaq Composite (+1.4%) rallied to fresh record highs on Tuesday, with the Nasdaq getting an added boost from the momentum in the mega-caps and growth stocks. The wealth spread around to the Russell 2000 (+1.1%) and Dow Jones Industrial Average (+0.8%), too.

Today's key moves were Apple (AAPL 134.18, +5.14, +4.0%) rising 4% after JPMorgan raised its price target on the stock to $150 from $115, and Zoom Video (ZM 457.69, +132.59, +40.8%) surging 40% after it crushed Q2 earnings expectations.

Apple was a major factor in today's index gains given its 7.3% weight in the S&P 500, while Zoom provided the fuel for other growth stocks like Netflix (NFLX 556.55, +26.99, +5.1%) and DocuSign (DOCU 268.80, +45.80, +20.5%). Another supporting factor was the ISM Manufacturing Index for August increasing to 56.0% (Briefing.com consensus 54.5%) from 54.2% in July.

The manufacturing data helped lift the S&P 500 materials (+2.8%) and industrials (+1.0%) sectors into positive territory with the information technology (+1.9%), communication services (+1.0%), and consumer discretionary (+1.1%) sectors. Each advanced at least 1.0%.

Conversely, the utilities (-1.1%), health care (-1.0%), and energy (-0.9%) sectors underperformed and declined around 1.0%.

Recapping some other mega-cap moves, Walmart (WMT 147.59, +8.74, +6.3%) climbed 6% after officially introducing its Walmart+ membership program. Tesla (TSLA 475.05, -23.27, -4.7%), however, was a notable holdout after the company disclosed plans to sell up to $5 billion in stock.

U.S. Treasuries ended the day higher after reclaiming overnight losses. The 2-yr yield declined two basis points to 0.11%, and the 10-yr yield declined two basis points to 0.67%. The U.S. Dollar Index increased 0.2% to 92.34 after being down 0.4% in the morning. WTI crude futures increased 0.3%, or $0.14, to $42.76/bbl.

Reviewing Tuesday's economic data:

The ISM Manufacturing Index for August increased to 56.0% (Briefing.com consensus 54.5%) from 54.2% in July. The dividing line between expansion and contraction is 50.0%. The August reading is the highest level for the index since January 2019.
The key takeaway from the report is that it is a reflection of an encouraging rebound in manufacturing activity following the sharp contraction seen in April and May.
Total construction spending increased 0.1% m/m in July (Briefing.com consensus +1.0%) on the heels of an upwardly revised 0.5% decline (from -0.7%) in June. Total private construction spending rose 0.6% and total public construction spending fell 1.3%.

Looking ahead, investors will receive the ADP Employment Change Report for August, the Fed's Beige Book, Factory Orders for July, and the weekly MBA Mortgage Applications Index, and auto and truck sales for August on Wednesday.

Nasdaq Composite +33.1% YTD
S&P 500 +9.2% YTD
Dow Jones Industrial Average +0.4% YTD
Russell 2000 -5.4% YTD

[ReturntoSender]

Renewed selling sweeps market
10-Sep-20 16:15 ET
Dow -405.89 at 27524.58, Nasdaq -221.97 at 10919.60, S&P -59.77 at 3339.19

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

[BRIEFING.COM] The S&P 500 fell 1.8% on Thursday in a broad-based retreat led by shares of technology and energy companies. The Nasdaq Composite declined 2.0%, the Dow Jones Industrial Average declined 1.5%, and the Russell 2000 declined 1.2%.

The day started with the S&P 500 up 0.8%, and briefly surpassing yesterday's intraday high, on the back of leadership from the mega-caps and growth stocks. The latter might have benefited from an underwhelming weekly initial jobless claims report, which was unchanged at 884,000 (Briefing.com consensus 813,000).

On no specific news, though, these stocks quickly turned around and the selling carried over to the broad market throughout the day. All 11 S&P 500 sectors finished in red, and 29 of the 30 Dow components finished lower.

The information technology (-2.3%) and energy (-3.7%) sectors declined more than the S&P 500, while the materials sector (-0.9%) was a relative outperformer. At one point today, the influential tech sector was up 2.6%.

Some factors that might have pressured sentiment included the inability to sustain yesterday's rebound, suggesting that there was still more selling ahead, and news that the Senate failed to pass its $300 billion coronavirus relief bill. Granted, no one was expecting that bill to get very far, but it reflected the burgeoning pessimism surrounding another relief bill.

As equities steepened losses throughout the afternoon, money flowed into longer-dated U.S. Treasuries in a safety trade. The 2-yr yield increased one basis point to 0.14%, while the 10-yr yield decreased two basis points to 0.69%. The U.S. Dollar Index advanced 0.2% to 93.41. WTI crude futures fell 2.1%, or $0.78, to $37.27/bbl.

Bucking the trend today was RH (RH 385.46, +64.38, +20.1%) after the furniture and home accessories company exceeded quarterly expectations. RH shares surged 20% to fresh record highs.

Reviewing Thursday's economic data:

Initial claims for the week ending September 5 were unchanged at 884,000 (Briefing.com consensus 813,000). Continuing claims for the week ending August 29 increased by 93,000 to 13.385 million.
The key takeaway from the report is that there is nothing worth celebrating about initial claims being under one million when they are just barely under 900,000 nearly six months following the shock of the COVID shutdown phase in March. In the same week a year ago, initial claims were 208,000.
The Producer Price Index for final demand increased 0.3% m/m in August, as expected. The index for final demand, excluding food and energy, increased 0.4% m/m (Briefing.com consensus +0.2%). That left the yr/yr changes at -0.2% and 0.6%, respectively.
The key takeaway from the report is that the soft year-over-year readings will overshadow the stronger month-over-month readings, because the year-over-year numbers play into the Fed's view that it isn't even thinking about thinking about thinking about raising rates.
Wholesale inventories decreased 0.3% in July (Briefing.com consensus -0.1%), versus a prior decline of 1.3% in June.

Looking ahead, investors will receive the Consumer Price Index for August and the Treasury Budget for August on Friday.

Nasdaq Composite +21.7% YTD
S&P 500 +3.4% YTD
Dow Jones Industrial Average -3.5% YTD
Russell 2000 -9.6% YTD

[ReturntoSender]

S&P 500 ekes out gain amid cyclical leadership
11-Sep-20 16:20 ET
Dow +131.06 at 27655.64, Nasdaq -66.05 at 10853.55, S&P +1.78 at 3340.97

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

[BRIEFING.COM] The S&P 500 increased 0.1% on this 19th anniversary of 9/11 but continued selling in the mega-caps limited the upside. The Dow Jones Industrial Average gained 0.5%, while the Nasdaq Composite (-0.6%) and Russell 2000 (-0.7%) closed lower.

Similar to the days before, today's price action was technically-oriented given the absence of market-moving news and the losses in stocks like Apple (AAPL 112.00, -1.49, -1.3%), Amazon (AMZN 3116.22, -58.89, -1.9%), and Microsoft (MSFT 204.03, -1.34, -0.7%) on no specific corporate news. Apple shares fell 7.4% this week.

The difference today was that their losses were offset by relative strength in the cyclical sectors, namely industrials (+1.4%), materials (+1.3%), and financials (+0.8%). Still, when Apple and Amazon are down more than 1.0%, there must be more winners than losers to make a meaningful difference.

There were more of the latter on Friday, as declining issues outpaced advancing issues at the NYSE and Nasdaq. The information technology (-0.8%), consumer discretionary (-0.3%), and communication services (-0.3%) sectors ended the day in negative territory due to their exposure to the mega-cap stocks.

Interestingly, the S&P 500 was down as much as 0.9% intraday and fell below its 50-day moving average (3322). A broad rebound in the afternoon, however, helped the benchmark index turn positive and close above the key technical level.

Shares of Oracle (ORCL 57.00, -0.33, -0.6%), Peloton (PTON 84.04, -3.71, -4.2%), and Kroger (KR 34.37, -0.37, -1.1%) finished lower following their earnings reports. Note, ORCL shares were up as much as 7.9%, and PTON shares were up as much as 11.8%.

U.S. Treasuries finished on a higher note. The 2-yr yield declined one basis point to 0.13%, and the 10-yr yield declined two basis points to 0.67%. The U.S. Dollar Index declined 0.1% to 93.28. WTI crude futures increased 0.2%, or $0.07, to $37.34/bbl.

Reviewing Friday's economic data:

Total CPI increased 0.4% m/m in August (Briefing.com consensus +0.3%) while core CPI, which excludes food and energy, also rose 0.4% (Briefing.com consensus +0.2%). The gains in August left total CPI up 1.3% yr/yr and core CPI up 1.7% yr/yr.
The key takeaway from the report, which featured the largest increase in the index for used cars and trucks (+5.4%) since March 1969, is that the increase in the all items index was broad-based; nonetheless, annual inflation rates are still running well below 2.0%, so there is still more noise than bothersome policy signal in the August report.
The Treasury Budget showed a $200.1 bln deficit in August. The budget data is not seasonally adjusted, so the August deficit cannot be compared to the July deficit of $63.0 bln. The deficit in August 2019 was $200.3 bln.
The key takeaway from the report is that while outlays and receipts showed little yr/yr change in August, the year-to-date deficit climbed above $3 trillion.

There are no notable economic reports scheduled for Monday.

Nasdaq Composite +21.0% YTD
S&P 500 +3.4% YTD
Dow Jones Industrial Average -3.1% YTD
Russell 2000 -10.3% YTD

[ReturntoSender]

Tech leadership prevails
15-Sep-20 16:20 ET
Dow +2.27 at 27985.60, Nasdaq +133.67 at 11190.33, S&P +17.66 at 3401.20

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

[BRIEFING.COM] The S&P 500 gained 0.5% on Tuesday, although it started the day up as much as 1.1% in a relatively broad-based continuation of the prior day's rebound. The mega-caps and growth stocks generally outperformed their value-oriented peers.

The Nasdaq Composite advanced 1.2%, reflecting the tech-oriented leadership, while the Russell 2000 (+0.1%) and Dow Jones Industrial Average (unch) finished little changed.

Apple (AAPL 115.54, +0.19, +0.2%) was the exception to the mega-cap excellence despite the company revealing a new watch with added fitness and health capabilities, a new iPad, and new subscription plans. Shares opened higher by 3.0% but briefly turned negative after the conclusion of its product event in the afternoon, weighing on the major indices.

Most components in the top-weighted S&P 500 information technology sector (+1.0%) still showed relative strength, though, and gains in the communication services (+1.7%), real estate (+1.4%), and consumer discretionary (+1.0%) sectors supported the market. Conversely, the financials (-1.4%), energy (-0.8%), and consumer staples (-0.1%) sectors closed lower.

Losses were broad in the financials sector, but JPMorgan Chase (JPM 99.28, -3.19, -3.1%) particularly weighed on sentiment after lowering its FY20 net interest income guidance to $55 bln from prior guidance of $56 bln. Citigroup (C 44.81, -3.34, -6.9%) fell another 7% after falling 5% yesterday on news of a potential penalty from federal regulators.

Other notable laggards included Caterpillar (CAT 148.60, -4.91, -3.2%) after providing disappointing sales figures for August, Lennar (LEN 75.90, -3.10, -3.9%) despite reporting better-than-expected earnings results, and Carnival (CCL 15.93, -1.92, -10.8%) after disclosing a $1 billion stock offering.

Shares of NextEra Energy (NEE 295.70, +13.78, +4.9%) rose 5% after the utilities company increased its EPS guidance for 2021 and announced a 4:1 stock split.

U.S. Treasuries finished mixed and little changed. The 2-yr yield declined one basis point to 0.13%, and the 10-yr yield increased one basis point to 0.68%. The U.S. Dollar Index was flat at 93.08. WTI crude futures rose 2.9%, or $1.08, to $37.22/bbl.

Reviewing Tuesday's economic data:

Industrial production increased 0.4% m/m in August (Briefing.com consensus +1.0%) after increasing an upwardly revised 3.5% (from 3.0%) in July. The capacity utilization rate increased to 71.4% (Briefing.com consensus 71.7%) from an upwardly revised 71.1% (from 70.6%).
The key takeaway from the report is the understanding that gains for most manufacturing industries have gradually slowed since June.
The Empire State Manufacturing Survey for September was better than expected, checking in at 17.0 (Briefing.com consensus 5.9) versus 3.7 in August.
Import prices increased 0.9% in August; and prices, excluding oil, increased 0.7%. Export prices increased 0.5% in August; and prices, excluding agriculture, increased 0.8%.

Looking ahead to Wednesday, investors will receive Retail Sales for August, the FOMC Rate Decision, the NAHB Housing Market Index for September, Business Inventories for August, Net Lon-Term TIC Flows for July, and the weekly MBA Mortgage Applications Index.

Nasdaq Composite +24.7% YTD
S&P 500 +5.3% YTD
Dow Jones Industrial Average -1.9% YTD
Russell 2000 -7.8% YTD

Market Snapshot
Dow 27985.60 +2.27 (0.01%)
Nasdaq 11190.33 +133.67 (1.21%)
SP 500 3401.20 +17.66 (0.52%)
10-yr Note 0/32 0.676
NYSE Adv 1626 Dec 1352 Vol 844.0 mln
Nasdaq Adv 1810 Dec 1521 Vol 3.7 bln

[ReturntoSender]

Mega-caps weigh down market, Fed stays accommodative
16-Sep-20 16:25 ET
Dow +36.78 at 28022.38, Nasdaq -139.85 at 11050.48, S&P -15.71 at 3385.49

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

[BRIEFING.COM] The S&P 500 declined 0.5% on Wednesday due to weakness in the mega-cap stocks, while the Fed signaled rates will remain near zero through 2023 as inflation is expected to remain muted. The Nasdaq Composite fell 1.3%, while the Dow Jones Industrial Average (+0.1%) and Russell 2000 (+0.9%) finished higher.

The Fed left the fed funds rate unchanged, and the policy statement noted they'll remain there until the economy achieves maximum employment and an average 2.0% inflation rate is reached for some time. Note, two FOMC members preferred slightly different stances on how inflation guidance should be communicated. The central bank also raised its GDP forecast for 2020 but lowered its projections for 2021 and 2022.

The S&P 500 rose to session highs (+0.8%) following the statement, but then turned negative during Fed Chair Powell's press conference. Some criticized the Fed chair for not clearly explaining his thinking on future monetary policy, but one shouldn't attribute the intraday weakness to Mr. Powell.

Mega-cap stocks were weak all day, and their weakness was manifested in the declines in the S&P 500 information technology (-1.6%), communication services (-1.2%), and consumer discretionary (-1.0%) sectors. The cyclical energy (+4.1%), financials (+1.1%), and industrials (+1.0%) sectors had strong outings.

Shares of Facebook (FB 263.52, -8.90, -3.3%) fell 3% amid reports that the FTC is preparing a possible antitrust suit against the company. Adobe (ADBE 476.00, -21.67, -4.4%) fell 4% despite beating top and bottom-line quarterly estimates.

In other corporate news, FedEx (FDX 250.30, +13.63, +5.8%) provided better-than-expected earnings results, Snowflake (SNOW 253.93, +133.93, +111.6%) surged 100% in the largest software IPO in history, and General Electric (GE 6.75, +0.65, +10.7%) predicted it will be cash-flow positive in the second-half of this year.

Separately, White House Chief of Staff Meadows, who is a lead negotiator in the coronavirus relief talks, sounded uncharacteristically optimistic in a CNBC interview regarding the prospects for another round of fiscal stimulus. President Trump tweeted that Republicans should "go for the much higher numbers" on stimulus.

U.S. Treasuries gave up their modest gains following the release of the FOMC policy statement. The 2-yr yield increased one basis point to 0.14%, and the 10-yr yield increased one basis point to 0.69%. The U.S. Dollar Index increased 0.1% to 93.17. WTI crude futures rose 4.9%, or $1.87, to $40.17/bbl.

Reviewing Wednesday's economic data:

Total sales were up 0.6% m/m in August (Briefing.com consensus 1.0%), following a downwardly revised 0.9% increase (from 1.2%) in July, and were up 2.6% yr/yr. Excluding autos, sales were up 0.7% (Briefing.com consensus 1.0%), following a downwardly revised 1.3% increase (from 1.9%) in July, and were up 2.1% yr/yr.
The key takeaway from the report is that it points to some slowing in retail spending activity following the expiration of enhanced unemployment benefits, but, importantly, it didn't reveal a spending contraction as increases were seen in many categories.
The NAHB Housing Market Index increased to a new all-time high of 83 in September (Briefing.com consensus 78) following the previous all-time high of 78 in August.
Business inventories increased 0.1% in July following a 1.1% decline in June.

Looking ahead, investors will receive weekly Initial and Continuing claims, Housing Starts and Building Permits for August, and the Philadelphia Fed Index for September on Thursday.

Nasdaq Composite +23.2% YTD
S&P 500 +4.8% YTD
Dow Jones Industrial Average -1.8% YTD
Russell 2000 -7.0% YTD

[ReturntoSender]

Down day for market, but cyclical sectors outperform
17-Sep-20 16:20 ET

Dow -130.40 at 27891.98, Nasdaq -140.19 at 10910.29, S&P -28.48 at 3357.01

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

[BRIEFING.COM] The S&P 500 declined 0.8% on Thursday, as relative weakness in the mega-caps overshadowed signs of life in more cyclical areas of the market. The Nasdaq Composite declined 1.3%, the Dow Jones Industrial Average declined 0.5%, and the Russell 2000 declined 0.6%.

The communication services (-1.8%), consumer discretionary (-1.6%), and information technology (-0.8%) sectors represented the mega-cap losses, but the real estate sector (-2.2%) declined the most. The cyclical materials (+0.8%), industrials (+0.2%), and energy (+0.2%) sectors outperformed all day and closed higher.

A 10% decline in Snowflake (SNOW 227.54, -26.39, -10.4%) following yesterday's remarkable IPO might have stirred valuation concerns, or profit-taking activity, in many of the mega-cap/growth/momentum stocks. Apple (AAPL 110.34, -1.79) fell 1.6% but it was down as much as 3.1% intraday.

Conversely, factors that contributed to the outperformance of cyclical and value stocks included an inclination to buy cheaper stocks amid the mega-cap weakness, higher oil prices ($40.99, +0.82, +2.0%) that favored energy stocks, Nucor (NUE 48.97, +1.41, +3.0%) issuing upside Q3 EPS guidance, and follow-through buying interest in General Electric (GE 7.05, +0.30, +4.4%) after an 11% gain yesterday.

Notably, the 50-day moving average (3340) in the S&P 500 proved to be an area of technical support. The benchmark index traded slightly below the key technical level for parts of the day but closed above it, which was good for sentiment reasons. For what it's worth, each of the major indices also closed off session lows.

In Washington, House Speaker Pelosi (D-CA) repeated that a stimulus deal must be at least $2.2 trillion, throwing cold water on a $1.5 trillion relief bill proposed by centrist lawmakers that President Trump said he liked.

U.S. Treasuries finished the session little changed. The 2-yr yield decreased one basis point to 0.13%, and the 10-yr yield was flat at 0.68%. The U.S. Dollar Index declined 0.4% to 92.89.

Reviewing Thursday's economic data:

Initial claims for the week ending September 12 decreased by 33,000 to 860,000 (Briefing.com consensus 830,000). Continuing claims for the week ending September 5 decreased by 916,000 to 12.628 million.
The key takeaway from the report is that initial claims remain excessively high six months after the employment crash of the COVID pandemic. In the same week a year ago, initial claims were 211,000.
Housing Starts for August declined 5.1% m/m to a seasonally adjusted annual rate of 1.416 million units (Briefing.com consensus 1.489 million) but were up 2.8% yr/yr. Building Permits declined 0.9% m/m to 1.470 million (Briefing.com consensus 1.520 million) and were down 0.1% yr/yr.
The key takeaway from the report is that there was continued strength in single-family units, with starts up 4.1% m/m (+12.1% yr/yr) and permits up 6.0% m/m (+15.6% yr/yr) amid strong demand.
The Philadelphia Fed Index decreased to 15.0 in September (Briefing.com consensus 13.0) from 17.2 in August.

Looking ahead, investors will receive the preliminary University of Michigan Index of Consumer Sentiment for September, the Conference Board's Leading Economic Index for August, and the Q2 Current Account Balance on Friday.

Nasdaq Composite +21.6% YTD
S&P 500 +3.9% YTD
Dow Jones Industrial Average -2.2% YTD
Russell 2000 -7.5% YTD

[ReturntoSender]

Stocks end week on risk-averse note
18-Sep-20 16:15 ET
Dow -244.56 at 27647.42, Nasdaq -116.99 at 10793.30, S&P -37.54 at 3319.47

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

[BRIEFING.COM] The S&P 500 fell 1.1% on this quadruple-witching expiration Friday, as losses spread out from technology stocks to all 11 S&P 500 sectors. The Nasdaq Composite also declined 1.1%, followed by the Dow Jones Industrial Average (-0.9%) and Russell 2000 (-0.4%).

At first, losses were concentrated in the mega-cap/growth/momentum stocks in a continuation trade from the past few sessions. Options-expiration related activity was a likely factor that exacerbated the downwards momentum, but the most obvious factor was the U.S. prohibiting downloads of TikTok and WeChat after Sunday.

Many viewed the download ban as a negotiation tactic to get a revised deal between Oracle (ORCL 59.75, -0.43, -0.7%) and TikTok that better protects U.S. data. Tencent's WeChat called the decision "unfortunate" and said it will continue to discuss solutions with the U.S., but there were still concerns about potential retaliation against U.S. technology companies.

The information technology sector (-1.7%) exerted influential weakness as a result, and an early rotational trade into cyclical/value stocks lost some stream as tech stocks accelerated losses. The materials (-1.7%), utilities (-1.8%), and real estate (-2.0%) sectors were other laggards, while the health care (-0.1%) and financials (-0.2%) sectors outperformed on a relative basis.

The market did close off session lows, thanks to a buy-the-dip mindset in the afternoon, but it's worth noting that the S&P 500 closed below its 50-day moving average (3343).

Tesla (TSLA 442.15, +18.72, +4.4%) was a notable exception to the negative trend, rising 4.4% after Piper Sandler raised its price target on the stock to $515 from $480 ahead of its Battery Day event next week.

U.S. Treasuries finished little changed in a tight-ranged session. The 2-yr yield remained unchanged at 0.13%, and the 10-yr yield increased one basis point to 0.69%. The U.S. Dollar Index was flat at 92.95. WTI crude futures increased 0.2% to $41.09/bbl, bringing its weekly gain to 10%.

Reviewing Friday's economic data:

The final University of Michigan Index of Consumer Sentiment for August ticked up to 74.1 (Briefing.com consensus 72.8) from the preliminary reading of 72.8. The final reading for July was 72.5.
The key takeaway from the report is that consumer sentiment has been slow to rebound and that the incremental improvement seen has been based simply on the view that things couldn't get worse than they were at the depths of the shutdown period.
The Conference Board's Leading Economic Index (LEI) increased 1.2% in August (Briefing.com consensus 1.4%) following an upwardly revised 2.0% increase (from 1.4%) in July. The increase for August represents the fourth straight month the index has been positive after declining 7.4% in March and 6.3% in April.
The key takeaway from the report is the understanding that, despite four straight increases, more repair work is necessary. At 106.5, the index is still 4.7% below the level seen in February.
The current account deficit for the second quarter totaled $170.5 billion (Briefing.com consensus -$146.3 billion). The first quarter deficit was revised to $111.5 billion from $104.2 billion.

Investors will not receive any notable economic data on Monday.

Nasdaq Composite +20.3% YTD
S&P 500 +2.8% YTD
Dow Jones Industrial Average -3.1% YTD
Russell 2000 -7.9% YTD

Market Snapshot
Dow 27647.42 -244.56 (-0.88%)
Nasdaq 10793.30 -116.99 (-1.07%)
SP 500 3319.47 -37.54 (-1.12%)
10-yr Note 0/32 0.694
NYSE Adv 1019 Dec 1917 Vol 3.2 bln
Nasdaq Adv 1594 Dec 1649 Vol 5.7 bln

Industry Watch
Strong: Financials, Health Care
Weak: Information Technology, Real Estate, Utilities, Materials

Moving the Market

-- Stocks end week on lower note, broad-based losses

-- Influential weakness in the tech sector amid TikTok download ban, options-expiration activity, valuation concerns

-- Financial stocks outperformed on a relative basis

[ReturntoSender]

Cyclical stocks lead market lower, but tech stocks limit decline
21-Sep-20 16:15 ET
Dow -509.72 at 27137.70, Nasdaq -14.48 at 10778.82, S&P -38.41 at 3281.06

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

[BRIEFING.COM] The S&P 500 declined 1.2% on Monday, although it was down as much as 2.7% intraday as increased uncertainty on the political, trade, and health fronts fueled economic growth concerns. The Nasdaq Composite declined just 0.1% amid relative strength in technology stocks, while the Dow Jones Industrial Average (-1.8%) and Russell 2000 (-3.4%) underperformed.

Political uncertainty was a big theme following the passing of Supreme Court Justice Ginsburg, as many suggested lawmakers would focus less on stimulus talks and more on a new appointee. Trade uncertainty was based on China updating its trade blacklist without naming any affected companies. Health uncertainty stemmed from the rising COVID-19 cases in Europe, raising the specter of shutdowns.

The ensuing weakness disproportionately affected the cyclical sectors -- industrials (-3.4%), materials (-3.4%), and energy (-3.3%) -- but the information technology sector (+0.8%) did partially benefit from the growth concerns. The tech sector, led by Apple (AAPL 110.08, +3.24, +3.0%), was the only sector to close higher on Monday.

Notably, at its low today, the S&P 500 was down 10.0% from the record high it set earlier this month -- a decline often described as a "correction." This might have been the green light for many investors and traders to buy the dip in the last hour of trading.

Within the financials sector (-2.5%), banks were under pressure amid reports that several global institutions, including JPMorgan Chase (JPM 95.31, -3.04, -3.1%) and Deutsche Bank (DB 8.34, -0.75, -8.3%), moved more than $2 trillion in illicit funds for a period of nearly 20 years despite red flags.

Separately, shares of Oracle (ORCL 60.82, +1.07, +1.8%) and Walmart (WMT 137.07, +1.78, +1.3%) gained more than 1% on expectations that a TikTok deal will be approved. Microsoft (MSFT 202.54, +2.15, +1.1%) agreed to acquire ZeniMax Media for $7.5 billion in cash. Illumina (ILMN 270.13, -25.37, -8.6%) agreed to acquire Grail for $8 billion in cash and stock.

U.S. Treasuries finished higher on the longer-end of the curve. The 2-yr yield increased one basis point to 0.14%, while the 10-yr yield declined two basis points to 0.67%. The U.S. Dollar Index rose 0.7% to 93.56. WTI crude futures fell 3.9%, or $1.63, to $39.69/bbl.

Investors did not receive any economic on Monday. Looking ahead, the Existing Home Sales report for August will be released on Tuesday.

Nasdaq Composite +20.1% YTD
S&P 500 +1.6% YTD
Dow Jones Industrial Average -4.9% YTD
Russell 2000 -11.0% YTD

Market Snapshot
Dow 27137.70 -509.72 (-1.84%)
Nasdaq 10778.82 -14.48 (-0.13%)
SP 500 3281.06 -38.41 (-1.16%)
10-yr Note +3/32 0.672
NYSE Adv 439 Dec 2556 Vol 1.2 bln
Nasdaq Adv 639 Dec 2666 Vol 3.8 bln

Industry Watch
Strong: Information Technology
Weak: Energy, Materials, Industrials, Financials, Real Estate

[ReturntoSender]

Mega-caps help market snap losing streak
22-Sep-20 16:20 ET
Dow +140.48 at 27278.18, Nasdaq +184.84 at 10963.66, S&P +34.51 at 3315.57

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

[BRIEFING.COM] The S&P 500 gained 1.1% on Tuesday, snapping a four-session losing streak alongside the Nasdaq Composite (+1.7%), which got an added boost from the mega-caps. The Dow Jones Industrial Average (+0.5%) and Russell 2000 (+0.8%) followed behind.

Amazon (AMZN 3128.99, +168.52) set the mega-cap pace with a 5.7% gain after the stock was upgraded to Outperform from Mkt Perform at Bernstein, although Apple (AAPL 111.81, +1.73, +1.6%) appeared to be the more influential mega-cap today. AAPL led the the S&P 500 into negative territory in the morning, but as the stock turned around on no news, so did the broad market.

From a sector perspective, the consumer discretionary sector (+3.0%) set the winning pace on the backs of Amazon and Nike (NKE 116.87, +3.50, +3.1%), which rallied ahead of its earnings report after the close. The communication services (+1.9%), information technology (+1.7%), real estate (+1.3%), and industrial (+1.0%) sectors followed suit.

Conversely, the energy (-1.0%), financials (-0.8%), and health care (-0.2%) sectors closed lower, limiting today's market rebound.

Tesla (TSLA 424.23, -25.16, -5.6%) was another exception after CEO Elon Musk tempered expectations for its Battery Day event today. Mr. Musk said yesterday that new products will not reach serious high-volume production until 2022.

In other developments, Fed Chair Powell and Treasury Secretary Mnuchin testified on the CARES Act before the House Financial Services Committee, and existing home sales increased 2.4% m/m in August to a seasonally adjusted annual rate of 6.00 million, in-line with the Briefing.com consensus estimate.

Market reaction was muted to both of these events, but it's worth noting that Mr. Powell reiterated the Fed will do whatever it takes to support the economy for as long as is needed.

U.S. Treasuries had another quiet session, finishing with small gains. The 2-yr yield declined one basis point to 0.13%, and the 10-yr yield declined one basis point to 0.66%. The U.S. Dollar Index gained 0.3% to 93.94. WTI crude futures gained 0.6%, or $0.25, to $39.55/bbl.

Reviewing Tuesday's economic data:

Existing home sales increased 2.4% m/m in August to a seasonally adjusted annual rate of 6.00 million, in-line with the Briefing.com consensus estimate. August marked the third consecutive month of positive sales gains. Total sales in August were up 10.5% from a year ago.
The key takeaway from the report is that it reflects robust demand for existing homes. That is constraining supply even further, which is going to be a pressure point that feeds higher prices and bolsters the prospects for new home sales.

Looking ahead, investors will receive the FHFA Housing Price Index for September and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +22.2% YTD
S&P 500 +2.6% YTD
Dow Jones Industrial Average -4.4% YTD
Russell 2000 -10.3% YTD

Market Snapshot
Dow 27278.18 +140.48 (0.52%)
Nasdaq 10963.66 +184.84 (1.71%)
SP 500 3315.57 +34.51 (1.05%)
10-yr Note 0/32 0.672
NYSE Adv 1671 Dec 1292 Vol 947.3 mln
Nasdaq Adv 1698 Dec 1647 Vol 3.5 bln

Industry Watch
Strong: Consumer Discretionary, Communication Services, Information Technology
Weak: Energy, Financials, Health Care

Moving the Market

-- Mega-caps outperformed, led market rebound

-- S&P 500 and Nasdaq snap four-session losing streaks

-- Fed Chair Powell and Treasury Secretary Mnuchin testified on the CARES Act

[ReturntoSender]

Stocks eke out gains in uneven session
24-Sep-20 16:15 ET
Dow +52.31 at 26805.44, Nasdaq +39.28 at 10672.29, S&P +9.67 at 3246.59

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

[BRIEFING.COM] The stock market oscillated between gains and losses on Thursday, with the S&P 500 ultimately closing higher by 0.3%. The Nasdaq Composite increased 0.4%, the Dow Jones Industrial Average increased 0.2%, and the Russell 2000 finished flat.

The S&P 500 started the day lower by 0.9%, extending the month's pullback and briefly turning negative for the year, before the dip buyers stepped in. By the afternoon, the benchmark index was up 1.2% but sellers regained control on no specific news. The inability to sustain another rebound was disappointing for the bulls but not necessarily bearish.

Ten of the 11 S&P 500 sectors finished in positive territory, even as declining issues edged out advancing issues at both the NYSE and Nasdaq. The utilities (+1.2%), consumer staples (+0.8%), and information technology (+0.6%) sectors outperformed in a defensive-minded trade that excluded the health care sector (-0.5%).

Generally, investors remained nervous about election volatility, the prospects for another fiscal relief bill, the trajectory of the coronavirus, and U.S.-China relations. On stimulus, House Speaker Pelosi (D-CA) will reportedly introduce a $2.4 trillion relief bill, but it's unlikely to have the support of Republicans.

Regarding the economy, the labor market remained in poor standing as weekly jobless claims increased by 4,000 to 870,000 (Briefing.com consensus 825,000). New home sales, however, rose 4.8% m/m in August to a seasonally adjusted annual rate of 1.011 million (Briefing.com consensus 875,000) -- its highest rate since November 2006.

Interestingly, a pair of analysts turned bullish on some battered financial stocks. Goldman Sachs (GS 195.11, +8.99, +4.8%) was upgraded to Buy from Hold at UBS, and Wells Fargo (WFC 23.32, +0.49, +2.2%) was added to the Fresh Pick List at Robert W. Baird.

U.S. Treasuries traded within another narrow range and closed little changed. The 2-yr yield was unchanged at 0.13%, and the 10-yr yield decreased one basis point to 0.67%. The U.S. Dollar Index declined 0.1% to 94.33. WTI crude futures gained 0.9%, or $0.37, to $40.31/bbl.

Reviewing Thursday's economic data:

Jobless claims for the week ending September 19 increased by 4,000 to 870,000 (Briefing.com consensus 825,000) while continuing claims for the week ending September 12 decreased by 167,000 to 12.580 million.
The key takeaway from the report is that initial jobless claims remain at stunningly high levels that point to the ongoing challenges U.S. businesses face getting back on a pre-pandemic track. In the same period a year ago, initial jobless claims were 215,000.
New home sales in August did something they haven't done since November 2006 -- exceed a seasonally adjusted annual rate of 1.0 million. Specifically, they rose 4.8% m/m to 1.011 million (Briefing.com consensus 875,000) and were up 43.2% yr/yr.
The key takeaway from the report is that it reflects strong demand for new homes at more affordable price points, as the South region, which is the largest homebuilding region and features lower average prices, saw sales increase 13.4% m/m.

Looking ahead, investors will receive Durable Goods Orders for August on Friday.

Nasdaq Composite +18.9% YTD
S&P 500 +0.5% YTD
Dow Jones Industrial Average -6.0% YTD
Russell 2000 -13.0% YTD

Market Snapshot
Dow 26805.44 +52.31 (0.20%)
Nasdaq 10672.29 +39.28 (0.37%)
SP 500 3246.59 +9.67 (0.30%)
10-yr Note +1/32 0.664
NYSE Adv 1439 Dec 1513 Vol 928.0 mln
Nasdaq Adv 1356 Dec 1928 Vol 4.0 bln

Industry Watch
Strong: Information Technology, Real Estate, Communication Services, Consumer Discretionary
Weak: Energy, Health Care, Industrials

Moving the Market

-- Stocks attempt a rebound

-- Mega-caps and semiconductor stocks show relative strength

-- Weekly initial claims increased by 4,000 to 870,000 (Briefing.com consensus 825,000)

[ReturntoSender]

S&P 500 ends negative week on high note
25-Sep-20 16:15 ET
Dow +358.52 at 27163.96, Nasdaq +241.30 at 10913.59, S&P +51.87 at 3298.46

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

[BRIEFING.COM] The S&P 500 gained 1.6% on Friday in a technology-led advance, ending a negative week on a high note. The Nasdaq Composite rose 2.3%, the Dow Jones Industrial Average rose 1.3%, and the Russell 2000 rose 1.6%.

The session started mixed, little changed, choppy, and without leadership amid a host of ongoing uncertainties in the market. Those uncertainties, some of which pertain to politics and the economy, weren't cleared up today due to few macro developments, but it appeared the market wasn't going to get dismayed by the unknown.

On no specific news, Apple (AAPL 112.29, +4.07, +3.8%), Microsoft (MSFT 207.82, +4.63, +2.3%), and NVIDIA (NVDA 514.95, +21.03, +4.3%) -- to name few technology mega-caps -- assumed their old leadership roles. The gains broadened out to ten of the 11 S&P 500 sectors by the close.

The top-weighted information technology sector (+2.4%) finished atop the standings with a 2.4% gain, followed by real estate (+2.0%), health care (+1.7%), and consumer discretionary (+1.6%). The energy sector (-0.1%) briefly turned positive late in the day but was unable to close positive, reflecting a lack of investor confidence in the space.

The cruise line industry, meanwhile, could be on the verge of an inflection point, according to Barclays. The firm upgraded Royal Caribbean (RCL 64.59, +4.62, +7.7%), Carnival (CCL 15.07, +1.33, +9.7%), and Norwegian (NCLH 16.63, +2.00, +13.7%) to Overweight from Equal Weight on a favorable risk/reward profile.

Costco (COST 342.58, -4.42, -1.3%) was a notable exception today despite the company beating earnings estimates and reporting in-line revenue and comparable sales results. On a related note, Telsey Advisory Group raised its price target on the stock to $390 from $385.

The U.S. Treasury market remained uneventful. The 2-yr yield finished flat at 0.13%, and the 10-yr yield declined one basis point to 0.66%. The U.S. Dollar Index advanced 0.3% to 94.59. WTI crude futures shed 0.2%, or $0.09, to settle at $40.22/bbl.

Reviewing Friday's economic data:

Durable goods orders increased 0.4% m/m in August (Briefing.com consensus +0.9%) following an upwardly revised 11.7% increase (from 11.2%) in July. Excluding transportation, orders were also up 0.4% (Briefing.com consensus 1.0%) following an upwardly revised 3.2% increase (from 2.4%) in July.
The key takeaway from the report is that order increases were seen across most categories, as manufacturing needs continued to recover from their pandemic depression, yet total orders are still down 11.3% yr/yr (down 3.0%, ex-transportation).

Looking ahead, the Conference Board's Consumer Confidence Index for September, the S&P Case-Shiller Home Price Index for July, and the Advance August readings for Intl Trade in Goods, Retail Inventories, and Wholesale Inventories will be released on Monday.

Nasdaq Composite +21.6% YTD
S&P 500 +2.1% YTD
Dow Jones Industrial Average -4.8% YTD
Russell 2000 -11.6% YTD

Market Snapshot
Dow 27163.96 +358.52 (1.34%)
Nasdaq 10913.59 +241.30 (2.26%)
SP 500 3298.46 +51.87 (1.60%)
10-yr Note +1/32 0.658
NYSE Adv 2138 Dec 831 Vol 800.0 mln
Nasdaq Adv 2381 Dec 934 Vol 3.7 bln

Industry Watch
Strong: Information Technology, Real Estate, Health Care, Industrials
Weak: Energy

Moving the Market

-- S&P 500 ends negative week on high note

-- Mega-caps and technology stocks resumed leadership

-- Investors looked past the market uncertainty

[ReturntoSender]

Stocks rise in broad-based advance
28-Sep-20 16:20 ET
Dow +410.10 at 27574.06, Nasdaq +203.96 at 11117.55, S&P +53.14 at 3351.60

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

[BRIEFING.COM] The S&P 500 rose 1.6% on Monday in a broad-based advance. The small-cap Russell 2000 (+2.4%) and S&P MidCap 400 (+2.4%) outperformed with 2.4% gains, followed by the Nasdaq Composite (+1.9%) and Dow Jones Industrial Average (+1.5%).

All 11 sectors within the S&P 500 ended the day in positive territory, with energy (+2.3%), financials (+2.3%), consumer discretionary (+2.2%), and information technology (+1.9%) finishing atop the standings. The utilities sector (+0.3%) was today's laggard.

Value/cyclical stocks had a nice advantage for most of the day, until the technology stocks narrowed the gap later in the session. Apple (AAPL 114.96, +2.68, +2.4%), for instance, finished higher by 2.4% after being up just 0.5% in the morning.

Analyst upgrades, M&A activity, and another positive vaccine update from Johnson & Johnson (JNJ 147.11, +1.45, +1.0%) were corporate-related drivers of sentiment for many cyclical stocks. Other positive factors were House Speaker Pelosi saying a stimulus bill is still possible and quarter-end rebalancing, which favored the financial and energy sectors.

A separate viewpoint was rooted more in technical observation than news. The lack of volatility, and market-moving events, suggested today was a momentum trade from Friday, with performance aided by a recognition the S&P 500 and Dow had declined for four straight weeks.

Notably, the S&P 500 closed below its 50-day moving average (3353) despite spending a healthy portion of the afternoon above the key technical level.

U.S. Treasuries were stagnant during today's stock market gains. The 2-yr yield increased one basis point to 0.14%, and the 10-yr yield was unchanged at 0.66%. The U.S. Dollar Index declined 0.4% to 94.27. WTI crude futures rose 0.7%, or $0.29, to $40.54/bbl.

Investors did not receive any economic data on Monday. The Conference Board's Consumer Confidence Index for September, the S&P Case-Shiller Home Price Index for July, and the Advance August reports for Intl Trade in Goods, Retail Inventories, and Wholesale Inventories will be released on Tuesday.

Nasdaq Composite +23.9% YTD
S&P 500 +3.7% YTD
Dow Jones Industrial Average -3.3% YTD
Russell 2000 -9.5% YTD

Market Snapshot
Dow 27574.06 +410.10 (1.51%)
Nasdaq 11117.55 +203.96 (1.87%)
SP 500 3351.60 +53.14 (1.61%)
10-yr Note 0/32 0.663
NYSE Adv 2546 Dec 467 Vol 845.5 mln
Nasdaq Adv 2520 Dec 811 Vol 3.5 bln

Industry Watch
Strong: Energy, Financials, Information Technology, Consumer Discretionary
Weak: Utilities

Moving the Market

-- Broad-based gains to start the week

-- Analyst upgrades, M&A activity, quarter-end rebalancing, and vaccine news help lift cyclical stocks

-- General trading momentum

WTI crude stays above $40 per barrel
28-Sep-20 15:25 ET
Dow +460.60 at 27624.56, Nasdaq +200.23 at 11113.82, S&P +58.14 at 3356.60

[BRIEFING.COM] The S&P 500 is up 1.7% in a relatively benign advance. Unlike last week, there hasn't been that much volatility today.

One last look at the S&P 500 sectors shows all 11 sectors still trading higher. Energy (+2.8%), financials (+2.6%), and consumer discretionary (+2.3%) remain in the lead, while the utilities sector (+0.6%) continues to lag. The Philadelphia Semiconductor Index also shows strength with a 2.7% gain.

WTI crude futures settled higher by 0.7%, or $0.29, to $40.54/bbl.

[ReturntoSender]

Quarter ends on positive note
30-Sep-20 16:20 ET
Dow +329.04 at 27771.70, Nasdaq +82.26 at 11167.53, S&P +27.53 at 3363.00

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

[BRIEFING.COM] The S&P 500 gained 0.8% on Wednesday in a busy news day, wrapping up a negative month and a positive third quarter. The Dow Jones Industrial Average outperformed with a 1.2% gain, the Russell 2000 underperformed with a 0.2% gain, and the Nasdaq Composite (+0.7%) performed comparably to the benchmark index.

The session opened modestly higher, as the futures market shook off any residential weakness that followed the first presidential debate. Cyclical sectors were leaders throughout the morning and early afternoon, largely due to better-than-expected economic data and renewed stimulus optimism.

The stimulus optimism was stirred by hopeful-sounding commentary from House Speaker Pelosi, White House Chief of Staff Meadows, and Treasury Secretary Mnuchin, but the market later got upset on news that Senate Majority Leader McConnell said both sides remain far apart. Ms. Pelosi and Mr. Mnuchin met for 90 minutes but did not agree to a deal.

In about one hour of trading, the S&P 500 cut its gain to 0.2% from 1.7% with the industrials (-0.3%) and energy (-0.2%) sectors slipping into negative territory. Buyers stepped in, though, and helped the S&P 500 close above its 50-day moving average (3357), which was an important observation for traders.

The health care (+1.7%), consumer staples (+1.2%), financials (+1.2%), and information technology (+0.9%) sectors were among today's biggest winners.

Regarding today's data, the ADP Employment Change Report for September, the Chicago PMI for September, and the Pending Home Sales report for August each came in stronger than expected. While not typically market-moving events by themselves, the batch of data did finally contribute to some movement in U.S. Treasuries (to the downside).

The 2-yr yield increased two basis points to 0.13%, and the 10-yr yield increased three basis points to 0.68%. The U.S. Dollar Index declined 0.1% to 93.84. WTI crude futures rose 2.6%, or $1.01, to $40.21/bbl.

In key corporate news, Walt Disney (DIS 124.13, -1.27, -1.0%) announced plans to lay off 28,000 employees due to the coronavirus still negatively impacting its business. Micron (MU 46.96, -3.75, -7.4%) issued downside EPS guidance for its fiscal first quarter.

Reviewing Wednesday's economic data:

The third estimate for Q2 GDP produced a slight upward revision to -31.4% q/q annualized (Briefing.com consensus -31.7%) from the second estimate of -31.7%. The GDP Price Deflator was also revised higher to -1.8% (Briefing.com consensus -2.0%) from -2.0%.
The key takeaway from the report is that it won't matter to the market given its dated nature, but it still matters in the sense that, despite the slight revision, the second quarter of 2020 marked the biggest downturn for the U.S. economy on record.
The ADP Employment Change report for September estimated 749,000 jobs were added to private-sector payrolls (Briefing.com consensus 600,000). The August reading was revised higher to 481,000 from 428,000.
The Chicago PMI for September surged above expectations to 62.4% (Briefing.com consensus 53.0%) from 51.2% in August.
Pending home sales jumped 8.8% in August (Briefing.com consensus 3.2%) following a 5.9% increase in July.
The weekly MBA Mortgage Applications declined 4.8% following a 6.8% increase in the prior week.

Looking ahead, investors will receive the ISM Manufacturing Index for September, the Personal Income and Spending report for August, the weekly Initial and Continuing Claims report, and Construction Spending for August on Thursday.

Nasdaq Composite +24.5% YTD
S&P 500 +4.1% YTD
Dow Jones Industrial Average -2.7% YTD
Russell 2000 -9.6% YTD

Market Snapshot
Dow 27771.70 +329.04 (1.20%)
Nasdaq 11167.53 +82.26 (0.74%)
SP 500 3363.00 +27.53 (0.83%)
10-yr Note -3/32 0.682
NYSE Adv 1546 Dec 1422 Vol 1.3 bln
Nasdaq Adv 1580 Dec 1714 Vol 4.2 bln

Industry Watch
Strong: Health Care, Consumer Staples, Financials
Weak: Industrials, Energy

Moving the Market

-- Stocks close mostly higher, wrap up negative month and positive quarter

-- Back-and-forth on stimulus prospects

-- Better-than-expected economic data

No deal on stimulus but talks will continue -- CNBC
30-Sep-20 15:25 ET
Dow +201.33 at 27643.99, Nasdaq +36.24 at 11121.51, S&P +13.02 at 3348.49

[BRIEFING.COM] The S&P 500 is trading near session lows with a 0.3% gain and back below its 50-day moving average (3357).

According to CNBC, House Speaker Pelosi and Treasury Secretary Mnuchin failed to reach an agreement on a stimulus deal, but talks will continue. Both met for 90 minutes, and although the market wasn't expecting a deal today, the negative-sounding headline has fueled the recent downturn.

WTI crude futures settled higher by 2.6%, or $1.01, to $40.21/bbl.

[ReturntoSender]

Tech stocks lift market amid stimulus bill uncertainty
01-Oct-20 16:15 ET
Dow +35.20 at 27806.90, Nasdaq +159.00 at 11326.53, S&P +17.80 at 3380.80

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

[BRIEFING.COM] The S&P 500 gained 0.5% on Thursday, as strength in technology stocks outweighed losses in cyclical stocks amid stimulus bill uncertainty. The tech-sensitive Nasdaq Composite rose 1.4%, and the small-cap Russell 2000 rose 1.6%. The Dow Jones Industrial Average increased just 0.1%.

The session highs for the S&P 500 (+1.0%) came shortly after the open on reports that suggested Treasury Secretary Mnuchin and House Speaker Pelosi were narrowing their stimulus disagreements. Follow-up reports, however, indicated that distance remains between both sides. The benchmark index wavered with smaller gains for the rest of the day.

Technology stocks weren't hit by the stimulus headlines, as investors presumably bid up shares to find growth in case there is no stimulus or to benefit from growth if there is stimulus. Many of these stocks were found in the consumer discretionary (+1.5%), communication services (+1.4%), and information technology (+1.0%) sectors.

Amazon (AMZN 3221.26, +72.53, +2.3%) outperformed, aided by Pivotal Research Group raising its AMZN price target to a Street-high $4500. The Philadelphia Semiconductor Index (+2.1%) got an added boost from STMicroelectronics (STM 33.21, +2.52, +8.2%) after it issued upside revenue guidance.

The stimulus uncertainty, however, negatively affected the cyclical stocks on worries that extended time without fiscal relief could slow down a recovery. The energy sector dropped 3.1% amid reeling oil prices ($38.71/bbl, -1.50, -3.7%), followed by materials (-1.4%) and industrials (-0.3%). The health care sector (-0.5%) also closed lower.

In addition, today's economic data didn't instill confidence in these sectors. Weekly jobless claims remained elevated at 837,000 (Briefing.com consensus 850,000), personal income declined 2.7% m/m in August (Briefing.com consensus -2.0%), and the ISM Manufacturing Index for September decelerated to 55.4% (Briefing.com consensus 56.0%) from 56.0% in August.

For what it's worth, the S&P 500 found support at its ascending 50-day moving average (3359) after it briefly dipped into negative territory. It closed above the technical level for the second straight day.

U.S. Treasuries finished little changed, with longer-dated maturities reclaiming their early losses. The 2-yr yield was flat at 0.13%, and the 10-yr yield was flat at 0.68%. The U.S. Dollar Index declined 0.2% to 93.70.

Reviewing Thursday's economic data, which included several key reports on unemployment, manufacturing, and inflation:

The ISM Manufacturing Index for September checked in at 55.4% (Briefing.com consensus 56.0%) versus 56.0% in August.
The key takeaway from the report is that it underscores the view that the manufacturing sector continues to recover after its sharp downturn in the April-May period when the index was running at 41.5% and 43.1%, respectively.
Initial claims for the week ending September 26 declined by 36,000 to 837,000 (Briefing.com consensus 850,000) while continuing claims for the week ending September 19 decreased by 980,000 to 11.767 million.
The key takeaway from the report remains the same: initial claims continue to run at excessively high levels that speak to the ongoing challenges businesses face getting back to pre-pandemic levels.
Personal income declined 2.7% m/m in August (Briefing.com consensus -2.0%) following an upwardly revised 0.5% increase (from 0.4%) in July. Personal spending increased 1.0% (Briefing.com consensus 0.6%) following a downwardly revised 1.5% increase (from 1.9%) in July. The PCE Price Index and Core PCE Price Index were both up 0.3% m/m, as expected. That left the year-over-year increases for the Fed's preferred inflation gauge at 1.4% and 1.6%, respectively.
The expiration of enhanced unemployment benefits helps explain the big drop in personal income, yet the key takeaway from the report is that consumers appear to be spending more out of savings now, evidenced by the increase in spending and the concurrent drop in the personal savings rate (to 14.1% from 17.7%).
Total construction spending increased 1.4% m/m in August (Briefing.com consensus +0.8%) on the heels of an upwardly revised 0.7% increase (from +0.1%) in July. The key takeaway from the report is that total construction spending, despite the economic challenges posed by the coronavirus, was up 2.5% year-over-year.

Looking ahead to Friday, investors will receive the Employment Situation Report for September, the revised University of Michigan Index of Consumer Sentiment for September, Factory Orders for August, and auto and truck sales for September.

Nasdaq Composite +26.2% YTD
S&P 500 +4.6% YTD
Dow Jones Industrial Average -2.5% YTD
Russell 2000 -8.2% YTD

Market Snapshot
Dow 27806.90 +35.20 (0.13%)
Nasdaq 11326.53 +159.00 (1.42%)
SP 500 3380.80 +17.80 (0.53%)
10-yr Note +1/32 0.677
NYSE Adv 2039 Dec 933 Vol 859.1 mln
Nasdaq Adv 2213 Dec 1141 Vol 3.9 bln

Industry Watch
Strong: Information Technology, Communication Services, Consumer Discretionary, Real Estate
Weak: Energy, Materials, Health Care, Industrials

Moving the Market

-- Technology stocks lift market amid stimulus bill uncertainty

-- Cyclical sectors lagged, additionally pressured by mixed economic data

-- Technical support

WTI crude falls nearly 4%, hit energy stocks
01-Oct-20 15:25 ET
Dow -44.29 at 27727.41, Nasdaq +133.30 at 11300.83, S&P +7.96 at 3370.96

[BRIEFING.COM] The S&P 500 is up 0.3%, while the Russell 2000 outperforms with a 1.3% gain.

One last look at the sectors shows mixed results. The consumer discretionary (+1.4%) and communication services (+1.3%) sectors are up more than 1.0%, while the energy (-3.6%) and materials (-1.2%) sectors are down more than 1.0%. Energy stocks have gotten hit by another decline in oil prices.

WTI crude futures settled sharply lower by 3.7%, or $1.50, to $38.71/bbl. Investors remained concerned about future demand.

[ReturntoSender]

Stocks rebound on stimulus, coronavirus optimism
07-Oct-20 16:20 ET
Dow +530.70 at 28293.46, Nasdaq +210.00 at 11364.53, S&P +58.50 at 3419.47

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

[BRIEFING.COM] The S&P 500 rose 1.7% on Wednesday, primarily driven by renewed stimulus hopes and secondarily coronavirus-related optimism. The Nasdaq Composite gained 1.9%, the Dow Jones Industrial Average gained 1.9%, and the Russell 2000 gained 2.1%.

After President Trump said he called off stimulus negotiations yesterday, he later clarified that he still wanted stimulus but in the form of standalone bills for airlines, small businesses, and citizens ($1200 payments). This jump-started the futures market, and news that Eli Lilly (LLY 148.96, +4.83, +3.4%) requested emergency use authorization for its COVID-19 antibody treatment supported the rebound effort.

Accordingly, airline and retail stocks were some of today's biggest gainers, but the wealth spread around to every sector in the S&P 500 and every Dow component. The cyclical materials (+2.6%), consumer discretionary (+2.5%), and industrials (+2.2%) sectors rose more than 2.0%. The real estate sector (+0.3%) underperformed.

Inside the communication services sector (+0.9%), Netflix (NFLX 534.66, +28.79, +5.7%) rallied nearly 6% after Pivotal Research Group raised its price target on the stock to a Street-high $650 from $600. Facebook (FB 258.12, -0.54, -0.2%) was excluded from today's gains amid antitrust concerns stemming from a report from the House antitrust committee.

Essentially, today was a reset to yesterday's highs before President Trump upset the market with tweets. The S&P 500 closed back above its ascending 50-day moving average (3372).

Separately, the FOMC Minutes for the Sept. 15-16 meeting provided no surprises. Fed officials expressed concerns regarding a recovery if there is no more fiscal stimulus and remained in agreement that the current environment is disinflationary.

U.S. Treasuries finished lower on the longer-end of the curve, sending those yields back to their highest levels of the week. The 2-yr yield finished unchanged at 0.15%, while the 10-yr yield increased four basis points to 0.79%. The U.S. Dollar Index finished flat at 93.64. WTI crude declined 1.8%, or $0.71, to $39.96/bbl.

Reviewing Wednesday's economic data:

Consumer credit contracted by $7.2 billion in August (Briefing.com consensus $14.1 billion) after increasing an upwardly revised $14.7 bln (from $12.3 billion) in July.
The key takeaway from the report is that August marked the sixth straight monthly contraction in revolving credit, which is something that hasn't happened since late 2010 - early 2011, underscoring the more restrictive credit stance adopted by lenders in the wake of the COVID shutdown and rise in unemployment.
The weekly MBA Mortgage Applications Index increased 4.6% following a 4.8% decline in the prior week.

Looking ahead, investors will receive the weekly MBA Mortgage Applications Index and the NFIB Small Business Optimism Index for September on Thursday.

Nasdaq Composite +26.7% YTD
S&P 500 +5.8% YTD
Dow Jones Industrial Average -0.8% YTD
Russell 2000 -3.4% YTD

Market Snapshot
Dow 28293.46 +530.70 (1.91%)
Nasdaq 11364.53 +210.00 (1.88%)
SP 500 3419.47 +58.50 (1.74%)
10-yr Note -4/32 0.785
NYSE Adv 21718 Dec 819 Vol 879.0 mln
Nasdaq Adv 2549 Dec 797 Vol 3.9 bln

Industry Watch
Strong: Materials, Financials, Industrials, Consumer Discretionary
Weak: Communication Services, Energy, Real Estate

Moving the Market

-- President Trump says he still wants standalone relief bills for airlines, small businesses, and citizens

-- Coronavirus treatment optimism

-- Stocks rebound, Treasuries decline

-- Cyclical leadership

WTI crude pulls back modestly
07-Oct-20 15:30 ET
Dow +577.27 at 28340.03, Nasdaq +211.58 at 11366.11, S&P +62.10 at 3423.07

[BRIEFING.COM] The S&P 500 continues to trade higher by 1.8% in a steady, broad-based advance. The Russell 2000 is up 2.3%, extending its monthly outperformance.

One last look at the S&P 500 sectors shows green across the board. Five sectors are up at least 2.0%, including materials (+2.8%), while the real estate sector (+0.7%) continues to lag with a 0.7% gain.

WTI crude futures settled lower by 1.8%, or $0.71, to $39.96/bbl.

[ReturntoSender]

Stocks end strong week on positive note
09-Oct-20 16:15 ET
Dow +161.39 at 28586.84, Nasdaq +158.96 at 11579.87, S&P +30.31 at 3477.13

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

[BRIEFING.COM] The S&P 500 rose 0.9% on Friday and ended the week with a 3.8% gain, as investors remained enthused by reported progress in stimulus talks and positive corporate commentary. The Nasdaq Composite outperformed with a 1.4% gain, followed by 0.6% gains in the Dow Jones Industrial Average (+0.6%) and Russell 2000 (+0.6%).

The White House was reportedly drafting a $1.8 trillion stimulus bill, up from a prior $1.6 trillion and representing an about-face from the previous stance aimed at standalone relief bills. President Trump advocated in a radio interview for a bigger stimulus package than what both sides are offering.

Truthfully, the reaction in the market wasn't that impressive considering the news contributed to only a small bump in the S&P 500, which was already trading higher before the headlines. That might have been because Senate Majority Leader McConnell said beforehand that a deal might not happen before the election or perhaps the market was gassed out after a strong week.

Sector leaders today included consumer discretionary (+1.5%) and information technology (+1.5%) amid solid gains in the mega-caps and semiconductor stocks. The Philadelphia Semiconductor Index rose 1.8%. The energy (-1.6%), real estate (-0.3%), and utilities (-0.04%) sectors closed lower.

Within the semiconductor space, Xilinx (XLNX 120.94, +14.95, +14.1%) was reported to be in talks to be acquired by AMD (AMD 83.10, -3.41, -3.9%) for $30 billion, NXP Semi (NXPI 141.53, +6.70, +5.0%) raised Q3 revenue guidance above consensus, and Teradyne (TER 86.10, +3.62, +4.4%) was upgraded to Buy from Hold at Stifel.

Separately, Gilead Sciences (GILD 63.84, +0.52, +0.8%) said trial data for its remdesivir drug shortened the recovery time of COVID-19 patients by five days and significantly reduced death rates. The news strengthened the market's optimism surrounding coronavirus treatments and their potential impact on consumer sentiment.

U.S. Treasured ended the session on a lower note. The 2-yr yield increased three basis points to 0.16%, and the 10-yr yield increased one basis points to 0.78%. The U.S. Dollar Index fell 0.6% to 93.06. WTI crude futures fell 1.3%, or $0.54, to $40.64/bbl.

Friday's economic data was limited to wholesale inventories for August, which increased 0.4% (Briefing.com consensus 1.0%) following a revised 0.2% decline in July (from -0.3%). Investors will not receive any notable data on Monday.

Nasdaq Composite +29.1% YTD
S&P 500 +7.6% YTD
Dow Jones Industrial Average +0.2% YTD
Russell 2000 -1.9% YTD

Market Snapshot
Dow 28586.84 +161.39 (0.57%)
Nasdaq 11579.87 +158.96 (1.39%)
SP 500 3477.13 +30.31 (0.88%)
10-yr Note +1/32 0.771
NYSE Adv 1505 Dec 1460 Vol 851.3 mln
Nasdaq Adv 1957 Dec 1470 Vol 3.4 bln

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

Moving the Market

-- White House will reportedly increase stimulus proposal to $1.8 trillion, versus a prior $1.6 trillion

-- Mega-caps, semiconductor stocks were among the day's leaders

-- Another round of upbeat corporate news

WTI crude futures trim weekly gains
09-Oct-20 15:30 ET
Dow +176.86 at 28602.31, Nasdaq +149.34 at 11570.25, S&P +31.22 at 3478.04

[BRIEFING.COM] The S&P 500 is up 0.9% and is on track to end the week higher by 3.9%.

One last look at the S&P 500 sectors shows consumer discretionary (+1.6%), information technology (+1.4%), and consumer staples (+0.9%) leading the market in gains, while the energy (-1.4%), real estate (-0.2%), and utilities (-0.1%) sectors trade lower. Every sector remains higher for the week.

WTI crude futures settled lower by 1.3%, or $0.54, to $40.64/bbl. For the week, the oil contract appreciated 9.9%, or $3.59.

[ReturntoSender]

Mega-caps resume the leadership in Monday rally
12-Oct-20 16:20 ET
Dow +250.62 at 28837.46, Nasdaq +296.32 at 11876.19, S&P +57.09 at 3534.22

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

[BRIEFING.COM] The S&P 500 rose 1.6% on Monday in a steady advance driven by the mega-cap stocks. The Nasdaq Composite outperformed with a 2.6% gain, while the Dow Jones Industrial Average (+0.9%) and Russell 2000 (+0.7%) underperformed with gains under 1.0%.

Apple (AAPL 124.42, +7.45, +6.4%) and Amazon (AMZN 3442.93, +156.28, +4.8%) stood out with impressive gains in anticipation of their iPhone 12 and Prime Day events on Tuesday. Those were the attributed catalysts, but the stimulus impasse in Washington may have also contributed to the transition of recent leadership to the mega-caps from the cyclical stocks.

Accordingly, the S&P 500 information technology (+2.7%), communication services (+2.4%), and consumer discretionary (+2.2%) sectors, which are home to the mega-caps, finished atop the sector standings. No other sector outperformed the benchmark index, and the materials sector (-0.2%) closed lower.

Briefly recapping the latest on stimulus, House Democrats and Senate Republicans rejected the $1.8 trillion offer from the White House for different reasons. Based on the relatively broad-based advance in the market, investors presumably remained in agreement that a deal will eventually be reached, either under the current administration or new leadership in 2021.

The financials sector (+1.1%), undeterred by the lack of deal, had a solid outing ahead of earnings reports from several big banks tomorrow morning. Elsewhere, PepsiCo (PEP 142.13, +3.69, +2.7%) was upgraded to Buy from Neutral at Citigroup, and Twilio (TWLO 329.72, +23.48, +7.7%) agreed to acquire Segment for approximately $3.2 billion in stock.

With the U.S. Treasury market closed for Columbus Day, commentary mainly focused on the bullish price action in equities. Consequently, it's reasonable to believe that a fear of missing out on further gains was another factor that fueled the positive momentum in the market. The S&P 500 closed within 1.5% of its all-time high.

WTI crude futures fell 3.1%, or $1.26, to $39.34/bbl. The U.S. Dollar Index finished flat at 93.05.

Investors did not receive any economic data on Monday. Looking ahead, the Consumer Price Index for September, the Treasury Budget for September, and the NFIB Small Business Optimism Index for September are scheduled for Tuesday. Note, the September Treasury Budget is often delayed to allow more time for fiscal year end reconciliation.

Nasdaq Composite +32.4% YTD
S&P 500 +9.4% YTD
Dow Jones Industrial Average +1.1% YTD
Russell 2000 -1.2% YTD

Market Snapshot
Dow 28837.46 +250.62 (0.88%)
Nasdaq 11876.19 +296.32 (2.56%)
SP 500 3534.22 +57.09 (1.64%)
10-yr Note 0/32 0.777
NYSE Adv 1821 Dec 1176 Vol 746.8 mln
Nasdaq Adv 1956 Dec 1333 Vol 3.8 bln

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

Moving the Market

-- Apple (AAPL) and Amazon (AMZN) set the leadership pace ahead of iPhone 12, Prime Day events tomorrow

-- Stimulus impasse in Washington helped mega-caps regain leadership from the cyclical stocks

-- Momentum trading, fear of missing out

WTI crude futures lose 3% in value
12-Oct-20 15:25 ET
Dow +312.51 at 28899.35, Nasdaq +324.26 at 11904.13, S&P +65.57 at 3542.70

[BRIEFING.COM] The S&P 500 is up 1.9% and has extended its October gain to 5.4% and yearly gain to 9.7%.

One last look at the S&P 500 sectors shows information technology (+2.8%), communication services (+2.7%), and consumer discretionary (+2.3%) up more than 2.0%, while the materials sector (-0.01%) trades fractionally below its flat line.

WTI crude futures settled lower by 3.1%, or $1.26, to $39.34/bbl.

[ReturntoSender]

Stocks close lower amid disappointing earnings reactions
14-Oct-20 16:25 ET
Dow -165.81 at 28513.94, Nasdaq -95.17 at 11768.66, S&P -23.26 at 3488.67

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

[BRIEFING.COM] The S&P 500 lost 0.7% on Wednesday for its second straight decline, as the market appeared influenced by disappointing earnings reactions and some consolidation activity. The Nasdaq Composite declined 0.8%, the Dow Jones Industrial Average declined 0.6%, and the Russell 2000 declined 0.9%.

Shares of UnitedHealth (UNH 321.85, -9.57, -2.9%), Bank of America (BAC 23.62, -1.33, -5.3%), and Wells Fargo (WFC 23.25, -1.49, -6.0%) fell between 3-6% despite the companies reporting mixed-to-positive earnings results. Goldman Sachs (GS 211.23, +0.42, +0.2%) was little changed despite reporting blowout quarterly results.

BAC and WFC contributed to the underperformance of the financials sector (-1.1%), which joined the consumer discretionary (-1.4%), communication services (-1.2%), and real estate (-1.2%) sectors as today's laggards. The industrials (+0.5%), materials (+0.4%), and energy (+0.3%) sectors closed higher.

Some attributed today's decline in part to Treasury Secretary Mnuchin expressing some doubt about a stimulus package before the election, and France announcing night-time restrictions to curb a "second wave" of coronavirus in the region.

The market might not have been so distraught by these latter developments since several cyclical sectors did finish in positive territory. The energy space particularly benefited from higher oil prices ($41.02, +0.83, +2.1%) and M&A speculation surrounding Concho Resources (CXO 48.66, +4.52, +10.2%).

Therefore, it's reasonable to think that the market needed to find reasons to cool down from a hot start to the month, including the rally on Monday.

U.S. Treasuries finished with small gains amid the decline in equities and cautious-minded economic commentary from Goldman Sachs. The 2-yr yield declined two basis points to 0.13%, and the 10-yr yield declined one basis point to 0.72%. The U.S. Dollar Index decreased 0.2% to 93.38.

Reviewing Wednesday's economic data:

The Producer Price Index for final demand increased 0.4% m/m (Briefing.com consensus +0.1%) while the index for final demand, less food and energy, also increased 0.4% (Briefing.com consensus +0.3%).
The key takeaway from the report is that the monthly surprises were tempered by the absence of any nettlesome inflation pressure on a year-over-year basis. The index for final demand was up just 0.4% yr/yr while the index for final demand, less food and energy, was up 1.2%.
The weekly MBA Mortgage Applications Index decreased 0.7% following a 4.6% increase in the prior week.

Looking ahead to Thursday, investors will receive the weekly Initial and Continuing Claims report, the Philadelphia Fed Index for October, the Empire State Manufacturing Index for October, Import and Export Prices for September, and possibly the Treasury Budget for September, which has been delayed for fiscal year end reconciliation.

Nasdaq Composite +31.2% YTD
S&P 500 +8.0% YTD
Dow Jones Industrial Average -0.1% YTD
Russell 2000 -2.8% YTD

Market Snapshot
Dow 28513.94 -165.81 (-0.58%)
Nasdaq 11768.66 -95.17 (-0.80%)
SP 500 3488.67 -23.26 (-0.66%)
10-yr Note +22/32 0.728
NYSE Adv 1165 Dec 1825 Vol 764.4.1 mln
Nasdaq Adv 1139 Dec 2192 Vol 3.4 bln

Industry Watch
Strong: Energy, Industrials, Materials
Weak: Consumer Discretionary, Information Technology, Communication Services

Moving the Market

-- Stock market trades lower, consolidates recent gains

-- Underwhelming earnings reactions

-- Stimulus talks drag on

-- Cyclical sectors outperform

WTI crude futures gain 2%, energy stocks outperform
14-Oct-20 15:25 ET
Dow -106.10 at 28573.65, Nasdaq -70.82 at 11793.01, S&P -16.45 at 3495.48

[BRIEFING.COM] The S&P 500 is down 0.5% to trade well off session lows (-0.9%). The Russell 2000 is also down 0.5%.

One last look at the sector performances shows eight trading lower and three trading higher. Consumer discretionary (-1.1%) and communication services (-1.0%) are down at least 1.0%, while the industrials (+1.0%), energy (+0.6%), and materials (+0.6%) sectors sport decent gains on this down index day.

WTI crude futures settled higher by 2.1%, or $0.83, to $41.02/bbl.

[ReturntoSender]

S&P 500 closes flat in mixed session
16-Oct-20 16:20 ET
Dow +112.11 at 28606.25, Nasdaq -42.32 at 11671.48, S&P +0.47 at 3483.81

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

[BRIEFING.COM] The S&P 500 (+0.01%) finished little changed on Friday after being up as much as 0.9% early in the day. The Dow Jones Industrial Average outperformed with a 0.4% gain, while the Nasdaq Composite (-0.4%) and Russell 2000 (-0.3%) slipped into negative territory as selling picked up into the close on no specific news.

The strong start was mainly attributed to news that Pfizer (PFE 37.96, +1.41, +3.9%) may file for emergency use authorization for its COVID-19 vaccine by the end of November, and retail sales increasing 1.9% m/m in September (Briefing.com consensus +0.6%). The retail sales data had overshadowed an unexpected 0.6% decline in industrial production for September (Briefing.com consensus +0.6%).

Fittingly, the health care sector (+1.0%) was among today's sector leaders, right behind utilities (+1.1%). The consumer discretionary sector (-1.0%), however, really took a hit during the last hour of trading amid broad-based selling, joining the information technology (-0.3%) and real estate (-0.4%) sectors in the red.

The energy sector (-2.3%) and Dow Jones Transportation Average (-1.3%) were consistent laggards today amid disappointing reactions to mixed earnings reports from Schlumberger (SLB 14.97, -1.45, -8.8%), J.B. Hunt Transport (JBHT 128.04, -13.80, -9.7%), and Kansas City Southern (KSU 179.01, -5.00, -2.7%).

The weakness in the transportation space was mitigated in the industrials sector (+0.7%) by nice gains in Boeing (BA 167.35, +3.11, +1.9%) and Caterpillar (CAT 168.75, +3.71, +2.3%). Boeing's 737 MAX was deemed safe to fly by EU regulators, and CAT was upgraded to Overweight from Equal Weight at Wells Fargo.

Evidently, the session was mixed with conflicting trading narratives that made it hard to identify a clear theme. It was a stock picker's kind of day and certainly one for options traders amid monthly options expiration activity.

U.S. Treasuries finished the session on a lower note. The 2-yr yield increased two basis points to 0.15%, and the 10-yr yield increased one basis point to 0.74%. The U.S. Dollar Index declined 0.2% to 93.71. WTI crude futures declined 0.3%, or $0.11, to $40.85/bbl.

Reviewing Friday's economic data, which featured Retail Sales for September:

Total retail sales increased 1.9% m/m in September (Briefing.com consensus +0.6%). Excluding autos, retail sales were up 1.5% m/m (Briefing.com consensus +0.3%). On a yr/yr basis, total retail sales were up 5.4%. Excluding autos, they were up 4.0%.
The key takeaway from the report is that the sales gains were broad based and driven by increases in discretionary categories, which will validate expectations for a huge rebound in GDP growth in the third quarter.
Industrial production declined 0.6% m/m in September, which was well below expectations (Briefing.com consensus +0.6%). Total capacity utilization of 71.5% also disappointed (Briefing.com consensus 71.9%).
The key takeaway from the report is that it defied the rebound momentum that had been building in the third quarter. It was the first decline in five months, but despite the September decline, industrial production increased at an annual rate of 39.8% for the third quarter.
The preliminary University of Michigan's Index of Consumer Sentiment for October checked in at 81.2 (Briefing.com consensus 82.0). That was a bit weaker than expected, but an improvement from the final September reading of 80.4.
The key takeaway from the report is that concerns about current conditions, which were linked to slowing employment growth, a pickup in COVID-19 infections, and the lack of additional stimulus, were offset mostly by an improvement in attitudes about prospects for the year ahead.
The Treasury Budget showed a $200.1 bln deficit in August. The budget data is not seasonally adjusted, so the August deficit cannot be compared to the July deficit of $63.0 bln. The deficit in August 2019 was $200.3 bln.
The key takeaway from the report is that while outlays and receipts showed little yr/yr change in August, the year-to-date deficit climbed above $3 trillion.
Business inventories increased 0.1% in August (Briefing.com consensus 0.4%) following a 0.1% increase in July.

Looking ahead, investors will receive the NAHB Housing Market Index for October on Monday.

Nasdaq Composite +30.1% YTD
S&P 500 +7.8% YTD
Dow Jones Industrial Average +0.2% YTD
Russell 2000 -2.1% YTD

Market Snapshot
Dow 28606.25 +112.11 (0.39%)
Nasdaq 11671.48 -42.32 (-0.36%)
SP 500 3483.81 +0.47 (0.01%)
10-yr Note -1/32 0.745
NYSE Adv 1209 Dec 1779 Vol 887.8 mln
Nasdaq Adv 1629 Dec 1785 Vol 3.1 bln

Industry Watch
Strong: Health Care, Utilities, Industrials
Weak: Energy, Consumer Discretionary, Information Technology, Real Estate

Moving the Market

-- Stocks close mixed in lackluster trading session

-- September retail sales beat expectations, lingering vaccine optimism

-- Disappointing earnings reactions in the energy and transportation spaces

WTI crude futures settle lower, pare weekly gain
16-Oct-20 15:25 ET
Dow +190.32 at 28684.46, Nasdaq +11.29 at 11725.09, S&P +12.43 at 3495.77

[BRIEFING.COM] The S&P 500 is up 0.4% and is on pace to end the week higher by 0.5%.

One last look at the S&P 500 sector standings today shows health care (+1.2%), utilities (+1.2%), and industrials (+1.0%) atop the leaderboard, while the energy (-2.0%) and consumer discretionary (-0.3%) sectors underperform in the red.

WTI crude futures settled the session lower by 0.3%, or $0.11, t

[ReturntoSender]

Stocks falter amid disappointing stimulus update
19-Oct-20 16:20 ET
Dow -410.89 at 28195.36, Nasdaq -192.67 at 11478.81, S&P -56.89 at 3426.92

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

[BRIEFING.COM] The S&P 500 fell 1.6% on Monday, as risk sentiment was pressured by headlines indicating a stimulus deal doesn't appear imminent. The Nasdaq Composite fell 1.7%, the Dow Jones Industrial Average fell 1.4%, and the Russell 2000 fell 1.2%.

The day did start on a positive note before the major indices quickly embarked on a steady decline on no specific news. In the afternoon, the stimulus news appeared to have an algorithmic effect on the market considering House Speaker Pelosi gave the White House until Tuesday to reach a deal in order to get it done before the election.

The news wasn't necessarily surprising, as both sides had been divided on key issues for some time, but the update combined with the negative price action beforehand kept buyers sidelined. Every sector in the S&P 500 closed lower with losses ranging from 0.9% (utilities) to 2.1% (energy). The information technology sector fell 1.9%.

Moreover, today's slate of positive-sounding news was largely brushed aside. One exception was the airline stocks did rise on news that daily airline passenger levels reached one million for the first time since March. The U.S. Global Jets ETF (JETS 17.68, +0.19, +1.1%) increased 1%.

Other encouraging news included the NAHB Housing Market Index increasing to a new all-time high of 85 in October (Briefing.com consensus 83), China reporting hopeful economic data, and commentary that AstraZeneca's (AZN 52.44, -0.59, -1.1%) vaccine candidate could be available soon after Christmas.

In M&A activity, Intel (INTC 54.58, +0.42, +0.8%) was reported to be nearing a $10 billion agreement to sell its NAND memory unit to SK Hynix (HXSCL), and Concho Resources (CXO 27.26, -1.34, -2.8%) confirmed it will be acquired by ConocoPhillips (COP 32.70, -1.07, -3.2%) in an all-stock transaction valued at $9.7 billion.

Longer-dated Treasuries faced selling pressure despite the weakness in equities, which was reflective of cash-raising efforts. The 2-yr yield finished flat at 0.15%, while the 10-yr yield increased two basis points to 0.76%. The U.S. Dollar Index declined 0.3% to 93.44. WTI crude futures finished little changed at $40.84/bbl.

Looking ahead, the Housing Starts and Building Permits report for September is scheduled to be released on Tuesday.

Nasdaq Composite +27.9% YTD
S&P 500 +6.1% YTD
Dow Jones Industrial Average -1.2% YTD
Russell 2000 -3.3% YTD

Market Snapshot
Dow 28195.36 -410.89 (-1.44%)
Nasdaq 11478.81 -192.67 (-1.65%)
SP 500 3426.92 -56.89 (-1.63%)
10-yr Note -2/32 0.766
NYSE Adv 814 Dec 2174 Vol 834.0 mln
Nasdaq Adv 1089 Dec 2321 Vol 3.4 bln

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

Moving the Market

-- Stocks retreat in broad-based decline

-- Reports indicated that a stimulus deal did not appear imminent

WTI crude futures settle little changed while equities extend weakness
19-Oct-20 15:25 ET
Dow -448.86 at 28157.39, Nasdaq -208.67 at 11462.81, S&P -61.15 at 3422.66

[BRIEFING.COM] The S&P 500 is down 1.7% to trade at session lows as sellers retain control of the market. The Russell 2000 is down 1.3%.

One last look at the S&P 500 sectors shows information technology (-1.9%), health care (-1.9%), and communication services (-2.1%) leading the retreat with 2% declines. Apple (AAPL 116.29, -2.74, -2.3%) is exerting influential pressure on the major indices after holding up well earlier in the session.

WTI crude futures settled little changed at $40.84/bbl. It was a relatively uneventful day for crude prices.

[ReturntoSender]

Major indices close slightly lower in indecisive session
21-Oct-20 16:20 ET
Dow -97.97 at 28210.76, Nasdaq -31.80 at 11484.62, S&P -7.56 at 3435.56

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

[BRIEFING.COM] The S&P 500 decreased 0.2% on Wednesday in an indecisive session that was attributed to the uncertain outcome of stimulus talks. The Nasdaq Composite (-0.3%) and Dow Jones Industrial Average (-0.4%) posted comparable declines, while the Russell 2000 underperformed with a 0.9% decline.

After making progress in negotiations yesterday, House Speaker Pelosi said she was feeling optimistic and still wanted an agreement before the election. Negotiations continued today without a clear indication of the next steps, though. On a related note, the Senate failed to pass a $500 billion stimulus bill today, as expected.

Essentially, stimulus was a non-story today. One of the more interesting developments was the strong performance of the communication services sector (+1.3%), which was powered by Alphabet (GOOG 1593.31, +37.38, +2.4%), Facebook (FB 278.73, +11.17, +4.2%), and Twitter (TWTR 50.23, +3.88, +8.4%) following stellar earnings results from Snap (SNAP 36.50, +8.05, +28.3%).

Obfuscated was the 7% decline in Netflix (NFLX 489.05, -36.37, -6.9%), which missed subscriber estimates. Elsewhere, the energy sector dropped 2.0% amid lower oil prices ($40.03/bbl, -$1.48, -3.6%), and the industrials sector fell 1.0% amid broad-based selling.

Separately, Verizon (VZ 56.75, -0.50, -0.9%), Abbott Labs (ABT 105.93, -2.43, -2.2%), and Texas Instruments (TXN 146.13, -4.70, -3.2%) closed lower despite each reporting better-than-expected earnings results and providing upbeat guidance. PayPal (PYPL 213.07, +11.11, +5.5%) pleasantly surprised investors by implementing cryptocurrency services.

In the Treasury market, the 10-yr yield increased for the fifth straight session, closing two basis point higher at 0.82% on growing expectations for inflation resulting from another stimulus package. The 2-yr yield was unchanged at 0.15%. The U.S. Dollar Index fell 0.5% to 92.64.

Wednesday's economic data was limited to the weekly MBA Mortgage Applications Index, which decreased 0.6% following a 0.7% decline in the prior week. Looking ahead, investors will receive the weekly Initial and Continuing Claims report, Existing Home Sales for September, and the Conference Board's Leading Economic Index for September on Thursday.

Nasdaq Composite +28.0% YTD
S&P 500 +6.3% YTD
Dow Jones Industrial Average -1.2% YTD
Russell 2000 -3.9% YTD

Market Snapshot
Dow 28210.76 -97.97 (-0.35%)
Nasdaq 11484.62 -31.80 (-0.28%)
SP 500 3435.56 -7.56 (-0.22%)
10-yr Note -3/32 0.817
NYSE Adv 1036 Dec 1968 Vol 849.4 mln
Nasdaq Adv 1277 Dec 2147 Vol 3.4 bln

Industry Watch
Strong: Communication Services, Consumer Staples
Weak: Energy, Industrials, Consumer Discretionary

Moving the Market

-- Major indices close slightly lower in indecisive session; stimulus uncertainty

-- Strength in the communications services sector after Snap (SNAP) delivered strong earnings report

WTI crude futures settle sharply lower while yields increase
21-Oct-20 15:30 ET
Dow +31.74 at 28340.47, Nasdaq +43.91 at 11560.33, S&P +11.71 at 3454.83

[BRIEFING.COM] The S&P 500 is up 0.2% while investors continue to await any news out of stimulus talks. The move in longer-dated Treasuries over the past week has been noteworthy.

The 10-yr yield is up two basis points to 0.82% after touching 0.69% on Oct. 15, which is indicative of investors starting to anticipate inflation caused by a large stimulus package. There is chatter if a sustained increase in yields will undercut shares of growth stocks, but so far this has yet to transpire.

WTI crude futures settled sharply lower by 3.6%, or $1.48, to $40.03/bbl.

[ReturntoSender]

Stocks close higher on hopeful-sounding stimulus commentary
22-Oct-20 16:15 ET
Dow +152.84 at 28363.60, Nasdaq +21.31 at 11505.93, S&P +17.93 at 3453.49

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

[BRIEFING.COM] The S&P 500 gained 0.5% on Thursday, as hopeful-sounding stimulus commentary contributed to renewed leadership in the value/cyclical/small-cap stocks. Versus the benchmark index, the Russell 2000 outperformed (+1.7%) by a healthy margin, the Dow Jones Industrial Average (+0.5%) performed in-line, and the Nasdaq Composite (+0.2%) underperformed.

Early in the day, the S&P 500 was down 0.6% despite another round of better-than-expected earnings reports and encouraging economic data, which included a 55,000 decline in weekly initial claims to 787,000 (Briefing.com consensus 860,000). Risk sentiment was ostensibly pressured by chatter that the passage of a stimulus deal might have to wait until after the election.

House Speaker Pelosi, meanwhile, noted that a stimulus deal was "just about there" after negotiating with Treasury Mnuchin several times this week. That observation prompted a relatively modest rebound that was led by the cyclically-oriented energy (+4.2%) and financials (+1.9%) sectors.

The health care (+1.5%) and utilities (+1.5%) sectors followed suit, but losses in the information technology (-0.5%), real estate (-0.8%), and consumer staples (-0.2%) sectors limited the rebound effort.

Interestingly, even before Ms. Pelosi's comments, the 10-yr yield was trending higher for the sixth straight day on burgeoning inflation expectations resulting from a large stimulus package. The upwards trajectory in rates was cited as a drag on highly-valued growth stocks, which had benefited from persistently low rates.

The 10-yr yield finished the session higher by three basis points to 0.85%. The 2-yr yield remained unchanged at 0.15% due to the Fed's stance of keeping the fed funds rate near zero for the next few years. The U.S. Dollar Index advanced 0.4% to 92.95. WTI crude futures rose 1.6%, or $0.62, to $40.65/bbl.

Highlighting some of today's earnings movers, Tesla (TSLA 425.79, +3.15, +0.8%), Coca-Cola (KO 50.68, +0.69, +1.4%), AT&T (T 28.29, +1.57, +5.9%), CSX (CSX 81.73, +3.01, +3.8%), and Dow Inc. (DOW 48.82, +0.27, +0.6%) closed higher following their results. Union Pacific (UNP 187.14, -12.34, -6.2%), however, was a notable earnings laggard.

Reviewing Thursday's economic data, which featured the weekly Initial and Continuing Claims report:

Initial claims for the week ending October 17 decreased by 55,000 to 787,000 (Briefing.com consensus 860,000) while continuing claims for the week ending October 10 decreased by 1.024 million to 8.373 million.
The key takeaway is that this is perhaps a better take on things, as California completed its pause in processing of initial claims and reported actual unemployment insurance claims; nonetheless, initial jobless claims remain at unacceptably high levels.
Existing home sales increased 9.4% m/m in September to a seasonally adjusted annual rate of 6.54 million (Briefing.com consensus 6.10 million), bolstered in part by a 34% annual increase in sales in vacation destination counties.
The key takeaway from the report is that it reflects robust demand for existing homes. That is constraining supply even further, which is going to be a pressure point that feeds higher prices, shuts out an increasing number of first-time buyers, and bolsters the prospects for new home sales.
The Conference Board's Leading Economic Index increased 0.7% m/m in September (Briefing.com consensus +0.6%) following an upwardly revised 1.4% increase (from 1.2%) in August.
The key takeaway from the report is that the strength among the leading indicators has become somewhat more widespread, although the slower pace versus August points to a possible slowdown in recovery momentum entering the fourth quarter.

Looking ahead, investors will receive the preliminary Markit Manufacturing and Services PMIs for September on Friday.

Nasdaq Composite +28.2% YTD
S&P 500 +6.9% YTD
Dow Jones Industrial Average -0.6% YTD
Russell 2000 -2.3% YTD

[ReturntoSender]

Modest gains to end the week
23-Oct-20 16:20 ET

Dow -28.09 at 28335.51, Nasdaq +42.28 at 11548.21, S&P +11.90 at 3465.39

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

[BRIEFING.COM] The S&P 500 increased 0.3% on Friday in a tight-ranged session that lacked conviction. The Russell 2000 gained 0.6%, and the Nasdaq Composite gained 0.4%. The Dow Jones Industrial Average, however, declined 0.1%.

The underperformance of the Dow was linked to weakness in Intel (INTC 48.20, -5.70, -10.6%) and American Express (AXP 100.99, -3.80, -3.6%) following their earnings reports. Intel warned about operating margin next quarter, and the 10.6% post-earnings decline pressured the top-weighted S&P 500 information technology sector (-0.1%).

The energy sector (-0.6%) was the only other sector that closed lower due to weakness in oil prices ($39.88/bbl, -0.77, -1.9%). A relatively strong finish in the market, meanwhile, was led by the communication services (+1.1%), consumer discretionary (+0.9%), and real estate (+0.7%) sectors.

The Dow Jones Transportation Average (+1.1%) was another area of relative strength amid solid gains in the airline stocks.

In stimulus news, Treasury Mnuchin said there were still significant differences despite meeting with House Speaker Pelosi numerous times this week. White House Chief of Staff Meadows, however, told reporters that he hopes to have a stimulus deal over the weekend.

Separately, Gilead Sciences (GILD 60.79, +0.12, +0.2%) received FDA approval for its remdesivir drug used to treat COVID-19. Shares spiked 5% on the news but ended the session with a 0.2% gain in a sell-the-news reaction.

U.S. Treasuries finished near their flat lines to reclaim early losses. The 2-yr yield increased one basis point to 0.16%, and the 10-yr yield declined one basis point to 0.84% after touching 0.87% at its high. The U.S. Dollar Index declined 0.2% to 92.72.

Reviewing today's economic data: the preliminary Markit Manufacturing PMI increased to 53.3 in October from 53.2 in September. The preliminary Markit Services PMI increased to 56.0 in October from 54.6 in September.

Looking ahead, investors will receive New Home Sales for September on Monday.

Nasdaq Composite +28.7% YTD
S&P 500 +7.3% YTD
Dow Jones Industrial Average -0.7% YTD
Russell 2000 -1.7% YTD


Market Snapshot
Dow 28335.51 -28.09 (-0.10%)
Nasdaq 11548.21 +42.28 (0.37%)
SP 500 3465.39 +11.90 (0.34%)
10-yr Note +2/32 0.840

NYSE Adv 1876 Dec 1097 Vol 721.9 mln
Nasdaq Adv 2113 Dec 1300 Vol 3.1 bln


Industry Watch
Strong: Communication Services, Consumer Discretionary, Real Estate

Weak: Information Technology, Energy


Moving the Market
-- Stock market closes higher in muted session

-- Intel (INTC) shares sold off following earnings report

-- Mixed messaging on stimulus prospects



WTI crude futures fall 2% and weigh on energy stocks
23-Oct-20 15:25 ET

Dow -50.52 at 28313.08, Nasdaq +13.44 at 11519.37, S&P +6.79 at 3460.28
[BRIEFING.COM] The S&P 500 is trading higher by 0.2% and is on pace to end the week with a modest decline. The index is down 0.7% this week, including today's gain.

One last look inside the S&P 500 shows communication services (+0.8%) being carried into the top spot amid gains in Alphabet (GOOG 1634.62, +18.93, +1.2%) and Facebook (FB 283.23, +5.12, +1.9%). The energy sector (-0.9%) remains at the bottom amid a decline in oil prices.

WTI crude futures settled lower by 1.9%, or $0.77, to $39.88/bbl. For the week, crude prices increased just 0.5%.

[ReturntoSender]

Stocks fall on familiar growth concerns
26-Oct-20 16:15 ET
Dow -649.86 at 27685.65, Nasdaq -189.34 at 11358.87, S&P -64.44 at 3400.95

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

[BRIEFING.COM] The S&P 500 fell 1.9% on Monday on familiar concerns surrounding the economy, although it was down as much as 2.9% intraday. The Nasdaq Composite declined 1.6%, the Dow Jones Industrial Average declined 2.3%, and the Russell 2000 declined 2.2%.

Notably, stimulus talks remained deadlocked, the U.S. set a new record for daily coronavirus cases last Friday, Germany's SAP (SAP 115.02, -34.66, -23.2%) lowered its revenue outlook due to lockdowns and a muted demand recovery, and new U.S. home sales unexpectedly decreased 3.5% m/m to 959,000 in September (Briefing.com consensus 1.022 mln).

Accordingly, the cyclical energy (-3.5%), industrials (-2.5%), materials (-2.5%), and financials (-2.2%) sectors were among the day's laggards but so was the information technology sector (-2.2%), which typically benefits from growth concerns. The utilities sector (-0.1%) finished just below its flat line.

Conversely, longer-dated Treasuries moved higher in a safe-haven bid, which pushed yields lower. The 10-yr yield declined four basis points to 0.80%, while the 2-yr yield was unchanged at 0.16%. The U.S. Dollar Index advanced 0.3% to 93.07. WTI crude futures fell 3.3%, or $1.30, to $38.58/bbl, which weighed on energy stocks.

The stimulus impasse was nothing new for investors, but the continued deadlock was disappointing given the macroenvironment appeared to take an unfortunate turn, which could undercut confidence for consumers and businesses without fiscal support. Note, House Speaker Pelosi said she was still optimistic in reaching an agreement before the election.

Today's steep decline sent the S&P 500 below its 50-day moving average (3408) on a closing basis. The negative price action had some market participants bracing for further downside, evident by the 18% spike in the CBOE Volatility Index (32.46, +4.91, +17.8%).

Dunkin (DNKN 103.10, +14.31, +16.1%) was a notable exception to the negative trend today after confirming it's in talks to be taken private by Inspire Brands for possibly $106.50/share. DNKN shares surged 16%.

Reviewing Monday's economic data:

New home sales decreased to 959,000 in September (Briefing.com consensus 1.022 mln) from a downwardly revised 994,000 (from 1,011,000) in August. This represents a m/m decline of 3.5%, but a yr/yr increase of 32.1%.
The key takeaway from the report is that strong demand for new homes is resulting in higher prices, which in turn impacts affordability.

Looking ahead, investors will receive Durable Goods Orders for September, the Conference Board's Consumer Confidence Index for October, the FHFA Housing Price Index for October, and the S&P Case-Shiller Home Price Index for August on Tuesday.

Nasdaq Composite +26.6% YTD
S&P 500 +5.3% YTD
Dow Jones Industrial Average -3.0% YTD
Russell 2000 -3.8% YTD

Market Snapshot
Dow 27685.65 -649.86 (-2.29%)
Nasdaq 11358.87 -189.34 (-1.64%)
SP 500 3400.95 -64.44 (-1.86%)
10-yr Note +26/32 0.803
NYSE Adv 396 Dec 2636 Vol 826.9 mln
Nasdaq Adv 628 Dec 2784 Vol 3.2 bln

Industry Watch
Strong: Utilities
Weak: Energy, Materials, Financials, Industrials, Information Technology

Moving the Market

-- Steep losses to start the week, S&P 500 falls below its 50-day moving average (3408)

-- Stimulus talks remain deadlocked, U.S. tallies new record in daily coronavirus cases

-- New home sales unexpectedly decreased in September

-- Weakness in the cyclical stocks

Oil prices fall more than 3%, energy stocks lag
26-Oct-20 15:25 ET
Dow -735.02 at 27600.49, Nasdaq -226.95 at 11321.26, S&P -74.49 at 3390.90

[BRIEFING.COM] The S&P 500 continues to trade lower by 2.2%. Interestingly, the benchmark index is still positive for the month with a 0.9% gain.

One last look at the S&P 500 sectors shows energy (-3.6%), industrials (-2.8%), financials (-2.6%), and materials (-2.7%) leading today's decline, while the utilities sector (+0.1%) is above water in a resilient trade.

WTI crude futures settled sharply lower by 3.3%, or $1.30, to $38.58/bbl.

[ReturntoSender]

Stocks sell off in broad-based de-risking
28-Oct-20 16:20 ET
Dow -943.24 at 26519.89, Nasdaq -426.48 at 11004.80, S&P -119.65 at 3271.03

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

[BRIEFING.COM] The S&P 500 dropped 3.5% on Wednesday, as heightened growth concerns exacerbated de-risking efforts and the recent negative momentum in the market. The Nasdaq Composite fell 3.7%, the Dow Jones Industrial Average fell 3.4%, and the Russell 2000 fell 3.0%.

Similarly, no sector was spared with losses ranging from 2.4% (real estate) to 4.3% (information technology).

The weakness started in the futures market after European markets opened to news that Germany and France were preparing renewed lockdown measures to curb the spread of the coronavirus. Germany's DAX dropped 4.2% on Wednesday, versus a 3.0% decline in the Europe Stoxx 600.

The coronavirus path in the U.S. is tracking in the wrong direction, leaving investors worried that more cities and states could adopt similar measures. With a stimulus deal unlikely to come before the election to mitigate the financial difficulties many businesses and households are facing, the market presumably started to rethink future earnings growth.

Most Q3 earnings reports continued to exceed expectations, but the reactions remained disappointing. Granted, Microsoft (MSFT 202.68, -10.57, -5.0%) did guide revenue for its fiscal second quarter below consensus, and MasterCard (MA 291.38, -25.73, -8.1%) was one the larger companies that missed expectations.

Shares of UPS (UPS 155.78, -15.06, -8.8%) dropped nearly 9% despite beating top and bottom-line estimates. The Dow Jones Transportation Average fell 4.3%.

If that wasn't enough to deter sentiment, Pfizer (PFE 35.45, -1.98, -5.3%) delayed the release of its Phase 3 vaccine trial results, which were expected this week, and the CEOs of Alphabet (GOOG 1516.62, -87.64, -5.5%), Facebook (FB 267.67, -15.62, -5.5%), and Twitter (TWTR 48.56, -2.71, -5.3%) testified before the Senate Commerce Committee on Section 230 of the Communications Decency Act.

Interestingly, longer-dated Treasuries gave up early gains to close little changed. The 2-yr yield and 10-yr yield both finished flat at 0.15% and 0.78%, respectively. The U.S. Dollar Index advanced 0.6% to 93.46. WTI crude futures fell 5.3%, or $2.10, to $37.45/bbl amid the stronger dollar, bearish inventory data, and demand concerns.

Separately, the weekly MBA Mortgage Applications Index increased 1.7% following a 0.6% decline in the prior week.

Looking ahead, investors will receive the advance estimate for Q3 GDP, the weekly Initial and Continuing Claims report, and Pending Home Sales for September on Thursday.

Nasdaq Composite +22.7% YTD
S&P 500 +1.3% YTD
Dow Jones Industrial Average -7.1% YTD
Russell 2000 -7.5% YTD

Market Snapshot
Dow 26519.89 -943.24 (-3.43%)
Nasdaq 11004.80 -426.48 (-3.73%)
SP 500 3271.03 -119.65 (-3.53%)
10-yr Note 0/32 0.775
NYSE Adv 266 Dec 2775 Vol 1.1 bln
Nasdaq Adv 470 Dec 2935 Vol 3.8 bln

Industry Watch
Strong: Real Estate
Weak: Information Technology, Energy, Communication Services, Consumer Discretionary

Moving the Market

-- Sell-off on Wall Street amid increasing growth concerns and negative momentum

-- Stimulus deal not likely before the election, prospect of more business restrictions

-- Microsoft (MSFT) issued below-consensus revenue guidance

WTI crude futures fall 5%
28-Oct-20 15:30 ET
Dow -760.77 at 26702.36, Nasdaq -318.52 at 11112.76, S&P -91.81 at 3298.87

[BRIEFING.COM] The S&P 500 is off session lows with a 2.7% decline. Nevertheless, today's retreat has erased the benchmark index's monthly gain.

One last look at the S&P 500 sectors shows information technology (-3.2%) and energy (-3.4%) down over 3.0%, while the real estate (-1.8%) and financials (-1.9%) sectors are down less than 2.0%.

WTI crude futures settled sharply lower by 5.3%, or $2.10, to $37.45/bbl. A stronger dollar, bearish inventory data, and demand concerns undercut prices.

[ReturntoSender]

Mega-caps led market rebound in front of earnings
29-Oct-20 16:15 ET
Dow +139.16 at 26659.05, Nasdaq +180.72 at 11185.52, S&P +39.08 at 3310.11

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

[BRIEFING.COM] The S&P 500 gained 1.2% on Thursday to snap a three-day losing streak in which it fell 5.6%. The Nasdaq Composite increased 1.6%, the Dow Jones Industrial Average increased 0.5%, and the Russell 2000 increased 1.2%.

The primary drivers in today's trade were Apple (AAPL 115.32, +4.12, +3.7%), Amazon (AMZN 3211.01, +48.23, +1.5%), Alphabet (GOOG 1567.24, +50.62, +3.3%), and Facebook (FB 280.83, +13.16, +4.9%) ahead of their earnings reports after the close. Note, these stocks had poor performance yesterday as part of the general weakness in the market, suggesting that today's gains were in part technically-oriented.

To be fair, Pinterest's (PINS 62.51, +13.26, +26.9%) strong earnings report was a supporting factor, as investors hoped that Facebook and Alphabet also benefited from increased advertising spending. The latter two contributed to the outperformance of the S&P 500 communication services sector (+2.9%).

The energy sector (+3.2%) advanced the most, though. The health care sector (-0.7%) was the lone holdout with Abiomed (ABMD 254.61, -28.39, -10.0%) being the weakest component after guiding fiscal Q3 revenue below consensus.

Today's economic data was good for sentiment, even though the initial reaction was muted and the GDP data was considered backward-looking. Q3 GDP increased at a record annualized rate of 33.1% (Briefing.com consensus 30.2%) following a record 31.4% annualized decline in Q2. Weekly initial jobless claims decreased by 40,000 to 751,000 (Briefing.com consensus 763,000).

In other corporate news, Netflix (NFLX 501.21, +17.97, +3.7%) increased its prices for U.S. subscribers, which revived a slumbering stock; Visa (V 184.87, +4.00, +2.2%) beat top and bottom-line estimates; and Marvell (MRVL 38.21, -1.32, -3.3%) agreed to acquire Inphi (IPHI 140.60, +29.63, +26.7%) in a $10 billion deal.

The positive showing in equities decreased interest in U.S. Treasuries and hedging activity. The CBOE Volatility Index fell 6.7% to 37.57. The 2-yr yield finished flat at 0.15%, while the 10-yr yield rose five basis points to 0.84%. The U.S. Dollar Index increased 0.6% to 93.92, which was one headwind for oil prices ($36.13, -1.32, -3.5%).

Reviewing Thursday's economic data:

Q3 GDP increased at a record annualized rate of 33.1% (Briefing.com consensus 30.2%) following a record 31.4% annualized decline in Q2. The Q3 GDP Chair Deflator increased 3.6% (Briefing.com consensus 3.0%) after declining 1.8% in Q2.
The key takeaway from this report is that it was driven by a huge rebound in personal spending, which contributed 25.27 percentage points to the change in GDP. The other key takeaway for a market that is staring at elevated levels of uncertainty looking ahead is that this GDP report, which the market already knew was going to be historically good, is backward looking.
Initial claims for the week ending October 24 decreased by 40,000 to 751,000 (Briefing.com consensus 763,000). Continuing claims for the week ending October 17 decreased by 709,000 to 7.756 million.
The key takeaway from this report is that initial claims are still terribly high. The other key takeaway is that this report is a leading indicator, meaning that the terribly high level of initial claims portends a challenging pace of recovery for the job market.
Pending home sales decreased 2.2% in September (Briefing.com consensus 3.5%) following an unrevised 8.8% increase in October.

Looking ahead to Friday, investors will receive the Personal Income and Spending report for September, the Q3 Employment Cost Index, the Chicago PMI for October, and the final Univ. of Michigan Index of Consumer Sentiment for October.

Nasdaq Composite +24.7% YTD
S&P 500 +2.5% YTD
Dow Jones Industrial Average -6.6% YTD
Russell 2000 -6.4% YTD

Market Snapshot
Dow 26659.05 +139.16 (0.52%)
Nasdaq 11185.52 +180.72 (1.64%)
SP 500 3310.11 +39.08 (1.19%)
10-yr Note -6/32 0.831
NYSE Adv 1993 Dec 1024 Vol 1.0 bln
Nasdaq Adv 2217 Dec 1173 Vol 3.1 bln

Industry Watch
Strong: Energy, Communication Services, Materials
Weak: Health Care, Consumer Staples

Moving the Market

-- Mega-caps led rebound effort ahead of earnings after the close

-- Pinterest (PINS) earnings/guidance was a supporting catalyst in the communication services sector

-- Q3 GDP, weekly claims data were better than expected

WTI crude futures extend recent weakness
29-Oct-20 15:25 ET
Dow +272.77 at 26792.66, Nasdaq +252.60 at 11257.40, S&P +57.09 at 3328.12

[BRIEFING.COM] The S&P 500 continues to trade higher by 1.8% after it struggled to find direction at the open.

One last look at the S&P 500 sectors shows communication services (+3.5%), materials (+2.6%), information technology (+2.5%), and energy (+2.5%) leading the market higher, while the health care sector (-0.1%) is the lone holdout.

Abiomed (ABMD 258.17, -24.76, -8.8%) is the weakest health care component after issuing downside quarterly guidance.

WTI crude futures settled lower by 3.5%, or $1.32, to $36.13/bbl.

[ReturntoSender]

Market weighed down by the mega-caps
30-Oct-20 16:20 ET
Dow -157.51 at 26501.54, Nasdaq -274.00 at 10911.52, S&P -40.15 at 3269.96

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

[BRIEFING.COM] The S&P 500 fell as much as 2.3% on Friday amid weakness in the mega-cap stocks, but a strong finish in the value stocks reduced that decline to 1.2% by the close. The tech-sensitive Nasdaq Composite dropped 2.5%, while the more value-oriented Dow Jones Industrial Average (-0.6%) and Russell 2000 (-1.5%) fared better.

Briefly, Apple (AAPL 108.86, -6.46, -5.6%), Amazon (AMZN 3036.15, -174.86, -5.5%), and Facebook (FB 263.11, -17.72, -6.3%) declined at least 5.5% in sell-the-news reactions to their better-than-expected earnings reports. Alphabet (GOOG 1621.01, +53.77, +3.4%) was a notable exception to the negative reaction trend.

The consumer discretionary (-3.0%) and information technology (-2.4%) sectors were consistent laggards all day, largely due to the losses in Apple and Amazon. Notably, the financials (+0.3%) and energy (+0.2%) sectors eked out gains as investors bought the dip into the close.

For what it's worth, the S&P 500 closed above its September closing low (3236.92) after briefly dipping below it.

Dow components Honeywell (HON 164.95, +0.35, +0.2%) and Chevron (CVX 69.50, +0.70, +1.0%) also closed slightly higher after beating EPS estimates. Twitter (TWTR 41.36, -11.08, -21.1%) had a disappointing earnings reaction like the mega-caps, but its 21% decline was more severe.

In other negative-sounding developments, the U.S. set another record in daily coronavirus cases on Thursday with more than 90,000 new cases, and San Francisco paused some of its reopening efforts due to the alarming resurgence of the coronavirus. While disappointing, the news wasn't necessarily surprising given similar trends earlier this week.

Separately, the Fed announced it lowered the minimum loan size for three Main Street facilities to $100,000 from $250,000 to incentivize lending activity.

U.S. Treasuries started the session on a higher note amid the weakness in equities, but eventually succumbed to selling pressure that pushed longer-dated yields higher. The 2-yr yield was flat at 0.15%, and the 10-yr yield increased three basis points to 0.87%. The U.S. Dollar Index increased 0.1% to 94.05. WTI crude futures declined 1.2%, or $0.43, to $35.70/bbl.

Reviewing Friday's economic data:

Personal income increased 0.9% m/m in September (Briefing.com consensus +0.3%) and personal spending rose 1.4% (Briefing.com consensus 1.0%). The PCE Price Index increased 0.2% m/m, as did the core PCE Price Index, which excludes food and energy, leaving them up 1.4% yr/yr and 1.5% yr/yr, respectively.
The personal income and spending data were good, yet they were imputed in yesterday's Q3 GDP report, so there was less of a surprise pop from the favorable headlines; moreover, we're only a few days away from the start of November, so a report for September isn't altering the anxious mindset for a forward-looking market thinking about the election and the alarming rise in daily coronavirus case counts.
The final October reading for the University of Michigan's Index of Consumer Sentiment checked in at 81.8 (Briefing.com consensus 81.2), up from the preliminary reading of 81.2 and the final September reading of 80.4.
The key takeaway from the report is that changes in expectations seem to be oriented around election expectations. To that end, the Expectations Index rose by 50% among Democrats compared to three months ago and only 7% among Republicans. The ultimate outcome of the election, it was noted, can accelerate or narrow these partisan shifts.
The Q3 Employment Cost Index increased 0.5% (Briefing.com consensus 0.7%), seasonally adjusted, for the three-month period ending in September 2020 after increasing 0.5% for the three-month period ending June 2020. Wages and salaries, which account for about 70% of compensation costs, rose 0.4%, while benefit costs, which make up the remainder of compensation costs, increased 0.6%.
The key takeaway from the report is that compensation costs for civilian workers, private industry workers, and state and local government workers all moderated from the same period a year ago.
The Chicago PMI decreased to 61.1% in October (Briefing.com consensus 59.0%) from 62.4% in September.

Looking ahead, investors will receive the ISM Manufacturing Index for October, Construction Spending for September, and auto and truck sales for October on Monday.

Nasdaq Composite +21.6% YTD
S&P 500 +1.2% YTD
Dow Jones Industrial Average -7.1% YTD
Russell 2000 -7.8% YTD

Market Snapshot
Dow 26501.54 -157.51 (-0.59%)
Nasdaq 10911.52 -274.00 (-2.45%)
SP 500 3269.96 -40.15 (-1.21%)
10-yr Note -26/32 0.867
NYSE Adv 1163 Dec 1799 Vol 1.2 bln
Nasdaq Adv 968 Dec 2448 Vol 3.6 bln

Industry Watch
Strong: Financials, Energy
Weak: Information Technology, Consumer Discretionary

Moving the Market

-- Apple (AAPL), Amazon (AMZN), and Facebook (FB) sell off despite better-than-expected earnings reports

-- Alphabet (GOOG) and value stocks provided offsetting support

-- Fed lowered the minimum loan size for main street facilities

WTI crude futures extend weekly losses
30-Oct-20 15:30 ET
Dow -365.07 at 26293.98, Nasdaq -323.90 at 10861.62, S&P -62.06 at 3248.05

[BRIEFING.COM] The S&P 500 and Russell 2000 are both down 1.9%.

One last look at the S&P 500 sectors shows information technology (-3.0%) and consumer discretionary (-3.4%) down at least 3.0% and continuing to lead the sectors in losses. The financials (-0.6%), industrials (-0.8%), and health care (-0.9%) sectors are down less than 1.0%.

WTI crude futures settled lower by 1.2%, or $0.43, to $35.70/bbl. For the week, crude prices dropped 10.5%.

[ReturntoSender]

Cyclical sectors paced the rebound effort
02-Nov-20 16:15 ET
Dow +423.45 at 26924.99, Nasdaq +46.02 at 10957.54, S&P +40.28 at 3310.24

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

[BRIEFING.COM] The S&P 500 advanced 1.2% on Monday in a cyclically-led rebound. The value-oriented Dow Jones Industrial Average (+1.6%) and Russell 2000 (+2.0%) outpaced the benchmark index, while the Nasdaq Composite (+0.4%) underperformed amid relative weakness in the mega-cap/growth stocks.

Last week was the worst week for the market since March, and investors viewed the weakness as a good time to buy the dip. Money appeared to disproportionately flow into the cyclical stocks in part due to the better-than-expected ISM Manufacturing Index for October, which checked in at 59.3% (Briefing.com consensus 55.7%), versus 55.4% in September.

The energy sector rose 3.7% amid a turnaround in crude futures ($36.79, +1.09, +3.1%), which were down 5% from Friday's settlement price after several European countries announced renewed lockdowns. The materials (+3.4%), industrials (+2.7%), and financials (+1.9%) sectors were other notable gainers.

At the other end, the information technology (+0.3%), consumer discretionary (+0.3%), and communication services (+0.1%) sectors struggled to keep pace due to renewed selling pressure in their mega-cap components, which were also among the weakest performers last week.

Note, the session high for the S&P 500 was set in the first hour of trading. The lack of follow-through buying suggested that the market retained a wait-and-see mindset for the presidential election tomorrow. News that Massachusetts announced a stay-at-home order might have also tempered gains in the cyclical stocks.

In earnings news, Clorox (CLX 216.03, +8.78, +4.2%) was a clear winner as the company continued to benefit from strong demand caused by the pandemic. In addition to beating revenue estimates, the company guided FY21 revenue above consensus.

U.S. Treasuries finished mixed and little changed. The 2-yr yield increased one basis point to 0.16%, and the 10-yr yield declined one basis point to 0.85%. The U.S. Dollar Index finished little changed at 94.06.

Reviewing Monday's economic data:

The ISM Manufacturing Index for October checked in at 59.3% (Briefing.com consensus 55.7%), which is an improvement from 55.4% in September and the highest level since September 2018. The dividing line between expansion and contraction is 50.0%.
The key takeaway from the report is the understanding that the New Orders Index hit its highest level (67.9%) since January 2004, signaling that the recovery in the manufacturing sector is running at a fast pace still despite the lack of a new stimulus package, the election uncertainty, and the new wave of coronavirus cases in the U.S. and Europe.
Total construction spending increased 0.3% m/m in September (Briefing.com consensus +0.9%) on the heels of a downwardly revised 0.8% increase (from +1.4%) in August. Total private construction spending rose 0.9% m/m and total public construction spending declined 1.7%.
The key takeaway from the report is that residential construction spending is healthy and the main driver behind total construction spending increasing 1.5% year-over-year.

Looking ahead, investors will receive Factory Orders for September and auto and truck sales for October on Tuesday.

Nasdaq Composite +22.1% YTD
S&P 500 +2.5% YTD
Dow Jones Industrial Average -5.7% YTD
Russell 2000 -6.0% YTD

Market Snapshot
Dow 26924.99 +423.45 (1.60%)
Nasdaq 10957.54 +46.02 (0.42%)
SP 500 3310.24 +40.28 (1.23%)
10-yr Note +3/32 0.852
NYSE Adv 2229 Dec 789 Vol 890.1 mln
Nasdaq Adv 2301 Dec 1125 Vol 3.2 bln

Industry Watch
Strong: Energy, Materials, Industrials, Financials
Weak: Consumer Discretionary, Information Technology

Moving the Market

-- Buy-the-dip activity following the worst week since March, except in the mega-caps

-- Cyclical/value stocks outperform

-- ISM Manufacturing Index for October increased to 59.3% (Briefing.com consensus 55.7%) from 55.4% in September.

WTI crude futures rebound 3%
02-Nov-20 15:25 ET
Dow +440.05 at 26941.59, Nasdaq +16.63 at 10928.15, S&P +38.02 at 3307.98

[BRIEFING.COM] The S&P 500 is up 1.1% amid gains across all 11 of its sectors.

Briefly recapping the sector performances, today belongs to the energy (+4.5%), materials (+3.7%), industrials (+2.8%), and financials (+2.2%) sectors. The communication services (+0.03%), consumer discretionary (+0.1%), and information technology (+0.1%) sectors cling onto fractional gains.

WTI crude futures settled higher by 3.1%, or $1.09, to $36.79/bbl.

[ReturntoSender]

Stocks close higher on Election Day
03-Nov-20 16:15 ET

Dow +554.98 at 27479.97, Nasdaq +202.96 at 11160.50, S&P +58.92 at 3369.16

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

[BRIEFING.COM] The S&P 500 advanced 1.8% on Election Day, as investors bought the dip for the second straight day ahead of tonight's results. The Nasdaq Composite (+1.9%) and Dow Jones Industrial Average (+2.1%) eked out larger gains while the Russell 2000 (+2.9%) legged out the clear advantage.

Ten of the 11 S&P 500 sectors finished in positive territory with each rising more than 1.0%. The industrials (+2.9%), financials (+2.2%), and consumer discretionary (+2.0%) sectors increased at least 2.0%; the energy sector (-0.8%) was the only sector that closed lower despite higher oil prices ($37.62, +0.83, +2.3%).

While there was no specific catalyst today, the gains might have been aided by an acknowledgement that the market was still oversold on a short-term basis. In addition, there was a sense of optimism that an election outcome could be projected tonight or by tomorrow morning (or perhaps some relief that it's almost over).

The positive price action also contributed to continued selling in longer-dated Treasuries, which steepened the curve in a trade that benefited the financials sector. The 2-yr yield was unchanged at 0.16%, while the 10-yr yield increased three basis points to 0.88% to close at its highest level since June 8. The U.S. Dollar Index fell 0.7% to 93.51.

In the tech space, PayPal (PYPL 179.81, -7.95, -4.2%) and Skyworks (SWKS 138.80, -3.32, -2.3%) were notable laggards despite exceeding earnings expectations. PayPal, however, did issue downside Q4 EPS guidance. Arista Networks (ANET 249.49, +33.37, +15.4%) surged 15% following its upbeat earnings results and guidance.

Interestingly, the S&P 500 came within 12 points of its 50-day moving average (3400) shortly before the close. The catalyst that could propel the benchmark index above the key technical level is, of course, the election. As an aside, trading volume was comparable to previous sessions.

Reviewing Tuesday's economic data:

Factory orders for manufactured goods increased 1.1% m/m in September, as expected, following a downwardly revised 0.6% increase (from 0.7%) in August. This is the fifth straight monthly increase in factory orders.
The key takeaway from the report is the affirmation that business spending continued to increase in September, evidenced by a 1.0% increase in new orders for nondefense capital goods excluding aircraft, versus a 2.4% increase in August.

Looking ahead, investors will receive the ISM Non-Manufacturing Index for October, the ADP Employment Change Report for October, the Trade Balance Report for September, and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +24.4% YTD
S&P 500 +4.3% YTD
Dow Jones Industrial Average -3.7% YTD
Russell 2000 -3.3% YTD


Market Snapshot
Dow 27479.97 +554.98 (2.06%)
Nasdaq 11160.50 +202.96 (1.85%)
SP 500 3369.16 +58.92 (1.78%)
10-yr Note -3/32 0.886

NYSE Adv 2407 Dec 606 Vol 861.9 mln
Nasdaq Adv 2688 Dec 697 Vol 3.2 bln


Industry Watch
Strong: Financials, Industrials, Consumer Discretionary

Weak: Energy


Moving the Market
-- Stocks rebounded for the second straight day ahead of Election Day results

-- Buy-the-dip mindset

-- Longer-dated Treasury yields continued to increase



WTI crude futures settle higher while equities trim gains
03-Nov-20 15:25 ET

Dow +524.97 at 27449.96, Nasdaq +194.97 at 11152.51, S&P +55.23 at 3365.47
[BRIEFING.COM] The S&P 500 is trading higher by 1.6% after being up as much as 2.4% earlier today.

One last look at the sector performances shows industrials (+2.6%), financials (+2.1%), and consumer discretionary (+1.9%) still in the lead, while the energy sector (-1.2%) has extended its intraday decline to over 1.0%.

WTI crude futures settled higher by 2.3%, or $0.83, to $37.62/bbl.

[ReturntoSender]

Rotational trade leaves major indices mixed
10-Nov-20 16:10 ET
Dow +262.95 at 29420.86, Nasdaq -159.93 at 11553.78, S&P -4.97 at 3545.67

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

[BRIEFING.COM] The S&P 500 declined 0.1% on Tuesday, as another rotation out of growth stocks and into value stocks contributed to a lackluster performance in the benchmark index. The Nasdaq Composite fell 1.4%, while the Dow Jones Industrial Average (+0.9%) and Russell 2000 (+1.9%) posted solid gains in catch-up trades.

The broad market looked more like the Dow and Russell 2000 today, as advancing issues outpaced declining issues by comfortable margins at the NYSE and Nasdaq. The market remained guided by expectations that the economy and corporate earnings will improve in 2021 due to the medical progress being made to neutralize the coronavirus.

As such, investors felt inclined to increase exposure to economically-sensitive companies and other value-oriented stocks within the energy (+2.5%), consumer staples (+2.0%), industrials (+1.8%), materials (+1.1%), and financials (+0.7%) sectors.

Conversely, many of the mega-cap stocks relinquished their leadership roles for the second straight day. Aside from the Nasdaq, these losses were manifested in the lagging positions of the information technology (-1.9%), consumer discretionary (-1.1%), and communication services (-0.3%) sectors.

Eli Lilly (LLY 146.56, +4.23, +3.0%) provided investors another reason to feel better about the coronavirus after it received emergency use authorization for its antibody treatment. Separately, Boeing (BA 188.69, +9.33, +5.2%) was one of the larger value stocks that outperformed amid news that it could receive FAA approval for the 737 MAX by Nov. 18.

On the earnings front, D.R. Horton (DHI 70.88, +5.92, +9.1%) exceeded quarterly expectations and issued upbeat FY21 revenue guidance. Beyond Meat (BYND 125.01, -25.49, -16.9%) provided disappointing Q3 earnings results, sending shares down 17%.

U.S. Treasuries finished near their flat lines in a quiet session, leaving longer-dated yields at recent highs. The 2-yr yield was flat at 0.18%, and the 10-yr yield was flat at 0.96%. The U.S. Dollar Index increased 0.1% to 92.81. WTI crude futures rose 2.6%, or $1.06, to $41.37/bbl.

Reviewing Tuesday's economic data:

The NFIB Small Business Optimism Index for October was unchanged at 104.0.
September job openings increased to 6.436 mln from a revised 6.352 mln in August (from 6.493 mln).

Looking ahead, investors will receive the weekly MBA mortgage Applications Index on Wednesday.

Nasdaq Composite +28.8% YTD
S&P 500 +9.7% YTD
Dow Jones Industrial Average +3.1% YTD
Russell 2000 +4.1% YTD

Market Snapshot
Dow 29420.86 +262.95 (0.90%)
Nasdaq 11553.78 -159.93 (-1.37%)
SP 500 3545.67 -4.97 (-0.14%)
10-yr Note -23/32 0.949
NYSE Adv 1995 Dec 1011 Vol 1.2 bln
Nasdaq Adv 2077 Dec 1369 Vol 4.6 bln

Industry Watch
Strong: Energy, Materials, Industrials, Consumer Staples, Utilities
Weak: Information Technology, Consumer Discretionary, Communication Services

Moving the Market

-- Rotational trade left major indices mixed

-- Value outperformed growth

-- Expectations economy and corporate earnings will improve in 2021

WTI crude settles above $41 per barrel
10-Nov-20 15:30 ET
Dow +281.19 at 29439.10, Nasdaq -150.98 at 11562.73, S&P -2.04 at 3548.60

[BRIEFING.COM] The S&P 500 is trading lower by just 0.1% and continues to look up to the Dow (+1.0%) and Russell 2000 (+1.9%).

One last look at the sector performances shows consumer staples (+2.1%) and industrials (+2.1%) up more than 2.0%, followed by energy (+1.8%) and utilities (+1.5%). The information technology (-1.9%), consumer discretionary (-1.1%), and communication services (-1.3%) sectors underperform in the red.

WTI crude futures settled higher by 2.6%, or $1.06, to $41.37/bbl.

[ReturntoSender]

Market closes lower in rare down day this month
12-Nov-20 16:15 ET
Dow -317.46 at 29080.11, Nasdaq -76.84 at 11709.51, S&P -35.65 at 3537.15

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

[BRIEFING.COM] The S&P 500 declined 1.0% on Thursday, as recovery concerns contributed to losses across all 11 sectors and defensive-positioning in Treasuries. The Dow Jones Industrial Average fell 1.1%, and the Russell 2000 fell 1.6%. The Nasdaq Composite was the relative outperformer with a 0.7% decline.

The day started with slight losses amid profit-taking activity in cyclical sectors like energy (-3.4%), materials (-2.2%), and financials (-1.7%) following news that the U.S. recorded new highs for daily coronavirus cases and hospitalizations. Selling picked up more broadly throughout the day on stimulus hurdles and commentary from Fed Chair Powell.

Specifically, Senate Majority Leader McConnell reiterated he was unwilling to pass a larger stimulus package and preferred a smaller targeted bill. This was in response to Senate Minority Leader Schumer (D-NY) rejecting the Senate Republicans' stimulus bill and saying the $2.2 trillion HEROES Act should be the starting point.

Unless lawmakers make concessions, this persistent disagreement suggests that the market might have to wait until at least Jan. 5 for a better indication on the size of a stimulus deal. That's because of the two election runoffs in Georgia that will determine if Republicans retain their majority in the Senate.

What's more, Fed Chair Powell warned that the economy will be challenging for the next few months amid uncertainty surrounding the distribution of a vaccine and the negative effects the coronavirus is having on households and businesses. On a related note, the City of Chicago issued a stay at home "advisory" for 30 days.

All in all, today's news flow wasn't constructive for a market some would describe as overextended in terms of pricing in a recovery. Prior to today, the S&P 500 was up 9.3% this month. Defensive undertones were manifested in the relative outperformances of the consumer staples sector (-0.2%) and the mega-cap/growth/stay-at-home stocks.

The retreat in longer-dated Treasury yields was a supportive consideration for the highly-valued growth stocks. Increased demand sent the 10-yr yield down eight basis points to 0.89%, while the 2-yr yield decreased one basis point to 0.17%. The U.S. Dollar Index decreased 0.1% to 92.95. WTI crude futures decreased 0.8% to $41.49/bbl.

Reviewing Thursday's economic data:

The Consumer Price Index was unchanged month-over-month in October, as was the core Consumer Price Index, which excludes food and energy. The Briefing.com consensus estimate called for both to be up 0.2%.
The key takeaway from the report is that the trend in consumer inflation moved away from the Fed's aim of lifting the average inflation rate, making it an interest-rate friendly report.
Initial jobless claims decreased by 48,000 for the week ending November 7 to 709,000 (Briefing.com consensus 740,000) while continuing claims for the week ending October 31 decreased by 436,000 to 6.786 million.
While the downward trend in initial claims is nice to see, the key takeaway is that market participants have reason to think, with the announcement of new curfews and restrictions on business activity in many cities and states due to rising coronavirus infections, that there could be a pickup in jobless claims in coming weeks.
The Treasury Budget showed a $284 bln deficit in October, which begins the government's fiscal 2021.
The key takeaway from the report is that it shows the very high cost of dealing with the fallout from the pandemic, as the deficit this October was more than twice the deficit seen in October 2019.

Looking ahead, investors will receive the Producer Price Index for October and the preliminary Univ. of Michigan Index of Consumer Sentiment for November on Friday.

Nasdaq Composite +30.5% YTD
S&P 500 +9.5% YTD
Russell 2000 +2.4% YTD
Dow Jones Industrial Average +1.9% YTD

Market Snapshot
Dow 29080.11 -317.46 (-1.08%)
Nasdaq 11709.51 -76.84 (-0.65%)
SP 500 3537.15 -35.65 (-1.00%)
10-yr Note +10/32 0.879
NYSE Adv 741 Dec 2251 Vol 1.0 bln
Nasdaq Adv 1105 Dec 2324 Vol 3.8 bln

Industry Watch
Strong: Consumer Staples, Communication Services
Weak: Energy, Financials, Utilities, Industrials, Materials

Moving the Market

-- Nasdaq is the relative outperformer amid gains in mega-cap/stay-at-home/growth stocks

-- Cyclical stocks continue to succumb to profit taking

-- Renewed stimulus hurdles

-- Another record day for coronavirus cases/hospitalizations in U.S.

WTI crude futures settle slightly lower
12-Nov-20 15:25 ET
Dow -402.91 at 28994.66, Nasdaq -90.48 at 11695.87, S&P -44.57 at 3528.23

[BRIEFING.COM] The S&P 500 continues to trade lower by 1.2% but remains higher by 0.6% for the week.

One last look at the S&P 500 sectors shows red across the board. The energy (-3.5%), materials (-2.5%), financials (-2.1%), and utilities (-2.1%) sectors are down more than 2.0%, while the consumer staples sector is down the least with a 0.5% decline.

WTI crude futures settled lower by 0.8%, or $0.32, to $41.49/bbl.

[ReturntoSender]

New closing highs for the S&P 500 and Russell 2000
13-Nov-20 16:20 ET
Dow +399.64 at 29479.75, Nasdaq +119.70 at 11829.21, S&P +48.14 at 3585.29

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

[BRIEFING.COM] The S&P 500 (+1.4%) and Russell 2000 (+2.1%) closed at new record highs on Friday, as cyclical and small-cap stocks claimed the new leadership roles in this part of the bull market. The Dow Jones Industrial Average gained 1.4%, and the Nasdaq Composite gained 1.0%.

The gains were broad and steady with all 11 S&P 500 sectors opening and closing in positive territory. Sector gains ranged from 0.9% (utilities) to 3.8% (energy), and all 30 Dow components also finished higher. The industrials (+2.2%) and real estate (+2.3%) sectors were other standouts.

The market was aided by positive reactions to better-than-expected earnings reports and/or guidance from companies including Cisco (CSCO 41.40, +3.73, +7.1%), Walt Disney (DIS 138.36, +2.84, +2.1%), Applied Materials (AMAT 72.81, +3.01, +4.3%), and DraftKings (DKNG 42.84, +1.59, +3.9%).

Unlike yesterday, investors were more sanguine about the record number of U.S. coronavirus cases despite the lack of progress towards a stimulus deal and renewed restrictions from cities and states. Presumably, they remained assured that the rough road ahead will smooth itself out in 2021 because of a widespread vaccine and eventual stimulus.

This economic optimism was mainly manifested in equities since oil prices ($40.12/bbl, -0.96, -2.3%) settled lower by 2%, gold futures ($1886.80/ozt, +11.30, +0.7%) settled higher, and U.S. Treasuries traded relatively unchanged all session.

The 2-yr yield finished flat at 0.17%, and the 10-yr yield increased one basis point to 0.89%. The U.S. Dollar Index decreased 0.3% to 92.73. The CBOE Volatility Index dropped 8.9% to 23.10, as the bullish price action in equities continued to reduce hedging interest against a downturn in stocks.

Reviewing Friday's economic data:

The Producer Price Index (PPI) report for October was mixed, featuring a higher than expected 0.3% m/m increase in the index for final demand (Briefing.com consensus +0.2%) and a lower than expected 0.1% m/m increase in the index for final demand excluding food and energy (Briefing.com consensus +0.2%).
The muted response to the PPI report is owed in part to the understanding that yesterday's Consumer Price Index for October was on the soft side. Another key takeaway is that this Producer Price Index, like yesterday's Consumer Price Index, was an interest-rate friendly report as it showed tame year-over-year increases of 0.5% and 1.1%, respectively, for final demand and final demand excluding food and energy.
The preliminary University of Michigan Index of Consumer Sentiment for November checked in at 77.0 (Briefing.com consensus 79.0), down from the final reading of 81.8 for October and 93.2 for the same period a year ago.
The key takeaway from the report is that the decline in sentiment stemmed from concerns about the presidential election and the resurgence in covid infections and deaths.

Looking ahead, investors will receive the Empire State Manufacturing Survey for November on Monday.

Nasdaq Composite +31.8% YTD
S&P 500 +11.0% YTD
Russell 2000 +4.5% YTD
Dow Jones Industrial Average +3.3% YTD

Market Snapshot
Dow 29479.75 +399.64 (1.37%)
Nasdaq 11829.21 +119.70 (1.02%)
SP 500 3585.29 +48.14 (1.36%)
10-yr Note -1/32 0.893
NYSE Adv 2500 Dec 519 Vol 887.0 mln
Nasdaq Adv 2570 Dec 897 Vol 3.6 bln

Industry Watch
Strong: Energy, Industrials, Real Estate, Materials, Financials
Weak: Utilities, Information Technology

Moving the Market

-- S&P 500 and Russell 2000 closed at record highs

-- Cyclical and small-cap stocks led the broad-based advance

-- Prevailing optimism about a vaccine and economic growth in 2021

-- Technology stocks underperformed, except Cisco (CSCO) following its earnings report

WTI crude futures settle lower by 2%
13-Nov-20 15:30 ET
Dow +364.00 at 29444.11, Nasdaq +105.06 at 11814.57, S&P +42.95 at 3580.10

[BRIEFING.COM] The S&P 500 continues to trade higher by 1.2% and is trying to set a new closing record.

One last look at the S&P 500 sectors shows green across the board. The energy sector (+3.7%) is in a league of its own today with a 3.7% gain. Following suit are the real estate (+2.0%), industrials (+1.9%), and financials (+1.5%) sectors.

WTI crude futures settled lower by 2.3%, or $0.96, to $40.12/bbl.

[ReturntoSender]

Stocks close lower to temper recent bullishness
18-Nov-20 16:15 ET

Dow -344.93 at 29438.36, Nasdaq -97.74 at 11801.52, S&P -41.74 at 3567.93

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

[BRIEFING.COM] The S&P 500 fell 1.2% on Wednesday for a second straight decline that tempered the recent bullishness in the market. The Nasdaq Composite declined 0.8%, the Dow Jones Industrial Average declined 1.2%, and the Russell 2000 declined 1.3% after setting an intraday record high early in the session.

For most of the day, the market struggled to gain any traction despite a host of positive news related to a vaccine, economic data, and corporate earnings. Presumably, this was because the market was pricing in a lot of the good news in its record-setting rally this month and needed to consolidate those gains.

Selling appeared to pick up late in the afternoon after New York Governor Cuomo announced that New York City public schools will temporarily close due to surging coronavirus cases. Mr. Cuomo previously warned this was a legitimate possibility, but the decision served as a convenient excuse to curb risk sentiment today.

All 11 S&P 500 sectors finished in negative territory, led lower by the energy (-2.9%), utilities (-1.9%), health care (-1.8%), and real estate (-1.7%) sectors with losses over 1.5%. The industrials sector (-0.5%) was the relative outperformer today.

The industrials sector and other cyclical groups appeared to draw early support from Pfizer (PFE 36.31, +0.27, +0.8%) and BioNTech (BNTX 90.44, +3.51, +4.0%) indicating that their COVID-19 vaccine is 95% effective after concluding their Phase 3 study. The companies will soon file an FDA application for emergency use authorization.

Separately, October housing starts increased a faster-than-expected seasonally adjusted annual rate of 1.53 million units (Briefing.com consensus 1.445 mln), Target (TGT 166.85, +3.81, +2.3%) reported strong quarterly results, and Tesla (TSLA 486.64, +45.03, +10.2%) was upgraded to Overweight from Equal-Weight at Morgan Stanley.

Tesla and Target reacted positively to their related news, but investors took profits in Boeing (BA 203.30, -6.75, -3.2%) and Lowe's (LOW 146.72, -13.14, -8.2%) despite some good news. The FAA approved the 737 MAX safe to fly again, and Lowe's beat top and bottom-line estimates but its Q4 EPS guidance may have disappointed.

U.S. Treasuries finished near their flat lines in a lackluster session for bonds. The 2-yr yield and 10-yr yield increased one basis point each to 0.17% and 0.88%, respectively. The U.S. Dollar Index finished flat at 92.40. WTI crude futures gained 0.9%, or $0.37, to $41.80/bbl following a smaller-than-expected weekly inventory build.

Reviewing Wednesday's economic data:

Housing starts in October increased 4.9% m/m (and 14.2% yr/yr) to a seasonally adjusted annual rate of 1.53 million units (Briefing.com consensus 1.445 mln), hitting their highest pace since February when they stood at 1.567 million. Building permits were flat at 1.545 million (Briefing.com consensus 1.55 mln), but remained ahead of the 1.536 million pace registered in January.
The key takeaway from the report is that there was continued strength in single-family starts, which jumped 6.4% m/m to a seasonally adjusted annual rate of 1.179 million. That is 14.5% higher than the pace for single-family starts seen in February and reflects the strong demand for new homes that has been driven by the pandemic, low mortgage rates, and the tight supply of existing homes for sale.
The weekly MBA Mortgage Applications Index decreased 0.3% following a 0.5% decline in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, Existing Home Sales for October, the Philadelphia Fed Index for November, and the Conference Board's Leading Economic Index for October on Thursday.

Nasdaq Composite +31.5% YTD
S&P 500 +10.4% YTD
Russell 2000 +6.0% YTD
Dow Jones Industrial Average +3.2% YTD


Market Snapshot
Dow 29438.36 -344.93 (-1.16%)
Nasdaq 11801.52 -97.74 (-0.82%)
SP 500 3567.93 -41.74 (-1.16%)
10-yr Note -23/32 0.877

NYSE Adv 1130 Dec 1888 Vol 989.8 mln
Nasdaq Adv 1349 Dec 2153 Vol 4.6 bln


Industry Watch
Strong: Industrials

Weak: Energy, Health Care, Utilities, Real Estate


Moving the Market
-- Recent bullishness is tempered with 1% losses in major indices

-- NYC announced temporary school closures due to the coronavirus

-- Market unable to gain traction despite good news regarding a vaccine, corporate earnings, and economic data



WTI crude futures settle in the green
18-Nov-20 15:25 ET

Dow -87.63 at 29695.66, Nasdaq +16.87 at 11916.13, S&P -8.22 at 3601.45
[BRIEFING.COM] The S&P 500 is down 0.3% and has traded within yesterday's trading range. The benchmark index is on pace to close lower for the second straight day in a healthy consolidation trend.

One last look at the S&P 500 sectors shows energy (-1.2%), utilities (-1.1%), and health care (-0.9%) down the most, while the industrials (+0.4%), consumer discretionary (+0.1%), and materials (+0.1%) sectors cling onto small gains.

WTI crude futures settled higher by 0.9%, or $0.37, to $41.80/bbl following a smaller-than-expected build in weekly crude inventories.

[ReturntoSender]

Major indices close higher in quiet advance
19-Nov-20 16:10 ET
Dow +44.81 at 29483.17, Nasdaq +103.11 at 11904.63, S&P +14.08 at 3581.87

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

[BRIEFING.COM] The S&P 500 increased 0.4% on Thursday and overcame a sluggish start as buyers quietly eased their way back into the market. The Nasdaq Composite (+0.9%) and Russell 2000 (+0.8%) outperformed while the Dow Jones Industrial Average increased just 0.2%.

For most of the day, the S&P 500 floated around its flat line, while the Nasdaq narrowed the monthly performance gap between it and the benchmark index amid strength in technology stocks. The S&P 500 information technology sector rose 0.8%, but the energy sector (+1.5%) advanced the most as the gains started to broaden out in the afternoon.

The market appeared to get a small bump after Senate Minority Leader Schumer reportedly said Senate Majority Leader McConnell agreed to restart stimulus talks. Not the most surprising news since Mr. McConnell previously said he wanted a smaller deal before year-end, but good news, nonetheless.

The utilities (-1.0%) and health care (-0.1%) sectors, which have underperformed this week, failed to participate in today's advance.

In other positive developments, Phase 2 vaccine trial data from the AstraZeneca (AZN 54.03, +0.04, +0.1%)/Oxford collaboration showed encouraging immune responses in older patients, and October existing home sales increased at a faster-than-expected, seasonally adjusted annual rate of 6.85 million (Briefing.com consensus 6.49 million). Market reactions were muted, but these were good for sentiment reasons.

The Philadelphia Semiconductor Index (+1.6%) was another pocket of strength today. NVIDIA (NVDA 537.61, +0.46, +0.1%) beat top and bottom-line estimates and issued upside Q4 revenue guidance; Cree (CREE 81.00, +8.39, +11.6%) was upgraded to Overweight from Neutral at JP Morgan with a $90 price target.

Longer-dated Treasuries increased again, pushing yields even lower from last week's highs. The 2-yr yield was flat at 0.17%, and the 10-yr yield decreased three basis points to 0.85%. The U.S. Dollar Index decreased 0.1% to 92.27. WTI crude futures decreased 0.1% to $41.75/bbl.

Reviewing Thursday's economic data:

Initial claims for the week ending November 14 rose by 31,000 to 742,000 (Briefing.com consensus 720,000). Continuing claims for the week ending November 7 decreased by 429,000 to 6.372 million.
The key takeaway from the report is that it covers the period in which the survey for the November employment report is conducted. The jump in initial claims, which are still exceedingly high, will contribute to expectations for a slowdown in job growth in November.
Existing home sales increased 4.3% m/m in October to a seasonally adjusted annual rate of 6.85 million (Briefing.com consensus 6.49 million). October marked the fifth consecutive month of positive sales gains.
The key takeaway from the report is that it reflects robust demand for existing homes. That is constraining supply even further, which is going to be a pressure point that feeds higher prices, shuts out an increasing number of first-time buyers, and bolsters the prospects for new home sales.
The Conference Board's Leading Economic Index increased 0.7% m/m in October, as expected, marking the sixth straight month of positive readings. The index for September was unrevised at +0.7%.
The key takeaway from the report is that strength has become more widespread among the leading indicators.
The Philadelphia Fed Index decreased to 26.3 in November (Briefing.com consensus 25.0) from 32.3 in October.

Investors will not receive any notable economic data on Friday.

Nasdaq Composite +32.7% YTD
S&P 500 +10.9% YTD
Russell 2000 +6.9% YTD
Dow Jones Industrial Average +3.3% YTD

Market Snapshot
Dow 29483.17 +44.81 (0.15%)
Nasdaq 11904.63 +103.11 (0.87%)
SP 500 3581.87 +14.08 (0.39%)
10-yr Note +2/32 0.848
NYSE Adv 1940 Dec 1080 Vol 884.5 mln
Nasdaq Adv 2243 Dec 1205 Vol 5.2 bln

Industry Watch
Strong: Information Technology, Energy
Weak: Utilities, Health Care

Moving the Market

-- Quiet advance for the major indices, energy and tech stocks outperformed

-- Stimulus talks reportedly resumed

-- Encouraging vaccine news, housing data, earnings reports

WTI crude futures settle little changed
19-Nov-20 15:25 ET
Dow +5.03 at 29443.39, Nasdaq +91.16 at 11892.68, S&P +10.15 at 3578.08

[BRIEFING.COM] The S&P 500 continues to trade higher by 0.3%, and the Russell 2000 is up 0.4%.

One last look at the S&P 500 sectors shows energy (+1.2%), information technology (+0.7%), and consumer discretionary (+0.4%) leading the advance, while the utilities (-1.1%) and health care (-0.2%) sectors sit this one out.

WTI crude futures settled lower by 0.1%, or $0.05, to $41.75/bbl.

[ReturntoSender]

Stocks close higher in recovery and momentum trade
23-Nov-20 16:10 ET
Dow +327.79 at 29591.21, Nasdaq +25.66 at 11880.55, S&P +20.05 at 3577.59

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

[BRIEFING.COM] The S&P 500 gained 0.6% on Monday in a recovery trade fueled by momentum and another round of encouraging COVID-19 vaccine/treatment news. The Russell 2000 rose 1.9% to new record highs, and the Dow Jones Industrial Average rose 1.1%. The Nasdaq Composite underperformed with a 0.2% gain.

Briefly, AstraZeneca (AZN 54.70, -0.60, -1.1%) and the University of Oxford said their vaccine has an efficacy rate of up to 90%, and Regeneron Pharma (REGN 523.61, +4.87, +0.9%) said it received emergency use authorization from the FDA for its antibody cocktail. While AZN and REGN shares traded mixed, the value, cyclical, and small-cap stocks took the news in stride.

The S&P 500 energy sector surged another 7.1% to extend its monthly rebound rally to 32.0%, followed by respectable intraday performances from the financials (+1.9%), industrials (+1.6%), and materials (+0.9%) sectors. Advancing issues outpaced declining issues by a 3:1 margin at the NYSE and a 2:1 margin at the Nasdaq.

On the downside, the health care (-0.3%), real estate (-0.3%), information technology (-0.03%), and communication services (-0.02%) sectors held back the benchmark index, which briefly turned negative in the morning. Stay-at-home stocks also underperformed.

Other positive factors today included encouraging preliminary Markit PMI and Services reports for November, the NRF expecting holiday sales to grow between 3.6-5.2%, versus 2019; and TSA data showing the highest number of airline passengers through TSA checkpoints since mid-March on Sunday.

Separately, the market received a temporary boost in the afternoon after The Wall Street Journal reported that Joe Biden will nominate former Fed Chair Janet Yellen as Treasury Secretary. Ms. Yellen has been vocal about the need for more fiscal stimulus, and there are expectations that the Senate would approve her nomination.

U.S. Treasuries finished on a lower note, as the positive news flow aided risk sentiment and helped money flow out of defensive assets. The 2-yr yield increased two basis points to 0.17%, and the 10-yr yield increased three basis points to 0.86%. The U.S. Dollar Index increased 0.2% to 92.54. WTI crude futures 2.2%, or $0.92, to $43.09/bbl.

Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for November, the FHFA Housing Price Index for November, and the S&P Case-Shiller Home Price Index for September on Tuesday.

Nasdaq Composite +32.4% YTD
S&P 500 +10.7% YTD
Russell 2000 +9.0% YTD
Dow Jones Industrial Average +3.7% YTD

Market Snapshot
Dow 29591.21 +327.79 (1.12%)
Nasdaq 11880.55 +25.66 (0.22%)
SP 500 3577.59 +20.05 (0.56%)
10-yr Note -2/32 0.850
NYSE Adv 2363 Dec 723 Vol 986.8 mln
Nasdaq Adv 2346 Dec 1210 Vol 5.2 bln

Industry Watch
Strong: Energy, Industrials, Financials, Materials
Weak: Health Care, Real Estate, Information Technology, Communication Services

Moving the Market

-- Another round of positive news on the COVID-19 vaccine/treatment front; momentum trading

-- Small-cap, value, and cyclical stocks outperformed, while mega-caps and stay-at-home stocks underperformed

-- Joe Biden will reportedly nominate former Fed Chair Janet Yellen as Treasury Secretary

[ReturntoSender]

Soft ending to an incredibly strong month
30-Nov-20 16:15 ET
Dow -271.73 at 29638.58, Nasdaq -7.11 at 12198.65, S&P -16.72 at 3621.65

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

[BRIEFING.COM] The S&P 500 declined 0.5% on Monday to end a spectacular month on a soft note. An intraday recovery in technology stocks, however, helped lift the benchmark index and Nasdaq Composite (-0.1%) off session lows. The Dow Jones Industrial Average (-0.9%) and Russell 2000 (-1.9%) underperformed.

The market struggled despite Moderna (MRNA 152.74, +25.71, +20.2%) providing another encouraging vaccine update and Apple (AAPL 119.05, +2.46, +2.1%) receiving an analyst upgrade to Buy from Hold at Loop Capital. The information technology (+0.7%) and health care (+0.3%) sector did benefit, but nine of the 11 S&P 500 sectors closed lower.

The energy sector dropped 5.4%, largely due to profit-taking interest and some angst that OPEC+ might not agree to extend production cuts for three months starting Jan. 1. Interestingly, oil prices ($45.37, -0.08, -0.2%) were less affected by these concerns.

As for the vaccine news, Moderna said its vaccine was 94.1% effective in preventing COVID-19 and 100% effective in protecting against serious outcomes. The company said it would apply with the FDA today for emergency use authorization.

Note, today was the fourth Monday in a row that the market received a positive vaccine update, but the every update since the first one has had a diminishing effect on the major indices, suggesting a lot of the news was already priced in. To be fair though, market conditions were also ripe for month-end profit taking.

In other corporate news, S&P Global (SPGI 351.78, +10.21, +3.0%) agreed to merge with IHS Markit (INFO 99.46, +6.88, +7.4%) in an all-stock transaction that values IHS at $44 billion, and Nikola (NKLA 20.41, -7.52, -26.9%) shares tanked 27% after General Motors (GM 43.84, -1.22, -2.7%) announced a revised partnership that excludes an equity stake.

Separately, reports indicated that the Trump administration is planning on adding China's largest semiconductor foundry and one of its largest oil companies to a defense blacklist. The Philadelphia Semiconductor Index rose 1.2% despite the news, as the market held back typical retaliation concerns.

U.S. Treasuries finished little changed in a muted session. The 2-yr yield declined one basis point to 0.14%, and the 10-yr yield was flat at 0.84%. The U.S. Dollar Index increased 0.2% to 92.00.

Reviewing Monday's economic data:

The Chicago PMI for November decreased to 58.2% (Briefing.com consensus 58.1%) from 61.1% in October.
Pending home sales decreased 1.1% in October (Briefing.com consensus +1.0%) following a revised 2.0% decline in September (-2.2%).

Looking ahead, investors will receive the ISM Manufacturing Index for November, Construction Spending for October, and auto and truck sales for November on Tuesday.

Nasdaq Composite +36.0% YTD
S&P 500 +12.1% YTD
Russell 2000 +9.1% YTD
Dow Jones Industrial Average +3.9% YTD

Market Snapshot
Dow 29638.58 -271.73 (-0.91%)
Nasdaq 12198.65 -7.11 (-0.06%)
SP 500 3621.65 -16.72 (-0.46%)
10-yr Note 0/32 0.845
NYSE Adv 953 Dec 2116 Vol 1.9 bln
Nasdaq Adv 1325 Dec 2258 Vol 7.5 bln

Industry Watch
Strong: Information Technology, Health Care
Weak: Energy, Financials, Utilities

Moving the Market

-- Profit-taking interest in the energy sector and other cyclical parts of market

-- Moderna (MRNA) provided another encouraging vaccine update

-- Relative strength in the technology and health care sectors

WTI crude futures settle slightly lower
30-Nov-20 15:30 ET
Dow -361.61 at 29548.70, Nasdaq -17.40 at 12188.36, S&P -22.53 at 3615.84

[BRIEFING.COM] The S&P 500 is down 0.6% while the Nasdaq (-0.1%) has slipped into the red.

One last look at the S&P 500 sectors shows information technology (+0.6%) building on its intraday rebound after being down 1.1% earlier today. The energy sector is down 4.3% amid profit-taking interest (it's still up 28% this month) and angst that OPEC+ might not extend production cuts by another three months starting Jan. 1.

The latter didn't affect oil prices too much today. WTI crude futures settled lower by 0.2%, or $0.08, to $45.37/bbl.

[ReturntoSender]

Record-setting advance falls short on Pfizer headline
03-Dec-20 16:15 ET
Dow +85.73 at 29969.46, Nasdaq +27.82 at 12377.10, S&P -2.29 at 3666.73

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

[BRIEFING.COM] The S&P 500 declined 0.1% on Thursday, as its record-setting hopes were interrupted by news that Pfizer (PFE 40.10, -0.70, -1.7%) is aiming to distribute only half of its COVID-19 vaccines it originally planned due to supply chain issues. Prior to the late-session news, the benchmark index was trading at all-time highs with a 0.4% gain.

The Russell 2000 (+0.6%), Dow Jones Industrial Average (+0.3%), and Nasdaq Composite (+0.2%) still closed higher, as investors had broadened their risk exposure outside the S&P 500 throughout the day.

Generally, the Pfizer headline was a good excuse to temper the pervasive bullish sentiment and upwards momentum in the market. Six of the 11 S&P 500 sectors slipped into negative territory on a closing basis, led lower by the utilities (-1.1%) and materials (-0.7%) sectors. The energy (+1.1%) and real estate (+0.7%) sectors outperformed.

For most of the day, investors were relatively pleased with the slate of macro news and the big gains in Boeing (BA 237.20, +13.35, +6.0%), Tesla (TSLA 593.38, +24.46, +4.3%), and many of the software companies following their earnings reports.

Boeing was boosted by news that Ryanair is ordering 75 737 MAX planes, and Tesla was upgraded to Buy from Hold at Goldman Sachs with a Street-high $780 price target. Software companies Snowflake (SNOW 339.89, +47.20, +16.1%), Zscaler (ZS 185.61, +38.82, +26.5%), and CrowdStrike (CRWD 161.19, +19.35, +13.6%) were among the earnings winners.

Positive macro news included Senate Majority Leader McConnell observing that a stimulus compromise is "within reach," weekly initial jobless claims decreasing more than expected to 712,000 (Briefing.com consensus 775,000), and the November ISM Non-Manufacturing Index (55.9%) denoting a sixth straight month of expansionary activity (over 50.0%).

We could nitpick that Senate Minority Leader Schumer (D-NY) didn't believe that Mr. McConnell was in a deal-making mood, jobless claims remained elevated, or that the ISM reading was less than expected, but a bull market tends to look at things positively. As such, despite the Pfizer-induced blip, today was a relatively constructive day.

The 2-yr yield decreased one basis point to 0.15%, and the 10-yr yield decreased three basis points to 0.92%. The U.S. Dollar Index fell 0.5% to 90.70 -- its lowest level since April 2018. WTI crude futures gained 0.8%, or $0.38, to $45.66/bbl after OPEC+ agreed to a smaller-than-expected 500K bpd production increase, starting in January.

Reviewing Thursday's economic data:

Initial claims for the week ending November 28 decreased by 75,000 to 712,000 (Briefing.com consensus 775,000) -- the lowest since the pandemic started -- while continuing claims for the week ending November 21 decreased by 569,000 to 5.520 million.
The key takeaway is that there were still 712,000 initial jobless claims and 5.520 million continuing claims. In the same weeks a year ago, the totals stood at 206,000 and 1.697 million, respectively.
The ISM Non-Manufacturing Index slipped to 55.9% in November (Briefing.com consensus 56.3%) from 56.6% in October. The dividing line between expansion and contraction is 50.0%. The November reading reflects a slightly slower pace of expansion than the prior month but the sixth straight reading above 50.0%.
The key takeaway from the report is that it didn't reflect any significant weakness in the services sector in November despite the election uncertainty, the surge in coronavirus cases, and restrictions implemented to help contain the spread of the coronavirus.
The Markit Services PMI for November was revised higher to 58.4 from 57.7 in the preliminary reading.

Looking ahead, investors will receive the Employment Situation Report for November, the Trade Balance for October, and Factory Orders for October on Friday.

Nasdaq Composite +37.9% YTD
S&P 500 +13.5% YTD
Russell 2000 +10.8% YTD
Dow Jones Industrial Average +5.0% YTD

Market Snapshot
Dow 29969.46 +85.73 (0.29%)
Nasdaq 12377.10 +27.82 (0.23%)
SP 500 3666.73 -2.29 (-0.06%)
10-yr Note +2/32 0.910
NYSE Adv 2015 Dec 1061 Vol 980.0 mln
Nasdaq Adv 2150 Dec 1388 Vol 5.1 bln

Industry Watch
Strong: Energy, Real Estate
Weak: Utilities, Materials

Moving the Market

-- S&P 500 hits all-time high but falls short of record close

-- Pfizer (PFE) aiming to ship only half of its COVID-19 vaccines it originally planned due to supply chain issues -- The Wall Street Journal

-- Positive stimulus chatter

-- Big gains in many software companies following earnings reports

WTI crude futures settle higher
03-Dec-20 15:25 ET
Dow +219.05 at 30102.78, Nasdaq +71.73 at 12421.01, S&P +12.76 at 3681.78

[BRIEFING.COM] The buyers have returned to send the S&P 500 back to session highs with a 0.4% gain. Any positive finish would be good for a record close.

One last look at the S&P 500 sectors shows energy (+2.2%), real estate (+1.1%), and industrials (+1.0%) in the lead, while the utilities (-0.8%), materials (-0.2%), and communication services (-0.1%) sectors underperform in negative territory.

WTI crude futures settled today's session higher by 0.8%, or $0.38, to $45.66/bbl. On a related note, OPEC+ agreed to a smaller-than-expected 500K bpd production increase, starting in January.

[ReturntoSender]

Stock market extends reach into record territory
04-Dec-20 16:10 ET
Dow +248.74 at 30218.20, Nasdaq +87.05 at 12464.15, S&P +32.40 at 3699.13

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

[BRIEFING.COM] Each of the major indices set intraday and closing highs on Friday, as the market remained convinced in the 2021 recovery narrative despite the mixed November employment report. The Russell 2000 rose 2.4%, pulling ahead of the S&P 500 (+0.9%), Dow Jones Industrial Average (+0.8%), and Nasdaq Composite (+0.7%).

Sector gains were paced by the S&P 500 energy sector, which tacked on another 5.4% gain to its rebound effort. The materials (+2.0%), real estate (+1.3%), and industrials (+1.2%) sectors were next in line, while the utilities (-1.0%) and consumer discretionary (-0.1%) sectors closed lower.

The headline jobs data featured a smaller-than-expected 245,000 addition to nonfarm payrolls (Briefing.com consensus of 650,000) and a 6.7% unemployment rate (Briefing.com consensus 6.9%), versus 6.9% in October. Digging deeper, permanent job losers increased by 59,000 to 3.743 million while those out of work for 27 weeks or more accounted for 36.9% of the unemployed in November.

The market was undeterred by the slowdown in hiring and the increase in permanent job losers since the data would presumably force lawmakers to concede their differences in stimulus talks. House Speaker Pelosi said she talked with Senate Majority Leader McConnell about attaching a smaller stimulus plan to the year-end spending bill.

Notably, longer-dated Treasury yields retreated immediately after the release of the employment report in an affirmation of the market's upbeat economic outlook. The 2s10s spread widened by six basis points today to reach a fresh 2020 high of 83 bps.

The 2-yr yield decreased one basis point to 0.14%, while the 10-yr yield increased five basis points to 0.97%. The U.S. Dollar Index increased 0.1% to 90.76. WTI crude futures rose 1.3%, or $0.59, to $46.25/bbl.

In the growth-stock space, semiconductor and software stocks picked up the slack for the missing leadership from the top five mega-caps.

The Philadelphia Semiconductor Index (+2.8%) was aided by an encouraging sales report from the Semiconductor Industry Association, while DocuSign (DOCU 243.22, +12.21, +5.3%) and smaller software companies reported better-than-expected earnings reports.

Reviewing Friday's economic data, which featured the Employment Situation Report for November:

November nonfarm payrolls increased by 245,000 (Briefing.com consensus 650,000). November unemployment rate was 6.7% (Briefing.com consensus 6.9%), versus 6.9% in October. November average hourly earnings increased 0.3% (Briefing.com consensus 0.1%) versus 0.1% in October.
The slowdown in hiring and the increase in permanent job losers are key takeaways from the report for the market, which is apt to infer that Congress will see those trends as a basis for agreeing to more stimulus to pre-empt a benefits cliff on December 31.
The U.S. trade deficit widened to $63.1 billion in October (Briefing.com consensus -$65.2 billion) from an upwardly revised $62.1 billion (from -$63.9 billion) in September. October exports were $4.0 billion more than September exports. October imports were $5.0 billion more than September imports.
The key takeaway from the report is the rise seen in both imports and exports, as that is symptomatic of a pickup in global trade and economic activity.
Factory orders for manufactured goods increased 1.0% m/m in October (Briefing.com consensus 0.8%) following an upwardly revised 1.3% increase (from 1.1%) in September. This is the sixth straight monthly increase in factory orders.
The key takeaway from the report is the affirmation that business spending continued to increase in October, evidenced by a 0.8% increase in new orders for nondefense capital goods excluding aircraft, versus a 1.9% increase in September.

Looking ahead, investors will receive the Consumer Credit report for October on Monday.

Nasdaq Composite +38.9% YTD
S&P 500 +14.5% YTD
Russell 2000 +13.4% YTD
Dow Jones Industrial Average +5.9% YTD

Market Snapshot
Dow 30218.20 +248.74 (0.83%)
Nasdaq 12464.15 +87.05 (0.70%)
SP 500 3699.13 +32.40 (0.88%)
10-yr Note -6/32 0.972
NYSE Adv 2428 Dec 675 Vol 975.2 mln
Nasdaq Adv 2678 Dec 929 Vol 5.0 bln

Industry Watch
Strong: Energy, Materials, Real Estate, Industrials
Weak: Utilities, Consumer Discretionary

Moving the Market

-- Major indices set new highs despite mixed November employment report

-- Energy stocks remained hot

-- Longer-dated Treasury yields rose in curve-steepening trade

Crude futures settle above $46 per barrel
04-Dec-20 15:25 ET
Dow +194.44 at 30163.90, Nasdaq +67.65 at 12444.75, S&P +25.22 at 3691.95

[BRIEFING.COM] The S&P 500 is trading higher by 0.7% and is well on its way to close at a record high, barring another unexpected headline like yesterday.

One last look at the sector performances shows energy (+4.6%), materials (+1.9%), industrials (+1.2%), and real estate (+1.2%) atop the intraday leaderboard, while the utilities (-1.4%) and consumer discretionary (-0.2%) sectors trade lower.

WTI crude futures settled higher by 1.3%, or $0.59, to $46.25/bbl.

[ReturntoSender]

Major indices set new highs, but close lower
09-Dec-20 16:15 ET
Dow -108.82 at 30065.00, Nasdaq -243.82 at 12338.87, S&P -29.77 at 3672.49

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

[BRIEFING.COM] Each of the major indices began Wednesday's session at record highs, but a decline led by the Nasdaq Composite (-1.9%) unfolded throughout the day amid profit-taking pressure. The S&P 500 declined 0.8%, the Dow Jones Industrial Average declined 0.4%, and the Russell 2000 declined 0.8%.

The Nasdaq really started to tumble following the DoorDash (DASH 189.51, +87.51, +85.8%) IPO at around midday. DASH shares opened at $182 per share after pricing its IPO at $102 per share, accentuating the frenzied demand for IPOs and representing a speculative excess in high-growth areas of the market.

In other words, things went so well for DoorDash that it was scapegoated for catalyzing a wave of selling, particularly in growth stocks and in the S&P 500 information technology sector (-1.9%). The communication services (-1.2%) and real estate (-1.0%) sectors also underperformed.

Notably, the cyclical energy (+0.3%), industrials (+0.2%), and materials (+0.1%) sectors closed higher, emblematic of lingering recovery optimism.

Besides the new supply delivered by DoorDash and overstretched market conditions, other negative headwinds included continued stimulus disagreements and big-tech regulatory concerns. The latter stemmed from the FTC and U.S. states officially filing separate lawsuits against Facebook (FB 277.92, -5.48, -1.9%) over its business practices.

As for stimulus, Treasury Secretary Mnuchin offered a new $916 billion stimulus bill, but Democratic Congressional leadership didn't like the fact that it excluded enhanced unemployment benefits and preferred to focus on the $908 billion bipartisan plan instead.

Longer-dated Treasuries declined alongside the major indices, pushing yields higher. The 2-yr yield was flat at 0.15%, and the 10-yr yield increased three basis points to 0.94%. The U.S. Dollar Index increased 0.1% to 91.03. WTI crude futures decreased 0.3%, or $0.14, to $45.50/bbl.

Reviewing Wednesday's economic data:

Job openings increased to 6.652 million in October from 6.436 million in September.
Wholesale inventories increased 1.8% in October (Briefing.com consensus 0.9%) following an unrevised 0.4% increase in September.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Consumer Price Index for November, and the Treasury Budget for November on Thursday.

Nasdaq Composite +37.5% YTD
Russell 2000 +14.0% YTD
S&P 500 +13.7% YTD
Dow Jones Industrial Average +5.4% YTD

Market Snapshot
Dow 30065.00 -108.82 (-0.36%)
Nasdaq 12338.87 -243.82 (-1.94%)
SP 500 3672.49 -29.77 (-0.80%)
10-yr Note -2/32 0.942
NYSE Adv 1546 Dec 1510 Vol 980.0 mln
Nasdaq Adv 1259 Dec 2342 Vol 5.0 bln

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

Moving the Market

-- Stock market pulls back from record territory

-- Growth stocks underperform following DoorDash (DASH) IPO

-- Congress still at odds over stimulus bill

Market at fresh session lows
09-Dec-20 15:30 ET
Dow -173.75 at 30000.07, Nasdaq -288.30 at 12294.39, S&P -40.01 at 3662.25

[BRIEFING.COM] The S&P 500 is down 1.1% to trade at fresh session lows.

One last look at the S&P 500 sectors shows red across the board. The information technology sector (-2.3%) leads the retreat with a 2% decline, followed by communication services (-1.5%) and real estate (-1.1%). The industrials sector (-0.1%) is trading just below its flat line.

The communication services sector is under pressure following news that the FTC and U.S. states officially filed lawsuits against Facebook (FB 277.57, -5.84, -2.0%) over its business practices. The market knew this was going to happen at some point, but the negative headline on a down day is hurting sentiment.

WTI crude futures settled lower by 0.3%, or $0.14, to $45.50/bbl. On a related note, weekly crude oil inventories increased by 15.19 mln barrels after decreasing by 679,000 during the previous week.
DoorDash scapegoated
09-Dec-20 14:55 ET
Dow -141.26 at 30032.56, Nasdaq -239.69 at 12343.00, S&P -33.38 at 3668.88

[BRIEFING.COM] The S&P 500 is trading near session lows with a 1.0% decline after starting the day in record territory.

The DoorDash (DASH 176.40, +74.39, +72.9%) IPO appears to have had a catalyzing effect on the broad market by how well it went. The IPO pop has been seen as sign of speculative excess that has warranted profit-taking interest in other segments of the market, especially the high-flying growth stocks.

Looking ahead, Airbnb (ABNB) is scheduled to IPO tomorrow. Unsurprisingly, the company has seen strong demand heading into its big debut and has increased the target range for the IPO.

[ReturntoSender]

Vaccine rolls out, but market rolls over
14-Dec-20 16:15 ET
Dow -184.82 at 29861.49, Nasdaq +62.17 at 12439.95, S&P -15.97 at 3647.50

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

[BRIEFING.COM] The S&P 500 started Monday's session with a 0.9% gain as the U.S. began distributing the first COVID-19 vaccines to the public, but an orderly retreat ensued that left the benchmark index down 0.4% for the session. The Dow Jones Industrial Average (-0.6%) joined the benchmark index in the red after hitting an all-time high in early action.

The Nasdaq Composite (+0.5%) and Russell 2000 (+0.1%), however, ended the session in positive territory.

The vaccine rollout was officially authorized by the FDA after it approved the vaccine from Pfizer (PFE 39.21, -1.91, -4.6%) and BioNTech (BNTX 108.27, -19.03, -15.0%) for emergency use in patients ages 16 or older. The decision was widely expected, though, and the sharp declines in PFE and BNTX shares were indicative of the news being priced in already.

Within minutes after the open, the S&P 500 energy sector (-3.5%) and last week's hot IPO companies succumbed to profit-taking interest, sapping some enthusiasm from this market. The financials (-1.2%), materials (-1.3%), and industrials (-1.3%) sectors also lagged, while the consumer discretionary (+0.5%) and information technology (+0.4%) sectors closed higher.

One reported headwind for cyclical stocks was an acknowledgement from NYC Mayor Bill De Blasio that there's still a possibility of a full shutdown due to the rise in coronavirus cases in the city. Naturally, growth stocks outperformed, including Tesla (TSLA 639.83, +29.84, +4.5%) ahead of its reconstitution into the S&P 500 after Friday's close.

In stimulus news, reports indicated that the $908 billion bipartisan bill was going to be split into two bills: one bill for $748 billion that excludes state and local aid and liability protection and a second bill for $160 billion that includes both contents. House Speaker Pelosi said both sides remained in negotiations.

Separately, today was a busy day for M&A news, and none was larger than the $39 billion cash-and-stock deal involving Alexion Pharma (ALXN 156.31, +35.33, +29.2%) and AstraZeneca (AZN 50.03, -4.24, -7.8%). Alexion agreed to be acquired by AstraZeneca for $175.00 per share or a 45% premium to Friday's closing price for ALXN.

U.S. Treasuries finished little changed after starting the session in the red, as investors returned to bonds amid the lackluster intraday price action in the major indices. The 2-yr yield was flat at 0.11%, and the 10-yr yield was flat at 0.89%. The U.S. Dollar Index declined 0.3% to 90.69. WTI crude increased 0.9%, or $0.42, to $47.00/bbl.

Investors did not receive any economic data on Monday. Looking ahead to Tuesday, investors will receive Industrial Production and Capacity Utilization for November, the Empire State Manufacturing Index for December, Export and Import Prices for November, and Net Long-Term TIC Flows for October.

Nasdaq Composite +38.6% YTD
Russell 2000 +14.7% YTD
S&P 500 +12.9% YTD
Dow Jones Industrial Average +4.6% YTD

Market Snapshot
Dow 29861.49 -184.82 (-0.62%)
Nasdaq 12439.95 +62.17 (0.50%)
SP 500 3647.50 -15.97 (-0.44%)
10-yr Note 0/32 0.901
NYSE Adv 1230 Dec 1907 Vol 1.0 bln
Nasdaq Adv 1824 Dec 1830 Vol 4.4 bln

Industry Watch
Strong: Consumer Discretionary, Information Technology
Weak: Energy, Materials, Financials, Industrials

Moving the Market

-- Vaccine rolls out, but S&P 500 and Dow roll over

-- Cyclical sectors lagged, while growth stocks outperformed

-- Energy sector and last week's hot IPO companies succumbed to profit-taking interest

-- NYC shutdown concerns

Energy stocks underperform despite higher oil prices
14-Dec-20 15:30 ET
Dow -50.85 at 29995.46, Nasdaq +119.64 at 12497.42, S&P +0.02 at 3663.49

[BRIEFING.COM] The S&P 500 is trading relatively unchanged amid losses in nine of its 11 sectors.

The energy sector is currently down the most with a steep 3.1% decline (trimming its monthly gain to 8.2%), followed by more tolerable declines in the financials (-0.8%), materials (-0.7%), and industrials (-0.7%) sectors. The consumer discretionary (+1.0%) and information technology (+0.9%) sectors trade comfortably higher.

WTI crude futures settled higher by 0.9%, or $0.42, to $47.00/bbl.

[ReturntoSender]

Market led higher by Apple and stimulus hopes
15-Dec-20 16:15 ET
Dow +337.76 at 30199.25, Nasdaq +155.02 at 12594.97, S&P +47.13 at 3694.63

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

[BRIEFING.COM] The large-cap indices advanced more than 1.0% on Tuesday, predominately due to the influence of Apple (AAPL 127.88, +6.10, +5.0%) and renewed stimulus optimism. The Russell 2000 closed at a record high with a 2.4% gain, followed by the S&P 500 (+1.3%), Nasdaq Composite (+1.3%), and Dow Jones Industrial Average (+1.1%).

Early in the session, Apple was the main driver of things after the Nikkei reported that the company plans to increase iPhone production by 30% yr/yr in the first half of 2021. With a $2.17 trillion market capitalization, the stock's 5% appreciation was an undeniable force for the major indices.

From a more macro-related perspective on today's action, the recovery narrative creeped back into the market on word of a stimulus meeting involving Congressional leadership at 4:00 p.m. ET. Hopes for a deal guided the cyclical and value stocks to leadership roles and nudged Treasury yields higher.

The energy (+1.9%), materials (+1.9%), and financials (+1.7%) sectors were among the biggest gainers in the S&P 500, which happened to snap a benign four-session losing streak today. The consumer staples sector (+0.2%) increased the least.

Investors didn't get too carried away, though, considering the potential to be upset by the outcome of today's stimulus meeting while others preferred to wait for the conclusion of the FOMC policy meeting tomorrow.

In the health care space, Eli Lilly (LLY 167.34, +9.43, +6.0%) stood out with an impressive 6% gain. The company issued upside guidance for FY20 and FY21, increased its quarterly dividend by 15%, and agreed to acquire Prevail Therapeutics (PRVL 22.75, +10.25, +82.0%) for $22.50 per share, or about $1 billion, in cash.

U.S. Treasuries finished on a lower note, particularly longer-dated maturities since shorter-dated maturities remained anchored by the Fed. The 2-yr yield increased one basis point to 0.12%, and the 10-yr yield increased three basis points to 0.92%. The U.S. Dollar Index declined 0.3% to 90.45. WTI crude futures rose 1.3%, or $0.59, to $47.59/bbl.

Reviewing Wednesday's economic data:

Industrial production increased 0.4% m/m in November (Briefing.com consensus 0.3%) following a downwardly revised 0.9% increase (from 1.1%) in October. The capacity utilization rate jumped to 73.3% (Briefing.com consensus 73.0%) from an upwardly revised 73.0% (from 72.8%) in October.
The key takeaway from the report was the robust growth seen in the production of motor vehicles and parts, which increased 5.3% and helped account for 0.4 percentage points of the 0.8% increase in manufacturing output.
Import prices increased 0.1% in November; and prices excluding oil decreased 0.3%. Export prices increased 0.6% in November; and prices excluding agriculture increased 0.3%.

Looking ahead to Thursday, investors will receive Retail Sales for November, the preliminary IHS Markit Manufacturing and Services PMIs for December, the NAHB Housing Market Index for December, Business Inventories for October, the weekly MBA Mortgage Applications Index, and the FOMC Rate Decision.

Nasdaq Composite +40.4% YTD
Russell 2000 +17.5% YTD
S&P 500 +14.4% YTD
Dow Jones Industrial Average +5.8% YTD

Market Snapshot
Dow 30199.25 +337.76 (1.13%)
Nasdaq 12594.97 +155.02 (1.25%)
SP 500 3694.63 +47.13 (1.29%)
10-yr Note -1/32 0.910
NYSE Adv 2346 Dec 761 Vol 923.7 mln
Nasdaq Adv 2523 Dec 1122 Vol 4.3 bln

Industry Watch
Strong: Utilities, Energy, Materials, Financials, Information Technology
Weak: Consumer Staples

Moving the Market

-- Apple (AAPL) rose 5% on report that it's planning to increase iPhone production by 30% in first half of 2021

-- Cyclical, value, and small-cap stocks outperformed ahead of a key stimulus meeting at 4:00 p.m. ET (market close)

-- Russell 2000 closes at fresh record high

Oil prices rise again, help energy stocks
15-Dec-20 15:30 ET
Dow +319.73 at 30181.22, Nasdaq +139.90 at 12579.85, S&P +43.28 at 3690.78

[BRIEFING.COM] The S&P 500 is trading higher by 1.2% while the Russell 2000 is up 2.2% and has a good chance to close at a record high.

One last look at the sector performances shows six sectors up by at least 1.0%, including utilities (+1.9%), materials (+1.8%), energy (+1.7%), and financials (+1.6%) at the top. No sector is trading lower, but the consumer staples sector lags with a 0.2% gain.

WTI crude futures settled the session higher by 1.3%, or $0.59, to $47.59/bbl. The increase in oil futures has benefited energy stocks today.

[ReturntoSender]

Stocks close mixed despite soothing stimulus news, Fed comments
16-Dec-20 16:15 ET
Dow -44.77 at 30154.48, Nasdaq +63.13 at 12658.10, S&P +6.55 at 3701.18

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

[BRIEFING.COM] The S&P 500 (+0.2%) edged higher on Wednesday, as investors were content to hear that a stimulus deal is close to being reached and that the Fed remained committed to its dovish monetary policy framework. The Nasdaq Composite (+0.5%) closed at a record high, while the Dow Jones Industrial Average (-0.2%) and Russell 2000 (-0.4%) closed lower.

The consumer discretionary (+1.1%) and information technology (+0.7%) sectors led the market higher, but the broader market was generally mixed as investors had largely anticipated these events during yesterday's rally. The utilities (-1.2%), industrials (-0.6%), energy (-0.4%), and materials (-0.3%) sectors closed lower.

Specifically, the Fed kept rates near zero as expected and signaled that it will remain there through 2023, increased its forecast for 2021 GDP growth to 4.2% from 4.0%, and said it will continue to purchase at least $120 billion of Treasury and mortgage-backed securities per month until substantial progress has been made with respect to employment and inflation.

The "extraordinarily accommodative" monetary policy, to quote Fed Chair Powell, should reassure the market in the 2021 recovery narrative, especially since the central bank expects any vaccine-induced inflation to be short-lived. Additional fiscal support is still needed, but the wait could soon be over before week's end.

Reports indicated that congressional leadership is close to reaching a $900 billion stimulus deal that includes direct paychecks, enhanced unemployment benefits, small business relief, and funding for the paycheck protection program. State and local aid and liability protection are reportedly not included.

The prior bipartisan proposal didn't mention direct payments to households, so that inclusion in this potential deal had a positive effect on shares of Amazon (AMZN 3240.96, +75.84, +2.4%) and Shopify (SHOP 1157.31, +83.21, +7.8%). On a related note, total retail sales declined 1.1% m/m in November (Briefing.com consensus -0.2%) on top of a downwardly revised 0.1% decline (from +0.3%) in October.

U.S. Treasuries finished near their flat lines in a tight-ranged session that supported the view that the market wasn't surprised by the stimulus update or the Fed. The 2-yr yield was flat at 0.12%, and the 10-yr yield was flat at 0.92%. The U.S. Dollar Index decreased 0.2% to 90.32. WTI crude futures increased 0.5%, or $0.24, to $47.83/bbl.

Reviewing Wednesday's economic data:

Total retail sales declined 1.1% m/m in November (Briefing.com consensus -0.2%) on top of a downwardly revised 0.1% decline (from +0.3%) in October. Retail sales, excluding autos, declined 0.9% (Briefing.com consensus +0.1%) after declining a downwardly revised 0.1% (from +0.2%) in October.
The key takeaway from the report was that the sales declines were broad based. Building materials (+1.1%), food and beverage stores (+1.6%), and nonstore retailers (+0.2%) were the only major categories that saw m/m increases.
The NAHB Housing Market Index decreased to two points to 86 in December (Briefing.com consensus 88).
Business inventories increased 0.7% in October (Briefing.com consensus 0.6%) following an upwardly revised 0.8% increase in October (from 0.7%).
The preliminary IHS Markit Manufacturing PMI for December decreased to 56.5 from 56.7 in November, while the Services PMI decreased to 55.3 from 58.4 in November.
The weekly MBA Mortgage Applications Index increased 1.1% following a 1.2% decline in the prior week.

Looking ahead, investors will receive weekly Initial and Continuing Claims, Housing Starts and Building Permits for November, and the Philadelphia Fed Index for December on Thursday.

Nasdaq Composite +41.1% YTD
Russell 2000 +17.0% YTD
S&P 500 +14.6% YTD
Dow Jones Industrial Average +5.7% YTD

Market Snapshot
Dow 30154.48 -44.77 (-0.15%)
Nasdaq 12658.10 +63.13 (0.50%)
SP 500 3701.18 +6.55 (0.18%)
10-yr Note -1/32 0.928
NYSE Adv 1429 Dec 1670 Vol 953.3 mln
Nasdaq Adv 1756 Dec 1887 Vol 4.5 bln

Industry Watch
Strong: Consumer Discretionary, Information Technology, Real Estate
Weak: Energy, Industrials, Materials

Moving the Market

-- Fed maintains dovish monetary policy framework

-- Reports indicate that a $900 billion stimulus deal is close to being reached

-- Retail sales for November weaker than expected

WTI crude futures edge higher
16-Dec-20 15:25 ET
Dow -1.39 at 30197.86, Nasdaq +77.95 at 12672.92, S&P +12.36 at 3706.99

[BRIEFING.COM] The S&P 500 continues to trade higher by 0.3% while the Russell 2000 is struggling with a 0.2% decline.

One last look at the S&P 500 sectors shows information technology (+0.9%) and consumer discretionary (+1.2%) up more than 1.0% amid strength in their mega-cap components, while the utilities (-0.8%) and industrials (-0.3%) sectors underperform in negative territory.

Separately, Fed Chair Powell recently said that any unleashing of pent-up demand driven by vaccinations would likely have the markings of being a transient pickup in inflation. In other words, he doesn't expect any vaccine-induced inflation to be lasting.

WTI crude futures settled higher by 0.5%, or $0.24, to $47.83/bbl.

[ReturntoSender]

Record closes for each major index
17-Dec-20 16:15 ET
Dow +148.83 at 30303.31, Nasdaq +106.56 at 12764.66, S&P +21.31 at 3722.49

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

[BRIEFING.COM] Each of the major indices closed at record highs on Thursday, as the market continued to ride its positive trend in a relatively calm session. The Russell 2000 rose 1.3% and extended its recent outperformance over the S&P 500 (+0.6%), Nasdaq Composite (+0.8%), and Dow Jones Industrial Average (+0.5%).

Nine of the 11 S&P 500 sectors finished in positive territory with real estate (+1.2%), materials (+1.2%), and health care (+1.1%) taking the top spots today. The energy (-0.6%) and communication services (-0.3%) sectors were the lone holdouts, with the latter pressured by weakness in AT&T (T 29.62, -0.68, -2.2%) following an analyst downgrade at Morgan Stanley.

Yesterday's affirmation of the Fed's highly-accommodative monetary policy had a lingering effect on market action today. Namely, investors felt emboldened to overlook relatively disappointing weekly initial claims data while the U.S. Dollar Index (89.82, -0.63, -0.7%) fell to its lowest level since April 2018.

The weaker dollar contributed to decent performances in foreign equities, oil prices ($48.33/bbl, +$0.50, +1.1%), precious metals, and crypto currencies, although energy stocks evidently did not rise with the higher oil prices.

In the homebuilding space, stocks benefited from better-than-expected housing starts and building permits data for November, which featured a 27.1% yr/yr increase in single-family starts, and positive earnings results and encouraging guidance from Lennar (LEN 79.95, +5.66, +7.6%). The iShares U.S. Home Construction ETF (ITB 57.78, +2.17, +3.9%) increased 4%.

U.S. Treasuries edged lower in a relatively uneven session, as investors contemplated a 23,000 increase in weekly initial claims to 885,000 (Briefing.com consensus 795,000) and the incoming new supply of Treasuries needed to finance a potential stimulus bill. The 2-yr yield increased one basis point to 0.13%, and the 10-yr yield increased one basis point to 0.93%.

Reviewing Thursday's economic data:

Initial claims for the week ending December 12 increased by 23,000 to 885,000 (Briefing.com consensus 795,000). Continuing claims for the week ending December 5 decreased by 273,000 to 5.508 million, which was the lowest level since March.
The key takeaway from the report is that the jump in initial claims underscores the real, and adverse, economic impact of the latest surge in coronavirus cases and the business restrictions imposed to help contain the spread.
Housing starts increased 1.2% m/m in November to a seasonally adjusted annual rate of 1.547 million (Briefing.com consensus 1.530 million). Building permits increased 6.2% m/m to 1.639 million (Briefing.com consensus 1.550 million).
The key takeaway from the report is that the starts and permits growth was driven largely by multi-unit dwellings; however, single-unit starts and permits were up 0.4% and 0.9%, respectively, which belies robust year-over-year growth of 27.1% and 22.2%.
The Philadelphia Fed Index dropped to 11.1 in December (Briefing.com consensus 19.0) from 26.3 in November.

Looking ahead, investors will receive the Conference Board's Leading Economic Index for November and the Q3 Current Account Balance.

Nasdaq Composite +42.3% YTD
Russell 2000 +18.6% YTD
S&P 500 +15.2% YTD
Dow Jones Industrial Average +6.2% YTD

Market Snapshot
Dow 30303.31 +148.83 (0.49%)
Nasdaq 12764.66 +106.56 (0.84%)
SP 500 3722.49 +21.31 (0.58%)
10-yr Note -2/32 0.937
NYSE Adv 2058 Dec 1035 Vol 958.8 mln
Nasdaq Adv 2467 Dec 1166 Vol 4.9 bln

Industry Watch
Strong: Materials, Health Care, Real Estate
Weak: Energy, Communication Services

Moving the Market

-- Major indices close at fresh record highs in continuation of positive trend

-- Relative weakness in energy stocks

-- Weaker dollar lifts oil prices and precious metals

Energy stocks down despite higher oil prices
17-Dec-20 15:25 ET
Dow +136.82 at 30291.30, Nasdaq +84.73 at 12742.83, S&P +19.33 at 3720.51

[BRIEFING.COM] The S&P 500 is trading higher by 0.5% and is vying for a record close.

One last look at the S&P 500 sectors shows materials (+1.1%), real estate (+1.1%), utilities (+1.1%) leading the advance with 1.1% gains, while the energy (-0.4%) and communication services (-0.4%) sectors remain in negative territory with 0.4% losses.

Energy stocks are struggling despite higher oil prices. WTI crude futures increased 1.1%, or $0.50, to $48.33/bbl.

[ReturntoSender]

Technology Outperforms on Tuesday
22-Dec-20 16:15 ET
Dow -200.94 at 30015.45, Nasdaq +65.40 at 12807.92, S&P -7.66 at 3687.26

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

[BRIEFING.COM] The stock market ended Tuesday on a mixed note, as the S&P 500 (-0.2%) and Dow (-0.7%) finished in the red while the Nasdaq (+0.5%) and Russell 2000 (+1.0%) outperformed.

The Tuesday session unfolded inside a narrow range, keeping the S&P 500 near its flat line throughout the day. Nine out of eleven sectors finished in negative territory, but their losses were largely offset by relative strength in the top-weighted technology sector (+0.9%).

Roughly half of the group's components recorded gains, but Apple (AAPL 131.88, +3.65, +2.9%) was mostly responsible for the daylong outperformance. The largest stock by market cap continued climbing after yesterday's reports indicated that the company is developing an autonomous electric car. Today's rally left the stock within ten points of its September high.

High-beta chipmakers underperformed with the PHLX Semiconductor Index (-0.1%) widening this week's loss to 0.8%, but the weakness had a limited impact on the broader tech sector.

Energy (-1.7%) and communication services (-1.0%) finished at the bottom of the leaderboard. The energy sector continued its recent show of relative weakness (-3.5% week-to-date) while crude oil fell $0.79, or 1.7%, to $47.00/bbl.

The market received just a couple quarterly reports since yesterday's closing bell. Most notably, CarMax (KMX 92.33, -8.13, -8.1%) fell below its 50-day moving average (93.74) to a fresh December low after its Q3 beat was overshadowed by softening demand trends in the latter part of the quarter.

In other news, Walmart (WMT 144.20, -1.77, -1.2%) fell to a six-week low after the Department of Justice sued the retail giant over its role in the opioid crisis.

Longer-dated Treasuries recorded modest gains while the 2-yr ended flat. The 10-yr yield fell two basis points to 0.92%.

Today's trading volume was below average as roughly 900 mln shares changed hands at the NYSE floor.

Reviewing today's economic data:

Existing home sales decreased 2.5% m/m in November to a seasonally adjusted annual rate of 6.69 million (Briefing.com consensus 6.80 million). November marked the first time in six months that existing home sales did not increase on a month-over-month basis. Total sales in November were up 25.8% from a year ago.
The key takeaway from the report is that the supply of existing homes is at an all-time low. That is going to be a pressure point that feeds higher prices, shuts out an increasing number of first-time buyers, and bolsters the prospects for new home sales.
The Conference Board's Consumer Confidence Index dropped to 88.6 in December (Briefing.com consensus 96.5) from a downwardly revised 92.9 (from 96.1) in November.
The key takeaway from the report is the bump seen in the Expectations Index, as it fits the narrative of a market that has been quick to look past the dire headlines about the surge of coronavirus cases in favor of the vaccine remedy that will run continuously in the months ahead.
The third estimate for Q3 GDP produced a slight upward revision to 33.4% (Briefing.com consensus 33.1%) that was attributed primarily to larger increases in personal consumption expenditures and nonresidential fixed investment. The GDP Price Deflator was revised down to 3.5% (Briefing.com consensus 3.6%) from 3.6%.
The key takeaway from the report is the same as it always is with the third estimate for quarterly GDP, which is that there is no new meaningful takeaway for the market given the report's dated nature. To that end, we're less than two weeks away from completing the fourth quarter and this is a revised third quarter report.

The weekly MBA Mortgage Index (prior 1.1%) will be reported tomorrow at 7:00 ET, followed by November Personal Income (Briefing.com consensus -0.2%; prior -0.7%), Personal Spending (Briefing.com consensus -0.2%; prior 0.5%, PCE Prices (Briefing.com consensus 0.2%; prior 0.0%), and core PCE Prices (Briefing.com consensus 0.2%; prior 0.0%) at 8:30 ET along with Initial Claims (Briefing.com consensus 860K; prior 885K) and Continuing Claims (prior 5.508M). The December FHFA Housing Price Index (prior 1.7%) will be released at 9:00 ET while November New Home Sales (Briefing.com consensus 990,000; prior 999,000) and the final December Michigan Consumer Sentiment Survey (Briefing.com consensus 80.5; prior 81.4) will be reported at 10:00 ET.

Nasdaq Composite +42.7% YTD
Russell 2000 +19.2% YTD
S&P 500 +14.1% YTD
Dow Jones Industrial Average +5.2% YTD

Market Snapshot
Dow 30015.45 -200.94 (-0.67%)
Nasdaq 12807.92 +65.40 (0.51%)
SP 500 3687.26 -7.66 (-0.21%)
10-yr Note +7/32 0.918
NYSE Adv 1330 Dec 1790 Vol 909.3 mln
Nasdaq Adv 2029 Dec 1680 Vol 5.60 bln

Industry Watch
Strong: Technology, Utilities, Real Estate
Weak: Consumer Discretionary, Industrials, Energy, Communication Services

Moving the Market

-- President Trump expected to sign stimulus bill and federal budget soon

-- Focus remains on new coronavirus strain in the U.K.

Inching to the Close
22-Dec-20 15:25 ET
Dow -182.83 at 30033.56, Nasdaq +54.12 at 12796.55, S&P -7.88 at 3687.05

[BRIEFING.COM] The S&P 500 remains lower by 0.2% going into the final 30 minutes of action.

Crude oil finished today's pit session with a $0.79, or 1.7%, loss, at $47.00/bbl, falling toward yesterday's low (46.18). The energy sector, meanwhile, has widened its loss to 1.4%. The group has fallen 3.2% this week.

Longer-dated Treasuries finished today's session at their best levels of the day, sending the 10-yr yield lower by two basis points to 0.92%.

[ReturntoSender]

Recovery theme stands out, but market loses steam into close
23-Dec-20 16:20 ET
Dow +114.32 at 30129.77, Nasdaq -36.80 at 12771.12, S&P +2.75 at 3690.01

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

[BRIEFING.COM] The stock market rehashed the recovery theme for most of Wednesday's session in which value, cyclical, and small-cap stocks outperformed, but the market finished near session lows as sellers rushed for the exit before the close on no specific news. The S&P 500 finished with a 0.1% gain after being up as much as 0.7% intraday.

The Russell 2000 (+0.9%) and Dow Jones Industrial Average (+0.4%) outperformed with the small-cap index closing above the 2000 level for the first time and at a new record closing high. The Nasdaq Composite (-0.3%) struggled all session amid relative weakness in growth stocks, which generally underperform when recovery stocks are in favor.

The recovery trade was fueled by President Trump's insistence that Congress increase the stimulus checks to $2000 from $600, which House Democrats supported, and Pfizer (PFE 37.44, +0.70, +1.9%) and BioNTech (BNTX 100.06, -0.50, -0.5%) reaching a second agreement with the U.S. government to supply an additional 100 million doses of their COVID-19 vaccine.

The S&P 500 energy (+2.2%) and financials (+1.6%) sectors accumulated most of the gains amid higher oil prices ($48.09/bbl, +1.09, +2.3%) and curve-steepening activity caused by selling in longer-dated Treasuries. Both developments signaled an improved sentiment regarding future economic growth.

The 2-yr yield increased one basis point to 0.13%, and the 10-yr yield increased four basis points to 0.96%. The U.S. Dollar Index decreased 0.4% to 90.34 amid relative strength in the British pound, which rose 1.0% against the dollar amid reports that an outline of a Brexit trade deal with the EU was reached.

Unfortunately, the top-weighted information technology sector (-0.9%) limited the upside in the market, as buyers preferred to focus away from the growth stocks that comprise the technology space. The real estate (-1.0%) and utilities (-0.2%) sectors slipped into negative territory during the afternoon.

An awareness that many European markets, including Germany, will be closed tomorrow for Christmas Eve, and that the U.S. market will close early at 1:00 p.m. ET, might have exacerbated selling interest into the close. Some investors prefer to be cautious heading into extended holiday breaks.

Separately, homebuilding stocks lagged after data showed the pace of new home sales decline 11.0% m/m to a seasonally adjusted annual rate of 841,000 (Briefing.com consensus 990,000). The iShares U.S. Home Construction ETF (ITB 57.07, -0.83, -1.4%) decreased 1.4%.

Reviewing all of Wednesday's economic data dump:

Personal income declined 1.1% m/m in November (Briefing.com consensus -0.2%), personal spending declined 0.4% (Briefing.com consensus -0.2%), the PCE Price Index was unchanged (Briefing.com consensus +0.2%) and the Core PCE Price Index was unchanged (Briefing.com consensus +0.2%).
The key takeaway for the market isn't that the income and spending data were disappointing, it's that the totality of the disappointment will reassure the market that the Fed is going to remain its friend by sticking with extraordinarily accommodative monetary policy.
Initial claims for the week ending December 19 decreased by 89,000 to 803,000 (Briefing.com consensus 860,000). Continuing claims for the week ending December 12 decreased by 170,000 to 5.337 million.
The key takeaway from the report is the week-over-week improvement in both initial claims and continuing claims. Both are still way too high in the big picture, yet the trend is the market's trading friend today.
New home sales decreased 11.0% m/m to 841,000 in November (Briefing.com consensus 990,000) from a downwardly revised 945,000 (from 999,000) in October. On a yr/yr basis, new home sales were up 20.8%.
The key takeaway from the report is that new home sales, which are counted when contracts are signed, slowed in November from a torrid recovery pace. Limited supply and rising prices had some impact, yet the strength of the market continues to be evident in the 20.8% increase in sales yr/yr.
New orders for durable goods increased 0.9% m/m in November (Briefing.com consensus 0.7%) while new orders, excluding transportation, increased 0.4% (Briefing.com consensus 0.5%).
The key takeaway for the market is that there were order increases across most categories and that business spending stayed on a positive track, evidenced by the 0.4% increase in new orders for nondefense capital goods excluding aircraft.
The final reading for the December University of Michigan Index of Consumer Sentiment was revised down to 80.7 from the preliminary reading of 81.4. The final reading marks an improvement from the final reading of 76.9 for November.
The key takeaway from the report is that consumer sentiment was improved from November, notwithstanding the reports of rising coronavirus infections and deaths, as well as the stimulus uncertainty, that prevailed during the survey period.
The FHFA Housing Price Index for December increased 1.5% following an unrevised 1.7% increase in November.
The weekly MBA Mortgage Applications Index increased 0.8% following a 1.1% increase in the prior week.

Investors will not receive any economic data on Thursday, which will be a shortened trading session for Christmas Eve.

Nasdaq Composite +42.3% YTD
Russell 2000 +20.3% YTD
S&P 500 +14.2% YTD
Dow Jones Industrial Average +5.6% YTD

Market Snapshot
Dow 30129.77 +114.32 (0.38%)
Nasdaq 12771.12 -36.80 (-0.29%)
SP 500 3690.01 +2.75 (0.07%)
10-yr Note -3/32 0.956
NYSE Adv 2115 Dec 997 Vol 813.0 mln
Nasdaq Adv 2344 Dec 1378 Vol 6.9 bln

Industry Watch
Strong: Energy, Financials, Industrials
Weak: Information Technology, Real Estate, Utilities

Moving the Market

-- Value, cyclical, and small-cap stocks outperformed, but market lost steam into the close on no specific news

-- President Trump called on Congress to increase stimulus checks to $2000 from $600

-- Pfizer (PFE) and BioNTech (BNTX) reached a second agreement with the U.S. government for an additional 100 million doses of vaccine

-- Treasury curve steepens amid selling in longer-dated maturities, oil prices rise

Energy stocks fueled by higher oil prices
23-Dec-20 15:25 ET
Dow +209.54 at 30224.99, Nasdaq +10.51 at 12818.43, S&P +16.38 at 3703.64

[BRIEFING.COM] The major indices continue to sport modest gains, while President Trump recently vetoed the National Defense Authorization Act. Note, Congress has enough votes to override his veto next week assuming all members vote the same way.

One last look at the S&P 500 sectors before the close shows energy (+2.4%) and financials (+1.8%) still atop the leaderboard as part of today's recovery trade that has boosted oil prices and steepened the Treasury yield curve. Conversely, the information technology (-0.3%), real estate (-0.5%), and utilities (-0.03%) sectors trade lower.

WTI crude futures settled today's session higher by 2.3%, or $1.09, to $48.09/bbl.

[ReturntoSender]

Large-cap indices close higher before Christmas
24-Dec-20 13:20 ET
Dow +70.04 at 30199.81, Nasdaq +33.62 at 12804.74, S&P +13.05 at 3703.06

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

[BRIEFING.COM] The S&P 500 advanced 0.4% on this shortened Christmas Eve session. The Nasdaq Composite (+0.3%) and Dow Jones Industrial Average (+0.2%) also posted modest gains, while the Russell 2000 (-0.2%) closed lower after opening at a fresh all-time high.

Ten of the 11 S&P 500 sectors finished in positive territory, although there was a shade of defensiveness ahead of the extended holiday break.

Growth-oriented heavyweights like Apple (AAPL 131.97, +1.01, +0.8%) and Tesla (TSLA 661.77, +15.79, +2.4%) exerted influential leadership, the defensive-oriented information technology (+0.8%), real estate (+0.8%), and utilities (+0.7%) sectors were among the biggest gainers, and U.S. Treasuries ticked higher.

The energy sector (-0.6%) was the lone holdout after outperforming yesterday. Other cyclical sectors had struggled with modest losses for most of the day, but buyers stepped into the market before the close to help these sectors recoup intraday losses. Notably, declining issues still outpaced advancing issues at the Nasdaq.

One of the bigger stories today in terms of stock impact came out of China. Specifically, Chinese regulators launched an anti-monopoly investigation against Alibaba (BABA 222.00, -24.18, -13.3%), sending BABA shares down 13.3% at the New York Stock Exchange.

In other interesting developments, the UK and EU finalized a post-Brexit trade agreement, House Speaker Pelosi scheduled a full House vote on Monday to increase stimulus checks to $2000 from $600 after a unanimous consent resolution in the House was blocked, and there was chatter about President Trump possibly delaying the stimulus/government funding bills with a pocket veto.

The 10-yr yield was down three basis points at 0.93% ahead of the bond market close at 2:00 p.m. ET, while the 2-yr yield was down two basis points to 0.11%. The U.S. Dollar Index was down 0.1% to 90.32. WTI crude futures were up 0.3% to $48.24/bbl.

Investors did not receive any economic data on Thursday and won't receive any until next Tuesday when the Consumer Confidence Index for December is released by the Conference Board.

Nasdaq Composite +42.7% YTD
Russell 2000 +20.1% YTD
S&P 500 +14.6% YTD
Dow Jones Industrial Average +5.8% YTD

Market Snapshot
Dow 30199.81 +70.04 (0.23%)
Nasdaq 12804.74 +33.62 (0.26%)
SP 500 3703.06 +13.05 (0.35%)
10-yr Note +1/32 0.936
NYSE Adv 1891 Dec 1199 Vol 381.1 mln
Nasdaq Adv 1778 Dec 1910 Vol 3.2 bln

Industry Watch
Strong: Information Technology, Real Estate, Utilities, Materials
Weak: Energy, Financials, Industrials

Moving the Market

-- Positive day for the large-cap indices before Christmas

-- Defensive mindset ahead of extended holiday break

-- Stock market closed early at 1:00 p.m. ET

Defensive-oriented sectors outpace cyclical sectors
24-Dec-20 12:30 ET
Dow +2.72 at 30132.49, Nasdaq +3.72 at 12774.84, S&P +2.97 at 3692.98

[BRIEFING.COM] The S&P 500 is trading higher by 0.1% with 30 minutes left in the trading session. One last look at the S&P 500 sectors shows a divergence between defensive sectors and cyclical sectors.

Namely, the information technology (+0.4%), real estate (+0.4%), and consumer staples (+0.2%) sectors have the slight advantage, while the energy (-0.7%), financials (-0.3%), and industrials (-0.3%) sectors lag.

WTI crude futures are currently trading little changed at $48.12/bbl.

[ReturntoSender]

Mega-caps power large-cap indices to record highs
28-Dec-20 16:15 ET
Dow +204.10 at 30403.91, Nasdaq +94.69 at 12899.43, S&P +32.30 at 3735.36

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

[BRIEFING.COM] The large-cap indices set intraday and closing record highs on Monday after President Trump signed the $900 billion stimulus and omnibus spending bill. The S&P 500 (+0.9%), Nasdaq Composite (+0.7%), and Dow Jones Industrial Average (+0.7%) posted respectable gains, while the Russell 2000 (-0.4%) closed lower after opening at an all-time high.

The market was particularly pleased with the president's signature because it put an end to the speculation of a pocket veto, which would have further delayed the bills. On a related note, the House was expected to vote today on increasing the stimulus checks to $2000, but it's unlikely to receive the 60 votes needed to pass in the Senate.

Early in the day, it seemed like the market was going to rehash the recovery script in which the leadership roles are bestowed to the cyclical, value, and small-cap stocks, but the market quickly defaulted to its main cast of mega-cap characters on no specific news catalysts.

Apple (AAPL 136.69, +4.72, +3.6%), Amazon (AMZN 3283.96, +111.27, +3.5%), and Facebook (FB 277.00, +9.60, +3.6%), to name a few, rose about 3.5% on slightly above-average volume. Accordingly, the communication services (+1.9%), consumer discretionary (+1.5%), and information technology (+1.2%) sectors, which are home to the mega-caps, advanced more than 1.0%.

On the downside, the energy (-0.5%) and materials (-0.4%) sectors fell into negative territory after being up more than 1.0% to start the session. A reversal in oil prices ($47.64, -0.68, -1.4%) weighed on sentiment in the energy space.

As noted, trading volume wasn't out of the ordinary for the mega-caps, suggesting investors either played it safe heading into the final days of the year and/or they rotated out of recent winners and into these mega-cap names. Interestingly, recent IPO stocks, which were high-flyers and not the "safest" stocks, saw noticeable weakness today.

U.S. Treasuries finished near their flat lines after starting the session with modest losses. The 2-yr yield was flat at 0.12%, and the 10-yr yield increased one basis point to 0.93%. The U.S. Dollar Index was little changed at 90.32.

Investors did not receive any economic data on Monday. Looking ahead, investors will receive the S&P Case-Shiller Home Price Index for October on Tuesday.

Nasdaq Composite +43.8% YTD
Russell 2000 +19.7% YTD
S&P 500 +15.6% YTD
Dow Jones Industrial Average +6.5% YTD

Market Snapshot
Dow 30403.91 +204.10 (0.68%)
Nasdaq 12899.43 +94.69 (0.74%)
SP 500 3735.36 +32.30 (0.87%)
10-yr Note +1/32 0.928
NYSE Adv 1663 Dec 1492 Vol 734.4 mln
Nasdaq Adv 1958 Dec 1803 Vol 5.0 bln

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

Moving the Market

-- Major indices set all-time highs in mostly broad-based advance

-- President Trump signs the $900 billion stimulus bill and government funding bill

-- Mega-caps outperform

WTI crude futures settle below $48 per barrel
28-Dec-20 15:30 ET
Dow +234.67 at 30434.48, Nasdaq +119.71 at 12924.45, S&P +35.44 at 3738.50

[BRIEFING.COM] The S&P 500 is trading at session highs with a 1.0% gain. The Russell 2000 continues to underperform with a 0.2% gain.

One last look at the S&P 500 sectors shows the communication services (+2.0%), consumer discretionary (+1.7%), and information technology (+1.4%) sectors still the only sectors up more than 1.0%. The energy (-0.6%) and materials (-0.1%) sectors are trading modestly lower.

WTI crude futures settled lower by 1.4%, or $0.68, to $47.64/bbl. Oil prices were positive in overnight action and its reversal weighed on the energy stocks today.

[ReturntoSender]

Rough start to 2021
04-Jan-21 16:15 ET
Dow -382.59 at 30223.83, Nasdaq -189.84 at 12698.45, S&P -55.42 at 3700.65

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

[BRIEFING.COM] The major indices were down more than 2.0% on the first trading day of 2021, as investors took profits, but they pared losses in the afternoon. The S&P 500 (-1.5%), Dow Jones Industrial Average (-1.3%), Nasdaq Composite (-1.5%), and Russell 2000 (-1.5%) declined between 1.3-1.5%. The S&P 500 and Dow briefly set all-time highs at the open.

The short-lived positive open was attributed to Tesla (TSLA 729.77, +24.10, +3.4%) reporting record Q4 deliveries, expansionary December manufacturing PMIs out of the eurozone and Asia, M&A activity, and positive momentum. Tesla, foreign equities, and acquired companies still had positive outings, but the positive momentum in the broader market quickly dissipated.

There weren't any specific selling catalysts, suggesting investors came back from the holidays ready to take profits while others preferred to hold off until the outcome of the Senate election runoffs in Georgia tomorrow. Selling was widespread with ten of the 11 S&P 500 sectors finishing in negative territory.

Influential weakness came out of the information technology (-1.8%) and industrials (-2.6%) sectors, although the real estate (-3.3%) sector was the weakest link. The energy sector (+0.1%) eked out a slim gain despite lower oil prices ($47.59/bbl, -0.68, -1.4%).

Hedging interest to protect against further downside was manifested in the four-point increase in the CBOE Volatility Index (26.97, +4.22, +18.6%), while safe-having positioning brought Treasury yields down from intraday highs.

The 2-yr yield finished flat at 0.12%, and the 10-yr yield finished flat at 0.92% after touching 0.95% in the morning. The U.S. Dollar Index finished flat after being down 0.6% intraday.

In M&A activity, FLIR Systems (FLIR 52.24, +8.41, +19.2%) agreed to be acquired by Teledyne (TDY 362.39, +10.80, +13.0%) in a cash and stock deal valued at $8.0 billion. Magellan Health (MGLN 93.64, +10.80, +13.0%) agreed to be acquired by Centene (CNC 62.09, +2.06, +3.4%) for $95 per share, or a total enterprise value of $2.2 billion, in cash.

Reviewing Monday's economic data:

Total construction spending increased 0.9% in November (Briefing.com consensus 0.9%) after increasing a revised 1.6% (from 1.3%) in October. Total private construction spending rose 1.2% m/m and total public construction spending decreased 0.2%.
The key takeaway from the report is that residential construction spending showed strength for another month as mortgage rates remained low, supporting demand for homes outside urban areas.
The December IHS Markit Manufacturing PMI increased to 57.1 from 56.5 in November.

Looking ahead, investors will receive the ISM Manufacturing Index for December on Tuesday.

Nasdaq Composite +1.5% YTD
Russell 2000 +1.5% YTD
S&P 500 +1.5% YTD
Dow Jones Industrial Average +1.3% YTD

Market Snapshot
Dow 30223.83 -382.59 (-1.25%)
Nasdaq 12698.45 -189.84 (-1.47%)
SP 500 3700.65 -55.42 (-1.48%)
10-yr Note 0/32 0.916
NYSE Adv 911 Dec 2188 Vol 1.2 bln
Nasdaq Adv 1570 Dec 2147 Vol 6.4 bln

Industry Watch
Strong: Energy
Weak: Information Technology, Industrials, Real Estate, Utilities

Moving the Market

-- Major indices retraced opening gains and posted noticeable declines amid widespread selling pressure

-- Profit-taking interest

-- Some focus on tomorrow's Senate election runoffs in Georgia

WTI crude futures settle in the red
04-Jan-21 15:30 ET
Dow -472.24 at 30134.18, Nasdaq -218.08 at 12670.21, S&P -64.42 at 3691.65

[BRIEFING.COM] The S&P 500 is trading lower by 1.8%, and the Russell 2000 is trading lower by 1.5%.

One last look at the S&P 500 sectors shows real estate (-3.0%), industrials (-2.7%), and information technology (-2.1%) down more than 2.0%, while the energy sector (-0.2%) is the only sector down less than 1.0%.

WTI crude futures settled lower by 1.4%, or $0.68, to $47.59/bbl.

[ReturntoSender]

Stocks rebound as recovery theme shines
05-Jan-21 16:15 ET
Dow +167.71 at 30391.54, Nasdaq +120.51 at 12818.96, S&P +26.21 at 3726.86

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

[BRIEFING.COM] The S&P 500 advanced 0.7% on Tuesday in a relatively broad-based advance led by energy sector (+4.5%). The Russell 2000 (+1.7%) outperformed, followed by the Nasdaq Composite (+1.0%) and Dow Jones Industrial Average (+0.6%).

The price action today signaled a continuation of the buy-the-dip mindset from yesterday afternoon, as investors latched onto the so-called recovery theme that benefits small-caps, cyclical sectors, and commodities (at the expense of the dollar). The better-than-expected ISM Manufacturing Index for December was cited as a positive catalyst.

Briefly, the manufacturing index rose to 60.7% in December (Briefing.com consensus 56.4%) from 57.5% in November for its seventh straight expansionary reading (50.0% or greater).

Energy stocks followed oil prices higher ($49.91/bbl, +2.32, +4.9%), which settled close to $50 per barrel. Most of the oil gains were notched before an OPEC+ decision to keep production levels steady in February, although Saudi Arabia later said it will cut an additional 1 million barrels/day in February and March.

The materials (+2.3%) and industrials (+1.0%) sectors were other cyclical outperformers, while the real estate sector (-0.1%) was the lone holdout.

Individual standouts included Apple (AAPL 131.01, +1.60, +1.2%), which had its price target raised to $150 from $145 at Canaccord Genuity, and Micron (MU 77.26, +3.21, +4.3%), which was upgraded to Buy from Sell at Citigroup.

Separately, broader conviction might have been restrained by a preference to wait for the outcome of the two Senate election runoffs in Georgia today, which will determine which party has majority control of the Senate. There was hope the results would be known by tomorrow morning.

Longer-dated Treasury yields rose amid increased selling interest as part of the recovery-minded trade today. The 2-yr yield finished flat at 0.12%, while the 10-yr yield increased four basis points to 0.96%. The U.S. Dollar Index decreased 0.4% to 89.51.

Reviewing Tuesday's economic data:

The ISM Manufacturing Index rose to 60.7% in December (Briefing.com consensus 56.4%) from 57.5% in November. The dividing line between expansion and contraction is 50.0%, so the December reading reflects an acceleration in manufacturing activity.
The key takeaway from the report is that the December increase puts the overall series just ten basis points below its high from 2018 (60.8%). The Employment Index (51.5%) returned into expansion after falling below 50.0% in October.

Looking ahead, investors will receive the ADP Employment Change Report for December, Factory Orders for November, the IHS Markit Services PMI for December, and the weekly MBA Mortgage Applications Index on Wednesday.

Russell 2000 +0.2% YTD
Nasdaq Composite -0.5% YTD
Dow Jones Industrial Average -0.7% YTD
S&P 500 -0.8% YTD

Market Snapshot
Dow 30391.54 +167.71 (0.55%)
Nasdaq 12818.96 +120.51 (0.95%)
SP 500 3726.86 +26.21 (0.71%)
10-yr Note -3/32 0.951
NYSE Adv 2276 Dec 855 Vol 995.0 mln
Nasdaq Adv 2649 Dec 1096 Vol 6.7 bln

Industry Watch
Strong: Energy, Industrials, Materials
Weak: Real Estate, Utilities, Consumer Staples

Moving the Market

-- Energy stocks and small-caps noticeably outperformed in so-called recovery trade

-- December ISM Manufacturing Index was better than expected

-- Senate election runoffs in Georgia today

Crude futures settled just under $50 per barrel
05-Jan-21 15:25 ET
Dow +187.32 at 30411.15, Nasdaq +102.06 at 12800.51, S&P +25.43 at 3726.08

[BRIEFING.COM] The S&P 500 is up 0.7% and is trading slightly off prior highs (+1.0%).

One last look at the S&P 500 sectors shows energy up 5.1%, materials up 2.1%, and industrials 1.1%. Those are the leaders, while the utilities sector (-0.1%) is the only sector trading lower right now.

WTI crude futures settled higher by 4.9%, or $2.32, to $49.91/bbl. This is the highest settlement price since last February, as investors reacted positively to today's upbeat manufacturing data and Saudi Arabia's production cut pledge.

[ReturntoSender]

Dow and Russell 2000 close at record highs despite scene on Capitol Hill
06-Jan-21 16:15 ET
Dow +437.80 at 30829.34, Nasdaq -78.17 at 12740.79, S&P +21.28 at 3748.14

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

[BRIEFING.COM] The Dow Jones Industrial Average (+1.4%) and Russell 2000 (+4.0%) closed at record highs on Wednesday, as small-caps and cyclical stocks exhibited strength on the prospect of a Democrat-controlled Senate. The market, however, closed off session highs, as risk sentiment waned after pro-Trump protesters breached Capitol Hill.

The S&P 500 finished with a 0.6% gain after being up 1.5% intraday, while the Nasdaq Composite declined 0.6% amid weakness in the mega-caps.

Briefly, investors were pricing in expectations for more fiscal stimulus after Democrats flipped at least one Senate seat in Georgia following yesterday's runoff elections, according to media projections. The second race remained too close to call as of 4:00 p.m. ET but favored the Democrats, who would need this seat to control the Senate by the slimmest of margins.

Accordingly, the cyclical financials (+4.4%), materials (+4.1%), energy (+3.0%), and industrials (+2.4%) sectors finished atop the standings with strong gains. The possibility of increased tech scrutiny, however, reined in the influential information technology (-1.8%) and communication services (-0.7%) sectors.

Investors were buying the dip in technology stocks after the open, but the rebound effort was squandered after the protesters breached Capitol Hill shortly after 2:00 p.m. ET during the certification of the electoral college results. The technology sector had briefly returned to its flat line before this.

Despite the scene on Capitol Hill, gold prices ($1909.00/ozt, -2.4%) remained suppressed and there was no inclination to buy the dip in Treasuries, which were selling off on expectations for further economic stimulus. The 10-yr yield rose nine basis points to 1.04%, while the 2-yr yield increased two basis points to 0.14%. The U.S. Dollar Index was little changed at 89.40.

Tesla (TSLA 755.98, +20.87, +2.8%) was among the few mega-caps that faired extremely well today after Morgan Stanley raised its price target on the stock to a Street-high of $810. Shares of Apple (AAPL 126.60, -4.41, -3.4%), Microsoft (MSFT 212.25, -5.65, -2.6%), Amazon (AMZN 3138.38, -80.13, -2.5%), and Facebook (FB 263.34, -7.63, -2.8%) fell between 2.5-3.4%.

Separately, Walgreens Boots Alliance (WBA 43.03, +1.87, +4.5%) agreed to sell most of its Alliance Healthcare business to AmerisourceBergen (ABC 106.17, +8.41, +8.6%) for approximately $6.5 billion in cash and stock.

Reviewing Wednesday's economic data:

Factory orders for manufactured goods increased 1.0% in November (Briefing.com consensus 0.6%) after increasing a revised 1.3% (from 1.0%) in October. This is the seventh consecutive monthly increase in factory orders.
The key takeaway from the report is that it showed another increase in business spending, as nondefense capital goods excluding aircraft increased 0.5% in November after rising a revised 2.6% in October.
The ADP Employment Change report for December estimated private-sector payrolls decreased by 123,000 (Briefing.com consensus +120,000). The November reading was revised lower to 304,000 from 307,000.
The December IHS Markit Services PMI decreased to 54.8 from 55.3 in November.
The weekly MBA Mortgage Applications Index increased 1.7% following a 0.8% increase in the prior week.

Looking ahead, investors will receive the ISM Non-Manufacturing Index for December, the weekly Initial and Continuing Claims report, and the Trade Balance for November on Thursday.

Russell 2000 +4.2% YTD
Dow Jones Industrial Average +0.7% YTD
S&P 500 -0.2% YTD
Nasdaq Composite -1.1% YTD

Market Snapshot
Dow 30829.34 +437.80 (1.44%)
Nasdaq 12740.79 -78.17 (-0.61%)
SP 500 3748.14 +21.28 (0.57%)
10-yr Note -29/32 1.033
NYSE Adv 1967 Dec 1142 Vol 1.4 bln
Nasdaq Adv 2247 Dec 1399 Vol 7.5 bln

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

Moving the Market

-- Democrats flip at least one Senate seat in Georgie, according to media projections

-- Capitol Hill breached by protestors

-- Technology stocks underperform, small-caps and cyclical stocks rise

-- 10-yr Treasury note yield rises past 1.00%

Crude futures settle above $50 per barrel
06-Jan-21 15:30 ET
Dow +461.94 at 30853.48, Nasdaq -51.44 at 12767.52, S&P +39.90 at 3766.76

[BRIEFING.COM] The S&P 500 is trading higher by 0.6%, while the Nasdaq is back in the red with a 0.4% decline amid weakness in the mega-cap stocks, which are down more than 2.0%.

One last look at the sectors shows financials (+4.3%), materials (+3.9%), energy (+2.5%), and industrials (+2.2%) still up more than 2.0%; conversely, the information technology (-1.4%) and communication services (-0.6%) sectors are influential laggards in negative territory.

WTI crude futures settled higher by 1.3%, or $0.66, to $50.57/bbl.

[ReturntoSender]

Market looks past December job losses in record-setting advance
08-Jan-21 16:15 ET
Dow +56.84 at 31097.91, Nasdaq +134.50 at 13201.98, S&P +20.89 at 3824.68

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

[BRIEFING.COM] The S&P 500 (+0.6%), Nasdaq Composite (+1.0%), and Dow Jones Industrial Average (+0.2%) closed at fresh record highs on Friday despite a weak December employment report. The Russell 2000 (-0.3%) set an intraday all-time high at the open but closed lower.

Briefly, December nonfarm payrolls decreased by 140,000 (Briefing.com consensus +112,000), private sector payrolls decreased by 95,000 (Briefing.com consensus +100,000), and the unemployment rate was unchanged at 6.7%, as expected. The unexpected decline in payrolls was partially offset by large upward revisions to November payrolls.

The market presumably interpreted the report as a blip in the labor market recovery due to ongoing vaccination efforts and less consequential to the economic growth outlook due to prospects for more fiscal stimulus. It was also backwards-looking based on the renewed lockdown measures enacted to curb the spread of the coronavirus.

In the stock market, the S&P 500 consumer discretionary (+1.8%), real estate (+1.1%), information technology (+0.8%), and utilities (+0.9%) sectors carried the market higher, with Tesla (TSLA 880.02, +63.98, +7.8%) disproportionately aiding the consumer discretionary sector and Nasdaq.

On the downside, the materials (-0.5%), financials (-0.2%), industrials (-0.2%), and energy (-0.1%) sectors finished in the red. Micron (MU 77.42, -1.69, -2.1%) shares gave up an early 6% gain and closed lower despite reporting positive earnings results and upbeat guidance.

Separately, the S&P 500 briefly turned negative on reports that Senator Joe Manchin (D-WV) said he will not support $2000 stimulus checks, but Mr. Manchin quickly clarified that "if the next round of stimulus checks goes out, they should be targeted to those who need it." Stocks recovered.

President-elect Biden said he will propose a complete economic package next week that will include a range of issues and said the "price tag will be high."

Longer-dated Treasuries continued to face selling pressure amid expectations for economic growth and possibly inflation. The 10-yr yield increased another three basis points to 1.11%, while the 2-yr yield decreased one basis point to 0.13%. The U.S. Dollar Index increased 0.3% to 90.06. WTI crude futures increased 2.8%, or $1.44, to $52.25/bbl.

Reviewing Friday's economic data:

The December employment report disappointed on the headline level as nonfarm payrolls declined by 140,000 (Briefing.com consensus 112,000) against expectations for an increase. However, the drop was partially offset by a large upward revision to November figures and an increase in December average hourly earnings. December private sector payrolls decreased by 95,000 (Briefing.com consensus 100,000). December unemployment rate was unchanged at 6.7% (Briefing.com consensus 6.7%)
Capital markets are likely to look past this report and focus on the expected increase in fiscal spending once a new administration is inaugurated, but the December report shows that the labor market is facing an uphill climb.
Consumer credit increased by $15.3 bln in November after increasing a revised $4.5 bln (from $7.2 bln) in October.
The key takeaway from the report is that revolving credit decreased for the eighth time over the last nine months dating back to February, which preceded the initial pandemic lockdown period taking hold in the U.S.
Wholesale inventories were unchanged in November (Briefing.com consensus -0.1%) following an upwardly revised 1.3% increase (from +1.1%) in October.

Investors will not receive any notable economic data on Monday.

Russell 2000 +5.9% YTD
Nasdaq Composite +2.4% YTD
S&P 500 +1.8% YTD
Dow Jones Industrial Average +1.6% YTD

Market Snapshot
Dow 31097.91 +56.84 (0.18%)
Nasdaq 13201.98 +134.50 (1.03%)
SP 500 3824.68 +20.89 (0.55%)
10-yr Note -25/32 1.118
NYSE Adv 1604 Dec 1470 Vol 1.0 bln
Nasdaq Adv 1936 Dec 1784 Vol 7.1 bln

Industry Watch
Strong: Consumer Discretionary, Real Estate, Information Technology, Utilities
Weak: Financials, Materials, Industrials, Energy

Moving the Market

-- S&P 500, Nasdaq, and Dow close at fresh record highs

-- December employment report showed unexpected decline in payrolls

-- Lingering hopes for additional fiscal stimulus

Crude futures settle above $52 per barrel
08-Jan-21 15:30 ET
Dow +9.77 at 31050.84, Nasdaq +94.49 at 13161.97, S&P +13.28 at 3817.07

[BRIEFING.COM] The S&P 500 is trading higher by 0.3%, while the Russell 2000 is trading lower by 0.4%.

One last look at the S&P 500 sectors shows mixed results. Consumer discretionary (+1.2%), real estate (+1.0%), and utilities (+0.7%) are in the leadership positions, while the materials (-0.9%), industrials (-0.5%), and financials (-0.4%) sectors lag in negative territory.

WTI crude futures settled higher by 2.8%, or $1.44, to $52.25/bbl.

[ReturntoSender]

Negative start to the week as profit-taking hits tech stocks
11-Jan-21 16:15 ET

Dow -89.28 at 31008.63, Nasdaq -165.54 at 13036.44, S&P -25.07 at 3799.61

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

[BRIEFING.COM] The S&P 500 declined 0.7% on Monday in a tech-driven decline that was more pronounced in the Nasdaq Composite (-1.3%). The Dow Jones Industrial Average (-0.3%) and Russell 2000 (-0.03%) finished closer to their flat lines amid relative strength in health care and cyclical stocks.

Technology stocks succumbed to profit-taking interest amid a continued rise in interest rates and renewed regulatory concerns after a host of companies like Facebook (FB 256.84, -10.73, -4.0%) and Twitter (TWTR 48.18, -3.30, -6.4%) restricted President Trump's online influence over the weekend.

Accordingly, the communication services (-1.8%), consumer discretionary (-1.9%), and information technology (-0.9%) sectors joined the rate-sensitive real estate (-1.7%) and utilities (-0.9%) sectors at the bottom of the standings. Tesla (TSLA 811.19, -68.83, -7.8%) shares pulled back 8% despite BoA Securities raising its price target on the stock to a Street-high $900 from $500.

Outside these groups, investors continued to put faith in an economic recovery, evident by the outperformances of the cyclical energy (+1.6%), financials (+0.4%), and materials (unch) sectors. The Philadelphia Semiconductor Index advanced 1.1%.

The health care sector (+0.5%) also finished higher amid a litany of upbeat guidance issued out of the JPMorgan Health Care Conference and strength in Eli Lilly (LLY 185.94, +19.53, +11.7%) following positive Phase 2 clinical results for treating Alzheimer's disease.

Exxon Mobil (XOM 46.84, +1.38, +3.0%) powered the energy space after Morgan Stanley upgraded the stock to Overweight from Equal Weight. Walgreens Boots Alliance (WBA 47.70, +2.49, +5.5%), meanwhile, was upgraded to the equivalent of a Buy rating at Guggenheim and Robert W. Baird.

U.S. Treasuries extended last week's retreat, driving yields higher across the curve, amid lingering expectations for more fiscal stimulus. The 2-yr yield increased two basis points to 0.15%, and the 10-yr yield increased three basis points to 1.13%. The U.S. Dollar Index increased 0.5% to 90.51. WTI crude futures declined 0.1% to $52.19/bbl.

Investors did not receive any economic data on Monday. Looking ahead to Tuesday, investors will receive the Consumer Price Index for December, the Treasury Budget for December, the Fed's Beige Book for January, and the weekly MBA Mortgage Applications Index.

Russell 2000 +5.9% YTD
Dow Jones Industrial Average +1.3% YTD
Nasdaq Composite +1.2% YTD
S&P 500 +1.2% YTD


Market Snapshot
Dow 31008.63 -89.28 (-0.29%)
Nasdaq 13036.44 -165.54 (-1.25%)
SP 500 3799.61 -25.07 (-0.66%)
10-yr Note -1/32 1.134

NYSE Adv 1238 Dec 1883 Vol 962.0 mln
Nasdaq Adv 1712 Dec 2046 Vol 6.8 bln


Industry Watch
Strong: Health Care, Energy, Financials, Materials

Weak: Information Technology, Communication Services, Consumer Discretionary, Real Estate


Moving the Market
-- Technology stocks hit by profit-taking interest and higher interest rates

-- Health care and cyclical stocks outperformed

-- Political headwinds



Crude futures settle little changed
11-Jan-21 15:25 ET

Dow -98.16 at 30999.75, Nasdaq -182.48 at 13019.50, S&P -28.58 at 3796.10
[BRIEFING.COM] The S&P 500 is down 0.7% while the Russell 2000 is down 0.1%.

One last look at the S&P sectors shows communication services (-1.9%), consumer discretionary (-1.9%), real estate (-1.7%), information technology (-1.0%), and utilities (-1.0%) leading the broader decline, while the energy (+1.5%), health care (+0.4%), and financials (+0.3%) sectors still trade higher.

WTI crude futures settled lower by 0.1%, or $0.06, to $52.19/bbl.

[ReturntoSender]

Down Week Ends on Lower Note
15-Jan-21 16:10 ET
Dow -177.26 at 30814.26, Nasdaq -114.14 at 12998.50, S&P -27.29 at 3768.25

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

[BRIEFING.COM] The stock market ended a shaky week on a lower note. The S&P 500 fell 0.7%, giving up 1.5% for the week while the Russell 2000 (-1.5%) underperformed, but it still gained 1.5% for the week.

The market had a lot of news to digest on Friday, starting with last evening's announcement of President-elect Biden's plan for $1.90 trln in spending. The plan includes direct payments of $1,400, increased unemployment benefits, and aid for state and local governments, but some elements of the legislation will require 60 votes in the Senate so it is unclear if the current version will be approved.

Participants received a big batch of economic data that was mixed, on balance. Industrial Production beat expectations in December and inflation at the producer level remained muted. There was a slight dip in the preliminary Michigan Consumer Sentiment survey for January, but most notably, Retail Sales fell 0.7% in December (Briefing.com consensus -0.2%) while the November decrease was revised down.

The SPDR S&P Retail ETF (XRT 71.98, -1.74, -2.4%) felt the pressure of weak retail sales, though the ETF rallied to a fresh record the day before. There were a few pockets of strength within the consumer discretionary sector (-0.8%) as Home Depot (HD 275.59, +7.25, +2.7%) rallied back above its 50-day moving average (271.15) while TJX Companies (TJX 68.46, +0.44, +0.7%) reclaimed its opening loss. Homebuilders also outperformed with the iShares Dow Jones US Home Construction ETF (ITB 56.95, +0.34, +0.6%) bouncing off its 50-day moving average (56.00).

Financials (-1.8%) ended among the laggards even though JPMorgan Chase (JPM 138.64, -2.53, -1.8%) and PNC (PNC 154.78, -5.57, -3.5%) kicked off the earnings season with better than expected results. Citigroup (C 64.23, -4.78, -6.9%) and Wells Fargo (WFC 32.04, -2.71, -7.8%) also beat earnings expectations but they were a bit short of revenue estimates.

The top-weighted technology sector (-1.0%) also contributed to today's slide, widening this week's loss to 2.6%. Chipmakers pulled back after a strong start to the month, but the PHLX Semiconductor Index (-2.1%) still gained 1.9% for the week.

The energy sector (-4.0%) was today's worst performer, but it still ended the week with a 3.1% gain, which kept the group well ahead of the remaining ten sectors. Crude oil fell $1.21, or 2.3%, to $52.38/bbl, narrowing this week's gain to $0.13 or 0.3%.

Treasuries rebounded from yesterday's drop with the 10-yr note erasing its entire decline from Thursday. The benchmark yield fell three basis points to 1.10%, surrendering one basis point for the week. This left the 2s10s spread at 98 bps, unchanged for the week.

Reviewing today's economic data:

December retail sales declined 0.7% mln (Briefing.com consensus -0.2%) and November retail sales were revised down to -1.4% from -1.1%. Excluding autos, December retail sales declined 1.4% m/m (Briefing.com consensus -0.2%) and were revised down to -1.3% from -0.9% for November.
The key takeaway from the report is that it is clear consumer spending decelerated at the end of the fourth quarter, partly because of expiring benefits, weakening confidence in the short-term outlook, and restrictions on certain activities due to worsening coronavirus trends.
The Producer Price Index for final demand was up 0.3% m/m in December (Briefing.com consensus 0.4%) while the index for final demand, excluding food and energy, was up 0.1%, as expected. That left the yr/yr readings at just 0.8% and 1.2%, respectively.
The key takeaway from the report is that inflation at the producer level remains in check.
Industrial production increased 1.6% m/m in December (Briefing.com consensus 0.4%) following an upwardly revised 0.5% increase (from 0.4%) in November. The capacity utilization rate jumped to 74.5% (Briefing.com consensus 73.5%) from an upwardly revised 73.4% (from 73.3%) in November.
The key takeaway from the report is the continued strength in manufacturing output, which occurred despite a 1.6% decline in the index for motor vehicles and parts.
The preliminary January reading for the University of Michigan Index of Consumer Sentiment checked in at 79.2 (Briefing.com consensus 80.0) versus the final reading of 80.7 for December.
While there was a slight drop in consumer sentiment, the key takeaway is that it was only slight given the contentious issues related to rising coronavirus cases/deaths, the insurrection, and the impeachment of President Trump.
The Empire State Manufacturing Survey decreased to 3.5 in January (Briefing.com consensus 6.0) from 4.9 in December.
Business Inventories increased 0.5% in November (Briefing.com consensus 0.5%) after increasing a revised 0.8% (from 0.7%) in October.

The stock market will be closed on Monday in observance of Martin Luther King Jr. Day.

Russell 2000 +7.5% YTD
Nasdaq Composite +0.9% YTD
Dow Jones Industrial Average +0.7% YTD
S&P 500 +0.3% YTD

Market Snapshot
Dow 30814.26 -177.26 (-0.57%)
Nasdaq 12998.50 -114.14 (-0.87%)
SP 500 3768.25 -27.29 (-0.72%)
10-yr Note +11/32 1.097
NYSE Adv 1016 Dec 2137 Vol 1.23 bln
Nasdaq Adv 1185 Dec 2594 Vol 6.28 bln

Industry Watch
Strong: Communication Services, Real Estate, Health Care, Utilities
Weak: Energy, Industrials, Financials, Materials, Consumer Discretionary, Technology

Moving the Market

President-elect Biden announces $1.9 trln spending plan

December Retail Sales miss expectations

JPMorgan Chase (JPM) reports better than expected results to start Q4 reporting season

Crude Oil Narrows Week's Gain
15-Jan-21 15:25 ET
Dow -96.75 at 30894.71, Nasdaq -82.97 at 13029.68, S&P -17.97 at 3777.57

[BRIEFING.COM] The S&P 500 trades lower by 0.5% with 30 minutes remaining in the session. The Dow (-0.3%) hovers a bit closer to its flat line while the Nasdaq (-0.6%) underperforms.

The energy sector (-3.7%) is today's weakest performer but even with today's sharp slide, the sector remains on track to finish with a 3.5% gain for the week while the next best performer (real estate) has gained 2.0% since last Friday.

Crude oil finished today's pit session with a $1.21, or 2.3%, loss at $52.38/bbl. The energy component added $0.13, or 0.3%, for the week.

[ReturntoSender]

Apple and company carry Nasdaq to new heights
21-Jan-21 16:15 ET
Dow -12.37 at 31176.01, Nasdaq +73.67 at 13530.92, S&P +1.22 at 3853.07

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

[BRIEFING.COM] The Nasdaq Composite (+0.6%) and S&P 500 (+0.03%) closed at new record highs on Thursday, largely due to continued strength in several mega-cap stocks that disproportionately benefited the Nasdaq. The Dow Jones Industrial Average (-0.04%) finished on the negative side of its flat line, and the Russell 2000 declined 0.9%.

Apple (AAPL 136.87, +4.84, +3.7%) was the most influential mover today with a 3.7% gain, which was aided by a price-target increase to $152 from $144 at Morgan Stanley. Amazon (AMZN 3306.99, +43.61, +1.3%) and Facebook (FB 272.87, +5.39, +2.0%) joined Apple as mega-cap leaders and extended their weekly gains to between 6-8%.

These household names propped up the S&P 500 information technology (+1.3%), consumer discretionary (+0.6%), and communication services (+0.3%) sectors. Semiconductor, homebuilding, and retail stocks also contributed to their positive performances.

These were the only S&P sectors that closed higher, though. The energy sector (-3.4%) succumbed to profit-taking interest that trimmed its monthly gain to 11.5%. The materials (-1.5%), financials (-1.1%), and industrials (-0.8%) sectors also finished as laggards.

Providing more color on the homebuilding and semiconductor stocks, these spaces drew support from a better-than-expected housing starts and building permits report for December and a strong earnings report from Intel (INTC 62.46, +3.79, +6.5%), which was released early.

The iShares US Home Construction ETF (ITB 61.38, +0.90, +1.5%) and Philadelphia Semiconductor Index (+1.5%) closed at record highs.

In other developments, weekly initial claims remained elevated at 900,000 (Briefing.com consensus 845,000); Travelers (TRV 148.72, +3.70, +2.6%) beat EPS estimates on below-consensus revenue; and President Biden signed many executive orders, including one to invoke the Defense Production Act to help increase the supply of PPE to curb the spread of the coronavirus.

Longer-dated U.S. Treasuries finished on a lower note. The 2-yr yield was flat at 0.12%, and the 10-yr yield increased two basis points to 1.11%. The U.S. Dollar Index declined 0.4% to 90.08. WTI crude futures declined 0.3%, or $0.16, to $53.12/bbl.

Reviewing Thursday's economic data:

Initial claims for the week ending January 16 declined by 26,000 to 900,000 (Briefing.com consensus 845,000). Continuing claims for the week ending January 9 decreased by 127,000 to 5.054 million.
The key takeaway from the report should speak for itself. The level of initial claims is still terribly high and indicative of why calls for more jobless assistance are being made.
Housing starts increased 5.8% m/m in December to a seasonally adjusted annual rate of 1.669 million (Briefing.com consensus 1.560 million). That was the strongest pace of starts since September 2006. Building permits rose 4.5% m/m to 1.709 million (Briefing.com consensus 1.600 million), which was the strongest pace since August 2006.
The key takeaway from the report is that the growth was driven entirely by single-unit dwellings. The growth there was strong, too, which is a good indicator for the homebuilding stocks.
The Philadelphia Fed Index jumped to 26.5 in January (Briefing.com consensus 12.0) from an upwardly revised 9.1 in December (from 8.5).

Looking ahead, investors will receive Existing Home Sales for December and the flash IHS Markit Manufacturing and Services PMIs for January on Friday.

Russell 2000 +8.4% YTD
Nasdaq Composite +5.0% YTD
S&P 500 +2.6% YTD
Dow Jones Industrial Average +1.9% YTD

Market Snapshot
Dow 31176.01 -12.37 (-0.04%)
Nasdaq 13530.92 +73.67 (0.55%)
SP 500 3853.07 +1.22 (0.03%)
10-yr Note -23/32 1.099
NYSE Adv 1223 Dec 1908 Vol 890.2 mln
Nasdaq Adv 1675 Dec 2132 Vol 7.1 bln

Industry Watch
Strong: Information Technology, Consumer Discretionary, Communication Services
Weak: Energy, Industrials, Financials, Materials

Moving the Market

-- S&P 500 and Nasdaq close at record highs, although the benchmark index finished marginally higher

-- Continued strength in mega-cap stocks, while most sectors finished lower

-- Better-than-expected housing starts and building permits data for December

WTI crude futures settle slightly lower, energy stocks fall
21-Jan-21 15:25 ET
Dow +17.67 at 31206.05, Nasdaq +87.38 at 13544.63, S&P +6.22 at 3858.07

[BRIEFING.COM] The S&P 500 continues to trade higher by 0.2% while the Nasdaq is trading at session highs with a 0.7% gain.

One last look at the S&P 500 sectors shows information technology (+1.4%), consumer discretionary (+0.8%), and communication services (+0.4%) still trading in positive territory. The energy sector is the weakest link with a 3.1% decline, followed by the materials sector with a 1.3% decline.

WTI crude futures settled lower by 0.3%, or $0.16, to $53.12/bbl.

[ReturntoSender]

Nasdaq and Russell 2000 close at fresh record highs
22-Jan-21 16:15 ET
Dow -179.03 at 30996.98, Nasdaq +12.15 at 13543.07, S&P -11.60 at 3841.47

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

[BRIEFING.COM] The Nasdaq Composite (+0.1%) eked out another closing record high on Friday, overcoming a negative start and capping off a strong week for the tech-sensitive index. The Russell 2000 rallied 1.3% and closed at a record high in a steady advance off opening lows, while the S&P 500 (-0.3%) and Dow Jones Industrial Average (-0.6%) closed lower.

The negative start was attributed to news that EU leaders are considering tighter lockdown measures to curb the spread of the coronavirus, including a UK variant that could have a higher mortality rate, and reports of more Republican lawmakers pushing back against President Biden's $1.9 trillion stimulus proposal.

These headlines stirred lingering growth concerns, which were manifested in the underperformance of the S&P 500 financials (-0.7%), industrials (-0.5%), and energy (-0.5%) sectors. Oil prices ($52.33/bbl, -0.79, -1.5%) also softened up, and the growth-sensitive 10-yr Treasury note yield decreased two basis points to 1.09% amid an uptick in demand.

Most sectors gradually pared losses throughout the day, while the counter-cyclical real estate (+0.3%), utilities (+0.2%), and communication services (+0.1%) sectors finished with modest gains.

At the individual stock level, money continued to flow into Apple (AAPL 139.07, +2.20, +1.6%) and Microsoft (MSFT 225.95, +0.98, +0.4%), two of the largest and most liquid stocks in the market, following positive-minded analyst recommendations. Speculators, meanwhile, continued to reap the benefits of their bets, most notably GameStop (GME 65.01, +21.98, +51.1%) today.

On a related note, Apple had its price target raised to $153 from $133 at Cowen, and Microsoft was initiated with a Buy rating at Goldman Sachs.

Separately, shares of Intel (INTC 56.66, -5.80, -9.3%) and IBM (IBM 118.61, -13.04, -9.9%) both dropped nearly 10.0% following their earnings reports and commentary. Note, Intel's positive results were leaked prior to yesterday's close, so the negative reaction might have attributed to the company's acknowledgment that it will continue to manufacture most of its products through 2023.

The 2-yr yield was unchanged at 0.12%. The U.S. Dollar Index increased 0.1% to 90.23.

Reviewing Friday's economic data, which featured Existing Home Sales for December:

Existing home sales increased 0.7% m/m in December to a seasonally adjusted annual rate of 6.76 million (Briefing.com consensus 6.50 million).
The key takeaway from the report is that the supply of existing homes is at an all-time low. That is going to be a pressure point that feeds higher prices, shuts out an increasing number of first-time buyers, and bolsters the prospects for new home sales.
The January IHS flash Markit Manufacturing PMI checked in at 59.1 versus 57.1 in December; the January flash Services PMI checked in at 57.5 versus 54.8 in December.

Investors will not receive any notable economic data on Monday.

Russell 2000 +9.8% YTD
Nasdaq Composite +5.1% YTD
S&P 500 +2.3% YTD
Dow Jones Industrial Average +1.3% YTD

Market Snapshot
Dow 30996.98 -179.03 (-0.57%)
Nasdaq 13543.07 +12.15 (0.09%)
SP 500 3841.47 -11.60 (-0.30%)
10-yr Note +25/32 1.085
NYSE Adv 1683 Dec 1436 Vol 1.1 bln
Nasdaq Adv 2293 Dec 1493 Vol 5.9 bln

Industry Watch
Strong: Communication Services, Real Estate, Utilities
Weak: Energy, Industrials, Materials, Financials

Moving the Market

-- Nasdaq and Russell 2000 close at fresh record highs, overcoming negative starts

-- IBM (IBM) and Intel (INTC) dropped nearly 10.0% after earnings

-- Cyclical stocks underperformed amid lingering growth concerns

Crude futures settle on lower note
22-Jan-21 15:30 ET
Dow -113.34 at 31062.67, Nasdaq +19.73 at 13550.65, S&P -4.44 at 3848.63

[BRIEFING.COM] The S&P 500 is down 0.1% but is on record-close watch since any positive finish would be good for a closing record high.

One last look at the S&P 500 sectors shows no sector trading higher or lower by at least 1.0%. The energy sector (-0.7%) remains the weakest link but is well off session lows, while the real estate sector (+0.5%) outperforms with a 0.5% gain.

WTI crude futures settled lower by 1.5%, or $0.79, to $52.33/bbl. On a related note, the EIA reported an unexpected build (4.35 mln) in weekly crude inventory.

[ReturntoSender]

Record closes for the S&P 500 and Nasdaq
25-Jan-21 16:15 ET
Dow -36.98 at 30960.00, Nasdaq +92.93 at 13636.00, S&P +13.89 at 3855.36

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

[BRIEFING.COM] The S&P 500 (+0.4%) and Nasdaq Composite (+0.7%) closed at record highs on Monday in a volatile session, as gains in the mega-caps and other defensive-oriented stocks outweighed losses in cyclical stocks. The Dow Jones Industrial Average (-0.1%) and Russell 2000 (-0.3%) closed in the red but off session lows.

The session started on a hot note, with shares of Apple (AAPL 142.92, +3.86, +2.8%) and Tesla (TSLA 880.80, +34.16, +4.0%) leading the mega-cap charge as analysts raised their price targets ahead of their earnings reports this week, and stocks with high short-interest positions like GameStop (GME 76.79, +11.78, +18.1%) continued to squeeze short sellers. GME shares were up 145% at one point today.

At their intraday morning highs, the S&P 500 was up 0.5%, the Nasdaq was up 1.4%, and the Russell 2000 was up 1.2% at an all-time high. The Dow was never positive. The major indices, however, quickly took a relatively precipitous fall into negative territory on no specific news catalyst, suggesting a profit-taking motive among investors.

True to recent usual form, investors bought the intraday dip, but generally preferred to stick with most of the mega-cap names and lower-beta stocks within the S&P 500 utilities (+2.0%), consumer staples (+0.9%), real estate (+0.8%), and health care (+0.7%) sectors. The information technology sector rose 0.9%.

The cyclical energy (-1.1%), financials (-0.8%), industrials (-0.7%), and materials (-0.5%) sectors finished lower amid news that President Biden's $1.9 trillion stimulus deal is facing bipartisan resistance and could be pushed back to mid-March. The latter was an observation from Senate Majority Leader Schumer.

Lingering recovery concerns contributed to increased demand for longer-dated Treasuries, which caused some curve-flattening activity that pressured the financials space. The 10-yr yield fell five basis points to 1.04%, versus a flat reading on the 2-yr yield (0.12%). The U.S. Dollar Index increased 0.2% to 90.37. WTI crude futures rose 0.8%, or $0.44, to $52.77/bbl.

In other developments, Moderna (MRNA 147.00, +15.98, +12.2%) said its COVID-19 vaccine does protect against the variants that originated in the UK and South Africa, President Biden signed an executive order aimed at restoring the competitiveness of domestic manufacturers, and California Governor Newsom confirmed that the stay-at-home order has been removed in all regions.

Investors did not receive any notable economic data on Monday. Looking ahead, the Consumer Confidence Index for January, the S&P Case-Shiller Home Price Index for November, and the FHFA Housing Price Index for January will be released on Tuesday.

Russell 2000 +9.5% YTD
Nasdaq Composite +5.8% YTD
S&P 500 +2.6% YTD
Dow Jones Industrial Average +1.2% YTD

Market Snapshot
Dow 30960.00 -36.98 (-0.12%)
Nasdaq 13636.00 +92.93 (0.69%)
SP 500 3855.36 +13.89 (0.36%)
10-yr Note +6/32 1.030
NYSE Adv 1309 Dec 1857 Vol 1.2 bln
Nasdaq Adv 1792 Dec 1973 Vol 7.0 bln

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

Moving the Market

-- Positive start rolls over amid no specific catalysts, but investors are buying the dip

-- Short-squeeze continues in speculative stocks

-- Value and cyclical stocks underperform

Crude futures settle on higher note
25-Jan-21 15:25 ET
Dow -124.91 at 30872.07, Nasdaq +29.86 at 13572.93, S&P +0.86 at 3842.33

[BRIEFING.COM] The S&P 500 is trading little changed ahead of a busy rest of the week, which will include key earnings reports and a Fed policy decision on Wednesday.

One last look at the S&P 500 sectors shows utilities (+1.6%), real estate (+0.9%), and consumer staples (+0.8%) outperforming in positive territory, while the energy (-1.5%), materials (-1.0%), and financials (-0.8%) sectors continue to lag in negative territory.

WTI crude futures settled higher by 0.8%, or $0.44, to $52.77/bbl.

[ReturntoSender]

Dow -22.96 at 30937.04, Nasdaq -9.93 at 13626.07, S&P -5.74 at 3849.62

Market takes a breather in mixed session
26-Jan-21 16:15 ET
Dow -22.96 at 30937.04, Nasdaq -9.93 at 13626.07, S&P -5.74 at 3849.62

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

[BRIEFING.COM] The large-cap indices closed slightly lower on Tuesday, with the S&P 500 losing 0.2% after hitting an all-time high shortly after the open. The Nasdaq Composite (-0.1%) and Dow Jones Industrial Average (-0.1%) performed comparably in a tight-ranged session, while the Russell 2000 (-0.6%) underperformed.

Sector performances were mixed. The S&P 500 real estate (+1.1%), consumer staples (+0.9%), and communication services (+0.8%) finished atop the standings with decent gains, while the energy (-2.1%), materials (-1.4%), utilities (-1.0%), industrials (-0.9%), and financials (-0.8%) sectors struggled in negative territory.

In a sense, market dynamics remained consistent with those in recent sessions, such that value stocks underperformed, mega-cap stocks provided influential support, and GameStop (GME 147.98, +71.19, +92.7%) continued to captivate Wall Street with its speculative run. Microsoft (MSFT 232.33, +2.29, +1.2%) gained 1% ahead of its earnings report after the close.

The latest batch of earnings reports, meanwhile, came in mostly better than expected with little market-moving effect.

Johnson & Johnson (JNJ 170.48, +4.50, +2.7%), General Electric (GE 11.29, +0.30, +2.7%), and 3M (MMM 175.95, +5.56, +3.3%) were notable winners, while Verizon (VZ 56.57, -1.85, -3.2%) and American Express (AXP 116.15, -5.00, -4.1%) had disappointing reactions to their positive results. JNJ and Verizon also issued upbeat guidance.

Separately, shares of Beyond Meat (BYND 186.83, +28.10, +17.7%) gained 18% after the company formed a joint venture with PepsiCo (PEP 141.80, +1.62, +1.2%) to create plant-based snacks and beverages. Twitter (TWTR 49.67, +1.83, +3.8%) shares rose 4% after the company said it acquired Revue, a service to create editorial newsletters.

U.S. Treasuries finished little changed in a lackluster session. The 2-yr yield was flat at 0.12%, and the 10-yr yield was flat at 1.04%. The U.S. Dollar Index decreased 0.3% to 90.14. WTI crude futures decreased 0.3%, or $0.15, to $52.62/bbl.

Reviewing Tuesday's economic data:

The Conference Board's Consumer Confidence Index increased to 89.3 in January (Briefing.com consensus 89.0) from a downwardly revised 87.1 (from 88.6) in December.
The key takeaway from the report is that the optimism about the short-term outlook outweighed a weakening view about current business and labor market conditions.
The S&P Case-Shiller Home Price Index increased 9.1% in November (Briefing.com consensus 9.0%) following an upwardly revised 8.0% reading in October (from +7.9%).
The FHFA Housing Price Index increased 1.0% in November.

Looking ahead, investors will receive Durable Goods Orders for December, the FOMC Rate Decision, and the weekly MBA Mortgage Applications Index on Wednesday.

Russell 2000 +8.9% YTD
Nasdaq Composite +5.7% YTD
S&P 500 +2.5% YTD
Dow Jones Industrial Average +1.1% YTD

Market Snapshot
Dow 30937.04 -22.96 (-0.07%)
Nasdaq 13626.07 -9.93 (-0.07%)
SP 500 3849.62 -5.74 (-0.15%)
10-yr Note -1/32 1.042
NYSE Adv 1283 Dec 1852 Vol 1.1 bln
Nasdaq Adv 1436 Dec 2381 Vol 6.6 bln

Industry Watch
Strong: Communication Services, Real Estate, Consumer Staples
Weak: Materials, Financials, Utilities, Industrials, Energy

Moving the Market

-- Market takes a breather in mixed and tight-ranged session

-- Earnings reports were mostly better than expected

Crude futures edge lower, energy stocks lag
26-Jan-21 15:25 ET
Dow +54.01 at 31014.01, Nasdaq +14.59 at 13650.59, S&P +4.42 at 3859.78

[BRIEFING.COM] The S&P 500 is up 0.1% and is vying for a record close with a positive finish.

One last look at the sectors shows mixed results. Real Estate (+1.2%), communication services (+0.9%), and consumer staples (+1.0%) are currently in the lead, while the energy (-1.7%) and materials (-0.8%) sectors continue to underperform in the red.

WTI crude futures settled lower by 0.3%, or $0.15, to $52.62/bbl.

[ReturntoSender]

Rebound rally paced by the mega-caps
01-Feb-21 16:15 ET
Dow +229.29 at 30211.91, Nasdaq +332.70 at 13403.40, S&P +59.62 at 3773.86

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

[BRIEFING.COM] The S&P 500 rose 1.6% on Monday in a broad-based advance paced by the mega-caps, as investors used last week's decline as an opportunity to buy the dip. The Nasdaq Composite (+2.6%) and Russell 2000 (+2.5%) outperformed with gains over 2.0%, while the Dow Jones Industrial Average increased 0.8%.

Key leadership was provided by market favorites like Microsoft (MSFT 239.65, +7.69, +3.3%), Amazon (AMZN 3342.88, +136.68, +4.3%), Alphabet (GOOG 1901.35, +65.61, +3.6%), and Tesla (TSLA 839.81, +46.28, +5.8%), which in turn boosted the information technology (+2.5%), consumer discretionary (+2.8%), and communication services (+1.8%) sectors.

Every other S&P 500 sector also closed higher, with the consumer staples sector (+0.02%) eking out a fractional gain. The Philadelphia Semiconductor Index bounced back 3.9%.

Because last week's decline was largely attributed to the short-squeeze mania, it's worth noting that GameStop (GME 225.00, -100.00, -30.8%) shares dropped 31% on Monday in a move that might have comforted fundamentally-oriented investors and restored risk sentiment. Wall Street strategists also eased concerns about the mania having a contagion effect on the broad market.

The silver market, meanwhile, appeared to be the latest short-squeeze target, although the price action was noticeably tamer. Silver futures settled higher by 7.9% to $29.21/ozt.

In positive-sounding macro developments, the January ISM Manufacturing Index checked in at 58.7% (Briefing.com consensus 60.1%) for its eighth straight expansionary reading, President Biden was said to be committed to his $1.9 trillion stimulus bill despite a $600 billion proposal from GOP senators, and reports indicated that COVID-19 vaccination rates are increasing.

The market is expecting additional fiscal stimulus, whether it be targeted or broad, especially after the Congressional Budget Office (CBO) said it doesn't expect employment to recover to pre-pandemic levels until 2024. Note, the CBO also projected that real GDP would return to pre-pandemic levels in mid-2021.

U.S. Treasuries finished on a higher note despite the rebound effort in the stock market, signaling a cautious-minded sentiment. The 2-yr yield decreased one basis point to 0.11%, and the 10-yr yield decreased two basis points to 1.08%. The U.S. Dollar Index advanced 0.5% to 91.05. WTI crude futures rose 2.6%, or $1.38, to $53.56/bbl.

Reviewing Monday's economic data:

The ISM Manufacturing Index for January slipped to 58.7% (Briefing.com consensus 60.1%) from a downwardly revised 60.5% (from 60.7%) for December. The dividing line between expansion and contraction is 50.0%. January marked the eighth straight month the ISM Manufacturing Index has been above 50.0%.
The key takeaway from the report is the recognition that manufacturing activity overall remained at a healthy level in January despite the surge in coronavirus cases, shutdown measures enacted to contain the spread of the coronavirus, and the political tumult in the U.S.
Total construction spending increased 1.0% m/m in December (Briefing.com consensus 0.8%) after increasing an upwardly revised 1.1% (from 0.9%) in November. Total private construction spending rose 1.2% m/m and total public construction spending increased 0.5%.
The key takeaway from the report is that residential construction spending continued at a solid clip, fueled by robust demand for new homes.
The January IHS Markit Manufacturing PMI increased to 59.2 from 59.1 in December.

There is no economic data of note scheduled for Tuesday.

Russell 2000 +7.7% YTD
Nasdaq Composite +4.0% YTD
S&P 500 +0.5% YTD
Dow Jones Industrial Average -1.3% YTD

Market Snapshot
Dow 30211.91 +229.29 (0.76%)
Nasdaq 13403.40 +332.70 (2.55%)
SP 500 3773.86 +59.62 (1.61%)
10-yr Note -1/32 1.070
NYSE Adv 2492 Dec 700 Vol 1.1 bln
Nasdaq Adv 2965 Dec 894 Vol 6.9 bln

Industry Watch
Strong: Information Technology, Consumer Discretionary, Real Estate, Communication Services
Weak: Consumer Staples, Energy, Utilities

Moving the Market

-- Stock market rebounds in buy-the-dip trade

-- Leadership from the mega-cap stocks

-- GameStop (GME) shares dropped 31%

-- Encouraging manufacturing data, continued expectations for additional stimulus

WTI crude futures settle in positive territory
01-Feb-21 15:30 ET
Dow +288.90 at 30271.52, Nasdaq +334.15 at 13404.85, S&P +64.17 at 3778.41

[BRIEFING.COM] The S&P 500 is up 1.7% and is back in positive territory for the year.

One last look at the S&P sectors before the close shows information technology (+2.7%), consumer discretionary (+2.4%), and communication services (+2.1%) leading the advance with gains over 2.0%. The consumer staples sector underperforms with a modest 0.3% gain.

WTI crude futures settled higher by 2.6%, or $1.38, to $53.56/bbl.

[ReturntoSender]

Stock market closes higher in broad-based advance
02-Feb-21 16:15 ET
Dow +475.90 at 30687.81, Nasdaq +209.38 at 13612.78, S&P +52.41 at 3826.27

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

[BRIEFING.COM] The S&P 500 gained 1.4% on Tuesday in a broad-based advance, bringing its two-day gain to 3.0%. The Dow Jones Industrial Average (+1.6%) and Nasdaq Composite (+1.6%) edged out the benchmark index in terms of performance, while the Russell 2000 gained 1.2%.

All 11 S&P 500 sectors contributed to the advance, including the financials (+2.5%), industrials (+2.2%), and consumer discretionary (+2.0%) sectors with at least 2.0% gains. The health care (+0.3%) and real estate (+0.4%) sectors lagged with more modest gains.

The cyclical leadership suggested investors continued to bet on an economic recovery, supported by increasing vaccination rates and expectations for additional fiscal stimulus. The cratering in shares of GameStop (GME 90.00, -135.00, -60.0%) and AMC Entertainment (AMC 7.82, -5.48, -41.2%) was cited as a positive factor that helped guide investors back to the bigger economic picture.

In addition, UPS (UPS 160.26, +4.00, +2.6%) and Exxon Mobil (XOM 45.63, +0.71, +1.6%) highlighted the batch of better-than-expected earnings reports, and Amazon (AMZN 3380.00, +37.12, +1.1%) and Alphabet (GOOG 1927.51, +26.16, +1.4%) finished higher ahead their earnings reports after the close.

Shares of Pfizer (PFE 34.99, -0.81, -2.3%), on the other hand, declined 2.3% after the Dow component came up short of EPS expectations. Note, Pfizer did beat revenue estimates, issued upbeat FY21 guidance, and provided positive-sounding vaccine delivery commentary.

In other corporate news, AstraZeneca's (AZN 50.06, -0.34, -0.7%) COVID-19 vaccine was 82.4% effective with 3-month intervals used in UK trials, Uber (UBER 56.46, +3.70, +7.0%) agreed to acquire Drizly for approximately $1.1 billion in cash and stock, and Dell (DELL 77.17, +3.22, +4.4%) was upgraded to Buy from Neutral at Goldman.

Longer-dated U.S. Treasuries succumbed to selling pressure amid the positive outing in stocks and renewed growth optimism. The 10-yr yield increased three basis points to 1.11%, and the 2-yr yield remained unchanged at 0.11%. The U.S. Dollar Index increased 0.1% to 91.07. WTI crude futures rose 2.3%, or $1.21, to $54.77/bbl.

Investors did not receive any economic data on Tuesday. Looking ahead to Wednesday, investors will receive the ADP Employment Change Report for January, the ISM Non-Manufacturing Index for January, the final IHS Markit Services PMI for January, and the weekly MBA Mortgage Applications Index.

Russell 2000 +8.9% YTD
Nasdaq Composite +5.6% YTD
S&P 500 +1.9% YTD
Dow Jones Industrial Average +0.3% YTD

Market Snapshot
Dow 30687.81 +475.90 (1.58%)
Nasdaq 13612.78 +209.38 (1.56%)
SP 500 3826.27 +52.41 (1.39%)
10-yr Note -24/32 1.107
NYSE Adv 2406 Dec 754 Vol 1.1 bln
Nasdaq Adv 2826 Dec 1009 Vol 7.1 bln

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

Moving the Market

-- Stocks extend rebound rally

-- Broad-based gains led by cyclical stocks and blue-chip companies

-- Short-squeeze stocks crater

WTI crude futures gain more than 2%
02-Feb-21 15:25 ET
Dow +568.01 at 30779.92, Nasdaq +230.94 at 13634.34, S&P +63.14 at 3837.00

[BRIEFING.COM] The S&P 500 continues to trade higher by 1.7% and has nearly recouped all of last week's decline, including yesterday's gain.

One last look at the S&P 500 sectors shows green across the board. The financials (+2.7%), consumer discretionary (+2.4%), and industrials (+2.6%) sectors continue to lead the market higher with gains over 2.0%, while the real estate (+0.7%) and health care (+0.8%) sectors continue to underperform with more modest gains.

WTI crude futures settled higher by 2.3%, or $1.21, to $54.77/bbl amid the general growth optimism in the market.
Harley-Davidson and Cirrus Logic fall after earnings
02-Feb-21 14:55 ET
Dow +580.46 at 30792.37, Nasdaq +244.07 at 13647.47, S&P +66.72 at 3840.58

[BRIEFING.COM] The S&P 500 continues to trade at session highs with a 1.8% gain. The Russell 2000 underperforms with a 1.2% gain.

It's a good day for sure, but not all stocks are rising with the tide. Besides the short-squeeze stocks, shares of Harley-Davidson (HOG 33.15, -7.00, -17.4%) and Cirrus Logic (CRUS 91.21, -6.65, -6.8%) are down 17% and 7%, respectively, following their earnings reports.

Harley missed Q4 estimates, while Cirrus reported in-line quarterly guidance that reportedly disappointed investors.

As a reminder, Amazon (AMZN 3416.29, +73.43, +2.2%) and Alphabet (GOOG 1937.86, +36.51, +1.9%) will report earnings after the close.

[ReturntoSender]

Mixed session despite strong earnings from Alphabet and Amazon
03-Feb-21 16:15 ET
Dow +36.12 at 30723.60, Nasdaq -2.23 at 13610.55, S&P +3.86 at 3830.17

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

[BRIEFING.COM] The stock market finished relatively unchanged on Wednesday, even though Alphabet (GOOG 2070.07, +142.50, +7.4%) and Amazon (AMZN 3312.53, -67.47, -2.0%) reported exceptional earnings results. The S&P 500 (+0.1%), Nasdaq Composite (unch), and Dow Jones Industrial Average (+0.1%) closed little changed, while the Russell 2000 gained 0.4%.

Alphabet shares deservedly surged 7% after the company crushed EPS estimates, but so did Amazon and its shares fell 2%. Presumably, AMZN shares were pressured by an unexpected announcement that Jeff Bezos will step down as CEO and transition into Executive Chair in the third quarter.

Price action at the index level was relatively muted throughout the day, as the market appeared to grow tired legs after a strong two-day rally.

The S&P 500 communication services sector climbed 2.1%, largely due to Alphabet's influence and a trickle-down effect on other ad-based companies. The energy sector advanced the most with a 4.3% gain amid a lingering reopening optimism. Crude futures ($55.70, +0.93, +1.7%) settled above $55.00/bbl.

The consumer discretionary (-0.8%), health care (-0.7%), real estate (-0.4%), and information technology (-0.3%) sectors were on the losing end of the action.

In the health care space, AbbVie (ABBV 106.95, +3.48, +3.4%) and Biogen (BIIB 263.25, -14.47, -5.2%) trended in opposite directions following their earnings reports. GW Pharma (GWPH 211.37, +65.12, +44.5%) agreed to be acquired by Jazz Pharmaceuticals (JAZZ 151.21, -6.08, -3.9%) for about $7.2 billion in cash and stock.

Separately, the ISM Non-Manufacturing Index rose to 58.7% in January (Briefing.com consensus 57.0%) from an upwardly revised 57.7% (from 57.2%) in December. The ADP Employment Change report estimated that 174,000 jobs were added to private-sector payrolls in January (Briefing.com consensus +55,000) following an upwardly revised 78,000 decline (from -123,000) in December.

The better-than-expected economic data continued to suggest the economy is heading in the right direction, which contributed to continued selling interest in longer-dated Treasuries. The 10-yr yield increased three basis points to 1.13%, and the 2-yr yield was flat at 0.11%. The U.S. Dollar Index decreased 0.1% to 91.13. The CBOE Volatility Index dropped 10.4% to 22.91 amid decreased hedging interest.

Reviewing Wednesday's economic data:

The ISM Non-Manufacturing Index rose to 58.7% in January (Briefing.com consensus 57.0%) from an upwardly revised 57.7% (from 57.2%) in December. The dividing line between expansion and contraction is 50.0%. The January reading is the highest since February 2019 and reflects a pickup in the pace of expansion from December.
The key takeaway from the report is the recognition that the pace of activity in the services sector accelerated in January despite the surge in coronavirus cases, the political tumult, and shutdown measures aimed at curbing the spread of the coronavirus.
The ADP Employment Change report estimated that 174,000 jobs were added to private-sector payrolls in January (Briefing.com consensus +55,000) following an upwardly revised 78,000 decline (from -123,000) in December.
The IHS Markit Services PMI for January was revised higher to 58.3 from 57.5 in the preliminary reading.

Looking ahead, investors will receive the preliminary Q4 readings for Productivity and Unit Labor Costs, weekly Initial and Continuing Claims, and Factory Orders for December on Thursday.

Russell 2000 +9.4% YTD
Nasdaq Composite +5.6% YTD
S&P 500 +2.0% YTD
Dow Jones Industrial Average +0.4% YTD

Market Snapshot
Dow 30723.60 +36.12 (0.12%)
Nasdaq 13610.55 -2.23 (-0.02%)
SP 500 3830.17 +3.86 (0.10%)
10-yr Note -3/32 1.137
NYSE Adv 1838 Dec 1332 Vol 1.0 bln
Nasdaq Adv 2389 Dec 1460 Vol 7.4 bln

Industry Watch
Strong: Communication Services, Energy
Weak: Real Estate, Health Care, Information Technology

Moving the Market

-- Alphabet (GOOG) and Amazon (AMZN) crushed EPS estimates, mixed reactions

-- Two-day rally taking a breather

-- Energy stocks extend recent gains

WTI crude futures settle above $55 per barrel
03-Feb-21 15:25 ET
Dow +83.27 at 30770.75, Nasdaq +23.73 at 13636.51, S&P +12.22 at 3838.53

[BRIEFING.COM] The S&P 500 is up 0.3%, and the Russell 2000 is up 0.4%.

One last look at the S&P sectors before the close shows energy (+4.1%) and communication services (+2.5%) firmly atop the leaderboard, while the consumer discretionary sector (-0.6%) slips to the bottom spot as shares of Amazon (AMZN 3327.66, -52.76, -1.6%) extend losses.

WTI crude futures settled higher by 1.7%, or $0.93, to $55.70/bbl.

[ReturntoSender]

S&P 500, Nasdaq, and Dow close at record highs
12-Feb-21 16:15 ET
Dow +27.70 at 31458.40, Nasdaq +69.70 at 14095.49, S&P +18.45 at 3934.83

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

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.5%), and Dow Jones Industrial Average (+0.1%) closed at record highs on Friday, thanks to a strong finish ahead of a three-day weekend. The Russell 2000 increased 0.2%.

The economic reopening narrative shined throughout the session. Cyclical sectors outperformed, WTI crude futures ($59.47/bbl, +1.24, +2.1%) settled close to $60 per barrel, and the yield on the 10-yr Treasury note rose four basis points to 1.20% amid increased selling interest.

The higher oil prices and Treasury yields contributed to the relative strength in the S&P 500 energy (+1.4%) and financials (+1.0%) sectors, which were joined by the materials (+1.0%), industrials (+0.7%), and health care (+0.8%) sectors atop the standings. The latter benefited from a 12% earnings-driven gain in Illumina (ILMN 504.76, +53.54, +11.9%).

On the downside, the utilities (-0.8%) and real estate (-0.1%) sectors lagged in negative territory. Walt Disney (DIS 187.67, -3.24, -1.7%) weighed on the communication services sector (+0.1%) despite reporting positive earnings results and strong subscriber numbers.

Shares of NVIDIA (NVDA 598.45, -11.58, -1.9%) fell 2% after Bloomberg reported that Alphabet's (GOOG 2104.11, +8.22, +0.4%) Google, Microsoft (MSFT 244.99, +0.50, +0.2%), and Qualcomm (QCOM 147.98, +2.42, +1.7%) want antitrust officials to intervene in NVIDA's deal to purchase Arm Holdings. NVDA was one of the few decliners in the Philadelphia Semiconductor Index (+1.2%).

In other developments, the Senate is reportedly planning to fast-track the stimulus bill past individual committees, meaning it should reach the floor for a vote a bit sooner than previously expected. Separately, Charles Schwab (SCHW 58.19, +2.26, +4.0%) reported a 75% m/m increase in its total number of brokerage accounts.

The 2-yr yield decreased one basis point to 0.10%. The U.S. Dollar Index increased 0.1% to 90.46. The CBOE Volatility Index fell 6.0% to 19.97.

Reviewing Friday's economic data:

The preliminary February reading of the University of Michigan Index of Consumer Sentiment fell to 76.2 (Briefing.com consensus 80.8) from the final reading of 79.0 in January.
The key takeaway from the report is that the February drop was owed to lower expectations among households with incomes below $75,000.

Looking ahead, investors will receive the Empire State Manufacturing Survey for February and Net Long-Term TIC Flows for December when the market reopens on Tuesday. The market will be closed on Monday for Washington's Birthday.

Russell 2000 +15.9% YTD
Nasdaq Composite +9.4% YTD
S&P 500 +4.8% YTD
Dow Jones Industrial Average +2.8% YTD

Market Snapshot
Dow 31458.40 +27.70 (0.09%)
Nasdaq 14095.49 +69.70 (0.50%)
SP 500 3934.83 +18.45 (0.47%)
10-yr Note +2/32 1.139
NYSE Adv 1765 Dec 1421 Vol 831.0 mln
Nasdaq Adv 2197 Dec 1764 Vol 7.3 bln

Industry Watch
Strong: Energy, Financials, Materials, Industrials, Health Care
Weak: Real Estate, Utilities

Moving the Market

-- S&P 500, Nasdaq, and Dow close at record highs in strong finish ahead of three-day weekend

-- Relative strength in cyclical stocks, Treasury yields and oil prices rise

WTI crude futures settle close to $60 per barrel
12-Feb-21 15:30 ET
Dow -40.93 at 31389.77, Nasdaq +11.96 at 14037.75, S&P +5.68 at 3922.06

[BRIEFING.COM] The S&P 500 continues to hover with a 0.1% gain, while the Russell 2000 trades lower by 0.1%.

One last look at the S&P 500 sectors shows energy (+1.0%), financials (+0.7%), industrials (+0.5%), and health care (+0.5%) outperforming, while the utilities (-1.0%), real estate (-0.5%), and consumer discretionary (-0.4%) sectors underperform in the red.

WTI crude futures settled higher by 2.1%, or $1.24, to $59.47/bbl.

[ReturntoSender]

Dow ekes out closing record high, financial and energy stocks outperformed
16-Feb-21 16:15 ET
Dow +64.35 at 31522.75, Nasdaq -47.97 at 14047.52, S&P -2.24 at 3932.59

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

[BRIEFING.COM] The Dow Jones Industrial Average (+0.2%) eked out a closing record high on Tuesday amid strength in financial and energy stocks. The S&P 500 (-0.1%) and Nasdaq Composite (-0.3%) ended with modest losses after setting all-time highs in early action, while the Russell 2000 (-0.7%) underperformed.

Investors remained optimistic on the economy, evident by the continued selling interest in longer-dated Treasuries, which drove yields noticeably higher. The growth-sensitive 10-yr yield rose ten basis points to 1.30%, while the Fed-sensitive 2-yr yield increased two basis points to 0.12%. The U.S. Dollar Index increased 0.1% to 90.54.

This curve-steepening activity was a boon for the bank stocks within the S&P financials sector (+1.8%). The energy sector advanced the most, though, with a 2.3% gain amid higher oil ($60.09/bbl, +0.62, +1.0%) and gas ($3.13/MMBtu, +0.22, +7.2%) prices after a winter storm left millions of people without power in the U.S.

The communication services sector (+0.4%) also outperformed, as investors continued to bid up shares of companies with digital advertising exposure. Conversely, the utilities (-1.1%), real estate (-1.1%), and health care (-1.0%) sectors declined at least 1.0%.

On the earnings front, shares of CVS Health (CVS 70.53, -3.68, -4.0%), Zoetis (ZTS 166.47, -0.24, -0.1%), and Allegion (ALLE 109.81, -8.45, -7.2%) closed lower despite the companies reporting better-than-expected quarterly results.

In other developments, Democratic senators reportedly hope to bring the fiscal stimulus bill up for a floor vote next week, Reuters reported that OPEC+ will likely ease supply curbs after April of this year amid increase in prices, and Conagra (CAG 33.90, -0.65, -1.9%)/Kraft Heinz (KHC 35.36, -0.03, -0.1%) products may become more expensive as a result of higher raw material costs.

The CBOE Volatility Index increased 7.5% to 21.46 amid an uptick in hedging interest.

Tuesday's economic data was limited to the Empire State Manufacturing Survey, which increased to 12.1 in February (Briefing.com consensus 9.0) from 3.5 in January.

Looking ahead to Wednesday, investors will receive Retail Sales for January, the Producer Price Index for January, Industrial Production and Capacity Utilization for January, the FOMC Minutes, the NAHB Housing Index for February, Business Inventories for December, and the weekly MBA Mortgage Applications Index.

Russell 2000 +15.1% YTD
Nasdaq Composite +9.0% YTD
S&P 500 +4.7% YTD
Dow Jones Industrial Average +3.0% YTD

Market Snapshot
Dow 31522.75 +64.35 (0.20%)
Nasdaq 14047.52 -47.97 (-0.34%)
SP 500 3932.59 -2.24 (-0.06%)
10-yr Note -27/32 1.264
NYSE Adv 1503 Dec 1720 Vol 1.0 bln
Nasdaq Adv 2091 Dec 1891 Vol 7.5 bln

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

Moving the Market

-- Dow ekes out closing record high in mixed session

-- 10-yr yield rose to 1.30% amid increased selling interest

-- Continued strength in energy and financial stocks

WTI crude futures settle at $60 per barrel
16-Feb-21 15:30 ET
Dow +75.09 at 31533.49, Nasdaq -42.74 at 14052.75, S&P +0.33 at 3935.16

[BRIEFING.COM] The S&P 500 continues to trade near its flat line. The Russell 2000 is down 0.5%.

One last look at the S&P sectors shows energy (+2.5%) and financials (+2.0%) still leading the market higher with gains of at least 2.0%. The real estate (-1.1%), utilities (-1.0%), and health care (-1.0%) sectors are down at least 1.0%.

WTI crude futures settled higher by 1.0%, or $0.62, to $60.09/bbl.

[ReturntoSender]

Stocks close mostly lower but pare losses
18-Feb-21 16:20 ET
Dow -119.68 at 31493.34, Nasdaq -100.14 at 13865.38, S&P -17.36 at 3913.97

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

[BRIEFING.COM] The S&P 500 declined 0.4% on Thursday, although it was down as much as 1.2% in the morning. The Nasdaq Composite (-0.7%) and Dow Jones Industrial Average (-0.4%) also closed well off session lows, while the Russell 2000 (-1.7%) struggled throughout the session.

The weak start was attributed primarily to profit-taking interest despite a downtick in long-term interest rates and the latest weekly jobless claims data supporting the case for additional fiscal stimulus. The 10-yr yield decreased one basis point to 1.29%; weekly initial claims increased by 13,000 to 861,000 (Briefing.com consensus 775,000).

Losses were relatively widespread with nine of the 11 S&P 500 sectors closing lower, but investors did appear to buy the dip in many areas of the market. The information technology sector, for example, declined 0.5% after being down 1.7% intraday, and the consumer discretionary sector (+0.1%) overcame a 1.1% intraday decline.

Exceptions to the buy-the-dip activity were the S&P 500 energy sector (-2.3%), which closed near session lows, and Walmart (WMT 137.66, -9.54, -6.5%), which dropped 6.5% following its mixed earnings report and tepid FY22 EPS guidance.

The utilities sector (+0.6%), to its credit, traded higher for most of the session amid earnings-driven gains in Southern (SO 59.85, +0.58, +1.0%) and FirstEnergy (FE 34.25, +2.30, +7.2%).

Twilio (TWLO 443.49, +31.84, +7.7%) was another earnings standout with an 8% gain that propped the stock to a fresh all-time high.

In other corporate news, GameStop (GME 40.69, -5.25, -11.4%) fell another 11% amid the GME hearing on Capitol Hill, Coca-Cola (KO 50.77, +0.64, +1.3%) increased its quarterly dividend by one cent to $0.42/share, and Wells Fargo (WFC 36.96, +0.37, +1.0%) was upgraded to Neutral from Underweight at JP Morgan amid news that the Fed is getting closer to easing the company's asset restrictions.

The 2-yr yield was unchanged at 0.10%. The U.S. Dollar Index decreased 0.4% to 90.56. WTI crude futures decreased 1.2%, or $0.70, to $60.42/bbl.

Reviewing Thursday's economic data:

Initial jobless claims for the week ending February 13 increased by 13,000 to 861,000 (Briefing.com consensus 775,000). Continuing claims for the week ending February 6 decreased by 64,000 to 4.494 million.
The key takeaway is that the upward thrust in initial jobless claims, which remain at extremely high levels, will continue to fuel calls to go big on the next stimulus package.
Housing starts declined 6.0% m/m in January to a seasonally adjusted annual rate of 1.580 million units (Briefing.com consensus 1.670 million). Building permits increased 10.4% m/m to 1.881 million (Briefing.com consensus 1.670 million).
The key takeaway is that there was a notable decline in single-unit starts (-12.2%) that will fail to provide relief for a tightly-supplied housing market, thereby keeping upward pressure on median home prices.
The Philadelphia Fed Index decreased to 23.1 in February (Briefing.com consensus 15.0) from an unrevised 26.5 in January.
Import prices increased 1.4% in January while import prices excluding oil increased 0.8%. Export prices increased 2.5% in January while export prices excluding agriculture increased 2.2%.

Looking ahead, investors will receive Existing Home Sales for January and the flash IHS Markit Manufacturing and Services PMIs for February on Friday.

Russell 2000 +12.3% YTD
Nasdaq Composite +7.6% YTD
S&P 500 +4.2% YTD
Dow Jones Industrial Average +2.9% YTD

Market Snapshot
Dow 31493.34 -119.68 (-0.38%)
Nasdaq 13865.38 -100.14 (-0.72%)
SP 500 3913.97 -17.36 (-0.44%)
10-yr Note -4/32 1.313
NYSE Adv 1044 Dec 2150 Vol 941.4 mln
Nasdaq Adv 1129 Dec 2812 Vol 6.4 bln

Industry Watch
Strong: Utilities, Consumer Discretionary
Weak: Energy, Communication Services, Materials, Health Care

Moving the Market

-- Stocks close mostly lower but pare early losses

-- Walmart (WMT) declined 6.5% on mixed earnings, tepid FY22 EPS guidance

-- Profit-taking pressure

WTI crude futures give back some gains
18-Feb-21 15:25 ET
Dow -91.11 at 31521.91, Nasdaq -69.81 at 13895.71, S&P -12.42 at 3918.91

[BRIEFING.COM] The S&P 500 is trading lower by 0.3%, which is the comparable to the decline in the Dow (-0.3%).

One last look at the S&P sectors shows energy (-2.1%) trading near session lows with a 2% decline amid a modest retrace in oil prices, while the utilities (+0.7%) and consumer discretionary (+0.3%) sectors trade higher.

WTI crude futures settled lower by 1.2%, or $0.70, to $60.42/bbl. Prior to today, WTI crude futures were up 17% this month.

[ReturntoSender]

Growth stocks weigh down S&P 500 amid higher yields
19-Feb-21 16:20 ET
Dow +0.98 at 31494.32, Nasdaq +9.11 at 13874.49, S&P -7.26 at 3906.71

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

[BRIEFING.COM] The S&P 500 declined 0.2% on Friday, as the continued rise in long-term interest rates pressured many of the growth stocks, whose losses overshadowed the strong gains in the cyclical stocks.

The Nasdaq Composite (+0.1%) and Dow Jones Industrial Average (unch) closed little changed, with the Dow setting an all-time high early in the session. The Russell 2000 outperformed with a noteworthy 2.2% gain amid strength in small-cap financial and energy stocks.

Notably, the yield on the 10-yr Treasury note rose another six basis points to 1.35% amid a pro-cyclical news cycle that supported continued selling in longer-dated maturities. To name a few, Treasury Secretary Yellen reiterated the "think big" approach to stimulus, reports suggested that the U.S. will double its vaccine supply in the coming weeks, and earnings/economic data continued to beat expectations.

The S&P 500 materials (+1.9%), energy (+1.6%), industrials (+1.6%), and financials (+1.2%) sectors took the news in stride, with Deere (DE 330.00, +29.75, +9.9%) providing an additional boost for the industrials sector following its positive earnings report. DE shares climbed 10% to fresh all-time highs.

The Philadelphia Semiconductor Index (+2.4%) was another area of strength, as chipmakers rallied around strong quarterly results and guidance from Applied Materials (AMAT 119.46, +6.03, +5.3%).

The market, however, was restrained by influential declines in the information technology (-0.2%), communication services (-1.1%), and consumer discretionary (-0.9%) sectors amid valuation-oriented weakness in their mega-cap growth components. The Vanguard Mega Cap Growth ETF (MGK 211.63, -1.74, -0.8%) declined 0.8%.

The utilities (-1.5%), consumer staples (-1.2%), and health care (-1.2%) sectors also dragged on performance.

The 2-yr yield increased one basis point to 0.11%. The U.S. Dollar Index decreased 0.2% to 90.37. WTI crude futures pulled back 2.1%, or $1.27, to $59.15/bbl.

Reviewing Friday's economic data:

Existing home sales increased 0.6% m/m in January to a seasonally adjusted annual rate of 6.69 million (Briefing.com consensus 6.56 million) from a downwardly revised 6.65 million (from 6.76 million) in December. Total sales in January were up 23.7% from a year ago.
The key takeaway from the report is that the supply of existing homes for sale is at an all-time low. That is going to be a pressure point that feeds higher prices, limits total sales potential, and creates affordability pressures that will increase with rising mortgage rates.
The IHS flash Markit Manufacturing PMI checked in at 58.5 vs. 59.2 in December; the flash Services PMI checked in at 58.9 vs. 58.3 in December.

Looking ahead, investors will receive the Conference Board's Leading Economic Index (LEI) for January on Monday.

Russell 2000 +14.8% YTD
Nasdaq Composite +7.7% YTD
S&P 500 +4.0% YTD
Dow Jones Industrial Average +2.9% YTD

Market Snapshot
Dow 31494.32 +0.98 (0.00%)
Nasdaq 13874.49 +9.11 (0.07%)
SP 500 3906.71 -7.26 (-0.19%)
10-yr Note -4/32 1.313
NYSE Adv 2118 Dec 1054 Vol 1.1 bln
Nasdaq Adv 2705 Dec 1249 Vol 6.6 bln

Industry Watch
Strong: Industrials, Financials, Energy, Materials
Weak: Utilities, Health Care, Consumer Staples, Communication Services, Consumer Discretionary

Moving the Market

-- Cyclical sectors support market amid growth optimism, but rise in long-term interest rates pressure growth stocks

-- 10-yr yield closes at 1.34%

-- Russell 2000 outperformed, Dow set all-time high

Energy stocks rise despite pullback in oil prices
19-Feb-21 15:25 ET
Dow +58.19 at 31551.53, Nasdaq +21.95 at 13887.33, S&P -0.87 at 3913.10

[BRIEFING.COM] The S&P 500 is trading back at its flat line, while the Dow (+0.2%) remains on pace to close at another record high.

One last look at the S&P sectors shows materials (+2.1%), industrials (+1.8%), energy (+1.7%), and financials (+1.3%) supporting the broader market with solid gains, while the health care (-0.9%), communication services (-0.9%), consumer staples (-1.1%), and utilities (-1.5%) trade sharply lower.

WTI crude futures settled lower by 2.1%, or $1.27, to $59.15/bbl.

[ReturntoSender]

Market closes mixed in resilient session
23-Feb-21 16:10 ET
Dow +15.66 at 31537.35, Nasdaq -67.85 at 13465.23, S&P +4.87 at 3881.37

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

[BRIEFING.COM] The S&P 500 increased 0.1% on Tuesday, overcoming an early 1.8% decline in one of its more resilient sessions of the year. The Dow Jones Industrial Average increased 0.1% after being down 1.2% intraday, while the Nasdaq Composite (-0.5%) and Russell 2000 (-0.9%) decreased modestly after both were down more than 3.5% intraday.

Mega-cap, growth, and technology stocks were influential laggards in early action, presumably due to rate angst, profit taking, and rotational pressure that benefited value/cyclical stocks. Aside from the Nasdaq, these laggards were found primarily in the information technology sector (-0.3%), the consumer discretionary sector (-0.5%), and the Philadelphia Semiconductor Index (-0.6%).

At their lows, the tech sector was down 3.4%, the consumer discretionary sector was down 4.0%, and the chip index was down 4.6%. In addition, the S&P 500 came within ten points of its 50-day moving average (3797). Note, this was right before Fed Chair Powell's prepared remarks for his semiannual congressional testimony were released at around 10:00 a.m. ET.

Mr. Powell didn't say anything particularly new on the economy or monetary policy, reminding lawmakers that the economy is a long way from its employment and inflation goals and that it'll take some time for substantial further progress on those fronts. The market saw this as an affirmation of the Fed's dovish monetary policy for the foreseeable future.

Seemingly on cue, investors started to buy the dip in every sector that was down. The energy (+1.6%), communication services (+1.1%), utilities (+0.8%), and financials (+0.5%) sectors finished with the biggest gains, although declining issues still outnumbered advancing issues at the NYSE and Nasdaq.

At the individual stock level, shares of Home Depot (HD 267.24, -8.61, -3.1%) fell 3% despite its better-than-expected earnings report. Shares of Snap (SNAP 70.45, +7.04, +11.1%) rose 11% after the company noted that its ad platform can drive 50% revenue growth for years to come.

The U.S. Treasury market was a little more stable today, which might have supported risk sentiment. The 2-yr yield decreased one basis point to 0.10%, and the 10-yr yield decreased one basis point to 1.36%. The U.S. Dollar Index increased 0.2% to 90.14. WTI crude futures were little changed at $61.68/bbl.

Reviewing Tuesday's economic data:

The Conference Board's Consumer Confidence Index increased to 91.3 in February (Briefing.com consensus 91.0) from a downwardly revised 88.9 (from 89.3) in January.
The key takeaway from the report is that attitudes about current conditions improved for the first time in four months, aided by some improvement in the view of labor market conditions.
The FHFA Housing Price Index increased 1.1% in February following a 1.0% increase in January.
The S&P Case-Shiller Home Price Index increased 10.1% in December (Briefing.com consensus 9.8%) following an upwardly revised 9.2% reading in November (from +9.1%).

Looking ahead, investors will receive New Home Sales for January and the weekly MBA Mortgage Applications Index on Wednesday.

Russell 2000 +13.0% YTD
Nasdaq Composite +4.5% YTD
S&P 500 +3.3% YTD
Dow Jones Industrial Average +3.0% YTD

Market Snapshot
Dow 31537.35 +15.66 (0.05%)
Nasdaq 13465.23 -67.85 (-0.50%)
SP 500 3881.37 +4.87 (0.13%)
10-yr Note 0/32 1.338
NYSE Adv 1206 Dec 1950 Vol 1.3 bln
Nasdaq Adv 1126 Dec 2787 Vol 7.4 bln

Industry Watch
Strong: Energy, Communication Services, Utilities, Financials
Weak: Information Technology, Consumer Discretionary, Health Care

Moving the Market

-- Market closes mixed in resilient session, growth stocks underperformed

-- Fed Chair Powell reiterates dovish monetary policy stance before the Senate Banking Committee

-- Technical support just above the S&P 500's 50-day moving average (3797)

Market turns positive
23-Feb-21 15:30 ET
Dow +127.97 at 31649.66, Nasdaq -10.62 at 13522.46, S&P +18.09 at 3894.59

[BRIEFING.COM] The S&P 500 has turned positive with a 0.3% gain, which is an impressive feat considering it was down 1.8% to start the day. There's simply no quit in this bull market, equipped with a "buy the dip" and "diamond hands" lexicon.

Nine of the 11 S&P 500 sectors are now contributing to the advance, with the exception being consumer discretionary (-0.2%), which was down 4.0% at its intraday low. The energy sector remains atop the standings with a 1.8% gain.

WTI crude futures finished little changed at $61.68/bbl.

[ReturntoSender]

Dow closes at record high in strong session
24-Feb-21 16:15 ET

Dow +424.51 at 31961.86, Nasdaq +132.77 at 13598.00, S&P +44.06 at 3925.43

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

[BRIEFING.COM] The S&P 500 advanced 1.1% on Wednesday in a strong session, as the market remained influenced by reopening optimism, a buy-the-dip mindset, and Fed Chair Powell. The Russell 2000 gained 2.3%, the Dow Jones Industrial Average gained 1.4% for a record close, and the Nasdaq Composite gained 1.1%.

The large-cap indices started the session slightly lower amid relative weakness in the mega-cap and growth stocks, as the 10-yr Treasury note yield touched 1.43% on persistent expectations for economic growth and inflation. The S&P 500 information technology sector (+1.5%) and Philadelphia Semiconductor Index (+3.2%) were both down 1.5% in early action, until Fed Chair Powell started speaking around 10:00 a.m. ET.

In his second day of testimony, Fed Chair Powell told the House Financial Services Committee that it could take three or more years for the economy to reach the Fed's inflation goal. In other words, despite the inflation expectations being priced in the Treasury market, the central bank will hold firm on its extremely accommodative monetary policy.

Yields started to come down from session highs, mega-cap and growth stocks came off session lows, and value/cyclical stocks extended their early gains. The energy (+3.6%), financials (+2.0%), and industrials (+1.9%) sectors advanced the most. The utilities (-1.2%) and consumer staples (-0.03%) sectors, on the other hand, closed lower.

Positive developments supporting growth expectations included the FDA acknowledging that Johnson & Johnson's (JNJ 162.59, +2.15, +1.3%) COVID-19 vaccine is safe with no specific concerns identified that would preclude an emergency use authorization, and new home sales increasing 4.3% m/m to a seasonally adjusted annual rate of 923,000 in January (Briefing.com consensus 855,000).

The reopening trade was kind to shares of Boeing (BA 229.34, +17.22, +8.1%), which rose 8%. Shares of GameStop (GME 91.71, +46.74, +103.9%), meanwhile, doubled late in the day without disrupting the market flow this time around.

The 10-yr yield finished three basis points higher at 1.39%, and the 2-yr yield finished three basis points higher at 0.13%. The U.S. Dollar Index decreased 0.1% to 90.07. WTI crude futures increased another 2.5%, or $1.56, to $63.24/bbl.

Reviewing Wednesday's economic data:

New home sales increased 4.3% m/m to a seasonally adjusted annual rate of 923,000 in January (Briefing.com consensus 855,000) from an upwardly revised 885,000 (from 842,000) in December. On a yr/yr basis, new home sales were up 19.3%.
The key takeaway from the report is that new home sales, which are counted when contracts are signed, ramped up again as demand remained strong in the face of higher prices. Separately, the South remains a hot spot for relocation, evidenced by a 40.4% yr/yr increase in new home sales.
The weekly MBA Mortgage Applications Index dropped 11.4% following a 5.1% decline in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, Durable Goods Orders for January, the second estimate for Q4 GDP, and Pending Home Sales for January on Thursday.

Russell 2000 +15.7% YTD
Nasdaq Composite +5.5% YTD
S&P 500 +4.5% YTD
Dow Jones Industrial Average +4.4% YTD


Market Snapshot
Dow 31961.86 +424.51 (1.35%)
Nasdaq 13598.00 +132.77 (0.99%)
SP 500 3925.43 +44.06 (1.14%)
10-yr Note -3/32 1.385

NYSE Adv 2145 Dec 1067 Vol 1.2 bln
Nasdaq Adv 2823 Dec 1136 Vol 5.6 bln


Industry Watch
Strong: Financials, Energy, Industrials, Materials

Weak: Utilities, Consumer Staples


Moving the Market
-- Cyclical stocks continue to outperform in so-called reflation trade

-- Treasury yields continue to rise amid expectations for economic growth and inflation

-- Fed Chair Powell says it could take another three years for central bank to meet inflation goal

-- Covid-19 vaccine from Johnson & Johnson (JNJ) could soon receive emergency use authorization



WTI crude futures settle above $63 per barrel
24-Feb-21 15:25 ET

Dow +427.15 at 31964.50, Nasdaq +92.16 at 13557.39, S&P +40.09 at 3921.46
[BRIEFING.COM] The S&P 500 continues to trade higher by 1.0%, bringing it into positive territory for the week.

One last look at the S&P 500 sectors shows ten of the 11 sectors trading higher. The energy (+3.5%), industrials (+2.0%), financials (+1.9%), and information technology (+1.2%) sectors lead the advance, while the utilities sector (-0.9%) remains the only sector trading lower.

WTI crude futures settled higher by 2.5%, or $1.56, to $63.24/bbl.

[ReturntoSender]

Rising Treasury yields fuel market weakness
25-Feb-21 16:20 ET
Dow -559.85 at 31402.01, Nasdaq -478.54 at 13119.46, S&P -96.09 at 3829.34

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

[BRIEFING.COM] The S&P 500 dropped 2.5% on Thursday, as another steep rise in Treasury yields undercut risk sentiment and contributed to valuation-oriented weakness in the mega-cap/growth stocks. The Nasdaq Composite fell 3.5%, the Russell 2000 fell 3.7%, and the Dow Jones Industrial Average fell 1.8%.

Specifically, the yield on the 10-yr Treasury note climbed 13 basis points to 1.52%, which was above the S&P 500's dividend yield of 1.51% and 43 basis points higher than where it started the month. This rate of change didn't sit well with the market, even though it was expectations for economic growth and inflation that contributed to the higher yields.

What's more, the 10-yr yield briefly spiked to 1.61% following an ugly 7-yr note auction at 1:00 p.m. ET that saw weak demand. The 2-yr yield increased four basis points to 0.17%. The U.S. Dollar Index increased 0.1% to 90.25.

As for the price action in equities, the retreat was orderly throughout the day with growth stocks taking the brunt of the damage.

The S&P 500 consumer discretionary (-3.6%) and information technology (-3.5%) sectors dropped at least 3.5% amid weakness in their mega-cap components, the Philadelphia Semiconductor Index dropped 5.8%, and the ARK Innovation ETF (ARKK 129.51, -8.81) dropped 6.4%. Out of the 11 S&P 500 sectors, the utilities sector (-1.0%) declined the least.

NVIDIA (NVDA 532.30, -47.66, -8.2%) was an influential laggard with an 8% decline despite beating top and bottom-line estimates and issuing upbeat Q1 revenue guidance.

On the upside, shares of Twitter (TWTR 74.59, +2.67, +3.7%) closed higher after the company said it's aiming to double total annual revenue to $7.5 billion in 2023. Shares of GameStop (GME 108.73, +17.02, +18.6%) had doubled for the second straight day before closing with a more modest gain.

Interestingly, the S&P 500 closed above its 50-day moving average (3805) after coming within ten points of the key technical level at its intraday low (3814). Investors continued to brace for further downside, though, evident by the 35% spike in the CBOE Volatility Index (28.89, +7.55, +35.4%).

WTI crude futures ($63.47/bbl, +0.25, +0.4%) settled in positive territory.

Reviewing Thursday's economic data:

Initial claims for the week ending February 20 decreased by 111,000 to 730,000 (Briefing.com consensus 820,000). Continuing claims for the week ending February 13 decreased by 101,000 to 4.419 million.
The key takeaway from the report is that this is the lowest level of weekly initial claims since early November, which should lend some confidence to the notion that economic activity is picking up again following a late fourth quarter stupor.
Durable Goods Orders for January surged 3.4% m/m (Briefing.com consensus 1.2%) following an upwardly revised 1.2% increase (from 0.2%) in December. Excluding transportation, durable goods orders rose 1.4% (Briefing.com consensus 0.6%) following an upwardly revised 1.7% increase (from 0.7%) in December.
The key takeaway from the report is that it showed an ongoing pickup in business spending, evidenced by a 0.5% m/m increase in nondefense capital goods orders excluding aircraft. These orders -- a proxy for business spending -- are now up 8.3% yr/yr.
The second estimate for Q4 GDP was revised to 4.1%, as expected, from 4.0%. The GDP Price Deflator was bumped up to 2.1% (Briefing.com consensus 2.0%) from 2.0%.
The key takeaway from the report is that it won't be a market mover because (a) it was largely in line with expectations (b) it didn't change much at all from the first estimate and (c) it is dated information, having been released nearly two-thirds of the way through the first quarter.
Pending home sales decreased 2.8% m/m in January following an upwardly revised 0.5% increase in December (from -0.3%).

Looking ahead to Friday, investors will receive Personal Income and Spending for January, PCE Prices for January, the final University of Michigan Index of Consumer Sentiment for February, and Adv. Intl. Trade in Goods, Retail Inventories, and Wholesale Inventories for January.

Russell 2000 +11.4% YTD
Nasdaq Composite +1.8% YTD
S&P 500 +2.0% YTD
Dow Jones Industrial Average +2.6% YTD

Market Snapshot
Dow 31402.01 -559.85 (-1.75%)
Nasdaq 13119.46 -478.54 (-3.52%)
SP 500 3829.34 -96.09 (-2.45%)
10-yr Note -14/32 1.529
NYSE Adv 436 Dec 2764 Vol 1.2 bln
Nasdaq Adv 528 Dec 3339 Vol 6.3 bln

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

Moving the Market

-- Weak session amid another steep rise in Treasury yields

-- 10-yr yield briefly touched 1.61% before closing at 1.52%

-- Equity decline was broad-based and orderly

WTI crude futures settle higher despite market weakness
25-Feb-21 15:30 ET
Dow -557.31 at 31404.55, Nasdaq -458.94 at 13139.06, S&P -94.55 at 3830.88

[BRIEFING.COM] The S&P 500 is trading at session lows with a 2.4% decline. The retreat has been orderly, reflecting a lack of buying interest.

One last look at the S&P sectors shows steep losses across the board. The information technology

[ReturntoSender]

S&P 500 clipped by continued rotation out of growth stocks
08-Mar-21 16:20 ET
Dow +306.14 at 31802.44, Nasdaq -310.99 at 12609.18, S&P -20.59 at 3821.35

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

[BRIEFING.COM] The S&P 500 decreased 0.5% on Monday, as money continued to flow out of the heavily-weighted growth stocks and into value/cyclical stocks. The former group contributed to the 2.4% decline in Nasdaq Composite (-2.4%), while the latter helped lift the Dow Jones Industrial Average (+1.0%) to an intraday record high. The Russell 2000 gained 0.5%.

Seven of the 11 S&P 500 sectors closed in positive territory, but it was hard to overcome the continued growth-stock weakness within the information technology (-2.5%), communication services (-1.5%), and consumer discretionary (-0.2%) sectors. The health care sector (-0.3%) was clipped by its biotechnology components.

The Vanguard Mega Cap Growth ETF (MGK 195.08, -4.45, -2.3) fell 2.3%. The Philadelphia Semiconductor Index fell 5.4%. The iShares Nasdaq Biotechnology ETF (IBB 147.23, -2.92, -1.9%) fell 1.9%. Shares of Tesla (TSLA 563.00, -34.95, -5.8%) gave up an early gain and closed sharply lower to extend its recent correction to 37% from its all-time high.

The S&P 500 was up as much as 1.0% in the afternoon on the back of a pro-cyclical trade that drew support from the Senate passing the $1.9 trillion stimulus bill and news that COVID-19 vaccine shots are running at more than two million per day. The stimulus bill will head back to the House, where it's expected to pass later this week.

The financials (+1.3%), materials (+1.3%), and industrials (+1.1%) sectors represented the cyclical leadership, although the utilities sector (+1.4%) advanced the most as the market lost some of its cyclical luster in the second-half of the session. The S&P 500 slipped below its 50-day moving average (3825) on a closing basis.

Separately, another uptick in long-term interest rates, which have risen sharply this year in part due to growth optimism and inflation angst, was attributed by some as a lingering headwind for the growth stocks.

The 10-yr yield increased four basis points to 1.60%, although interestingly, widely-followed money manager David Tepper told CNBC that the 10-yr yield is likely at, or near, the top of a new range due to the higher yields attracting foreign buyers. Mr. Tepper also said stocks like Amazon (AMZN 2951.95, -48.51, -1.6%) look attractive.

The 2-yr yield was unchanged at 0.15%. The U.S. Dollar Index advanced 0.5% to 92.42. WTI crude futures declined 1.6%, or $1.05, to $65.04/bbl.

Monday's economic data was limited to Wholesale Inventories for January, which increased 1.3% m/m (Briefing.com consensus +1.3%) following a revised 0.6% increase in December (from 0.3%). Investors will not receive any notable economic data on Tuesday.

Russell 2000 +11.6% YTD
Dow Jones Industrial Average +3.9% YTD
S&P 500 +1.7% YTD
Nasdaq Composite -2.2% YTD

Market Snapshot
Dow 31802.44 +306.14 (0.97%)
Nasdaq 12609.18 -310.99 (-2.41%)
SP 500 3821.35 -20.59 (-0.54%)
10-yr Note -2/32 1.587
NYSE Adv 1925 Dec 1251 Vol 1.2 bln
Nasdaq Adv 1954 Dec 1950 Vol 5.9 bln

Industry Watch
Strong: Industrials, Financials, Materials, Utilities
Weak: Information Technology, Communication Services, Consumer Discretionary, Health Care

Moving the Market

-- S&P 500 slips lower amid continued weakness in the technology/growth stocks

-- Cyclical/value stocks outperformed amid rotational interest; helped lift Dow to record intraday high

-- 10-yr yield settled at 1.60%

[ReturntoSender]

Nasdaq and growth stocks bounce back
09-Mar-21 16:15 ET
Dow +30.30 at 31832.74, Nasdaq +464.66 at 13073.84, S&P +54.09 at 3875.44

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

[BRIEFING.COM] The S&P 500 advanced 1.4% on Tuesday in a strong rebound session for the mega-cap/growth stocks, which boosted the Nasdaq Composite to a 3.7% gain. The Russell 2000 (+1.9%) finished in the middle with a 1.9% gain, while the Dow Jones Industrial Average increased just 0.1% after it was up as much as 1.1% intraday and at fresh record highs.

After yesterday's session left the Nasdaq down 10.5% from its recent high, or in "correction territory," investors presumably felt that the underlying declines at the growth-stock level had gotten too extended and presented a good buying opportunity. Follow through from buyers after a strong open fueled the technically-oriented rebound rally.

Shares of Tesla (TSLA 673.58, +110.58, +19.6%) surged nearly 20% today, further supported by an analyst upgrade to Buy from Neutral at New Street and a report that it grabbed market share from Chinese EV competitors in February. Note, TSLA shares entered the session down 37% from its all-time high, partially due to the rotation into value/cyclical stocks.

The S&P 500 consumer discretionary sector, which is home to Tesla, rose 3.8%, and the top-weighted information technology sector rose 3.4%. The Vanguard Mega Cap Growth ETF (MGK 201.96, +6.88, +3.5%) rose 3.5%, the Philadelphia Semiconductor Index rose 6.1%, and the ARK Innovation ETF (ARKK 121.75, +11.49, +10.4%) rose 10.4%.

Interestingly, the broad market did lose some traction into the close as the S&P 500 struggled to stay above the 3900 level, which has acted as resistance this month.

The red-hot energy (-1.9%) and financials (-0.9%) sectors underperformed in negative territory. Energy stocks were pressured by lower oil prices ($64.02, -1.02, -1.6%), while financial stocks were slowed down by a decline in longer-dated Treasury yields.

The 10-yr yield decreased five basis points to 1.55%, while the 2-yr yield increased one basis point to 0.16%. The U.S. Dollar Index decreased 0.4% to 91.97. On a related note, the $58 bln 3-year note auction was a nonevent, which was viewed in a positive light because the results revealed little concern about demand. Long-term interest rates ticked lower in response.

Boeing (BA 230.61, +6.58, +2.9%) was a notable Dow gainer after The New York Times reported that the company sold 31 planes in February, representing its first positive month in over a year. Stitch Fix (SFIX 49.23, -19.29, -28.2%) was a notable growth-stock laggard, plunging 28% after missing revenue estimates.

Tuesday's economic data was limited to the NFIB Small Business Optimism Index, which increased to 95.8 in February from 95.0 in January. Looking ahead to Wednesday, investors will receive the Consumer Price Index for February, the Treasury Budget for February, and the weekly MBA Mortgage Applications Index.

Russell 2000 +13.7% YTD
Dow Jones Industrial Average +4.0% YTD
S&P 500 +3.2% YTD
Nasdaq Composite +1.4% YTD

Market Snapshot
Dow 31832.74 +30.30 (0.10%)
Nasdaq 13073.84 +464.66 (3.69%)
SP 500 3875.44 +54.09 (1.42%)
10-yr Note +27/32 1.539
NYSE Adv 1937 Dec 1253 Vol 1.1 bln
Nasdaq Adv 2865 Dec 1072 Vol 6.2 bln

Industry Watch
Strong: Information Technology, Consumer Discretionary
Weak: Energy, Financials, Industrials, Consumer Staples

Moving the Market

-- Technically-oriented bounce in the mega-cap/growth stocks

-- Longer-dated Treasury yields pulled back

-- Tesla (TSLA) rebounds nearly 20%

-- 3900 level in the S&P 500 acted as resistance again

WTI crude futures settle in negative territory
09-Mar-21 15:25 ET
Dow +195.16 at 31997.60, Nasdaq +531.93 at 13141.11, S&P +74.98 at 3896.33

[BRIEFING.COM] The S&P 500 continues to trade near the top-end of today's range with a 2.0% gain. The Russell 2000 is up 2.6%.

One last look at the sector performances shows consumer discretionary (+4.4%) and information technology (+4.0%) on top with about 4% gains. The energy (-1.2%) and financials (-0.2%) sectors remain the only sectors trading in negative territory, as these two groups take a well-deserved breather amid lower oil prices and bond yields.

WTI crude futures settled lower by 1.6%, or $1.02, to $64.02/bbl.

[ReturntoSender]

Pro-cyclical trade extends record-setting advance in Dow
10-Mar-21 16:20 ET
Dow +464.28 at 32297.02, Nasdaq -4.99 at 13068.85, S&P +23.37 at 3898.81

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

[BRIEFING.COM] The S&P 500 advanced 0.6% on Wednesday, as value and cyclical stocks reclaimed their recent leadership roles and inflation concerns were put on hold. The pro-cyclical trade disproportionally benefited the Dow Jones Industrial Average (+1.5%) and Russell 2000 (+1.8%), with the Dow setting intraday and closing record highs.

The Nasdaq Composite (-0.04%), however, closed slightly lower after being up as much as 1.6% intraday. The S&P 500 information technology sector (-0.4%) and Philadelphia Semiconductor Index (-1.8%) were other growth-stock pockets of weakness.

Prior to the open, the February Consumer Price Index (CPI) report didn't reveal any surprising upticks in inflation, with total CPI increasing an expected 0.4% m/m and core CPI increasing just 0.1% (Briefing.com consensus +0.2%). The yr/yr increases remained below 2.0%, although many still expect upwards pressure in the coming months.

Notwithstanding those inflation expectations, equity futures reacted positively to the report, long-term interest rates backed down from pre-CPI highs, and most stocks opened in positive territory. Ten of the 11 S&P 500 sectors closed higher, including the cyclical energy (+2.6%), financials (+1.9%), and materials (+1.6%) sectors atop the standings on the back of follow through from buyers.

The so-called reopening trade was aided by the House passing the $1.9 trillion stimulus bill, as expected, and New York Governor Cuomo saying that restaurants in New York City and New Jersey will expand indoor dining to 50% beginning March 19.

Like the price action in the Nasdaq, the information technology sector (-0.4%) was up as much as 1.1% in early action, briefly adding to Tuesday's 3.4% gain. Amid a lack of negative catalysts, the rebound rally in growth stocks appeared gassed out, even as Treasury yields declined.

The 10-yr yield decreased three basis points to 1.52%, with the market showing little reaction to the tepid $38 billion 10-yr note auction in the afternoon. The 2-yr yield decreased one basis point to 0.15%. The U.S. Dollar Index decreased 0.2% to 91.79. WTI crude futures increased 0.7%, or $0.43, to $64.45/bbl.

In corporate news, Roblox (RBLX 69.50, +24.50, +54.4%) had a solid public debut at the NYSE. General Electric (GE 13.25, -0.75, -5.4%) lowered its FY21 EPS guidance following its confirmed merger deal between its aircraft leasing business and AerCap (AER 53.39, -2.61, -4.7%).

Reviewing Wednesday's economic data:

Total CPI increased 0.4% m/m, as expected, while core CPI, which excludes food and energy, rose 0.1% (Briefing.com consensus 0.2%). The monthly changes left total CPI up 1.7% yr/yr, versus 1.4% in January; however, the yr/yr increase in core CPI edged lower to 1.3% from 1.4% in January.
The key takeaway from the report is the recognition that it didn't contain any headline surprises today to fan the flames of inflation concerns, which many expect to fire up in coming months.
The February Treasury Budget showed a $310.9 bln deficit, versus a $235.3 bln deficit in the same period a year ago. The budget data is not seasonally adjusted, so the February deficit can't be compared to the January deficit of $162.8 bln.
The fiscal year-to-date budget deficit is $1.05 trln versus -$624.5 bln for the same period a year ago. The budget deficit over the last 12 months is $3.55 trln versus -$3.48 trln in January.
The weekly MBA Mortgage Applications Index decreased 1.3% following a 0.5% increase in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report on Thursday.

Russell 2000 +15.7% YTD
Dow Jones Industrial Average +5.5% YTD
S&P 500 +3.8% YTD
Nasdaq Composite +1.4% YTD

Market Snapshot
Dow 32297.02 +464.28 (1.46%)
Nasdaq 13068.85 -4.99 (-0.04%)
SP 500 3898.81 +23.37 (0.60%)
10-yr Note -1/32 1.542
NYSE Adv 2357 Dec 823 Vol 1.2 bln
Nasdaq Adv 2480 Dec 1422 Vol 5.9 bln

Industry Watch
Strong: Financials, Energy, Materials
Weak: Information Technology, Communication Services

Moving the Market

-- Stocks trade higher in broad-based advance led by value/cyclical stocks

-- Dow hits another all-time high

-- February CPI report eases inflation concerns

WTI crude futures settle in positive territory
10-Mar-21 15:25 ET
Dow +528.35 at 32361.09, Nasdaq +30.61 at 13104.45, S&P +32.90 at 3908.34

[BRIEFING.COM] The major indices continue to trade broadly higher, with the Russell 2000 out in the lead with a 1.9% gain. The Nasdaq underperforms with a 0.3% gain.

One last look at the S&P 500 sectors shows energy (+2.5%), materials (+2.0%), and financials (+2.0%) trading higher by at least 2.0%, while the information technology (-0.03%) remains the only sector trading lower amid relative weakness in its growth-stock components.

A turnaround in oil prices has aided energy stocks. WTI crude futures settled higher by 0.7%, or $0.43, to $64.45/bbl after trading modestly lower intraday.

[ReturntoSender]

Strong finish leads to record closes
15-Mar-21 16:15 ET
Dow +174.82 at 32953.46, Nasdaq +139.84 at 13459.72, S&P +25.60 at 3968.94

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

[BRIEFING.COM] The S&P 500 (+0.7%), Dow Jones Industrial Average (+0.5%), and Russell 2000 (+0.3%) set intraday and closing record highs on Monday, thanks to a strong finish in the last 30 minutes of action. The Nasdaq Composite (+1.1%) outperformed with a 1.1% gain.

The session started on a meek note, with the major indices dipping into negative territory on no specific catalyst other than an apparent case of the Monday's after clocks moved forward an hour on Sunday. Classically, investors bought the intraday dip (S&P 500 was down 0.5% at its low), and nine of the 11 S&P 500 sectors closed in the green as buyers followed through.

The information technology (+1.1%) and consumer discretionary (+1.2%) sectors provided the influential leadership for the benchmark index and were accompanied by the lightly-weighted utilities (+1.4%) and real estate (+1.2%) sectors. The Philadelphia Semiconductor Index advanced 2.3%.

The energy (-1.3%) and financials (-0.6%) sectors, however, struggled throughout the day amid lower oil prices ($65.28/bbl, -0.25, -0.4%) and a decline in long-term interest rates, respectively. The 2-yr yield was unchanged at 0.14%, while the 10-yr yield decreased two basis points to 1.61%. The U.S. Dollar Index increased 0.1% to 91.78.

Travel-related stocks like airlines and casinos were among the biggest gainers amid lingering reopening optimism.

The U.S. Global Jets ETF (JETS 28.71, +1.03, +3.7%) closed at a 52-week high after TSA data showed the highest number of passengers last Friday in a year and several airlines, including Southwest (LUV 62.10, +1.07, +1.8%) and Spirit (SAVE 39.31, +0.69, +1.8%), provided operational updates that highlighted improved bookings activity in March for leisure-based travel.

Positive catalysts in the casino space included Nevada casinos increasing capacity to 50%, media reports highlighting big crowds at the Las Vegas strip, Jefferies upgrading MGM Resorts (MGM 40.96, +1.98, +5.1%) to Buy from Hold, and the S&P Dow Jones Indices naming Penn Natl Gaming (PENN 136.47, +6.00, +4.6%) and Caesars Entertainment (CZR 101.20, +0.58, +0.6%) to the S&P 500, effective March 22.

Separately, shares of Eli Lilly (LLY 189.16, -18.92, -9.1%) dropped 9% after failing to impress shareholders with expanded Phase 2 trial data for its Alzheimer's Disease drug, donanemab. Similarly, shares of Biogen (BIIB 260.13, -6.00, -2.3%) declined 2% following some cautious commentary for its Alzheimer's treatment at an analyst call.

Monday's economic data was limited to the Empire State Manufacturing Survey, which increased to 17.4 in March (Briefing.com consensus 15.0) from 12.1 in February. Looking ahead to Tuesday, investors will receive Retail Sales for February, Industrial Production and Capacity Utilization for February, the NAHB Housing Market Index for March, Business Inventories for January, and Import and Export Prices for February.

Russell 2000 +19.5% YTD
Dow Jones Industrial Average +7.7% YTD
S&P 500 +5.7% YTD
Nasdaq Composite +4.4% YTD

Market Snapshot
Dow 32953.46 +174.82 (0.53%)
Nasdaq 13459.72 +139.84 (1.05%)
SP 500 3968.94 +25.60 (0.65%)
10-yr Note +2/32 1.614
NYSE Adv 2037 Dec 1216 Vol 974.0 mln
Nasdaq Adv 2304 Dec 1768 Vol 5.8 bln

Industry Watch
Strong: Information Technology, Consumer Discretionary, Utilities, Real Estate,
Weak: Financials, Energy

Moving the Market

-- S&P 500, Dow, and Russell 2000 set intraday and closing record highs

-- Nasdaq and travel-related stocks outperformed

-- Weakness in financial and energy stocks

Energy stocks underperform amid lower oil prices
15-Mar-21 15:30 ET
Dow +40.98 at 32819.62, Nasdaq +70.45 at 13390.33, S&P +7.58 at 3950.92

[BRIEFING.COM] The S&P 500 is trading higher by 0.2%, while the Russell 2000 trades lower by 0.1%.

One last look at the S&P 500 sectors shows utilities (+1.1%) and real estate (+1.1%) still atop the standings with 1.1% gains, followed by consumer discretionary (+0.7%). The energy (-1.6%), financials (-1.1%), and materials (-0.3%) sectors underperform in negative territory.

WTI crude futures settled lower by $0.25 (-0.4%) to $65.28/barrel.

[ReturntoSender]

Dow snaps winning streak ahead of Fed policy statement tomorrow
16-Mar-21 16:20 ET
Dow -127.51 at 32825.95, Nasdaq +11.86 at 13471.58, S&P -6.23 at 3962.71

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

[BRIEFING.COM] The major indices closed mixed on Tuesday, as cyclical/value/small-cap stocks succumbed to profit-taking interest and growth/technology stocks showed relative outperformance. The S&P 500 shed 0.2% after starting the day at incremental new highs, but it struggled to attract follow-through from buyers ahead of the FOMC's policy statement tomorrow.

The Nasdaq Composite increased 0.1% after being up as much as 1.2% intraday. The Dow Jones Industrial Average declined 0.4% and snapped a seven-session winning streak. The Russell 2000 underperformed with a 1.7% decline.

Seven S&P 500 sectors closed lower while four closed higher. The cyclically-oriented energy (-2.9%), industrials (-1.4%), financials (-1.1%), consumer discretionary (-0.9%), and materials (-0.9%) sectors lagged throughout the day. The information technology (+0.8%) and communication services (+0.9%) sectors, however, provided influential support.

Prior to the open, investors received February retail sales and industrial production data that missed expectations, which in turn was construed as a good excuse to take profits in the cyclical stocks. Others ostensibly attributed the economic data to the early strength in the tech-sensitive Nasdaq, but truthfully, it was already indicated higher in pre-market action before the data was released.

Briefly, total retail sales declined 3.0% m/m decline in February following an upwards revision to 7.6% (from 5.3%) in January, and industrial production declined 2.2% m/m (Briefing.com consensus +0.5%). Note, there are expectations for retail sales to rebound in the coming months as households receive/spend their stimulus checks, while the industrial production data was influenced by the severe winter weather in southern parts of the U.S. last month.

Elsewhere, there was some focus on the Treasury market following a $24 billion 20-yr note reopening action, which was met with strong demand. The 10-yr yield briefly dipped to 1.59% in the wake of the auction results, then briefly rose to 1.63%, which took some steam out of the growth-stock trade.

The 10-yr yield ultimately settled one basis point higher at 1.62%. The 2-yr yield was unchanged at 0.14%. The U.S. Dollar Index was little changed at 91.87. WTI crude futures declined 0.9%, or $0.59, to $64.81/bbl.

Highlighting some individual stock news, Moderna (MRNA 156.02, +12.36, +8.6%) began dosing children ages 6 months to less than 12 years for its COVID-19 vaccine study, and Roblox (RBLX 77.00, +4.86, +6.7%) was initiated with a Buy rating at Stifel. MRNA and RBLX shares rose nearly 9% and 7%, respectively.

Reviewing Tuesday's economic data:

Total retail sales declined 3.0% m/m in February (Briefing.com consensus -0.6%) and retail sales, excluding autos, declined 2.7% (Briefing.com consensus +0.2%). However, there were large upward revisions to January sales, with total sales increasing 7.6% (from 5.3%) and sales, excluding autos, surging 8.3% (from 5.9%).
The key takeaway from the report is that the "weakness" in February was a byproduct of the tremendous strength in January, which made the sequential comparison exceedingly difficult. The market shouldn't be thrown for much of a loop by the February sales data -- if it's thrown for one at all -- because it recognizes that a new round of stimulus checks is just now starting to hit deposit accounts and will assuredly help prop up retail sales in March and April along with the early unleashing of some pent-up demand.
Total industrial production decreased 2.2% m/m in February (Briefing.com consensus +0.5%) following an upwardly revised 1.1% increase (from 0.9%) in January. The capacity utilization rate dropped to 73.8% (Briefing.com consensus 75.6%) from a downwardly revised 75.5% (from 75.6%) in January.
The key takeaway from the report is that the decline was unduly influenced by the severe winter weather in the south central region of the country in mid-February. That should drive expectations for a quick, and sizable, rebound in March.
The NAHB Housing Market Index decreased to 82 in March (Briefing.com consensus 84.0) from 84.0 in February.
Business inventories increased 0.3% in January (Briefing.com consensus 0.3%) following a revised 0.8% increase (from 0.6%) in December.
Import prices increased 1.3% in February while import prices excluding oil increased 0.4%. Export prices increased 1.6% in February while export prices excluding agriculture increased 1.5%.

Aside from the FOMC Rate Decision, investors will receive Housing Starts and Building Permits for February and the MBA Mortgage Applications Index on Wednesday.

Russell 2000 +17.5% YTD
Dow Jones Industrial Average +7.3% YTD
S&P 500 +5.5% YTD
Nasdaq Composite +4.5% YTD

Market Snapshot
Dow 32825.95 -127.51 (-0.39%)
Nasdaq 13471.58 +11.86 (0.09%)
SP 500 3962.71 -6.23 (-0.16%)
10-yr Note +1/32 1.596
NYSE Adv 1118 Dec 2106 Vol 986.4 mln
Nasdaq Adv 1210 Dec 2801 Vol 5.4 bln

Industry Watch
Strong: Information Technology, Communication Services
Weak: Energy, Financials, Industrials, Materials

Moving the Market

-- S&P 500 and Nasdaq give up early gains

-- Cyclical stocks lag while growth stocks pare gains as interest rates come off lows

-- February retail sales weaker than expected, industrial production unexpectedly declines in February

Crude futures settle below $65 per barrel
16-Mar-21 15:25 ET
Dow -95.69 at 32857.77, Nasdaq +28.81 at 13488.53, S&P -1.34 at 3967.60

[BRIEFING.COM] The S&P 500 is trading slightly below its flat line, while the Russell 2000 continues to struggle with a 1.8% decline amid profit-taking interest.

One last look at the S&P 500 sectors shows energy (-2.3%), financials (-1.1%), and industrials (-1.1%) down more than 1.0%, while the communication services (+1.1%) and information technology (+1.0%) sectors trade higher by at least 1.0%.

WTI crude futures settled lower by 0.9%, or $0.59, to $64.81/bbl.

[ReturntoSender]

S&P 500 and Dow close at record highs following FOMC statement
17-Mar-21 16:20 ET
Dow +189.42 at 33015.37, Nasdaq +53.64 at 13525.22, S&P +11.41 at 3974.12

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

[BRIEFING.COM] The S&P 500 (+0.3%) and Dow Jones Industrial Average (+0.6%) closed at record highs on Wednesday, as the market reacted positively to the Fed's dovish policy statement in the afternoon. The Nasdaq Composite (+0.4%) and Russell 2000 (+0.7%) also posted modest gains, overcoming 1.5% and 1.3% intraday declines, respectively.

The intraday decline in the S&P 500 wasn't too bad (-0.4%), but there were signs of de-risking as all 11 of its sectors traded in negative territory at one point. The heavily-weighted growth stocks especially weighed on the Nasdaq as the 10-yr yield rose past 1.67%. Selling pressure, however, was relieved as soon as the FOMC statement was released at 2:00 p.m. ET.

The policy statement revealed no change to the fed funds rate (unanimous decision) and no change in the median estimate that the fed funds rate would remain unchanged through 2023. In addition, the Fed will continue to increase its holdings of Treasury and agency mortgage-backed securities by at least $120 billion per month, and the median estimate for the change in real GDP for 2021 was revised up to 6.5% from 4.2%.

In his press conference, Fed Chair Powell said it wouldn't be time to start talking about tapering asset purchases until the Fed sees substantial further progress in meeting its employment and inflation goals -- "actual progress" and not "forecast progress." Mr. Powell added that a transitory rise in inflation above 2% seems likely this year and the Fed will have something to announce on the supplementary leverage ratio (SLR) exemption in the coming days. There was a sense the Fed could extend the SLR exemption beyond the March 31 expiration.

Overall, the Fed communicated a patient and dovish approach to monetary policy that satisfied the market. Six of the 11 S&P 500 sectors closed in positive territory, the information technology sector (-0.1%) briefly turned positive after being down 1.6% intraday, long-term interest rates backed down from highs, and the U.S. dollar weakened (91.43, -0.45, -0.5%).

The cyclically-oriented consumer discretionary (+1.4%), industrials (+1.1%), energy (+0.9%), materials (+0.9%), and financials (+0.7%) sectors provided the leadership, while buying interest evaded the utilities sector (-1.6%).

The 10-yr yield settled at 1.64%, or two basis points above yesterday's settlement level. The 2-yr yield declined one basis point to 0.13%. WTI crude futures settled lower by 0.3%, or $0.20, to $64.61/bbl.

Separately, Lennar (LEN 100.95, +12.24, +13.8%) was one of today's biggest individual gainers with a 14% gain after announcing a $3-5 billion asset spinoff, confirming the formation of a $4 billion single family home rental platform, and beating EPS and revenue estimates. Lennar commented that demand for single family homes from former city dwellers is strong and growing.

Reviewing Wednesday's economic data:

Housing starts declined 10.3% month-over-month in February to a seasonally adjusted annual rate of 1.421 million units (Briefing.com consensus 1.550 million) and building permits declined 10.8% month-over-month to a seasonally adjusted annual rate of 1.682 million (Briefing.com consensus 1.750 million).
The key takeaway from the report is that the declines in single-unit starts were the worst in the Midwest (-30.5%) and South (-16.0%) regions, which were unduly impacted by the severe winter weather that hit in mid-February. That should take some of the sting out of the weak starts number for February, yet the fact that building permits (a leading indicator) for single-unit dwellings were flat to down in all regions is apt to create some concern that rising lumber costs and rising mortgage rates will lead to some slowing in the homebuilding industry.
The MBA Mortgage Applications Index decreased 2.2% following a 1.3% decline in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Conference Board's Leading Economic Index for February, and the Philadelphia Fed Index for March on Thursday.

Russell 2000 +18.3% YTD
Dow Jones Industrial Average +7.9% YTD
S&P 500 +5.8% YTD
Nasdaq Composite +4.9% YTD

Market Snapshot
Dow 33015.37 +189.42 (0.58%)
Nasdaq 13525.22 +53.64 (0.40%)
SP 500 3974.12 +11.41 (0.29%)
10-yr Note -2/32 1.639
NYSE Adv 1772 Dec 1390 Vol 1.1 bln
Nasdaq Adv 2385 Dec 1593 Vol 5.4 bln

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

Moving the Market

-- S&P 500 and Dow Jones Industrial Average close at record highs following dovish FOMC policy statement

-- Fed kept rates and pace of asset purchases unchanged

-- No change in the median estimate that the fed funds rate would remain unchanged through 2023

-- Long-term interest rates backed down from session highs

Crude futures settle on lower note
17-Mar-21 15:25 ET
Dow +156.23 at 32982.18, Nasdaq +69.79 at 13541.37, S&P +10.88 at 3973.59

[BRIEFING.COM] The S&P 500 is trading higher by 0.3% while the Dow is up 0.5% at fresh all-time highs.

One last look at the sector performances shows consumer discretionary (+1.5%) and materials (+0.6%) up in the lead. The information technology sector trades flat after being down 1.6% intraday. The utilities (-1.4%), real estate (-0.5%), and health care (-0.2%) sectors still trade lower.

WTI crude futures settled lower by 0.3%, or $0.20, to $64.61/bbl.

[ReturntoSender]

Large-cap indices close higher amid rebalancing efforts
22-Mar-21 16:15 ET
Dow +103.23 at 32731.20, Nasdaq +162.31 at 13377.57, S&P +27.49 at 3940.59

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

[BRIEFING.COM] The S&P 500 advanced 0.7% on Monday, as quarter-end rebalancing efforts drove the mega-caps higher and suppressed Treasury yields, although it did close off session highs (+1.1%). The Nasdaq Composite increased 1.2%, while the Dow Jones Industrial Average increased just 0.3% and the Russell 2000 (-0.9%) fell victim to rebalancing activity.

In the home stretch of the first quarter, which has greatly favored cyclical/value/small caps stocks, money appeared to disproportionately flow into the mega-cap/growth-stock laggards like Apple (AAPL 123.39, +3.40, +2.8%) and Tesla (TSLA 670.00, +15.13, +2.3%) as well as U.S. Treasuries. The 10-yr yield decreased five basis points to 1.68%, which was a double-bonus for growth stocks.

In terms of sector performances, the information technology sector (+1.9%) was the most influential gainer given it's the most heavily-weighted sector in the S&P 500. A strong showing from the semiconductor stocks supported the cause. The Philadelphia Semiconductor Index advanced 2.2%.

The consumer staples (+1.2%), real estate (+1.1%), health care (+0.9%), and communication services (+0.8%) sectors followed suit, but there were still more declining issues than advancing issues at the NYSE and Nasdaq. The financials (-1.3%), energy (-1.0%), industrials (-0.1%), and utilities (-0.1%) sectors closed lower.

The underperformance of the cyclical stocks despite encouraging U.S. Phase 3 trial data for AstraZeneca's (AZN 51.20, +1.99, +4.0%) COVID-19 vaccine supported the view that price action was more technically-oriented than fundamentally-driven. AstraZeneca plans to file for emergency use authorization in the coming weeks.

In addition, growth stocks barely reacted to the initial release of a New York Times report that President Biden is considering tax increases to help pay for an infrastructure/climate change bill. The administration later called the report "premature and not a reflection of the White House's thinking."

Separately, Kansas City Southern (KSU 249.09, +24.93, +11.1%) agreed to be acquired by Canadian Pacific (CP 356.53, -21.95, -5.8%) in a cash and stock transaction representing an enterprise value of $29 billion. The agreement valued KSU at $275 per share, or a 23% premium from Friday's close, but regulatory risks kept shares below this price.

The 2-yr yield was unchanged at 0.15%. The U.S. Dollar Index declined 0.1% to 91.80. WTI crude futures settled little changed at $61.47/bbl.

Reviewing Monday's economic data:

Existing home sales decreased 6.6% m/m in February to a seasonally adjusted annual rate of 6.22 million (Briefing.com consensus 6.50 million) from a downwardly revised 6.66 million (from 6.69 million) in January. Total sales in February were up 9.1% from a year ago.
The key takeaway from the report is that the supply of existing homes for sale remains near all-time low levels. That is driving up the pace of price increases well beyond the pace of income gains, which is going to create affordability pressures for prospective buyers along with rising mortgage rates.

Looking ahead, investors will receive New Home Sales for February and the Current Account Balance for the fourth quarter on Tuesday.

Russell 2000 +14.8% YTD
Dow Jones Industrial Average +6.9% YTD
S&P 500 +4.9% YTD
Nasdaq Composite +3.8% YTD

Market Snapshot
Dow 32731.20 +103.23 (0.32%)
Nasdaq 13377.57 +162.31 (1.23%)
SP 500 3940.59 +27.49 (0.70%)
10-yr Note +3/32 1.695
NYSE Adv 1453 Dec 1783 Vol 785.2 mln
Nasdaq Adv 1676 Dec 2260 Vol 5.2 bln

Industry Watch
Strong: Information Technology, Real Estate, Health Care, Communication Services
Weak: Financials, Energy, Industrials, Utilities

Moving the Market

-- Rebalancing efforts drove mega-caps/growth stocks higher and suppressed Treasury yields

-- Cyclical/small-cap stocks underperformed

-- Price action lost some steam in the afternoon

WTI crude futures settle little changed
22-Mar-21 15:25 ET
Dow +161.11 at 32789.08, Nasdaq +200.44 at 13415.70, S&P +35.35 at 3948.45

[BRIEFING.COM] The S&P 500 is currently up 0.9% and is trading around the 3950 level.

One last look at the S&P 500 sectors shows eight sectors trading higher while three trading lower. The information technology (+2.1%), consumer discretionary (+1.2%), communication services (+1.2%), and real estate (+1.1%) sectors outperform, while the financials (-1.0%), energy (-0.3%), and utilities (-0.3%) sectors are the lone holdouts today.

WTI crude futures settled little changed at $61.47/bbl.

[ReturntoSender]

Market closes lower in disappointing session
24-Mar-21 16:15 ET
Dow -3.09 at 32420.06, Nasdaq -265.81 at 12961.91, S&P -21.38 at 3889.14

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

[BRIEFING.COM] The S&P 500 declined 0.6% on Wednesday in a disappointing session from a price action perspective. The benchmark index was up as much as 0.8% in the morning on the back of renewed strength in the cyclical stocks, but weakness in the mega-cap/growth stocks limited the early advance with broader selling interest picking up into the close.

The Nasdaq Composite fell 2.0% after being up 0.5% in early action, and the Russell 2000 fell 2.4% after being up 1.7% in early action. The Dow Jones Industrial Average (-0.01%) closed relatively unchanged after being up 1.1% intraday.

There was a strong pro-cyclical trade to start the day after Intel (INTC 62.04, -1.44, -2.3%) announced plans to invest $20 billion to build two semiconductor manufacturing facilities in Arizona, the eurozone reported stronger-than-expected flash March Manufacturing PMIs, and more states announced plans to expand COVID-19 vaccine eligibility.

The cyclical trade, however, lost steam in the afternoon, tempering the gains in the S&P 500 energy (+2.5%), industrials (+0.7%), materials (+0.7%), and financials (+0.4%) sectors. The real culprits behind the negative index performances, though, were the influential information technology (-1.2%), consumer discretionary (-1.5%), and communication services (-1.7%) sectors.

Interestingly, the growth stocks within these key sectors underperformed for most of the day despite the friendly action in the Treasury market. The inability to react positively to lower rates perhaps fueled uncertainty about the path of growth stocks, many of which remain well below their recent all-time highs.

The 10-yr yield decreased two basis points to 1.61% amid an uptick in demand following the $61 billion 5-yr note auction. The 2-yr yield decreased one basis point to 0.14%. The U.S. Dollar Index increased 0.3% to 92.58. WTI crude futures rebounded 5.9%, or $3.38, to $61.13/bbl amid technical and supply-side factors.

Within the technology sector, shares of Intel were up 6% at the open following its strategic announcement, but shares quickly turned around in a sell-the-news reaction after briefly hitting a 52-week high. Adobe (ADBE 451.51, -8.69, -1.9%) also gave up an opening gain despite beating top and bottom-line estimates and issuing upbeat guidance for Q2 and FY21.

Elsewhere, the ARK Innovation ETF (ARKK 114.78, -6.92, -5.7%) fell 5.7% while shares of GameStop (GME 120.34, -61.41, -33.8%) plunged 34% following its earnings report.

Cruise lines were an exemption to the cyclical trade after the CDC said cruise line restrictions will remain until Nov. 1 despite calls for a phase-in resumption in early July, according to Bloomberg. Shares of Carnival (CCL 24.85, -0.48, -1.9%) declined 2% after trading higher by around 8% prior to the news.

Reviewing Wednesday's economic data:

Durable goods orders declined 1.1% m/m in February (Briefing.com consensus +0.9%) following an upwardly revised 3.5% increase (from 3.4%) in January. Excluding transportation, durable goods orders dropped 0.9% m/m (Briefing.com consensus +0.6%) following an upwardly revised 1.6% increase (from 1.4%) in January.
The key takeaway from the report is that the disappointing data for February followed on the heels of some notable strength in January, which in turn followed on the heels of some notable strength in prior months, suggesting that it is most likely only a temporary pause in the strengthening demand for durable goods.
The IHS final Markit Manufacturing PMI for March checked in at 59.0 vs. 58.6 in the preliminary reading. The final Services PMI for March checked in at 60.0 vs. 59.8 in the preliminary reading.
The weekly MBA Mortgage Applications Index decreased 2.5% following a 2.2% decline in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report and the third estimate for Q4 GDP on Thursday.

Russell 2000 +8.1% YTD
Dow Jones Industrial Average +5.9% YTD
S&P 500 +3.5% YTD
Nasdaq Composite +0.6% YTD

Cruise lines turn negative after CDC balks on phase-in request
24-Mar-21 15:30 ET
Dow +133.40 at 32556.55, Nasdaq -184.11 at 13043.61, S&P -1.19 at 3909.33

[BRIEFING.COM] The S&P 500 has slipped below its flat line, while the Nasdaq (-1.4%) and Russell 2000 (-1.1%) underperform with losses over 1.0%.

The cyclical trade has some of its early luster. Cruse lines, for instance, have turned negative after the CDC said cruise line restrictions will remain until Nov. 1 despite calls for a phase-in resumption in early July, according to Bloomberg. Carnival (CCL 24.89, -0.44, -1.7%) is down 1.7% after trading higher by 8% prior to the news.

This hasn't affected oil prices, though. WTI crude futures settled higher by 5.9%, or $3.38, to $61.13/bbl as OPEC+ reportedly wants to keep output steady for another month to help offset lower demand in Europe.

[ReturntoSender]

S&P 500 sets all-time high in growth-stock day
31-Mar-21 16:15 ET
Dow -85.41 at 32981.55, Nasdaq +201.48 at 13246.90, S&P +14.34 at 3972.89

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

[BRIEFING.COM] The S&P 500 (+0.4%) set an intraday record high on Wednesday on the back of renewed strength in the mega-cap/growth/technology stocks, but the market pared gains into the close. The Nasdaq Composite (+1.5%) and Russell 2000 (+1.1%) outperformed the benchmark index, while the Dow Jones Industrial Average (-0.3%) closed slightly lower.

Today's price action appeared heavily influenced by rebalancing activity on the last day of the quarter, suggesting money managers re-allocated funds into quarterly laggards given the sheer outperformance from many of the value/cyclical stocks this quarter. In other words, today was a growth-stock day.

The S&P 500 information technology (+1.5%) and consumer discretionary (+0.8%) sectors finished atop the sector standings, the Vanguard Mega Cap Growth ETF (MGK 207.07, +2.90, +1.4%) rose 1.4%, the ARK Innovation ETF (ARKK 119.95, +5.53, +4.8%) rose 4.8%, and the Philadelphia Semiconductor Index rose 2.6%.

Conversely, the energy (-0.9%) and financials (-0.9%) sectors -- the Q1 winners -- underperformed alongside the materials (-0.5%), industrials (-0.3%), real estate (-0.5%), and consumer staples (-0.5%) sectors.

Besides rebalancing activity, Apple (AAPL 122.15, +2.25, +1.9%) and Microsoft (MSFT 235.77, +3.92, +1.7%) benefited from an analyst upgrade and encouraging corporate news. Specifically, Apple was upgraded to Buy from Neutral at UBS. Microsoft was awarded an augmented-reality contract with the U.S. Army, reportedly worth close to $22 billion over ten years.

In other developments, Pfizer (PFE 36.23, +0.12, +0.3%) and BioNTech (BNTX 109.19, +4.75, +4.6%) said their COVID-19 vaccine trial for adolescents ages 12-15 demonstrated 100% efficacy and robust antibody responses. Walgreens Boots Alliance (WBA 54.90, +1.92, +3.6%) beat EPS estimates and raised its FY21 guidance.

Separately, many investors were waiting for President Biden to unveil a $2 trillion infrastructure plan in a speech after the close. Reports indicated the bill would call for increases in corporate taxes to help finance the spending.

In the Treasury market, yields settled the session slightly higher amid some selling interest. The 2-yr yield increased two basis points to 0.16%, and the 10-yr yield increased two basis points to 1.75%. The U.S. Dollar Index decreased 0.1% to 93.22. WTI crude futures decreased 2.3%, or $1.38, to $59.19/bbl.

Reviewing Wednesday's economic data:

The ADP Employment report pointed to the addition of 517,000 private payrolls in March (Briefing.com consensus 525,000) while the February increase was revised up to 176,000 from 117,000.
The Chicago PMI for March increased to 66.3 (Briefing.com consensus 60.0) from 59.5 in February.
Pending home sales dropped 10.6% in February (Briefing.com consensus -2.6%) following a 2.4% decline in January (from -2.8%)
The weekly MBA Mortgage Applications Index decreased 2.2% following a 2.5% decline in the prior week.

Looking ahead, investors will receive the ISM Manufacturing Index for March, the weekly Initial and Continuing Claims report, and Construction Spending for February on Thursday.

Russell 2000 +12.4% YTD
Dow Jones Industrial Average +7.8% YTD
S&P 500 +5.7% YTD
Nasdaq Composite +2.8% YTD

WTI crude futures settle below $60 per barrel
31-Mar-21 15:25 ET
Dow +15.10 at 33082.06, Nasdaq +264.67 at 13310.09, S&P +29.13 at 3987.68

[BRIEFING.COM] The S&P 500 is up 0.8%, while the Russell 2000 is up 1.7%.

One last look at the S&P sectors shows information technology (+2.1%) outperforming by a comfortable margin over second-place consumer discretionary (+1.3%). Conversely, the financials (-0.4%), energy (-0.5%), and consumer staples (-0.3%) sectors lag in negative territory.

WTI crude futures settled lower by 2.3%, or $1.38, to $59.19/bbl.

[ReturntoSender]

S&P 500 tops 4000 for the first time
01-Apr-21 16:15 ET
Dow +171.66 at 33153.21, Nasdaq +233.23 at 13480.13, S&P +46.98 at 4019.87

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

[BRIEFING.COM] The S&P 500 (+1.2%) set intraday and closing record highs on Thursday, topping the 4000 level for the first time, in a relatively broad-based advance. The Nasdaq Composite (+1.8%) and Russell 2000 (+1.5%) outperformed the benchmark index with solid gains, while the Dow Jones Industrial Average (+0.5%) rose modestly.

There was a confluence of positive developments today. To name a few, the ISM Manufacturing Index for March jumped to 64.7% (Briefing.com consensus 61.2%) from 60.8% in February for its tenth straight expansionary reading, first-of-the-month inflows helped drive equities higher and Treasury yields lower, and the mega-caps provided influential leadership.

The mega-cap leadership was represented in the outperformances of the S&P 500 information technology (+2.1%) and communication services (+2.1%) sectors, although the energy sector (+2.7%) advance the most. The defensive-oriented health care (-0.2%), consumer staples (-0.2%), and utilities (-0.02%) sectors closed lower.

The Philadelphia Semiconductor Index (+3.7%) was another pocket of strength after Micron (MU 92.41, +4.20, +4.8%) beat EPS estimates and issued upbeat Q3 guidance and Taiwan Semi (TSM 124.80, +6.52, +5.5%) announced plans to invest $100 billion over three years to expand production capacity.

Energy stocks drew additional support from higher oil prices following an OPEC+ policy meeting. The group agreed to cautiously increase output from May through July with Saudi Arabia easing on its extra 1 million barrel/day cut. WTI crude futures settled higher by 3.8%, or $2.22, to $61.41/bbl.

It was interesting to see buyers return to the Treasury market, and the industrials sector (+0.4%) lag, despite the better-than-expected manufacturing data and President Biden unveiling a $2.3 trillion infrastructure spending plan yesterday.

As noted, first-of-the-month inflows presumably had an influence on Treasury prices, but there might have also been a cautious mindset in front of a three-day weekend that will include the March employment report tomorrow.

The 10-yr yield decreased seven basis points to 1.68%. The 2-yr yield decreased one basis point to 0.15%. The U.S. Dollar Index decreased 0.4% to 92.90. The CBOE Volatility Index (17.33, -2.07, -10.7%) dropped below 18.00.

Reviewing Thursday's economic data:

Initial jobless claims for the week ending March 27 increased by 61,000 to 719,000 (Briefing.com consensus 679,000) from last week's revised count of 658,000 (from 684,000). Continuing claims for the week ending March 20 decreased by 46,000 to 3.794 mln from last week's revised level of 3.840 mln (from 3.870 mln).
The key takeaway from the report is that while claims have been trending in the right direction for months, the overall downtrend continues hitting speed bumps like the unexpected increase that was captured in today's report.
The ISM Manufacturing Index for March jumped to 64.7% (Briefing.com consensus 61.2%) from 60.8% in February, reaching a level not seen since late 1983. The dividing line between expansion and contraction is 50.0%. March marked the tenth consecutive month the ISM Manufacturing Index has been above 50.0%.
The key takeaway from the report is that the Index reached its highest level in more than 37 years in the March reading, thanks to a growing backlog, rising prices, and low customer inventories.
Total construction spending decreased by 0.8% m/m in February (Briefing.com consensus -0.9%) after increasing a downwardly revised 1.2% (from 1.7%) in January. Total private construction spending fell 0.5% m/m and total public construction spending decreased 1.7%.
The key takeaway from the report is that construction spending showed a smaller than expected decrease in February despite severe winter weather in many regions of the country.
The IHS Markit Manufacturing PMI increased to 59.1 in March from 59.0 in February.

Looking ahead, the Employment Situation Report will be released on Friday (market will be closed for Good Friday), followed by the ISM Non-Manufacturing Index for March and Factory Orders for February on Monday.

Russell 2000 +14.1% YTD
Dow Jones Industrial Average +8.3% YTD
S&P 500 +7.0% YTD
Nasdaq Composite +4.6% YTD

WTI crude futures settle higher after OPEC+ meeting
01-Apr-21 15:30 ET
Dow +116.32 at 33097.87, Nasdaq +196.04 at 13442.94, S&P +36.41 at 4009.30

[BRIEFING.COM] The S&P 500 is up 0.9%, and the Russell 2000 is up 1.2%.

One last look at the S&P 500 sectors shows energy (+2.4%), information technology (+1.8%), and communication services (+1.7%) leading the advance with gains over 1.5%, while the utilities (-0.5%), health care (-0.3%), and consumer staples (-0.01%) sectors are trading lower.

WTI crude futures settled higher by 3.8%, or $2.22, to $61.41/bbl. OPEC+ agreed to cautiously increase output from May through July with Saudi Arabia easing on its extra 1 million barrel/day cut.

[ReturntoSender]

S&P 500 and Dow close in record territory
09-Apr-21 16:15 ET

Dow +297.03 at 33800.60, Nasdaq +70.88 at 13900.22, S&P +31.63 at 4128.80

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

[BRIEFING.COM] The S&P 500 (+0.8%) and Dow Jones Industrial Average (+0.9%) set intraday and closing record highs on Friday, with the benchmark index topping the 4100 level for the first time. The Nasdaq Composite (+0.5%) overcame an early decline to close positive. The Russell 2000 (+0.04%) sneaked into the green amid a strong finish in the broader market.

The session started with the market brushing off a hotter-than-expected Producer Price Index report for March, which showed producer prices for final demand increase 1.0% m/m (Briefing.com consensus +0.5%) and 4.2% yr/yr. Despite the potential for a spillover into consumer prices, the market trusted the Fed's thinking it'll be transitory.

The difference makers today came out of the heavily-weighted S&P 500 information technology (+1.0%) and consumer discretionary (+1.2%) sectors, which boasted strong performances from Apple (AAPL 133.00, +2.64, +2.0%) and Amazon (AMZN 3372.20, +72.90, +2.2%) in a continuation of their monthly outperformances.

Buying activity increased noticeably into the close on no confirmed catalyst, with the health care (+1.2%), industrials (+1.0%), and financials (+0.9%) sectors rounding out the top spots. Conversely, the energy (-0.5%), consumer staples (-0.1%), and utilities (-0.1%) sectors closed slightly lower.

The health care sector advanced without the leadership of Johnson & Johnson (JNJ 161.25, -1.72, -1.0%), which lost ground amid concerns surrounding the rollout and safety of its COVID-19 vaccine. Within the industrials sector, Boeing (BA 252.36, -2.59, -1.0%) advised customers to address a potential electrical issue in a specific group of 737 MAX planes prior to further operations.

Separately, the latest Flow Show report from BofA Securities indicated that total global equity inflows over the past five months ($576 billion) has exceeded total inflows for the past 12 years ($425 billion). Some attributed this eye-popping statistic to the muted price action during most of the day, but there still appeared to be an underlying hunger for risk assets.

In the Treasury market, the 10-yr yield settled three basis points higher at 1.67%, or slightly lower than where it was trading immediately before, and after, the PPI data. The 2-yr yield increased one basis point to 0.15%. The U.S. Dollar Index increased 0.1% to 92.17. WTI crude futures decreased 0.5%, or $0.32, to $59.29/bbl.

Reviewing Friday's economic data:

The Producer Price Index for final demand increased 1.0% month-over-month in March (Briefing.com consensus +0.5%). The index for final demand, excluding food and energy, jumped 0.7% m/m (Briefing.com consensus +0.2%. On a year-over-year basis, the index for final demand was up 4.2% (highest since 12 months ending September 2011), versus 2.8% in February. The index for final demand, excluding food and energy, was up 3.1% yr/yr, versus 2.5% in February.
The key takeaway from the report isn't in the headline numbers. They are important, but the key takeaway is the pipeline pressures evident in the index for processed goods for intermediate demand, which increased 4.0% m/m in March (largest jump since August 1974), and in the index for unprocessed goods for intermediate demand, which surged 9.3% m/m (highest since November 2006). Those large increases point to inflation issues that are apt to linger for producers and which could potentially spill over into consumer prices.
Wholesale inventories increased 0.6% m/m in February (Briefing.com consensus 0.5%) following an upwardly revised 1.4% increase (from +1.3%) in January.

Looking ahead, investors will receive the March Treasury Budget on Monday.

Russell 2000 +13.6% YTD
Dow Jones Industrial Average +10.4% YTD
S&P 500 +9.9% YTD
Nasdaq Composite +7.9% YTD



Crude futures settle in negative territory
09-Apr-21 15:30 ET

Dow +200.34 at 33703.91, Nasdaq +24.07 at 13853.41, S&P +18.93 at 4116.10
[BRIEFING.COM] The S&P 500 is seeing an uptick to session highs with a 0.5% gain. Any positive finish would be good for a record close.

One last look at the S&P 500 sectors shows information technology (+0.6%), consumer discretionary (+0.8%), and health care (+0.8%) providing the leadership, while the energy (-0.5%), communication services (-0.2%), consumer staples (-0.2%), and utilities (-0.1%) sectors trade lower.

WTI crude futures settled lower by 0.5%, or $0.32, to $59.29/bbl.

[ReturntoSender]

Major indices close slightly lower to begin the week
12-Apr-21 16:20 ET

Dow -55.20 at 33745.40, Nasdaq -50.19 at 13850.03, S&P -0.81 at 4127.99

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

[BRIEFING.COM] The S&P 500 (-0.02%) eked out an intraday record high on Monday, but it closed fractionally lower in a tight-ranged session as investors waited for Q1 earnings and economic data later in the week. The Nasdaq Composite (-0.4%), Dow Jones Industrial Average (-0.2%), and Russell 2000 (-0.4%) joined the benchmark index with modest losses.

Eight of the 11 S&P 500 sectors closed higher, although daily gains were capped at 0.6% (consumer discretionary). The information technology (-0.5%) and communication services (-0.6%) sectors dragged on index performance amid a breather in their heavily-weighted components while the energy sector (-0.9%) was the weakest link.

Generally speaking, investors appeared content in withholding conviction for a batch of key economic reports throughout the week, starting with the Consumer Price Index for March tomorrow, and for earnings reports from some of the leading financial institutions on Wednesday.

Tesla (TSLA 701.98, +24.96, +3.7%) and NVIDIA (NVDA 608.36, +32.36, +5.6%) were some of the more influential gainers today, helping make up for the lackluster price action in the broader market. TSLA was upgraded to Buy from Hold at Canaccord Genuity. NVIDIA raised Q1 revenue guidance above consensus and announced several new product offerings.

Shares of Intel (INTC 65.41, -2.86, -4.2%) and Advanced Micro Devices (AMD 78.58, -4.18, -5.1%) fell noticeably on the increased competition with NVIDIA. The Philadelphia Semiconductor Index declined 1.1%.

In other corporate news, Microsoft (MSFT 255.91, +0.06, unch) agreed to acquire Nuance Communications (NUAN 52.85, +7.27, +16.0%) in a $19.7 billion cash deal. Uber (UBER 59.44, +1.76, +3.1%) reported its highest monthly total company gross bookings in March.

In Fedspeak, Fed Chair Powell said in a 60 Minutes interview that forecasts for U.S. economic growth and jobs growth are looking strong. St. Louis Fed President Bullard told Bloomberg that the central bank will not consider tightening policy until about 75% to 80% of the U.S. population is vaccinated. According to the CDC COVID Data Tracker, about 22% of the U.S. population is fully vaccinated.

Elsewhere, $207 billion in new debt was issued in the Treasury market today, which the market absorbed without too much trouble. The 2-yr yield increased one basis point to 0.16%, and the 10-yr yield increased one basis point to 1.68%. The U.S. Dollar Index was little changed at 92.12. WTI crude futures increased 0.7%, or $0.40, to $59.69/bbl.

Reviewing Monday's economic data:

The Treasury Budget for March showed a $659.6 bln deficit, versus a $119.0 bln deficit in the same period a year ago. The budget data is not seasonally adjusted, so the March deficit can't be compared to the February deficit of $310.9 bln.
The fiscal year-to-date budget deficit is $1.71 trln versus -$743.5 bln for the same period a year ago. The budget deficit over the last 12 months is $4.09 trln versus -$3.55 trln in February.

Looking ahead, investors will receive the Consumer Price Index for March and the NFIB Small Business Optimism Index for March on Tuesday.

Russell 2000 +13.1% YTD
Dow Jones Industrial Average +10.3% YTD
S&P 500 +9.9% YTD
Nasdaq Composite +7.5% YTD



WTI crude futures settle in the green
12-Apr-21 15:25 ET

Dow -88.38 at 33712.22, Nasdaq -61.52 at 13838.70, S&P -5.43 at 4123.37
[BRIEFING.COM] The S&P 500 is down 0.1%, and the Russell 2000 is down 0.6%.

One last look at the S&P 500 sectors shows information technology (-0.5%) and communication services (-0.9%) largely responsible for the negative bias in the benchmark index, while the consumer discretionary (+0.4%) and financials (+0.3%) sectors provide some offsetting support.

WTI crude futures settled higher by 0.7%, or $0.40, to $59.69/bbl.



NVIDIA raises Q1 revenue guidance above consensus
12-Apr-21 15:00 ET

Dow -105.31 at 33695.29, Nasdaq -75.01 at 13825.21, S&P -8.15 at 4120.65
[BRIEFING.COM] The S&P 500 is trading lower by 0.2% and has traded slightly lower for most of the day.

In addition to its new product announcements, NVIDIA (NVDA 610.07, +33.91, +5.9%) raised its Q1 revenue guidance above consensus due to overall demand being very strong. The company said it expects demand to continue to exceed supply for much of this year and will have sufficient supply to support sequential growth beyond Q1.

Looking ahead, Fastenal (FAST 50.44, +0.37, +0.8%) will report earnings prior to the open tomorrow.

[ReturntoSender]

Stock Market Update

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

Market Snapshot
Dow 34035.85 +304.96 (0.90%)
Nasdaq 14038.79 +180.92 (1.31%)
SP 500 4170.45 +45.79 (1.11%)
10-yr Note +30/32 1.546
NYSE Adv 2051 Dec 1164 Vol 849.0 mln
Nasdaq Adv 2037 Dec 2036 Vol 4.3 bln

Industry Watch
Strong: Information Technology, Health Care, Communication Services
Weak: Energy, Financials

Moving the Market

-- S&P 500 and Dow set all-time highs in continuation of bullish trend

-- Strong retail sales data for March, weekly initial claims drop below 600,000 for its lowest level since the pandemic began

-- Long-term interest rates drop noticeably despite the economic data

Bull market keys off economic data, lower rates
15-Apr-21 16:15 ET
Dow +304.96 at 34035.85, Nasdaq +180.92 at 14038.79, S&P +45.79 at 4170.45

[BRIEFING.COM] The S&P 500 (+1.1%), Dow Jones Industrial Average (+0.9%), and Nasdaq 100 (+1.6%) set intraday and closing record highs on Thursday, as the 10-yr yield dropped 11 basis points to 1.53% despite a batch of better-than-expected economic data. The Nasdaq Composite rose 1.3%. The Russell 2000 increased just 0.4%.

Prior to the open, retail sales soared 9.8% m/m in March (Briefing.com consensus +5.3%), weekly initial claims dropped by 193,000 to 576,000 (Briefing.com consensus 695,000), the Philadelphia Fed Index for April checked in at 50.2 (Briefing.com consensus 35.0), and the Empire State Manufacturing Survey for April checked in at 26.3 (Briefing.com consensus 23.0).

Granted, the futures market had already established a positive bias even before the data was released, partially due to a prevailing bullish sentiment and better-than-expected earnings reports. The data strengthened the cause, but more notably, buying interest accelerated in the Treasury market, driving longer-dated yields sharply lower.

Longer-dated yields typically move higher when investors feel better about the economic outlook, or expect an increase in inflation, but today they continued their monthly downtrend despite the data supporting the growth outlook. The nosedive in long-term rates suggested short-covering activity was a contributing factor.

As expected, the mega-cap/growth/technology stocks benefited from the lower rates, but the gains were relatively broad with nine of the 11 S&P 500 sectors closing in positive territory. The information technology (+1.8%), health care (+1.7%), and real estate (+2.0%) sectors rose more than 1.5%. The energy (-0.9%) and financials (-0.1%) sectors closed lower.

UnitedHealth (UNH 390.01, +14.38, +3.8%) was a major contributor in the health care sector after beating top and bottom-line estimates and raising its FY21 EPS guidance. The financials sector featured better-than-expected earnings reports from Bank of America (BAC 38.74, -1.14, -2.9%) and Citigroup (C 72.53, -0.38, -0.5%).

The inability of the financials sector to rally around earnings news was largely due to the curve-flattening activity in the Treasury market. BlackRock (BLK 817.84, +16.77, +2.1%) provided offsetting support, though, after reporting that assets under management rose 39% yr/yr to $9 trillion. BLK also beat revenue estimates.

The 2-yr yield decreased one basis point to 0.14%. The U.S. Dollar Index decreased 0.1% to 91.62. WTI crude futures increased 0.4%, or $0.28, to $63.44/bbl.

Reviewing Thursday's huge batch of economic data:

March retail sales soared 9.8% m/m (Briefing.com consensus 5.3%) following an upwardly revised 2.7% decline (from -3.0%) in February. Excluding autos, they were up 8.4% m/m (Briefing.com consensus 4.9%) following an upwardly revised 2.5% decline (from -2.7%) in February.
The key takeaway from the report is that there was a clear rebound from some of the "frozen" activity in February, the arrival of stimulus checks, and pent-up demand that was plain to see in double-digit percentage gains across various discretionary spending categories like food services and drinking places (+13.4%).
Initial jobless claims for the week ending April 10 declined by 193,000 to 576,000 (Briefing.com consensus 695,000). Continuing claims for the week ending April 3 increased 4,000 to 3.731 million.
The key takeaway from the report is that initial claims were the lowest they have been since the pandemic started; moreover, they finally dropped in a material manner that is consistent with the reopening (and rehiring) narrative feeding expectations of strong economic growth.
Total industrial production increased 1.4% m/m in March (Briefing.com consensus 2.9%) following a downwardly revised 2.6% decline (from -2.2%) in February. The capacity utilization rate increased to 74.4% (Briefing.com consensus 75.9%) from a downwardly revised 73.4% (from 73.8%) in February.
The key takeaway from the report is that it suggests the downturn in February was primarily a weather-driven downturn, although March could have been a bit stronger for industrial production if not for the ongoing shortage of semiconductors that continued to hold down vehicle production.
The Philadelphia Fed Index increased to 50.2 in April (Briefing.com consensus 35.0) from a downwardly revised 44.5 (from 51.8) in March.
The Empire State Manufacturing Survey increased to 26.3 in April (Briefing.com consensus 23.0) from 17.4 in March.
The NAHB Housing Market Index increased to 83.0 in April (Briefing.com consensus 84.0) from 82.0 in March.
Business inventories increased 0.5% m/m in February, as expected, following an upwardly revised 0.4% increase (from 0.3%) in January.

Looking ahead, investors will receive Housing Starts and Building Permits for March and the preliminary University of Michigan Index of Consumer Sentiment for April on Friday.

Russell 2000 +14.3% YTD
Dow Jones Industrial Average +11.2% YTD
S&P 500 +11.0% YTD
Nasdaq Composite +8.9% YTD

WTI crude futures settle slightly higher
15-Apr-21 15:30 ET
Dow +256.57 at 33987.46, Nasdaq +145.30 at 14003.17, S&P +37.34 at 4162.00

[BRIEFING.COM] The S&P 500 is up 0.9% and well on track to close at another record high. The same goes for the Dow (+0.8%).

One last look at the S&P 500 sector performances shows nine trading higher and two trading lower. The health care (+1.7%), information technology (+1.5%), real estate (+1.5%), and communication services (+1.1%) sectors are in the lead with gains over 1.0%; conversely, the energy (-1.1%) and financials (-0.4%) sectors trade lower.

WTI crude futures settled higher by 0.4%, or $0.28, to $63.44/bbl.
NVIDIA rallying to all-time highs amid analyst upgrade

[ReturntoSender]

Stock Market Update

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

Market Snapshot
Dow 33981.57 -61.92 (-0.18%)
Nasdaq 14138.80 +121.97 (0.87%)
SP 500 4187.62 +7.45 (0.18%)
10-yr Note -22/32 1.570
NYSE Adv 2044 Dec 1230 Vol 813.4 mln
Nasdaq Adv 2823 Dec 1368 Vol 4.4 bln

Industry Watch
Strong: Financials, Industrials, Energy, Materials, Consumer Discretionary
Weak: Health Care, Utilities, Consumer Staples

Moving the Market

-- Tight-ranged session ahead of busy week of events

-- Cautiously optimistic

-- Mixed sector performances

S&P 500 and Nasdaq set new highs in front of busy news week
26-Apr-21 16:15 ET
Dow -61.92 at 33981.57, Nasdaq +121.97 at 14138.80, S&P +7.45 at 4187.62

[BRIEFING.COM] The S&P 500 (+0.2%) eked out an intraday record high on Monday, as investors appeared cautiously optimistic for this week's big slate of events. The Nasdaq Composite (+0.9%) and Russell 2000 (+1.2%) outperformed, with the Nasdaq closing at a record high, while the Dow Jones Industrial Average decreased 0.2%.

Advancing issues had a clear advantage over declining issues at the NYSE and Nasdaq, but the gains were relatively modest at the large-cap level as no sector in the S&P 500 advanced more than 1.0%. The biggest gains were scored in the small-cap, micro-cap, and cryptocurrency spheres, signaling enhanced retail sentiment.

Within the S&P 500, the consumer discretionary (+0.6%), information technology (+0.6%), and energy (+0.6%) sectors were the top performers. The consumer staples (-1.2%), utilities (-0.6%), health care (-0.4%), and industrials (-0.3%) sectors lagged in negative territory.

Amazon (AMZN 3409.00, +69.12, +2.0%) was an influential gainer in the Nasdaq, and consumer discretionary sector, amid speculation that the company could announce a stock split when it reports earnings on Thursday. Shares of Tesla (TSLA 738.20, +8.80, +1.2%) rose modestly ahead of its earnings report after today's close.

Aside from the biggest week in earnings this season, the market has GDP/inflation data, the Fed's policy meeting, and President Biden's congressional speech on its calendar. The president is expected to outline his "American Families Plan" on Wednesday.

In the Treasury market, the 10-yr yield settled unchanged at 1.57% after touching 1.60% in the morning. Buying interest increased after the release of the durable goods orders report, which showed a smaller-than-expected 0.5% m/m increase in total orders for March (Briefing.com consensus +2.0%).

The 2-yr yield increased two basis points to 0.17%. The U.S. Dollar Index was little changed at 90.82. WTI crude futures increased 0.3%, or $0.19, to $61.96/bbl.

Reviewing Monday's economic data:

Total durable goods orders rose 0.5% month-over-month in March (Briefing.com consensus 2.0%) following an upwardly revised 0.9% decline (from -1.1%) in February. Orders, excluding transportation, jumped 1.6%, in-line with the Briefing.com consensus estimate, after declining an upwardly revised 0.3% (from -0.9%) in February.
The key takeaway from the report is that business spending bounced back after the February downturn. That was seen in the 0.9% increase in nondefense capital goods orders, excluding aircraft.

Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for April, the FHFA Housing Price Index for February, and the S&P Case-Shiller Home Price Index for February on Tuesday.

Russell 2000 +16.4% YTD
S&P 500 +11.5% YTD
Dow Jones Industrial Average +11.0% YTD
Nasdaq Composite +9.7% YTD

Energy stocks outperforming despite lower oil prices
26-Apr-21 15:25 ET
Dow -10.20 at 34033.29, Nasdaq +133.29 at 14150.12, S&P +12.78 at 4192.95

[BRIEFING.COM] The S&P 500 continues to trade higher by 0.3% and is vying for intraday and closing record highs.

One last look at the sector performances shows consumer staples (-1.1%) as the only sector up or down more than 1.0%. The energy (+0.9%), consumer discretionary (+0.7%), and information technology (+0.6%) sectors outperform with modest gains.

WTI crude futures settled lower by 0.3%, or $0.19, to $61.96/bbl.

[ReturntoSender]

Stock Market Update

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

Market Snapshot
Dow 33984.93 +3.36 (0.01%)
Nasdaq 14090.24 -48.56 (-0.34%)
SP 500 4186.72 -0.90 (-0.02%)
10-yr Note -1/32 1.588
NYSE Adv 1603 Dec 1605 Vol 778.3 mln
Nasdaq Adv 1896 Dec 2250 Vol 4.6 bln

Industry Watch
Strong: Energy, Industrials, Financials
Weak: Information Technology, Communication Services, Health Care, Utilities

Moving the Market

-- Stock market closes little changed in front of Fed decision tomorrow afternoon

-- Cyclical tilt to the session, UPS (UPS) drove the outperformance of the industrials sector with a 10% earnings-driven gain

Flat session ahead of Fed decision tomorrow
27-Apr-21 16:15 ET
Dow +3.36 at 33984.93, Nasdaq -48.56 at 14090.24, S&P -0.90 at 4186.72

[BRIEFING.COM] The stock market closed little changed on Tuesday, as investors assumed a wait-and-see mindset for the Fed's policy announcement tomorrow. The S&P 500 (-0.02%), Dow Jones Industrial Average (+0.01%), Nasdaq Composite (-0.3%), and Russell 2000 (+0.1%) finished within 0.3% of their flat lines.

There was a cyclical tilt to the session, evident by the outperformances of the S&P 500 industrials (+0.9%), financials (+0.9%), and energy (+1.3%) sectors. These respective sectors drew support from a 10% earnings-driven gain in UPS (UPS 194.13, +18.32, +10.4%), curve-steepening activity in the Treasury market, and higher oil prices ($62.95, +0.99, +1.6%).

Conversely, the information technology (-0.3%), communication services (-0.5%), health care (-0.5%), and utilities (-0.8%) sectors were among the laggards in negative territory. No sector declined more than 1.0%, though.

Outside of UPS, the earnings picture wasn't as exciting. Tesla (TSLA 704.74, -33.46, -4.5%), General Electric (GE 13.49, -0.08, -0.6%), 3M (MMM 194.38, -5.25, -2.6%), and Eli Lilly (LLY 182.10, -5.12, -2.7%) were some of the larger companies that reported earnings, and shares closed lower in response.

The broader market was unmoved once again by the slate of earnings news, with institutional investors purportedly waiting for Microsoft (MSFT 261.97, +0.42, +0.2%) and Alphabet (GOOG 2307.12, -19.62, -0.8%) to report earnings after today's close. In addition, there was the typical reservation in front of the Fed's rate decision and Fed Chair Powell's press conference tomorrow.

Likewise, there was little reaction to the Conference Board's Consumer Confidence Index jumping to 121.7 in April (Briefing.com consensus 113.5) -- its highest reading since February 2020, or right before the pandemic shut down the economy. The better-than-expected reading was underpinned by a significant improvement in attitudes about current conditions.

Elsewhere, longer-dated Treasuries saw increased selling interest shortly after the reopening results of the $62 billion 7-yr Treasury note auction, which saw okay demand. The 10-yr yield increased five basis points to 1.62%, while the 2-yr yield was unchanged at 0.17%. The U.S. Dollar Index increased 0.1% to 90.89.

Reviewing Tuesday's economic data:

The Conference Board's Consumer Confidence Index jumped to 121.7 in April (Briefing.com consensus 113.5) from a downwardly revised 109.0 (from 109.7) in March. The April reading is the highest since February 2020.
The key takeaway from the report is that it reflects a clear improvement in attitudes about current conditions, which have been fueled by increased vaccination rates, the receipt of stimulus checks, and reopening activity that is leading to increased hiring activity.
The S&P Case-Shiller Home Price Index increased 11.9% yr/yr in February (Briefing.com consensus 11.8%) following an upwardly revised 12.1% increase in January (from 11.1%).
The FHFA Housing Price Index increased 0.9% m/m in February.

Looking ahead, investors will receive the FOMC Rate Decision, the weekly MBA Mortgage Applications Index, and Advance Wholesale Inventories, International Trade in Goods, and Retail Inventories for March on Wednesday.

Russell 2000 +16.5% YTD
S&P 500 +11.5% YTD
Dow Jones Industrial Average +11.0% YTD
Nasdaq Composite +9.3% YTD

WTI crude futures settle higher, boost energy stocks
27-Apr-21 15:25 ET
Dow +36.97 at 34018.54, Nasdaq -41.88 at 14096.92, S&P +2.51 at 4190.13

[BRIEFING.COM] The S&P 500 is up 0.1% and could close at another record high.

One last look at the S&P 500 sectors shows energy (+1.3%), industrials (+1.0%), and financials (+0.8%) firmly in the lead amid higher oil prices, curve-steepening activity, and an 11% gain in UPS (UPS 195.37, +19.56, +11.1%) following its earnings report.

The utilities (-0.6%), communication services (-0.4%), and information technology (-0.3%) sectors underperform with modest losses.

WTI crude futures settled higher by 1.6%, or $0.99, to $62.95/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 33874.85 -185.51 (-0.54%)
Nasdaq 13962.71 -119.86 (-0.85%)
SP 500 4181.17 -30.30 (-0.72%)
10-yr Note +1/32 1.629

NYSE Adv 1078 Dec 2195 Vol 1.2 bln
Nasdaq Adv 1380 Dec 2761 Vol 4.7 bln


Industry Watch
Strong: Consumer Discretionary, Utilities, Real Estate, Consumer Staples

Weak: Information Technology, Energy, Materials, Financials


Moving the Market
-- Stock market closes lower, unable to key off great earnings/economic news

-- Disappointing price action fed into the "peak growth" narrative

-- Amazon (AMZN) reported strong earnings results and provided upbeat Q2 revenue guidance





Negative session despite good earnings and economic data
30-Apr-21 16:15 ET

Dow -185.51 at 33874.85, Nasdaq -119.86 at 13962.71, S&P -30.30 at 4181.17
[BRIEFING.COM] The S&P 500 declined 0.7% on Friday, finishing the week little changed, as the market was unable to key off another round of great economic and earnings news. The Nasdaq Composite lost 0.9%, and the Dow Jones Industrial Average lost 0.5%. The Russell 2000 lagged with a 1.3% decline.

Briefly, Amazon (AMZN 3467.42, -3.89, -0.1%) posted strong Q1 results and issued upbeat Q2 revenue guidance, and personal income surged 21.1% m/m in March (Briefing.com consensus 20.5%) due to the government stimulus checks. The PCE Price Index, which is the Fed's preferred inflation gauge, was up 2.3% yr/yr in March while the core reading was only up 1.8% yr/yr.

The market wasn't impressed, but if it was, it didn't show it: AMZN shares closed lower, and seven of the 11 S&P 500 sectors closed lower. The information technology (-1.4%) and energy (-2.7%) sectors struggled at the bottom of the sector standings, with the latter pressured by weakness in Chevron (CVX 103.03, -3.87, -3.6%) despite beating EPS estimates.

Twitter (TWTR 55.22, -9.87, -15.2%) was another disappointment, as shares dropped 15% following its underwhelming earnings report.

Conversely, the consumer discretionary sector (+0.3%), where Amazon and Tesla (TSLA 709.44, +32.44, +4.8%) reside, joined the defensive-oriented utilities (+0.8%), real estate (+0.6%), and consumer staples (+0.04%) sectors in positive territory.

The relatively disappointing price action fed into the "peak growth" narrative, which says the market will find it harder to keep rallying when growth rates for the economy and earnings might not be as fast as they did coming out of the pandemic. Many expect economic growth rates to moderate in the second half of this year.

From a broader viewpoint, today was part of a two-week consolidation trend following a five-week stretch in which the S&P 500 gained roughly 8% leading into earnings season. Thus, with the peak growth narrative and sideways activity in mind, investors presumably felt uneasy about buying in front of a potential pullback.

U.S. Treasuries finished little changed, albeit with some defensive undertones in the longer-end of the curve. The 2-yr yield was unchanged at 0.16%, and the 10-yr yield decreased one basis point to 1.63%. The U.S. Dollar Index advanced 0.7% to 91.27. WTI crude futures fell 2.4%, or $1.52, to $63.51/bbl.

Reviewing Friday's economic data:

Personal income surged 21.1% month-over-month in March (Briefing.com consensus 20.5%) and personal spending rose 4.2% (Briefing.com consensus 4.0%). The PCE Price Index jumped 0.5%, as expected, leaving it up 2.3% year-over-year, while the core PCE Price Index, which excludes food and energy, increased 0.4% (Briefing.com consensus 0.3%), leaving it up 1.8% year-over-year.
The key takeaway from the report is the influence of the personal current transfer receipts. They were massive, but they will be lessening big time in coming months, which allows for some consternation pertaining to the peak growth narrative.
The final April reading for the University of Michigan Index of Consumer Sentiment increased to 88.3 (Briefing.com consensus 87.0) from the preliminary reading of 84.9. The final reading for March was 84.9.
The key takeaway from the report is the finding that an all-time record number of consumers expect the unemployment rate to decline in the year ahead, which is an important view as it relates to spending potential.
The Q1 Employment Cost Index increased 0.9% (Briefing.com consensus 0.7%), seasonally adjusted, for the three-month period ending in March 2021 after increasing 0.7% for the three-month period ending December 2020. Wages and salaries, which account for about 70% of compensation costs, rose 1.0%, while benefit costs, which make up the remainder of compensation costs, increased 0.6%.
The key takeaway from the report is that wages and salaries for civilian workers, private industry workers, and state and local government workers were down from the same period a year ago, which is a basis for why the Fed intends to remain patient with its policy stance.
The Chicago PMI increased to 72.1 in April (Briefing.com consensus 62.0) from 66.3 in March.

Looking ahead, investors will receive the ISM Manufacturing Index for April, Construction Spending for March, and the final IHS Markit Manufacturing PMI for April on Monday.

Russell 2000 +14.8% YTD
S&P 500 +11.3% YTD
Dow Jones Industrial Average +10.7% YTD
Nasdaq Composite +8.3% YTD



Crude futures retrace 2%
30-Apr-21 15:30 ET

Dow -166.52 at 33893.84, Nasdaq +108.10 at 14190.67, S&P -26.35 at 4185.12
[BRIEFING.COM] The S&P 500 is down 0.6% in a session controlled by sellers. Any recovery attempt today has been feeble.

One last look at the S&P 500 sectors shows information technology (-1.3%) and energy (-2.5%) leading the retreat, while the real estate (+0.6%), utilities (+0.4%), and consumer discretionary (+0.3%) sectors trade modestly higher.

WTI crude futures settled lower by 2.4%, or $1.52, to $63.51/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34113.23 +238.38 (0.70%)
Nasdaq 13895.15 -67.56 (-0.48%)
SP 500 4192.66 +11.49 (0.27%)
10-yr Note +2/32 1.606

NYSE Adv 2244 Dec 1036 Vol 888.5 mln
Nasdaq Adv 2215 Dec 1853 Vol 4.6 bln


Industry Watch
Strong: Energy, Materials, Health Care, Industrials

Weak: Consumer Discretionary, Communication Services, Information Technology, Real Estate


Moving the Market
-- Market closes mostly higher, but Nasdaq closes lower amid relative weakness in growth stocks

-- April ISM Manufacturing PMI misses expectations, but prices component rises to highest level since 2008

-- Various/conflicting narratives and consolidation activity





Mixed and conflicting session
03-May-21 16:15 ET

Dow +238.38 at 34113.23, Nasdaq -67.56 at 13895.15, S&P +11.49 at 4192.66
[BRIEFING.COM] The S&P 500 increased 0.3% on Monday in a session marked by various narratives and consolidation activity. The Dow Jones Industrial Average (+0.7%) and Russell 2000 (+0.5%) outpaced the benchmark index, while the Nasdaq Composite declined 0.5% despite a positive open.

To start, the ISM Manufacturing Index for April decelerated to 60.7% (Briefing.com consensus 65.3%) from 64.7% in March, supporting the "peak growth" narrative that partially explained last Friday's decline. The Prices component within the index, meanwhile, reached its highest level since 2008 at 89.6%, corroborating inflation expectations and an observation from Warren Buffett.

Neither of these narratives, however, were completely supported by the market today. For example, the cyclical energy (+2.9%), materials (+1.5%), and industrials (+1.0%) sectors were among the top performers today, reflecting growth/reopening optimism. Inflation concerns, and conversely growth optimism, were dismissed by the gains in longer-dated Treasuries.

Growth stocks underperformed, particularly those within the S&P 500 information technology (-0.2%), consumer discretionary (-0.7%), and communication services (-0.4%) sectors. The Philadelphia Semiconductor Index declined 1.2%.

Specifying Warren Buffett's observation, he said in Berkshire Hathaway's (BRK.B 279.18, +4.23, +1.5%) annual shareholder meeting over the weekend that his businesses are seeing "substantial inflation" and that they're raising prices in response to the higher costs they are incurring. On a related note, Fed Chair Powell said in a speech today that inflation remained under control.

Evidently, it was easy to cherry pick data to support certain claims while using other data to refute such claims. One could even have pointed to the negative performance in the Nasdaq as early evidence for the "sell in May, go away" mantra.

From a broader viewpoint, Monday's price action remained consistent with consolidation activity. The S&P 500 has essentially made no progress since the close on April 16.

In the Treasury market, the 10-yr yield decreased two basis points to 1.61%, and the 2-yr yield decreased one basis point to 0.15%. The U.S. Dollar Index decreased 0.4% to 90.96. WTI crude futures rose 1.5%, or $0.98, to $64.49/bbl.

Reviewing Monday's economic data:

The ISM Manufacturing Index for April decelerated to 60.7% (Briefing.com consensus 65.3%) from 64.7% in March. A number above 50.0% connotes an expansion in manufacturing activity. April marked the eleventh straight month of expansion.
The key takeaway from the report for many will be the understanding that the Prices component jumped to 89.6% from 85.9% and sits at its highest level since 2008. All 18 industries reported paying higher prices for raw materials for the fourth straight month.
Total construction spending increased by 0.2% m/m in March (Briefing.com consensus 1.6%) after declining an upwardly revised 0.6% (from 0.8%) in February. Total private construction rose 0.7% m/m while total public construction spending decreased 1.5%.
The key takeaway from the report is the ongoing strength in private residential construction spending, which is a byproduct of strong demand driven by a scarce supply of existing homes for sale.
The final IHS Market Manufacturing PMI for April checked in at 60.5%, fractionally lower from the 60.6% preliminary reading.

Looking ahead, investors will receive the Trade Balance Report for March and Factory Orders for March on Tuesday.

Russell 2000 +15.3% YTD
S&P 500 +11.6% YTD
Dow Jones Industrial Average +11.5% YTD
Nasdaq Composite +7.8% YTD



WTI crude futures settle higher, fuel energy stocks
03-May-21 15:25 ET

Dow +267.55 at 34142.40, Nasdaq -56.06 at 13906.65, S&P +15.10 at 4196.27
[BRIEFING.COM] The S&P 500 continues to trade modestly higher by 0.4% amid gains in most sectors.

One last look at the S&P 500 sectors shows energy (+2.9%), materials (+1.8%), industrials (+1.1%), health care (+1.1%), and consumer staples (+1.0%) outperforming with gains of at least 1.0%. Conversely, the consumer discretionary (-0.6%), real estate (-0.5%), communication services (-0.3%), and information technology (-0.2%) sectors lag.

WTI crude futures settled lower higher by 1.5%, or $0.98, to $64.49/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34133.03 +19.80 (0.06%)
Nasdaq 13633.54 -261.61 (-1.88%)
SP 500 4164.66 -28.00 (-0.67%)
10-yr Note +1/32 1.592
NYSE Adv 1402 Dec 1837 Vol 951.9 mln
Nasdaq Adv 1186 Dec 2207 Vol 5.8 bln

Industry Watch
Strong: Information Technology, Consumer Discretionary, Communication Services
Weak: Financials, Materials, Industrials, Energy, Health Care

Moving the Market

-- Mega-cap/growth/technology stocks closed sharply lower

-- Rotation into cyclical stocks, which helped lift the Dow

-- Treasury Secretary Yellen said interest rates may need to rise to prevent the economy from overheating

Down day for growth stocks, while Dow ekes out gain
04-May-21 16:15 ET
Dow +19.80 at 34133.03, Nasdaq -261.61 at 13633.54, S&P -28.00 at 4164.66

[BRIEFING.COM] The S&P 500 declined 0.7% on Tuesday, pressured by weakness in the mega-cap/growth/technology stocks, which disproportionately affected the Nasdaq Composite (-1.9%). The Russell 20000 declined 1.3%, while the Dow Jones Industrial closed higher by 0.1% amid a relatively upbeat finish.

From the get-go, the heavily-weighted growth stocks within the S&P 500 information technology (-1.9%), consumer discretionary (-1.2%), and communication services (-0.9%) sectors struggled, extending their underperformance from the prior day. Shares of Apple (AAPL 127.85, -4.69, -3.5%) fell 3.5%.

Money appeared to rotate into the large-cap cyclical stocks within the materials (+1.0%), financials (+0.7%), industrials (+0.4%), and energy (+0.02%) sectors. At one point, they were each trading in negative territory but seemed to draw support from an observation from Treasury Secretary Yellen.

Briefly, Ms. Yellen acknowledged in an interview with The Atlantic that interest rates may need to rise somewhat to prevent the economy from overheating, partially as a result from increased government spending. This view on the economy presumably supported the case to have exposure to cyclical stocks as reopening activity accelerates.

This view wasn't without its controversy, though, since some were confused if she meant market rates or the fed funds rate. If she meant the former, it wasn't particularly novel since many have been calling for long-term interest rates to rise with inflation expectations and economic growth. Higher rates help keep the economy in check through tighter financial conditions.

It would be remiss to not mention that growth stocks were underperforming well before the Treasury Secretary's comments on higher rates (viewed as a negative for their valuations), and that the Treasury market was behaving as a signpost for the peak growth narrative. There was no specific news that catalyzed the growth-stock selling.

The 10-yr yield, which is the benchmark for inflation/growth expectations, decreased two basis points to 1.59%. The 2-yr yield increased one basis point to 0.16%. The U.S. Dollar Index increased 0.4% to 91.27. WTI crude futures rose 1.9%, or $1.21, to $65.70/bbl.

In other developments, CVS Health (CVS 81.12, +3.43, +4.4%) reported better-than-expected earnings results and issued upside FY21 EPS guidance. President Biden said his new goal is to vaccinate 70% of U.S. adults with at least one shot by July 4. The FDA could soon approve Pfizer's (PFE 39.95, +0.12, +0.3%) COVID-19 vaccine for emergency use in children ages 12-15, according to The New York Times.

Reviewing Tuesday's economic data:

The U.S. trade deficit widened to $74.4 billion in March (Briefing.com consensus -$74.7 billion) from an upwardly revised $70.5 billion (from -$71.1 billion) in February, with exports increasing by $12.4 billion to $200.0 billion and imports increasing by $16.4 billion to $274.5 billion.
The key takeaway from the report is that both exports and imports increased sharply, which is a telltale sign of increased demand. Importantly, it was exports and imports of both industrial supplies and materials and consumer goods that paced the pickup in trade activity, speaking to the uptick in demand seen for businesses and consumers alike.
Factory orders for manufactured goods increased 1.1% m/m in March (Briefing.com consensus 0.7%) after decreasing an upwardly revised 0.5% (from -0.7%) in February. Shipments of manufactured goods were up 2.1% after declining 1.9% in February.
The key takeaway from the report is that it suggests the recovery blip in February was largely a function of extreme winter weather and some natural slowing after a long streak of gains in factory orders. The report also demonstrates that demand for manufactured goods was quick to rebound.

Looking ahead, investors will receive the ISM Non-Manufacturing Index for April, the ADP Employment Change report for April, the final IHS Markit Services PMI for April, and the weekly MBA Mortgage Applications Index on Wednesday.

Russell 2000 +13.8% YTD
Dow Jones Industrial Average +11.5% YTD
S&P 500 +10.9% YTD
Nasdaq Composite +5.8% YTD

WTI crude futures settle higher, support energy stocks
04-May-21 15:30 ET
Dow -103.33 at 34009.90, Nasdaq -332.85 at 13562.30, S&P -46.05 at 4146.61

[BRIEFING.COM] The S&P 500 is down 1.1%, while the Russell 2000 is down 1.5%.

One last look at the S&P 500 sectors shows information technology (-2.3%), consumer discretionary (-1.9%), and communication services (-1.4%) still leading the decline; conversely, the financials (+0.3%), materials (+0.6%), industrials (+0.2%), and energy (+0.2%) sectors still trade higher.

WTI crude futures settled higher by 1.9%, or $1.21, to $65.70/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34777.76 +229.23 (0.66%)
Nasdaq 13752.27 +119.39 (0.88%)
SP 500 4232.60 +30.98 (0.74%)
10-yr Note 0/32 1.566
NYSE Adv 2435 Dec 829 Vol 871.7 mln
Nasdaq Adv 2706 Dec 1360 Vol 4.3 bln

Industry Watch
Strong: Energy, Materials, Industrials, Information Technology, Real Estate
Weak: Consumer Staples

Moving the Market

-- April employment report was relatively disappointing, but investors found reasons to stay constructive on the market

-- S&P 500 and Dow closed at record highs, cyclical stocks led the advance, growth stocks benefited from dip-buying efforts

-- Nonfarm payrolls increased by just 266,000 in April (Briefing.com consensus 1,000,000)

-- 10-yr yield recovered from post-employment report drop

Market looks past relatively disappointing employment report
07-May-21 16:15 ET
Dow +229.23 at 34777.76, Nasdaq +119.39 at 13752.27, S&P +30.98 at 4232.60

[BRIEFING.COM] The S&P 500 (+0.7%) and Dow Jones Industrial Average (+0.7%) set intraday and closing record highs on Friday, as investors found reasons to look past the huge payrolls miss in the April employment report. The Nasdaq Composite (+0.9%) and Russell 2000 (+1.4%) outperformed.

Nonfarm payrolls increased by just 266,000 in April, which was well below the Briefing.com consensus of 1,000,000 and the downward revision for March. In addition, the unemployment rate was 6.1% (Briefing.com consensus 5.8%), versus 6.0% in March, and average hourly earnings increased 0.7% (Briefing.com consensus -0.1%).

After an initial shock, market participants interpreted the report to suggest at least two things: 1) the Fed will feel assured that it's still not time to start talking about tapering asset purchases, and 2) it was a temporary blip in the economic recovery as the extended unemployment benefits may have provided a disincentive for people to return to work.

Another narrative put forth by the Biden administration and some Democratic lawmakers was that the report painted the case for passing the proposed government spending plans. The reaction in the market made it clear that both growth and value investors had an interpretation they liked.

Every sector in the S&P 500 closed higher, paced by the energy (+1.9%), real estate (+1.2%), industrials (+1.1%), materials (+0.9%), and information technology (+0.8%) sectors. The consumer staples sector (+0.01%) underperformed and closed a hair above its flat line.

Besides the leadership from the cyclical stocks, growth concerns were dismissed by higher copper prices ($4.75/lb, +0.14, +3.2%) and a turnaround in the 10-yr yield, which went from 1.48% in the wake of the employment report to 1.58%, or two basis points above Thursday's settlement.

Growth-stock investors may have also used the headline jobs miss as a better reason (compared to yesterday's Merkel vaccine news) to buy the dip in the information technology sector and other beaten-down spaces. The ARK Innovation ETF (ARK 109.72, +1.38, +1.3%) increased 1.3% but ended the week down 9%.

The 2-yr yield decreased one basis point to 0.14%. The U.S. Dollar Index decreased 0.8% to 90.22. WTI crude futures increased 0.4%, or $0.25, to $64.94/bbl.

Reviewing Friday's economic data:

The April employment report was surprisingly weak, with just 266,000 jobs added to nonfarm payrolls (Briefing.com consensus 1,000,000) and downward revisions to March. April unemployment rate was 6.1% (Briefing.com consensus 5.8%), versus 6.0% in March. April average hourly earnings increased 0.7% (Briefing.com consensus -0.1%) versus a 0.1% decrease in March.
The key takeaway from the report is that net job gains were negative, excluding the leisure and hospitality industry, which added 331,000 jobs. It is a stunning slowdown from March and has ignited the argument that extended unemployment benefits have created a disincentive to look for work. In turn, it has also ignited the idea that the market has gotten ahead of itself with its recovery/reopening enthusiasm.
Consumer credit increased by $25.8 bln in March after increasing a downwardly revised $26.2 bln (from $27.6 bln) in February.
The key takeaway from the report is that it was the second straight month that the expansion in consumer credit exceeded $25 billion, underscoring the improved lending demand in a recovering economy.
Wholesale inventories increased 1.3% m/m in March (Briefing.com consensus 1.4%) following an upwardly revised 1.0% increase (from +0.6%) in February.

Investors will not receive any notable economic data on Monday.

Russell 2000 +15.0% YTD
Dow Jones Industrial Average +13.6% YTD
S&P 500 +12.7% YTD
Nasdaq Composite +6.7% YTD

Crude futures edge higher, energy stocks in the lead
07-May-21 15:25 ET
Dow +253.82 at 34802.35, Nasdaq +142.95 at 13775.83, S&P +35.80 at 4237.42

[BRIEFING.COM] The S&P 500 is trading at session highs with a 0.8% gain and is on track to close at a record high.

One last look at the S&P 500 sectors shows energy (+1.7%), industrials (+1.1%), and information technology (+0.9%) leading the advance, while the consumer staples sector (+0.1%) trails the action with a 0.1% gain.

WTI crude futures settled higher by 0.4%, or $0.25, to $64.94/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34382.13 +360.68 (1.06%)
Nasdaq 13430.01 +304.99 (2.32%)
SP 500 4173.85 +61.35 (1.49%)
10-yr Note -2/32 1.661
NYSE Adv 2666 Dec 632 Vol 851.7 mln
Nasdaq Adv 3206 Dec 768 Vol 4.0 bln

Industry Watch
Strong: Energy, Information Technology, Consumer Discretionary
Weak: Health Care, Utilities, Consumer Staples

Moving the Market

-- Stocks end week on high note as investors followed through on dip-buying mentality

-- Market overlooked soft retail sales data for April, drop in consumer sentiment for May, and higher import/export prices for April

-- Treasury market appeared unconcerned by inflation expectations

Stocks end week on a high note
14-May-21 16:15 ET
Dow +360.68 at 34382.13, Nasdaq +304.99 at 13430.01, S&P +61.35 at 4173.85

[BRIEFING.COM] The S&P 500 rose 1.5% on Friday in a steady and broad-based advance, as investors followed through on yesterday's dip-buying efforts. The Nasdaq Composite (+2.3%) and Russell 2000 (+2.5%) rose more than 2.0% while the Dow Jones Industrial Average increased 1.1%.

The stock market appeared to take its cue from the Treasury market's apparent lack of concern for inflation expectations, with buying interest fueled by a fear of missing out on further gains as the S&P 500 further distanced itself from its 50-day moving average (4064). The latter has been a level that's rewarded buyers over the past 13 months.

Every sector in the S&P 500 closed higher, advancing issues outpaced declining issues by noticeable margins at the NYSE and Nasdaq, and the speculative growth stocks joined in on the action after sitting out of yesterday's advance. The energy sector (+3.2%) was the top-performing sector in the S&P 500 while the information technology sector (+2.1%) was the most influential.

Rising inflation expectations adversely impacted consumer sentiment in May, according to the University of Michigan's Index of Consumer Sentiment, which dropped to 82.8 (Briefing.com consensus 90.2) in the preliminary reading from the final reading of 88.3 for April. On a related note, import and export prices continued to increase in April.

Typically, longer-dated Treasury yields go up, and prices go down, when economic data supports inflation expectations. Instead, the 10-yr yield decreased three basis points to 1.64% in a similar trading reaction to yesterday's hot PPI data. Conveniently, the lower rates worked in favor of the growth stocks.

The 2-yr yield decreased one basis point to 0.14%. The U.S. Dollar Index decreased 0.5% to 90.32. WTI crude futures increased 2.4%, or $1.51, to $65.33/bbl. The CBOE Volatility Index (18.81, -4.32, -18.7%) fell below 20.00.

Separately, total retail sales were flat m/m in April (Briefing.com consensus +1.8%) following an upwardly revised 10.7% increase (from 9.8%) in March. The stock marked overlooked the relatively disappointing miss due to the tough sequential comparison and expectations that consumer spending should pick up with continued reopening activity.

In earnings-based reactions, shares of Walt Disney (DIS 173.73, -4.61, -2.6%) and Coinbase (COIN 258.37, -6.73, -2.5%) closed lower following their earnings reports, while Airbnb (ABNB 141.20, +5.45, +4.0%) and DoorDash (DASH 141.07, +25.58, +22.2%) closed higher in response. DASH stood out with a 22% gain.

Reviewing Friday's economic data:

Total retail sales were flat month-over-month in April (Briefing.com consensus +1.8%) following an upwardly revised 10.7% increase (from 9.8%) in March. Excluding autos, retail sales declined 0.8% (Briefing.com consensus +1.2%) following an upwardly revised 9.0% increase (from 8.4%) in March.
The key takeaway from the report is that the "weakness" was really driven by a tough sequential comparison; moreover, the market won't be too concerned by the "miss," knowing that hiring activity is going to increase, that wages will likely increase, and that there is a huge amount of personal savings at the ready to spend in coming months.
The preliminary May reading for the University of Michigan Index of Consumer Sentiment dropped to 82.8 (Briefing.com consensus 90.2) from the final reading of 88.3 for April.
The key takeaway from the report is that consumer attitudes were adversely impacted by inflation expectations, which were captured in the highest expected year-ahead inflation rate (4.6%) and the highest expected long-term inflation rate (3.1%) in the last ten years.
Total industrial production increased 0.7% m/m in April (Briefing.com consensus 0.7%) following an upwardly revised 2.4% increase (from 1.4%) in March. The capacity utilization rate increased to 74.9% (Briefing.com consensus 75.1%) from an unchanged 74.4% in March.
The key takeaway from the report is that it suggests industrial production is running at a solid clip, although it would be stronger if not for the semiconductor supply shortage that is holding back motor vehicle production.
Import prices were up 0.7% month-over-month in April and up 0.7% as well, excluding fuel. Export prices increased 0.8% month-over-month in April and were up 0.9%, excluding agricultural exports
Business inventories increased 0.3% m/m in March (Briefing.com consensus 0.3%) following an upwardly revised 0.6% increase (from +0.5%) in February.

Looking ahead, investors will receive the Empire State Manufacturing Survey for May, the NAHB Housing Market Index for May, and Net Long-Term TIC Flows for March on Monday.

Russell 2000 +12.7% YTD
Dow Jones Industrial Average +12.3% YTD
S&P 500 +11.1% YTD
Nasdaq Composite +4.2% YTD

WTI crude futures rise and boost energy stocks
14-May-21 15:25 ET
Dow +402.36 at 34423.81, Nasdaq +315.35 at 13440.37, S&P +66.41 at 4178.91

[BRIEFING.COM] The S&P 500 is still up 1.6% on the back of gains across all of its 11 sectors. The Russell 2000 is up 2.4%.

One last look at the S&P 500 sectors shows energy (+3.1%) up 3%, followed by 2% gains in the information technology (+2.3%) and consumer discretionary (+1.9%) sectors. The health care sector (+0.5%) is lagging with a 0.5% gain.

WTI crude futures settled higher by 2.4%, or $1.51, to $65.33/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34323.05 +10.59 (0.03%)
Nasdaq 13738.02 +80.82 (0.59%)
SP 500 4195.99 +7.86 (0.19%)
10-yr Note -2/32 1.577
NYSE Adv 2228 Dec 1058 Vol 934.7 mln
Nasdaq Adv 3140 Dec 1107 Vol 4.2 bln

Industry Watch
Strong: Consumer Discretionary, Energy, Communication Services
Weak: Health Care, Consumer Staples, Information Technology

Moving the Market

-- Riskier stocks leave the blue-chips in the dust

-- Relative strength in the consumer discretionary and energy sectors

-- Resistance at the 4200 level for the S&P 500

Riskier stocks leave the blue-chips in the dust
26-May-21 16:15 ET
Dow +10.59 at 34323.05, Nasdaq +80.82 at 13738.02, S&P +7.86 at 4195.99

[BRIEFING.COM] The S&P 500 increased 0.2% on Wednesday in a lackluster session for the benchmark index. The Nasdaq Composite (+0.6%) fared slightly better, but it noticeably trailed the S&P Mid Cap 400 (+1.0%), the small-cap Russell 2000 (+2.0%), and the iShares Micro-Cap ETF (IWC 147.86, +3.99, +2.8%).

The blue-chip Dow Jones Industrial Average (+0.03%) closed relatively unchanged.

The divergence between blue-chips and riskier stocks wasn't catalyzed by anything specific, suggesting that the market remained in consolidation mode in which interest shifts from one group to another on any given day. In recent weeks, rotational activity has centered around growth versus value, except today.

There were, however, some factors that might have contributed to the muted interest in the S&P 500: missing leadership from its top-weighted technology sector (unch), resistance at the 4200 level, and a slight turnaround in the 10-yr yield, which settled one basis point higher at 1.57% after trading at 1.55% intraday.

The energy (+0.9%) and consumer discretionary (+0.9%) sectors were pockets of relative strength within the S&P 500. The health care (-0.6%) and consumer staples (-0.2%) sectors underperformed in negative territory.

Within the consumer discretionary sector, Amazon.com (AMZN 3265.16, +6.11, +0.2%) confirmed it will purchase Metro Goldwyn Mayer for $8.45 billion and that Andy Jassy will become CEO on July 5. There was also a report from Business Insider that suggested Amazon is discussing opening pharmacy retail locations using Whole Foods stores.

Retailers keyed off the positive earnings results and/or upbeat guidance from Dick's Sporting Goods (DKS 98.40, +14.23, +16.9%), Urban Outfitters (URBN 38.47, +3.51, +10.0%), and Abercrombie & Fitch (ANF 41.02, +2.97, +7.8%). The SPDR S&P Retail ETF (XRT 93.66, +2.63, +2.9%) rose 3%, further supported by a nice move in GameStop (GME 242.56, +33.13, +15.8%).

In other developments, Fed Vice Chair for Supervision Quarles (FOMC voter) said an uneven global recovery and the emergence of bottlenecks in some supply chains are two potential headwinds for the economy. Separately, CEOs from the leading financial institutions testified before the Senate Banking Committee regarding their pandemic-era policies.

The 2-yr yield was unchanged at 0.14%. The U.S. Dollar Index increased 0.5% to 90.04. WTI crude futures increased 0.2%, or $0.14, to $66.21/bbl.

Wednesday's economic data was limited to the weekly MBA Mortgage Applications Index, which decreased 4.2% following a 1.2% increase in the prior week. On Thursday, investors will receive Durable Goods Orders for April, the weekly Initial and Continuing Claims report, the second estimate for Q1 GDP, and Pending Home Sales for April.

Russell 2000 +13.9% YTD
Dow Jones Industrial Average +12.1% YTD
S&P 500 +11.7% YTD
Nasdaq Composite +6.6% YTD

Exxon confirms at least two new board members from proxy solicitor
26-May-21 15:30 ET
Dow +0.74 at 34313.20, Nasdaq +83.70 at 13740.90, S&P +6.74 at 4194.87

[BRIEFING.COM] The S&P 500 is up 0.2%, supported by relative strength in the consumer discretionary (+1.0%) and energy (+0.9%) sectors.

Within the energy sector, Exxon Mobil (XOM 58.89, +0.63, +1.1%) recently confirmed preliminary results from an election of Directors that the board will include two of Engine No. 1's nominees. Vote results for five nominees were too close to call and are still being counted.

WTI crude futures settled higher by 0.2%, or $0.14, to $66.21/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34464.64 +141.59 (0.41%)
Nasdaq 13736.30 -1.72 (-0.01%)
SP 500 4200.88 +4.89 (0.12%)
10-yr Note -2/32 1.599
NYSE Adv 2054 Dec 1195 Vol 1.9 bln
Nasdaq Adv 2762 Dec 1431 Vol 5.0 bln

Industry Watch
Strong: Financials, Industrials, Materials
Weak: Information Technology, Utilities, Consumer Staples, Health Care, Real Estate

Moving the Market

-- Republicans confirm $928 billion infrastructure counteroffer, President Biden will reportedly propose a $6 trillion budget for FY22

-- Encouraging weekly jobless claims data

-- 10-yr yield moved higher

-- Consolidation activity in large-caps and rebalancing activity into smaller stocks

Another good day for cyclical and smaller stocks
27-May-21 16:15 ET
Dow +141.59 at 34464.64, Nasdaq -1.72 at 13736.30, S&P +4.89 at 4200.88

[BRIEFING.COM] The large-cap indices closed mixed and little changed on Thursday, as investors digested the latest government-spending headlines and continued to focus their buying efforts on cyclical sectors and smaller stocks. The S&P 500 increased 0.1% and closed at the 4200 level.

The Dow Jones Industrial Average (+0.4%) slightly outperformed, while the Nasdaq Composite (-0.01%) closed fractionally lower. The Russell 2000 (+1.1%) and iShares Micro-Cap ETF (IWC 150.49, +2.63, +1.8%) rose more than 1.0% for the second straight day.

Briefly, Senate Republicans confirmed a $928 billion infrastructure counteroffer to the Biden administration's $1.7 trillion American Jobs Plan while reports indicated that President Biden will propose a $6 trillion budget for FY22, which would include both the American Jobs Plan and American Families Plan.

Both sides expressed concerns about each other's plans, but the headlines served as a reminder that additional stimulus is likely coming. This acknowledgement, coupled with an encouraging report on weekly initial jobless claims, boded well for economically-sensitive sectors and negatively for longer-dated Treasuries. The 10-yr yield rose four basis points to 1.61%.

The S&P 500 industrials (+1.4%), financials (+1.2%), and materials (+0.7%) sectors posted decent gains. On the downside, the defensive-oriented information technology (-0.5%), utilities (-0.7%), consumer staples (-0.6%), real estate (-0.2%), and health care (-0.2%) sectors closed lower.

The underperformance of the technology sector presumably had more to do with the uptick in long-term interest rates (i.e., valuation-oriented weakness), while the declines in the other sectors seemed to be a byproduct of investors preferring riskier stocks in the small-cap and micro-cap domains.

AMC Entertainment (AMC 26.52, +6.96, +35.6%) surged 36% on no news, bringing its market capitalization to about $12 billion after starting the year below $1 billion. In the mega-cap domain, NVIDIA (NVDA 619.52, -8.49, -1.4%) exceeded earnings expectations and provided upbeat guidance, but shares closed lower.

The 2-yr yield was unchanged at 0.14%. The U.S. Dollar Index declined 0.1% to 89.98. WTI crude futures increased 1.0%, or $0.65, to $66.86/bbl.

Reviewing Thursday's economic data:

Initial jobless claims for the week ending May 22 decreased by 38,000 to 406,000 (Briefing.com consensus 425,000), marking the lowest claims level since March 14, 2020. Continuing claims for the week ending May 15 decreased by 96,000 to 3.642 million.
The key takeaway from the report remains the same: initial jobless claims are still too high in absolute terms, but continue to trend in a direction that supports favorable reopening-minded views.
Durable Goods Orders for April decreased 1.3% month-over-month (Briefing.com consensus +0.8%) following an upwardly revised 1.3% increase (from +0.5%) in March. Excluding transportation, orders rose 1.0% (Briefing.com consensus +0.7%) following an upwardly revised 3.2% increase (from +1.6%) in March.
The key takeaway from the report is that it revealed solid levels of business spending despite a 6.2% decline in orders for motor vehicles and parts that was related to the semiconductor supply shortage. To wit, nondefense capital goods orders, excluding aircraft, jumped 2.3% month-over-month.
The second estimate for Q1 GDP was unchanged from the advance estimate of 6.4% (Briefing.com consensus 6.4%). The GDP Price Deflator was bumped up to 4.3% (Briefing.com consensus 4.1%) from the advance estimate of 4.1%.
The key takeaway from the report is that it is an affirmation of the strong growth that has been facilitated by massive stimulus spending and Covid vaccines that have led to increased reopening activity; however, the dated aspect of the report should curtail its influence as a market mover.
Just in, pending home sales decreased 4.4% m/m in April (Briefing.com consensus +1.5%) following a 1.9% increase in March.

Looking ahead to Friday, investors will receive Personal Income and Spending for April, the final University of Michigan Index of Consumer Sentiment for May, the Chicago PMI for May, and Advance International Trade in Goods, Retail Inventories, and Wholesale Inventories for April.

Russell 2000 +15.1% YTD
Dow Jones Industrial Average +12.6% YTD
S&P 500 +11.8% YTD
Nasdaq Composite +6.6% YTD

Risker stocks outperforming again
27-May-21 15:30 ET
Dow +113.49 at 34436.54, Nasdaq +0.49 at 13738.51, S&P +4.62 at 4200.61

[BRIEFING.COM] The S&P 500 is up 0.1% while the Russell 2000 is up 1.1% and the iShares Micro-Cap ETF (IWC 149.59, +1.73, +1.2%) is up 1.2%. This is the second straight day that "riskier" stocks are outperforming. AMC Entertainment (AMC 28.46, +8.89, +45.3%) is up 45% in a short-squeeze.

One last look at the S&P 500 sectors shows industrials (+1.4%), financials (+0.8%), and materials (+0.7%) still outperforming in negative territory, while the defensive-oriented information technology (-0.4%), consumer staples (-0.4%), utilities (-0.3%), and health care (-0.2%) sectors underperform in negative territory.

WTI crude futures settled higher by 1.0%, or $0.65, to $66.86/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34600.38 +25.07 (0.07%)
Nasdaq 13756.35 +19.85 (0.14%)
SP 500 4208.12 +6.08 (0.14%)
10-yr Note +5/32 1.591
NYSE Adv 1797 Dec 1459 Vol 1.12 bln
Nasdaq Adv 2126 Dec 2082 Vol 5.00 bln

Industry Watch
Strong: Technology, Financials, Energy, Utilities, Real Estate
Weak: Materials, Consumer Discretionary, Communication Services, Industrials

Moving the Market

Crude oil seeks sixth gain over the past eight days

Technology sector providing early support

Growth stocks outperform

Flat Finish Masks Speculative Frenzy
02-Jun-21 16:25 ET
Dow +25.07 at 34600.38, Nasdaq +19.85 at 13756.35, S&P +6.08 at 4208.12

[BRIEFING.COM] The stock market finished a quiet midweek session on a slightly higher note with the S&P 500 (+0.1%) and Nasdaq (+0.1%) settling right above their flat lines.

The quiet finish was fitting for an equally quiet trading day that saw the major averages inch higher during the first two hours of action, followed by a slow slide into the early afternoon. The S&P 500 spent the day inside a 20-point range.

Six sectors ended the day in positive territory. The energy sector (+1.7%) continued its torrid start to the week and was followed by the lightly-weighted real estate sector (+1.4%) while top-weighted technology (+0.6%) held a modest gain throughout the day, keeping the S&P 500 in the green.

The relative strength in the technology sector was owed to big components like NVIDIA (NVDA 671.13, +20.55, +3.2%), Visa (V 229.66, +3.03, +1.3%), MasterCard (MA 366.85, +7.06, +2.0%), and PayPal (PYPL 262.17, +2.90, +1.1%) while Apple (AAPL 125.06, +0.78, +0.6%) caught up to the sector as the day went on. Chipmakers kept pace with the sector, sending the PHLX Semiconductor Index higher by 0.7%.

Energy received a boost from crude oil, which rose $1.00, or 1.5%, to $68.79/bbl after a brief rally past yesterday's high. Most components of the growth-sensitive sector climbed more than 1.0% with TechnipFMC (FTI 9.89, +0.92, +10.3%) spiking more than 10.0% with no news contributing to the jump.

Given its low share price and membership in a hot sector, TechnipFMC may have benefited from the same speculative fervor that sent AMC (AMC 62.55, +30.51, +95.2%) to a fresh record high. AMC was today's most traded stock by a long shot while Bed Bath & Beyond (BBBY 44.19, +16.93, +62.1%) also enjoyed a massive rally on heavy volume.

The materials sector (-0.9%) was today's weakest performer while the remaining laggards finished with much slimmer losses.

In earnings, Zoom Video (ZM 327.11, -0.61, -0.2%) finished little changed despite beating estimates and boosting its guidance while Advance Auto (AAP 191.33, -3.32, -1.7%) fell back below its 50-day moving average (193.52) after it too beat EPS estimates and boosted its guidance.

Treasuries climbed with the 10-yr yield slipping two basis points to 1.59%.

Economic data released today was limited to the weekly MBA Mortgage and the June Beige Book.

The weekly MBA Mortgage Index fell 4.0% as the Purchase Index decreased 3.1% while the Refinance Index fell 4.6%.

The Fed's June Beige Book noted that the economy expanded at a moderate pace between April and late May, though reports of shortages became more prevalent. Employment increased at a steady pace with most Fed Districts describing the growth as modest. Many firms continued struggling to fill low-wage positions and those for skilled tradespeople. However, the shortages resulted in only moderate wage growth. Price pressures continued building with selling prices rising moderately while the Atlanta District reported price pressures in the new home market resulting from heavy investor demand.

The May ADP Employment Change report (Briefing.com consensus 675,000; prior 742,000) will be released tomorrow at 8:15 ET, followed by revised Q1 Productivity (Briefing.com consensus 5.5%; prior 5.4%), revised Q1 Labor Costs (Briefing.com consensus -0.4%; prior -0.3%), weekly Initial Claims (Briefing.com consensus 395,000; prior 406,000), and Continuing Claims (prior 3.642 mln) at 8:30 ET; final May IHS Markit Services PMI (prior 70.1) at 9:45 ET; and May ISM Non-Manufacturing Index (Briefing.com consensus 63.0%; prior 62.7%) at 10:00 ET.

Russell 2000 +16.4% YTD
Dow Jones Industrial Average +13.1% YTD
S&P 500 +12.0% YTD
Nasdaq Composite +6.7% YTD

[ReturntoSender]

Market Snapshot

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

Dow 34577.37 -208.98 (-0.60%)
Nasdaq 14663.65 +24.32 (0.17%)
SP 500 4343.54 -8.80 (-0.20%)
10-yr Note +29/32 1.358
NYSE Adv 1174 Dec 2097 Vol 1.0 bln
Nasdaq Adv 1407 Dec 2879 Vol 4.4 bln

Industry Watch
Strong: Information Technology, Consumer Discretionary, Communication Services
Weak: Energy, Financials, Materials, Industrials

Moving the Market

-- Cyclical/value stocks lag, while growth stocks/mega-caps outperform amid peak growth concerns

-- 10-yr yield slips below 1.40%

-- Softer-than-expected June ISM Non-Manufacturing Index, Delta variant concerns

Broader market cools down while Nasdaq closes at record high
06-Jul-21 16:20 ET
Dow -208.98 at 34577.37, Nasdaq +24.32 at 14663.65, S&P -8.80 at 4343.54

[BRIEFING.COM] The S&P 500 declined 0.2% on Tuesday in an uneven session, snapping a streak of seven straight record closes. The benchmark index opened at a marginal all-time high, then dipped as much as 0.9% into negative territory before cutting its losses in the afternoon.

The Nasdaq Composite (+0.2%) set intraday and closing record highs with a modest gain, while the Dow Jones Industrial Average (-0.6%) and Russell 2000 (-1.4%) underperformed but closed off their lows. Declining issues outpaced advancing issues by roughly a 2:1 margin at the NYSE and Nasdaq.

Peak growth concerns were attributed to the broader decline, as the June ISM Manufacturing Index decelerated to 60.1% (Briefing.com consensus 63.0%) from a record-high 64.0% in May and a study out of Israel suggested that Pfizer's (PFE 39.27, -0.46, -1.2%) COVID-19 vaccine was less effective in preventing contraction of the Delta variant versus previous strains.

These growth concerns were manifested in some rotation out of value and into growth stocks; the sharp declines in the cyclical S&P 500 energy (-3.2%), financials (-1.6%), materials (-1.4%), and industrials (-0.9%) sectors; weaker oil ($73.42, -1.83, -2.4%) and copper ($4.25/lb, -0.03, -0.5%) prices; and a six-basis-point decline in the 10-yr yield to 1.37%.

The information technology (+0.4%) and consumer discretionary (+0.8%) sectors closed higher, largely due to sizable gains in Apple (AAPL 142.02, +2.06, +1.5%) and Amazon.com (AMZN 3675.74, +164.76, +4.7%). The real estate (+0.9%) and utilities (+0.4%) sectors also closed higher, benefiting from the lower rates.

The 4.7% move in Amazon shares was noteworthy, coinciding on the first trading day of Andy Jassy as CEO and amid news the Pentagon canceled the $10 billion JEDI cloud award that was originally given to Microsoft (MSFT 27.66, +0.01, unch).

Regarding the late-day comeback effort, it seems plausible that investors digested the news flow and decided to buy the dip in part due to a recognition that the market's record-setting streak happened despite the peak growth narrative. Others viewed today as a natural cool-down session for the market.

In other interesting developments, OPEC+ was unable to agree to further production increases, which temporarily boosted WTI futures to a six-year high, and China's DiDi Global (DIDI 12.49, -3.04, -19.6%) dropped 20% at the NYSE after its app was removed from app stores in China for violation of laws and regulation.

The 2-yr yield decreased three basis points to 0.21%. The U.S. Dollar Index increased 0.4% to 92.54.

Reviewing Tuesday's economic data, which featured the ISM Non-Manufacturing Index for June:

The ISM Non-Manufacturing Index for June decreased to 60.1% (Briefing.com consensus 63.0%) from a record-high 64.0% in May. The dividing line between expansion and contraction is 50.0%. The June reading marks the thirteenth straight month of growth for the services sector.
The key takeaway from the report is the understanding that services sector activity is still running at a fast pace, although it has moderated since May with some of the slowdown driven by services companies experiencing difficulties with employee turnover and finding qualified candidates.
The final reading for the June IHS Markit Services PMI checked in at 64.6, which was slightly lower from the preliminary reading of 64.8.

Looking ahead, investors will receive the weekly MBA Mortgage Applications Index, the JOLTS report for May, and the FOMC Minutes from the June meeting on Wednesday.

S&P 500 +15.6% YTD
Russell 2000 +15.2% YTD
Nasdaq Composite +13.8% YTD
Dow Jones Industrial Average +13.0% YTD

Crude futures settle sharply lower after reaching six-year high
06-Jul-21 15:25 ET
Dow -214.04 at 34572.31, Nasdaq +19.12 at 14658.45, S&P -10.21 at 4342.13

[BRIEFING.COM] The S&P 500 is down just 0.2% as investors continue to buy the dip. The Russell 2000 is down 1.5% after being down more than 2.0% earlier today.

One last look at the sector performances shows energy (-2.9%), financials (-1.5%), materials (-1.5%), and industrials (-1.0%) still struggling with sharp losses, while the consumer discretionary (+0.8%), information technology (+0.3%), real estate (+0.2%), and utilities (+0.1%) sectors trade higher.

WTI crude futures settled lower by 2.4%, or $1.83, to $73.42/bbl. Crude reached a six-year high above $76/bbl after OPEC+ was unable to reach an agreement for increased production.

[ReturntoSender]

Market Snapshot

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

Dow 34421.93 -259.86 (-0.75%)
Nasdaq 14559.79 -105.28 (-0.72%)
SP 500 4320.82 -37.31 (-0.86%)
10-yr Note +24/32 1.297
NYSE Adv 778 Dec 2432 Vol 972.1 mln
Nasdaq Adv 1430 Dec 2571 Vol 4.5 bln

Industry Watch
Strong: Consumer Discretionary
Weak: Financials, Materials, Industrials

Moving the Market

-- General de-risking and profit-taking efforts

-- Reported growth concerns fueled in part after Japan extended state of emergency through the Olympics

-- 10-yr yield touched 1.25% early in the morning

Investors take profits as headlines fuel peak growth narrative
08-Jul-21 16:20 ET
Dow -259.86 at 34421.93, Nasdaq -105.28 at 14559.79, S&P -37.31 at 4320.82

[BRIEFING.COM] The S&P 500 (-0.9%) and Nasdaq Composite (-0.7%) pulled back from record territory on Thursday, as investors mainly took profits amid pestering peak growth concerns. The Dow Jones Industrial Average declined 0.8% while the Russell 2000 declined 0.9% after it led the major indices lower with a 2.7% intraday decline.

The negative bias was formed overnight, reportedly because Japan extended its coronavirus state of emergency through Aug. 22 (it later confirmed that spectators will be banned at the Olympics), the People's Bank of China signaled it will cut the required reserve ratio for banks, and the 10-yr yield traded as low as 1.25%.

These developments harked on the oft-repeated narrative that growth rates are apt to slow down, partially because the Delta variant is hurting foreign economies and could further strain parts of the labor market. On a related note, weekly initial claims were higher than expected at 373,000 (Briefing.com consensus 350,000).

My midday, though, the Russell 2000 had returned to its flat line, the large-cap indices had recouped more than half of their losses, and the 10-yr yield nearly returned to its unchanged mark. This comeback effort unfortunately fell short, feeding into the narrative that the market was running on tired legs and due for a pullback.

All 11 S&P 500 sectors closed lower, led by the cyclical financials (-2.0%), industrials (-1.4%), and materials (-1.4%) sectors. The consumer discretionary sector (-0.1%) declined just 0.1% due to strength in Amazon.com (AMZN 3731.41, +34.83, +0.9%) and Tesla (TSLA 652.81, +8.16, +1.3%). Growth stocks in general were weak, though.

Interestingly, oil prices ($72.98/bbl, +0.80, +1.1%) did stage a successful comeback, rising 1% after being down 1.9% intraday. The turnaround was aided by data showing the seventh-straight weekly inventory draw out of the EIA.

The 10-yr yield and 2-yr yield both settled lower by three basis points to 1.29% and 0.19%, respectively. The U.S. Dollar Index decreased 0.3% to 92.37.

All in all, the growth-oriented headlines and the unnerving decline in the 10-yr yield presumably made it hard to justify another positive day. With growth/inflation rates in mind, the market will surely be paying attention to the China CPI and PPI data for June and the industrial production reports for the UK, Italy, and France tomorrow.

Reviewing Thursday's economic data:

For the week ending July 3, initial claims increased 2,000 to 373,000 (Briefing.com consensus 350,000). Continuing claims for the week ending June 26 decreased by 145,000 to 3.339 million -- the lowest since March 21, 2020.
The key takeaway from the report is in the recognition that the four-week moving average for initial claims (394,500) is at its lowest level since March 14, 2020. That's still too high, yet the trend remains encouraging.
Consumer credit increased by $35.3 bln in May (Briefing.com consensus $19.0B) after increasing an upwardly revised $20.0 bln (from $18.6 bln) in April. The key takeaway from the report is that the expansion in consumer credit in May was the largest since December 2010.

Looking ahead, investors will receive Wholesale Inventories for May on Friday.

S&P 500 +15.0% YTD
Russell 2000 +13.0% YTD
Nasdaq Composite +13.0% YTD
Dow Jones Industrial Average +12.5% YTD

Crude futures rise on seventh-straight inventory draw
08-Jul-21 15:30 ET
Dow -347.66 at 34334.13, Nasdaq -117.49 at 14547.58, S&P -42.83 at 4315.30

[BRIEFING.COM] The S&P 500 is down 1.0% amid losses in all 11 of its sectors.

The financials sector remains the weakest link with a 2.1% decline amid the lower Treasury yields, while the consumer discretionary sector is down just 0.1% due to strength in Amazon.com (AMZN 3736.68, +40.23, +1.1%). Amazon is breaking out to fresh all-time highs.

WTI crude futures settled higher by 1.1%, or $0.80, to $72.98/bbl. The EIA reported its seventh straight weekly inventory draw, and of course, it was larger than expected.

[ReturntoSender]

Market Snapshot

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

Dow 34870.16 +448.23 (1.30%)
Nasdaq 14701.92 +142.13 (0.98%)
SP 500 4369.55 +48.73 (1.13%)
10-yr Note -27/32 1.355
NYSE Adv 2572 Dec 682 Vol 816.0 mln
Nasdaq Adv 3229 Dec 981 Vol 3.7 bln

Industry Watch
Strong: Financials, Industrials, Materials, Energy
Weak: Utilities

Moving the Market

-- Stocks and Treasury yields staged strong reversals from yesterday

-- S&P 500, Dow, and Nasdaq close at record highs

-- Value/cyclical stocks led broad-based advance

-- 10-yr yield settled higher at 1.36%

S&P 500 and Nasdaq reverse to record highs
09-Jul-21 16:15 ET
Dow +448.23 at 34870.16, Nasdaq +142.13 at 14701.92, S&P +48.73 at 4369.55

[BRIEFING.COM] U.S. stocks and Treasury yields staged a strong reversal on Friday, with the S&P 500 rallying 1.1% to intraday and closing record highs and the 10-yr yield rebounding seven basis points to 1.36%. The Nasdaq Composite (+1.0%) and Dow Jones Industrial Average (+1.3%) also closed at record highs while the Russell 2000 (+2.0%) outperformed.

Today's positive price action was largely a continuation of yesterday's trade that saw the 10-yr yield bottom at 1.25% early in Thursday's session and stocks close off their intraday lows. Today, value/cyclical stocks led the broad-based advance, feeding into the view that growth concerns have been a bit overstated.

All 11 S&P 500 sectors finished in positive territory, 28 of the 30 Dow components closed higher, and advancing issues outpaced declining issues by a 4:1 margin at the NYSE and a 3:1 margin at the Nasdaq.

The financials (+2.9%), materials (+2.0%), energy (+2.0%), and industrials (+1.6%) sectors advanced the most after entering the session as weekly laggards. Bank stocks and energy stocks received additional support from a wider 2s10s spread in the Treasury market and higher oil prices ($74.56/bbl, +1.58, +2.2%).

Apple (AAPL 145.11, +1.87, +1.3%) was arguably one of the most influential stocks today given its 1.3% gain and $2.42 trillion market capitalization. The stock opened little changed like the Nasdaq but steadily crept higher throughout the day and set its first all-time high since January.

Supportive news included Pfizer (PFE 39.63, +0.38, +1.0%) announcing that it's working on a booster COVID-19 shot to target the Delta variant, and San Francisco Fed President Daly (FOMC voter) suggesting the Fed should be cautious about withdrawing its policy support due to the risks posed by the Delta variant.

The bullish tone was further corroborated by softness in the U.S. dollar (91.10, -0.32, -0.4%) and Japanese yen (-0.3%), which are typically viewed as safe-haven currencies, and separately by a weaker CBOE Volatility Index (16.18, -2.82, -14.8%). The latter represented a decline in the hedging premium.

The 2-yr yield increased three basis points to 0.22%.

Friday's economic data was limited to Wholesale Inventories for May, which increased 1.3% m/m in May (Briefing.com consensus 1.1%) following a revised 1.1% increase (from +0.8%) in April. Investors will not receive any notable economic data on Monday.

S&P 500 +16.3% YTD
Russell 2000 +15.5% YTD
Nasdaq Composite +14.1% YTD
Dow Jones Industrial Average +13.9% YTD

[Edit: the comment has been reflected to include that the Dow closed at a record high, which was omitted in the previous version]
Crude futures settle higher
09-Jul-21 15:30 ET
Dow +457.47 at 34879.40, Nasdaq +132.97 at 14692.76, S&P +47.67 at 4368.49

[BRIEFING.COM] The S&P 500 is trading at session highs with a 1.1% gain.

One last look at the S&P 500 sectors shows financials (+2.9%), energy (+2.1%), and materials (+2.0%) still leading the advance with gains of at least 2.0% while the utilities sector (+0.1%) has turned positive with a 0.1% gain.

WTI crude futures settled higher by 2.2%, or $1.58, to $74.56/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34996.18 +126.02 (0.36%)
Nasdaq 14733.24 +31.32 (0.21%)
SP 500 4384.63 +15.08 (0.35%)
10-yr Note 0/32 1.357
NYSE Adv 1880 Dec 1349 Vol 786.5 mln
Nasdaq Adv 2282 Dec 2022 Vol 3.8 bln

Industry Watch
Strong: Financials, Materials, Health Care, Real Estate
Weak: Consumer Staples, Industrials, Information Technology

Moving the Market

-- S&P 500 sets another all-time high with small gain

-- Financials rise ahead of Q2 earnings

-- Wait-and-see for busy week of events, including earnings and econ data

-- Small-caps/mid-caps underperform

Another trio of record closes in front of bank earnings, CPI data
12-Jul-21 16:20 ET
Dow +126.02 at 34996.18, Nasdaq +31.32 at 14733.24, S&P +15.08 at 4384.63

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.2%), and Dow Jones Industrial Average (+0.4%) closed at record highs on Monday, tallying modest gains as investors remained committed to the market ahead of a busy week of events. The S&P 500 also set an all-time intraday high while the Russell 2000 increased just 0.1%.

The financials sector (+1.0%) was the most influential group today, propped up by some enthusiasm surrounding the Q2 earnings reporting period, which will be kicked off by JPMorgan Chase (JPM 158.00, +2.23, +1.4%) and Goldman Sachs (GS 380.50, +8.74, +2.4%) tomorrow morning. A turnaround in Treasury yields also helped.

The 10-yr yield settled one basis point higher at 1.36% after touching 1.33% overnight, and the 2-yr yield settled one basis point higher at 0.22% after touching 0.20% overnight. On a related note, the $58 bln 3-yr note auction was met with lukewarm demand while the $38 bln 10-yr auction received strong interest. The U.S. Dollar Index increased 0.1% to 92.23.

The communication services (+0.9%) and real estate (+0.9%) sectors followed closely behind with decent gains, with the former supported by Walt Disney (DIS 184.38, +7.34, +4.2%) after its "Black Widow" movie raked in more than $215 million globally over the weekend. Disney is also reportedly aiming to increase ESPN+ subscription costs.

Today's lone holdouts were the consumer staples (-0.2%) and energy (-0.1%) sectors while the information technology sector (+0.04%) was held back by Apple (AAPL 144.50, -0.61, -0.4%) and Microsoft (MSFT 277.32, -0.62, -0.2%). Evidently, no sector gained or lost more than 1.0%.

Besides earnings, investors may have restrained conviction for the release of the June CPI report tomorrow. For what it's worth, PPI data for June will be released on Wednesday followed by Retail Sales data for June on Friday. Fed Chair Powell will also testify before Congress in his semiannual report on monetary policy, starting Wednesday.

In other corporate news, Broadcom (AVGO 485.75, +5.57, +1.2%) was a technology winner amid reports that it's looking to acquire SAS Institute for $15-20 bln. Chevron (CVX 104.28, +0.21, +0.2%) bucked the negative trend in the energy space after the stock was initiated with an Outperform rating at BMO Capital Markets.

Energy stocks in general were clipped by lower oil prices (74.10/bbl, -0.46, -0.6%), which some attributed to demand concerns because of the Delta Covid variant.

Investors did not receive any notable economic data on Monday. Looking ahead, the Consumer Price Index for June, the Treasury Budget for June, and the NFIB Small Business Optimism Index for June will be released on Tuesday.

S&P 500 +16.7% YTD
Russell 2000 +15.5% YTD
Nasdaq Composite +14.3% YTD
Dow Jones Industrial Average +14.3% YTD

Crude futures settle lower
12-Jul-21 15:30 ET
Dow +135.79 at 35005.95, Nasdaq +26.09 at 14728.01, S&P +15.46 at 4385.01

[BRIEFING.COM] The S&P 500 is trading at session highs with a 0.4% gain. Ten of its 11 sectors are now trading in positive territory.

The financials sector (+1.1%) continues to lead the action with a 1.1% gain ahead of Q2 earnings while the communication services (+0.9%) and real estate (+0.8%) sectors follow closely behind. The consumer staples sector (-0.3%) is the lone holdout.

WTI crude futures settled lower by 0.6%, or $0.46, to $74.10/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34888.79 -107.39 (-0.31%)
Nasdaq 14677.65 -55.59 (-0.38%)
SP 500 4369.21 -15.42 (-0.35%)
10-yr Note -26/32 1.414
NYSE Adv 838 Dec 2413 Vol 780.0 mln
Nasdaq Adv 1050 Dec 3212 Vol 4.5 bln

Industry Watch
Strong: Information Technology, Communication Services
Weak: Financials, Energy, Materials, Industrials, Consumer Discretionary

Moving the Market

-- Relatively weak bond auction takes market lower, Treasury yields now trade higher

-- June CPI report shows another hotter than expected rise in consumer prices

-- JPMorgan Chase (JPM) and Goldman Sachs (GS) trade lower despite beating top and bottom-line estimates

Large-cap indices ease back from record territory
13-Jul-21 16:20 ET
Dow -107.39 at 34888.79, Nasdaq -55.59 at 14677.65, S&P -15.42 at 4369.21

[BRIEFING.COM] The S&P 500 (-0.4%), Nasdaq Composite (-0.4%), and Dow Jones Industrial Average (-0.3%) recorded modest losses on Tuesday, easing back from record territory as investors assessed hot CPI data for June, negative reactions to bank earnings, and a relatively weak 30-yr bond auction. The Russell 2000 fell 1.9%.

To start, total CPI rose 0.9% m/m in June (Briefing.com consensus 0.5%) and core CPI, which excludes food and energy, also rose 0.9% (Briefing.com consensus 0.5%). On a year-over-year basis, they were running noticeably hot at 5.4% and 4.5%, respectively. The yr/yr increase in core CPI was the largest since November 1991.

Interestingly, the Treasury market barely reacted to the inflation data, and the S&P 500 and Nasdaq were able to set record intraday highs largely due to leadership from mega-caps like Apple (AAPL 145.64, +1.14, +0.8%) and Microsoft (MSFT 280.98, +3.66, +1.3%). The mega-cap strength overshadowed an advancing/declining line that easily favored declining issues.

It wasn't until the results of a weaker-than-average $24 bln 30-yr bond auction were released at 1:00 p.m. ET that Treasury yields spiked, which ultimately took some wind out of the growth stocks. The 10-yr yield settled higher by five basis points to 1.42% while the 2-yr yield increased three basis points to 0.25%.

Declining issues widened their advantage over advancing issues to a 3:1 margin (versus 2:1 before the bond auction results). The S&P 500 consumer discretionary (-1.2%), financials (-1.1%), and real estate (-1.3%) sectors lost more than 1.0% while information technology (+0.4%) was the only sector that closed higher.

The financials sector was unable to key off the higher Treasury yields, as investor sentiment remained hampered by disappointing reactions to better-than-expected earnings results from JPMorgan Chase (JPM 155.65, -2.35, -1.5%) and Goldman Sachs (GS 375.89, -4.52, -1.2%).

PepsiCo (PEP 152.96, +3.46, +2.3%) was an earnings standout, additionally supported by upside FY21 EPS guidance. Boeing (BA 228.20, -10.09, -4.2%), meanwhile, fell 4% after disclosing it will slow production of the 787 Dreamliner as it works to resolve a new issue surrounding the plane.

Given the finicky price action in Treasuries, the market will look to see what Fed Chair Powell says tomorrow in his semiannual testimony on monetary policy before Congress. San Francisco Fed President Daly (FOMC voter) told CNBC that the inflation spikes have been expected and the Fed is in a good position to taper asset purchases as soon as later this year.

WTI crude futures settled higher by 1.5%, or $1.14, to $75.24/bbl. The U.S. Dollar Index advanced 0.6% to 92.78.

Reviewing Tuesday's economic data, which featured the Consumer Price Index for June:

Total CPI increased 0.9% month-over-month (Briefing.com consensus +0.5%) -- the largest one-month increase since June 2008 -- and core CPI, which excludes food and energy, also increased 0.9% (Briefing.com consensus 0.5%). On a year-over basis, total CPI is up 5.4% -- the largest increase since August 2008 -- and core CPI is up 4.5%, which is the largest increase since November 1991.
The key takeaway from the report is that the price increases in June were broad based, featuring a 10.5% increase in the index for used cars and trucks, a 0.8% increase in the food at home index, a 2.5% increase in the gasoline index, and a 0.5% increase in the household index. That should put the Fed's "transitory inflation" narrative to the test, particularly with total CPI running at an annualized rate of 7.2% over the last six months.
The Treasury Budget for June showed a $174.2 bln deficit, versus an $864.1 bln deficit in the same period a year ago. The budget data is not seasonally adjusted, so the June deficit can't be compared to the May deficit of $131.9 bln. June marked the 21st consecutive month that the Treasury has seen a budget deficit.
The fiscal year-to-date budget deficit is $2.24 trln versus -$2.74 trln for the same period a year ago. The budget deficit over the last 12 months is $2.63 trln versus -$3.31 trln in May.
The NFIB Small Business Optimism Index for June increased to 102.5 from 99.6 in May.

Looking ahead, investors will receive the Producer Price Index for June, the Fed's Beige Book for July, and the weekly MBA Mortgage Applications Index on Wednesday.

S&P 500 +16.3% YTD
Dow Jones Industrial Average +14.0% YTD
Nasdaq Composite +13.9% YTD
Russell 2000 +13.4% YTD

Crude futures settle higher
13-Jul-21 15:25 ET
Dow -11.90 at 34984.28, Nasdaq -39.63 at 14693.61, S&P -15.13 at 4369.50

[BRIEFING.COM] The S&P 500 is trading near session lows with a 0.3% decline. The Russell 2000 continues to bleed with a 1.4% decline, extending its monthly loss to 2.7%.

One last look at the sector performances shows consumer discretionary (-1.1%), materials (-1.1%), utilities (-1.1%), and real estate (-1.6%) down more than 1.0% while the information technology sector (+0.5%) remains in positive territory. The communication services sector trades flat.

WTI crude futures settled higher by 1.5%, or $1.14, to $75.24/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34987.02 +53.79 (0.15%)
Nasdaq 14543.13 -101.82 (-0.70%)
SP 500 4360.03 -14.27 (-0.33%)
10-yr Note +2/32 1.322
NYSE Adv 1242 Dec 1971 Vol 859.0 mln
Nasdaq Adv 1703 Dec 2473 Vol 4.4 bln

Industry Watch
Strong: Utilities, Consumer Staples, Financials, Industrials
Weak: Information Technology, Communication Services, Consumer Discretionary, Energy

Moving the Market

-- Mega-caps weigh on market, even as the 10-yr yield declined to 1.30%

-- Weakness in semiconductor space after Taiwan Semi (TSM) missed EPS estimates

-- Mixed economic data, mixed earnings reactions

Mega-caps weigh on market, even as yields slip
15-Jul-21 16:20 ET
Dow +53.79 at 34987.02, Nasdaq -101.82 at 14543.13, S&P -14.27 at 4360.03

[BRIEFING.COM] The S&P 500 decreased 0.3% on Thursday in a mixed session, although it did battle back from a 0.8% intraday decline. The Nasdaq Composite (-0.7%) and Russell 2000 (-0.6%) underperformed the benchmark index, while the Dow Jones Industrial Average increased 0.2%.

Declining issues had a modest advantage over advancing issues at the NYSE and Nasdaq, but the most influential losses arguably came from the top seven of the eight stocks in the S&P 500, which comprise 25% of its market capitalization.

NVIDIA (NVDA 758.65, -35.01, -4.4%) was an eye sore with its 4% decline amid some disappointment surrounding an EPS miss from Taiwan Semi (TSM 117.53, -6.86, -5.5%). The Philadelphia Semiconductor Index fell 2.2%.

Aside from NVIDIA, the losses weren't catalyzed by any specific news other than what seemed to be an awareness that the mega-caps have had a good run and were probably due for a breather. Entering the session, the Vanguard Mega Cap Growth ETF (MGK 237.32, -1.24, -0.5%) was up 14.5% since May 12 while the Invesco S&P 500 Equal Weight ETF (RSP 150.43, -0.40, -0.3%) was up just 3.3%.

The S&P 500 information technology (-0.8%), consumer discretionary (-0.6%), and communication services (-0.5%) sectors, which contain the mega-caps, were among the worst-performing sectors today. The energy sector (-1.4%) was the weakest link, though, with a 1.4% decline amid lower oil prices ($71.66/bbl, -1.41, -1.9%).

On the upside, there was a mix of cyclical/counter-cyclical winners. The utilities (+1.2%), consumer staples (+0.4%), financials (+0.4%), industrials (+0.2%), and real estate (+0.1%) sectors closed higher. The utilities sector was the only one that gained more than 0.5%.

Interestingly, the 10-yr yield settled lower by six basis points to 1.30% amid reported growth concerns, yet the large growth stocks still struggled and bank stocks rebounded from recent losses. The 2-yr yield increased one basis point to 0.23%. The U.S. Dollar Index increased 0.2% to 92.57.

U.S. Bancorp (USB 58.82, +1.83, +3.2%) was one of the bank outperformers after beating top and bottom-line estimates while Morgan Stanley (MS 92.63, +0.17, +0.2%) closed slightly higher following its quarterly results. Dow component UnitedHealth (UNH 420.05, +5.31, +1.3%) was another earnings standout.

In other developments, weekly initial claims reached a post-pandemic low at 360,000 (Briefing.com consensus 360,000), Fed Chair Powell concluded his semiannual congressional testimony on monetary policy without any surprises, and Treasury Secretary Yellen told NPR she doesn't think high inflation rates will continue in the medium term.

Reviewing Thursday's economic data:

Initial jobless claims for the week ending July 10 decreased by 26,000 to 360,000 (Briefing.com consensus 360,000) -- the lowest level since March 14, 2020. Continuing claims for the week ending July 3 fell by 126,000 to 3.241 million -- the lowest level since March 21, 2020.
The key takeaway is that the improving claims levels are consistent with an improving economy that is requiring less layoff, and more hiring, activity.
Total industrial production increased 0.4% in June (Briefing.com consensus 0.7%) following a downwardly revised 0.7% increase in May (from 0.8%). The capacity utilization rate increased to 75.4% (Briefing.com consensus 75.6%) from a downwardly revised 75.1% in May (from 75.2%).
The key takeaway from the report is that it reflected the ongoing constraints the auto industry is facing due to the semiconductor shortage and the impact that is having on overall production.
Import prices increased 1.0% in June, while import prices excluding oil increased 0.7%. Export prices increased 1.2% in June, while export prices excluding agriculture increased 1.1%.
The Empire State Manufacturing Survey jumped to 43.0 in July (Briefing.com consensus 18.0) from 17.4 in June.
The Philadelphia Fed Index for July decreased to 21.9 (Briefing.com consensus 28.3) from 30.7 in June.

Looking ahead, investors will receive Retail Sales for June, the preliminary University of Michigan Index of Consumer Sentiment for July, Business Inventories for May, and Net Long-Term TIC Flows for May on Friday.

S&P 500 +16.1% YTD
Dow Jones Industrial Average +14.3% YTD
Nasdaq Composite +12.8% YTD
Russell 2000 +10.9% YTD

Crude futures settle lower, weigh on energy stocks
15-Jul-21 15:30 ET
Dow +39.71 at 34972.94, Nasdaq -126.27 at 14518.68, S&P -17.22 at 4357.08

[BRIEFING.COM] The S&P 500 is down 0.4% while the Dow has returned into positive territory with a 0.1% gain.

Looking at the S&P 500 sectors shows six sectors trading higher and five sectors trading lower. The energy sector (-1.5%) lags with a 1.5% decline, but the information technology sector (-1.0%) is the most influential laggard. The utilities sector (+1.0%) leads with a 1% gain.

WTI crude futures settled lower by 1.9%, or $1.41, to $71.66/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34687.85 -299.17 (-0.86%)
Nasdaq 14427.23 -115.90 (-0.80%)
SP 500 4327.16 -32.87 (-0.75%)
10-yr Note -22/32 1.300
NYSE Adv 957 Dec 2306 Vol 961.0 mln
Nasdaq Adv 1327 Dec 2913 Vol 4.0 bln

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

Moving the Market

-- Market fades opening gains and closes lower

-- Consumer sentiment declines in July, according to prelim UofM Index

-- June retail sales report was better than expected

-- Relative weakness in cyclical stocks

Market fades positive start and closes lower
16-Jul-21 16:20 ET
Dow -299.17 at 34687.85, Nasdaq -115.90 at 14427.23, S&P -32.87 at 4327.16

[BRIEFING.COM] The S&P 500 fell 0.8% on Friday, as the market faded a positive start driven by the cyclical stocks and reverted to a defensive posture. The Nasdaq Composite (-0.8%), Dow Jones Industrial Average (-0.9%), and Russell 2000 (-1.2%) struggled alongside the benchmark index.

The opening gains ranged from 0.3% (Dow) to 0.9% (Russell 2000) after data showed total retail sales increase 0.6% m/m in June (Briefing.com consensus -0.6%). The Dow also came within two points of its all-time high.

Cyclical stocks quickly turned around, as did small-caps, on no specific catalyst, although a disappointing read on consumer sentiment appeared to reinforce the selling. The preliminary July reading for the University of Michigan Index of Consumer Sentiment slipped to 80.8 (Briefing.com consensus 86.3) from 85.5 in June.

The S&P 500 energy (-2.8%), materials (-1.5%), financials (-1.3%), and consumer discretionary (-1.3%) sectors piled on the losses into the close while the defensive-oriented utilities (+1.0%), consumer staples (+0.2%), real estate (+0.1%), and health care (+0.2%) sectors closed higher.

The Treasury market, meanwhile, continued to pressure the bank stocks -- the SPDR S&P Bank ETF (KBE 48.90, -1.26, -2.5%) dropped 2.5% -- while working in favor of those defensive sectors with relatively high dividend yields.

The 10-yr yield settled unchanged at 1.30%, even as consumers' expectations on inflation kept rising, according to the consumer sentiment report. The 10-yr yield touched 1.34% following the retail sales report. This remained well below the dividend yields of the real estate, utilities, and consumer staples sectors.

Charles Schwab (SCHW 68.89, -1.66, -2.4%) didn't help its own cause with a mixed earnings report, but State Street (STT 84.35, +2.38, +2.9%) did with better-than-expected quarterly results. Dow Inc. (DOW 60.01, -1.90, -3.1%) was downgraded to Underperform from Neutral at BofA Securities.

Separately, Moderna (MRNA 286.4., +26.75, +10.3%) jumped 10% on news it will join the S&P 500 on July 21. Intel (INTC 54.97, -0.84, -1.5%) is reportedly in talks to acquire GlobalFoundries for $30 billion.

The 2-yr yield was unchanged at 0.23%. The U.S. Dollar Index increased 0.1% to 92.71. WTI crude futures increased 0.1%, or $0.10, to $71.76/bbl.

Reviewing Friday's economic data, which featured the Retail Sales report for June:

Total retail sales, weighed down by a 2.0% decline in motor vehicle and parts dealers sales, still increased 0.6% month-over-month (Briefing.com consensus -0.6%) following a downwardly revised 1.7% decline (from -1.3%) in May. Excluding autos, retail sales jumped 1.3% month-over-month (Briefing.com consensus +0.3%) following a downwardly revised 0.9% decline (from -0.7%) in May.
The key takeaway from the report is the stronger-than-expected read for the ex-auto figure, which reflects the unleashing of pent-up demand on the part of consumers flush with cash and a desire to leave their house.
The preliminary July reading for the University of Michigan Index of Consumer Sentiment slipped to 80.8 (Briefing.com consensus 86.3) from the final reading of 85.5 for June. This is the lowest reading since February and compares to the 99.3 reading seen in July 2020.
The key takeaway from the report is the understanding that consumer sentiment declined as consumers' inflation expectations rose.
Business inventories increased 0.5% m/m in May (Briefing.com consensus +0.4%) following an upwardly revised 0.1% increase (from -0.2%) in April.

Looking ahead, investors will receive the NAHB Housing Market Index for July on Monday.

S&P 500 +15.2% YTD
Dow Jones Industrial Average +13.3% YTD
Nasdaq Composite +11.9% YTD
Russell 2000 +9.5% YTD

Energy stocks selling off despite muted change in oil prices
16-Jul-21 15:30 ET
Dow -273.08 at 34713.94, Nasdaq -99.78 at 14443.35, S&P -28.26 at 4331.77

[BRIEFING.COM] The S&P 500 is down 0.7% and on track to end the week with a 0.9% decline.

One last look at the sector standings shows energy (-2.8%), materials (-1.6%), financials (-1.4%), and consumer discretionary (-1.1%) down more than 1.0% right now, with energy down 3%. The utilities (+1.4%), real estate (+0.4%), health care (+0.4%), and consumer staples (+0.2%) sectors trade higher.

WTI crude futures settled higher by 0.1%, or $0.10, to $71.76/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34511.99 +549.95 (1.62%)
Nasdaq 14498.87 +223.89 (1.57%)
SP 500 4323.08 +64.59 (1.52%)
10-yr Note -1/32 1.200
NYSE Adv 2652 Dec 547 Vol 1.1 bln
Nasdaq Adv 2396 Dec 940 Vol 4.5 bln

Industry Watch
Strong: Financials, Industrials, Real Estate
Weak: Consumer Staples

Moving the Market

-- Investors bought the dip, boosting major indices to gains of at least 1.5%

-- IBM (IBM) reported positive earnings results

-- 10-yr yield settled at 1.21% after dipping below 1.14% followed mixed housing starts and building permits data for June

-- Technical factors and a fear of missing out on a sustained rebound rally

Stocks mount rebound rally
20-Jul-21 16:15 ET
Dow +549.95 at 34511.99, Nasdaq +223.89 at 14498.87, S&P +64.59 at 4323.08

[BRIEFING.COM] The major indices rallied by at least than 1.5% on this "turnaround Tuesday," as investors bought Monday's dip and sold longer-dated Treasuries. The Russell 2000 was the outright winner with a 3.0% gain, followed by the Dow Jones Industrial Average (+1.6%), Nasdaq Composite (+1.6%), and S&P 500 (+1.5%).

The market seemed to be operating on the assumption that conditions were favorable for bounce, especially after the S&P 500 successfully retested its 50-day moving average (4242) yesterday. Others believed the Russell 2000 had entered correction territory too quickly and that value/cyclical stocks had gotten oversold on a short-term basis.

The rebound gains were distributed across ten of the 11 S&P 500 sectors, including industrials (+2.7%) and financials (+2.4%) with gains over 2.0%. Advancing issues outpaced advanced issues by a 5:1 margin at the NYSE. The consumer staples sector (-0.1%) bucked the positive trend.

IBM (IBM 139.97, +2.05, +1.5%) reported better-than-expected earnings results, which may have instilled hope that other technology companies will follow in IBM's footsteps throughout the rest of the earnings season. Apple (AAPL 146.16, +3.70, +2.6%) drew additional support from a price-target increase to $166 from $155 at UBS.

Some companies like HCA Healthcare (HCA 248.90, +31.27, +14.4%) and Dover (DOV 162.14, +10.17, +6.7%) also felt confident enough to issue upbeat guidance, although it's worth mentioning that PPG Industries (PPG 158.49, -7.26, -4.4%) warned it will likely continue to see supply disruptions in Q3. Travelers (TRV 151.09, -0.17, -0.1%) closed lower despite beating EPS estimates.

The warning from PPG was presumably because of the coronavirus, but the extent of today's gains and some curve-steepening activity in the Treasury market seemed to suggest that some of the growth/coronavirus concerns have been overstated.

The 10-yr yield increased three basis points to 1.21% after dipping below 1.14% immediately following mixed housing starts and building permits data for June. Housing starts were better than expected while permits, which are a leading indicator, declined 5.1% m/m to a seasonally adjusted annual rate of 1.598 million (Briefing.com consensus 1.700 million).

The 2-yr yield decreased two basis points to 0.19% while the 30-yr yield rose five basis points to 1.87%. The U.S. Dollar Index increased 0.1% to 92.95. WTI crude futures rose 1.4%, or $0.90, to $67.32/bbl. The CBOE Volatility Index (19.73, -2.77, -12.3%) slipped below 20.00.

Reviewing Tuesday's economic data:

Total housing starts rose 6.3% month-over-month to a seasonally adjusted annual rate of 1.643 million (Briefing.com consensus 1.600 million). Building permits declined 5.1% month-over-month to a seasonally adjusted annual rate of 1.598 million (Briefing.com consensus 1.700 million).
The key takeaway from the report is that permits -- a leading indicator -- declined across all regions for single-family units, suggesting there will be a slowdown in building activity that could be related to a variety of factors, including higher costs, a lack of available labor, and/or high selling prices curtailing buyer demand.

Looking ahead, investors will receive the weekly MBA Mortgage Applications Index on Wednesday.

S&P 500 +15.1% YTD
Dow Jones Industrial Average +12.8% YTD
Nasdaq Composite +12.5% YTD
Russell 2000 +11.1% YTD

Oil prices find some relief
20-Jul-21 15:25 ET
Dow +628.58 at 34590.62, Nasdaq +271.31 at 14546.29, S&P +76.21 at 4334.70

[BRIEFING.COM] The S&P 500 is up 1.8% and on track to close above last Friday's close.

One last look at the sectors standings shows industrials (+2.9%), financials (+2.8%), information technology (+2.0%), and real estate (+2.0%) up at least 2.0% while the consumer staples sector (+0.1%) trades higher by just 0.1%.

WTI crude futures settled higher by 1.4%, or $0.90, to $67.32/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34823.35 +25.35 (0.07%)
Nasdaq 14684.59 +52.64 (0.36%)
SP 500 4367.48 +8.79 (0.20%)
10-yr Note +3/32 1.265
NYSE Adv 1006 Dec 2209 Vol 742.3 mln
Nasdaq Adv 1533 Dec 2825 Vol 3.5 bln

Industry Watch
Strong: Information Technology, Health Care, Consumer Discretionary
Weak: Energy, Financials, Real Estate, Industrials, Consumer Staples

Moving the Market

-- Market consolidates rebound rally as signs of peak growth linger

-- Mega-caps and health care stocks helped large-cap indices close slightly higher

-- Weekly initial claims (419,000) reached highest level since mid-May

-- Earnings reports remained mostly better than expected

Large-cap indices extend rebound bias to a third day
22-Jul-21 16:20 ET
Dow +25.35 at 34823.35, Nasdaq +52.64 at 14684.59, S&P +8.79 at 4367.48

[BRIEFING.COM] The large-cap indices closed slightly higher on Thursday, holding onto their recent rebound gains largely due to strength in the mega-cap stocks. The S&P 500 (+0.2%), Nasdaq Composite (+0.4%), and Dow Jones Industrial Average (+0.1%) increased between 0.1-0.4% while the Russell 2000 pulled back 1.6%.

Overall price action was a bit sluggish, at least compared to the prior two days, as the market appeared to be consolidating its rebound rally while signs of peak growth lingered. Weekly initial claims reached their highest level since mid-May at 419,000 (Briefing.com consensus 360,000), and the Conference Board's Leading Economic Index increased at its slowest pace since February at 0.7% (Briefing.com consensus 0.9%).

Declining issues outpaced advancing issues by a 2:1 margin at the NYSE and Nasdaq, with energy and financial stocks being among the biggest losers after being the biggest winners yesterday. The S&P 500 financials (-1.0%) and energy (-1.1%) sectors each declined about 1%. Energy stocks struggled despite higher oil prices ($71.92/bbl, +1.64, +2.3%).

The mega-caps, however, kept the market in there -- potentially as a byproduct of the peak growth narrative. Microsoft (MSFT 286.14, +4.74, +1.7%) drew additional support from Citigroup after the firm raised its MSFT price target to a Street-high $378 from $310. The Vanguard Mega Cap Growth ETF (MGK 239.25, +1.96, +0.8%) rose 0.8%.

The health care sector (+0.7%) was another difference marker, joining the information technology sector (+0.7%) atop the leaderboard with a 0.7% gain.

Texas Instruments (TXN 183.91, -10.33, -5.3%), meanwhile, kept on a lid on many of the semiconductor stocks after providing conservative guidance for Q3, feeding into the narrative that corporate earnings are also subject to the slower growth narrative. TXN shares fell 5%, and the Philadelphia Semiconductor Index declined 0.9%.

To be fair, some companies like AT&T (T 28.01, +0.11, +0.4%) did provide upbeat guidance. Union Pacific (UNP 219.54, +2.35, +1.1%), CSX (CSX 32.67, +1.10, +3.5%), Blackstone (BX 110.13, +4.34, +4.1%), and Dow Inc. (DOW 60.48, +0.75, +1.3%) closed higher following their earnings reports.

In the Treasury market, the 10-yr yield flirted with 1.32%, then slipped to 1.23% in the hours following the weekly initial claims report, and finally settled two basis points below yesterday's settlement at 1.27%. The 2-yr yield was unchanged at 0.21%. The U.S. Dollar Index increased 0.1% to 92.85.

Reviewing Thursday's economic data:

Initial claims for the week ending July 17 increased by 51,000 to 419,000 (Briefing.com consensus 360,000). Continuing claims for the week ending July 10 decreased by 29,000 to 3.236 million, which is the lowest level since March 21, 2020.
The key takeaway from the report is the disappointment of the initial claims number, which was the highest it has been since mid-May and clearly misaligned with an improving economy; accordingly, it is likely to pour a little fuel on the peak growth narrative fire.
Existing home sales increased 1.4% m/m in June to a seasonally adjusted annual rate of 5.86 million (Briefing.com consensus 5.90 million) from a downwardly revised 5.78 million (from 5.80 million) in May. Total sales in June were up 22.9% from a year ago.
The key takeaway from the report is that the supply of existing homes for sale remains extremely limited. That is driving up the pace of price increases well beyond the pace of income growth, which is creating affordability pressures for prospective buyers, particularly first-time buyers.
The Conference Board's Leading Economic Index (LEI) increased 0.7% in June (Briefing.com consensus 0.9%) after increasing a downwardly revised 1.2% (from 1.3%) in May.
The key takeaway from the report is that overall growth remained widespread; however, the pace of growth in the leading indicators is slowing, having gone from 1.4% in March to 0.7% in June. The latter is the slowest pace since February.

Looking ahead, investors will receive the preliminary IHS Markit Manufacturing and Services PMis for July on Friday.

S&P 500 +16.3% YTD
Nasdaq Composite +13.9% YTD
Dow Jones Industrial Average +13.8% YTD
Russell 2000 +11.4% YTD

WTI crude futures extend rebound gains
22-Jul-21 15:30 ET
Dow +52.51 at 34850.51, Nasdaq +61.99 at 14693.94, S&P +9.90 at 4368.59

[ReturntoSender]

Market Snapshot

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

Dow 35058.52 -85.79 (-0.24%)
Nasdaq 14660.56 -180.14 (-1.21%)
SP 500 4401.46 -20.84 (-0.47%)
10-yr Note +6/32 1.239
NYSE Adv 1163 Dec 2061 Vol 881.1 mln
Nasdaq Adv 1218 Dec 2089 Vol 4.3 bln

Industry Watch
Strong: Utilities, Real Estate, Health Care, Consumer Staples
Weak: Information Technology, Consumer Discretionary, Communication Services, Energy

Moving the Market

-- Mega-caps weigh on market ahead of earnings

-- Tesla (TSLA) fades early gain after reporting earnings

-- Mixed economic data

-- 10-yr yield slips to 1.23%

Winning streak snapped as mega-caps looked like small-caps
27-Jul-21 16:15 ET
Dow -85.79 at 35058.52, Nasdaq -180.14 at 14660.56, S&P -20.84 at 4401.46

[BRIEFING.COM] The S&P 500 lost 0.5% on Tuesday, snapping a five-session winning streak along with the Dow Jones Industrial Average (-0.2%) and Nasdaq Composite (-1.2%). The mega-caps were responsible for the underperformance of the Nasdaq and looked like the small-caps in the Russell 2000 (-1.1%) from a performance standpoint.

Buyers looked nervous in front of Apple's (AAPL 146.77, -2.22, -1.5%), Microsoft's (MSFT 286.54, -2.51, -0.9%), and Alphabet's (GOOG 2735.93, -56.96, -2.0%) earnings reports after the close given the disappointing reaction in Tesla (TSLA 644.78, -12.84, -2.0%) following its better-than-expected Q2 results.

It could have been worse, though, since the major indices were down between 0.8% (Dow) and 2.3% (Nasdaq) at their intraday lows. Profit-taking interest gave way to some dip-buying efforts in the afternoon. Six of the 11 S&P 500 sectors closed higher while five closed lower.

The consumer discretionary (-1.2%), communication services (-1.1%), information technology (-1.0%), and energy (-1.0%) sectors each declined about 1.0%. The defensive-oriented utilities (+1.7%), real estate (+0.8%), and health care (+0.4%) sectors were the top performers.

Another factor in the mix reportedly included growth concerns as investors received mixed economic data and the CDC recommended everyone wear masks indoors in COVID-19 hot spots. Total durable goods orders for June increased by only 0.8% m/m (Briefing.com consensus +2.1%) while the Conference Board's consumer confidence report for July was better than expected.

The growth-sensitive 10-yr yield decreased four basis points to 1.23% amid increased buying interest while the fed-sensitive 2-yr yield was unchanged at 0.20% ahead of the FOMC policy statement tomorrow. The U.S. Dollar Index decreased 0.2% to 92.46. The CBOE Volatility Index (19.36, +1.78, +10.1%) briefly jumped above 20.00.

Separately, the industrials sector (-0.5%) included mixed earnings reactions in UPS (UPS 195.19, -14.67, -7.0%), 3M (MMM 200.47, -1.20, -0.6%), General Electric (GE 13.08, +0.16, +1.2%), and Raytheon Technologies (RTX 88.22, +2.27, +2.6%). UPS shares dropped 7%.

WTI crude futures settled lower by 0.4%, or $0.29, to $71.68/bbl.

Reviewing Tuesday's economic data:

The Conference Board's Consumer Confidence Index checked in at 129.1 in July (Briefing.com consensus 124.5) versus an upwardly revised 128.9 (from 127.3) in June. The July reading marked the highest level for the index since February 2020.
The key takeaway from the report is the understanding that consumer spending activity is expected to remain robust in the short-term, evidenced by a larger percentage of consumers saying they plan to buy homes, automobiles, and major appliances in the coming months.
Total durable goods orders for June were up 0.8% month-over-month (Briefing.com consensus 2.1%) following an upwardly revised 3.2% increase (from 2.3%) for May. Orders, excluding transportation, rose 0.3% month-over-month (Briefing.com consensus 0.9%) on the heels of an upwardly revised 0.5% increase (from 0.3%) for May. The upward revisions to the May data mitigated some of the headline disappointment for June.
The key takeaway from the report is that business spending continues to increase. New orders for nondefense capital goods, excluding aircraft -- a proxy for business spending -- increased 0.5% month-over-month for the second consecutive month.
The May S&P Case-Shiller Home Price Index increased 17.0% yr/yr (Briefing.com consensus 15.2%) following a revised 15.0% increase (from 14.9%) in April.
The FHFA Housing Price Index increased 1.7% m/m in May following an unrevised 1.8% increase in April.

Looking ahead, investors will receive the FOMC Rate decision, the weekly MBA Mortgage Applications Index, and the Advance International Trade in Goods, Retail Inventories, and Wholesale Inventories reports for June on Wednesday.

S&P 500 +17.2% YTD
Nasdaq Composite +13.8% YTD
Dow Jones Industrial Average +14.6% YTD
Russell 2000 +11.0% YTD

Crude futures settle lower
27-Jul-21 15:30 ET
Dow -135.82 at 35008.49, Nasdaq -206.08 at 14634.62, S&P -29.61 at 4392.69

[BRIEFING.COM] The S&P 500 continues to trade lower by 0.7% and is on track to end a five-session winning streak.

One last look at the S&P 500 sectors shows consumer discretionary (-1.3%), communication services (-1.3%), information technology (-1.2%), and energy (-1.2%) down more than 1.0% while the utilities (+1.5%), real estate (+0.6%), health care (+0.2%), and consumer staples (+0.01%) sectors trade higher.

WTI crude futures settled lower by 0.4%, or $0.29, to $71.68/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34930.93 -127.59 (-0.36%)
Nasdaq 14762.57 +102.01 (0.70%)
SP 500 4400.64 -0.82 (-0.02%)
10-yr Note -1/32 1.254
NYSE Adv 2005 Dec 1226 Vol 875.6 mln
Nasdaq Adv 3120 Dec 1192 Vol 4.2 bln

Industry Watch
Strong: Communication Services, Energy, Health Care
Weak: Utilities, Real Estate, Consumer Staples

Moving the Market

-- Fed makes no policy changes, as widely expected

-- Fed Chair Powell reiterates expectations for inflation to moderate and says there is still some time until substantial further progress is made on employment goal

-- Mixed earnings reactions in high-profile names

-- Small-caps and micro-caps outperformed

Large-caps looked up to the small-caps and micro-caps on Fed day
28-Jul-21 16:15 ET
Dow -127.59 at 34930.93, Nasdaq +102.01 at 14762.57, S&P -0.82 at 4400.64

[BRIEFING.COM] The large-cap indices closed mixed on Wednesday, as the market digested mixed earnings reactions in high-profile names and a policy announcement from the Fed that was largely in-line with expectations. Small-cap and micro-cap stocks saw the biggest gains.

The S&P 500 (unch) closed flat while the Dow Jones Industrial Average decreased 0.4%. The Nasdaq Composite outperformed with a 0.7% gain but noticeably trailed the Russell 2000 (+1.5%) and iShares Micro-Cap ETF (IWC 144.42, +2.40, +1.7%).

Apple (AAPL 144.98, -1.79, -1.2%), Microsoft (MSFT 286.22, -0.32, -0.1%), and Alphabet (GOOG 2727.63, -8.30, -0.3%) headlined the earnings calendar and came through with record-setting quarters. The underwhelming price action, however, harped on concerns that it'll be hard to sustain the same level of growth moving forward and that a lot of the good news has been priced in.

Separately, the Fed made no policy changes, as widely expected, leaving the target range for the fed funds rate near zero and the pace of asset purchases at $120 billion per month. Fed Chair Powell reiterated expectations for inflation to moderate and said there's still some time until substantial further progress has been made towards the Fed's employment goal.

In other words, the Fed will remain extremely accommodative and will continue to watch the incoming data, presumably at least a few more employment reports, until it decides to start tapering asset purchases. This inference boded well for risker stocks while there remained an underlying sense that the S&P 500 was due for some consolidation.

The S&P 500 energy (+1.0%) and communication services (+0.8%) sectors claimed the top spots amid higher oil prices ($72.38, +0.70, +1.0%) and strength in Facebook (FB 373.28, +5.47, +1.5%) ahead of its earnings report after the close. The Philadelphia Semiconductor Index (+1.8%) keyed off AMD's (AMD 97.93, +6.90, +7.6%) earnings report.

Conversely, the consumer staples (-0.9%), utilities (-0.7%), and real estate (-0.6%) sectors underperformed in negative territory.

Visa (V 246.94, -3.99, -1.6%), Boeing (BA 231.57, +9.30, +4.2%), McDonald's (MCD 241.78, -4.57, -1.9%), Pfizer (PFE 43.45, +1.35, +3.2%), and Starbucks (SBUX 122.41, -3.62, -2.9%) also reported better-than-expected earnings results, but they didn't have that much impact on the broader market.

The Treasury market saw modest selling interest, pushing yields slightly higher. The 2-yr yield increased one basis point to 0.21%, and the 10-yr yield increased three basis points to 1.26%. The U.S. Dollar Index decreased 0.2% to 92.26.

Reviewing Wednesday's economic data:

The Advance report for International Trade in Goods for June showed a deficit of $91.2 billion, versus a revised $88.2 billion (from $88.1 billion) in May. The Advance report for Retail Inventories for June decreased 0.3%, while the Advance report for Wholesale Inventories for June increased 0.8%.
The weekly MBA Mortgage Applications Index increased 5.7% following a 4.0% decline in the prior week.

Looking ahead, investors will receive the advance estimate for Q2 GDP, the weekly Initial and Continuing Claims report, and Pending Home Sales for June on Thursday.

S&P 500 +17.2% YTD
Nasdaq Composite +14.5% YTD
Dow Jones Industrial Average +14.1% YTD
Russell 2000 +12.7% YTD

[ReturntoSender]

Market Snapshot

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

Dow 35083.53 +152.60 (0.44%)
Nasdaq 14778.25 +15.68 (0.11%)
SP 500 4419.15 +18.51 (0.42%)
10-yr Note -4/32 1.275
NYSE Adv 2243 Dec 1011 Vol 817.4 mln
Nasdaq Adv 2377 Dec 1958 Vol 3.9 bln

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

Moving the Market

-- S&P 500 and Dow set all-time highs but market closes off those highs

-- Better-than-expected earnings reports while Facebook (FB), PayPal (PYPL), and Merck (MRK) provided cautious outlooks

-- Advance estimate for Q2 GDP increased at an annual rate of 6.5% (Briefing.com consensus +8.5%)

S&P 500 and Dow hit record highs in pro-cyclical session
29-Jul-21 16:15 ET
Dow +152.60 at 35083.53, Nasdaq +15.68 at 14778.25, S&P +18.51 at 4419.15

[BRIEFING.COM] The S&P 500 (+0.4%) and Dow Jones Industrial Average (+0.4%) set intraday record highs on Thursday amid strength in the cyclical stocks, although the market did close off session highs. The Nasdaq Composite increased just 0.1% while the Russell 2000 outperformed with a 0.7% gain.

The advance was supported by a confluence of factors: a delayed appreciation that the Fed remained committed to its dovish policy stance, earnings reports that generally exceeded expectations, advance Q2 GDP increasing at an annual rate of 6.5% (Briefing.com consensus +8.5%) -- even if it missed expectations, and the Treasury confirming $100 payments for every newly vaccinated American.

There were some negatives, though. Facebook (FB 358.32, -14.96, -4.0%), PayPal (PYPL 283.17, -18.81, -6.2%), and Merck (MRK 76.93, -1.40, -1.8%) issued cautious outlooks following their earnings reports. Amazon.com (AMZN 3599.92, -30.40, -0.8%) traded lower ahead of its earnings report after the close. Robinhood (HOOD 34.82, -3.18, -8.4%) dropped 8% in its public debut.

Arguably, the continued resiliency to selling interest at the index level played an influential role in attracting buyers on the fear of missing out on further gains. Nine of the 11 S&P 500 sectors finished in positive territory with some rotational activity favoring the cyclical groups.

The financials (+1.1%), materials (+1.1%), energy (+0.9%), and consumer discretionary (+0.9%) sectors each advanced around 1%, while the communication services (-0.9%) and real estate (-0.2%) sectors closed lower. FB weighed on the communication services sector with its 4% decline.

Tesla (TSLA 677.35, +30.37, +4.7%) was a notable standout, rising 5% after the stock was double-upgraded to Buy from Sell at DZ Bank. Qualcomm (QCOM 150.99, +8.55, +6.0%), MasterCard (MA 388.81, +5.37, +1.4%), and Comcast (CMCSA 58.11, +0.13, +0.2%) were some earnings winners.

Separately, it's worth mentioning that the $1 trillion bipartisan infrastructure bill passed a procedural vote in the Senate yesterday.

U.S. Treasuries settled mixed and little changed in a tight-ranged session. The 2-yr yield decreased one basis point to 0.20% while the 10-yr yield increased one basis point to 1.27%. The U.S. Dollar Index decreased 0.5% to 91.90. WTI crude futures increased 1.7%, or $1.24, to $73.62/bbl.

Reviewing Thursday's economic data, which featured the advance Q2 GDP report:

The advance Q2 GDP report reflected the rebound effort in the U.S. economy from the pandemic. It showed real GDP increasing at an annual -- and robust -- rate of 6.5% (Briefing.com consensus 8.5%), helped by an 11.8% increase in personal spending. The GDP Chain Deflator increased 6.0% (Briefing.com consensus 5.4%) following a 4.3% increase in the first quarter.
The key takeaway from the report is the strength seen in personal spending, as consumers were flush with cash and pent-up demand. The U.S. economy, though, was also flush with higher prices. That is another key takeaway, although the Fed continues to assert that the high inflation is likely to be transitory.
Initial claims for the week ending July 24 decreased by 24,000 to 400,000 (Briefing.com consensus 375,000) while continuing claims for the week ending July 17 increased by 7,000 to 3.269 million.
The key takeaway from the report is the elevated level of initial claims, which are still well above pre-pandemic levels and a contributing factor to the Fed's view that the labor market still has a ways to go on the recovery road.
Pending home sales decreased 1.9% m/m in June (Briefing.com consensus +0.8%) following an upwardly revised 8.3% increase (from 8.0%) in May.

Looking ahead, investors will receive Personal Income and Spending data for June, PCE Prices for June, the Q2 Employment Cost Index, the Chicago PMI for July, and the final University of Michigan Index of Consumer Sentiment for July on Friday.

S&P 500 +17.7% YTD
Nasdaq Composite +14.7% YTD
Dow Jones Industrial Average +14.6% YTD
Russell 2000 +13.4% YTD

Crude futures settle sharply higher
29-Jul-21 15:30 ET
Dow +186.08 at 35117.01, Nasdaq +19.47 at 14782.04, S&P +21.30 at 4421.94

[BRIEFING.COM] The S&P 500 is up 0.5% amid gains in nine of its 11 sectors.

The financials (+1.3%), materials (+1.2%), industrials (+1.0%), and energy (+0.9%) sectors continue to lead with gains around 1% while the communication services (-0.8%) and real estate (-0.1%) sectors trade lower.

WTI crude futures settled higher by 1.7%, or $1.24, to $73.62/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34935.47 -149.06 (-0.42%)
Nasdaq 14672.66 -105.59 (-0.71%)
SP 500 4395.26 -23.89 (-0.54%)
10-yr Note +4/32 1.235
NYSE Adv 1425 Dec 1880 Vol 1.1 bln
Nasdaq Adv 1681 Dec 2627 Vol 3.6 bln

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

Moving the Market

-- Amazon (AMZN) fell more than 7.0% after missing revenue estimates and issuing downside Q3 revenue guidance

-- Delta-variant headlines in the mix

-- Personal spending for June was better than expected; PCE Prices for June were better than feared

Amazon and Delta variant subdue market
30-Jul-21 16:20 ET
Dow -149.06 at 34935.47, Nasdaq -105.59 at 14672.66, S&P -23.89 at 4395.26

[BRIEFING.COM] The S&P 500 declined 0.5% on Friday, as disappointing earnings news out of Amazon.com (AMZN 3327.59, -272.33, -7.6%) and negative-sounding headlines surrounding the Delta variant fed into pestering growth concerns. The Nasdaq Composite lost 0.7%, the Dow Jones Industrial Average lost 0.4%, and the Russell 2000 lost 0.6%.

Briefly, shares of Amazon dropped 7.6% after the company missed revenue estimates and issued below-consensus revenue guidance for the third quarter. Amazon said Prime-member growth moderated as people spent less time being at home, and it talked about difficult year-over-year comparisons in the coming quarters.

The S&P 500 consumer discretionary sector (-2.8%) really felt the weight of AMZN, losing 3% on Friday. The energy (-1.8%), utilities (-0.9%), and financials (-0.7%) sectors also underperformed, while the materials (+0.4%), real estate (+0.3%), health care (+0.1%), and consumer staples (+0.1%) sectors closed higher.

Separately, Amazon's observation that people spent more of their time outside suggested that they also spent more money elsewhere. This inference was supported by the latest data showing personal spending increase by 1.0% m/m in June (Briefing.com consensus +0.7%), which was better than expected.

That same report featured better-than-feared PCE Prices for June, which were little changed on a year-over-year basis but still running well above 2.0%.

There were concerns, though, that the rapid spread of the Delta variant could weigh on consumer spending activity. Reports continued to discuss how businesses have delayed return-to-office plans while several media outlets reported on an internal document from the CDC that suggested the Delta variant spreads as easily as chickenpox.

The Treasury market appeared to reflect ongoing expectations for peak growth and inflation rates, as the 10-yr yield decreased three basis points to 1.24%. The 2-yr yield decreased two basis points to 0.18%. The U.S. Dollar Index increased 0.3% to 92.14. WTI crude futures increased 0.3%, or $0.25, to $73.87/bbl.

In other earnings news, Procter & Gamble (PG 142.31, +2.83, +2.0%), Chevron (CVX 101.77, -0.80, -0.8%), Caterpillar (CAT 206.75, -5.81, -2.7%), T-Mobile US (TMUS 144.02, -0.61, -0.4%), and Exxon Mobil (XOM 57.58, -1.35, -2.3%) were some notable companies that exceeded earnings results, but only PG closed higher from this group.

Reviewing Friday's economic data:

Personal spending increased 1.0% month-over-month in June (Briefing.com consensus 0.7%). Personal income was up 0.1% month-over-month (Briefing.com consensus -0.6%), with a 0.7% increase in compensation helping to offset a 2.0% decline in personal current transfer receipts. The PCE Price Index was up 0.5% (Briefing.com consensus 0.7%) and the core-PCE Price Index, which excludes food and energy, increased 0.4% (Briefing.com consensus 0.6%). On a year-over-year basis, the PCE Price Index held steady at 4.0% while the core-PCE Price Index ticked up slightly to 3.5% from 3.4% in May.
The key takeaway from the report is that the inflation rate, while better than feared, is still running well above 2.0% and is eroding the purchasing power of personal income gains. Real disposable personal income was down 3.0% on a year-over-year basis.
The final July reading for the University of Michigan Index of Consumer Sentiment edged up to 81.2 (Briefing.com consensus 81.0) from the preliminary reading of 80.8. The final reading for June was 85.5.
The key takeaway from the report is the conclusion that consumers' expectations for the economy have been reined in with complaints about high prices for homes, vehicles, and household durables.
The Q2 Employment Cost Index increased 0.7% (Briefing.com consensus 0.9%), seasonally adjusted, for the three-month period ending June 2021 after increasing 0.9% for the three-month period ending March 2021. Wages and salaries, which account for about 70% of compensation costs, rose 0.9%, while benefit costs, which make up the remainder of compensation costs, increased 0.4%.
The key takeaway from the report is that wages and salaries for civilian workers and private industry workers were up from the same period a year ago, yet those gains were subsumed by inflation, evidenced by the 6.4% increase in the PCE Price Index seen in the advance Q2 GDP report.
The Chicago PMI for July increased to 73.4 (Briefing.com consensus 63.8) from 66.1 in June.

Looking ahead, investors will receive the ISM Manufacturing Index for July, Construction Spending for June, and the final IHS Markit Manufacturing PMI for July on Monday.

S&P 500 +17.0% YTD
Dow Jones Industrial Average +14.1% YTD
Nasdaq Composite +13.9% YTD
Russell 2000 +12.7% YTD

Crude futures settle slightly higher
30-Jul-21 15:30 ET
Dow -165.74 at 34918.79, Nasdaq -113.06 at 14665.19, S&P -26.35 at 4392.80

[BRIEFING.COM] The S&P 500 is down 0.6% and on track to end the week with a 0.4% decline.

One last look at the sectors shows consumer discretionary (-2.9%) and energy (-1.9%) down 3% and 2%, respectively. The real estate (+0.4%) and materials (+0.3%) sectors outperform with modest gains.

WTI crude futures settled higher by 0.3%, or $0.25, to $73.87/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 35101.85 -106.66 (-0.30%)
Nasdaq 17277.74 +2442.00 (16.46%)
SP 500 4432.35 -4.17 (-0.09%)
10-yr Note +23/32 1.284
NYSE Adv 1231 Dec 2015 Vol 736.6 mln
Nasdaq Adv 2059 Dec 2253 Vol 4.1 bln

Industry Watch
Strong: Health Care, Consumer Staples, Financials
Weak: Energy, Real Estate, Information Technology

Moving the Market

-- Mixed session that lacked trading conviction

-- Growth concerns lingered as oil and copper prices continued to weaken

-- Treasury yields turned around and settled higher

S&P 500 closes slightly lower amid lack of conviction
09-Aug-21 16:20 ET
Dow -106.66 at 35101.85, Nasdaq +2442.00 at 17277.74, S&P -4.17 at 4432.35

[BRIEFING.COM] The S&P 500 decreased 0.1% on Monday in a mixed, and tight-ranged, session that lacked conviction. The Dow Jones Industrial Average (-0.3%) and Russell 2000 (-0.6%) joined the benchmark index in negative territory, while the Nasdaq Composite increased 0.2%.

There weren't that many new macro developments, which might have explained the 15-point range in the S&P 500 as investors preferred to wait for key inflation data later this week. Seven of the 11 S&P 500 sectors closed lower, although the energy sector (-1.5%) was the only sector that lost more than 1.0%.

Energy stocks succumbed to weaker oil prices ($66.55/bbl, -1.73, -2.5%), which along with copper prices ($4.29/lb, -0.07, -1.3%) reflected lingering growth concerns attributed to the Delta variant. Media reports continued to discuss the spread of the variant and the measures that governments and businesses are taking to contain its spread.

The Treasury market, meanwhile, didn't reflect increased growth concerns since the 10-yr yield settled three basis points higher at 1.32% after touching 1.27% intraday. The financials sector (+0.3%) benefited from the positive turnaround and was accompanied by the health care (+0.4%) and consumer staples (+0.3%) sectors atop the leaderboard.

Looking at individual movers, Moderna (MRNA 484.47, +70.75, +17.1%) surged 17% amid positive momentum, Tesla (TSLA 713.76, +14.66, +2.1%) rose 2% after receiving an upgrade to Buy from Hold at Jefferies, Coinbase (COIN 280.47, +22.21, +8.6%) followed cryptocurrencies higher, and Tyson Foods (TSN 77.30, +6.18, +8.7%) rose 9% following its earnings report.

In M&A news, Sanderson Farms (SAFM 195.88, +13.51, +7.4%) agreed to be acquired by Cargill and Continental Grain Company for $4.5 billion, or $203/share, in cash. Golden Nugget Online Gaming (GNOG 18.50, +6.23, +50.8%) agreed to be acquired by DraftKings (DKNG 52.36, +0.77, +1.5%) in an all-stock transaction valued at $1.56 billion.

Separately, the $1 trillion bipartisan infrastructure bill is expected to pass the Senate as soon as tonight, although House Speaker Pelosi reaffirmed she won't bring the bill to a House vote unless the $3.5 trillion budget reconciliation bill is passed.

The 2-yr yield was unchanged at 0.20%. The U.S. Dollar Index increased 0.2% to 92.98.

Monday's economic data was limited to the JOLTS report for June, which showed job openings increase to a record-high of 10.073 million from a revised 9.483 million (from 9.209 million) in May. Looking ahead, investors will receive preliminary Q2 Productivity and Unit Labor Costs and the NFIB Small Business Optimism Index for July on Tuesday.

S&P 500 +18.1% YTD
Nasdaq Composite +15.1% YTD
Dow Jones Industrial Average +15.0% YTD
Russell 2000 +13.2% YTD

Crude futures settle below $67 per barrel
09-Aug-21 15:30 ET
Dow -98.74 at 35109.77, Nasdaq +31.05 at 14866.79, S&P -3.79 at 4432.73

[BRIEFING.COM] The S&P 500 is down 0.1% and could miss out on another record close. Any positive finish would be a record for the benchmark index.

One last look at the sectors performances shows energy (-1.2%), utilities (-0.6%), and real estate (-0.5%) leading the market lower, while the financials (+0.5%), consumer staples (+0.3%), and health care (+0.3%) sectors trade higher.

WTI crude futures settled lower by 2.5%, or $1.73, to $66.55/bbl amid lingering demand concerns.

[ReturntoSender]

Market Snapshot

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

Dow 35499.85 +14.88 (0.04%)
Nasdaq 14816.25 +51.13 (0.35%)
SP 500 4460.83 +13.13 (0.30%)
10-yr Note -22/32 1.369
NYSE Adv 1474 Dec 1749 Vol 696.3 mln
Nasdaq Adv 1779 Dec 2533 Vol 3.9 bln

Industry Watch
Strong: Information Technology, Health Care
Weak: Energy, Materials, Industrials, Consumer Staples

Moving the Market

-- S&P 500 and Dow eke out intraday and closing record highs

-- Apple (AAPL) and Microsoft (MSFT) provided key leadership

-- PPI data for July was worse than feared

-- Weakness in semiconductor space after Micron (MU) received analyst downgrade

Market overlooks hot PPI data and gets a hand from the mega-caps
12-Aug-21 16:20 ET
Dow +14.88 at 35499.85, Nasdaq +51.13 at 14816.25, S&P +13.13 at 4460.83

[BRIEFING.COM] The S&P 500 (+0.3%) and Dow Jones Industrial Average (+0.04%) eked out another pair of intraday and closing record highs on Thursday. They were both down 0.3-0.4% in the morning following a Producer Price Index report for July that was worse than feared.

The Nasdaq Composite increased 0.4% as some money rotated back into large growth stocks, while the Russell 2000 (-0.3%) closed slightly lower.

Prior to the open, the Producer Price Index for final demand and the index for final demand, less food and energy, both increased 1.0% month-over month. The Briefing.com consensus was expecting 0.5% increases for both indices. On a year-over-year basis, they were running uncomfortably hot at 7.8% and 6.2%, respectively.

The higher prices for producers weren't an issue that seemed to worry the Treasury market, and in effect, the stock market due to a belief that inflation rates are peaking. The 10-yr yield increased three basis points to 1.37% after trading at 1.36% prior to the report. It's worth noting that initial and continuing claims both improved from the prior weeks.

Granted, there were more declining issues than advancing issues at the NYSE and Nasdaq, but what really mattered for the major indices was that the mega-cap stocks pulled their weight. Apple (AAPL 148.89, +3.03, +2.1%) and Microsoft (MSFT 289.81, +2.86, +1.0%) rose 2% and 1%, respectively, on no specific news.

The health care sector (+0.8%) was the best-performing sector, though, as weakness in the semiconductor stocks held back the information technology sector (+0.6%). The Philadelphia Semiconductor Index fell 1.1%. The energy (-0.5%), industrials (-0.2%), and materials (-0.2%) sectors also closed lower after outperforming the past two days.

The semiconductor space was pressured by weakness in Micron (MU 70.25, -4.78, -6.4%) after the stock was downgraded to Equal-Weight from Overweight at Morgan Stanley. The firm observed that DRAM conditions are losing steam.

Recapping some other moves, the 2-yr yield increased one basis point to 0.22%, the U.S. Dollar Index increased 0.1% to 92.99, and WTI crude futures decreased 0.2%, or $0.16, to $69.11/bbl. On a related note, the IEA cut its 2021 global oil demand forecast due to the spread of the Delta variant.

Reviewing Thursday's economic data:

The Producer Price Index for final demand increased 1.0% month-over-month in July (Briefing.com consensus 0.5%) on the heels of a 1.0% increase in June. The index for final demand, less foods and energy, also increased 1.0% month-over-month (Briefing.com consensus 0.5%), matching a similar increase in June. On a year-over-year basis, the Producer Price Index for final demand was up 7.8% on an unadjusted basis, versus 7.3% in June. That is the largest advance since it was first calculated in November 2010. The index for final demand, less foods and energy, was up 6.2% versus 5.6% in June.
The key takeaway from the report is that producers are clearly paying higher prices, which could translate into profit margin pressure if they are not successful in passing through price increases to customers that offset their higher costs.
Initial claims for the week ending August 7 decreased by 12,000 to 375,000 (Briefing.com consensus 383,000) while continuing claims for the week ending July 31 decreased by 114,000 to 2.866 million.
The key takeaway from this report is the decrease in both initial claims and continuing claims, as that is on point with an improving economy that is in need of more workers to fill open positions.

Looking ahead, investors will receive the preliminary University of Michigan Index of Consumer Sentiment for August and Export/Import Prices for July on Friday.

S&P 500 +18.8% YTD
Dow Jones Industrial Average +16.0% YTD
Nasdaq Composite +15.0% YTD
Russell 2000 +13.7% YTD

Crude futures settle lower
12-Aug-21 15:25 ET
Dow -6.66 at 35478.31, Nasdaq +48.37 at 14813.49, S&P +11.82 at 4459.52

[BRIEFING.COM] The S&P 500 is up 0.3% and on track to close at a record high. The Dow trades flat and any positive finish would be good for a record close.

One last look at the sector standings shows health care (+0.8%) and information technology (+0.6%) leading the advance, while the energy (-0.6%) and industrials (-0.3%) sectors underperform in the red.

WTI crude futures settled lower by 0.2%, or $0.16, to $69.11/bbl. On a related note, the IEA cut its 2021 global oil demand forecast due to the spread of the Delta variant.

[ReturntoSender]

Stock Market Update

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

Market Snapshot
Dow 35515.38 +15.53 (0.04%)
Nasdaq 14822.89 +6.64 (0.04%)
SP 500 4468.00 +7.17 (0.16%)
10-yr Note +18/32 1.297
NYSE Adv 1551 Dec 1689 Vol 640.1 mln
Nasdaq Adv 1562 Dec 2790 Vol 3.99 bln

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

Moving the Market

Preliminary reading of U of Michigan sentiment survey for August plunges to lowest level since late 2011

S&P 500 and Dow inching toward fresh record highs

Chipmakers bounce after this week's underperformance

S&P 500 and Dow Continue Record Run
13-Aug-21 16:20 ET
Dow +15.53 at 35515.38, Nasdaq +6.64 at 14822.89, S&P +7.17 at 4468.00

[BRIEFING.COM] The stock market ended the week on a mixed note, as the Dow (+0.04%) and S&P 500 (+0.2%) inched to fresh record highs while the Nasdaq (+0.04%) and Russell 2000 (-0.9%) underperformed.

The Friday session was subdued, with the S&P 500 bouncing inside an eight-point range. The Nasdaq spent the day just behind the benchmark index, continuing this week's trend, while weakness in small caps sent the Russell 2000 back to this week's low.

The market was undisturbed by reports from Washington that pointed to renewed uncertainty about the viability of two humongous spending bills. It also held its ground despite a big drop in the preliminary August Consumer Sentiment Survey from the University of Michigan. The survey fell to 70.2 from 81.2, stopping at its lowest level since late 2011 due to weakening sentiment about all aspects of the economy.

Seven sectors finished the day with gains that ranged from 0.1% (materials) to 0.8% (consumer staples). Top-weighted sectors like technology (+0.5%), financials (-0.7%), health care (+0.6%), and consumer discretionary (-0.3%) were mixed, which kept the broader market near the unchanged level throughout the day.

The communication services sector (+0.3%) received an early boost from Disney (DIS 181.08, +1.79, +1.0%). The media giant rallied to a three-month high in response to above-consensus results for Q3, but it spent the day in a steady pullback that trimmed its gain to 1.0% from 4.6% in morning trade.

The top-weighted technology sector returned into positive territory for the week (+0.1%) with some help from chipmakers. The PHLX Semiconductor Index climbed 0.7% to record its first gain since last Wednesday. The SOX Index narrowed this week's loss to 2.3% with leadership from AMD (AMD 110.55, +4.05, +3.8%), which revisited this week's high.

AMD was also the best performer in the broader tech sector while top components like Apple (AAPL 149.10, +0.21, +0.1%), Microsoft (MSFT 292.85, +3.04, +1.1%), and Visa (V 232.65, +0.86, +0.4%) recorded slimmer gains.

Consumer staples benefited from continued strength in Tyson Foods (TSN 81.91, +1.87, +2.3%) as the stock extended its post-earnings rally from Monday to an 18-month high.

Health care also helped the S&P 500 stay above its flat line thanks in large part to Pfizer (PFE 48.48, +1.24, +2.6%), which climbed back to its record high from Tuesday after the FDA expanded the emergency use authorization to allow for a third dose of the coronavirus vaccine in immunocompromised subjects. The news did not boost Moderna (MRNA 389.78, -1.64, -0.4%), which deepened its pullback from a record high.

Financials underperformed throughout the day as Treasuries recovered the bulk of their losses from this week, but the sector still gained 1.8% since last Friday. As for Treasuries, they rallied throughout the day with the pace slowing once the 10-yr yield was pressured back below its 200-day moving average (1.310%). The benchmark yield fell seven basis points to 1.30%.

Energy (-1.3%) finished at the bottom of the leaderboard alongside a $0.74, or 1.1%, drop in the price of crude oil to $68.37/bbl. WTI crude added $0.09 for the week.

Today's participation was well below average, as fewer than 650 mln shares changed hands at the NYSE floor.

Reviewing today's economic data:

The preliminary University of Michigan Consumer Sentiment Index for August had a shocking decline to 70.2 (Briefing.com consensus 81.6) from the final reading of 81.2 for July. That is below the April 2020 low of 71.8 and is one of the largest monthly declines over the past 50 years
The key takeaway from the report is that the plunge in consumer sentiment wasn't just related to concerns about the Delta variant. It was linked to all aspects of the economy, the report said, from personal finances to prospects for the economy, including inflation and unemployment. Moreover, the deteriorating sentiment was seen across income, age, and education subgroups, and observed across all regions.
Import prices increased 0.3% in July after increasing a revised 1.1% (from 1.0%) in June. Excluding oil, import prices were unchanged after increasing 0.7% in June. Export prices increased 1.3% after increasing 1.2% in June while export prices excluding agriculture rose 1.6% after rising 1.1% in June.

Monday's data will be limited to the 8:30 ET release of the Empire State Manufacturing Survey (prior 43.0) followed by June Net Long-Term TIC Flows (prior -$30.20 bln) at 16:00 ET.

S&P 500 +19.0% YTD
Dow Jones Industrial Average +16.0% YTD
Nasdaq Composite +15.0% YTD
Russell 2000 +12.6% YTD

[ReturntoSender]

Market Snapshot

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

Dow 35366.26 +30.55 (0.09%)
Nasdaq 15019.78 +77.15 (0.52%)
SP 500 4486.23 +6.70 (0.15%)
10-yr Note -1/32 1.267
NYSE Adv 2218 Dec 1028 Vol 781.2 mln
Nasdaq Adv 2844 Dec 1611 Vol 3.8 bln

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

Moving the Market

-- S&P 500 and Nasdaq drift further into record territory

-- Cyclical sectors outperformed the defensive-oriented sectors

-- Positive earnings reports, better-than-expected new home sales report for July

-- Increased risk-taking activity

S&P 500 and Nasdaq drift further into record territory
24-Aug-21 16:20 ET
Dow +30.55 at 35366.26, Nasdaq +77.15 at 15019.78, S&P +6.70 at 4486.23

[BRIEFING.COM] The S&P 500 (+0.2%) and Nasdaq Composite (+0.5%) rose modestly on Tuesday, setting intraday and closing record highs in a tame session. The Nasdaq topped the 15,000 level for the first time ever while the S&P 500 flirted with the 4,500 level.

The Dow Jones Industrial Average increased just 0.1%. The Russell 2000 outperformed its large-cap peers with a 1.0% gain.

Risk sentiment seemed to draw support from several factors, including upbeat earnings news, better-than-expected new home sales data for July, decent rebound gains in Chinese technology stocks, and yesterday's reports that the Delta variant could be peaking in the U.S.

Despite the relative strength of the Nasdaq, there was a pro-cyclical disposition: The S&P 500 energy (+1.6%), consumer discretionary (+0.8%), materials (+0.7%), financials (+0.7%), and industrials (+0.5%) sectors finished atop the sector standings. Energy stocks derived their strength from the continued rebound in oil prices ($67.50, +1.90, +2.9%)

Conversely, the consumer staples (-0.8%), real estate (-0.7%), utilities (-0.6%), and health care (-0.3%) sectors closed lower for the second straight day. The information technology sector (-0.1%) was pinned down by softness in Apple (AAPL 149.62, -0.09, -0.1%) and Microsoft (MSFT 302.62, -2.03, -0.7%).

The underperformance of the defensive-oriented sectors coincided with increased risk-taking activity. For example, shares of GameStop (GME 210.29, +45.40, +27.5%) and AMC Entertainment (AMC 44.26, +7.48, +20.3%) rose more than 20.0% in the afternoon on no specific news.

Separately, Best Buy (BBY 121.49, +9.33, +8.3%), Palo Alto Networks (PANW 441.87, +69.30, +18.6%), and Medtronic (MDT 132.57, +4.09, +3.2%) were some of the earnings-related gainers. Alibaba (BABA 171.70, +10.64, +6.6%) and JD.com (JD 75.22, +9.49, +14.4%) were two Chinese stocks that saw some much-needed relief.

Unlike yesterday, longer-dated Treasury yields increased in sympathy with the cyclical bias. The 10-yr yield rose four basis points to 1.29% while the 2-yr yield slipped one basis point to 0.22% following a strong $60 bln 2-yr note auction. The U.S. Dollar Index decreased 0.2% to 92.88.

Reviewing Tuesday's economic data:

New home sales increased 1.0% month-over-month in July to a seasonally adjusted annual rate of 708,000 (Briefing.com consensus 700,000) from an upwardly revised 701,000 (from 676,000) in June. On a yr/yr basis, which encompasses a tough pandemic comparison period, new home sales were down 27.2%.
In economic data:
The key takeaway from the report is that new home sales, which are counted when contracts are signed, are being squeezed by cost constraints that are making it less enticing for builders to build lower-priced homes and by affordability pressures that are making it more challenging for prospective buyers to buy higher-priced homes.

Looking ahead, investors will receive Durable Goods Orders for July and the weekly MBA Mortgage Applications Index on Wednesday.

S&P 500 +19.4% YTD
Nasdaq Composite +16.5% YTD
Dow Jones Industrial Average +15.6% YTD
Russell 2000 +13.0% YTD

Crude futures add to rebound gains
24-Aug-21 15:30 ET
Dow +74.22 at 35409.93, Nasdaq +90.59 at 15033.22, S&P +12.57 at 4492.10

[BRIEFING.COM] The S&P 500 is up 0.3% and is on track to close at a record high. One last look at the sector standing shows a divide between the cyclical and counter-cyclical sectors.

The energy (+1.8%), consumer discretionary (+1.0%), financials (+0.8%), materials (+0.8%), and industrials (+0.6%) are outperforming in positive territory, while the consumer staples (-0.7%), real estate (-0.6%), utilities (-0.5%), and health care (-0.2%) sectors trade lower.

WTI crude futures settled higher by 2.9%, or $1.90, to $67.50 per barrel.

[ReturntoSender]

Market Snapshot



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



Dow 35312.47 -48.26 (-0.14%)
Nasdaq 15309.37 +50.15 (0.33%)
SP 500 4524.12 +1.44 (0.03%)
10-yr Note 0/32 1.307

NYSE Adv 2042 Dec 1216 Vol 831.6 mln
Nasdaq Adv 2546 Dec 1816 Vol 4.2 bln


Industry Watch
Strong: Utilities, Real Estate, Communication Services, Consumer Staples

Weak: Financials, Materials, Energy, Industrials


Moving the Market
-- Nasdaq ekes out record highs to kick off September

-- Pro-defensive bias while cyclical stocks lagged

-- The ISM Manufacturing Index for August beat expectations, but employment index within the report entered contraction territory





Nasdaq ekes out record highs to kick off September
01-Sep-21 16:15 ET

Dow -48.26 at 35312.47, Nasdaq +50.15 at 15309.37, S&P +1.44 at 4524.12
[BRIEFING.COM] The Nasdaq Composite (+0.3%) eked out fresh record highs on the first day of September, as new money continued to flow into the market's largest stocks amid softer economic data. The S&P 500 (unch) closed little changed after coming within one point of its all-time high (4537.36) with a 0.3% gain in the afternoon.

To its credit, the small-cap Russell 2000 (+0.6%) outperformed the Nasdaq, while the Dow Jones Industrial Average declined 0.1%.

Notwithstanding the relative strength in the small-caps, there was a pro-defensive bias: the S&P 500 real estate (+1.7%) and utilities (+1.3%) sectors advanced more than 1.0% while Apple (AAPL 152.51, +0.68, +0.5%), Alphabet (GOOG 2916.84, +7.60, +0.3%), and Facebook (FB 382.05, +2.67, +0.7%) set all-time highs.

Conversely, the cyclical energy (-1.5%), financials (-0.6%), industrials (-0.4%), and materials (-0.3%) sectors underperformed in negative territory. The latest data on the manufacturing sector and labor market were cited for the performance gap.

Specifically, the employment index of the August ISM Manufacturing report slipped into contraction territory with a reading of 49.0, the ADP Employment Change report for August missed expectations by a wide margin, and China's August Caixin Manufacturing PMI (49.2) also slipped into contraction territory.

Granted, the headline ISM Manufacturing PMI for August was better than expected at 59.9% (Briefing.com consensus 58.5%).

AbbVie (ABBV 112.26, -8.52, -7.1%), meanwhile, was a specific drag on the health care sector (unch) after the FDA added warning-label changes to the company's arthritis treatment, Rinvoq. ABBV shares dropped 7% on the news.

The Treasury market, though, remained subdued in a wait-and-see trade for the August Employment Situation Report on Friday, which is the report on the labor market that carries the most weight for the Fed and the broader market.

The 10-yr yield was unchanged at 1.30%, and the 2-yr yield increased one basis point to 0.21%. The U.S. Dollar Index decreased 0.1% to 92.52. WTI crude futures increased 0.2%, or $0.11, to $68.55/bbl amid an expected OPEC+ decision to keep production-increases steady at 400,000 bpd.

Reviewing Wednesday's economic data:

The August ISM Manufacturing Index checked in at 59.9% (Briefing.com consensus 58.5%), up from 59.5% in July. A number above 50.0% is indicative of expansion. August marked the 15th straight month of expansion for the manufacturing sector, and at a faster pace than what was seen in July.
The key takeaway from the report is the same as before. Manufacturers and suppliers continue to struggle to meet increasing demand levels due to a range of factors that includes record-long raw material lead times, shortages of basic materials, transportation difficulties, worker absenteeism, and difficulty filling positions.
Total construction spending increased 0.3% m/m in July (Briefing.com consensus +0.2%) following a downwardly revised flat reading (from +0.1%) for June. Total private construction rose 0.3% m/m while total public construction spending increased 0.7%. On a year-over-year basis, total construction spending was up 9.0%.
The key takeaway from the report is the ongoing strength in private residential construction spending, which is a byproduct of strong demand driven by a scarce supply of existing homes for sale.
The ADP Employment Change report estimated 374,000 jobs were added to private-sector payrolls in August, which was well below the Briefing.com consensus of 660,000. The increase in July was downwardly revised to 326,00 from 330,000.
Total construction spending increased 0.3% m/m in July (Briefing.com consensus +0.2%) on the heels of an unrevised 0.1% increase in June.
The final IHS Market Manufacturing PMI for August checked in at 61.1, down from 61.2 in the preliminary reading.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Trade Balance for July, Factory Orders for July, and the revised Productivity and Unit Labor Costs for the second quarter on Thursday.

S&P 500 +20.5% YTD
Nasdaq Composite +18.8% YTD
Russell 2000 +15.8% YTD
Dow Jones Industrial Average +15.4% YTD



Crude futures settle slightly higher
01-Sep-21 15:30 ET

Dow -38.65 at 35322.08, Nasdaq +71.14 at 15330.36, S&P +4.27 at 4526.95
[BRIEFING.COM] The S&P 500 is up 0.1% after coming within one point of its all-time high earlier today. The Russell 2000 outperforms with a 0.5% gain.

One last look at the S&P 500 sectors shows utilities (+1.4%) and real estate (+1.3%) continuing to lead with gains over 1.0%. Conversely, the energy (-1.5%), financials (-0.6%), industrials (-0.4%), and materials (-0.2%) sectors trade lower.

WTI crude futures settled higher by 0.2%, or $0.11, to $68.55/bbl. On a related note, OPEC+ agreed to stick to their schedule of increasing supply by 400,000 bpd.

[ReturntoSender]

Market Snapshot

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

Dow 35443.82 +131.29 (0.37%)
Nasdaq 15331.17 +21.80 (0.14%)
SP 500 4536.95 +12.86 (0.28%)
10-yr Note 0/32 1.299
NYSE Adv 2076 Dec 1134 Vol 797.6 mln
Nasdaq Adv 2807 Dec 1605 Vol 3.9 bln

Industry Watch
Strong: Energy, Industrials, Health Care
Weak: Communication Services, Information Technology, Consumer Discretionary

Moving the Market

-- S&P 500 and Nasdaq set record highs but close off session highs

-- Weekly initial and continuing claims continued to improve

-- Value stocks outperformed growth stocks

Value kind-of-day
02-Sep-21 16:15 ET
Dow +131.29 at 35443.82, Nasdaq +21.80 at 15331.17, S&P +12.86 at 4536.95

[BRIEFING.COM] The S&P 500 (+0.3%) and Nasdaq Composite (+0.1%) eked out intraday and closing record highs on Thursday, although they closed off session highs amid softness in the growth stocks. The Dow Jones Industrial Average increased 0.4% while the Russell 2000 increased 0.7%.

Unlike yesterday, today was more of a value-oriented session amid continued improvement in the weekly initial and continuing claims report. Both readings decreased to their lowest levels since the start of the pandemic, with initial claims checking in at 340,000 (Briefing.com consensus 348,000).

The shift into "value" was best manifested in the 0.6% gain in the Russell 1000 Value Index, which was better than the gains in the S&P 500 and Nasdaq. The S&P 500 energy (+2.5%) and industrials (+1.0%) sectors -- two cyclical groups often lumped into the value category -- were pockets of strength.

The energy sector was impressive with a 2.5% gain, largely due to the 2% gain in oil prices ($69.96/bbl, +1.41, +2.1%). WTI crude futures settled close to $70.00 per barrel.

Conversely, the Russell 1000 Growth Index closed flat and the Vanguard Mega Cap Growth ETF (MGK 248.98, -0.32, -0.1%) decreased 0.1%. The S&P 500 information technology (-0.1%), communication services (-0.7%), and consumer discretionary (-0.1%) sectors -- which contain the mega-cap stocks -- were the only sectors that closed lower.

The mega-caps had been hitting record highs on an almost regular basis recently, so their underperformance today likely had more to do with a breather than anything else. Low interest rates remained a supportive factor for the growth stocks.

The Treasury market held steady ahead of the August employment report tomorrow. The 2-yr yield was unchanged at 0.21%, and the 10-yr yield decreased one basis point to 1.29%. The U.S. Dollar Index decreased 0.2% to 92.23.

Separately, Hormel Foods (HRL 43.57, -2.10, -4.6%) was one of the biggest laggards in the S&P 500 after providing an underwhelming earnings report. HRL shares declined 4.6%.

Reviewing Thursday's economic data:

For the week ending August 28, initial claims decreased by 14,000 to 340,000 (Briefing.com consensus 348,000), which is the lowest level since March 14, 2020. Continuing claims for the week ending August 21 decreased by 160,000 to 2.748 million, which is also the lowest level since March 14, 2020.
The key takeaway from the report is the same as before: the trend is moving in a direction that is suggestive of an improving labor market.
The trade deficit for July narrowed to $70.1 billion (Briefing.com consensus -$74.0 billion) from an upwardly revised $73.2 billion (prior -$75.7 billion) in June. The narrowing was the result of July exports being $2.8 billion more than June exports, and July imports being $0.4 billion less than June imports.
The key takeaway from the report is that the real trade deficit in July was slightly narrower than the average real trade deficit for Q2. That will compute as a positive input for Q3 GDP forecasts.
Factory orders for manufactured goods increased 0.4% m/m in July, as expected, following a 1.5% increase in June. Shipments of manufactured goods were up 1.6% after increasing 1.9% in June.
The key takeaway from the report is that the pace of order growth for manufactured goods slowed noticeably in July, which is emblematic of headwinds created by the Delta variant and supply chain bottlenecks.
Q2 productivity was revised down to 2.1% (Briefing.com consensus 2.5%) from the advance estimate of 2.3% and unit labor costs were revised up to 1.3% (Briefing.com consensus 0.8%) from the advance estimate of 1.0%.
The downward revision to productivity is a bit disappointing, but it won't resonate as a market-moving factor knowing that we are two-thirds of the way through the third quarter.

Looking ahead, investors will receive the Employment Situation Report for August, the ISM Non-Manufacturing Index for August, and the final IHS Markit Services PMI for August on Friday.

S&P 500 +20.8% YTD
Nasdaq Composite +19.0% YTD
Russell 2000 +16.7% YTD
Dow Jones Industrial Average +15.8% YTD

Crude futures settle close to $70 per barrel
02-Sep-21 15:30 ET
Dow +62.43 at 35374.96, Nasdaq +3.13 at 15312.50, S&P +3.93 at 4528.02

[BRIEFING.COM] The S&P 500 is up 0.1%, and the Russell 2000 is up 0.7%.

One last look at the sector performances shows energy (+2.5%) up 2.5% and the only sector up more than 1.0%. The communication services (-0.7%), information technology (-0.2%), and consumer discretionary (-0.2%) sectors trade lower and hold the market back.

WTI crude futures settled higher by 2.1%, or $1.41, to $69.96/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 35369.09 -74.73 (-0.21%)
Nasdaq 15363.51 +32.34 (0.21%)
SP 500 4535.43 -1.52 (-0.03%)
10-yr Note -5/32 1.322
NYSE Adv 1333 Dec 1868 Vol 702.9 mln
Nasdaq Adv 1794 Dec 2525 Vol 3.65 bln

Industry Watch
Strong: Technology, Communication Services
Weak: Financials, Utilities, Industrials, Real Estate, Health Care, Consumer Discretionary, Materials

Moving the Market

August jobs report misses headline estimates but average hourly earnings beat expectations

Dow Jones continues this week's underperformance

Nasdaq Tags Another Record
03-Sep-21 16:15 ET
Dow -74.73 at 35369.09, Nasdaq +32.34 at 15363.51, S&P -1.52 at 4535.43

[BRIEFING.COM] The stock market ended a quiet week on a mixed note, as the S&P 500 (-0.03%) and Dow (-0.2%) ticked lower while the Nasdaq (+0.2%) hit another new closing record. Small caps underperformed, sending the Russell 2000 lower by 0.5%.

Today's action unfolded inside a 20-point range in the S&P 500 even though the Employment Situation report for August was mixed relative to estimates. The headline reading missed expectations by a country mile (actual 235,000; Briefing.com consensus 750,000) while average hourly earnings increased 0.6% m/m, twice the expected pace, giving some new fodder to the tapering debate.

Stocks slipped out of the gate, but the S&P 500 was quick to find support near its closing level from Wednesday. The benchmark index recovered the bulk of its opening 15-point loss during the opening hour and continued inching higher as the day went on.

The top-weighted technology sector (+0.4%) held a modest gain throughout the day while health care (+0.1%), communication services (+0.1%), real estate (+0.04%), and consumer discretionary (+0.01%) turned positive as the day went on. The technology sector's strength prevented the S&P 500 from falling deeper into the red in early trade and it helped with the daylong rebound.

Chipmakers were responsible for the early strength in technology after Broadcom (AVGO 497.68, +5.78, +1.2%) beat Q3 expectations and issued strong guidance for Q4. Broadcom helped the PHLX Semiconductor Index (+0.6%) narrow this week's loss to 0.2% while top tech components Apple (AAPL 154.30, +0.65, +0.4%) and Microsoft (MSFT 301.14, -0.01, unch) were mixed.

In other tech earnings, Hewlett Packard Enterprise (HPE 15.48, +0.09, +0.6%) touched its best level since mid-June after beating Q3 EPS expectations and issuing in-line guidance for FY21 while MongoDB (MDB 507.41, +105.76, +26.3%) soared to a fresh record after beating Q2 expectations and issuing above-consensus guidance for FY22.

On the downside, utilities (-0.8%) finished at the bottom of the leaderboard while materials (-0.7%), industrials (-0.6%), financials (-0.6%), and energy (-0.5%) ended with slimmer losses. The financials sector widened this week's loss to 2.5% while energy lost 1.4% for the week. Meanwhile, WTI crude fell $0.72, or 1.0%, to $69.24/bbl, but still gained $0.47, or 0.7%, for the week.

Treasuries revisited this week's highs in immediate reaction to the August jobs report but reversed swiftly to their lowest levels of the week. The 10-yr yield rose three basis points to 1.32%, finishing the day between its 50-day (1.309%) and 200-day moving averages (1.341%).

Today's volume was below average with just over 700 million shares changing hands at the NYSE floor.

Reviewing today's economic data:

August nonfarm payrolls increased by 235,000 (Briefing.com consensus 750,000). The 3-month average for total nonfarm payrolls decreased to 750,000 from 876,000 in July. July nonfarm payrolls revised to 1,053,000 from 943,000 June nonfarm payrolls revised to 962,000 from 938,000.
August private sector payrolls increased by 243,000 (Briefing.com consensus 650,000). July private sector payrolls revised to 798,000 from 703,000. June private sector payrolls revised to 808,000 from 769,000.
August unemployment rate was 5.2% (Briefing.com consensus 5.2%), versus 5.4% in July. Persons unemployed for 27 weeks or more accounted for 37.4% of the unemployed versus 39.3% in July. The U6 unemployment rate, which accounts for unemployed and underemployed workers, was 8.8%, versus 9.2% in July.
August average hourly earnings increased 0.6% (Briefing.com consensus 0.3%) versus a 0.4% increase in July. Over the last 12 months, average hourly earnings have risen 4.3%, versus 4.1% for the 12 months ending in July.
The average workweek in August was 34.7 hours (Briefing.com consensus 34.8), versus a downwardly revised 34.7 hours (from 34.8) in July. Manufacturing workweek decreased 0.2 hours to 40.3 hours. Factory overtime was unchanged at 3.2 hours.
The labor force participation rate was 61.7%, versus 61.7% in July. o The employment-population ratio increased to 58.5% from 58.4% in July.
The ISM Non-Manufacturing Index for August decreased to 61.7% (Briefing.com consensus 62.0%) from a record high 64.1% in July. The dividing line between expansion and contraction is 50.0%. The August reading marks the fifteenth straight month of growth for the services sector.
The key takeaway from the report is the understanding that services sector activity is still running strong notwithstanding the deceleration in growth from the record high reading in July.

Bond and equity markets will be closed on Monday in observance of Labor Day.

S&P 500 +20.8% YTD
Nasdaq Composite +19.2% YTD
Russell 2000 +16.1% YTD
Dow Jones Industrial Average +15.6% YTD

Crude Oil Slips
03-Sep-21 15:30 ET
Dow -42.79 at 35401.03, Nasdaq +33.50 at 15364.67, S&P +3.10 at 4540.05

[BRIEFING.COM] The S&P 500 trades higher by 0.1% with 30 minutes remaining in today's session. The benchmark index is on course to gain 0.7% for the week.

Seven sectors are on course to gain at least 1.0% for the week with real estate (-0.1%; +3.9% week-to-date) leading the way. On the downside, financials (-0.5%; -2.3% week-to-date) and energy (-0.5%; -1.4% week-to-date) are on track to finish at the bottom of this week's leaderboard.

[ReturntoSender]

Market Snapshot

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

Dow 35100.93 -268.16 (-0.76%)
Nasdaq 15374.32 +10.81 (0.07%)
SP 500 4520.06 -15.37 (-0.34%)
10-yr Note -26/32 1.371
NYSE Adv 1000 Dec 2257 Vol 811.7 mln
Nasdaq Adv 1677 Dec 2716 Vol 3.9 bln

Industry Watch
Strong: Consumer Discretionary, Communication Services, Information Technology
Weak: Industrials, Real Estate, Utilities, Consumer Staples

Moving the Market

-- Nasdaq sets record high in mostly negative session

-- Mega-caps provide key support

-- Longer-dated Treasury yields rise

Nasdaq closes at record high as investors stay faithful to the mega-caps
07-Sep-21 16:15 ET
Dow -268.16 at 35100.93, Nasdaq +10.81 at 15374.32, S&P -15.37 at 4520.06

[BRIEFING.COM] The Nasdaq Composite (+0.1%) eked out intraday and closing record highs on Tuesday, while the S&P 500 (-0.3%), Dow Jones Industrial Average (-0.8%), and Russell 2000 (-0.7%) closed lower, as investors leaned defensively into the mega-cap stocks.

The broader market struggled to attract buying interest, as investors digested reduced Q4 and 2021 GDP forecasts out of Goldman Sachs, the expiration of enhanced unemployment benefits, analyst downgrades to three health care Dow components, and a sell-off in cryptocurrencies that reminded some people about reducing risk.

Declining issues outpaced advancing issues by a 2:1 margin at the NYSE, the Invesco S&P 500 Equal Weight ETF (RSP 155.57, -1.31, -0.8%) declined 0.8%, and eight of the 11 S&P 500 sectors closed in negative territory. The industrials (-1.8%), utilities (-1.4%), and real estate (-1.1%) sectors lost more than 1.0%.

In the health care space, Johnson & Johnson (JNJ 172.32, -2.72, -1.6%), Merck (MRK 75.98, -1.28, -1.7%), and Amgen (AMGN 221.34, -5.03, -2.2%) were downgraded to Equal-Weight from Overweight at Morgan Stanley.

The decline in the S&P 500, however, was mitigated by the continued strength in the mega-caps. Apple (AAPL 156.69, +2.39, +1.6%) and Netflix (NFLX 606.71, +16.18, +2.7%) both set record highs, with NFLX receiving a Street-high, price-target increase ($780) at Atlantic Equities. The Vanguard Mega Cap Growth ETF (MGK 250.40, +0.72) advanced 0.3%.

The mega-caps lifted the S&P 500 information technology (+0.03%), consumer discretionary (+0.4%), and communication services (+0.5%) sectors into positive territory.

Interestingly, better-than-expected import and export data out of China for August was drowned out by the negative-sounding headlines and negative price action. Prices for oil ($68.40/bbl, -0.84, -1.2%) and copper ($4.28, -0.06, -1.3%) both declined more than 1.0%.

Longer-dated Treasury yields did rise, but the advance was attributed to speculation that the European Central Bank could announce a reduction to its asset purchases on Thursday when it concludes its policy meeting.

The 10-yr yield increased five basis points to 1.37% while the 2-yr yield increased one basis point to 0.21%. The U.S. Dollar Index advanced 0.6% to 92.55, which was another example of the defensive mindset in the market.

Investors did not receive any economic data on Tuesday. Looking ahead, investors will receive Consumer Credit for July, the Fed's Beige Book for September, the JOLTs report for July, and the weekly MBA Mortgage Applications Index on Wednesday.

S&P 500 +20.3% YTD
Nasdaq Composite +19.3% YTD
Russell 2000 +15.2% YTD
Dow Jones Industrial Average +14.7% YTD

Crude futures settle lower
07-Sep-21 15:25 ET
Dow -236.32 at 35132.77, Nasdaq +24.03 at 15387.54, S&P -10.78 at 4524.65

[BRIEFING.COM] The S&P 500 is down 0.2% while the Nasdaq (+0.2%) is on pace to close at a record high.

One last look at the sectors shows consumer discretionary (+0.6%), communication services (+0.5%), and information technology (+0.1%) still trading higher, while industrials (-1.5%), real estate (-1.2%), and utilities (-1.1%) are down more than 1.0%.

WTI crude futures settled lower by 1.2%, or $0.84, to $68.40/bbl amid lingering demand concerns.

[ReturntoSender]

Market Snapshot

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

Dow 35031.07 -68.93 (-0.20%)
Nasdaq 15286.63 -87.69 (-0.57%)
SP 500 4514.07 -5.96 (-0.13%)
10-yr Note +23/32 1.355
NYSE Adv 1238 Dec 1992 Vol 810.0 mln
Nasdaq Adv 1390 Dec 2928 Vol 4.1 bln

Industry Watch
Strong: Utilities, Real Estate, Consumer Staples
Weak: Materials, Energy, Information Technology

Moving the Market

-- Risk sentiment pressured by negative-sounding headlines

-- Losses were kept in check as buyers eased their way back into the large-caps

-- Defensive-oriented sectors outperformed

Stock market closes off session lows
08-Sep-21 16:20 ET
Dow -68.93 at 35031.07, Nasdaq -87.69 at 15286.63, S&P -5.96 at 4514.07

[BRIEFING.COM] The major indices closed lower on Wednesday, as investors digested another negative-sounding news cycle. The S&P 500 (-0.1%) and Dow Jones Industrial Average (-0.2%) finished slightly lower, the Nasdaq Composite lost 0.6%, and the Russell 2000 struggled with a 1.1% decline.

Briefly, several companies provided cautious outlooks, Axios reported that Senator Manchin (D-WV) would only support $1.5 trillion for any human infrastructure plan, Treasury Secretary Yellen warned about the economic consequences if lawmakers don't resolve the debt-ceiling issue, and ECB policymaker Holzmann said the central bank could tighten policy sooner than expected.

Looking more closely at the corporate influence, the S&P 500 materials sector (-1.0%) was one of the weakest sectors after Sherwin-Williams (SHW 296.69, -6.15, -2.0%) lowered its Q3 sales guidance due to raw material issues. Homebuilding stocks underperformed after Pulte Group (PHM 49.53, -3.19, -6.1%) said supply chain issues have increased during the second half of the year.

Apple (AAPL 155.11, -1.58, -1.0%), however, was one of the more influential laggards amid profit-taking interest after a record-setting run. AAPL's 1% decline was felt in all three large-cap indices and the information technology sector (-0.4%). The Philadelphia Semiconductor Index (-1.2%) was another weak spot.

Despite all that, the S&P 500 was down just 0.6% at its session low, and buyers gradually eased their way back into the large-caps throughout the afternoon.

Five of the 11 S&P 500 sectors closed higher, with the utilities sector (+1.8%) rising nearly 2.0% as yesterday's defensive bias carried over to today. The consumer staples (+0.8%) and real estate (+0.6%) sectors followed suit with more modest gains.

In the same vein, longer-dated Treasuries saw increased demand amid the negative bias in the major indices and a decent $38 billion 10-yr note auction. The 10-yr yield decreased four basis points to 1.33%, while the 2-yr yield increased one basis point to 0.22%. The U.S. Dollar Index increased 0.2% to 92.71. WTI crude futures rose 1.4%, or $0.92, to $69.32/bbl.

Separately, the Fed's Beige Book indicated that economic growth downshifted slightly to a moderate pace in early July through August due to the Delta variant. Businesses in most Districts remained optimistic about near-term prospects, though. The report was a non-event for the market.

Reviewing Wednesday's economic data:

Consumer credit increased by $17.0 bln in July (Briefing.com consensus $28.0B) after increasing an upwardly revised $37.9 bln (from $37.6 bln) in June.
The key takeaway from the report is that the expansion in consumer credit in July was the sixth straight increase in total outstanding credit and it followed on the heels of the largest increase since December 2010 seen in June.
Job openings increased to a record-high of 10.934 million in July from a revised 10.185 million (from 10.073 million) in June.
The weekly MBA Mortgage Applications Index decreased 1.9% following a 2.4% decline in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report on Thursday.

S&P 500 +20.2% YTD
Nasdaq Composite +18.6% YTD
Russell 2000 +13.9% YTD
Dow Jones Industrial Average +14.5% YTD

Crude futures settle higher, but energy stocks lag
08-Sep-21 15:30 ET
Dow -74.06 at 35025.94, Nasdaq -94.88 at 15279.44, S&P -7.34 at 4512.69

[BRIEFING.COM] The S&P 500 is down 0.2% after being down as much as 0.6% earlier in the day.

One last look at the sector performances shows materials (-1.0%) and energy (-1.0%) underperforming with 1% declines, while the utilities sector (+1.9%) shines with a 2% gain. The top-weighted information technology sector is down 0.5%.

WTI crude futures settled higher by 1.4%, or $0.92, to $69.32/bbl.

[ReturntoSender]

Market Snapshot

https://stockcharts.com/def/servlet/ScanUI

Dow 34879.38 -151.69 (-0.43%)
Nasdaq 15248.25 -38.38 (-0.25%)
SP 500 4493.28 -20.79 (-0.46%)
10-yr Note +4/32 1.301
NYSE Adv 1584 Dec 1628 Vol 790.0 mln
Nasdaq Adv 2266 Dec 1973 Vol 3.9 bln

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

Moving the Market

-- Major indices close slightly lower in tired session

-- Confusing price action within the market

-- Weekly initial and continuing claims continued to improve

S&P 500 extends losing streak to four session
09-Sep-21 16:15 ET
Dow -151.69 at 34879.38, Nasdaq -38.38 at 15248.25, S&P -20.79 at 4493.28

[BRIEFING.COM] The S&P 500 (-0.5%), Dow Jones Industrial Average (-0.4%), and Nasdaq Composite (-0.3%) closed near session lows with modest losses on Thursday, while the small-cap Russell 2000 (-0.03%) closed relatively unchanged. This was the fourth straight decline for the S&P 500.

Eight of the 11 S&P 500 sectors finished in negative territory, led lower by the real estate (-2.1%) and health care (-1.2%) sectors with losses over 1.0%. The financials (+0.3%), energy (+0.1%), and materials (+0.1%) sectors bucked the negative trend with modest gains.

Relevant news included continued improvement in the weekly initial and continuing claims report, reduced Q3 outlooks from the airlines, and an ECB announcement that emergency asset purchases could be reduced by a moderate pace. Initial claims set another post-pandemic low at 310,000 (Briefing.com consensus 345,000).

None of it moved the market, though. In fact, the airline stocks rallied on the news, longer-dated Treasuries saw increased demand despite the weekly claims data, and financial stocks outperformed despite the subsequent decline in yields. The U.S. Global Jets ETF (JETS 22.97, +0.43, +1.9%) jumped 2%.

A strong $24 bln 30-year bond auction seemed to have more influence on the Treasury market. The 10-yr yield settled four basis points lower at 1.30% after trading at 1.33% before the results were released at 1:00 p.m. ET. The 2-yr yield declined one basis point to 0.21%. The U.S. Dollar Index decreased 0.2% to 92.50.

In addition, the energy sector finished higher despite weaker oil prices ($68.18/bbl, -1.14, -1.6%). Evidently, there was some confusing price action in the market, which reflected some of the uncertainty market participants have about where the market is headed.

Lululemon athletica (LULU 420.71, +39.86, +10.5%) provided a clear indication of its business, and it was good. LULU shares rose 10.5% to record highs following its earnings report. RH (RH 725.00, +52.35, +7.8%) was another earnings winner while GameStop (GME 199.18, +0.38, +0.2%) overcame an intraday 10% decline following its report.

Separately, Biogen (BIIB 300.15, -21.40, -6.7%) said its Alzheimer's treatment is seeing a slower launch than initially anticipated. Moderna (MRNA 455.92, +33.02, +7.8%) announced significant advances across its portfolio of mRNA pipeline programs. BIIB shares fell nearly 7.0% while MRNA shares rose nearly 8.0%.

Reviewing Thursday's economic data:

Initial claims for the week ending September 4 decreased by 35,000 to 310,000 (Briefing.com consensus 345,000) from last week's revised level of 345,000 (from 340,000). Continuing claims for the week ending August 28 decreased by 22,000 to 2.783 mln from last week's revised level of 2.805 mln (from 2.748 mln).
The key takeaway from the report is that the overall trend is moving in the right direction, albeit at a slow pace.

Looking ahead, investors will receive the Producer Price Index for August and Wholesale Inventories for July on Friday.

S&P 500 +19.6% YTD
Nasdaq Composite +18.3% YTD
Dow Jones Industrial Average +14.0% YTD
Russell 2000 +13.9% YTD

Energy sector trades higher despite lower oil prices
09-Sep-21 15:35 ET
Dow -122.90 at 34908.17, Nasdaq -7.05 at 15279.58, S&P -13.82 at 4500.25

[BRIEFING.COM] The S&P 500 is down 0.4% and on track to close lower for the fourth straight session.

One last look at the sector performances shows health care (-1.0%) and real estate (-1.7%) down at least 1.0% while the financials (+0.4%), energy (+0.2%), and materials (+0.2%) sectors trade slightly higher.

WTI crude futures settled lower by 1.6%, or $1.14, to $68.18/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34607.72 -271.66 (-0.78%)
Nasdaq 15115.49 -132.76 (-0.87%)
SP 500 4458.58 -34.70 (-0.77%)
10-yr Note -2/32 1.328
NYSE Adv 1175 Dec 2013 Vol 776.0 bln
Nasdaq Adv 1440 Dec 2818 Vol 4.5 bln

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

Moving the Market

-- Major indices fade positive open and close at session lows with about 1% declines

-- Court rules against Apple (AAPL) on developer issue versus Epic Games

-- PPI data for August remained hot

Apple leads market lower on court ruling
10-Sep-21 16:20 ET
Dow -271.66 at 34607.72, Nasdaq -132.76 at 15115.49, S&P -34.70 at 4458.58

[BRIEFING.COM] The major indices lost about 1% on Friday, as the market faded a positive open and investors digested a mixed court ruling on Apple (AAPL 148.97, -5.10, -3.3%) versus Epic Games. The S&P 500 (-0.8%), Dow Jones Industrial Average (-0.8%), Nasdaq Composite (-0.9%), and Russell 2000 (-1.0%) closed at session lows.

The early index gains ranged between 0.6-0.7% in a buy-the-dip effort, but that quickly unraveled on no specific news. Late in the morning, a court ruled that Apple must give developers the ability to create their own payment options. In Apple's favor, the judge said the company isn't an antitrust monopolist in the submarket for mobile gaming transactions.

Shares of Apple subsequently fell 3%, and shares of Alphabet (GOOG 2838.42, -59.85, -2.1%) fell in sympathy given it owns the Google Play store.

The information technology (-1.0%) and communication services (-0.9%) sectors, which are home to AAPL and GOOG, underperformed along with the utilities (-1.4%) and real estate (-1.2%) sectors. No sectors finished higher, as selling accelerated into the close on no news.

Presumably, the inability to hold onto rebound gains fueled concerns about further equity weakness with the loss in price momentum. The benchmark index extended its losing streak to five sessions. The CBOE Volatility Index (20.89, +2.09, +11.1%) jumped above 20.00.

Another hot Producer Price Index report didn't appear to affect stocks all that much, but the Treasury was under some selling pressure because of it. Briefly, producer prices for final demand were up 0.7% m/m in August (Briefing.com consensus 0.6%), leaving them up 8.3% yr/yr, while core prices were up 6.7% yr/yr.

The 10-yr yield increased four basis points to 1.34% while the 2-yr yield was unchanged at 0.21%. The U.S. Dollar Index increased 0.2% to 92.62. WTI crude futures rose 2.3%, or $1.57, to $69.75/bbl.

In earnings news, shares of Affirm (AFRM 123.70, +31.64, +34.4%) soared about 35% after the company reported better-than-expected results and issued upbeat revenue guidance. Kroger (KR 42.67, -3.46, -7.5%), on the other hand, dropped 7.5% as rising costs pressured margins.

Reviewing Friday's economic data:

The Producer Price Index for final demand increased 0.7% month-over-month in August (Briefing.com consensus 0.6%) after increasing 1.0% in July. The index for final demand, less foods and energy, increased 0.6% month-over-month (Briefing.com consensus 0.6%) after increasing 1.0% in July. On a year-over-year basis, the Producer Price Index for final demand was up 8.3% on an unadjusted basis, versus 7.8% in July. That has lifted the index past its record increase from last month. The index for final demand, less foods and energy, was up 6.7% versus 6.2% in July.
The key takeaway from the report is that while the month-over-month change slowed from increases seen in June and July, the year-over-year growth rate in PPI rose to a fresh record.
Wholesale inventories increased 0.6% m/m in July (Briefing.com consensus 0.5%) following a downwardly revised 0.6% increase (+1.1%) in June.

Looking ahead, investors will receive the Treasury Budget for August on Monday.

S&P 500 +18.7% YTD
Nasdaq Composite +17.3% YTD
Dow Jones Industrial Average +13.1% YTD
Russell 2000 +12.8% YTD

Crude futures settle close to $70 per barrel
10-Sep-21 15:30 ET
Dow -145.12 at 34734.26, Nasdaq -83.29 at 15164.96, S&P -18.69 at 4474.59

[BRIEFING.COM] The S&P 500 is trading at session lows with a 0.4% decline. The Russell 2000 is down 0.2%.

One last look at the sector performances shows health care (-0.7%), information technology (-0.7%), communication services (-0.7%), and utilities (-0.7%) each down 0.7%, while the materials (+0.4%) and energy (+0.2%) sectors trade modestly higher.

WTI crude futures settled higher by 2.3%, or $1.57, to $69.75/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34869.63 +261.91 (0.76%)
Nasdaq 15105.58 -9.91 (-0.07%)
SP 500 4468.73 +10.15 (0.23%)
10-yr Note +2/32 1.322
NYSE Adv 1998 Dec 1226 Vol 850.6 mln
Nasdaq Adv 2155 Dec 2096 Vol 4.6 bln

Industry Watch
Strong: Energy, Financials, Real Estate
Weak: Health Care, Utilities, Materials

Moving the Market

-- S&P 500 snaps losing streak with modest gain

-- Lack of trading conviction

-- Strength in the energy and financials sectors

S&P 500 snaps losing streak with modest gain
13-Sep-21 16:15 ET
Dow +261.91 at 34869.63, Nasdaq -9.91 at 15105.58, S&P +10.15 at 4468.73

[BRIEFING.COM] The S&P 500 snapped a five-session losing streak on Monday with a 0.2% gain, although it closed well off session highs. The Nasdaq Composite decreased 0.1%, while the Dow Jones Industrial Average (+0.8%) and Russell 2000 (+0.6%) outperformed amid strength in energy and financial stocks.

Shortly after the open, the S&P 500 was up as much as 0.8% amid gains across all 11 sectors (the Nasdaq was up 0.7%). The positive start was attributed to buy-the-dip efforts and some positive-minded analyst coverage on the mega-cap stocks.

The benchmark index softened up on no specific news catalyst and traded sideways for most of the day, until a modest bump into the close. Eight of the 11 S&P 500 sectors ended the session in positive territory, led by energy (+2.9%) and financials (+1.1%) with 3% and 1% gains, respectively.

Energy stocks outpaced the rise in WTI crude futures, which settled above $70 per barrel ($70.47/bbl, +0.72, +1.0%). Bank stocks showed strength despite some minor curve-flattening activity. The 10-yr yield decreased two basis points to 1.32% while the 2-yr yield was unchanged at 0.21%. The U.S. Dollar Index increased 0.1% to 92.64.

The health care sector (-0.6%) was today's laggard as investors digested a report published in The Lancet about COVID-19 booster shots. Briefly, a group of international scientists said current evidence doesn't appear to show a need for the general population to receive a booster.

Shares of Pfizer (PFE 44.58, 1.01, -2.2%) fell 2.2% while shares of Moderna (MRNA 419.72, -29.66, -6.6%) fell 6.6%.

Highlighting today's notable analyst recommendations, Goldman Sachs initiated coverage on Amazon.com (AMZN 3457.17, -11.98, -0.4%), Alphabet (GOOG 2869.30, +20.88, +1.1%), and Facebook (FB 376.51, -2.18, -0.6%) with Buy ratings. Only Alphabet keyed off the recommendation, though.

Nike (NKE 159.52, -4.07, -2.5%) was downgraded to Neutral from Buy at BTIG due to challenging supply dynamics. On a related note, 3M (MMM 185.23, +0.68, +0.4%) said inflation has been higher than previously thought in the third quarter and that raw material costs are its biggest supply issue.

Reviewing Monday's economic data:

The Treasury Budget for August showed a $170.64 bln deficit in August, versus a $200.01 bln deficit in the same period a year ago. The budget data is not seasonally adjusted, so the August deficit cannot be compared to the July deficit of $302.05 bln. August marked the 23rd consecutive month that the Treasury has seen a budget deficit.
The fiscal year-to-date budget deficit is $2.71 trln versus a deficit of $3.01 trln for the same period a year ago.

Looking ahead, investors will receive the Consumer Price Index for August and the NFIB Small Business Optimism Survey for August on Tuesday.

S&P 500 +19.0% YTD
Nasdaq Composite +17.2% YTD
Dow Jones Industrial Average +13.9% YTD
Russell 2000 +13.5% YTD

Crude futures settle above $70 per barrel
13-Sep-21 15:30 ET
Dow +195.21 at 34802.93, Nasdaq -33.47 at 15082.02, S&P +1.22 at 4459.80

[BRIEFING.COM] The S&P 500 is trading flat and is trying to avoid a sixth straight loss.

One last look at the sector performances shows energy (+2.6%) way in the lead with a 2.6% gain, followed by the financials sector (+0.8%). The health care sector (-0.8%) remains the laggard with a 0.8% decline.

WTI crude futures settled higher by 1.0%, or $0.72, to $70.47/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34814.13 +236.56 (0.68%)
Nasdaq 15161.53 +123.77 (0.82%)
SP 500 4480.88 +37.83 (0.85%)
10-yr Note -2/32 1.315
NYSE Adv 2244 Dec 981 Vol 962.5 mln
Nasdaq Adv 2726 Dec 1582 Vol 4.4 bln

Industry Watch
Strong: Energy, Financials, Industrials, Materials
Weak: Utilities

Moving the Market

-- Market rebounds modestly from recent losses

-- Value stocks had the performance edge over growth stocks

-- S&P 500 respects 50-day moving average (4432)

Market shows up with a good rebound
15-Sep-21 16:20 ET
Dow +236.56 at 34814.13, Nasdaq +123.77 at 15161.53, S&P +37.83 at 4480.88

[BRIEFING.COM] The stock market had a good day on Wednesday, rebounding modestly from recent losses. The S&P 500 (+0.9%), Nasdaq Composite (+0.8%), and Dow Jones Industrial Average (+0.7%) rose between 0.7-0.9% while the Russell 2000 gained 1.1%.

Value stocks were early leaders, as investors digested upwards momentum in energy prices; a huge upside surprise in the Empire State Manufacturing Survey for September, which checked in at 34.3 (Briefing.com consensus 18.6); and industrial production data for August that increased in-line with expectations.

The latter was well received because China reported industrial production data for August (along with retail sales and fixed asset investment data) that missed expectations. The gains broadened out to the mega-caps/growth stocks later in the day on no news, helping the S&P 500 distance itself from its 50-day moving average (4432).

Ten of the 11 S&P 500 sectors ended the session in positive territory, led by the cyclical energy (+3.8%), industrials (+1.1%), materials (+1.1%), and financials (+0.9%) sectors. The utilities sector (-0.2%) closed slightly lower.

Microsoft (MSFT 304.82, +5.03, +1.7%) was a positive force today after the company approved a new $60 billion share repurchase program and raised its dividend by 11%.

Highlighting the developments in the energy space, the EIA reported a larger-than-expected draw in weekly crude inventories (6.42 million), WTI crude futures settled above $72 per barrel ($72.52/bbl, +2.06, +2.9%), and JPMorgan downgraded Chevron (CVX 98.24, +2.04, +2.1%) to Neutral from Overweight with a $111 price target.

In other corporate news, Goldman Sachs (GS 401.95, -1.74, -0.4%) augmented its consumer business with an acquisition of GreenSky (GSKY 11.90, +4.13, +53.2%) for $2.24 billion, or $12.11/share, in stock. Wynn Resorts (WYNN 86.44, -4.81, -6.3%) fell 6% amid reports that China wants to tighten regulation on the gaming industry in Macao.

Longer-dated Treasury yields finished slightly higher, with selling interest picking up following the release of the industrial production report. The 10-yr yield settled higher by three basis points to 1.30% while the 2-yr yield remained unchanged at 0.21%. The U.S. Dollar Index decreased 0.2% to 92.48.

Reviewing Wednesday's economic data:

Total industrial production increased 0.4% in August (Briefing.com consensus 0.4%) following a downwardly revised 0.8% increase in July (from 0.9%). The capacity utilization rate increased to 76.4% (Briefing.com consensus 76.3%) from an upwardly revised 76.2% in July (from 76.1%).
The key takeaway from the report is that it showed industrial production finally eclipsed its pre-pandemic level; and it also showed industrial production was even stronger in August than meets the eye, registering a gain despite the impact of Hurricane Ida and ongoing semiconductor shortages.
The Empire State Manufacturing Survey increased to 34.3 in September (Briefing.com consensus 18.6) from 18.3 in August.
Import prices decreased 0.3% in August after increasing a revised 0.4% (from 0.3%) in July. Excluding oil, import prices decreased 0.1% after increasing a revised 0.1% (from 0.0%) in July.
Export prices rose 0.4% after increasing a revised 1.1% (from 1.3%) in July. Excluding agriculture, export prices rose 0.2% after increasing a revised 1.4% (from 1.6%) in July.
The weekly MBA Mortgage Applications Index increased 0.3% following a 1.9% decline in the prior week.

Looking ahead, investors will receive Retail Sales for August, the weekly Initial and Continuing Claims report, the Philadelphia Fed Index for September, and Business Inventories for July on Thursday.

S&P 500 +19.3% YTD
Nasdaq Composite +17.6% YTD
Dow Jones Industrial Average +13.8% YTD
Russell 2000 +13.1% YTD

Crude futures rise 3%
15-Sep-21 15:30 ET
Dow +250.62 at 34828.19, Nasdaq +125.71 at 15163.47, S&P +39.14 at 4482.19

[BRIEFING.COM] The S&P 500 is up 0.9% to trade at session highs in a relatively broad-based advance.

Ten of the 11 S&P 500 sectors are trading higher, none more so than the energy sector with a 3.8% gain amid higher energy prices. The financials (+1.1%) and industrials (+1.1%) sectors are still up more than 1.0%. The utilities sector (-0.1%) is the only sector trading lower.

WTI crude futures settled higher by 2.9%, or $2.06, to $72.52/bbl. On a related note, weekly crude oil inventories decreased by 6.42 mln barrels after decreasing by 1.53 mln barrels during the previous week.

[ReturntoSender]

Market Snapshot

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

Dow 34258.32 +338.48 (1.00%)
Nasdaq 14896.84 +150.45 (1.02%)
SP 500 4395.64 +41.45 (0.95%)
10-yr Note +1/32 1.314
NYSE Adv 2608 Dec 648 Vol 875.6 mln
Nasdaq Adv 2848 Dec 1237 Vol 4.2 bln

Industry Watch
Strong: Energy, Financials, Industrials, Materials
Weak: Communication Services

Moving the Market

-- Stocks react positively to FOMC statement

-- Volatility during Powell speech

-- Evergrande says it reached private deal to settle one of its debt payments due Thursday

Market closes with decent gains, even as Fed leans less dovish
22-Sep-21 16:20 ET
Dow +338.48 at 34258.32, Nasdaq +150.45 at 14896.84, S&P +41.45 at 4395.64

[BRIEFING.COM] The S&P 500 (+1.0%), Dow Jones Industrial Average (+1.0%), and Nasdaq Composite (+1.0%) each closed higher by 1.0% on Wednesday, as investors digested some less-dovish Fed news reasonably well. The Russell 2000 outperformed with a 1.5% gain.

Six of the 11 S&P 500 sectors rose at least 1.0%, including the energy sector (+3.2%) with a 3% gain and the information technology sector (+1.4%) with an influential 1.4% gain. The utilities (-0.1%) and communication services (-0.01%) sectors were the only sectors that closed lower.

Most of these gains were registered before the FOMC statement was released at 2:00 p.m. ET amid easing Evergrande concerns and dovish-oriented expectations for the Fed.

The FOMC left the target range for the fed funds rate unchanged at 0.00-0.25% and said tapering the rate of asset purchases may soon be warranted if progress on the economy continues broadly as expected. Interestingly, the Fed's median estimate for a rate hike moved up to 2022, versus a prior median estimate of no change through 2022.

Fed Chair Powell suggested that a decent September employment report would be enough for him to think tapering could start in November, which would then conclude around the middle of next year. Separately, Mr. Powell relegated Evergrande to a China-specific issue and urged Congress to raise the debt ceiling to avoid risking severe damage to the economy and financial markets.

Aside from the interest-rate projection, and acknowledging that inflation pressures could remain elevated longer than anticipated, there weren't that many big surprises today. There was the typical post-FOMC volatility, but the market seemed to appreciate the guidance from the Fed chair regarding a taper timeline.

Shorter-dated Treasuries saw increased selling pressure following the policy directive. The 2-yr yield increased three basis points to 0.24% while the 10-yr yield increased one basis point to 1.34%. The U.S. Dollar Index increased 0.3% to 93.43. WTI crude futures increased 2.5%, or $1.75, to $72.26/bbl.

In the corporate space, Facebook (FB 343.21, -14.27, -4.0%), Adobe (ADBE 626.08, -19.81, -3.1%), and FedEx (FDX 229.08, -22.99, -9.1%) were notable laggards today.

Facebook commented on IOS-related headwinds and said it's been underreporting ad performance by about 15% for web conversions on IOS due to privacy changes. Adobe fell despite beating EPS estimates and issuing upside Q4 guidance. FedEx missed EPS estimates and lowered its FY22 EPS guidance.

Reviewing Wednesday's economic data:

Existing home sales decreased 2.0% m/m in August to a seasonally adjusted annual rate of 5.88 million (Briefing.com consensus 5.86 million) from an upwardly revised 6.00 million (from 5.99 million) in July. Total sales in August were down 1.5% from a year ago.
In economic data:
The key takeaway from the report is that the supply of existing homes for sale is tight, particularly at more affordable price points. That is driving up the pace of price increases well beyond the pace of income growth, which is creating affordability pressures for prospective buyers and crimping overall sales activity.
The weekly MBA Mortgage Applications Index rose 4.9% following a 0.3% increase in the prior week.

Looking ahead, investors will receive weekly Initial and Continuing Claims, the Conference Board's Leading Economic Index for August, and the preliminary Markit Manufacturing/Services PMIs for September on Thursday.

S&P 500 +17.0% YTD
Nasdaq Composite +15.6% YTD
Dow Jones Industrial Average +11.9% YTD
Russell 2000 +12.3% YTD

Crude futures settle sharply higher
22-Sep-21 15:30 ET
Dow +440.48 at 34360.32, Nasdaq +185.16 at 14931.55, S&P +53.82 at 4408.01

[BRIEFING.COM] The S&P 500 is trading back near session highs with a 1.3% gain. The Russell 2000 is up 1.7%.

One last look at the S&P 500 sectors shows green across the board. The energy sector (+3.8%) leads with a 4% gain while the utilities sector (+0.1%) clings onto a slim 0.1% gain.

WTI crude futures settled higher by 2.5%, or $1.75, to $72.26/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34798.00 +33.18 (0.10%)
Nasdaq 15047.70 -4.54 (-0.03%)
SP 500 4455.48 +6.50 (0.15%)
10-yr Note -2/32 1.454
NYSE Adv 1305 Dec 1925 Vol 763.3 mln
Nasdaq Adv 1837 Dec 2451 Vol 3.9 bln

Industry Watch
Strong: Energy, Communication Services, Financials
Weak: Real Estate, Health Care, Materials, Utilities

Moving the Market

-- Large-cap indices take a breaker and close little changed

-- Long-term interest rates increased for the second straight day

-- Nike (NKE) issues downside revenue guidance due to supply chain issues

-- S&P 500 supported by its 50-day moving average (4439)

Market takes a breather to close out the week
24-Sep-21 16:20 ET
Dow +33.18 at 34798.00, Nasdaq -4.54 at 15047.70, S&P +6.50 at 4455.48

[BRIEFING.COM] The large-cap indices closed little changed on Friday, as the market took a breather and digested another increase in long-term interest rates. The S&P 500 (+0.2%) and Dow Jones Industrial Average (+0.1%) eked out gains while the Nasdaq Composite (-0.03%) closed fractionally lower. The Russell 2000 declined 0.5%.

The session started with index losses ranging from 0.3% (Dow) to 0.9% (Nasdaq). The shaky start was attributed to valuation-oriented weakness in the growth stocks amid the higher rates, a revenue warning from Nike (NKE 149.59, -9.99, -6.3%) due to supply chain issues, and news that Evergrande didn't make a payment on a dollar-denominated bond yesterday.

The 10-yr yield settled higher by five basis points to 1.46% after touching 1.30% in the wee hours of Thursday morning.

The S&P 500 financials sector (+0.6%) naturally keyed off the higher rates, but it was outpaced by the energy (+0.8%) and communication services (+0.7%) sectors from a percentage standpoint. The real estate (-1.2%), health care (-0.4%), materials (-0.2%), and utilities (-0.2%) sectors closed lower.

Sellers loosened their influence on the market amid a recognition that the S&P 500 reclaimed -- and stayed above -- its 50-day moving average (4439) after opening below the key technical level. Buying efforts, however, were tempered in part due to a recognition that the S&P 500 was already up more than 3.0% from Monday's low.

Resiliently, the Russell 1000 Growth Index overcome an early 0.6% decline and increased 0.1%, matching the gain of the Russell 1000 Value Index (+0.1%).

Costco (COST 467.75, +14.97, +3.3%) and McDonald's (MCD 246.42, +1.64, +0.7%) were two other story stocks today. Costco beat EPS estimates while McDonald's raised its dividend by 7% and announced a resumption of share repurchases.

The 2-yr yield increased one basis point to 0.27%. The U.S. Dollar Index decreased 0.2% to 93.28. WTI crude futures increased 0.9%, or $0.67, to $74.00/bbl.

Reviewing Friday's economic data:

New home sales increased 1.5% month-over-month to a seasonally adjusted annual rate of 740,000 (Briefing.com consensus 720,000) from an upwardly revised 729,000 (from 708,000) in July.
The key takeaway from the report is that new home sales momentum has been slowed by cost constraints that are making it less enticing for builders to build lower-priced homes and by affordability pressures that are making it more challenging for prospective buyers to buy higher-priced homes.

Looking ahead, investors will receive Durable Goods Orders for August on Monday.

S&P 500 +18.6% YTD
Nasdaq Composite +16.8% YTD
Russell 2000 +13.8% YTD
Dow Jones Industrial Average +13.7% YTD

Crude futures settle at $74 per barrel
24-Sep-21 15:30 ET
Dow +58.12 at 34822.94, Nasdaq -6.36 at 15045.88, S&P +8.48 at 4457.46

[ReturntoSender]

Market Snapshot

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

Dow 34390.72 +90.73 (0.26%)
Nasdaq 14512.44 -34.24 (-0.24%)
SP 500 4359.46 +6.83 (0.16%)
10-yr Note 0/32 1.543
NYSE Adv 1896 Dec 1352 Vol 824.5 mln
Nasdaq Adv 1805 Dec 2327 Vol 5.1 bln

Industry Watch
Strong: Consumer Staples, Utilities, Real Estate, Health Care
Weak: Materials, Information Technology, Communication Services

Moving the Market

-- S&P 500 ekes out gain while Nasdaq closes lower

-- Calmer Treasury market

-- Defensive-oriented stocks outperformed

-- Dollar strengthens

S&P 500 ekes out gain amid calmer Treasury market
29-Sep-21 16:20 ET
Dow +90.73 at 34390.72, Nasdaq -34.24 at 14512.44, S&P +6.83 at 4359.46

[BRIEFING.COM] The S&P 500 increased 0.2% on Wednesday amid a calmer Treasury market, although the benchmark index was up 0.8% at session highs. The Dow Jones Industrial Average increased 0.3% while the Nasdaq Composite (-0.2%) and Russell 2000 (-0.2%) coughed up gains and closed lower.

The Treasury market stubbornly resisted buying interest, but at least yields were kept in check: the 10-yr yield increased one basis point to 1.54% (below yesterday's high of 1.56%) while the 2-yr yield decreased one basis point to 0.29%. The U.S. Dollar Index rose 0.7% to 94.41, signaling a defensive undertone.

Likewise, the defensive-oriented utilities (+1.3%), consumer staples (+0.9%), health care (+0.8%), and real estate (+0.7%) sectors were today's leaders in the S&P 500. The materials (-0.2%), communication services (-0.2%), and information technology (-0.1%) sectors closed lower. The latter two groups were influential laggards.

The semiconductor stocks held back the technology sector after Micron (MU 71.64, -1.46, -2.0%) issued downside guidance for its fiscal first quarter due to ongoing supply chain disruptions. The Philadelphia Semiconductor Index declined 1.5%.

Micron wasn't the only company that lowered expectations. Sherwin-Williams (SHW 282.26, +2.64, +0.9%) reduced its Q3 and FY21 guidance, citing worsening raw material availability and pricing inflation, and Generac (GNRC 406.53, -18.81, -4.4%) issued downside FY21 revenue guidance. SHW closed higher despite the bad news.

Dollar Tree (DLTR 100.51, +14.23, +16.5%) was a prime example of "pricing inflation" with an announcement that it will start selling certain items for $1.25 to $1.50. DLTR shares rallied 16.5%, further supported by plans to increase its share buyback program to $2.5 billion.

Boeing (BA 225.36, +6.95, +3.2%), meanwhile, helped lead the Dow higher after the stock was upgraded to Outperform from Mkt Perform at Bernstein. The firm believes global travel is reaching an inflection point.

Elsewhere, WTI crude futures fell 0.5%, or $0.38, to $74.91/bbl amid an unexpected build in weekly crude inventories (4.58 million). Silver futures fell 4.3%, or $0.97, to $21.49/ozt amid the stronger dollar.

Reviewing Wednesday's economic data:

Pending home sales jumped 8.1% m/m in August (Briefing.com consensus 1.0%) following a revised 2.0% decline (from -1.8%) in July.
The weekly MBA Mortgage Applications Index decreased 1.1% following a 4.9% increase in the prior week.
Weekly crude oil inventories increased by 4.58 mln barrels after decreasing by 3.48 mln barrels during the previous week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the third estimate for Q2 GDP, and the Chicago PMI for September on Thursday.

S&P 500 +16.1% YTD
Russell 2000 +12.7% YTD
Nasdaq Composite +12.6% YTD
Dow Jones Industrial Average +12.4% YTD

Crude futures settle lower
29-Sep-21 15:30 ET
Dow +233.11 at 34533.10, Nasdaq +34.53 at 14581.21, S&P +25.13 at 4377.76

[BRIEFING.COM] The S&P 500 is up 0.6% amid gains in ten of its 11 sectors.

The utilities (+1.6%), consumer staples (+1.3%), health care (+1.1%), and real estate (+1.0%) sectors are leading the advance with gains of at least 1.0%. The materials sector (-0.2%) remains the only sector trading lower.

WTI crude futures settled lower by 0.5%, or $0.38, to $74.91/bbl. On a related note, weekly crude oil inventories increased by 4.58 mln barrels after decreasing by 3.48 mln barrels during the previous week.

[ReturntoSender]

Market Snapshot

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

Dow 33843.92 -546.80 (-1.59%)
Nasdaq 14448.58 -63.86 (-0.44%)
SP 500 4307.54 -51.92 (-1.19%)
10-yr Note -1/32 1.535
NYSE Adv 1176 Dec 2058 Vol 1.1 bln
Nasdaq Adv 2011 Dec 2185 Vol 5.8 bln

Industry Watch
Strong: Communication Services, Information Technology
Weak: Industrials, Consumer Staples, Financials, Real Estate, Materials

Moving the Market

-- Stock market fades positive open and closes sharply lower

-- Weekly initial claims were higher than expected

-- Small batch of disappointing earnings news

-- Congress passed a bill to fund government through Dec. 3

Tough ending to the third quarter
30-Sep-21 16:15 ET
Dow -546.80 at 33843.92, Nasdaq -63.86 at 14448.58, S&P -51.92 at 4307.54

[BRIEFING.COM] The S&P 500 fell 1.2% on Thursday and closed at session lows in a volatile session to end the third quarter. The Dow Jones Industrial Average declined 1.6%, the Russell 2000 declined 0.9%, and the Nasdaq Composite declined just 0.4%. Each index faded a positive start.

The broader market struggled as investors had to contend with some softening economic data, disappointing earnings news, continued uncertainty on infrastructure, and even some quarter-end machinations. The Invesco S&P 500 Equal Weight ETF (RSP 149.82, -2.51, -1.7%) declined 1.7%.

All 11 S&P 500 sectors closed lower, as selling interest accelerated into the close on no specific news. The industrials sector (-2.1%) led the retreat with a 2% decline while the communication services sector (-0.4%) outperformed on a relative basis with a 0.4% decline.

Specifying the data, weekly initial claims were higher than expected at 362,000 (Briefing.com consensus 340,000), China's September Manufacturing PMI entered contraction territory with a reading of 49.6, and the Chicago PMI decreased to 64.7 in September (Briefing.com consensus 65.0) from 66.8 in August.

In the corporate space, retail stocks were weak after Bed Bath & Beyond (BBBY 17.29, -4.92, -22.1%) provided terrible earnings results and guidance. BBBY shares dropped 22%. CarMax (KMX 127.96, -18.49, -12.6%) missed EPS estimates, and McCormick (MKC 81.03, -2.66, -3.2%) trimmed its FY21 EPS guidance due to ongoing supply chain issues.

Moving on, Congress passed the continuing resolution bill to fund the government through Dec. 3, as widely expected. As a reminder, lawmakers have until around Oct. 18 to address the debt ceiling.

Separately, Merck (MRK 75.11, +0.02, +0.03%) was spared from the selling activity after the company confirmed an acquisition of Acceleron Pharma (XLRN 174.20, -1.16, -0.7%) for approximately $11.5 billion, or $180.00 per share, in cash.

The Treasury market was relatively quiet for the second straight day, although that was partially due to the negative bias in stocks and the relatively disappointing economic data. The 10-yr yield decreased one basis point to 1.53% while the 2-yr yield was unchanged at 0.29%. The U.S. Dollar Index decreased 0.1% to 94.25. WTI crude futures increased 0.2%, or $0.16, to $75.07/bbl.

Reviewing Thursday's economic data:

Initial jobless claims for the week ending September 25 increased by 11,000 to 362,000 (Briefing.com consensus 340,000). Continuing claims for the week ending September 18 decreased by 18,000 to 2.802 million.
The key takeaway from the report is the surprisingly high number of initial jobless claims when job openings are at a record high and confidence is building that the dampening effects of the Delta variant are lifting.
The third estimate for Q2 GDP checked in at 6.7% (Briefing.com consensus 6.7%) versus the second estimate of 6.6%. The GDP Deflator was unchanged at 6.1% (Briefing.com consensus 6.1%).
The key takeaway from the report is that its dated nature (released on the last day of the third quarter), and the lack of any meaningful change from the second estimate, have robbed it of any market-moving influence.
The Chicago PMI decreased to 64.7 in September (Briefing.com consensus 65.0) from an unrevised reading of 66.8 in August.

Looking ahead to Friday, investors will receive the ISM Manufacturing Index for September, Personal Income and Spending for August, PCE Prices for August, the final Univ. of Michigan Index of Consumer Sentiment for September, Construction Spending for August, and the final Markit Manufacturing PMI for September.

S&P 500 +14.7% YTD
Nasdaq Composite +12.1% YTD
Russell 2000 +11.6% YTD
Dow Jones Industrial Average +10.6% YTD

WTI crude futures settle above $75 per barrel
30-Sep-21 15:30 ET
Dow -302.05 at 34088.67, Nasdaq +42.06 at 14554.50, S&P -17.61 at 4341.85

[BRIEFING.COM] The S&P 500 is down 0.4% in a volatile session. The benchmark index was up 0.5% in early action and was down 1.0% earlier today.

One last look at the sector standings shows industrials (-1.2%), consumer staples (-1.2%), and financials (-1.0%) underperforming with 1% declines. The communication services (+0.3%) and information technology (+0.1%) sectors are clinging onto small gains.

WTI crude futures settled higher by 0.2%, or $0.16, to $75.07/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34003.19 -323.27 (-0.94%)
Nasdaq 14255.49 -311.21 (-2.14%)
SP 500 4300.49 -56.55 (-1.30%)
10-yr Note -23/32 1.476
NYSE Adv 1174 Dec 2107 Vol 1.0 bln
Nasdaq Adv 1259 Dec 2797 Vol 4.5 bln

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

Moving the Market

-- Weakness in the mega-cap stocks

-- Facebook (FB) fell 5% amid whistleblower complaint

-- Energy stocks followed oil prices higher

-- Infrastructure expectations dialed back

Mega-caps dragged market lower
04-Oct-21 16:15 ET
Dow -323.27 at 34003.19, Nasdaq -311.21 at 14255.49, S&P -56.55 at 4300.49

[BRIEFING.COM] The S&P 500 fell 1.3% on Monday, coughing up last Friday's rebound rally, amid noticeable weakness in the mega-cap stocks. The Nasdaq Composite was disproportionally affected with a 2.1% decline while the Dow Jones Industrial Average (-0.9%) and Russell 2000 (-1.1%) declined closer to 1.0%.

The major indices, except for the Nasdaq, started the session little changed, but it didn't take long for the mega-cap losses to trickle over to the broader market. The disappointing price action extended a recent trend of selling into strength amid unresolved issues on infrastructure, the debt ceiling, supply chain logistics, and raw material inflation.

The Vanguard Mega Cap Growth ETF (MGK 232.18, -5.33) fell 2.2% while the Invesco S&P 500 Equal Weight ETF (RSP 150.88, -0.96) declined 0.6%. Eight of the 11 S&P 500 sectors finished lower, led by the information technology (-2.4%) and communication services (-2.1%) sectors with losses over 2.0%.

Facebook (FB 326.23, -16.78, -4.9%) was the big loser amid claims from a whistleblower that the company prioritized profits over safety. The semiconductor space was another weak spot amid an observation from Marvell (MRVL 57.59, -2.24, -3.7%) that the semiconductor shortage could extend through 2022. The Philadelphia Semiconductor Index fell 2.5%.

The energy (+1.6%), utilities (+1.4%), and real estate (+0.1%) sectors bucked the negative trend. Energy stocks followed oil prices ($77.69/bbl, +1.82, +2.4%) higher after OPEC+ agreed to maintain its plan for gradual supply increases, which was expected.

Tesla (TSLA 781.53, +6.31, +0.8%) was spared from the mega-cap selling after the company reported a record number of deliveries (241,300 vehicles) in the third quarter.

In Washington, the House will reportedly delay its vote on the $1 trillion bipartisan infrastructure bill until a deal is reached on the larger reconciliation package. President Biden suggested the latter could be trimmed down to $1.9-2.3 trillion from $3.5 trillion. Separately, the USTR confirmed that current Chinese tariffs will remain in place.

U.S. Treasuries settled mostly lower, meaning yields rose modestly. The 10-yr yield increased two basis points to 1.48%, and the 2-yr yield increased one basis point to 0.27%. The U.S. Dollar Index decreased 0.3% to 93.78.

Monday's economic data was limited to Factory Orders for August, which increased 1.2% (Briefing.com consensus 1.0%) following an upwardly revised 0.7% increase (from +0.4%) in July. On Tuesday, investors will receive the ISM Non-Manufacturing Index for September, the Trade Balance for August, and the final IHS Markit Services PMI for September.

S&P 500 +14.5% YTD
Russell 2000 +12.4% YTD
Nasdaq Composite +10.6% YTD
Dow Jones Industrial Average +11.1% YTD

Crude futures settle sharply higher
04-Oct-21 15:30 ET
Dow -375.53 at 33950.93, Nasdaq -355.63 at 14211.07, S&P -66.88 at 4290.16

[BRIEFING.COM] The S&P 500 continues to struggle with a 1.5% decline amid losses in eight of its 11 sectors.

The information technology (-2.7%) and communication services (-2.5%) sectors are down more than 2.0% amid weakness in their mega-cap components and the semiconductor stocks. Conversely, the energy (+1.6%), utilities (+1.2%), and real estate (+0.1%) sectors trade higher.

WTI crude futures settled higher by 2.4%, or $1.82, to $77.69/bbl. On a related note, OPEC+ agreed to maintain its plan for gradual supply increases, which was expected.

[ReturntoSender]

Market Snapshot

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

Dow 35294.76 +382.20 (1.09%)
Nasdaq 14897.33 +73.91 (0.50%)
SP 500 4471.37 +33.11 (0.75%)
10-yr Note -5/32 1.574
NYSE Adv 1561 Dec 1653 Vol 980.0 mln
Nasdaq Adv 1850 Dec 2461 Vol 4.4 bln

Industry Watch
Strong: Consumer Discretionary, Financials, Industrials
Weak: Consumer Staples, Utilities, Communication Services

Moving the Market

-- Upside surprise in the retail sales report for September

-- Better-than-expected earnings reports

-- S&P 500 increases distance above 50-day moving average (4437)

S&P 500 boosted by retail sales data, earnings, technical factors
15-Oct-21 16:15 ET
Dow +382.20 at 35294.76, Nasdaq +73.91 at 14897.33, S&P +33.11 at 4471.37

[BRIEFING.COM] The S&P 500 gained 0.8% on Friday, supported by an upside surprise in the retail sales report for September, better-than-expected earnings news, and improving technical factors. The Dow Jones Industrial Average rose 1.1%, while the Nasdaq Composite increased just 0.5% and the Russell 2000 fell 0.4%.

Briefly, total retail sales in September were up 0.7% m/m (Briefing.com consensus -0.3%), reflecting resilient consumer demand amid higher prices. Amazon.com (AMZN 3409.02, +109.16, +3.3%) took the news in stride, carrying the S&P 500 consumer discretionary sector (+1.8%) to a first-place finish.

The financials sector (+1.5%) was next in line amid higher Treasury yields and earnings-driven gains in Goldman Sachs (GS 406.07, +14.87, +3.8%) and Charles Schwab (SCHW 80.90, +2.79, +3.6%). The industrials sector (+1.0%) benefited from J.B. Hunt Transport's (JBHT 190.55, +15.31, +8.7%) better-than-expected earnings report.

Conversely, the counter-cyclical consumer staples (-0.2%), utilities (-0.2%), and communication services (-0.1%) sectors finished in negative territory. The latter was pressured by Facebook (FB 324.76, -3.77, -1.2%), which was added to the Tactical Underperform List at Evercore ISI.

Notably, the 10-yr yield rose six basis points to 1.58%, but that didn't upset the growth stocks too much presumably because it remained below recent highs. The Russell 1000 Growth Index (+0.8%) outpaced the Russell 1000 Value Index (+0.6%) in percentage terms.

On the technical side, the S&P 500 increased its distance above its 50-day moving average (4437) after closing above the key technical level yesterday. This positive price action was likely viewed as a good indicator among traders.

In vaccine news, an FDA advisory committee unanimously recommended Johnson & Johnson's (JNJ 161.30, +1.19, +0.7%) booster COVID-19 shot for people 18 and older. The FDA, however, is reportedly delaying a decision on Moderna's (MRNA 324.21, -7.67, -2.3%) vaccine for the 12-17 age group to review the risks of a rare heart condition.

The 2-yr yield rose five basis points to 0.40%. The U.S. Dollar Index finished little changed at 93.94. WTI crude futures rose 1.2%, or $0.98, to $82.26/bbl.

Reviewing Friday's economic data, which featured the Retail Sales report for September:

Total retail sales in September were up 0.7% month-over-month (Briefing.com consensus -0.3%) following an upwardly revised 0.9% increase (from 0.7%) in August. Excluding autos, retail sales jumped 0.8% month-over-month (Briefing.com consensus +0.4%) following an upwardly revised 2.0% increase (from 1.8%) in August.
The key takeaway from the report is the recognition that the broad-based sales increases reflect a rebound from some of the Delta-related restraint shown in August and presumably price increases that are a byproduct of supply chain constraints and higher transportation costs.
The preliminary October University of Michigan Index of Consumer Sentiment dropped to 71.4 (Briefing.com consensus 73.5) from the final reading of 72.8 for September, leaving it pinned near the lows that were registered last year following the shutdown of the economy to combat the spread of COVID.
The key takeaway from the report is the finding that confidence in economic policies is fading regardless of political affiliation, as well as across all age, income, and education subgroups.
Business inventories increased 0.6% m/m in August (Briefing.com consensus 0.7%) following an upwardly revised 0.6% increase (from +0.5%) in July.
Import prices increased 0.4% in September after decreasing 0.3% in August. Excluding oil, import prices were flat after decreasing 0.1% in August. Export prices increased 0.1% after increasing 0.4% in August. Excluding agriculture, export prices increased 0.3% after increasing a revised 0.3% (from 0.2%) in August.

Looking ahead, investors will receive Industrial Production and Capacity Utilization for September, the NAHB Housing Market Index for October, and Net Long-Term TIC Flows for August on Monday.

S&P 500 +19.0% YTD
Nasdaq Composite +15.6% YTD
Dow Jones Industrial Average +15.3% YTD
Russell 2000 +14.7% YTD

Crude futures settle above $82 per barrel
15-Oct-21 15:30 ET
Dow +403.38 at 35315.94, Nasdaq +74.77 at 14898.19, S&P +34.19 at 4472.45

[BRIEFING.COM] The S&P 500 is up 0.7% and on track to end the week with a 1.8% gain.

One last look at the sector performances shows financials (+1.7%), consumer discretionary (+1.7%), and industrials (+1.1%) up more than 1.0%, while the consumer staples (-0.4%), utilities (-0.4%), real estate (-0.3%), and communication services (-0.1%) sectors trade lower.

WTI crude futures settled higher by 1.2%, or $0.98, to $82.26/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 35259.14 -35.62 (-0.10%)
Nasdaq 15021.80 +124.47 (0.84%)
SP 500 4486.48 +15.11 (0.34%)
10-yr Note -23/32 1.587
NYSE Adv 1566 Dec 1669 Vol 779.0 mln
Nasdaq Adv 2003 Dec 2432 Vol 4.1 bln

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

Moving the Market

-- Resilient price action

-- Oil prices and interest rates back down from prior highs

-- Strength in the mega-caps

Mega-caps lift S&P 500 to a fourth straight gain
18-Oct-21 16:20 ET
Dow -35.62 at 35259.14, Nasdaq +124.47 at 15021.80, S&P +15.11 at 4486.48

[BRIEFING.COM] The S&P 500 increased 0.3% on Monday, overcoming an early 0.5% decline for its fourth straight gain. The mega-caps did the heavy lifting and drove the outperformance of the Nasdaq Composite (+0.8%). The Dow Jones Industrial Average (-0.1%) and Russell 2000 (+0.1%) finished closer to their flat lines, with the Dow in the red.

Seven of the 11 S&P 500 sectors closed higher, led by the heavily-weighted consumer discretionary (+1.2%), information technology (+0.9%), and communication services (+0.7%) sectors. Conversely, the utilities (-0.7%), health care (-0.7%), consumer staples (-0.5%), and materials (-0.1%) sectors closed lower.

The negative start was attributed to softer-than-expected data out of China (Q3 GDP, industrial production, and fixed asset management), a 1.3% m/m decline in U.S. industrial production for September (Briefing.com consensus +0.2%), and higher interest rates as oil prices broke above $83.00/bbl.

The stock market quickly recouped losses, though, as oil prices and Treasury yields backpedaled from early highs on no specific news. WTI crude futures settled higher by just 0.2%, or $0.18, to $82.44/bbl. The 10-yr yield settled higher by one basis point to 1.58% after flirting with 1.63% intraday.

The retracement in yields was a supportive factor for the growth stocks, especially the mega-caps, which padded gains in the afternoon while the broader market tracked sideways. The Vanguard Mega Cap Growth ETF (MGK 246.21, +2.51) rose 1.0%, while the Invesco S&P 500 Equal Weight ETF (RSP 155.76, +0.06, +0.04%) closed little changed.

Apple (AAPL 146.55, +1.71, +1.2%) seemed to provide an additional boost in the mega-cap trade after unveiling a new MacBook Pro, the third generation of AirPods, and a new subscription tier for Apple Music. AAPL shares rose 1.2% after being up 0.3% right before its product event.

Walt Disney (DIS 171.17, -5.29, -3.0%), however, was an individual drag on the Dow after the stock was downgraded to Equal Weight from Overweight at Barclays. The firm expressed caution in the company achieving its long-term streaming subscription guidance. Disney shares fell 3.0%.

The 2-yr yield increased two basis points to 0.42%. The U.S. Dollar Index was little changed at 93.96.

Reviewing Monday's economic data:

Total industrial production decreased 1.3% in September (Briefing.com consensus +0.2%) following a downwardly revised 0.1% decline in August (from +0.4%). The capacity utilization rate dropped to 75.2% (Briefing.com consensus 76.5%) from a downwardly revised 76.2% in August (from 76.4%).
The key takeaway from the report is that industrial production was weak in September due to the effects of Hurricane Ida and the ongoing semiconductor supply shortage.
The NAHB Housing Market Index increased to 80 in October (Briefing.com consensus 75) from 76 in September.

Looking ahead, investors will receive Housing Starts and Building Permits for September on Tuesday.

S&P 500 +19.5% YTD
Nasdaq Composite +16.6% YTD
Dow Jones Industrial Average +15.2% YTD
Russell 2000 +14.8% YTD

Crude futures pare early gains and settle slightly higher
18-Oct-21 15:30 ET
Dow -55.86 at 35238.90, Nasdaq +116.99 at 15014.32, S&P +12.92 at 4484.29

[BRIEFING.COM] The S&P 500 is up 0.3% and is vying for its fourth straight advance.

One last look at the sector performances shows information technology (+0.8%), consumer discretionary (+1.2%), and communication services (+0.5%) leading the advance amid strength in the mega-caps, while the health care (-0.7%), utilities (-0.7%), and consumer staples (-0.4%)

WTI crude futures settled higher by just 0.2%, or $0.18, to $82.44/bbl after peaking at $83.19/bbl intraday.

[ReturntoSender]

Market Snapshot

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

Dow 35603.08 -6.26 (-0.02%)
Nasdaq 15215.69 +94.02 (0.62%)
SP 500 4549.78 +13.59 (0.30%)
10-yr Note -2/32 1.684
NYSE Adv 1506 Dec 1701 Vol 829.1 mln
Nasdaq Adv 2245 Dec 2185 Vol 4.8 bln

Industry Watch
Strong: Consumer Discretionary, Information Technology, Health Care
Weak: Energy, Materials, Financials, Consumer Staples

Moving the Market

-- S&P 500 ekes out intraday and closing record highs

-- Mega-cap strength, including from Tesla (TSLA) following its earnings report

-- IBM (IBM) drops nearly 10.0% after missing revenue estimates

-- Treasury yields rise amid encouraging weekly initial and continuing claims report

S&P 500 sets intraday and closing record highs
21-Oct-21 16:20 ET
Dow -6.26 at 35603.08, Nasdaq +94.02 at 15215.69, S&P +13.59 at 4549.78

[BRIEFING.COM] There was no quit in the stock market on Thursday, as the S&P 500 (+0.3%) eked out intraday and closing record highs and extended its win streak to seven straight sessions. The Nasdaq Composite gained 0.6%, and the Russell 2000 gained 0.3%. The Dow Jones Industrial Average (-0.02%), however, closed flat.

The mega-caps were the difference makers today, featuring an earnings-driven gain in Tesla (TSLA 894.00, +28.20, +3.3%), even as interest rates moved higher. The Vanguard Mega Cap Growth ETF (MGK 249.02, +1.76) rose 0.7%, and for comparison, the Invesco S&P 500 Equal Weight ETF (RSP 158.06, +0.19) increased just 0.1%.

Tesla overcame an initial negative reaction and led the S&P 500 consumer discretionary sector (+1.4%) to a first-place finish. Every other sector, except energy (-1.8%), finished closer to their flat lines. Energy stocks followed oil prices ($82.49/bbl, -1.76, -2.1%) lower.

Shares of IBM (IBM 128.33, -13.57, -9.6%) dropped nearly 10.0% after missing revenue estimates on flat year-over-year growth. IBM dragged on the Dow, and to a lesser extent, so did Dow Inc. (DOW 59.26, -0.63, -1.1%) following its earnings report. Earnings reactions were generally mixed.

It's worth noting that the broad market firmed up into the close, as investors looked past those mixed earnings reactions, calls that the market was overextended on a short-term basis, and reports highlighting continued disagreement on infrastructure. Presumably, there were fears of missing out on a break-out rally in the S&P 500.

Demand for shorter-term and longer-term Treasuries waned, as investors digested the implications from weekly initial and continuing claims declining to their lowest levels since the start of the pandemic. Initial jobless claims were 290,000 (Briefing.com consensus 303,000), coming in below 300,000 for the second straight week.

The 2-yr yield rose five basis points to 0.43% amid increased expectations for the Fed to hike rates sooner than forecasted. The 10-yr yield rose four basis points to 1.68% amid expectations for improved economic growth. The U.S. Dollar Index increased 0.2% to 93.78.

Reviewing Thursday's economic data:

Initial claims for the week ending October 16 decreased by 6,000 to 290,000 (Briefing.com consensus 303,000). That is the second straight week they have been below 300,000 and it is the lowest level of initial claims since March 14, 2020. Continuing claims for the week ending October 9 decreased by 122,000 to 2.481 million, and that, too, was the lowest level for continuing claims since March 14, 2020.
The key takeaway from the report is that it is apt to spur elevated expectations for October nonfarm payrolls since the data for initial claims coincides with the week in which the household survey is completed for the Employment Situation Report.
Existing home sales increased 7.0% m/m in September to a seasonally adjusted annual rate of 6.29 million (Briefing.com consensus 6.05 million). Total sales in September were down 2.3% from a year ago.
The key takeaway from the report is that the median price increase was the lowest since December 2020, but even so, it continues to exceed income growth. The bottom line is that prices remain high, inventory remains tight, and first-time buyers continue to get squeezed by that dynamic.
The Conference Board's Leading Economic Index (LEI) increased 0.2% in September (Briefing.com consensus +0.5%) after increasing a downwardly revised 0.8% (from 0.9%) in August.
The Philadelphia Fed Index for October decreased to 23.8 (Briefing.com consensus 24.5) from 30.7 in September.

Looking ahead, investors will receive the preliminary IHS Markit Manufacturing and Services PMIs for October on Friday.

S&P 500 +21.1% YTD
Nasdaq Composite +18.1% YTD
Dow Jones Industrial Average +16.3% YTD
Russell 2000 +16.3% YTD

[ReturntoSender]

Market Snapshot

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

Dow 35677.02 +73.94 (0.21%)
Nasdaq 15090.19 -125.50 (-0.82%)
SP 500 4544.90 -4.88 (-0.11%)
10-yr Note +25/32 1.664
NYSE Adv 1624 Dec 1601 Vol 763.4 mln
Nasdaq Adv 1944 Dec 2540 Vol 5.6 bln

Industry Watch
Strong: Financials, Energy, Consumer Staples, Real Estate
Weak: Communication Services, Information Technology, Consumer Discretionary

Moving the Market

-- S&P 500 and Dow set all-time highs but only the Dow closes at a record high

-- American Express (AXP) carries the financials sector following its earnings report

-- Snap (SNAP) drops 27% after earnings, weighs on communication services sector

S&P 500 snaps lengthy winning streak
22-Oct-21 16:20 ET
Dow +73.94 at 35677.02, Nasdaq -125.50 at 15090.19, S&P -4.88 at 4544.90

[BRIEFING.COM] The S&P 500 eked out an intraday record high on Friday, but it closed lower by 0.1% and snapped a seven-session winning streak. The Dow Jones Industrial Average (+0.2%) set intraday and closing record highs with a modest gain, while the Nasdaq Composite (-0.8%) and Russell 2000 (-0.2%) closed lower.

The broader market looked like the Dow, as the Invesco S&P 500 Equal Weight ETF (RSP 158.51, +0.45) rose 0.3% to record highs. Seven of the 11 S&P 500 sectors closed higher, led by financials (+1.3%) with some earnings help from American Express (AXP 187.08, +9.61, +5.4%).

The communication services sector (-2.3%) was the big loser in response to Snap's (SNAP 55.14, -19.97, -26.6%) disappointing earnings report/guidance. The latter was attributed to Apple's (AAPL 148.69, -0.79, -0.5%) privacy changes and supply chain issues affecting Snap's advertising partners.

Alphabet (GOOG 2772.50, -83.11, -2.9%), Facebook (FB 324.61, -17.27, -5.1%), and to a lesser extent, Amazon.com (AMZN 3335.55, -99.46, -2.9%) were pressured by Snap's commentary. These mega-cap losses largely accounted for the underperformance of the Nasdaq.

Amazon also held back the consumer discretionary sector (-0.3%) while Intel (INTC 49.46, -6.54, -11.7%) held back the information technology sector (-0.3%) following its earnings report. INTC shares dropped nearly 12.0% amid disappointing margin guidance.

Honeywell (HON 217.40, -7.12, -3.2%), V.F. Corp (VFC 70.74, -3.33, -4.5%), and Beyond Meat (BYND 95.80, -12.82, -11.8%), among others also highlighted supply chain challenges. Honeywell and Beyond Meat provided disappointing revenue guidance.

The stock market for the most part was unfazed by the challenging economic environment. Today's action mirrored consolidation activity with investors possibly more fearful of missing out on further gains. Growth concerns were mainly manifested in Treasury market, which saw some curve-flattening activity.

The 2-yr yield rose four basis points to 0.47% amid increased expectations for the Fed to hike rates sooner than expected due to inflation. The 10-yr yield decreased two basis points to 1.66%. The U.S. Dollar Index decreased 0.2% to 93.62. WTI crude futures rose 1.6%, or $1.28, to $83.77/bbl.

Reviewing Friday's economic data:

The preliminary IHS Markit Manufacturing PMI decreased to 59.2 in October from 60.7 in September. The preliminary IHS Markit Services PMI increased to 58.2 in October from 54.9 in September.

There is no economic data scheduled for Monday.

S&P 500 +21.0% YTD
Nasdaq Composite +17.1% YTD
Dow Jones Industrial Average +16.6% YTD
Russell 2000 +16.0% YTD

WTI crude futures settle higher
22-Oct-21 15:30 ET
Dow +53.46 at 35656.54, Nasdaq -137.98 at 15077.71, S&P -8.24 at 4541.54

[BRIEFING.COM] The S&P 500 is trading lower by 0.2% and on track to snap its lengthy winning streak. Still plenty of time left, though.

One last look at the S&P 500 sectors shows financials (+1.3%), consumer staples (+0.8%), and energy (+0.7%) leading the market in gains, while the communication services (-2.4%), consumer discretionary (-0.7%), and materials (-0.1%) sectors trade lower.

WTI crude futures settled higher higher by 1.6%, or $1.28, to $83.77/bbl, reflecting persistent inflation pressures.

[ReturntoSender]

Market Snapshot

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

Dow 36142.22 +54.77 (0.15%)
Nasdaq 15973.86 +120.01 (0.76%)
SP 500 4700.90 +18.10 (0.39%)
10-yr Note -1/32 1.627
NYSE Adv 1477 Dec 1750 Vol 787.2 mln
Nasdaq Adv 2099 Dec 2485 Vol 5.4 bln

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

Moving the Market

-- Better-than-expected economic data, including retail sales for October

-- Walmart (WMT) and Home Depot (HD) reported better-than-expected earnings results, but WMT shares closed lower

-- Credit Suisse assumed coverage on Microsoft (MSFT) and other software stocks with Outperform ratings

S&P 500 closes shy of a record high
16-Nov-21 16:20 ET
Dow +54.77 at 36142.22, Nasdaq +120.01 at 15973.86, S&P +18.10 at 4700.90

[BRIEFING.COM] The S&P 500 gained 0.4% on Tuesday, and just missed closing at a record high, amid a host of positive-sounding developments. The Nasdaq Composite outperformed with a 0.8% gain, while the Dow Jones Industrial Average (+0.2%) and Russell 2000 (+0.2%) both increased just 0.2%.

The heavily-weighted information technology (+1.1%) and consumer discretionary (+1.4%) sectors provided steady leadership with gains over 1.0%, but the broader market slipped into the close on no specific news.

Seven of the 11 S&P 500 sectors closed lower, including real estate (-0.7%), consumer staples (-0.6%), and utilities (-0.6%) as laggards. Declining issues outnumbered advancing issues at the NYSE and Nasdaq. Evidently, the index gains belied a negative-leaning session.

At its high, the S&P 500 was up 0.7% in part due to today's economic data: retail sales for October, industrial production and capacity utilization for October, and the NAHB Housing Market Index for November were each better than expected. Total retail sales were up 1.7% m/m in October (Briefing.com consensus +1.2%).

In addition, Walmart (WMT 143.17, -3.74, -2.6%) and Home Depot (HD 392.33, +21.25, +5.7%) reported better-than-expected earnings results, Microsoft (MSFT 339.51, +3.44, +1.0%) and other software stocks were assumed with Outperformed ratings at Credit Suisse, and Qualcomm (QCOM 181.81, +13.30, +7.9%) provided pleasing updates on its Investor Day.

Interestingly, shares of Walmart fell 2.6% despite the good news, perhaps due to some disappointment that the company plans to eat some of the higher costs in order to keep prices low.

Separately, President Biden said he will nominate a Fed Chair in "about four days." On a related note, San Francisco Fed President Daly (2021 voting member) reiterated expectations for a moderation in price pressures as the pandemic recedes.

The Treasury market held steady, even as import and export prices stayed hot in October. The 2-yr yield was unchanged at 0.52%, and the 10-yr yield increased one basis point to 1.63%. The U.S. Dollar Index advanced 0.6% to 95.96. WTI crude futures decreased 0.1%, or $0.08, to $80.77/bbl.

Reviewing Tuesday's economic data:

Total retail sales increased 1.7% month-over-month in October (Briefing.com consensus +1.2%) on top of an upwardly revised 0.8% increase (from 0.7%) in September. Excluding autos, retail sales also rose 1.7% (Briefing.com consensus +0.9%) following a downwardly revised 0.7% increase (from 0.8%) in September.
The key takeaway from the report is that spending picked up across most retail categories, reflecting the dissipating impact of the Delta variant. The lone exceptions were health and personal care stores (-0.6%) and clothing and clothing accessories stores (-0.7%).
Total industrial production increased 1.6% in October (Briefing.com consensus +0.8%) following an unrevised 1.3% decline in September. The capacity utilization rate rose to 76.4% (Briefing.com consensus 75.9%) from an unrevised 75.2% in September. That was the highest capacity utilization rate since January 2019.
The key takeaway from the report is that it points to a lot of latent growth potential when the semiconductor supply shortage, and other supply chain issues, can get worked out.
The NAHB Housing Market Index increased to 83.0 in November (Briefing.com consensus 80.0) from 80.0 in October.
Business inventories increased 0.7% m/m in September (Briefing.com consensus 0.6%) following an upwardly revised 0.8% increase (from +0.6%) in August.
Import prices jumped 1.2% month-over-month and export prices increased 1.5%. On a year-over-year basis, import prices were up 10.7% (+5.5% excluding fuel) and export prices were up 18.0% (+17.2% excluding agricultural exports).

Looking ahead, investors will receive Housing Starts and Building Permits for October and the weekly MBA Mortgage Applications Index on Wednesday.

S&P 500 +25.2% YTD
Nasdaq Composite +23.9% YTD
Russell 2000 +21.8% YTD
Dow Jones Industrial Average +18.1% YTD

Crude futures settle fractionally lower
16-Nov-21 15:30 ET
Dow +117.00 at 36204.45, Nasdaq +120.96 at 15974.81, S&P +24.20 at 4707.00

[BRIEFING.COM] The S&P 500 continues to trade higher by 0.5% and is on pace to close at a record high.

One last look at the sectors shows information technology (+1.1%) and consumer discretionary (+1.3%) setting the pace with gains over 1.0%. Conversely, the real estate (-0.6%), consumer staples (+0.4%), communication services (-0.3%), and utilities (-0.3%) sectors underperform in the red.

WTI crude futures settled lower by 0.1%, or $0.08, to $80.77/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 35601.98 -268.97 (-0.75%)
Nasdaq 16057.45 +63.73 (0.40%)
SP 500 4697.96 -6.58 (-0.14%)
10-yr Note +5/32 1.539
NYSE Adv 1142 Dec 2148 Vol 947.2 mln
Nasdaq Adv 1741 Dec 2871 Vol 4.8 bln

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

Moving the Market

-- Nasdaq sets intraday and closing record highs amid mega-cap strength

-- Austria announces COVID lockdown

-- House passes $1.75 trillion Build Back Better Act

-- 10-yr yield drops along with oil prices

Nasdaq closes at record high amid COVID concerns
19-Nov-21 16:20 ET
Dow -268.97 at 35601.98, Nasdaq +63.73 at 16057.45, S&P -6.58 at 4697.96

[BRIEFING.COM] The S&P 500 lost 0.1% on Friday, while the Nasdaq Composite (+0.4%) set intraday and closing record highs as investors continued to bid up the mega-caps amid COVID-19 concerns. The Dow Jones Industrial Average (-0.8%) and Russell 2000 (-0.9%) declined closer to 1.0%.

Faced with rising COVID-19 cases and hospitalizations, Austria announced a nationwide lockdown, starting Monday and lasting for a minimum of ten days. Reports suggested Germany could follow suit with similar measures, exacerbating concerns about slower growth and giving some investors an excuse to avoid cyclical stocks.

Accordingly, investors assumed a defensive mindset that permeated the market: Apple (AAPL 160.55, +2.68, +1.7%) and other mega-caps set record highs, the 10-yr yield dropped five basis points to 1.54%, the U.S. Dollar Index (96.03, +0.49, +0.5%) rose 0.5%, and the S&P 500 information technology sector (+0.8%) finished atop the leaderboard.

Likewise, oil prices ($76.11, -2.81, -3.6%) extended recent losses on the prospects for softer demand and increased supply if countries tap into their oil reserves as speculated. That took a toll on the energy sector (-3.9%), which led all sectors in losses with a 4% decline.

Outside the energy space, the financials sector (-1.1%) was really the only other weak spot with the curve-flattening activity in Treasuries -- the 2-yr yield increased one basis point to 0.51%, narrowing the 2s-10s spread by six basis points. No other sector fell more than 0.7%.

Supportive considerations included the House passing the $1.75 trillion Build Back Better Act and a CDC advisory committee recommending in a unanimous vote for all adults to get COVID-19 booster shots from Pfizer (PFE 50.80, -0.61, -1.2%) or Moderna (MRNA 263.78, +12.37, +4.9%) six months after the second dose.

On a related note, the CBO estimated that the Build Back Better Act would add approximately $160 billion to the budget deficit over ten years when accounting for the revenue from increased tax enforcement. The bill heads over to the Senate, where it will likely be amended, according to media reports.

Shares of Intuit (INTU 692.34, +63.40, +10.1%) rose 10% after providing positive earnings results and upbeat guidance. Applied Materials (AMAT 150.03, -8.71, -5.5%), Workday (WDAY 286.60, -12.49, -4.2%), and Ross Stores (ROST 112.78, -6.74, -5.6%), however, fell between 4-6% following their earnings reports.

Investors did not receive any economic data on Friday. Looking ahead to Monday, investors can expect the Existing Home Sales report for October.

S&P 500 +25.1% YTD
Nasdaq Composite +24.6% YTD
Russell 2000 +18.7% YTD
Dow Jones Industrial Average +16.3% YTD

Crude futures extend losses
19-Nov-21 15:30 ET
Dow -271.19 at 35599.76, Nasdaq +69.57 at 16063.29, S&P -5.16 at 4699.38

[BRIEFING.COM] The S&P 500 is down 0.1%, and the Russell 2000 is down 0.7%.

One last look at the sectors shows energy getting clobbered with a 3.9% decline while the financials sector trades lower by 1.1%. The information technology (+0.8%), utilities (+0.6%), and consumer discretionary (+0.5%) sectors are the only sectors trading higher.

WTI crude futures settled sharply lower by 3.6%, or $2.81, to $76.11/bbl amid growth/supply concerns.

[ReturntoSender]

Market Snapshot

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

Dow 35804.38 -9.42 (-0.03%)
Nasdaq 15845.24 +70.09 (0.44%)
SP 500 4701.46 +10.76 (0.23%)
10-yr Note +2/32 1.651
NYSE Adv 1796 Dec 1441 Vol 750.2 mln
Nasdaq Adv 2733 Dec 1770 Vol 4.1 bln

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

Moving the Market

-- Stocks close mixed but near session highs

-- FOMC Minutes, lowest level of initial claims since 1969, hot PCE data feed into expectations for more aggressive Fed

-- Growth stocks key off an intraday turnaround in the 10-yr yield

Stocks close mixed with the Fed in mind
24-Nov-21 16:15 ET
Dow -9.42 at 35804.38, Nasdaq +70.09 at 15845.24, S&P +10.76 at 4701.46

[BRIEFING.COM] The S&P 500 gained 0.2% on Wednesday, overcoming an early 0.7% decline, as the market adjusted to the thought of the Fed tightening policy more aggressively. The Nasdaq Composite (+0.4%) and Russell 2000 (+0.2%) also completed their own comebacks, while the Dow Jones Industrial Average (-0.03%) closed fractionally lower.

Six of the 11 S&P 500 sectors closed lower while five closed higher. The real estate (+1.3%) and energy (+1.0%) sectors outperformed in positive territory. The materials (-0.7%) and consumer staples (-0.3%) sectors underperformed with modest declines.

Expectations for a more aggressive Fed were corroborated by the latest economic data and Fed commentary: the FOMC Minutes from the November meeting noted that "some participants preferred a somewhat faster pace of reductions that would result in an earlier conclusion to net purchases." Weekly initial claims (199,000) fell to their lowest level since Nov. 15, 1969. The Fed's preferred inflation gauge in the PCE Price Index was up 5.0% yr/yr in October.

The market had already been pricing in this thinking, but it's worth noting that the probability for a rate hike in May 2022 increased to 54.9%, versus 45.4% yesterday, according to the CME FedWatch Tool. The fed-funds-sensitive 2-yr yield rose three basis points to 0.64%, leaving it up 13 basis points since Friday.

Strikingly, the 10-yr yield declined two basis points to 1.65% after brushing up against 1.70% in the morning. The U.S. Dollar Index rose 0.3% to 96.82. WTI crude futures were unchanged at $78.37/bbl.

This retracement happened not only in spite of the unemployment and inflation data, but a host of other data that increased on a sequential basis like personal income and spending for October, new homes sales for October, the second estimate for Q3 GDP, and the final November reading for the University of Michigan Index of Consumer Sentiment.

Nevertheless, the turnaround in the 10-yr yield was cited as a supportive factor for the rebound in the growth stocks, and in turn, the major indices.

Separately, Nordstrom (JWN 22.66, -9.27, -29.0%) and Gap (GPS 17.84, -5.67, -24.1%) were punished for reporting disappointing earnings results. Deere (DE 367.86, +18.58, +5.3%), HP Inc. (HPQ 35.44, +3.25, +10.1%), and Dell (DELL 57.30, +2.63, +4.8%), on the other hand, pulled through for shareholders.

Reviewing Wednesday's economic data:

Initial jobless claims for the week ending November 20 plunged by 71,000 to 199,000 (Briefing.com consensus 265,000), which is the lowest level of initial claims since November 15, 1969. Continuing jobless claims for the week ending November 13 decreased by 60,000 to 2.049 million.
The key takeaway from the report is that, with initial claims hitting their lowest mark since 1969, it will play into the burgeoning narrative that the Fed is going to need to be more aggressive with its tapering plans.
Personal income increased 0.5% month-over-month in October (Briefing.com consensus +0.2%) while personal spending increased 1.3% (Briefing.com consensus +1.0%). The PCE Price Index jumped 0.6%, as expected, and the core PCE Price Index, which excludes food and energy, rose 0.4%, also as expected.
The key takeaway from the report is that prices increased at a pace faster than income, stealing the purchasing power of those income gains and leading to more spending out of savings. Real disposable personal income declined 0.3% month-over-month while the personal savings rate, as a percentage of disposable personal income, fell to 7.3% from 8.2%.
New home sales increased 0.4% month-over-month in October to a seasonally adjusted annual rate of 745,000 (Briefing.com consensus 800,000) from a downwardly revised 742,000 (from 800,000) in September. On a year-over-year basis, new home sales were down 23.1%.
The key takeaway from the report is that the growth in new home sales is concentrated in higher-priced homes, as inflation pressures, exacerbated by supply constraints and labor shortages, are curtailing the building of lower-priced homes and pinching affordability for lower-income buyers.
The final November University of Michigan Index of Consumer Sentiment increased to 67.4 (Briefing.com consensus 66.8) from the preliminary reading of 66.8. The final reading for October was 71.7.
The key takeaway from the report is that the Index of Consumer Expectations has been pressured to its lowest level in a decade due to rapidly accelerating inflation and little belief that steps are being taken to mitigate rising prices. Roughly 25% of respondents said that inflation eroded their living standards in November.
The second estimate for Q3 GDP showed an upward revision to 2.1% (Briefing.com consensus 2.2%) from 2.0%. The GDP Price Deflator was revised to 5.9% (Briefing.com consensus 5.7%) from 5.7%.
The key takeaway from the report is the understanding that the change in private inventories fueled the Q3 GDP increase. Real final sales of domestic product, which excludes the change in private inventories, were flat, slightly better than 0.1% decline reported with the first estimate.
The Advance report for International Trade in Goods for October showed a deficit of $82.9 billion, versus a revised $97.0 billion (from $96.3 billion) in September. The Advance report for Retail Inventories for October decreased 0.1%, while the Advance report for Wholesale Inventories for October increased 2.2%.
The Weekly MBA Mortgage Applications Index increased 1.8% following a 2.8% decline in the prior week.

As a reminder, the market will be closed tomorrow for Thanksgiving Day and will reopen on Friday with a 1:00 p.m. ET closure.

S&P 500 +25.2% YTD
Nasdaq Composite +22.9% YTD
Russell 2000 +18.1% YTD
Dow Jones Industrial Average +17.0% YTD

Crude futures settle unchanged
24-Nov-21 15:25 ET
Dow -8.97 at 35804.83, Nasdaq +65.24 at 15840.39, S&P +10.54 at 4701.24

[BRIEFING.COM] The S&P 500 is trading at session highs with a 0.2% gain after being down 0.7% shortly after the open.

One last look at the sectors shows real estate (+1.1%) and energy (+1.0%) still in the lead with 1% gains, while the materials (-0.7%) and consumer staples (-0.3%) sectors underperform with modest losses.

WTI crude futures settled unchanged at $78.37/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 35135.94 +236.60 (0.68%)
Nasdaq 15782.85 +291.18 (1.88%)
SP 500 4655.27 +60.65 (1.32%)
10-yr Note -2/32 1.530
NYSE Adv 1787 Dec 1513 Vol 990.6 mln
Nasdaq Adv 1975 Dec 2636 Vol 4.73 bln

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

Moving the Market

Global equities and oil bounce from Friday's slide

Retailers in focus as holiday shopping season begins

Nasdaq Paces Monday Rebound
29-Nov-21 16:15 ET
Dow +236.60 at 35135.94, Nasdaq +291.18 at 15782.85, S&P +60.65 at 4655.27

[BRIEFING.COM] The stock market began the week on a strong note with the Nasdaq (+1.9%) recovering the bulk of its loss from Friday. The S&P 500 (+1.3%) and Dow (+0.7%) recorded slimmer gains, finishing near their opening levels from Friday.

Stocks rallied out of the gate as fears about the omicron coronavirus variant receded since there are no indications that this variant is more dangerous or more transmissible. In addition, the return of participants who were away on Friday contributed to the rebound.

All eleven sectors finished the day with gains. Five sectors added more than 1.0% with technology (+2.6%), consumer discretionary (+1.6%), and utilities (+1.6%) finishing in the lead.

The technology sector built on its gain as the day went on with chipmakers leading the way. The PHLX Semiconductor Index climbed 4.1% with all components rising at least 1.0%. Lam Research (LRCX 680.54, +38.56, +6.0%) was the best performer, rallying to a fresh record high.

Elsewhere in the tech sector, Microsoft (MSFT 336.63, +6.95, +2.1%) recovered its loss from Friday while Twitter (TWTR 45.78, -1.29, -2.7%) rallied out of the gate, but slid back to last week's low as the day went on. The volatility took place after Twitter CEO Dorsey announced his resignation. He will be replaced by the company's current CTO.

The consumer discretionary sector benefited from a strong showing in Tesla (TSLA 1136.99, +55.07, +5.1%) and a rebound in travel-related names like Expedia (EXPE 166.50, +6.70, +4.2%), Marriott (MAR 150.77, +3.33, +2.3%), and Royal Caribbean (RCL 69.89, +1.91, +2.8%). Retail stocks did well, though the SPDR S&P Retail ETF (XRT 96.62, -0.56, -0.6%) ended in the red due to a weak showing from a few of its top components. CNBC reported that retail store traffic on Friday was up nearly 50.0% from last year's levels but down 28.3% from 2019.

Today's rebound rally also boosted the energy sector (+0.6%) and oil, but crude spent the day in a pullback from its morning high while the energy sector followed. Crude oil ended the pit session higher by $1.67, or 2.5%, at $69.84/bbl, sliding back below its 200-day moving average (69.76) after overtaking that mark in the early morning.

The health care sector (+0.4%) finished near the bottom of the leaderboard with Pfizer (PFE 52.40, -1.60, -3.0%) reversing from a record high. The company, alongside Moderna (MRNA 368.51, +38.88, +11.8%), indicated that it can modify its vaccine formulation in a short timeframe, if necessary.

Treasuries ended in the red, but above their opening levels with the 10-yr yield rising five basis points to 1.53%.

Today's economic data was limited to the Pending Home Sales report for October, which showed a 7.5% increase (Briefing.com consensus 0.7%) while the September decrease was revised down to 2.4% from -2.3%.

The September FHFA Housing Price Index (prior 1.0%) and September S&P Case-Shiller Home Price Index (Briefing.com consensus 19.3%; prior 19.7%) will be released tomorrow at 9:00 ET, followed by November Chicago PMI (Briefing.com consensus 67.0; prior 68.4) at 9:45 ET and November Consumer Confidence (Briefing.com consensus 111.0; prior 113.8) at 10:00 ET.

S&P 500 +23.9% YTD
Nasdaq Composite +22.5% YTD
Dow Jones Industrial Average +14.8% YTD
Russell 2000 +13.5% YTD

Crude Oil Trims Intraday Gain
29-Nov-21 15:25 ET
Dow +291.47 at 35190.81, Nasdaq +316.86 at 15808.53, S&P +70.98 at 4665.60

[BRIEFING.COM] The S&P 500 trades higher by 1.6% with 30 minutes remaining in today's session.

All eleven sectors trade firmly higher going into the home stretch with six groups up at least 1.0%. The energy sector (+1.4%) was the best performer at the start, but it has slipped from the top spot as the price of crude retreated from its overnight high.

Crude oil ended the pit session higher by $1.67, or 2.5%, at $69.84/bbl. The energy component rallied past its 200-day moving average (69.76) overnight but slid back below that mark as the day went on.
Chipmakers Ahead
29-Nov-21 14:55 ET
Dow +286.32 at 35185.66, Nasdaq +308.57 at 15800.24, S&P +69.40 at 4664.02

[BRIEFING.COM] The S&P 500 (+1.5%) trades several points below its session high but it also remains several points above its opening high. The Dow (+0.8%) remains behind, sitting about a hundred points below its starting high.

The top-weighted technology sector has extended its gain to 2.7% with the PHLX Semiconductor Index now up 3.6%. Lam Research (LRCX 675.87, +33.69, +5.3%) is the best performer in the group, rallying to a fresh record, while Xilinx (XLNX 232.13, +8.18, +3.6%) is also climbing to a fresh record high.

Elsewhere, Treasuries have ticked down from intraday highs with the 10-yr yield up five basis points at 1.53% after touching 1.51% in the late morning.

[ReturntoSender]

Market Snapshot

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

Dow 34483.33 -652.61 (-1.86%)
Nasdaq 15537.71 -245.14 (-1.55%)
SP 500 4567.00 -88.27 (-1.90%)
10-yr Note +28/32 1.432
NYSE Adv 687 Dec 2646 Vol 2.0 bln
Nasdaq Adv 1404 Dec 2974 Vol 6.4 bln

Industry Watch
Strong: Information Technology
Weak: Communication Services, Utilities, Financials

Moving the Market

-- Market closes sharply lower on comments from Fed Chair Powell and Moderna (MRNA)

-- Fed Chair Powell says it's a good time to retire the word "transitory" and suggests its appropriate to taper more quickly

-- Moderna expects current vaccines to be materially less effective against the Omicron variant

Tough day for stocks amid comments from Powell and Moderna
30-Nov-21 16:20 ET
Dow -652.61 at 34483.33, Nasdaq -245.14 at 15537.71, S&P -88.27 at 4567.00

[BRIEFING.COM] The stock market fell sharply on Tuesday, as risk sentiment was first pressured by the Omicron variant and then by commentary from Fed Chair Powell about inflation and monetary policy. The S&P 500 (-1.9%), Dow Jones Industrial Average (-1.9%), and Russell 2000 (-1.9%) each declined 1.9% while the Nasdaq Composite lost 1.6%.

All 11 S&P 500 sectors closed lower with losses ranging from 1.0% (information technology) to 3.0% (communication services). The relative outperformance of the tech sector was due to a 3% gain in Apple (AAPL 165.30, +5.06, +3.2%) amid some defensive positioning, which was further evident in a nine-basis-point decline in the 10-yr yield (1.44%).

The session started modestly lower reportedly after Moderna's (MRNA 352.43, -16.08, -4.4%) CEO told the Financial Times that he expects current vaccines to be materially less effective against the Omicron variant. Notwithstanding similar comments he made to CNBC yesterday, and reports suggesting that vaccines are likely to protect against severe disease, the uncertainty upset the market.

The real weakness, however, came after Fed Chair Powell said it's time to retire the word "transitory" when describing inflation and that it's appropriate to discuss at the next policy meeting about wrapping up the taper more quickly. Mr. Powell testified on the Coronavirus and CARES Act before the Senate Banking Committee.

Investors were caught off guard because there was a thought that the Omicron variant would presumably encourage the Fed to be more patient with tapering. Instead, the Fed chair suggested he was more concerned about tailoring policy to keep inflation pressures in check.

Of course, a speedier taper plan means the Fed could hike rates sooner than previously expected. The CME FedWatch Tool increased the probabilities for a rate hike in May 2022 (44.4%) and June 2022 (69.2%) to levels seen last week.

The fed-funds-sensitive 2-yr yield went from 0.43% to 0.56% during Fed Chair Powell's Q&A session. It eventually settled unchanged at 0.52%. The U.S. Dollar Index fell 0.5% to 95.85. WTI crude futures dropped 5.3%, or $3.70, to $66.14/bbl. The CBOE Volatility Index (27.19, +4.23, +18.4%) jumped above 27.00.

Reviewing Tuesday's economic data:

The Conference Board's Consumer Confidence Index dropped to 109.5 in November (Briefing.com consensus 111.0) from a downwardly revised 111.6 (from 113.8) in October. That is the lowest reading since February 2021.
The key takeaway from the report is that concerns about rising prices and the Delta variant were the drivers of the decline in confidence. With the omicron variant now on the scene and not part of the equation for the November report, one has reason to think that consumer confidence will continue to skew to the cautious side of things.
The Chicago PMI dropped to 61.8 in November (Briefing.com consensus 67.0) from 68.4 in October.
The FHFA Housing Price Index increased 0.9% m/m in September following an unrevised 1.0% increase in August. The S&P Case-Shiller Home Price Index increased 19.1% yr/yr in September (Briefing.com consensus 19.3%) following a revised 19.6% (from 19.7%) increase in August.

Looking ahead to Wednesday, investors will receive the ISM Manufacturing Index for November, Construction Spending for October, the ADP Employment Change report for November, the Fed's Beige Book for December, the weekly MBA Mortgage Applications Index, and the final IHS Markit Manufacturing PMI for November.

S&P 500 +21.6% YTD
Nasdaq Composite +20.6% YTD
Dow Jones Industrial Average +12.7% YTD
Russell 2000 +11.4% YTD

WTI crude futures drop more than 5%
30-Nov-21 15:30 ET
Dow -627.28 at 34508.66, Nasdaq -251.62 at 15531.23, S&P -83.00 at 4572.27

[BRIEFING.COM] The S&P 500 is down 1.8%, in-line with the Dow (-1.8%), amid a dearth of buying interest.

One last look at the sectors shows red across the board with losses ranging from 1.1% (information technology) to 2.7% (communication services).

WTI crude futures settled sharply lower by 5.3%, or $3.70, to $66.14/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34580.08 -59.71 (-0.17%)
Nasdaq 15085.47 -295.85 (-1.92%)
SP 500 4538.43 -38.67 (-0.84%)
10-yr Note +23/32 1.343
NYSE Adv 877 Dec 2340 Vol 1.10 bln
Nasdaq Adv 1006 Dec 3461 Vol 5.81 bln

Industry Watch
Strong: Energy, Consumer Staples, Materials
Weak: Financials, Technology, Consumer Discretionary, Communication Services

Moving the Market

November jobs report misses headline estimates

Congress passes another short-term funding bill

Oil rising toward its 200-day moving average (69.90)

Down Week Ends on Lower Note
03-Dec-21 16:15 ET
Dow -59.71 at 34580.08, Nasdaq -295.85 at 15085.47, S&P -38.67 at 4538.43

[BRIEFING.COM] The major averages finished the week on an uninspiring note with the Nasdaq (-1.9%) pacing a daylong retreat while the S&P 500 (-0.8%) and Dow (-0.2%) recorded slimmer losses. The three indices lost a respective 2.6%, 1.2%, and 0.9% for the week.

Small caps fared even worse with the Russell 2000 (-2.1%) falling 3.9% for the week.

The sharply lower finish represented a turn from the market's higher open, which followed the release of the Employment Situation report for November. The report missed headline estimates but also contained some positive elements like upward revisions to October figures and a drop in the unemployment rate.

The headline miss in the jobs report opened the door to an argument against accelerating the Fed's taper, but the market will need to see more before reversing its expectations for tighter policy in 2022, as the implied likelihood of a rate hike in June ticked up to 73.0% from 69.9% yesterday and 62.3% one week ago.

Eight sectors ended the day in negative territory with three losing 1.0% or more. The consumer discretionary sector (-1.8%) finished at the bottom of the leaderboard, right behind technology (-1.7%) and financials (-1.5%).

Growth stocks were among today's big losers with the likes of Microsoft (MSFT 323.01, -6.48, -2.0%), NVIDIA (NVDA 306.93, -14.33, -4.5%), Amazon (AMZN 3389.79, -47.57, -1.4%), and Tesla (TSLA 1014.97, -69.63, -6.4%) falling between 1.4% and 6.4%. NVIDIA's underperformance followed news that the FTC sued to block the company from completing its $40 bln acquisition of Arm Holdings.

Besides NVIDIA, roughly 2/3 of the components of the PHLX Semiconductor Index (-0.2%) finished in the red, but the but the index outperformed thanks to a spike to a fresh record in Marvell (MRVL 83.59, +12.56, +17.7%). The stock rallied after the company beat Q3 expectations and issued above-consensus guidance for Q4.

In other earnings, DocuSign (DOCU 135.09, -98.73, -42.2%) dove to its lowest level since mid-2020 after its Q3 beat was overshadowed by weak revenue guidance for Q4.

Treasuries faced some selling during the first hour of trade, but they reversed higher as stocks surrendered their starting gains. The 10-yr yield fell 11 basis points to 1.34%, reaching its lowest level since late September.

In commodities, crude oil fell $0.26, or 0.4%, to $66.38/bbl, surrendering $1.79, or 2.6% for the week.

Reviewing today's economic data:

November nonfarm payrolls increased by 210,000 (Briefing.com consensus 525,000). The 3-month average for total nonfarm payrolls decreased to 378,000 from 469,000 in October. October nonfarm payrolls revised to 546,000 from 531,000. September nonfarm payrolls revised to 379,000 from 312,000
November private sector payrolls increased by 235,000 (Briefing.com consensus 500,000). October private sector payrolls revised to 628,000 from 604,000. September private sector payrolls revised to 424,000 from 365,000
November unemployment rate was 4.2% (Briefing.com consensus 4.5%), versus 4.6% in October. Persons unemployed for 27 weeks or more accounted for 32.1% of the unemployed versus 31.6% in October. The U6 unemployment rate, which accounts for unemployed and underemployed workers, was 7.8%, versus 8.3% in October
November average hourly earnings increased 0.3% (Briefing.com consensus 0.4%) versus a 0.4% increase in October. Over the last 12 months, average hourly earnings have risen 4.8%, versus 4.8% for the 12 months ending in October
The average workweek in November was 34.8 hours (Briefing.com consensus 34.7), versus 34.7 hours in October. Manufacturing workweek increased 0.1 hours to 40.4 hours. Factory overtime was unchanged at 3.2 hours
The labor force participation rate increased to 61.8% from 61.6%. o The employment-population ratio increased to 59.2% from 58.8% in October.
The ISM Non-Manufacturing Index for November increased to a record high 69.1% (Briefing.com consensus 65.0%) from 66.7% in October. The dividing line between expansion and contraction is 50.0%. The November reading marks the 18th straight month of growth for the services sector
The key takeaway from the report is the understanding that demand shows no signs of slowing and services sector activity, which comprises the largest swath of economic activity, continues to run at a record pace even with the constraints of labor shortages, logistics problems, and difficulty in obtaining materials
The IHS Markit Services PMI rose to 58.0 in the final reading for November from 57.0 in the preliminary reading but was down from October's final reading of 58.7
Factory orders for manufactured goods increased 1.0% m/m in October (Briefing.com consensus +0.4%) following an upwardly revised 0.5% increase (from 0.2%) in September. Shipments of manufactured goods jumped 2.0% after increasing 1.0% in September
The key takeaway from the report is that the pace of order growth remained positive for nondefense capital goods, excluding aircraft -- a proxy for business spending

The market will not receive any notable data on Monday.

S&P 500 +20.8% YTD
Nasdaq Composite +17.1% YTD
Dow Jones Industrial Average +13.0% YTD
Russell 2000 +9.3% YTD

[ReturntoSender]

Market Snapshot



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



Dow 35227.03 +646.95 (1.87%)
Nasdaq 15225.15 +139.68 (0.93%)
SP 500 4591.67 +53.24 (1.17%)
10-yr Note -25/32 1.434

NYSE Adv 2425 Dec 839 Vol 1.05 bln
Nasdaq Adv 2889 Dec 1666 Vol 5.05 bln


Industry Watch
Strong: Energy, Consumer Staples, Real Estate, Utilities, Financials, Industrials

Weak: Health Care, Technology


Moving the Market
Stocks bounce as Omicron-related concerns recede

Crude oil rebounding toward 200-day moving average (69.92)





Dow and S&P 500 Reclaim Friday Losses
06-Dec-21 16:20 ET

Dow +646.95 at 35227.03, Nasdaq +139.68 at 15225.15, S&P +53.24 at 4591.67
[BRIEFING.COM] The stock market began the week on a strong note with the S&P 500 (+1.2%) reclaiming its entire loss from Friday. The Dow (+1.9%) fared even better, rising to a one-week high, while the Nasdaq (+0.9%) managed a firmly higher close after revisiting Friday's low in early trade.

Equities benefited from an improvement in sentiment after the weekend went by without any ominous reports related to the Omicron variant of the coronavirus. This opened the door to a rebound in areas that faced the most pressure in recent days with the S&P 500 reclaiming its 50-day moving average.

All eleven sectors ended the day in positive territory with nine groups gaining at least 1.0%. The energy sector (+1.5%) finished near the top of the leaderboard thanks to a daylong rally in crude oil. WTI crude climbed $3.21, or 4.84%, to $69.59/bbl, finishing the pit session just below its 200-day moving average (69.93), which offered resistance over the past week.

The rebound in crude did not get in the way of a rally in airline stocks, as they extended their bounce off last week's lows on a receding probability of additional travel restrictions. United Airlines (UAL 43.99, +3.38, +8.3%), American Airlines (AAL 17.93, +1.31, +7.9%), and Delta Air Lines (DAL 38.14, +2.16, +6.0%) were the top performers in the industrials sector (+1.6%), which finished atop today's leaderboard. The outperformance in airline stocks had a bigger impact on the Dow Jones Transportation Average (+2.3%), lifting the group to a one-week high.

Other growth-sensitive sectors like financials (+1.4%) and materials (+1.5%) also finished ahead of the broader market while top-weighted technology (+1.0%) underperformed throughout the day, but still ended firmly in the green.

The tech sector recovered from a weak start that was owed to notable losses among chipmakers, but the PHLX Semiconductor Index ended lower by just 0.1% after being down more than 3.0% at the open. Roughly half of the group's components ended in the red while Intel (INTC 50.99, +1.74, +3.5%) was the top performer, rallying toward its 50-day moving average (51.38). The chip giant confirmed plans to hold a press conference at the Consumer Electronics Show on January 4, while competitor AMD (AMD 139.06, -4.95, -3.4%) is also planning a press conference for January 4, but its event will not be an official part of CES, inviting speculation that the company is not yet ready to unveil a response to Intel's recently-launched 12th generation of CPUs.

The health care sector (+0.5%) was the weakest performer, spending the bulk of the day at the bottom of the leaderboard. Most components finished in the green, but their gains were largely offset by a loss in Pfizer (PFE 51.48, -2.79, -5.1%) as the stock deepened its pullback from a record high.

Treasuries finished near their lows with the 10-yr yield rising nine basis points to 1.43%.

In Washington, President Biden is expected to speak with Russian President Putin amid reports of the intelligence community's concern that Russia will escalate its conflict with Ukraine in the coming months.

Tomorrow's economic data will include October Trade Balance (Briefing.com consensus -$66.80 bln; prior -$80.90 bln), revised Q3 Productivity (Briefing.com consensus -4.9%; prior -5.0%), and revised Q3 Unit Labor Costs (Briefing.com consensus 8.2%; prior 8.3%) at 8:30 ET, followed by October Consumer Credit (prior $29.90 bln) at 15:00 ET.

S&P 500 +22.3% YTD
Nasdaq Composite +18.1% YTD
Dow Jones Industrial Average +15.1% YTD
Russell 2000 +11.6% YTD



Crude Oil Nears 200-Day Average
06-Dec-21 15:35 ET

Dow +638.60 at 35218.68, Nasdaq +145.89 at 15231.36, S&P +53.89 at 4592.32
[BRIEFING.COM] The S&P 500 trades higher by 1.2% with 30 minutes remaining in the session. The benchmark index currently hovers just few points above its opening level from Friday after briefly overtaking Friday's high in midday trade.

All eleven sectors continue trading higher with ten groups up 1.0% or more. However, only the energy sector (+2.0%) is currently up more than 1.8%.

The energy sector rallied to a fresh high as crude oil padded its gain ahead of the pit close. The energy component gained $3.21, or 4.8%, rising to $69.59/bbl with its 200-day moving average (69.93) looming just above.

[ReturntoSender]

Market Snapshot

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

Dow 35719.43 +492.40 (1.40%)
Nasdaq 15686.91 +461.76 (3.03%)
SP 500 4686.75 +95.08 (2.07%)
10-yr Note -10/32 1.480
NYSE Adv 2590 Dec 690 Vol 1.02 bln
Nasdaq Adv 3433 Dec 1121 Vol 5.00 bln

Industry Watch
Strong: Technology, Financials, Energy, Consumer Discretionary
Weak: Consumer Staples, Utilities

Moving the Market

Stocks extend Monday's rebound

Crude oil nearing last week's high

Rebound Rally Accelerates
07-Dec-21 16:10 ET
Dow +492.40 at 35719.43, Nasdaq +461.76 at 15686.91, S&P +95.08 at 4686.75

[BRIEFING.COM] The major averages built on their gains from Monday with the S&P 500 (+2.1%) jumping to within 60 points of its record high from two weeks ago. The Nasdaq (+3.0%) outperformed after lagging yesterday while the Dow (+1.4%) finished behind the benchmark index after showing relative strength on Monday.

The bulk of the Tuesday rally unfolded at the open, as stocks jumped out of the gate after an upbeat session in global equity markets. The S&P 500 reached its best level of the session just after 11:00 ET, drifting just below that high into the close. The benchmark index finished at its best level since November 24 while the Dow and Nasdaq reclaimed their respective 50-day moving averages.

All eleven sectors ended in the green with nine groups recording gains of 1.0% or more. Top-weighted technology (+3.5%) held the lead throughout the day while energy (+2.3%) and consumer discretionary (+2.4%) finished in the next two spots.

The technology sector rallied behind chipmakers, as the PHLX Semiconductor Index rose 5.0%. Top component NVIDIA (NVDA 324.27, +23.90, +8.0%) was the best performer in the group while Intel (INTC 52.57, +1.58, +3.1%) rallied back above its 50-day moving average (51.33) after confirming plans for a spin-off of its Mobileye unit, which is valued at about $50 bln.

All but six components of the tech sector finished in the green while Western Union (WU 17.35, -0.50, -2.8%) was the weakest performer, giving back yesterday's gain.

Like technology, the energy sector spent the session near the top of the leaderboard thanks to a rally in crude oil, which rose $2.36, or 3.4%, to $71.95/bbl, climbing past its 200-day moving average (69.98). Oil backpedaled from its midday high after a brief push past last Monday's high (72.93).

The consumer discretionary sector was the only other group to gain 2.0% or more with leadership from AutoZone (AZO 2023.57, +143.58, +7.6%) after the company beat Q1 expectations. The stock rallied to a fresh record, as did seven other components of the discretionary sector.

The Dow Jones Transportation Average (+0.2%) was one of few soft spots today as airline stocks pulled back from yesterday's rally, masking gains in more than half of the remaining DJTA components.

In Washington, House Speaker Pelosi said that her chamber will vote today evening on a plan to increase the debt limit. Meanwhile, Senate Minority Leader McConnell said that a "solution" to the debt ceiling issue has been reached. President Biden spoke with Russian President Putin, warning that the U.S. and allies would "respond with strong economic and other measures in the event of military escalation" in Ukraine, according to a statement from the White House.

Treasuries retreated, sending the 10-yr yield higher by five basis points to 1.48% with its 200-day moving average (1.493%) looming just above.

Reviewing today's economic data:

The October Trade Balance Report showed a narrowing in the deficit to $67.1 billion (Briefing.com consensus -$66.8 billion) from a downwardly revised $81.4 billion (from $80.9 billion) in September, with exports up $16.8 billion and imports up $2.5 billion from September levels.
The key takeaway from the report is the uptick in both exports and imports, which is a good sign of increased economic activity on a global basis. Exports to China increased $2.8 billion and exports to the European Union increased $1.6 billion.
The revised Q3 Productivity and Unit Labor Costs report showed productivity being revised down to -5.2% (Briefing.com consensus -4.9%) from the advance estimate of -5.0%. That is the largest decline in productivity since the second quarter of 1960. Unit labor costs were revised up to 9.6% (Briefing.com consensus 8.2%) from 8.3%.
The key takeaway from the report is the connection between weakening productivity and rising costs, which isn't a good combination for company profits.
Consumer credit increased by $16.9 bln in October after increasing a downwardly revised $27.8 bln (from $29.9 bln) in September.

Tomorrow, the weekly MBA Mortgage Index (prior -7.2%) will be released at 7:00 ET, followed by JOLTS -- Job Openings (prior 10.438 mln) at 10:00 ET.

S&P 500 +24.8% YTD
Nasdaq Composite +21.7% YTD
Dow Jones Industrial Average +16.7% YTD
Russell 2000 +14.1% YTD

[ReturntoSender]

Market Snapshot

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

Dow 35545.56 -105.39 (-0.30%)
Nasdaq 15237.63 -175.64 (-1.14%)
SP 500 4634.23 -34.74 (-0.74%)
10-yr Note -3/32 1.441
NYSE Adv 970 Dec 2334 Vol 1.0 bln
Nasdaq Adv 1272 Dec 3298 Vol 4.7 bln

Industry Watch
Strong: Financials
Weak: Information Technology, Real Estate, Industrials

Moving the Market

-- Major indices trade lower but off session lows

-- PPI data for November was hotter than expected

-- Lingering growth/coronavirus concerns

Stocks close lower following hot PPI data
14-Dec-21 16:20 ET
Dow -105.39 at 35545.56, Nasdaq -175.64 at 15237.63, S&P -34.74 at 4634.23

[BRIEFING.COM] The S&P 500 fell 0.8% on Tuesday, as concerns about inflation and economic growth weighed on sentiment during an important Fed policy meeting. The Nasdaq Composite (-1.1%) and Russell 2000 (-1.0%) both underperformed the benchmark index, while the Dow Jones Industrial Average declined just 0.3%.

Prior to the open, the Producer Price Index for November came in hotter than expected, with the index for final demand up 0.8% month-over-month (Briefing.com consensus 0.5%) and up 9.6% year-over-year. The hot inflation report may have put additional pressure on the Fed to announce a faster tapering plan and signal a more hawkish rate path tomorrow.

The market appeared concerned about the implications a more aggressive Fed would have on global growth with COVID-19 still disrupting supply chains and contributing to restrictive policies. Reports indicated that companies in a manufacturing hub in China suspended operations because of an outbreak in cases.

While the market eased off intraday lows in the afternoon, ten of the 11 S&P 500 sectors still closed lower. The information technology sector (-1.6%) led the retreat and featured influential weakness in Apple (AAPL 174.33, -1.41, -0.8%), Microsoft (MSFT 328.34, -11.06, -3.3%) and Adobe (ADBE 614.86, -43.44, -6.6%).

Apple, like Microsoft, succumbed to profit-taking interest, even though BofA Securities upgraded AAPL to Buy from Neutral. ADBE was downgraded to Neutral from Overweight at JP Morgan.

The financials sector (+0.6%) escaped with a respectable gain amid an uptick in Treasury yields. The 2-yr yield increased two basis points to 0.66%, and the 10-yr yield increased one basis point to 1.44%. The U.S. Dollar Index rose 0.3% to 96.58. WTI crude futures fell 0.9%, or $0.67, to $70.57/bbl.

The modest reaction in the Treasury market to the hot inflation data was an interesting development. Selling interest may have been capped by growth concerns and/or a view that a more aggressive Fed could rein in inflation pressures next year.

Separately, Pfizer (PFE 55.54, +0.34, +0.6%) specified its COVID-19 oral antiviral reduced the risk of hospitalization or death in high-risk patients by 89% when taken within three days of symptom onset. PFE shares rose to an all-time high.

Reviewing Tuesday's economic data:

The November Producer Price Index showed that the index for final demand increased 0.8% month-over-month (Briefing.com consensus 0.5%) while the index for final demand, less foods and energy, increased 0.7% (Briefing.com consensus 0.4%). That left the year-over-year increases on an unadjusted basis at 9.6% and 7.7%, respectively.
The key takeaway from the report is that it is another sign that inflation pressures are persisting in an unacceptable manner and it will likely force the Fed into an uncomfortable position of taking a more aggressive policy path at a time when the market also has festering concerns about a slowdown in growth.
The NFIB Small Business Optimism Index increased to 98.4 in November from 98.2 in October.

Looking ahead to Wednesday,, investors can expect the FOMC Rate Decision, Retail Sales for November, the NAHB Housing Market Index for December, Import and Export Prices for November, the Empire State Manufacturing Index for December, Business Inventories for October, and Net Long-Term TIC Flows for October.

S&P 500 +23.4% YTD
Nasdaq Composite +18.2% YTD
Dow Jones Industrial Average +16.1% YTD
Russell 2000 +9.4% YTD

Crude futures settle lower
14-Dec-21 15:30 ET
Dow -48.51 at 35602.44, Nasdaq -144.90 at 15268.37, S&P -27.30 at 4641.67

[BRIEFING.COM] The S&P 500 is down 0.7% after being down 1.3% earlier today.

One last look at the sectors shows ten of the 11 groups still trading lower. The information technology sector (-1.6%) is the weakest link, while the financials sector (+0.9%) outperforms with a 0.9% gain.

WTI crude futures settled lower by 0.9%, or $0.67, to $70.57/bbl. On a related note, the IEA lowered its global demand outlook for the rest of the year and 2022 because of the coronavirus.

[ReturntoSender]

Market Snapshot

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

Dow 35927.56 +383.38 (1.08%)
Nasdaq 15565.57 +327.94 (2.15%)
SP 500 4709.84 +75.75 (1.63%)
10-yr Note -1/32 1.457
NYSE Adv 2135 Dec 1141 Vol 1.1 bln
Nasdaq Adv 2725 Dec 1601 Vol 5.2 bln

Industry Watch
Strong: Health Care, Information Technology, Utilities, Real Estate
Weak: Materials, Consumer Discretionary, Energy

Moving the Market

-- Positive reaction to the FOMC statement and economic/rate projections

-- Fed funds rate left near zero and most Fed members see at least three rate hikes in 2022

-- Fed Chair Powell talks positively on the labor market and the consumer

-- Retail sales for November miss expectations

Stocks rally after Fed does the expected
15-Dec-21 16:20 ET
Dow +383.38 at 35927.56, Nasdaq +327.94 at 15565.57, S&P +75.75 at 4709.84

[BRIEFING.COM] The S&P 500 rallied 1.6% on Wednesday, ending a two-day skid as the market reacted positively to the Fed's policy decision and Fed Chair Powell's press conference. The Dow Jones Industrial Average (+1.1%), Nasdaq Composite (+2.2%), and Russell 2000 (+1.7%) also closed sharply higher.

As anticipated, the Fed left the target range for the fed funds rate unchanged at 0.00-0.25%, said it will double the reduction of asset purchases to $30 billion per month ($20 billion for Treasuries and $10 billion for agency MBS), and signaled three rate hikes in 2022 amid expectations for continued inflation pressures.

The market was pleased to hear Fed Chair Powell talk positively on the labor market and the consumer, even as the Omicron variant poses a risk to the economy. He argued the Fed will tighten policy in a gradual, yet accommodative, way because of robust economic activity that is driving inflation higher. That was an optimistic point of view for the market.

Investors swiftly bought the dip in the mega-caps, which were dragging the S&P 500 lower by 0.3% prior to the Fed announcement. The heavily-weighted S&P 500 information technology sector went from a 0.7% intraday decline to a sector-leading 2.8% gain by the close.

The health care (+2.1%), utilities (+1.7%), real estate (+1.5%), and consumer staples (+1.2%) sectors were strong all session. The energy sector (-0.4%), on the other hand, was the only sector that closed lower despite higher oil prices ($70.89, +0.32, +0.5%).

Strikingly, the fed-funds-sensitive 2-yr yield settled higher by just one basis point to 0.67% after hitting 0.72% in the wake of the FOMC statement. With three rate hikes forecasted for next year, the 2-yr yield might have already priced in the Fed's near-term path. The 10-yr yield rose three basis points to 1.46%. The U.S. Dollar Index lost 0.2% to 96.37.

Short-covering activity might have contributed to today's price action. The CBOE Volatility Index was up 7.2% intraday amid increased hedging interest but ended the session lower by 11.9% to 19.29.

In corporate news, Eli Lilly (LLY 275.12, +25.90, +10.4%) climbed 10% after the company provided upbeat FY21 and FY22 EPS guidance. Lowe's (LOW 257.56, +5.10, +2.0%) overcame a negative start attributed to relatively disappointing guidance. Nucor (NUE 108.22, -10.20, -8.6%) wasn't as lucky, with shares losing 8.6% following its downbeat guidance.

Reviewing Wednesday's economic data:

Total retail sales were up 0.3% month-over-month (Briefing.com consensus +0.8%) as were retail sales, excluding autos (Briefing.com consensus +0.9%). On a year-over-year basis, total retail sales were up 18.2% and up 19.5% excluding autos.
The key takeaway from the report is that it likely reflects the push to make holiday purchases early given all the reports about supply chain bottlenecks, meaning it might not be as disappointing as it appears at first blush. Tellingly, nonstore retailer sales were flat after increasing 4.1% in October and electronics and appliance store sales were down 4.6% after increasing 3.1% in October.
Import prices increased 0.7% in November after increasing 1.5% in October. Excluding oil, import prices increased 0.5% after increasing 0.5% in October. Export prices increased 1.0% after increasing 1.6% in October. Excluding agriculture, export prices increased 1.0% after increasing 1.7% in October.
The Empire State Manufacturing Survey increased to 31.9 in December (Briefing.com consensus 25.0) from 30.9 in November.
The NAHB Housing Market Index increased to 84.0 in December (Briefing.com consensus 84.0) from 83.0 in November.
Business inventories increased 1.2% m/m in October (Briefing.com consensus 1.0%) following a revised 0.8% increase (from 0.7%) in September.
The weekly MBA Mortgage Applications Index decreased 4.0% following a 2.0% increase in the prior week.

Looking ahead to Thursday, investors will receive weekly Initial and Continuing Claims, Housing Starts and Building Permits for November, Industrial Production and Capacity Utilization for November, the Philadelphia Fed Index for December, and the preliminary IHS Markit Manufacturing and Services PMIs for December.

S&P 500 +25.4% YTD
Nasdaq Composite +20.8% YTD
Dow Jones Industrial Average +17.4% YTD
Russell 2000 +11.2% YTD

Crude futures settle higher
15-Dec-21 15:30 ET
Dow +371.81 at 35915.99, Nasdaq +274.19 at 15511.82, S&P +66.21 at 4700.30

[BRIEFING.COM] The S&P 500 is trading at session highs with a 1.3% gain, as Fed Chair Powell talks positively on the labor market and the consumer. He also also argued that he doesn't think the Fed isn't "behind the curve" on inflation.

One last look at the sectors shows ten sectors trading higher and one -- energy (-0.1%) -- trading lower. The information technology sector (+2.1%) has claimed the top spot after being down 0.7% earlier today.

WTI crude futures settled higher 0.5%, or $0.32, to $70.89/bbl.

[ReturntoSender]

Market Snapshot

https://stockcharts.com/def/servlet/ScanUI

Dow 35897.64 -29.79 (-0.08%)
Nasdaq 15180.42 -385.15 (-2.47%)
SP 500 4668.67 -41.18 (-0.87%)
10-yr Note +3/32 1.424
NYSE Adv 1494 Dec 1775 Vol 1.1 bln
Nasdaq Adv 1557 Dec 2890 Vol 4.8 bln

Industry Watch
Strong: Energy, Materials, Financials, Health Care, Consumer Staples
Weak: Information Technology, Consumer Discretionary

Moving the Market

-- Mega-caps/growth stocks fumble post-FOMC gains while value stocks rise

-- Adobe (ADBE) sinks on disappointing earnings news

-- 2-yr yield drops, outpaces decline in 10-yr yield

Mega-caps reverse course and drag market lower
16-Dec-21 16:15 ET
Dow -29.79 at 35897.64, Nasdaq -385.15 at 15180.42, S&P -41.18 at 4668.67

[BRIEFING.COM] The S&P 500 fell 0.9% on Thursday, as the mega-caps fumbled their post-FOMC gains and dragged the benchmark index lower in a steady retreat. The Nasdaq Composite (-2.5%) and Russell 2000 (-2.0%) saw steeper declines, while the Dow Jones Industrial Average outperformed on a relative basis with a 0.1% decline.

The market had a bullish tone in the pre-market session, but that started to unwind after Adobe (ADBE 566.09, -64.24, -10.2%) issued downside guidance for fiscal Q1 and FY22. ADBE shares dropped 10%, and the lack of dip-buying efforts appeared to weigh on sentiment and other growth stocks with high valuations.

Moreover, the pace and ease at which the growth stocks retreated supported suspicions that yesterday's rally was fueled by short-covering activity. The heavily-weighted S&P 500 information technology (-2.9%) and consumer discretionary (-2.2%) sectors tumbled 3% and 2%, respectively.

The value-oriented stocks, though, extended gains. It's just that the mega-cap losses diminished their positive influence. Eight of the 11 S&P 500 sectors, including financials (+1.2%), materials (+1.0%), and energy (+0.7%), closed higher. The Russell 1000 Value Index gained 0.5%.

The financials sector drew support from the curve-steepening activity in the Treasury market, driven by a steeper decline in shorter-dated yields versus longer-dated yields. The 2-yr yield decreased six basis points to 0.61%, and the 10-yr yield decreased four basis points to 1.42%. The U.S. Dollar Index fell 0.6% to 95.98.

The gains in the cyclical sectors, the curve-steepening activity, and even an increase in oil prices ($72.36/bbl, +1.47, +2.1%) indicated that growth concerns weren't a driving force in today's index declines.

On a related note, housing starts and building permits for November were better than expected, and while weekly initial claims were higher than expected (206,000), the four-week moving average (203,750) declined to its lowest level since Nov. 15, 1969.

In light of the Fed's decision yesterday, other central bank meetings received additional attention. The Bank of England increased its bank rate by 15 basis points to 0.25% in a surprise move while the European Central Bank left rates unchanged, as expected, and announced a further tapering of asset purchases.

Reviewing Thursday's economic data:

Housing starts in November increased 11.8% month-over-month to a seasonally adjusted annual rate of 1.679 million units (Briefing.com consensus 1.570 million) while building permits rose 3.6% to 1.712 million (Briefing.com consensus 1.670 million).
The key takeaway from this report was the strength seen in single-unit activity for both starts (+11.3%) and permits (+2.7%), as new supply is greatly needed in a tight and increasingly cost-prohibitive housing market.
Initial jobless claims for the week ending December 11 were a bit higher than expected, increasing by 18,000 to 206,000 (Briefing.com consensus 195,000), but still holding at a relatively low and encouraging level. Continuing claims for the week ending December 4 decreased by 154,000 to 1.845 million, which is the lowest since March 14, 2020.
The key takeaway from the report is the understanding that the four-week moving average for initial claims (203,750) is the lowest since November 15, 1969.
Total industrial production increased 0.5% in November (Briefing.com consensus +0.8%) following an upwardly revised 1.7% increase (from 1.6%) in October. The capacity utilization rate rose to 76.8% (Briefing.com consensus 76.8%) from an upwardly revised 76.5% (from 76.4%) in October.
The key takeaway from the report is that it points to plenty of latent growth potential when the semiconductor supply shortage, and other supply chain issues, can get worked out.
The Philadelphia Fed Index for December dropped to 15.4 (Briefing.com consensus 30.0) from 39.0 in November.
The preliminary IHS Markit Services PMI decreased to 57.5 from the final reading of 58.0 in November. The preliminary IHS Markit Manufacturing PMI decreased to 57.8 from the final reading of 58.3 in November.

There is no economic data scheduled for Friday.

S&P 500 +24.3% YTD
Nasdaq Composite +17.8% YTD
Dow Jones Industrial Average +17.3% YTD
Russell 2000 +9.0% YTD

WTI crude futures settle higher by 2%
16-Dec-21 15:30 ET
Dow +36.03 at 35963.46, Nasdaq -356.51 at 15209.06, S&P -33.22 at 4676.63

[BRIEFING.COM] The S&P 500 is down 0.7% to trade off prior lows (-1.2%).

One last look at the sectors shows information technology (-2.8%), consumer discretionary (-1.8%), and communication services (-0.3%) as the only sectors trading lower. The financials (+1.4%) and materials (+1.1%) are atop the standings with gains over 1.0%.

WTI crude futures settled higher by 2.1%, or $1.47, to $72.36/bbl.

[ReturntoSender]

Market Snapshot

briefing.com

Dow 35365.44 -532.20 (-1.48%)
Nasdaq 15169.67 -10.75 (-0.07%)
SP 500 4620.64 -48.03 (-1.03%)
10-yr Note +3/32 1.388

NYSE Adv 1366 Dec 1889 Vol 3.5 bln
Nasdaq Adv 2407 Dec 1991 Vol 7.4 bln


Industry Watch
Strong: Real Estate

Weak: Financials, Energy, Industrials, Consumer Staples, Utilities


Moving the Market
-- Large-cap indices close lower amid growth concerns, technical factors

-- S&P 500 found technical support at 50-day moving average (4604)

-- Treasury yield curve flattens





S&P 500 falls 1% in broad-based decline
17-Dec-21 16:20 ET

Dow -532.20 at 35365.44, Nasdaq -10.75 at 15169.67, S&P -48.03 at 4620.64
[BRIEFING.COM] The S&P 500 fell 1.0% on this quadruple witching-options expiration Friday, as the market was influenced by growth concerns and technical factors. The Dow Jones Industrial Average fell 1.5%, while the Nasdaq Composite decreased just 0.1% and the Russell 2000 gained 1.0%.

The COVID-19 situation seemed to weigh on the market with sporting events continuing to get postponed, President Biden warning of "winter of severe illness and death" for those unvaccinated against COVID-19, and former FDA Commissioner Gottlieb suggesting that businesses in New York might voluntarily close for a few weeks due to surging cases.

All 11 S&P 500 sectors closed lower, led by the cyclical financials (-2.3%), energy (-2.3%), and industrials (-1.7%) sectors; the Treasury yield curve flattened amid increased demand for longer-dated maturities; and oil prices ($70.93, -1.43, -2.0%) settled sharply lower. The real estate sector (-0.3%) declined the least.

Technical factors were most evident in the S&P 500, which found support at its 50-day moving average (4604) after it dipped below the level in the morning. The mega-caps lifted the benchmark index off those lows, as investors presumably saw their recent declines as a good buying opportunity.

Similarly, small-caps and retail stocks saw some relief after lagging in recent weeks, benefiting from rotation-minded activity. The Russell 2000 and SPDR S&P Retail ETF (XRT 87.99, +0.45, +0.5%) both entered the session in correction territory, or down more than 10.0% from recent highs.

Oracle (ORCL 96.61, -6.61, -6.4%) saw no relief after The Wall Street Journal reported that the company is in discussions to acquire Cerner (CERN 89.77, +10.28, +12.9%) for as much as $30 billion. ORCL shares fell 6% while CERN shares rose 13%.

Rivian (RIVN 97.70, -11.17, -10.3%) dropped 10% after missing EPS estimates while FedEx (FDX 250.32, +11.80, +5.0%) rose 5% on pleasing earnings news. FedEx also authorized a new $5 billion share repurchase program.

Recapping the price action in the Treasury market, the 2-yr yield increased three basis points to 0.64% while the 10-yr yield decreased two basis points to 1.40%. The U.S. Dollar Index gained 0.7% to 96.68.

Investors did not receive any economic data on Friday. Looking ahead, the Conference Board will release its Leading Economic Index for November on Monday.

S&P 500 +23.0% YTD
Nasdaq Composite +17.7% YTD
Dow Jones Industrial Average +15.6% YTD
Russell 2000 +10.1% YTD



Crude futures fall 2%
17-Dec-21 15:30 ET

Dow -419.25 at 35478.39, Nasdaq +19.88 at 15200.30, S&P -33.17 at 4635.50
[BRIEFING.COM] The S&P 500 is down 0.7% and on track to end the week with a 1.6% decline.

One last look at the sectors shows financials (-1.9%), materials (-1.9%), and industrials (-1.1%) down more than 1.0% while the real estate sector (+0.2%) is the only sector trading higher.

WTI crude futures settled lower by 2.0%, or $1.43, to $70.93/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 36302.38 +351.82 (0.98%)
Nasdaq 15871.25 +217.89 (1.39%)
SP 500 4791.19 +65.40 (1.38%)
10-yr Note +1/32 1.485
NYSE Adv 2204 Dec 1068 Vol 615.6 mln
Nasdaq Adv 2373 Dec 2279 Vol 3.7 bln

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

Moving the Market

-- S&P 500 sets intraday and closing record highs

-- Leadership from the mega-caps

-- Travel stocks underperformed amid Omicron-related disruptions

S&P 500 extends rally to record highs
27-Dec-21 16:15 ET
Dow +351.82 at 36302.38, Nasdaq +217.89 at 15871.25, S&P +65.40 at 4791.19

[BRIEFING.COM] The S&P 500 rose 1.4% on Monday, setting intraday and closing record highs in a steady advance. The Nasdaq Composite (+1.4%) kept pace, followed by the Dow Jones Industrial Average (+1.0%) and Russell 2000 (+0.9%) with solid gains.

The market didn't seem drawn to any specific piece of news, nor was there any economic data to influence investing decisions. Instead, the market appeared to benefit from a continued willingness among investors to buy equities when momentum remained in their favor, particularly at a seasonally-favorable time of the year.

All 11 S&P 500 sectors closed higher, led by the information technology (+2.2%), energy (+2.2%), and real estate (+2.0%) sectors with gains of at least 2.0%. The utilities sector underperformed on a relative basis with a 0.5% gain.

Retail investors might have had a greater role today based on the light trading volume at the NYSE and the huge gains in market favorites like Apple (AAPL 180.33, +4.05, +2.3%), Microsoft (MSFT 342.45, +7.76, +2.3%), Meta Platforms (FB 346.18, +10.94, +3.3%), Tesla (TSLA 1093.94, +26.94, +2.5%), and NVIDIA (NVDA 309.45, +13.05, +4.4%).

The mega-cap growth stocks did the heavy lifting while small-caps and micro-caps went along for the ride, as did value stocks. The Russell 1000 Growth Index rose 1.5%, versus a 1.1% gain in the Russell 1000 Value Index.

Looking at industry news, travel stocks struggled amid reports highlighting the disruptions that airlines and cruise lines have faced because of Omicron-related issues. Retail stocks benefited from Mastercard SpendingPulse data indicating that retail sales grew 8.5% year-over-year this holiday season (Nov. 1-Dec. 24).

U.S. Treasuries settled mixed with a trace of curve-flattening activity. The 2-yr yield increased one basis point to 0.70% while the 10-yr yield decreased one basis point to 1.48%. The U.S. Dollar Index increased 0.1% to 96.08. WTI crude futures rose 2.3%, or $1.71, to $75.56/bbl.

Investors did not receive any economic data on Monday. Looking ahead, the FHFA Housing Price Index for October and the S&P Case-Shiller Home Price Index for October will be released on Tuesday.

S&P 500 +27.6% YTD
Nasdaq Composite +23.1% YTD
Dow Jones Industrial Average +18.6% YTD
Russell 2000 +14.5% YTD

Crude futures settle above $75 per barrel
27-Dec-21 15:30 ET
Dow +282.65 at 36233.21, Nasdaq +190.01 at 15843.37, S&P +55.43 at 4781.22

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

One last look at the sectors shows energy (+2.0%), information technology (+1.9%), real estate (+1.4%), and materials (+1.3%) up between 1-2% while the utilities sector is up just 0.3%.

WTI crude futures settled higher by 2.3%, or $1.71, to $75.56/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 36398.08 -90.55 (-0.25%)
Nasdaq 15741.55 -24.65 (-0.16%)
SP 500 4778.73 -14.33 (-0.30%)
10-yr Note +4/32 1.511
NYSE Adv 1843 Dec 1444 Vol 638.3 mln
Nasdaq Adv 2750 Dec 1878 Vol 3.7 bln

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

Moving the Market

-- S&P 500 and Dow set record highs with modest gains

-- Positive bias persists amid seasonal factors, thin trading volume, and lack of market-moving news

Market fumbles gains into the close
30-Dec-21 16:20 ET
Dow -90.55 at 36398.08, Nasdaq -24.65 at 15741.55, S&P -14.33 at 4778.73

[BRIEFING.COM] The S&P 500 (-0.3%) and Dow Jones Industrial Average (-0.3%) set intraday record highs early in Thursday's session, but they struggled to build on those gains and closed slower amid increased selling interest into the close. The Nasdaq Composite (-0.2%) and Russell 2000 (-0.02%) also fumbled gains and closed slightly lower.

The record-setting start was a carryover from yesterday amid seasonal factors, thin trading conditions, and a lack of specific catalysts. The gains were modest and lacked conviction, as the S&P 500 sectors wavered within 0.5% of their flat lines for most of the day.

It wasn't until the last 30 minutes of action that sellers gained control. Some participants, who are taking tomorrow off for New Year's Eve, might have taken profits while others would point to the view that the market was overbought and due for a breather.

Seven of the 11 S&P 500 sectors closed lower, including information technology (-0.7%) and energy (-0.7%) as laggards. The real estate (+0.4%), utilities (+0.3%), health care (+0.2%), and communication services (+0.1%) sectors closed higher.

Buying conviction might have also been restrained by ongoing headwinds attributed to the Omicron variant.

Specifically, Micron (MU 93.89, -2.28, -2.4%) warned of potential delays because of the lockdown in the Chinese city of Xi'an. The CDC upped its travel notice on cruise lines to Level 4, advising people to "avoid cruise travel, regardless of vaccination status." JetBlue (JLBU 14.24, -0.14, -1.0%) reportedly reduced its flight schedule next month in anticipation of staffing shortages.

On the bright side, vaccine news remained encouraging. Johnson & Johnson (JNJ 172.31, +0.76, +0.4%) said data demonstrated its booster shot was 85% effective against hospitalization in South Africa when the Omicron variant was dominant. The FDA is expected to expand eligibility for Pfizer's (PFE 58.40, +0.82, +1.4%) booster shot to 12- to 15-year-olds on Monday, according to The New York Times.

Separately, Biogen (BIIB 240.00, -18.31, -7.1%) dropped 7% after Samsung Group denied it was in talks to acquire the company.

U.S. Treasuries were on the defensive throughout the day, leaving yields lower. The 2-yr yield decreased one basis point to 0.74%, and the 10-yr yield decreased three basis points to 1.52%. The U.S. Dollar Index increased 0.1% to 95.98. WTI crude futures increased 0.4%, or $0.28, to $76.85/bbl.

Reviewing Thursday's economic data:

Initial jobless claims for the week ending December 25 decreased by 8,000 to 198,000 (Briefing.com consensus 190,000) while continuing claims for the week ending December 18 decreased by 140,000 to 1.716 million.
The key takeaway from the report is the recognition that the four-week moving average for initial claims (199,250) is the lowest it has been since October 25, 1969, which reflects the tightness of the labor market.
The Chicago PMI increased to 63.1 in December (Briefing.com consensus 61.8) from 61.8 in November.

There is no economic data scheduled for Friday, which will be a full day of trading for the stock market.

S&P 500 +27.2% YTD
Nasdaq Composite +22.1% YTD
Dow Jones Industrial Average +18.9% YTD
Russell 2000 +13.9% YTD

WTI crude futures settle higher
30-Dec-21 15:30 ET
Dow +14.05 at 36502.68, Nasdaq +48.47 at 15814.67, S&P +2.77 at 4795.83

[BRIEFING.COM] The S&P 500 is up 0.1% and is trying to close at a record high.

One last look at the sectors shows real estate (+0.6%) and health care (+0.4%) outperforming with modest gains, while the energy sector (-0.6%) underperforms with a 0.6% gain.

WTI crude futures settled higher by 0.4%, or $0.28, to $76.85/bbl. In related news, Reuters reported that OPEC+ is aiming to keep its current production schedule at the Jan. 4 meeting.

[ReturntoSender]

Market Snapshot

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

Dow 36585.06 +246.76 (0.68%)
Nasdaq 15832.79 +187.83 (1.20%)
SP 500 4796.56 +30.38 (0.64%)
10-yr Note -11/32 1.640
NYSE Adv 1928 Dec 1418 Vol 845.0 mln
Nasdaq Adv 3290 Dec 1418 Vol 4.3 bln

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

Moving the Market

-- Apple (AAPL) hits $3 trillion market capitalization

-- Tesla (TSLA) up 12% after reporting record Q4 deliveries

-- Treasury yield rise noticeably

S&P 500 and Dow close at record highs to begin 2022
03-Jan-22 16:20 ET
Dow +246.76 at 36585.06, Nasdaq +187.83 at 15832.79, S&P +30.38 at 4796.56

[BRIEFING.COM] The major indices had a great start to 2022 on Monday, featuring record closes in the S&P 500 (+0.6%) and Dow Jones Industrial Average (+0.7%). The Nasdaq Composite (+1.2%) and Russell 2000 (+1.2%) tied for the lead with 1.2% gains.

The outperformance of the Nasdaq was attributed to a 13.5% gain in Tesla (TSLA 1199.78, +143.00, +13.5%), which reported record Q4 deliveries, and sizable gains in Apple (AAPL 182.01, +4.44, +2.5%), Amazon.com (AMZN 3408.09, +73.75, +2.2%), and NVIDIA (NVDA 301.21, +7.10, +2.4%).

Apple became the first U.S. company to reach a $3.0 trillion market capitalization while Amazon and the small-caps may have adhered to the January effect. The latter is a view that beaten-down stocks outperform to begin the year with the conclusion of tax-loss selling pressure.

The S&P 500 consumer discretionary sector, which is home to TSLA and AMZN, advanced 2.8%, but it was outdone by the energy sector (+3.1%) amid higher oil prices ($76.05/bbl, +0.76, +1.0%). The financials (+1.2%) and information technology (+1.2%) sectors followed suit, with the former keying off a big jump in longer-dated Treasury yields.

The mega-caps, to emphasize, made a huge difference for the large-cap indices since the S&P 500 Equal Weight Index increased just 0.1% and six of the 11 S&P 500 sectors closed lower. The materials (-1.4%), health care (-1.0%), and real estate (-1.0%) sectors each declined by at least 1.0%.

Shares of Pfizer (PFE 56.65, -2.40, -4.1%) and BioNTech (BNTX 231.85, -25.95, -10.1%) declined noticeably amid an expected decision from the FDA, which approved their COVID-19 vaccine for kids aged 12-15. The FDA also shortened the time between the second dose and booster dose to at least five months (down from six months).

In the Treasury market, the 10-yr yield rose 12 basis points to 1.63%, with selling interest influenced by the positive showing in the stock market and potentially due to an improving perspective on the economy. The 2-yr yield rose six basis points to 0.79%. The U.S. Dollar Index increased 0.3% to 96.21.

Reviewing Monday's economic data:

Total construction spending increased 0.4% month-over-month in November (Briefing.com consensus +0.6%) following an upwardly revised 0.4% increase (from 0.2%) in October. Total private construction increased 0.6% month-over-month while total public construction spending decreased 0.2%. On a year-over-year basis, total construction spending was up 9.3%.
The key takeaway from the report is the strength seen in new single-family construction, which is a reflection of the persistently strong housing demand amid a scarcity of supply in the existing home market.
The preliminary December IHS Markit Manufacturing PMI decreased to 57.7 from a revised final reading of 58.3 (from 57.8) in November.

Looking ahead, investors will receive the ISM Manufacturing Index for December and the JOLTS - Job Openings report for November on Tuesday.

Nasdaq Composite +1.2% YTD
Russell 2000 +1.2% YTD
Dow Jones Industrial Average +0.7% YTD
S&P 500 +0.6% YTD

Crude futures settle above $76 per barrel
03-Jan-22 15:30 ET
Dow +215.09 at 36553.39, Nasdaq +177.05 at 15822.01, S&P +26.82 at 4793.00

[BRIEFING.COM] The S&P 500 continues to trade higher by 0.6% with 30 minutes remaining in the session.

One last look at the sectors shows energy (+3.0%) and consumer discretionary (+2.5%) up by at least 2.5%, while the real estate (-1.3%), materials (-1.2%), health care (-1.1%), and utilities (-1.1%) sectors are each down more than 1.0%.

WTI crude futures settled higher by $0.76 (+1.0%) to $76.05/barrel.

[ReturntoSender]

Market Snapshot

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

Dow 36236.47 -170.64 (-0.47%)
Nasdaq 15080.86 -19.31 (-0.13%)
SP 500 4696.05 -4.53 (-0.10%)
10-yr Note -24/32 1.729
NYSE Adv 1823 Dec 1453 Vol 912.7 mln
Nasdaq Adv 2155 Dec 2359 Vol 4.7 bln

Industry Watch
Strong: Energy, Financials, Industrials
Weak: Health Care, Materials, Utilities

Moving the Market

-- Lack of conviction drives underwhelming session as Treasury yields continue to edge higher

-- S&P 500 finds technical support at 50-day moving average (4672)

-- Growth stocks pare intraday losses while value stocks outperform

Large-cap indices underwhelm as tech sector remains weak
06-Jan-22 16:20 ET
Dow -170.64 at 36236.47, Nasdaq -19.31 at 15080.86, S&P -4.53 at 4696.05

[BRIEFING.COM] The stock market closed mixed on Thursday in an underwhelming effort following yesterday's retreat. The S&P 500 and Nasdaq Composite both declined 0.1%, and the Dow Jones Industrial Average declined 0.5%. The small-cap Russell 2000, however, advanced 0.6%.

There was a bit of a growth-stock scare in the morning, as the 10-yr yield hit 1.75% and the Nasdaq declined as much as 1.2% after the open. Fortunately, the 10-yr yield stabilized, and investors presumably felt comfortable enough to buy beleaguered growth stocks, especially after the S&P 500 bounced off its 50-day moving average (4672).

Buying conviction was kept in check, though, partly because of anxiety surrounding monetary policy normalization, the upwards path in interest rates, and the possibility for more selling in the days to come. There might also have been a wait-and-see mindset for the December employment report tomorrow.

Five of the 11 S&P 500 sectors ended the session in positive territory while six sectors closed lower. The materials (-1.2%), health care (-1.2%), and utilities (-1.1%) sectors declined more than 1.0% while the information technology sector declined 0.5%.

The heavily-weighted technology sector held back the S&P 500 in a meaningful way considering the Invesco S&P 500 Equal Weight Index (RSP 162.03, +0.36) gained 0.2%. The biggest gainers were found in the financials (+1.6%) and energy (+2.3%) sectors, which extended their weekly gains to 4% and 9%, respectively.

While growth stocks pared intraday losses, there was still there was a lingering preference for value stocks. This preference was better represented by the 0.3% gain in the Russell 3000 Index, versus the 0.2% decline in the Russell 3000 Growth Index.

Walgreens Boots Alliance (WBA 52.44, -1.56, -2.9%) was a value-oriented stock that underperformed despite reporting better-than-expected earnings results and raising its FY22 EPS guidance. Shares of the Dow component fell 3% after being up 0.9% intraday.

Recapping the moves in the Treasury market, the 10-yr yield settled three basis points higher at 1.73% while the 2-yr yield rose six basis points to 0.88% amid expectations for a more aggressive Fed. The U.S. Dollar Index increased 0.1% to 96.30. WTI crude futures rose 2.0%, or $1.58, to $79.40/bbl after briefly topping $80.00/bbl.

Reviewing Thursday's economic data:

Initial claims for the week ending January 1 increased by 7,000 to 207,000 (Briefing.com consensus 198,000) and continuing claims for the week ending December 25 increased by 36,000 to 1.754 million.
The key takeaway is that the latest data didn't disrupt the idea that the labor market is tight and that initial claims are running at pre-pandemic levels, which at the time were thought to be quite low.
The ISM Non-Manufacturing Index for December decreased to 62.0% (Briefing.com consensus 67.1%) from a record high 69.1% in November. The dividing line between expansion and contraction is 50.0%. The December reading marks the 19th straight month of growth for the services sector.
The key takeaway from the report is that it isn't surprising to see some softening following a record-high print and the arrival of the Omicron variant; however, the uptick in the prices index is a worrisome inflation point given the narrative that consumers will be engaging more with services companies in 2022 than they did in 2021.
The trade deficit for November widened to $80.2 billion (Briefing.com consensus -$69.4 billion) from $67.2 billion in October. Exports were $0.4 billion higher than October exports and imports were $13.4 billion more than October imports.
The key takeaway relates to the soft growth in exports, which reflects relatively weak demand abroad before the Omicron variant made its presence felt.
Factory orders for manufactured goods increased 1.6% m/m in November (Briefing.com consensus 1.2%) following an upwardly revised 1.2% increase (from 1.0%) in October. Shipments of manufactured goods jumped 0.7% after increasing 2.0% in October.
The key takeaway from the report is the lack of order growth for nondefense capital goods, excluding aircraft -- a proxy for business spending. That connotes a slowdown, but to be fair, it follows a string of monthly increases, so it appears at this juncture to be some natural slowing after an extended period of strength.

Looking ahead, investors will receive the Employment Situation Report for December and Consumer Credit for November on Friday.

Dow Jones Industrial Average -0.3% YTD
S&P 500 -1.5% YTD
Russell 2000 -1.7% YTD
Nasdaq Composite -3.6% YTD

Crude futures briefly top $80 per barrel
06-Jan-22 15:30 ET
Dow -107.43 at 36299.68, Nasdaq +22.05 at 15122.22, S&P +5.55 at 4706.13

[BRIEFING.COM] The S&P 500 is up just 0.1% as buyers struggle to follow through from early-mornin

[ReturntoSender]

Market Snapshot

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

Dow 35911.81 -201.81 (-0.56%)
Nasdaq 14893.75 +86.94 (0.59%)
SP 500 4662.85 +3.82 (0.08%)
10-yr Note -29/32 1.782
NYSE Adv 1301 Dec 1961 Vol 893.2 mln
Nasdaq Adv 1994 Dec 2396 Vol 4.3 bln

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

Moving the Market

-- Market overcomes hurdles in front of three-day weekend, as investors buy the intraday dip

-- Mixed bank earnings, downbeat economic data, interest rates rise

-- Relative strength in the mega-caps

S&P 500 overcomes hurdles in front of three-day weekend
14-Jan-22 16:15 ET
Dow -201.81 at 35911.81, Nasdaq +86.94 at 14893.75, S&P +3.82 at 4662.85

[BRIEFING.COM] The S&P 500 gained 0.1% on Friday after being down 1.0% intraday, as the market overcame mixed bank earnings, downbeat economic data, and a sharp rise in interest rates. The Nasdaq Composite (+0.6%) and Russell 2000 (+0.1%) also closed higher, while the Dow Jones Industrial Average fell 0.6%.

Starting with earnings, JPMorgan Chase (JPM 157.89, -10.34, -6.2%) was an eye sore with a 6% decline after missing revenue estimates, while Wells Fargo (WFC 58.06, +2.06, +3.7%) rallied about 4% on upbeat results. Citigroup (C 66.93, -0.85, -1.3%) and BlackRock (BLK 848.60, -18.98, -2.2%) also underwhelmed investors with their results.

The financials sector (-1.0%) was the second-weakest performer in the S&P 500 behind the real estate sector (-1.2%). The materials sector (-0.8%) was restrained by a Q4 EPS warning from Sherwin-Williams (SHW 308.46, -8.93, -2.8%), which cited raw-material availability and labor headwinds in December.

Conversely, the energy sector (+2.4%) was impressive, rising 2.4% amid another increase in WTI crude futures ($83.87, +1.91, +2.3%). The information technology (+0.9%) and communication services (+0.5%) sectors were instrumental in the comeback amid relative strength in the mega-caps.

The Vanguard Mega Cap Growth ETF (MGK 246.35, +0.73, +0.3%) rose 0.3% in an opportunistic trade after entering the session down 5.8% for the year. For comparison, the Invesco S&P 500 Equal Weight ETF (RSP 161.58, -0.28, -0.2%) declined 0.2% today.

The sharp increase in 10-yr yield, which rose six basis points to 1.77%, did not deter the intraday rebound effort. The 2-yr yield rose seven basis points to 0.96% on expectations for a more assertive Fed. The U.S. Dollar Index advanced 0.4% to 95.16.

Interest rates rose despite retail sales for December, industrial production and capacity utilization for December, and preliminary consumer sentiment for January decreasing on a month-over-month basis. The catalyst was perhaps the inflation component of the consumer sentiment report, which showed 5-year inflation expectations rose to 3.1% -- its highest level since 2011.

Separately, casino stocks outperformed after Bloomberg reported that Macau authorities will issue up to six casino licenses as part of regulatory changes in the city. Las Vegas Sands (LVS 42.99, +5.33, +14.2%) rallied 14% on the news.

Reviewing Friday's economic data:

Total retail sales were down 1.9% month-over-month in December (Briefing.com consensus 0.0%) while retail sales, excluding autos, decreased 2.3% (Briefing.com consensus 0.2%). On a year-over-year basis, total retail sales were up 16.9% and up 18.8% excluding autos.
The key takeaway from the report is that total retail sales, which are not adjusted for inflation, contracted at their fastest pace since last February in the face of broadly higher prices. This suggests that inflation is weighing down consumer spending.
Total industrial production decreased 0.1% in December (Briefing.com consensus 0.3%) following an upwardly revised 0.7% increase (from 0.5%) in November. The capacity utilization rate dipped to 76.5% (Briefing.com consensus 77.1%) from a revised 76.6% (from 76.8%) in November.
The key takeaway from the report is that the December dip was owed to a pullback in manufacturing production after two months of solid growth.
The preliminary January reading for the University of Michigan Index of Consumer Sentiment came in at 68.8 (Briefing.com consensus 68.5) versus the final December reading of 70.6.
The key takeaway from the report is that inflation expectations are becoming more entrenched, as the 5-year inflation expectations rose to 3.1%, representing the first increase above the 3.0% mark since 2011.
Import prices fell 0.2% in December after increasing 0.7% in November. Excluding oil, import prices increased 0.5% after increasing 0.5% in November. Export prices fell 1.8% after increasing 0.8% in November. Excluding agriculture, export prices fell 2.1% after increasing 0.6% in November.
Business inventories increased 1.3% m/m in November (Briefing.com consensus 1.0%) following a revised 1.3% increase (from 1.2%) in October.

Looking ahead, investors will receive the Empire State Manufacturing Index for January, the NAHB Housing Market Index for January, and Net Long-Term TIC Flows for November on Tuesday. As a reminder, the market will be closed on Monday in observance of Martin Luther King, Jr. Day.

Dow Jones Industrial Average -1.2% YTD
S&P 500 -2.2% YTD
Russell 2000 -3.7% YTD
Nasdaq Composite -4.8% YTD

Crude futures settle near $84 per barrel
14-Jan-22 15:30 ET
Dow -286.27 at 35827.35, Nasdaq +51.00 at 14857.81, S&P -6.19 at 4652.84

[BRIEFING.COM] The S&P 500 is down 0.1% to trade near its best levels of the session amid an uptick in the mega-cap stocks, which are seeing some relief after a tough start to the year.

One last look at the sectors shows energy (+2.3%) in a league of its own amid higher oil prices, followed by the information technology (+0.7%) and communication services (+0.5%) sectors. The financials (-1.2%) and real estate (-1.1%) sectors are down more than 1.0%.

WTI crude futures settled higher by 2.3%, or $1.91, to $83.87/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 35028.65 -339.82 (-0.96%)
Nasdaq 14340.25 -166.64 (-1.15%)
SP 500 4532.76 -44.35 (-0.97%)
10-yr Note +4/32 1.834
NYSE Adv 1016 Dec 2292 Vol 942.1 mln
Nasdaq Adv 1443 Dec 2879 Vol 4.6 bln

Industry Watch
Strong: Consumer Staples, Utilities
Weak: Financials, Consumer Discretionary, Information Technology

Moving the Market

-- Investors sell into early strength and market closes at session lows in weak finish

-- Inability to rebound with lower interest rates and encouraging earnings news

-- Selling momentum

Stocks close lower in disappointing session
19-Jan-22 16:20 ET
Dow -339.82 at 35028.65, Nasdaq -166.64 at 14340.25, S&P -44.35 at 4532.76

[BRIEFING.COM] The S&P 500 fell 1.0% on Wednesday, fading an early 0.8% gain despite encouraging earnings news and a decline in interest rates. The Nasdaq Composite (-1.2%) and Dow Jones Industrial Average (-1.0%) performed comparably to the benchmark index, while the Russell 2000 lagged with a 1.6% decline.

Nine of the 11 S&P 500 sectors closed lower, as selling interest accelerated into the close on no specific news. The consumer discretionary (-1.8%), financials (-1.7%), and information technology (-1.4%) sectors led the retreat, while the consumer staples (+0.7%) and utilities (+0.5%) sectors closed higher.

Early on, there was optimism surrounding the EPS beats from Procter & Gamble (PG 162.00, +5.27, +3.4%), UnitedHealth (UNH 462.52, +1.53, +0.3%), Bank of America (BAC 46.44, +0.18, +0.4%), and Morgan Stanley (MS 95.74, +1.73, +1.8%) insofar that they signaled more companies would successfully navigate the higher-cost business environment.

At the same time, interest rates had backed off from overnight highs and continued to push lower throughout the session. It looked like a good set-up for an equity rebound, but unfortunately, that didn't happen. The inability to rebound from sizable losses deterred risk sentiment, fueling a belief that more downside was ahead.

Presumably, investors bought the dip in Treasuries to hide out from the equity volatility, geopolitical uncertainty, and any impact from the Fed's tightening plans. As a reminder, the Fed meets next week to discuss monetary policy.

The 2-yr yield declined two basis points to 1.01% after flirting with 1.08% overnight, and the 10-yr yield declined four basis points to 1.83% after flirting with 1.90% overnight. The U.S. Dollar Index declined 0.2% to 95.56. WTI crude futures approached $87.00 per barrel ($86.86/bbl, +1.38, +1.6%).

Interestingly, homebuilding stocks were noticeably weak despite housing starts and building permits for December beating expectations. There might have been some disappointment that the increases were driven by multi-unit dwellings instead of single-unit dwellings.

The iShares US Home Construction ETF (ITB 71.73, -1.88) fell 2.6%, additionally pressured by KeyBanc Capital Markets downgrading several stocks in the space.

Reviewing Wednesday's economic data:

Housing starts increased 1.4% month-over-month in December to a seasonally adjusted annual rate of 1.702 million (Briefing.com consensus 1.650 million) while permits increased 9.1% month-over-month to 1.873 million (Briefing.com consensus 1.702 million).
The key takeaway from the report is that the increases were driven by multi-unit dwellings. Single-unit starts were down 2.3% and single-unit permits were up just 2.0% with little to no growth in the two largest homebuilding regions (the South and the West).
The weekly MBA Mortgage Applications Index increased 2.3% following a 1.4% increase in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, Existing Home Sales for December, and the Philadelphia Fed Index for January on Thursday.

Dow Jones Industrial Average -3.6% YTD
S&P 500 -4.9% YTD
Russell 2000 -8.1% YTD
Nasdaq Composite -8.3% YTD

[ReturntoSender]

Market Snapshot

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

Dow 34715.39 -313.26 (-0.89%)
Nasdaq 14154.02 -186.23 (-1.30%)
SP 500 4482.73 -50.03 (-1.10%)
10-yr Note +3/32 1.833
NYSE Adv 813 Dec 2426 Vol 941.5 mln
Nasdaq Adv 1196 Dec 3192 Vol 5.0 bln

Industry Watch
Strong: Utilities
Weak: Consumer Discretionary, Materials, Information Technology, Industrials

Moving the Market

-- Investors sell into strength (again) and market closes at session lows

-- Indiscriminate selling

-- Peloton (PTON) drops 24% on CNBC report that it's temporarily halting production of its bikes due to significantly lower demand

Stocks tumble into the close, fading early gains
20-Jan-22 16:20 ET
Dow -313.26 at 34715.39, Nasdaq -186.23 at 14154.02, S&P -50.03 at 4482.73

[BRIEFING.COM] The S&P 500 declined 1.1% on Thursday in another disappointing session, as investors doubled down on the inclination to sell into strength. The benchmark index faded a 1.5% gain and closed the session down 7.0% from its all-time high.

The Nasdaq Composite fell 1.3% after being up 2.1% intraday. The Dow Jones Industrial Average fell 0.9% after being up 1.3% intraday. The Russell 2000 fell 1.9% after being up 2.0% intraday.

Ten of the 11 S&P 500 sectors closed lower after all 11 traded in positive territory in the morning. The consumer discretionary (-1.9%), materials (-1.4%), and information technology (-1.3%) sectors led the retreat, while the utilities sector (+0.1%) eked out a gain.

The bullish bias in the morning was attributed to a belief that the market was oversold on a short-term basis and was due for a bounce. Both the Nasdaq Composite and Russell 2000 entered the session in correction territory, or down at least 10% from a recent high.

Investors waited a little longer than yesterday to sell into strength, which ultimately diminished confidence in the market and scared away potential buyers on the fear that the dip will keep on dipping. The S&P 500 briefly topped the 4600 level around 10:00 a.m. ET before running into negative headlines later in the day.

Selling interest picked up after CNBC reported that Peloton (PTON 24.22, -7.62, -23.9%) is temporarily pausing production of its bikes due to waning consumer demand. Later, The Wall Street Journal reported that the U.S. gave approval for Estonia, Lithuania, and Latvia to send arms to Ukraine.

The Peloton story served as reminder of the risks that many story stocks still face if their stories don't play out as intended. The Ukraine story was more of a negative geopolitical headline in the middle of a market downturn, meaning the market was less disturbed by the report and saw it more as a convenient selling excuse.

The latter theory was supported by the lack of a safe-haven trade in Treasuries and gold ($1842.60/ozt, unch). The 10-yr yield increased just one basis point to 1.83% while the 2-yr yield rose four basis points to 1.05% on continued expectations for a more hawkish Fed. The U.S. Dollar Index gained 0.4% to 96.85. WTI crude futures fell 0.7%, or $0.57, to $86.29/bbl.

Pivoting to earnings news, United Airlines (UAL 42.88, -1.52, -3.4%) and American Airlines (AAL 16.76, -0.55, -3.2%) were swept up in the downturn after providing cautious near-term outlooks. Travelers (TRV 165.18, +5.11, +3.2%) and Union Pacific (UNP 242.07, +2.58, +1.1%) were two earnings standouts.

Reviewing Thursday's economic data:

Initial claims for the week ending January 15 increased by 55,000 to 286,000 (Briefing.com consensus 211,000) while continuing claims for the week ending January 8 increased by 84,000 to 1.635 million.
The key takeaway from the report is that it is apt to be construed as a sign of the negative impact the Omicron variant is having on the labor market since it is the highest initial claims number since October; moreover, this report includes the week in which the survey for the January employment report was conducted, so the higher print could dial down expectations for the gain in January nonfarm payrolls.
Existing home sales declined 4.6% m/m in December to a seasonally adjusted annual rate of 6.18 million (Briefing.com consensus 6.42 million). Total sales in December were down 7.1% from a year ago. Total home sales in 2021, however, reached 6.12 million, which was up 8.5% year-over-year and the highest annual level since 2006.
The key takeaway from the report is that prices remain high as inventory remains extremely tight. The supply constraint is crimping sales growth in the existing home market, as are increasing affordability pressures created by the high selling prices and rising mortgage rates.
The Philadelphia Fed Index for January increased to 23.2 (Briefing.com consensus 20.0) from 15.4 in December.

Looking ahead, investors will receive the Conference Board's Leading Economic Index for December on Friday.

Dow Jones Industrial Average -4.5% YTD
S&P 500 -6.0% YTD
Russell 2000 -9.9% YTD
Nasdaq Composite -9.5% YTD

Market turns negative amid selling momentum
20-Jan-22 15:30 ET
Dow -41.77 at 34986.88, Nasdaq -62.00 at 14278.25, S&P -13.83 at 4518.93

[BRIEFING.COM] The S&P 500 has turned negative with a 0.3% decline as selling interest picks up. The inclination to sell into strength has undercut confidence in this market.

One last look at the sectors shows consumer discretionary (-1.0%) leading the market lower with a 1.0% decline amid weakness in Amazon (AMZN 3053.38, -73.25, -2.4%). Conversely, the utilities (+0.6%), energy (+0.4%), financials (+0.2%), and health care (+0.2%) sectors trade higher.

WTI crude futures settled lower by 0.7%, or $0.57, to $86.29/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34364.50 +99.13 (0.29%)
Nasdaq 13855.13 +86.21 (0.63%)
SP 500 4410.21 +12.27 (0.28%)
10-yr Note +4/32 1.717
NYSE Adv 1459 Dec 1804 Vol 1.5 bln
Nasdaq Adv 2159 Dec 1710 Vol 6.9 bln

Industry Watch
Strong: Consumer Discretionary, Energy, Industrials
Weak: Utilities, Health Care, Information Technology

Moving the Market

-- Small-caps lead intraday recovery effort; market was oversold and due for a bounce

-- Consternations about the Ukraine-Russia situation, the Fed's policy meeting, and earnings this week

-- S&P 500 enters contraction territory, Nasdaq Composite approaches bear market territory

Stocks make huge comeback after facing steep losses
24-Jan-22 16:20 ET
Dow +99.13 at 34364.50, Nasdaq +86.21 at 13855.13, S&P +12.27 at 4410.21

[BRIEFING.COM] The S&P 500 increased 0.3% on Monday in a furious buy-the-dip trade after being down as much as 4.0% intraday. The Nasdaq Composite gained 0.6% after being down 4.9% intraday, and the Dow Jones Industrial Average gained 0.3% after being down 3.3% intraday.

The Russell 2000 outperformed with a 2.3% gain after being down as much as 2.8%. The small-cap index traded in bear market territory today, or down at least 20% from a recent high, so its outperformance stemmed from the fact that it was hit the hardest.

Eight of the 11 S&P 500 sectors closed higher after all 11 traded with steep losses. The consumer discretionary sector (+1.2%) led the recovery effort with a 1% gain, while the defensive-oriented utilities (-1.0%), health care (-0.4%), and consumer staples (-0.4%) sectors closed lower.

The session opened on a weak note, which gave way to a steady decline that accentuated the market's concerns on the Fed's tightening plans, the Russia-Ukraine situation, and peak earnings growth, among others. The selling itself was a concern, too, leading to expectations for more downside -- the CBOE Volatility Index (29.90, +1.05, +3.6%) spiked as much as 35% before calming down.

There's no doubt the market was oversold on a short-term basis and was due for a bounce, but no one really knew when that would happen. Fortunately for the bulls, the bounce happened today on no specific news and some short-covering activity in front of an eventful week in earnings, the Fed, and economic data.

It's worth noting that the Nasdaq Composite bottomed just before it could enter bear market territory. The tech-sensitive index was down 19.2% from its all-time high while the S&P 500 was down 12.4% from its all-time high.

Strikingly, the Treasury market never really exhibited a flight for safety, suggesting that the early weakness was more technically-oriented. The 10-yr yield declined just one basis point to 1.74% after trading at 1.71% during the day while the 2-yr yield declined two basis points to 0.97%. The U.S. Dollar Index rose 0.3% to 95.92. WTI crude fell 2.2%, or $1.86, to $83.30/bbl.

Separately, Kohl's (KSS 63.71, +16.87, +36.0%) stood out with a 36% gain after confirming takeover interest from PE firms, which are reportedly willing to acquire the company for at least $64 per share.

Reviewing Monday's economic data:

The preliminary IHS Markit Services PMI for January fell to 55.0 from 57.7 in the final reading for December. The preliminary IHS Markit Services PMI for January fell to 50.9 from 57.6 in the final reading for December.

Looking ahead, investors will receive the Conference Board's Leading Economic Index for January, the S&P Case-Shiller Home Price Index for November, and the FHFA Housing Price Index for November on Tuesday.

Dow Jones Industrial Average -5.4% YTD
S&P 500 -7.5% YTD
Russell 2000 -9.4% YTD
Nasdaq Composite -11.4% YTD

Crude futures settle lower by 2%
24-Jan-22 15:30 ET
Dow -399.27 at 33866.10, Nasdaq -144.87 at 13624.05, S&P -56.81 at 4341.13

[BRIEFING.COM] The S&P 500 is down 1.4% to trade near session "highs."

One last look at the sector performances shows utilities (-2.4%) and health care (-1.9%) underperforming with steep losses, while the consumer discretionary sector (-0.6%) outperforms on a relative basis with a 0.6% decline.

WTI crude futures settled lower by 2.2%, or $1.86, to $83.30/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34297.73 -66.77 (-0.19%)
Nasdaq 13539.30 -315.83 (-2.28%)
SP 500 4356.45 -53.68 (-1.22%)
10-yr Note +2/32 1.749
NYSE Adv 1337 Dec 1922 Vol 1.2 bln
Nasdaq Adv 1883 Dec 2419 Vol 4.9 bln

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

Moving the Market

-- Growth stocks pace decline in volatile session

-- Dow outperforms on a relative basis amid better-than-expected earnings reports from five components

-- Tentative trading activity in front of FOMC policy decision tomorrow

Growth stocks pace decline in volatile session
25-Jan-22 16:15 ET
Dow -66.77 at 34297.73, Nasdaq -315.83 at 13539.30, S&P -53.68 at 4356.45

[BRIEFING.COM] The S&P 500 fell 1.2% on Tuesday in another volatile session. The benchmark index was down as much as 2.8% in the morning, then briefly peaked above its flat line in the afternoon. Growth stocks paced today's decline and accounted for the underperformance of the Nasdaq Composite (-2.3%).

The Dow Jones Industrial Average (-0.2%) was unable to hold onto a late gain and closed slightly lower. The Russell 2000 fell 1.5%.

From a sector perspective, the information technology (-2.3%), communication services (-2.2%), and consumer discretionary (-1.8%) sectors underperformed with steep losses. Conversely, the energy (+4.0%) and financials (+0.5%) sectors were only sectors that closed higher amid higher oil prices ($85.37, +2.06, +2.5%) and Treasury yields. For emphasis, the energy sector rose 4%.

The early weakness was symptomatic of the recent tendency to sell into any indication of strength (yesterday's specifically), which raised concerns about Monday's comeback being a potential head fake.

Encouragingly, the major indices traded well above yesterday's lows, which was good for overall sentiment and may have signaled an underlying hope that Fed Chair Powell could sound less hawkish than feared following the FOMC's policy statement tomorrow.

As for the intraday rebound, there wasn't any specific news to account for the price action, although better-than-expected earnings reports did appear to be an influential driver in the Dow's relative outperformance despite an initially mixed response.

Dow components Johnson & Johnson (JNJ 167.63, +4.66, +2.9%), American Express (AXP 172.96, +14.03, +8.8%), IBM (IBM 136.10, +7.28, +5.7%), 3M (MMM 173.73, +0.93, +0.5%), and Verizon (VZ 52.90, -0.06, -0.1%) each topped EPS estimates, and VZ was the only one that didn't close higher. AXP stood out with a 9% gain, followed by IBM's 6% gain.

General Electric (GE 91.11, -5.80, -6.0%) disappointed shareholders with a revenue miss and downside FY22 EPS guidance, while Microsoft (MSFT 288.49, -7.88, -2.7%) investors leaned cautiously in front of its earnings report after the close.

Microsoft, like other growth stocks, also had to contend with upwards pressure in interest rates. The 10-yr Treasury note yield rose five basis points to 1.78% while the 2-yr yield rose five basis points to 1.02%. The U.S. Dollar Index increased 0.1% to 95.98.

Separately, NVIDIA (NVDA 223.24, -10.48) fell 4.5% amid a Bloomberg report indicating that the company is planning to scrap its $40 billion acquisition of Arm Holdings due to ongoing regulatory issues. The FTC said it's going to sue to block Lockheed Martin's (LMT 387.18, +13.85, +3.7%) $4.4 billion acquisition of Aerojet Rocketdyne (AJRD 36.65, -8.35, -18.6%).

Reviewing Tuesday's economic data:

The Conference Board's Consumer Confidence Index dropped to 113.8 (Briefing.com consensus 112.0) from a downwardly revised 115.2 (prior 115.8) in December. The dip came after three consecutive monthly increases but is still well above the 87.1 reading registered in the same period a year ago.
The key takeaway from the report is the moderation in the outlook, which points to some potential weakening economic activity in the short term.
The November FHFA Housing Price Index increased 1.1% m/m following a 1.1% increase in October, and the November S&P Case-Shiller Home Price Index increased 18.3% yr/yr following a revised 18.5% increase (from 18.4%) in October.

Looking ahead, investors will receive New Home Sales for December; Advance Intl. Trade in Goods, Retail Inventories, and Wholesale Inventories for December; and the weekly MBA Mortgage Applications Index on Wednesday. Of course, the FOMC Rate Decision will follow the data in the afternoon.

Dow Jones Industrial Average -5.6% YTD
S&P 500 -8.6% YTD
Russell 2000 -10.8% YTD
Nasdaq Composite -13.5% YTD

Energy stocks following oil prices higher
25-Jan-22 15:30 ET
Dow -26.39 at 34338.11, Nasdaq -236.00 at 13619.13, S&P -41.62 at 4368.51

[BRIEFING.COM] The S&P 500 is down 0.8% after peaking above its flat line earlier this hour.

One last look at the S&P 500 sectors shows information technology (-1.5%), communication services (-1.6%), and consumer discretionary (-1.5%) each down 1.5%, while the energy (+3.9%) and financials (+0.6%) sectors continue to trade higher amid an increase in oil prices and Treasury yields.

WTI crude futures settled higher by 2.8%, or $2.36, to $85.66/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34725.47 +564.69 (1.65%)
Nasdaq 13770.57 +417.79 (3.13%)
SP 500 4431.85 +105.34 (2.43%)
10-yr Note +2/32 1.783
NYSE Adv 2216 Dec 1043 Vol 1.1 bln
Nasdaq Adv 2807 Dec 1487 Vol 4.9 bln

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

Moving the Market

-- Stocks surge into the close on no specific news

-- Apple (AAPL) and Visa (V) rally on better-than-expected earnings reports

-- Month-end rebalancing activity, bargain-hunting mindset, fear of missing out, lower interest rates

-- PCE inflation data was roughly in-line with expectations, remained elevated

Apple steers rebound rally
28-Jan-22 16:15 ET
Dow +564.69 at 34725.47, Nasdaq +417.79 at 13770.57, S&P +105.34 at 4431.85

[BRIEFING.COM] The S&P 500 rose 2.4% on Friday, overcoming an early 0.8% decline, as the market rallied into the close on no specific news while Apple (AAPL 170.33, +11.11, +7.0%) steered the effort following its better-than-expected earnings report. Shares of Apple rose 7%.

The Nasdaq Composite gained 3.1%, the Dow Jones Industrial Average gained 1.7%, and the Russell 2000 gained 1.9%.

Ten of the 11 S&P 500 sectors closed higher, paced by the information technology sector (+4.3%), which also featured a 10% earnings-driven gain in Visa (V 228.00, +21.85, +10.6%). The energy sector (-0.6%) was the lone exception, pressured by an EPS miss from Chevron (CVX 130.67, -4.70, -3.5%).

While Apple deserves credit today, it didn't have the level of pull on the market as some would have liked. At one point, declining issues were up by more than a 2:1 margin at the NYSE and Nasdaq, and even the technology sector slipped into negative territory amid early weakness in the semiconductor stocks.

That might have been due to underlying concerns about the Fed slowing down growth with tighter monetary policy, as well as more companies like Caterpillar (CAT 201.16, -11.01, -5.2%) and Western Digital (WDC 49.90, -3.94, -7.3%) drawing attention to higher costs and supply chain issues. In other words, Apple was more a company-specific event.

Nevertheless, the market held it together, further supported by month-end rebalancing activity, a bargain-hunting mindset, lower interest rates, a fear of missing out on further rebound gains. Treasury yields declined following the release of inflation reports that were roughly in-line with expectations.

Briefly, the PCE Price Index increased 0.4% m/m in December, as expected, and was up 5.8% yr/yr. The Q4 Employment Cost Index increased 1.0% (Briefing.com consensus 1.1%) following a 1.3% increase in the third quarter. Despite hope that inflation rates could soon ease, the PCE data still supported the Fed's case to be more assertive in tightening policy.

The 2-yr yield decreased two basis points to 1.17%, and the 10-yr yield decreased three basis points to 1.78%. The U.S. Dollar Index was little changed at 97.24. WTI crude futures increased just 0.1%, or $0.12, to $86.74/bbl.

Robinhood Markets (HOOD 12.73, +1.12, +9.7%), which was down 14% at the open on disappointing earnings news/guidance, turned around with the broader market and closed higher by 10% -- further exemplifying the volatile conditions in the market.

Interestingly, the S&P 500 closed three points below its 200-day moving average (4435).

Reviewing Friday's economic data:

Personal income increased 0.3% month-over-month in December (Briefing.com consensus 0.5%) while personal spending declined 0.6% (Briefing.com consensus -0.6%). The PCE Price Index increased 0.4% month-over-month, as expected, and was up 5.8% year-over-year versus 5.7% in November. The core PCE Price Index jumped 0.5% (Briefing.com consensus 0.4%) and was up 4.9% year-over-year versus 4.7% in November.
The key takeaway from the report is the recognition that the inflation rate in the Fed's preferred inflation gauge is still rising, which should of course mean that the target range for the fed funds rate should soon be doing the same.
The final January reading for the University of Michigan Index of Consumer Sentiment dropped to 67.2 (Briefing.com consensus 68.5) from the preliminary reading of 68.8. The final December reading was 70.6. The January reading is the lowest level for the index since November 2012.
The key takeaway from the report is that consumer sentiment is dropping as inflation pressures increase, raising concerns about falling real incomes that are apt to translate into lower levels of spending.
The Q4 Employment Cost Index increased 1.0% (Briefing.com consensus 1.1%) for the three-month period ending in December 2021 following a 1.3% increase in the third quarter. Wages and salaries, which account for about 70% of compensation costs, increased 1.1%, while benefit costs, which make up the remainder of compensation costs, increased 0.9%.
The key takeaway from the report is that wages and salaries for workers were up from the same period a year ago, yet those gains have increasingly been subsumed by inflation, evidenced by the 6.5% increase in the PCE Price Index seen in the advance Q4 GDP report.

Looking ahead, investors will receive the Chicago PMI for January on Monday.

Dow Jones Industrial Average -4.4% YTD
S&P 500 -7.0% YTD
Nasdaq Composite -12.3% YTD
Russell 2000 -13.1% YTD

Crude futures eke out gain
28-Jan-22 15:30 ET
Dow +269.85 at 34430.63, Nasdaq +240.21 at 13592.99, S&P +58.58 at 4385.09

[BRIEFING.COM] There are 30 minutes left in the trading week, and the S&P 500 is up 1.4%, trimming its weekly loss to 0.3%.

The information technology sector reigns supreme with a 2.8% gain, followed by the real estate (+2.1%) and communication services (+1.7%) sectors. The energy (-1.6%), materials (-0.4%), and industrials (-0.4%) sectors still trade lower.

WTI crude futures settled higher by 0.1%, or $0.12, to $86.74/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 35131.86 +406.39 (1.17%)
Nasdaq 14239.88 +469.31 (3.41%)
SP 500 4515.55 +83.70 (1.89%)
10-yr Note -3/32 1.804
NYSE Adv 2673 Dec 621 Vol 1.4 bln
Nasdaq Adv 3564 Dec 805 Vol 5.0 bln

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

Moving the Market

-- Growth stocks pace rebound rally

-- Month-end rebalancing activity

-- S&P 500 reclaims 200-day moving average (4437)

Stocks end January on a high note
31-Jan-22 16:15 ET
Dow +406.39 at 35131.86, Nasdaq +469.31 at 14239.88, S&P +83.70 at 4515.55

[BRIEFING.COM] The S&P 500 rose 1.9% on Monday in a steady advance paced by the growth stocks. The Nasdaq Composite (+3.4%) and Russell 2000 (+3.1%) outperformed with gains over 3.0%, while the Dow Jones Industrial Average underperformed on a relative basis with a 1.2% gain.

There weren't any specific macro catalysts today. Instead, the market received support from month-end rebalancing activity that disproportionately benefited growth stocks after a dismal January, an improving technical posture as the S&P 500 reclaimed its 200-day moving average (4437), and a fear of missing out on further gains.

All 11 S&P 500 sectors closed in positive territory amid another strong finish. The consumer discretionary (+3.8%), information technology (+2.7%), and communication services (+2.4%) sectors, which contain the mega-caps, finished atop the standings while the energy sector increased just 0.4%.

The rebalancing into growth stocks was further aided by positive-minded analyst recommendations, specifically in Tesla (TSLA 936.72, +90.37, +10.7%), Netflix (NFLX 427.14, +42.78, +11.1%), Spotify (SPOT 196.26, +23.28, +13.5%), and Beyond Meat (BYND 65.13, +8.59, +15.2%), which were all upgraded to the equivalent of Buy ratings.

Citrix Systems (CTXS 101.94, -3.61, -3.4%) was an exception after announcing a deal to be taken private for $16.5 billion, or $104 per share, in cash. Shareholders were disappointed by the purchase price, which was less than the closing price last Friday.

Separately, Atlanta Fed President Bostic (not an FOMC voter) said a 50-basis-point rate-hike in March is a possibility but not his preference. Kansas City Fed President George (FOMC voter) commented that gradual rate rises are always preferred while Richmond Fed President Barkin (not an FOMC voter) told CNBC that the speed at which the Fed hikes rates depends on the economy.

The Treasury market, meanwhile, was much more reserved than the stock market. The 2-yr yield decreased one basis point to 1.16%, and the 10-yr yield was unchanged at 1.78%. The U.S. Dollar Index pulled back 0.7% to 96.63. WTI crude futures settled above $88 per barrel ($88.16, +1.42, +1.6%).

Overall, today was a light news day, at least compared to the rest of the week, which will feature more mega-cap earnings, key manufacturing and employment data, and central bank meetings in Europe. Rather than shying away from risk assets in front of these events, investors were steadfast in the rebound pursuit.

Monday's economic data was limited to the Chicago PMI for January, which increased to 65.2 (Briefing.com consensus 62.5) from a revised 64.3 (from 63.1) in December. Looking ahead, investors will receive the ISM Manufacturing Index for January, Construction Spending for December, and the JOLTS - Job Openings report for December on Tuesday.

Dow Jones Industrial Average -3.3% YTD
S&P 500 -5.3% YTD
Nasdaq Composite -9.0% YTD
Russell 2000 -9.7% YTD

Crude futures settle above $88 per barrel
31-Jan-22 15:30 ET
Dow +191.53 at 34917.00, Nasdaq +323.51 at 14094.08, S&P +50.70 at 4482.55

[BRIEFING.COM] The S&P 500 is up 1.2% and has seen some minor volatility in the past 30 minutes.

One last look at the sectors shows consumer discretionary (+3.0%) still in the lead with a 3% gain, while the consumer staples sector (+0.2%) continues to cling onto a slim gain. All 11 sectors are trading higher.

WTI crude futures settled higher by 1.6%, or $1.42, to $88.16/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 35629.33 +224.09 (0.63%)
Nasdaq 14417.54 +71.54 (0.50%)
SP 500 4589.38 +42.84 (0.94%)
10-yr Note +2/32 1.774
NYSE Adv 1416 Dec 1827 Vol 986.5 mln
Nasdaq Adv 1571 Dec 2944 Vol 4.5 bln

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

Moving the Market

-- S&P 500 trades at session highs

-- Alphabet (GOOG) reports better-than-expected earnings results and announces 20-for-1 stock split

-- ADP Employment Change report showed unexpected decline in private-sector payrolls in January

-- U.S. to send approximately 3,000 additional troops closer to Ukraine

Alphabet leads S&P 500 higher
02-Feb-22 16:15 ET
Dow +224.09 at 35629.33, Nasdaq +71.54 at 14417.54, S&P +42.84 at 4589.38

[BRIEFING.COM] The S&P 500 advanced 0.9% on Wednesday, driven by Alphabet (GOOG 2960.73, +203.16, +7.4%) following its earnings report and helped by lingering rebound momentum. The Dow Jones Industrial Average (+0.6%) and Nasdaq Composite (+0.5%) followed suit, while the Russell 2000 fell 1.0%.

Shares of Alphabet gained 7% after the company reported better-than-expected Q4 results and announced a 20-for-1 stock split. The latter generated speculation of greater retail interest in the stock and a potential inclusion in the Dow at some point.

The S&P 500 communication services sector, where Alphabet resides, climbed 3.1% to the top of the sector rankings. The other sectors also closed higher, except for consumer discretionary (-0.5%), which included earnings-related weakness in Starbucks (SBUX 97.73, -1.03, -1.1%) and General Motors (GM 53.50, -0.57, -1.1%).

Despite the strong performance in the S&P 500, and the gains in ten of its 11 sectors, there wasn't the same level of bullishness from the prior days. There were more declining issues than advancing issues at both the NYSE and Nasdaq, and PayPal (PYPL 132.57, -43.23, -24.6%) plunged 25% on disappointing earnings results/guidance.

That might have been due to profit-taking pressure on the recognition that the major indices have bounced strongly off their January lows, pushing the Fed's hawkish policy stance to the background of the trading narrative.

In addition, there were some misgivings about the U.S. sending 3,000 troops to NATO countries near Ukraine and the disappointing ADP Employment Change report. ADP estimated a net-loss of 301,000 jobs to private-sector payrolls in January (Briefing.com consensus +220,000), lowering market expectations for the Employment Situation report on Friday.

The market hung in there, though, and after dipping into negative territory in early action, the large-cap indices drifted higher the rest of the session. Advanced Micro Devices (AMD 122.76, +5.98, +5.1%) was another earnings standout.

The Treasury market saw modest demand from buyers amid the geopolitical risks and negative employment data. The 2-yr yield decreased one basis point to 1.15%, and the 10-yr yield decreased two basis points to 1.77%. The U.S. Dollar Index fell 0.4% to 95.99 amid relative strength in the euro, which was a byproduct of ECB rate-hike expectations.

WTI crude futures settled little changed ($88.17/bbl, -0.04, -0.1%). In related news, OPEC+ reaffirmed its decision to increase production by 400,000 barrels per day in March, and the EIA reported an unexpected draw in weekly crude inventories (1.05 million).

Reviewing Wednesday's economic data:

The ADP Employment Change report estimated a net-loss of 301,000 jobs to private-sector payrolls in January (Briefing.com consensus +220,000). The increase in December was downwardly revised to 776,000 from 807,000.
The weekly MBA Mortgage Applications Index rose 12.0% following a 7.1% decline in the prior week.

Looking ahead to Thursday, investors will receive the ISM Non-Manufacturing Index for January, the weekly Initial and Continuing Claims report, Factory Orders for December, preliminary Q4 Productivity and Unit Labor Costs, and the final IHS Markit Services PMI for January.

Dow Jones Industrial Average -2.0% YTD
S&P 500 -3.7% YTD
Nasdaq Composite -7.9% YTD
Russell 2000 -9.6% YTD

Crude futures settle slightly lower amid OPEC+ decision, EIA data
02-Feb-22 15:30 ET
Dow +214.74 at 35619.98, Nasdaq +54.25 at 14400.25, S&P +39.36 at 4585.90

[BRIEFING.COM] The S&P 500 is up 1.0% as the rebound momentum persists. The benchmark index is now up 8.6% since its low on Jan. 24.

One last look at the sector performances shows communication services (+3.5%), real estate (+1.7%), health care (+1.5%), and utilities (+1.4%) with gains over 1.0%. The consumer discretionary sector (-0.6%) underperforms in negative territory.

WTI crude futures settled lower by 0.1%, or $0.04, to $88.17/bbl. In related news, OPEC+ reaffirmed its decision to increase production by 400,000 barrels per day in March while the EIA reported an unexpected draw in weekly crude inventories (1.05 million).

[ReturntoSender]

Market Snapshot

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

Dow 35462.78 +371.65 (1.06%)
Nasdaq 14194.45 +178.79 (1.28%)
SP 500 4521.54 +37.67 (0.84%)
10-yr Note -25/32 1.962
NYSE Adv 1943 Dec 1313 Vol 890.4 mln
Nasdaq Adv 2864 Dec 1701 Vol 4.2 bln

Industry Watch
Strong: Materials, Consumer Discretionary, Financials, Information Technology
Weak: Energy, Communication Services, Real Estate

Moving the Market

-- Stocks drift higher in relatively broad-based advance, excluding energy stocks

-- 10-yr yield settles at 1.95%, oil prices dip below $90/bbl

-- Amgen (AMGN) jumps 8% on pleasing earnings news

Stocks drift higher along with interest rates
08-Feb-22 16:20 ET
Dow +371.65 at 35462.78, Nasdaq +178.79 at 14194.45, S&P +37.67 at 4521.54

[BRIEFING.COM] The S&P 500 gained 0.8% on Tuesday, as the market drifted higher while investors digested another increase in interest rates and individual storylines. The Dow Jones Industrial Average (+1.1%), Nasdaq Composite (+1.3%), and Russell 2000 (+1.6%) each outperformed the benchmark index.

Eight of the 11 S&P 500 sectors closed higher, including five that gained at least 1.0%. The materials sector (+1.6%) was the top-performer, and the heavily-weighted information technology sector (+1.3%) wasn't too far behind.

The energy sector (-2.1%), on the other hand, declined 2% as oil prices fell below $90 per barrel ($89.43, -1.84, -2.0%) amid speculation that the U.S. could allow Iran to increase its oil exports. Reports indicated that U.S.-Iran nuclear talks have made progress.

Regarding interest rates, the 10-yr yield came within three basis points of the 2.00% level before setting at 1.95%, or four basis points above yesterday's settlement. The 2-yr yield rose five basis points to 1.34% amid lingering expectations for five rate hikes this year. The U.S. Dollar Index increased 0.2% to 95.60.

Encouragingly, the higher rates benefited the financials sector (+1.4%) without hurting the growth stocks. The Russell 3000 Growth Index rose 1.1%, besting the 0.7% gain in the Russell 3000 Value Index. For what it's worth, the S&P 500 closed essentially at yesterday's high (4521.86).

Amgen (AMGN 241.01, +17.48, +7.8%), meanwhile, rose 8% after the Dow component reported better-than-expected earnings results along with encouraging EPS guidance. Pfizer (PFE 51.70, -1.51, -2.8%) fell 3% after issuing disappointing full-year guidance.

Peloton (PTON 37.27, +7.52, +25.3%) also reported downside guidance in addition to below-consensus fiscal Q2 results, but shares jumped 25% after the company announced a CEO change and cost-cutting measures. Shareholders were hopeful that the company could turn itself around or at least put itself in a more valuable position for a takeover.

In M&A news, Mandiant (MNDT 17.75, +2.69, +17.9%) spiked 18% after Bloomberg reported that Microsoft (MSFT 304.56, +3.61, +1.2%) might bid for the company. NVIDIA (NVDA 251.08, +3.80, +1.5%) officially terminated its acquisition of Arm Holdings.

Reviewing Tuesday's economic data:

The December Trade Balance Report showed a widening in the trade deficit to $80.7 billion (Briefing.com consensus -$79.6 billion) from an upwardly revised $79.3 billion (from -$80.2 billion) in November. December exports were $3.4 billion more than November exports while December imports were $4.8 million more than November imports.
The key takeaway from the report is that the Omicron variant didn't seriously disrupt trade activity in December, although there were signs of a slowdown in China as U.S. goods exports there decreased by $2.2 billion.
The NFIB Small Business Optimism Index for January decreased to 97.1 from 98.9 in December.

Looking ahead, investors will receive Wholesale Inventories for December and the weekly MBA Mortgage Applications Index on Wednesday.

Dow Jones Industrial Average -2.4% YTD
S&P 500 -5.1% YTD
Russell 2000 -8.9% YTD
Nasdaq Composite -9.3% YTD

Crude futures dip below $90 per barrel amid U.S.-Iran talks
08-Feb-22 15:30 ET
Dow +332.91 at 35424.04, Nasdaq +113.36 at 14129.02, S&P +29.24 at 4513.11

[BRIEFING.COM] The S&P 500 is up 0.6% after receiving modest bump earlier this hour on no specific news.

One last look at the sectors shows materials (+1.4%), financials (+1.4%), consumer discretionary (+1.3%), and information technology (+1.0%) still trading higher by at least 1.0%. Conversely, the energy sector (-2.5%) remains an eye sore with a 2.5% decline due to the decline in oil prices.

WTI crude futures settled lower by 2.0%, or $1.84, to $89.43/bbl amid reports indicating that U.S.-Iran nuclear talks have made progress, raising the possibility that Iran would be allowed to increase its oil exports.

[ReturntoSender]

Market Snapshot

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

Dow 35241.59 -526.47 (-1.47%)
Nasdaq 14185.64 -304.73 (-2.10%)
SP 500 4504.08 -83.10 (-1.81%)
10-yr Note -18/32 1.993

NYSE Adv 810 Dec 2435 Vol 1.0 bln
Nasdaq Adv 1452 Dec 2976 Vol 5.1 bln


Industry Watch
Strong: Energy, Materials, Financials

Weak: Information Technology, Consumer Discretionary, Real Estate, Utilities


Moving the Market
-- CPI data for January was hotter than expected, fuels rate-hike fears

-- Treasury yields spike, 10-yr yield breaks above 2.00%

-- Saint Louis Fed President Bullard (FOMC voter) said he's open to larger rate hikes and wants full-point increase by July 1

-- Better-than-expected earnings reports





Stocks fall amid rate-hike angst
10-Feb-22 16:20 ET

Dow -526.47 at 35241.59, Nasdaq -304.73 at 14185.64, S&P -83.10 at 4504.08
[BRIEFING.COM] The S&P 500 fell 1.8% on Wednesday, as rate-hike angst was fueled by the Consumer Price Index (CPI) for January and by comments from St. Louis Fed President Bullard (FOMC voter). The Nasdaq Composite (-2.1%), Dow Jones Industrial Average (-1.5%), and Russell 2000 (-1.6%) also suffered steep losses.

All 11 S&P 500 sectors closed lower with eight sectors losing at least 1.0%. The information technology (-2.8%) and real estate (-2.9%) sectors led the retreat, while the materials (-0.6%) and energy (-0.7%) sectors posted modest declines. Energy stocks received offsetting support from elevated oil prices ($89.84, +0.19, +0.2%).

Specifying the data, total CPI increased 0.6% month-over-month in January (Briefing.com consensus 0.5%), and so did core CPI (Briefing.com consensus 0.5%), which excludes food and energy. On a year-over-year basis, they were running at their highest levels since 1982 at 7.5% and 6.0%, respectively.

The report catalyzed losses in the equity futures market and the Treasury market, where yields jumped double-digit basis points. The 10-yr yield cracked above 2.00% and settled at 2.04%, or ten basis points above yesterday's settlement. The 2-yr yield spiked 22 basis points to 1.56%. The U.S. Dollar Index gained 0.2% to 95.69.

To the market's credit, each of the major indices quickly recovered their early declines (ranging from 0.8-1.9%) shortly after the open. The Russell 2000 even traded up as much as 1.0%.

The interest-rate action, however, seemed to keep a lid on the recovery effort, and the market rolled over after St. Louis Fed President Bullard told Bloomberg that he supports hiking rates by 100 basis points by July 1. The FOMC voter supported one hike being a 50-basis-point increase.

The CME FedWatch Tool was pricing in a 50% probability for a 50-bps hike in March after the CPI report. After Mr. Bullard's comments, the probability increased to 98.6% by the close, versus 24.0% yesterday.

Even though the market was already anticipating a series of rate hikes this year, the hawkish commentary raised concerns that the Fed's tightening plans could be more aggressive and sooner than expected because of persistent inflation pressures.

On a more positive note, the S&P 500 still closed 6.7% above its low on Jan. 24. The benchmark index has been range-bound this month, bouncing between its 200-day moving average (4451) and 50-day moving average (4611), trying to figure out its next move.

Separately, investors received a ton of earnings news. Dow components Walt Disney (DIS 152.16, +4.93, +3.4%) and Coca-Cola (KO 61.37, +0.33, +0.5%) closed higher after beating expectations, while Uber (UBER 37.75, -2.44, -6.1%) and Affirm (AFRM 58.82, -14.86, -21.2%) closed sharply lower following their reports. AFRM's results were leaked early.

Reviewing Thursday's economic data, which featured the Consumer Price Index for January:

Total CPI increased 0.6% month-over-month in January (Briefing.com consensus +0.5%) on the heels of an upwardly revised 0.6% (from 0.5%) for December. Core CPI, which excludes food and energy, was also up 0.6% month-over-month (Briefing.com consensus +0.5%) after increasing 0.6% in December. On a year-over-year basis, total CPI is up 7.5% -- the highest since February 1982 -- and core CPI is up 6.0% -- the highest since August 1982.
The key takeaway from the report should be obvious: the inflation picture is getting worse, making it clear yet again that the Fed is behind the curve in fighting inflation.
Initial jobless claims for the week ending February 5 decreased by 16,000 to 223,000 (Briefing.com consensus 234,000) while continuing claims for the week ending January 29 held steady at 1.621 million.
The key takeaway from the report is that it shows the labor market is back in a tighter spot with the peak of Omicron constraints having passed, and that may very well be a harbinger of ongoing wage inflation pressures for employers.

Looking ahead, investors will receive the preliminary University of Michigan Index of Consumer Sentiment for February on Friday.

Dow Jones Industrial Average -3.0% YTD
S&P 500 -5.5% YTD
Russell 2000 -8.9% YTD
Nasdaq Composite -9.3% YTD



Crude futures settle slightly higher
10-Feb-22 15:30 ET

Dow -531.53 at 35236.53, Nasdaq -289.40 at 14200.97, S&P -81.43 at 4505.75
[BRIEFING.COM] The S&P 500 is trading near session lows with a 1.6% decline. The Russell 2000 is down 1.2%.

One last look at the sectors losses ranging from 0.3% (materials) to 2.5% (information technology and real estate). The Philadelphia Semiconductor Index is another weak spot, showing a 2.8% decline.

WTI crude futures settled higher by 0.2%, or $0.19, to $89.84/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34566.17 -171.89 (-0.49%)
Nasdaq 13790.91 -0.24 (0.00%)
SP 500 4401.67 -16.97 (-0.38%)
10-yr Note -26/32 1.989
NYSE Adv 908 Dec 2316 Vol 1.0 bln
Nasdaq Adv 1390 Dec 3035 Vol 4.2 bln

Industry Watch
Strong: Consumer Discretionary, Communication Services
Weak: Energy, Financials, Health Care, Real Estate

Moving the Market

-- Market preoccupied with Russia-Ukraine situation and rising rates

-- Door is open for diplomacy

-- St. Louis Fed President Bullard (FOMC voter) reiterates hawkish stance

Preoccupied with Russia-Ukraine and rising rates
14-Feb-22 16:15 ET
Dow -171.89 at 34566.17, Nasdaq -0.24 at 13790.91, S&P -16.97 at 4401.67

[BRIEFING.COM] The S&P 500 declined 0.4% on Monday, as the market remained preoccupied with the Russia-Ukraine situation and a continued rise in interest rates. The Dow Jones Industrial Average and Russell 2000 both declined 0.5%, while the Nasdaq Composite was unchanged.

Nine of the 11 S&P 500 sectors closed lower, paced by losses in the energy (-2.2%), financials (-1.1%), health care (-1.1%), and real estate (-1.0%) sectors. The consumer discretionary (+0.6%) and communication services (+0.3%) sectors closed higher.

Early on, the market felt relieved after Russia's Minister of Foreign Affairs opened the door for diplomacy with a statement that there's a chance for an agreement on security issues. The qualification that Russia doesn't have indefinite time to talk, though, served as a reminder that the situation is still serious.

The S&P 500 was trading flat midday until media reports misinterpreted a statement from Ukraine President Zelensky, who said Russia will attack on Feb. 16 and that he would declare that day a national holiday. The sarcastic tone contrasted with a precautionary move from the U.S. to relocate its Kyiv Embassy to western Ukraine.

Following these conflicting headlines, oil prices topped $95 per barrel ($95.48, +2.39, +2.6%) and the S&P 500 was down as much as 1.2%. At the same time, Treasury yields continued to push higher on expectations for a hawkish Fed amid persistent inflation pressures.

The 2-yr yield rose seven basis points to 1.59% as the CME FedWatch Tool continued to price in more than six rate hikes this year. The 10-yr yield rose four basis points to 2.00%. The U.S. Dollar Index increased 0.3% to 96.35.

St. Louis Fed President Bullard (FOMC voter) reiterated his hawkish stance in a CNBC interview, arguing that the Fed should front load tightening and that the central bank's credibility is on the line with respect to fighting inflation.

Interestingly, growth stocks outperformed on a relative basis despite the higher rates, and energy stocks performed terribly despite the higher oil prices. Rebalancing activity might have driven the discrepancies in addition to concerns that elevated oil prices could eventually hurt demand.

Separately, The Wall Street Journal reported that Cisco (CSCO 53.18, -0.72, -1.3%) made a recent offer to acquire Splunk (SPLK 124.97, +10.46, +9.1%) for $20 billion. Splunk turned down the offer, but SPLK shares still rose 9% on the takeover interest.

Investors did not receive any economic data on Monday. Looking ahead, investors will receive the Producer Price Index for January, the Empire State Manufacturing Survey for February, and Net Long-Term TIC Flows on Tuesday.

Dow Jones Industrial Average -4.9% YTD
S&P 500 -7.7% YTD
Russell 2000 -10.0% YTD
Nasdaq Composite -11.9% YTD

Crude futures top $95 per barrel
14-Feb-22 15:30 ET
Dow -233.51 at 34504.55, Nasdaq -1.61 at 13789.54, S&P -23.29 at 4395.35

[BRIEFING.COM] The S&P 500 is down 0.5%, and the Russell 2000 is down 0.3%.

One last look at the sectors shows energy (-2.8%) still leading the decline despite higher oil prices, while the consumer discretionary (+0.6%) and communication services (+0.2%) sectors continue to trade higher.

WTI crude futures settled higher by 2.6%, or $2.39, to $95.48/bbl amid the geopolitical uncertainty.

[ReturntoSender]

Market Snapshot

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

Dow 34934.27 -54.57 (-0.16%)
Nasdaq 14124.09 -15.66 (-0.11%)
SP 500 4475.01 +3.94 (0.09%)
10-yr Note +1/32 2.033
NYSE Adv 2061 Dec 1173 Vol 890.0 mln
Nasdaq Adv 2322 Dec 2066 Vol 4.1 bln

Industry Watch
Strong: Energy, Industrials
Weak: Information Technology, Communication Services

Moving the Market

-- S&P 500 turns positive following FOMC Minutes from January meeting

-- Reports indicate that there's no evidence that Russia has partially withdrawn troops and is instead building up forces near Ukraine

-- Growth stocks underperform

Stocks recoup losses following FOMC Minutes
16-Feb-22 16:15 ET
Dow -54.57 at 34934.27, Nasdaq -15.66 at 14124.09, S&P +3.94 at 4475.01

[BRIEFING.COM] The S&P 500 increased 0.1% on Wednesday, as the market reacted positively to the FOMC Minutes from the January meeting. Earlier in the day, the benchmark index was down as much as 0.9% amid negative-sounding Russia-Ukraine headlines.

The Nasdaq Composite lost 0.1% after being down 1.5% intraday. The Dow Jones Industrial Average lost 0.2% after being down 1.0% intraday. The Russell 2000 gained 0.1% after being down 0.8% intraday.

It was a tale of two sessions, as investors first held back risk appetite after Ukraine President Zelensky said he hadn't seen a withdrawal of Russian troops and NATO officials claimed that Russia was building up forces near Ukraine. Stocks fell to session lows after The Wall Street Journal reported that U.S. and Russian aircraft flew dangerously close to each other in three separate incidents over the weekend.

Ten of the 11 S&P 500 sectors were trading lower with the exception being energy (+0.8%) amid higher oil prices ($93.83, +1.76, +1.9%). Growth stocks were struggling amid disappointing earnings reactions in Shopify (SHOP 746.85, -142.65, -16.0%) and Roblox (RBLX 53.87, -19.43, -26.5%), as well as plans from Google to build more private advertising solutions.

Then, the January FOMC Minutes were released at 2:00 p.m. ET, and the dynamics of the market were flipped despite there being nothing terribly surprising in the minutes. Participants agreed the Fed should be more assertive in removing policy accommodation since, compared to the last normalization period, there is a much stronger outlook for economic growth, substantially higher inflation, and a notably tighter labor market.

Nine of the 11 S&P 500 sectors ended the session in positive territory, with materials (+0.7%) finishing in second place behind energy. The information technology (-0.2%) and communication services (-0.2%) sectors closed slightly lower.

Notwithstanding the dated nature of the minutes, investors might have liked they weren't as hawkish as feared. More insightful, however, was the reaction in the Treasury market, which suggested that the Fed's hawkish policy shift has been priced in. The 2-yr yield declined five basis points to 1.52%.

The 10-yr yield, meanwhile, was unchanged at 2.05% as the geopolitical factor offset hot import/export prices for January and better-than-expected retail sales data for January. The U.S. Dollar Index declined 0.2% to 95.78. Oil prices turned negative post-settlement.

Reviewing Wednesday's economic data, which featured Retail Sales for January:

Total retail sales for January increased 3.8% month-over-month (Briefing.com consensus 1.9%) following a downwardly revised 2.5% decline (from -1.9%) in December. Excluding autos, retail sales were up 3.3% month-over-month following a downwardly revised 2.8% decline (from -2.3%) in December.
Retail sales are not adjusted for price changes, so higher prices likely played a part in the strong increase; nonetheless, the key takeaway from the report is that it speaks to a consumer that is still willing and able to spend in spite of the inflation.
Total industrial production increased 1.4% month-over-month in January (Briefing.com consensus 0.4%) following an unrevised 0.1% decline in December. The capacity utilization rate jumped to 77.6% (Briefing.com consensus 76.8%) from an upwardly revised 76.6% (from 76.5%) in December.
The key takeaway from the report is that the increase was driven predominately by the output of utilities, which saw its largest increase (9.9%) in the history of the index, which dates back to 1972.
Import prices rose 2.0% in January after decreasing 0.4% in December. Excluding oil, import prices rose 1.4% after increasing 0.5% in December. Export prices rose 2.9% after decreasing 1.6% in December. Excluding agriculture, export prices rose 2.9% after decreasing 1.9% in December.
The NAHB Housing Market Index for February decreased to 82 (Briefing.com consensus 83) from 83 in January.
Business inventories increased 2.1% m/m in December (Briefing.com consensus 2.1%) following a revised 1.5% increase (from 1.3%) in November.
The weekly MBA Mortgage Applications Index fell 5.4% following an 8.1% decline in the prior week.

Looking ahead, investors will receive Housing Starts and Building Permits for January, weekly Initial and Continuing Claims, and the Philadelphia Fed Index for February on Thursday.

Dow Jones Industrial Average -3.9% YTD
S&P 500 -6.1% YTD
Russell 2000 -7.4% YTD
Nasdaq Composite -9.7% YTD

Crude futures settle higher
16-Feb-22 15:30 ET
Dow -16.99 at 34971.85, Nasdaq +15.42 at 14155.17, S&P +10.67 at 4481.74

[BRIEFING.COM] The S&P 500 is trading near session highs with a 0.2% gain after being down 0.9% earlier today.

One last look at the sectors shows ten sectors now trading in positive territory after ten traded lower today. The materials sector (+0.7%) has claimed the top spot, while the communication services sector (-0.1%) is down slightly.

WTI crude futures settled higher by 1.9%, or $1.76, to $93.83/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 34312.03 -622.24 (-1.78%)
Nasdaq 13716.71 -407.38 (-2.88%)
SP 500 4380.26 -94.75 (-2.12%)
10-yr Note +28/32 1.974
NYSE Adv 849 Dec 2406 Vol 923.5 mln
Nasdaq Adv 1021 Dec 3262 Vol 4.2 bln

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

Moving the Market

-- Stocks close sharply lower in orderly retreat

-- Geopolitical angst surrounding Russia-Ukraine situation

-- Treasury yields dropped

-- NVIDIA (NVDA) leads mega-caps lower following its earnings report

Geopolitical angst sends stocks lower
17-Feb-22 16:15 ET
Dow -622.24 at 34312.03, Nasdaq -407.38 at 13716.71, S&P -94.75 at 4380.26

[BRIEFING.COM] The S&P 500 dropped 2.1% on Thursday, as risk sentiment remained pressured by negative-sounding Russia-Ukraine headlines. The Nasdaq Composite (-2.9%) and Russell 2000 (-2.5%) posted steeper declines while the Dow Jones Industrial Average (-1.8%) fared slightly better than the S&P 500.

Briefly, President Biden warned that Russia could invade Ukraine in a matter of days as reports indicated that Russia was building up troops closer to Ukraine. The Wall Street Journal also reported that Russia was possibly fabricating an excuse to invade with an accusation that Ukraine was committing crimes against residents of the eastern Donbas region.

Without any signs of de-escalation, there were little efforts to buy the dip, which contributed to an orderly retreat throughout the day. Nine of the 11 S&P 500 sectors closed in negative territory, led lower by the information technology (-3.1%), communication services (-3.0%), and consumer discretionary (-2.6%) sectors.

The consumer staples (+0.9%) and utilities (+0.1%) sectors closed higher as part of the defensive shift in the market.

More specifically, Treasuries saw increased demand, pushing the 10-yr yield down eight basis points to 1.97% and the 2-yr yield down five basis points to 1.47%. Gold futures rose 1.7% to $1902.10/ozt. The CBOE Volatility Index jumped 15.7% to 28.11. The U.S. Dollar Index increased 0.1% to 95.87.

Dow components Walmart (WMT 138.88, +5.35, +4.0%) and Cisco (CSCO 55.77, +1.52, +2.8%) performed well following their earnings reports, but not growth stocks like NVIDIA (NVDA 245.19, -19.92, -7.5%), Fastly (FSLY 19.20, -9.73, -33.6%), and Matterport (MTTR 6.54, -1.38, -17.4%).

The mega-caps received no love today. The Vanguard Mega Cap Growth ETF (MGK 226.18, -6.89) fell 3.0%, versus a 1.8% decline in the Invesco S&P 500 Equal Weight ETF (RSP 154.13, -2.82). Based on the latter indication, neither did the broad market.

Oil prices ($91.76/bbl, -$2.07, -2.2%) normally would have reacted positively to the geopolitical angst, but today they declined 2% amid reports suggesting that a nuclear agreement with Iran was within reach. An agreement could free up Iranian oil exports.

Also in the mix was economic data that didn't work in the market's favor. Weekly initial claims increased by 23,000 to 248,000 (Briefing.com consensus 220,000); the Philadelphia Fed Index for February decreased to 16.0 (Briefing.com consensus 20.4) from 23.2 in January; and single-family housing starts declined in every region in January, except the West (+15.7%).

Reviewing Thursday's economic data:

January housing starts declined 4.1% month-over-month to a seasonally adjusted annual rate of 1.638 million units (Briefing.com consensus 1.705 million) and building permits increased 0.7% month-over-month to 1.899 million (Briefing.com consensus 1.750 million).
The key takeaway from the report is the understanding that single-family starts declined in every region in January, except the West (+15.7%), which is likely a function of labor shortages and supply constraints that will keep new supply limited and home prices elevated.
Initial jobless claims for the week ending February 12 increased by 23,000 to 248,000 (Briefing.com consensus 220,000) and continuing claims for the week ending February 5 declined by 26,000 to 1.593 million.
The key takeaway from the report is that it covers the week in which the survey for the February employment report was conducted, and the pickup in initial claims could temper some of the growth forecasts for February nonfarm payrolls.
The Philadelphia Fed Index for February decreased to 16.0 (Briefing.com consensus 20.4) from 23.2 in January.

Looking ahead, investors will receive Existing Home Sales for January and the Conference Board's Leading Economic Index for January on Friday.

Dow Jones Industrial Average -5.6% YTD
S&P 500 -8.1% YTD
Russell 2000 -9.7% YTD
Nasdaq Composite -12.3% YTD

Crude futures settle sharply lower
17-Feb-22 15:30 ET
Dow -589.03 at 34345.24, Nasdaq -374.06 at 13750.03, S&P -86.89 at 4388.12

[BRIEFING.COM] The S&P 500 is now down 2.0% while the Russell 2000 underperforms with a 2.5% decline.

One last look at the sectors shows information technology (-2.9%), communication services (-2.7%), financials (-2.5%), and consumer discretionary (-2.4%) down more than 2.0%, while the consumer staples sector (+0.9%) is the lone sector trading higher.

WTI crude futures settled lower by 2.2%, or $2.07, to $91.76/bbl.

[ReturntoSender]

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.

[ReturntoSender]

Market Snapshot

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

Dow 33596.61 -482.57 (-1.42%)
Nasdaq 13381.51 -166.55 (-1.23%)
SP 500 4304.76 -44.11 (-1.01%)
10-yr Note -2/32 1.949
NYSE Adv 706 Dec 2530 Vol 1.1 bln
Nasdaq Adv 1164 Dec 3140 Vol 4.8 bln

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

Moving the Market

-- Russia-Ukraine tensions rise after Russia sends troops to two regions in eastern Ukraine

-- Lingering concerns about Fed policy

-- Home Depot (HD) falls 9% amid conservative FY22 sales guidance

Weak session captured by Russia-Ukraine headlines
22-Feb-22 16:20 ET
Dow -482.57 at 33596.61, Nasdaq -166.55 at 13381.51, S&P -44.11 at 4304.76

[BRIEFING.COM] The S&P 500 fell 1.0% on Tuesday, although it was down as much as 1.9% amid rising Russia-Ukraine tensions, pestering concerns about monetary policy, and weakening price momentum.

The Nasdaq Composite (-1.2%), Dow Jones Industrial Average (-1.4%), and Russell 2000 (-1.5%) also closed off their session lows, but still lost more than 1.0%.

Today's trading narrative was catalyzed by Russia's decision to recognize the independence of Ukraine's Donetsk and Luhansk regions and send "peacekeeping" troops to the oblasts. The U.S., UK, and EU announced initial sanctions, and Germany halted the approval process for the Nord Stream 2 pipeline from Russia.

All that transpired before the open, yet the futures market recovered losses and the S&P 500 briefly traded in positive territory after the open. Buyers lacked resolve, though, giving way to a broad-based decline and losses in all 11 S&P 500 sectors.

The consumer discretionary sector (-3.0%) was easily the weakest performer, largely due a 9% decline in Home Depot (HD 316.17, -30.70, -8.9%) following its conservative FY22 sales guidance. The utilities sector outperformed on a relative basis with a 0.1% decline.

Amid the geopolitical uncertainty, and slower growth prospects highlighted by Home Depot's guidance, investors remained concerned about the impacts of the Fed's tightening course.

The 2-yr yield rose eight basis points to 1.55% following rate-hike commentary from Fed Governor Bowman (FOMC voter) on Monday. Strikingly, the 10-yr yield increased two basis points to 1.93% despite the geopolitical tensions, supporting the case that the market was influenced by more than the Russia-Ukraine headlines.

Granted, the market did come off session lows in the afternoon after President Biden announced new sanctions on Russia, including sanctions on sovereign debt, two large financial institutions, and Russian elites and family members. Mr. Biden threatened additional sanctions if Russia escalates the situation.

The S&P 500 jumped nearly 70 points off its low in the course of an hour, but sellers came back in to spoil the rebound bid. The S&P 500 closed 10.3% off its record closing high, as well at its lowest closing level since Oct 4.

WTI crude futures settled above $92 per barrel ($92.27, +1.06, +1.2%) after flirting with $95 per barrel overnight. The U.S. Dollar Index was little changed at 96.07. The CBOE Volatility Index increased just 3.8% to 28.81

Reviewing Tuesday's economic data:

The Conference Board's Consumer Confidence Index dropped to 110.5 in February (Briefing.com consensus 109.0) from a downwardly revised 111.1 (from 113.8) in January. In the same period a year ago, the index stood at 95.2.
The key takeaway from the report is the recognition that expectations for short-term growth prospects weakened, pointing to a possible moderation in spending activity in coming months, particularly if inflation pressures remain persistent and real disposable personal income is negative.
The S&P Case-Shiller Home Price Index for December increased 18.6% year-over-year (Briefing.com consensus 18.3%) following an 18.3% increase in November.
The FHFA Housing Price Index for December increased 1.2% month-over-month following a revised 1.2% increase (from 1.1%) in November.
The preliminary IHS Markit Manufacturing PMI for February increased to 57.5 from 55.5 in January while the preliminary Services PMI increased to 56.7 from 51.2 in January.

Looking ahead, investors will receive the weekly MBA Mortgage Applications Index on Wednesday.

Dow Jones Industrial Average -7.5% YTD
S&P 500 -9.7% YTD
Russell 2000 -11.8% YTD
Nasdaq Composite -14.5% YTD

Crude futures settle higher but off highs
22-Feb-22 15:30 ET
Dow -347.12 at 33732.06, Nasdaq -63.71 at 13484.35, S&P -23.80 at 4325.07

[BRIEFING.COM] The S&P 500 is down 0.6%, and the Russell 2000 is down 0.2%.

One last look at the sectors shows consumer discretionary (-2.6%), energy (-1.4%), and materials (-1.0%) sectors underperforming the broader market, while the utilities (+0.2%), real estate (+0.2%), health care (+0.2%), and financials (+0.1%) sectors trade higher.

WTI crude futures settled higher by 1.2%, or $1.06, to $92.27/bbl after flirting with $95/bbl overnight.

[ReturntoSender]

Market Snapshot

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

Dow 34058.75 +834.92 (2.51%)
Nasdaq 13694.62 +221.04 (1.64%)
SP 500 4384.65 +95.95 (2.24%)
10-yr Note 0/32 1.970
NYSE Adv 2615 Dec 570 Vol 1.1 bln
Nasdaq Adv 3013 Dec 1229 Vol 4.6 bln

Industry Watch
Strong: Materials, Financials, Utilities, Consumer Staples, Health Care
Weak: Information Technology

Moving the Market

-- Stocks extend rebound rally and close at session highs

-- Russia says it's willing to seek diplomatic solutions with Ukraine as troops enter Kiev

-- PCE inflation for January remained hot

Stocks extend rally on improved geopolitical perspective
25-Feb-22 16:15 ET
Dow +834.92 at 34058.75, Nasdaq +221.04 at 13694.62, S&P +95.95 at 4384.65

[BRIEFING.COM] The S&P 500 rose 2.2% on Friday in a continuation of yesterday's rebound rally, as the market hoped that the deadly Russia-Ukraine situation would soon be over with minimal economic impact to the U.S.

The Dow Jones Industrial Average (+2.5%) and Russell 2000 (+2.3%) also gained more than 2.0% while the Nasdaq Composite (+1.6%) was the relative underperformer with a 1.6% gain after outperforming yesterday.

Prior to the open, futures turned positive after reports indicated that Russia was ready to seek diplomatic solutions with Ukraine in Minsk, Belarus. Presumably, that would happen after Russia gets what it wants since Russian troops were reportedly closing in on Ukraine's capital.

Since no sanctions were placed on Russia's oil and gas exports, there was optimism that the situation wouldn't exacerbate inflation pressures as initially feared. WTI crude ($91.59/bbl, -1.21, -1.3%), natural gas ($4.51/MMBtu, -0.16, -3.3%), and wheat ($859.60/bu, -$75.00, -8.0%) futures each settled lower.

The advance in equities was steady and broad-based with all 11 S&P 500 sectors closing higher between 1.4% (information technology) and 3.6% (materials). Interestingly, the defensive-oriented consumer staples (+3.1%), utilities (+3.1%), and health care (+3.0%) sectors were among the leaders, as investors respected the possibility for a negative-sounding update over the weekend.

There was a slight hiccup on news that the U.S. will join the EU with its own sanctions on President Putin, but stocks still closed at session highs.

Despite the improved geopolitical perspective, investors (and the Fed) were reminded that inflation is still a sticky situation. The Fed's preferred inflation gauge -- the PCE Price Index -- continued to run hot in January.

Specifically, the PCE Price Index rose 0.6% (Briefing.com consensus 0.5%), taking the year-over-year growth rate to 6.1% from 5.8%. The core PCE Price Index, which excludes food and energy, rose 0.5% (Briefing.com consensus 0.5%), taking the year-over-year rate to 5.2% from 4.9%.

The 2-yr Treasury note yield increased five basis points to 1.57%, although that was below the level it was trading prior to the PCE inflation data. The 10-yr yield increased two basis points to 1.99%. The U.S. Dollar Index fell 0.6% to 96.54. The CBOE Volatility Index fell 9.0% to 27.59.

Reviewing Friday's economic data:

Personal income was unchanged month-over-month in January (Briefing.com consensus -0.3%), but real disposable personal income was down 0.5%. Personal spending was up a robust 2.1% (Briefing.com consensus 1.5%), but clearly, consumers were spending out of savings as the personal savings rate, as a percentage of disposable personal income, fell to 6.4% from 8.2%. The PCE Price Index was up 0.6% (Briefing.com consensus 0.5%), taking the year-over-year rate to 6.1% from 5.8%. The core PCE Price Index, which excludes food and energy, was up 0.5% for the fourth straight month (Briefing.com consensus 0.5%), taking the year-over-year growth rate to 5.2% from 4.9%.
The key takeaway from the report is that the Fed still has an acute inflation problem on its hands with, or without, the Ukraine situation.
Durable Goods Orders jumped 1.6% month-over-month January (Briefing.com consensus 0.6%) following a 1.2% increase in December. Excluding transportation, durable goods orders were up 0.7% (Briefing.com consensus 0.3%) on the heels of a 0.9% increase in December.
The key takeaway from the report was the recognition that business spending picked up in January, evidenced by the 0.9% increase in nondefense capital goods orders excluding aircraft that followed a 0.4% increase in December.
The final reading for the University of Michigan Consumer Sentiment Index for February was revised up to 62.8 (Briefing.com consensus 61.6) from the preliminary reading of 61.7. The final reading for January was 67.2.
The key takeaway from the report is that the decline in sentiment in February was driven entirely by households with incomes of $100,000 or more, demonstrating the growing concerns about inflation, rising interest rates, and loss of purchasing power that could eventually manifest itself in weaker levels of consumer spending in coming months.
Pending home sales fell 5.7% m/m in January following a revised 2.3% decline (from -3.8%) in December.

Looking ahead, investors will receive the Chicago PMI for February and the Advance readings for International Trade in Goods, Retail Inventories, and Wholesale Inventories for January on Monday.

Dow Jones Industrial Average -6.3% YTD
S&P 500 -8.0% YTD
Russell 2000 -9.1% YTD
Nasdaq Composite -12.5% YTD

Crude futures settle lower
25-Feb-22 15:30 ET
Dow +773.85 at 33997.68, Nasdaq +175.49 at 13649.07, S&P +84.73 at 4373.43

[BRIEFING.COM] The S&P 500 is up 2.0% to trade back near session highs. The Russell 2000 is up 1.6%.

One last look at the S&P 500 sectors shows gains across the board ranging between 1.2% (information technology) and 3.5% (materials). The Dow Jones Transportation Average is up 2.5%.

WTI crude futures settled lower by 1.3%, or $1.21, to $91.59/bbl. Recall, crude futures briefly topped $100.00/bbl yesterday.

[ReturntoSender]

Market Snapshot

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

Dow 33892.60 -166.15 (-0.49%)
Nasdaq 13751.39 +56.77 (0.41%)
SP 500 4373.94 -10.71 (-0.24%)
10-yr Note +12/32 1.834
NYSE Adv 1501 Dec 1642 Vol 1.7 bln
Nasdaq Adv 2130 Dec 2103 Vol 5.7 bln

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

Moving the Market

-- Volatile action driven by Russia-Ukraine headlines and month-end rebalancing activity

-- Certain Russian banks blocked from SWIFT financial transactions system; Putin places nuclear forces on high alert

-- Russia vows harsh response for sanctions it faces

Russia-Ukraine headlines drive mixed and volatile session
28-Feb-22 16:15 ET
Dow -166.15 at 33892.60, Nasdaq +56.77 at 13751.39, S&P -10.71 at 4373.94

[BRIEFING.COM] The S&P 500 declined 0.3% on Monday in a volatile session driven by Russia-Ukraine headlines. The Dow Jones Industrial Average fell 0.5%, while the Nasdaq Composite (+0.4%) and Russell 2000 (+0.4%) both gained 0.4%, thanks to a late-session push.

The financials (-1.5%), real estate (-1.8%), consumer staples (-1.3%), and materials (-1.2%) sectors underperformed with losses over 1.0%. Conversely, the energy sector (+2.6%) jumped over 2.0% amid higher oil prices ($95.53, +3.94, +4.3%), followed by industrials (+0.7%), consumer discretionary (+0.6%), and utilities (+0.4%) with more modest gains.

The market got off to a weak start after the U.S. and Western allies expanded sanctions against Russia over the weekend. They blocked select Russian banks from the SWIFT financial transactions system and prevented Russia's central bank from accessing its foreign currency reserves.

In turn, the ruble plunged against the dollar, Russia's central bank hiked its key rate to 20.0% from 9.5% to protect the ruble, and President Putin placed Russia's nuclear forces on high alert. Russia also closed its stock market for the day.

Despite the negative-sounding developments, the S&P 500, Nasdaq, and Russell 2000 resiliently made their way into positive territory in the morning. Investors, however, faded the turnaround, and stocks pushed to session lows on news that Russia vowed a harsh response to the sanctions.

Stocks bounced off session lows in the last 30 minutes of action, exuding month-end rebalancing activity since there wasn't a specific news catalyst to account for the positive price action. The S&P 500 ended the month with a 3.1% decline.

The Treasury market was less volatile in the sense that yields stayed sharply low the entire session. Demand was driven by safe-haven interest, short-covering activity, growth concerns, and a belief that the Fed could sound less hawkish in its next policy meeting. The fed funds futures market is heavily favoring a quarter-point hike in March instead of a half-point hike.

The 2-yr yield dropped 16 basis points to 1.43%, and the 10-yr yield dropped 15 basis points to 1.84%. The U.S. Dollar Index increased 0.1% to 96.75. The CBOE Volatility Index (VIX) increased 9.3% to 30.15 amid increased hedging interest, although the VIX did close off session highs (33.51).

Reviewing Monday's economic data:

The Chicago PMI for February decreased to 56.3 (Briefing.com consensus 62.0) from 65.2 in January.
The Advance report for International Trade in Goods for January showed a deficit of $107.6 billion, versus a revised $100.5 billion (from $101.0 billion) in December. The Advance report for Retail Inventories for January rose 1.9%, while the Advance report for Wholesale Inventories for January rose 0.8%.

Looking ahead, investors will receive the ISM Manufacturing Index for February, Construction Spending for January, and the final IHS Markit Manufacturing PMI for February on Tuesday.

Dow Jones Industrial Average -6.7% YTD
S&P 500 -8.2% YTD
Russell 2000 -8.8% YTD
Nasdaq Composite -12.1% YTD

Crude futures settle higher by 4%
28-Feb-22 15:30 ET
Dow -372.58 at 33686.17, Nasdaq -42.95 at 13651.67, S&P -40.40 at 4344.25

[BRIEFING.COM] The S&P 500 is down 0.9% to trade off session lows (-1.6%).

One last look at the sectors shows real estate (-2.2%) and financials (-2.0%) down the most with 2% declines, while the energy (+1.9%), industrials (+0.1%), and utilities (+0.1%) sectors outperform in positive territory.

WTI crude futures settled higher by 4.3%, or $3.94, to $95.53/bbl amid the rise in geopolitical tensions.

[ReturntoSender]

Market Snapshot

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

Dow 33614.80 -179.86 (-0.53%)
Nasdaq 13313.44 -224.50 (-1.66%)
SP 500 4328.87 -34.62 (-0.79%)
10-yr Note +13/32 1.701
NYSE Adv 991 Dec 2174 Vol 1.2 bln
Nasdaq Adv 1204 Dec 2945 Vol 5.2 bln

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

Moving the Market

-- Down day for major indices as Russia seizes nuclear power plant in Ukraine and oil prices jump 7%

-- February employment report features strong jobs growth but flat earnings growth

-- Treasury yield curve flattens

Major indices close lower amid increased geopolitical risks
04-Mar-22 16:20 ET
Dow -179.86 at 33614.80, Nasdaq -224.50 at 13313.44, S&P -34.62 at 4328.87

[BRIEFING.COM] The S&P 500 fell 0.8% on Friday, as risk sentiment was undercut by Russia's takeover of a nuclear power plant in Ukraine and by a 7% increase in oil prices ($115.27, +7.46, +6.9%).

The Nasdaq Composite (-1.7%) and Russell 2000 (-1.6%) each declined by more than 1.5% while the Dow Jones Industrial Average (-0.5%) outperformed on a relative basis with a 0.5% decline.

Startling images of a fire at the nuclear plant, which is the largest in Europe and supplies a quarter of Ukraine's power, catalyzed the negative bias overnight. Fortunately, there wasn't a radiation leakage at the plant, and authorities reported that radiation levels were normal.

Still, the news stoked concerns of nuclear conflict and, in turn, contributed to early de-risking efforts. The market pared losses in the afternoon, though, leaving six of the 11 S&P 500 sectors in negative territory, including the heavily-weighted financials (-2.0%) and information technology (-1.8%) sectors at the bottom of the pack.

The energy sector rose 2.9%, thanks to elevated oil prices, which gained momentum amid news that the White House was considering a ban on Russian oil imports. The utilities (+2.2%), real estate (+0.8%), health care (+0.5%), and consumer staples (+0.1%) sectors also closed higher amid some defensive positioning.

The geopolitical news overshadowed stronger-than-expected jobs growth displayed in the February employment report, which Chicago Fed President Evans (non-voter in FOMC) said will not change anything for the Fed's next meeting in a CNBC interview. Nonfarm payrolls increased by 678,000 (Briefing.com consensus 400,000).

Arguably, the bigger story in the employment report was the flat month-over-month growth in average hourly earnings (Briefing.com consensus +0.5%). Stagnant wage growth in an inflationary environment, marred by $115-per-barrel oil prices, painted a gloomy picture for consumer spending.

The Treasury market remained a signpost for growth concerns and a place for investors to seek safety. The yield curve flattened with the 2-yr yield declining by five basis points to 1.49% and the 10-yr yield declining by 12 basis points to 1.72%. The U.S. Dollar Index rose 0.7% to 98.50.

Separately, Broadcom (AVGO 595.99, +17.39, +3.0%) was an individual standout, rising 3.0% on pleasing earnings results and guidance, while Costco (COST 525.50, -7.55, -1.4%) fell alongside the broader market despite reporting better-than-expected earnings results.

Reviewing the employment report in more depth:

Hiring activity was strong in February, but wage increases were not. Nonfarm payrolls jumped by 678,000, yet average hourly earnings were unchanged. That left the year-over-year rate at 5.1%, down from 5.5% in January.
February nonfarm payrolls increased by 678,000 (Briefing.com consensus 400,000). The 3-month average for total nonfarm payrolls rose to 582,000 from 572,000. January nonfarm payrolls revised to 481,000 from 467,000. December nonfarm payrolls revised to 588,000 from 510,000.
February private sector payrolls increased by 654,000 (Briefing.com consensus 390,000). January private sector payrolls revised to 448,000 from 444,000. December private sector payrolls revised to 561,000 from 503,000.
February unemployment rate was 3.8% (Briefing.com consensus 3.9%), versus 4.0% in January. Persons unemployed for 27 weeks or more accounted for 26.7% of the unemployed versus 25.9% in January. The U6 unemployment rate, which accounts for unemployed and underemployed workers, was 7.2%, versus 7.1% in January.
February average hourly earnings were unchanged (Briefing.com consensus 0.5%) versus a downwardly revised 0.6% increase (from 0.7%) in January. Over the last 12 months, average hourly earnings have risen 5.1%, versus 5.5% for the 12 months ending in January.
The average workweek in February was 34.7 hours (Briefing.com consensus 34.6), versus an upwardly revised 34.6 hours (from 34.5) in January. Manufacturing workweek increased 0.4 hours to 40.7 hours. Factory overtime increased 0.2 hours to 3.6 hours.
The labor force participation rate increased to 62.3% from 62.2% in January.
The employment-population ratio rose to 59.9% from 59.7% in January.
Some will paint the average hourly earnings figure as good news insomuch as it will temper some of the worries about inflation pressures broadening out due to rising wages and the Fed needing to take a more aggressive step toward removing its policy accommodation. However, it isn't truly good economic news.
The key takeaway from the report is that real average hourly earnings are negative and that is likely going to adversely impact consumer spending activity in the face of escalating inflation pressures, which will be acute at the gas pump and in the grocery aisles. This report, then, is good for now, yet it may not translate later into as good of things for the economy and corporate earnings.

Looking ahead, investors will receive the Consumer Credit report for January on Monday.

Dow Jones Industrial Average -7.5% YTD
S&P 500 -9.2% YTD
Russell 2000 -10.9% YTD
Nasdaq Composite -14.9% YTD

Crude futures settle above $115.00 per barrel
04-Mar-22 15:30 ET
Dow -312.54 at 33482.12, Nasdaq -257.51 at 13280.43, S&P -48.93 at 4314.56

[BRIEFING.COM] The S&P 500 is down 1.1% as investors show a reluctance to buy the dip in front of the weekend, which could bring on bad geopolitical news.

One last look at the sectors shows financials (-2.6%) and information technology (-2.1% down more than 2.0%, while the energy (+2.9%) and utilities (+1.8%) sectors sport decent gains. Six sectors trade lower, while five sectors trade higher.

WTI crude futures settled higher by $7.46 (+6.9%) to $115.27/barrel.

[ReturntoSender]

Market Snapshot

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

Dow 32632.64 -184.74 (-0.56%)
Nasdaq 12795.55 -35.41 (-0.28%)
SP 500 4170.70 -30.39 (-0.72%)
10-yr Note -7/32 1.842
NYSE Adv 1595 Dec 1572 Vol 1.5 bln
Nasdaq Adv 2057 Dec 2113 Vol 6.6 bln

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

Moving the Market

-- Volatile session for stocks

-- U.S. bans energy imports from Russia

-- Reports indicate Ukraine no longer insists on NATO membership and that Putin will ban certain raw material exports until Dec. 31

-- Treasury yields rise amid inflation, rate-hike expectations

Large-cap indices close lower in volatile session
08-Mar-22 16:15 ET
Dow -184.74 at 32632.64, Nasdaq -35.41 at 12795.55, S&P -30.39 at 4170.70

[BRIEFING.COM] The S&P 500 lost 0.7% on Tuesday in a volatile session driven by geopolitical headlines. The Nasdaq Composite (-0.3%) and Dow Jones Industrial Average (-0.6%) joined the benchmark index in negative territory, while the Russell 2000 (+0.6%) closed higher.

Nine of the 11 S&P 500 sectors closed lower, including the defensive-oriented consume staples (-2.6%), health care (-2.1%), and utilities (-1.6%) sectors at the bottom of the standings. The energy (+1.4%) and consumer discretionary (+0.1%) sectors closed higher.

The stock market struggled out of the gate, as oil prices flirted with $130 per barrel in anticipation for the U.S. to ban energy imports from Russia. On a related note, the UK and EU said they would phase out their Russian energy imports this year, but the UK said it was still exploring options for a ban on gas imports.

Soon after President Biden announced the ban, stocks carved out a bottom and then rallied to session highs amid a report indicating that Ukraine was no longer insisting on NATO membership.

The S&P 500 went from a 0.7% intraday decline to a 1.8% intraday gain. Crude futures pared gains and settled at $123.76/bbl (+$4.49, +3.8%).

The rally off the lows was likely driven by short-covering activity from investors caught off guard by the market's sell-the-rumor, buy-the-fact response. Unfortunately, the gains didn't last long because the market turned negative after reports indicated that President Putin was going to ban the export of products and raw materials from the Russian Federation until Dec. 31.

The volatile price action frustrated investors, but at least the Treasury market communicated a more consistent message through its steady rise in yields. Namely, the Russia-Ukraine situation is expected to exacerbate inflation pressures via supply chain disruptions and, in turn, force the Fed to react with tighter monetary policy.

The 2-yr yield rose nine basis points to 1.63%, and the 10-yr yield rose 12 basis points to 1.87%. The U.S. Dollar Index decreased 0.2% to 99.06.

For what it's worth, nickel prices soared at the London Metal Exchange (LME) on Tuesday, more than doubling at one point to exceed $100,000 per metric ton. While that gain was pared some, the LME suspended trading for the rest of the day.

Reviewing Tuesday's economic data:

The trade deficit widened in January to $89.7 billion (Briefing.com consensus -$87.5 billion) from a downwardly revised $82.0 billion (from -$80.7 billion). Exports were $3.9 billion less than December exports and imports were $3.8 billion more than December imports.
The key takeaway from the report is that it marked the third straight month of a widening deficit, underscoring weakening trade activity related to the Omicron variant and ongoing supply chain disruptions. In the same period a year ago, the trade deficit was $65.1 billion.
Wholesale inventories increased 0.8% in January, as expected, following a revised 2.6% increase (from 2.2%) in December.
The NFIB Small Business Optimism Index for February decreased to 95.7 from 97.1 in January.

Looking ahead, investors will receive the JOLTS - Job Openings report for January and the weekly MBA Mortgage Applications Index on Wednesday.

Dow Jones Industrial Average -10.2% YTD
S&P 500 -12.5% YTD
Russell 2000 -12.6% YTD
Nasdaq Composite -18.2% YTD

Crude futures settle near $124 per barrel
08-Mar-22 15:30 ET
Dow +67.83 at 32885.21, Nasdaq +75.78 at 12906.74, S&P +3.37 at 4204.46

[BRIEFING.COM] The S&P 500 is up 0.1%, but the Russell 2000 continues to shine with a 1.9% gain.

One last look at the sectors shows energy (+1.6%) as the only sector up more than 1.0%, while the consumer staples (-2.0%), health care (-1.2%), utilities (-1.2%), and real estate (-0.2%) sectors trade lower.

WTI crude futures settled higher by 3.8%, or $4.49, to $123.76/bbl.

[ReturntoSender]

Market Snapshot

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

Dow 32945.24 +1.05 (0.00%)
Nasdaq 12581.22 -262.59 (-2.04%)
SP 500 4173.11 -31.20 (-0.74%)
10-yr Note -13/32 2.143
NYSE Adv 847 Dec 2404 Vol 1.2 bln
Nasdaq Adv 1138 Dec 3225 Vol 5.8 bln

Industry Watch
Strong: Financials, Health Care, Consumer Staples, Industrials
Weak: Energy, Information Technology, Consumer Discretionary

Moving the Market

-- Growth stocks pace steady decline, Nasdaq underperforms

-- Oil prices drop 7% and Treasury yields spike

-- Reported progress in Russia-Ukraine talks; China locks down Shenzhen due to COVID-19 outbreak

Down day as higher rates outweigh lower oil prices
14-Mar-22 16:20 ET
Dow +1.05 at 32945.24, Nasdaq -262.59 at 12581.22, S&P -31.20 at 4173.11

[BRIEFING.COM] The S&P 500 lost 0.7% on Monday, as the negative impact to growth stocks following another rise Treasury yields outweighed the benefit of weaker oil prices ($102.82, -6.28, -5.8%). The Nasdaq Composite (-2.0%) and Russell 2000 (-1.9%) both fell about 2%, while the Dow Jones Industrial Average finished flat.

Declining issues outpaced advancing issues by roughly a 3:1 margin at the NYSE and Nasdaq. The S&P 500 information technology (-1.9%), communication services (-1.8%), and consumer discretionary (-%) sectors, which contain the mega-caps, were among the laggards next to the energy sector (-2.9%).

Conversely, the financials sector (+1.3%) followed rates to the top of the leaderboard. The health care (+0.7%), consumer staples (+0.6%), and industrials (+0.3%) sectors posted more modest gains. A handful of stocks within these sectors were responsible for the relative outperformance of the Dow.

Early on, the market appreciated the decline in oil prices, which briefly fell below $100.00 per barrel after Russia and Ukraine reported progress in ceasefire negotiations. Russia's military actions suggested otherwise, but to be fair, both sides paused today's talks to go over technical language tomorrow.

The S&P 500 was up 1.0% intraday even as Treasury yields were on the rise. The higher rates were catalyzed overnight after China locked down Shenzhen, a major technology hub, due to a COVID-19 outbreak. The potential for increased supply disruptions fed into inflation expectations, and in turn, rate-hike expectations.

The growth stocks, unfortunately, coughed up gains and led the market lower as Treasury yields refused to let up. The 2-yr yield settled higher by nine basis points to 1.84%, and the 10-yr yield settled higher by 14 basis points to 2.14%. The U.S. Dollar Index was roughly unchanged at 99.09.

Selling picked up as the S&P 500 was unable to hold onto the psychological 4200 level. Apple (AAPL 150.62, -4.11, -2.7%) was a particular drag, breaking below its 200-day moving average (153.74) amid news that Foxconn halted production at an iPhone factory because of the Chinese lockdown.

Uber (UBER 29.27, -1.49, -4.8%), meanwhile, announced a fuel surcharge for customers, exacerbating concerns that inflation will slow down consumer spending. UBER shares fell 5%.

Investors did not receive any economic data on Monday. Looking ahead, investors will receive the Producer Price Index for February and the Empire State Manufacturing Survey for March on Tuesday.

Dow Jones Industrial Average -9.3% YTD
S&P 500 -12.4% YTD
Russell 2000 -13.5% YTD
Nasdaq Composite -19.6% YTD

Crude futures settle lower by 6%
14-Mar-22 15:30 ET
Dow +16.94 at 32961.13, Nasdaq -235.91 at 12607.90, S&P -28.78 at 4175.53

[BRIEFING.COM] The S&P 500 is down 0.7%, and the Russell 2000 is down 2.0%.

One last look at the sectors shows energy (-3.6%) at the bottom of the standings with a 3.6% decline due to the weaker oil prices. The information technology (-1.5%), consumer discretionary (-1.6%), and communication services (-1.7%) sectors follow suit amid weakness in the mega-caps.

Conversely, the financials (+1.3%), health care (+0.6%), utilities (+0.6%), and industrials (+0.2%) sectors are trading higher.

WTI crude futures settled lower by $6.28 (-5.8%) to $102.82/barrel after briefly falling below $100.00/barrel intraday.

[ReturntoSender]

Market Snapshot

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

Dow 33544.34 +599.10 (1.82%)
Nasdaq 12948.62 +367.40 (2.92%)
SP 500 4262.45 +89.34 (2.14%)
10-yr Note 0/32 2.149
NYSE Adv 2232 Dec 998 Vol 1.2 bln
Nasdaq Adv 2554 Dec 1645 Vol 5.3 bln

Industry Watch
Strong: Consumer Discretionary, Information Technology, Utilities, Consumer Staples
Weak: Energy

Moving the Market

-- Stock market rallies, except for energy stocks

-- Oil prices extend pullback by another 6.5%

-- PPI data for February was better than feared

Stocks rally, oil prices extend pullback
15-Mar-22 16:15 ET
Dow +599.10 at 33544.34, Nasdaq +367.40 at 12948.62, S&P +89.34 at 4262.45

[BRIEFING.COM] The S&P 500 rose 2.1% on Tuesday, providing investors relief as oil prices extended their pullback and PPI data for February was better than feared. The Nasdaq Composite gained 2.9%, the Dow Jones Industrial Average gained 1.8%, and the Russell 2000 gained 1.4%.

Stocks that have been the hardest this year saw the biggest gains today, particularly the large growth stocks within the S&P 500 information technology (+3.4%) and consumer discretionary (+3.4%) sectors. The energy sector (-3.7%) was the only sector that closed lower, losing 3.7% amid the drop in oil prices.

Crude futures fell 6.5%, or $6.66, to $96.16/bbl, as growth concerns lingered due to China's recent COVID-19 lockdowns. The stock market, however, overlooked the growth-concern aspect, perhaps because it welcomed the 26% retracement in oil prices since last week's highs, or because it was simply primed for a bounce.

The positive surprises in the inflation data helped, too, while the airline stocks rallied around higher Q1 revenue guidance from Delta (DAL 34.86, +2.79, +8.7%), United (UAL 38.24, +3.22, +9.2%), and Southwest (LUV 42.06, +1.96, +4.9%).

Some caveats include a recognition that the Producer Price Index for final demand was up 10.0% year-over-year -- softening the surprise that it was up 0.8% month-over-month, versus the Briefing.com consensus of 1.0% -- and that the airlines are still expecting revenue below pre-pandemic levels.

Treasury yields dipped in the wake of the PPI data, but they turned positive late in the session as stocks pushed towards session highs. There wasn't any specific catalyst behind the moves, leading some to speculate that the stock market might have been frontrunning a positive reaction to the FOMC decision tomorrow.

The 2-yr yield increased two basis points to 1.86% after touching 1.79% intraday, and the 10-yr yield increased two basis points to 2.16% after touching 2.08% intraday. The U.S. Dollar Index was little changed at 98.99.

On Russia-Ukraine, the headlines didn't seem to get worse, which was a relatively good thing. On a related note, Ukraine President Zelensky will address the U.S. Congress tomorrow at 9:00 a.m. ET, and President Biden will travel to Europe next week to attend a NATO summit on March 24.

Separately, Coupa Software (COUP 72.55, -17.27, -19.2%) was the latest growth stock that suffered a material decline after providing disappointing guidance.

Reviewing Tuesday's economic data:

The Producer Price Index for final demand increased 0.8% month-over-month in February (Briefing.com consensus +1.0%) following an upwardly revised 1.2% increase (from 1.0%) in January. The index for final demand, less foods and energy, rose 0.2% month-over-month (Briefing.com consensus +0.6%) following an upwardly revised 1.0% increase (from 0.8%) in January. On a year-over-year basis, the index for final demand was up 10.0% on an unadjusted basis while the index for final demand, less foods and energy, was up 8.4%.
The key takeaway is that we already know that consumers are being dealt the rising costs for producers; moreover, with the index for processed goods for intermediate demand increasing 1.6% month-over-month in February and the index for unprocessed goods for intermediate demand increasing 14.6% month-over-month, we already know that producers aren't going to see much, if any, cost relief in March.
The Empire State Manufacturing Survey for March dropped to -11.8 (Briefing.com consensus 9.0) from 3.1 in February.

Looking ahead to Wednesday, investors will receive the FOMC Rate Decision, Retail Sales for February, Import/Export Prices for February, the NAHB Housing Market Index for March, Business Inventories for January, and the weekly MBA Mortgage Applications Index.

Dow Jones Industrial Average -7.7% YTD
S&P 500 -10.6% YTD
Russell 2000 -12.3% YTD
Nasdaq Composite -17.2% YTD

Crude futures fall to $96 per barrel
15-Mar-22 15:30 ET
Dow +623.66 at 33568.90, Nasdaq +352.28 at 12933.50, S&P +88.80 at 4261.91

[BRIEFING.COM] The S&P 500 is trading at session highs with a 2.2% gain with the recent bump exuding a fear of missing out. In addition, the market could be frontrunning a positive reaction to the FOMC decision tomorrow.

One last look at the sectors shows consumer discretionary (+3.5%) and information technology (+3.3%) up more than 3.0%, while the energy sector (-3.5%) remains the lone holdout with a 3.5% decline.

WTI crude futures settled lower by $6.66 (-6.5%) to $96.16/barrel.

[ReturntoSender]

Market Snapshot

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

Dow 34063.10 +518.76 (1.55%)
Nasdaq 13436.45 +487.83 (3.77%)
SP 500 4357.86 +95.41 (2.24%)
10-yr Note -3/32 2.181
NYSE Adv 2541 Dec 639 Vol 1.4 bln
Nasdaq Adv 3137 Dec 932 Vol 6.4 bln

Industry Watch
Strong: Financials, Consumer Discretionary, Information Technology
Weak: Utilities, Energy, Consumer Staples

Moving the Market

-- S&P 500 coughs up gain post-FOMC decision, then bounces back

-- Fed hikes rates by 25 basis points and signals 7 rate hikes this year

-- Treasury yields spike, more so on the short-end of the curve

-- Continued hope for a ceasefire agreement despite continued Russian strikes

Stocks close at session high after Powell press conference
16-Mar-22 16:25 ET
Dow +518.76 at 34063.10, Nasdaq +487.83 at 13436.45, S&P +95.41 at 4357.86

[BRIEFING.COM] The S&P 500 rose 2.2% on Wednesday, as the market brushed off a hawkish-sounding FOMC decision once Fed Chair Powell started speaking. The Nasdaq Composite (+3.8%) and Russell 2000 (+3.1%) both gained more than 3.0% while the Dow Jones Industrial Average increased 1.6%.

Eight of the 11 S&P 500 sectors closed higher, with the consumer discretionary (+3.4%) and information technology (+3.3%) sectors also rising more than 3.0%. Conversely, the energy (-0.4%) and utilities (-0.2%) sectors closed lower.

Prior to the Fed, the session started with a risk-on mindset, bolstered by huge gains in Chinese markets after Beijing vowed support for the economy and financial markets and reports indicated that Russia and Ukraine continued to make progress in peace talks. The market continued to relish the idea of a ceasefire, even as Ukraine rejected a neutrality plan proposed by Russia.

Regarding the Fed, the central bank raised the target range for the fed funds rate by 25 basis points to 0.25-0.50%, as expected, and signaled six more rate hikes this year with four additional hikes next year. The statement noted that the Fed would begin reducing its balance sheet at an upcoming meeting (possibly in May, according to Fed Chair Powell).

The projections for interest rates were a bit more hawkish than anticipated, stoking concerns about a policy mistake that could hinder economic growth. That view was telegraphed in the Treasury market, as the yield curve flattened via a sharper rise in shorter-dated rates.

The Fed, per usual, produced some volatility in the market. The S&P 500 was up 1.3% prior to the decision (paring early gains), then fell 0.3% into negative territory following the statement. Stocks, however, swiftly recovered during Fed Chair Powell's press conference to close at session highs.

Fed Chair Powell soothed the market with one of his first statements being that he thinks the probability of a recession within the next year is low. He added that the reduced 2022 GDP growth forecast of 2.8% was tied to Russia's invasion of Ukraine instead of the expected impact of the Fed's tightening actions. Mr. Powell acknowledged that monetary policy could weigh on inflation and growth rates in 2023 and 2024.

Treasury yields backtracked from highs, but they still settled on a curve-flattening note. The 2-yr yield increased 13 basis points to 1.97% (hit 1.92% post-settlement), and the 10-yr yield increased two basis points to 1.18%. The U.S. Dollar Index fell 0.8% to 98.34. Crude futures fell 0.8%, or $0.74, to $95.42/bbl.

Reviewing Wednesday's economic data:

The Retail Sales report was not as disappointing as the headlines might suggest. Total retail sales increased 0.3% month-over-month in February (Briefing.com consensus +0.4%), yet they were actually stronger than expected after accounting for the large upward revision to January to +4.9% from +3.8%. The same goes for retail sales, excluding autos. They were up 0.2% month-over-month (Briefing.com consensus +0.8%), yet that followed an upward revision for January to +4.4% from +3.3%.
The key takeaway from the report is that there was a natural slowdown after a huge month of sales in January; however, gasoline station sales (+5.3%) were the difference maker in February. Excluding gasoline stations, retail sales declined 0.2% month-over-month, providing a sign of things to come perhaps as gas prices have moved higher in March.
Import prices rose 1.4% in February after increasing 1.9% in January. Excluding oil, import prices rose 0.8% after increasing 1.3% in January. Export prices rose 3.0% after increasing 2.8% in January. Excluding agriculture, export prices also rose 3.0% after increasing 2.8% in January.
The NAHB Housing Market Index for March decreased to 79 (Briefing.com consensus 81) from a revised reading of 81 (from 82) in February.
Business inventories increased 1.1% m/m in January following a revised 2.4% increase (from 2.1%) in December.
The weekly MBA Mortgage Applications Index declined 1.2% following an 8.5% increase in the prior week.

Looking ahead, investors will receive Housing Starts and Building Permits for February, weekly Initial and Continuing Claims, Industrial Production and Capacity Utilization for February, and the Philadelphia Fed Index for March on Thursday.

Dow Jones Industrial Average -6.3% YTD
S&P 500 -8.6% YTD
Russell 2000 -9.6% YTD
Nasdaq Composite -14.1% YTD

[ReturntoSender]

Market Snapshot

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

Dow 34754.93 +274.17 (0.80%)
Nasdaq 13893.84 +279.06 (2.05%)
SP 500 4463.12 +51.45 (1.17%)
10-yr Note +2/32 2.152
NYSE Adv 2150 Dec 1062 Vol 3.4 bln
Nasdaq Adv 2923 Dec 1395 Vol 8.0 bln

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

Moving the Market

-- Mega-caps lead S&P 500 and Nasdaq to a fourth straight advance

-- S&P 500 reclaims 50-day moving average (4433)

-- Market unfazed by geopolitics, the Fed, and the curve-flattening activity in the Treasury market

Rebound rally grows legs amid mega-cap strength
18-Mar-22 16:15 ET
Dow +274.17 at 34754.93, Nasdaq +279.06 at 13893.84, S&P +51.45 at 4463.12

[BRIEFING.COM] The S&P 500 rose 1.2% on this quadruple witching-options expiration Friday, as the mega-caps carried the benchmark index to its fourth straight advance. The Nasdaq Composite gained 2.1%, the Dow Jones Industrial Average gained 0.8%, and the Russell 2000 gained 1.0%.

There wasn't a specific catalyst today, suggesting that the market was influenced by the following factors: positive momentum after starting the week at an oversold position, technical factors as the S&P 500 reclaimed its 50-day moving average (4433), and short-covering activity from investors caught on the wrong end of the market direction.

The mega-caps were steady leaders throughout the session, lifting the S&P 500 information technology (+2.2%), consumer discretionary (+2.2%), and communication services (+1.4%) sectors to the top of the standings. No other sectors gained at least 1.0%.

The Vanguard Mega Cap Growth ETF (MGK 229.21, +4.95) rose 2.2%, versus a more modest 0.6% gain for the Invesco S&P 500 Equal Weight ETF (RSP 157.17, +1.00).

Conversely, the utilities sector (-0.9%) was the only sector that closed lower. FedEx (FDX 218.91, -9.07, -4.0%) and U.S. Steel (X 32.96, -1.59, -4.6%) were individual laggards after the former missed EPS estimates and the latter guided Q1 EPS below consensus.

The positive bias overshadowed reports indicating slow progress in ceasefire talks between Russia and Ukraine, an underwhelming phone conversation between President Biden and China's President Xi, commentary from Fed officials reminding the market about the need for policy normalization, and a weaker-than-expected existing home sales report for February.

The stock market also appeared unfazed by the curve-flattening activity in the Treasury market, which signaled underlying growth concerns. The 2s10s spread narrowed by six basis points, with the 2yr yield increasing two basis points to 1.96% and the 10-yr yield decreasing four basis points to 2.15%.

The U.S. Dollar Index increased 0.2% to 98.21. WTI crude futures fell 0.4%, or $0.40, to $103.03/bbl. The CBOE Volatility Index fell 7.0% to 23.87.

Reviewing Friday's economic data:

Existing home sales decreased 7.2% in February to a seasonally adjusted annual rate of 6.02 million (Briefing.com consensus 6.20 million). Total sales in February were down 2.4% from a year ago.
The key takeaway from the report is that higher mortgage rates and rising prices weighed on sales in February, resulting in the slowest pace of sales in six months.
The Conference Board's Leading Economic Index increased 0.3% m/m in February following a revised 0.5% decline (from -0.3%) in January.

There is no economic data scheduled for Monday or Tuesday.

Dow Jones Industrial Average -4.4% YTD
S&P 500 -6.6% YTD
Russell 2000 -7.1% YTD
Nasdaq Composite -11.2% YTD

Crude futures settle slightly lower
18-Mar-22 15:30 ET
Dow +216.86 at 34697.62, Nasdaq +266.47 at 13881.25, S&P +48.39 at 4460.06

[BRIEFING.COM] The S&P 500 is up 1.1% as the market gains steam heading into the close.

One last look at the sectors shows information technology (+2.2%) and consumer discretionary (+1.9%) still leading the sectors in gains, while the energy (-0.01%) and utilities (-0.6%) sectors are the two groups trading lower.

WTI crude futures settled lower by 0.4%, or $0.40, to $103.03/barrel.

[ReturntoSender]

Market Snapshot

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

Dow 34861.24 +153.30 (0.44%)
Nasdaq 14169.30 -22.54 (-0.16%)
SP 500 4543.06 +22.90 (0.51%)
10-yr Note -1 10/32 2.492
NYSE Adv 1600 Dec 1601 Vol 872.8 mln
Nasdaq Adv 1945 Dec 2592 Vol 5.49 bln

Industry Watch
Strong: Financials, Energy, Utilities, Materials
Weak: Technology, Consumer Discretionary, Communication Services, Health Care

Moving the Market

Rising Treasury yields weigh on growth stocks and homebuilders

Crude oil deepens Thursday pullback

Exports of LNG to Europe to be increased once new infrastructure is built

Solid Week Ends on Bumpy Note
25-Mar-22 16:25 ET
Dow +153.30 at 34861.24, Nasdaq -22.54 at 14169.30, S&P +22.90 at 4543.06

[BRIEFING.COM] The stock market ended a decent week on a shaky note, though a late rally toward morning highs masked a bumpy session. The Nasdaq (-0.2%) finished just below its flat line while the Dow (+0.4%) and S&P 500 (+0.5%) recorded gains. The three indices gained a respective 2.0%, 0.3%, and 1.8% for the week while the Russell 2000 (+0.1%) ended little changed, narrowing this week's loss to 0.4%.

Equities climbed out of the gate, allowing the S&P 500 to touch its best level in almost six weeks in early trade while the Nasdaq underperformed from the start after showing relative strength earlier this week.

The market ran into resistance about an hour after the open as Treasuries widened this week's losses. The selling in Treasuries accelerated after a research note released by Citigroup called for four consecutive 50-bps rate hikes, followed by two 25-bps hikes. Treasuries retreated to fresh lows for the year with the 10-yr yield ending the day at 2.49%, up 15 bps for the day and up 34 bps for the week.

Higher yields put some renewed pressure on growth stocks, resulting in the midday underperformance in the Nasdaq and sectors like technology (-0.1%) and consumer discretionary (-0.1%). Meanwhile, the remining nine groups finished the day in positive territory.

Even with today's loss, the technology sector ended the week ahead of the broader market with a gain of 2.3%. NVIDIA (NVDA 276.92, -4.58, -1.6%) was among today's laggards, as it pulled back from yesterday's surge to its highest level since mid-January.

Homebuilders and improvement store names weighed on the discretionary sector as the ongoing weakness in Treasuries sets the stage for higher mortgage rates. The iShares Dow Jones US Home Construction ETF (ITB 61.31, -0.88, -1.4%) retreated for the third consecutive day, falling toward its February low (60.02).

On the upside, five sectors gained at least 1.0% with energy (+2.3%) spending the bulk of the session in the lead, even when crude oil traded lower in morning action. However, WTI crude turned positive amid reports of an attack on a Saudi oil field. There was more talk about another release from the strategic reserve while Chevron (CVX 169.31, +3.01, +1.8%) received clearance to resume operations in Venezuela. WTI crude climbed $2.59, or 2.3%, to $113.83/bbl, gaining $10.80, or 10.5%, for the week.

Energy was followed by the utilities sector (+1.5%) which benefited from the market's shaky showing, while financials (+1.3%) and real estate (+1.2%) bounced after lagging earlier this week.

The materials sector (+1.1%) finished near the middle of the pack, masking this week's strength. The group gained 4.1% for the week with fertilizer producers Mosaic (MOS 71.34, +2.77, +4.0%) and CF Industries (CF 109.52, +3.12, +2.9%) powering to fresh 52-week highs, alongside steelmaker Nucor (NUE 157.62, +4.10, +2.7%).

Reviewing today's economic data:

Pending Home Sales fell 4.1% in February (Briefing.com consensus 1.2%) after decreasing a revised 5.8% (from -5.7%) in January.
The final March reading for the University of Michigan Consumer Sentiment Index checked in at 59.4 (Briefing.com consensus 59.5) versus the preliminary reading of 59.7. The final reading for February was 62.8. 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 standard of living has been reduced because their income is not keeping up with inflation. Notably, it was indicated in the report that 32% of consumers expect their overall financial position to worsen in the year ahead, which is the highest level since the survey started in the mid-1940s.

February advance Retail Inventories (prior 1.9%), advance Wholesale Inventories (prior 0.8%), and the advance goods trade deficit (prior -$107.6 bln) will be reported on Monday at 8:30 ET.

Dow Jones Industrial Average -4.1% YTD
S&P 500 -4.7% YTD
Russell 2000 -7.5% YTD
Nasdaq Composite -9.4% YTD

[ReturntoSender]

Market Snapshot

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

Dow 34955.89 +94.65 (0.27%)
Nasdaq 14354.90 +185.60 (1.31%)
SP 500 4575.52 +32.46 (0.71%)
10-yr Note +2/32 2.457
NYSE Adv 1653 Dec 1654 Vol 857.0 mln
Nasdaq Adv 2159 Dec 2375 Vol 5.0 bln

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

Moving the Market

-- Reported progress in ceasefire talks helps spark late-session push

-- Nasdaq outperforms amid quarter-end rebalancing activity

-- Shanghai announces Covid lockdown in two phases

-- Oil prices drop 6%, Treasury yield curve flattens

Stocks shake off slow start and close higher
28-Mar-22 16:20 ET
Dow +94.65 at 34955.89, Nasdaq +185.60 at 14354.90, S&P +32.46 at 4575.52

[BRIEFING.COM] The S&P 500 gained 0.7% on Monday, as positive momentum and a hopeful-sounding geopolitical headline helped outweigh growth concerns. The Nasdaq Composite rose 1.3% while the Dow Jones Industrial Average rose 0.3%. The small-cap Russell 2000 (unch) finished flat.

Eight of the 11 S&P 500 sectors closed higher, led by the consumer discretionary (+2.7%), information technology (+1.2%), and real estate (+1.3%) sectors. The energy (-2.6%), materials (-0.5%), and financials (-0.3%) sectors closed lower.

Early on, the market was slowed down by growth concerns attributed to Shanghai announcing a two-phase Covid lockdown, The Nikkei reporting that Apple (AAPL 175.60, +0.88, +0.5%) plans to cut production of the iPhone SE and AirPods, the White House proposing tax increases in the FY23 budget, and the prolonged Russia-Ukraine situation.

The latter showed some progress in the afternoon after the Financial Times reported that Russia is prepared to allow Ukraine to join the EU as part of ceasefire talks as long as it doesn't join NATO. That report appeared to catalyze a late-session push, further supported by quarter-end rebalancing within the Nasdaq.

While equities reacted positively, the growth concerns didn't necessarily go away. The cyclical sectors (except for the consumer discretionary sector) still underperformed, WTI crude futures still fell 6.5%, or $7.36, to $106.47/bbl, and the Treasury yield curve still flattened.

The 2-yr yield rose five basis points to 2.34%, while the 10-yr yield decreased two basis points to 2.48%. On a related note, the $50 bln 2-yr note auction saw weak demand while the $51 bln 5-yr note auction was met with solid demand.

The U.S. Dollar Index increased 0.4% to 99.14 amid relative weakness in the British pound (-0.7%) and Japanese yen (-1.5%). The yen fell after the Bank of Japan offered to buy an unlimited amount of JGBs at 0.25% as part of its policy to control the yield curve.

Separately, shares of Tesla (TSLA 1091.84, +81.20, +8.0%) jumped 8% after the company said it will ask shareholders for vote at this year’s annual meeting to authorize additional shares to enable a stock split.

Reviewing Monday's economic data:

The Advance report for International Trade in Goods for February showed a deficit of $106.6 billion, versus an unrevised $107.6 billion in January. The Advance report for Retail Inventories for February rose 1.1%, while the Advance report for Wholesale Inventories for February rose 2.1%.

Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for March, the JOLTS - Job Openings report for February, the FHFA Housing Price Index for January, and the S&P Case-Shiller Home Price Index for February on Tuesday.

Dow Jones Industrial Average -3.8% YTD
S&P 500 -4.0% YTD
Russell 2000 -7.5% YTD
Nasdaq Composite -8.3% YTD

Russia prepared to let Ukraine join EU -- Financial Times
28-Mar-22 15:00 ET
Dow -46.59 at 34814.65, Nasdaq +119.26 at 14288.56, S&P +13.92 at 4556.98

[BRIEFING.COM] The S&P 500 is trading near session highs with a 0.3% gain amid strength in the mega-caps. Apple (AAPL 174.91, +0.20, +0.1%) has turned positive after being down 1.6% intraday.

The recent gains have been catalyzed by a Financial Times report indicating that Russia is prepared to allow Ukraine join the EU as part of ceasefire talks as long as it doesn't join NATO.

That has livened up risk sentiment while a speculative fervor is taking shape in the meme stocks like AMC Entertainment (AMC 26.37, +6.14, +30.3%) and GameStop (GME 174.45, +22.45, +14.8%).

[ReturntoSender]

Market Snapshot

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

Dow 35294.19 +338.30 (0.97%)
Nasdaq 14619.63 +264.73 (1.84%)
SP 500 4631.63 +56.11 (1.23%)
10-yr Note +28/32 2.398
NYSE Adv 2651 Dec 631 Vol 1.0 bln
Nasdaq Adv 3236 Dec 1251 Vol 5.9 bln

Industry Watch
Strong: Real Estate, Information Technology, Consumer Discretionary
Weak: Energy

Moving the Market

-- Ceasefire hopes spur gains

-- Positive momentum

-- 2s10s spread briefly inverts

Another green day for stocks, while recession indicator flashes red
29-Mar-22 16:15 ET
Dow +338.30 at 35294.19, Nasdaq +264.73 at 14619.63, S&P +56.11 at 4631.63

[BRIEFING.COM] The S&P 500 rose 1.2% on Tuesday, as reported progress in peace talks helped keep the positive momentum intact despite a key inversion in the Treasury market. The Nasdaq Composite (+1.8%) and Russell 2000 (+2.7%) outperformed the benchmark index while the Dow Jones Industrial Average rose 1.0%.

The positive start was catalyzed by news that Russia agreed to reduce military operations near Kyiv and that it's willing to speed up the timeline for a meeting between Presidents Putin and Zelensky. President Biden and European leaders were more skeptical, with Mr. Biden saying they were going to wait and see for what Russia does instead of believing its words.

The stock market took the reports at face value, using the news as a good excuse to maintain its rebound-minded intentions. Shares of Apple (AAPL 178.96, +3.36, +1.9%) rose for the 11th straight session, and ten of the 11 S&P 500 sectors finished in positive territory.

The heavily-weighted information technology (+2.1%) and consumer discretionary (+1.5%) sectors were among the top performers behind the real estate sector (+2.9%), while the energy sector (-0.4%) bucked the positive trend amid a decline in oil prices ($104.33, -2.14, -2.0%).

Oil, like other commodities and the dollar (98.41, -0.68, -0.7%), was pressured by the prospects of a ceasefire agreement. The dollar weakened against a stronger euro (+0.9% to 1.1088).

Elsewhere, a widely-followed recession indicator in the Treasury market briefly flashed red for the first time since 2019. Specifically, the 2-yr yield (+1 bps to 2.35%) briefly traded higher than the 10-yr yield (-8 bps to 2.40%), which is typically viewed as a harbinger for a recession between 6-24 months after the inversion.

Bullish investors noted that equities tend to rally in the months between the inversion and recession while others downplayed the significance of the indicator, arguing that the Fed's policy accommodation has distorted the long-end of the curve.

On a related note, Philadelphia Fed President Harker (non-voter in FOMC) told CNBC that an inversion of the yield curve has mixed evidence regarding recession indicators. Former New York Fed President Dudley opined in a Bloomberg piece that a recession is "virtually inevitable" because the Fed is behind the curve.

Reviewing Tuesday's economic data:

The Conference Board's Consumer Confidence Index rose to 107.2 in March (Briefing.com consensus 107.5) from a downwardly revised 105.7 (from 110.5) in February. In the same period a year ago, the index stood at 109.0.
The key takeaway from the report is that consumers benefited from continued growth in late Q1, though expectations for the near future continued weakening, which has the potential to pressure future spending plans.
Job openings decreased to 11.266 million in February from a revised 11.283 million (from 11.263 million) in January.
The FHFA Housing Price Index for February increased 1.6% m/m (Briefing.com consensus 1.3%), and the S&P Case-Shiller Home Price Index for February increased 19.1% yr/yr (Briefing.com consensus 18.7%).

Looking ahead, investors will receive the third estimate for Q4 GDP, the ADP Employment Change report for March, and the weekly MBA Mortgage Applications Index on Wednesday.

S&P 500 -2.8% YTD
Dow Jones Industrial Average -2.9% YTD
Russell 2000 -5.0% YTD
Nasdaq Composite -6.6% YTD

Crude futures settle lower
29-Mar-22 15:30 ET
Dow +307.94 at 35263.83, Nasdaq +272.81 at 14627.71, S&P +54.60 at 4630.12

[BRIEFING.COM] The S&P 500 is up 1.2% to trade at session highs while the Russell 2000 trades higher by 2.6%.

One last look at the sectors shows real estate (+2.8%), information technology (+2.1%), and consumer discretionary (+1.7%) atop the standings, while the energy sector (-0.7%) remains the only sector trading lower.

WTI crude futures settled lower by $2.14 (-2.0%) to $104.33/barrel after briefly dipping below $100.00/barrel intraday.

[ReturntoSender]

Market Snapshot

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

Dow 34678.35 -550.46 (-1.56%)
Nasdaq 14220.51 -221.76 (-1.54%)
SP 500 4530.41 -72.04 (-1.57%)
10-yr Note +1/32 2.341
NYSE Adv 1317 Dec 1977 Vol 1.2 bln
Nasdaq Adv 1710 Dec 2734 Vol 5.3 bln

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

Moving the Market

-- Stocks slump into the close

-- Profit-taking interest, quarter-end machinations

-- U.S. plans to release 1 million barrels of oil from strategic reserves per day for the next six months

Stocks slump into quarter's end
31-Mar-22 16:15 ET
Dow -550.46 at 34678.35, Nasdaq -221.76 at 14220.51, S&P -72.04 at 4530.41

[BRIEFING.COM] The S&P 500 fell 1.6% on Thursday, slumping into the close on no specific news catalyst. The Nasdaq Composite (-1.5%) and Dow Jones Industrial Average (-1.6%) fell comparably while the Russell 2000 fell 1.0%.

The weak finish pushed all 11 S&P 500 sectors into the red on a closing basis, with the financials (-2.3%) and communication services (-2.0%) sectors losing at least 2.0%. The utilities (-0.2%) and consumer staples (-0.4%) sectors outperformed on a relative basis with modest declines.

The session was influenced by profit-taking activity after a strong second half of March, quarter-end machinations, and a 7% drop in oil prices ($100.43, -7.24, -6.7%) after the White House laid out plans to release one million barrels of oil per day for the next six months to help alleviate gas prices.

On a related note, OPEC+ agreed to increase its output targets by 432,000 barrels per day in May, according to CNBC. That's slightly more than the 400,000-bpd schedule for April.

Inflation remained on the market's mind after PCE data for February rose in-line with expectations, further crimping real personal disposable income, which decreased 0.2% in February. On a year-over-year basis, the PCE Price Index was up 6.4% while the core PCE Price Index, which excludes food and energy, was up 5.4% -- its highest level since 1983.

The Treasury market didn't react to the inflation data, perhaps because it wasn't surprising or because investors preferred to hide out in bonds amid the negative bias in equities ahead of the employment report tomorrow. The tight spreads continued to weigh on the financials sector for profitability reasons.

The 2-yr yield decreased five basis points to 2.28%, and the 10-yr yield decreased three basis points to 2.33%. The U.S. Dollar Index rose 0.6% to 98.37. The CBOE Volatility Index increased 6.4% to 20.56.

Separately, Walgreens Boots Alliance (WBA 44.77, -2.69, -5.7%) fell 6% despite the Dow component beating top and bottom-line estimates while UiPath (PATH 21.59, -7.45, -25.7%) was the latest growth stock to take a plunge after providing disappointing guidance.

Reviewing Thursday's economic data:

Personal income increased 0.5% month-over-month in February (Briefing.com consensus 0.5%), though real personal disposable income was down 0.2%. Personal spending increased 0.2% (Briefing.com consensus 0.5%) while the personal savings rate as a percentage of disposable income increased to 6.3% from a revised 6.1% (from 6.4%) in January. Real personal spending was down 0.4%. The PCE Price Index was up 0.6% (Briefing.com consensus 0.6%), pushing the year-over-year rate to 6.4% from 6.0%. The core PCE Price Index, which excludes food and energy, was up 0.4% (Briefing.com consensus 0.4%), pushing the year-over-year rate up to 5.4% from 5.2% in January.
The key takeaway from the report is that inflation continues taking a bite out of wage gains, as real personal disposable income decreased 0.2% while the Core PCE Price Index rose to its highest level since 1983.
Initial jobless claims for the week ending March 26, increased by 14,000 to 202,000 (Briefing.com consensus 200,000), rising off their lowest level since September 1969. Continuing jobless claims for the week ending March 19 decreased by 35,000 to 1.307 million, a level not seen since December 27, 1969.
The key takeaway from the report is that with claims hovering at levels not seen since late 1969/early 1970, the labor market remains tight, which can serve as a tailwind to already-high inflation.
The Chicago PMI for March increased to 62.9 (Briefing.com consensus 56.8) from 56.3 in February.

Looking ahead, investors will receive the Employment Situation report for March, the ISM Manufacturing Index for March, and Construction Spending for February on Friday.

Dow Jones Industrial Average -4.6% YTD
S&P 500 -5.0% YTD
Russell 2000 -7.8% YTD
Nasdaq Composite -9.1% YTD

Crude futures fall to $100 per barrel
31-Mar-22 15:30 ET
Dow -288.94 at 34939.87, Nasdaq -100.54 at 14341.73, S&P -33.47 at 4568.98

[BRIEFING.COM] The S&P 500 is trading at session lows with a 0.7% decline on no specific news catalyst.

One last look at the sectors shows financials (-1.4%), communication services (-1.1%), and consumer discretionary (-1.0%) down at least 1.0% while the consumer staples (+0.1%) and utilities (+0.4%) sectors cling onto small gains.

WTI crude futures settled lower by $7.24 (-6.7%) to $100.43/barrel after the White House laid out plans to release one million barrels of oil per day from strategic reserves and OPEC+ agreed to gradually raise output in May.

[ReturntoSender]

Market Snapshot

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

Dow 34583.57 +87.06 (0.25%)
Nasdaq 13897.28 +8.48 (0.06%)
SP 500 4500.21 +19.06 (0.43%)
10-yr Note -4/32 2.639
NYSE Adv 1491 Dec 1660 Vol 1.0 bln
Nasdaq Adv 1858 Dec 2570 Vol 4.7 bln

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

Moving the Market

-- Large-cap indices close higher, recovering early losses on no specific news

-- S&P 500 reclaims 200-day moving average (4492) on closing basis

-- Longer-dated Treasury yields creep higher, steepening the curve

Large-cap indices close higher, recovering early losses
07-Apr-22 16:20 ET
Dow +87.06 at 34583.57, Nasdaq +8.48 at 13897.28, S&P +19.06 at 4500.21

[BRIEFING.COM] The S&P 500 increased 0.4% on Thursday, overcoming a 0.7% intraday decline on no specific news catalysts. The Nasdaq Composite (+0.1%) and Dow Jones Industrial Average (+0.3%) also recouped intraday losses while the Russell 2000 (-0.4%) still closed lower despite a recovery effort.

Two early headwinds for the market included technical resistance at the S&P 500's 200-day moving average (4492) and upwards pressure in long-term interest rates. The 10-yr yield settled higher by five basis points to 2.66% after trading at 2.56% overnight.

Investors, also cognizant of a hawkish-minded Fed, continued to lean defensively as the market drifted lower throughout the morning. Equities, however, turned around in the afternoon without a news catalyst, perhaps amid a contrarian mindset as sentiment had gotten too bearish.

The S&P 500 reclaimed its 200-day moving average on a closing basis with the help of seven of its 11 sectors. The health care (+1.9%), energy (+1.4%), and consumer staples (+1.2%) sectors led the advance with gains over 1.0%.

Conversely, the real estate (-0.9%), communication services (-0.7%), utilities (-0.3%), and financials (-0.1%) sectors closed lower. The CBOE Volatility Index (21.55, -0.55, -2.5%) did, too, as hedging interest waned amid the rebound-minded action.

In corporate news, shares of Costco (COST 608.05, +23.26, +4.0%) hit an all-time high after the company reported adjusted March comparable sales growth of 12.2% while HP Inc. (HPQ 40.06, +5.15, +14.8%) surged 15% after Warren Buffett's Berkshire Hathaway (BRK.B 346.51, +1.80, +0.5%) disclosed a stake in the company.

Back in the Treasury market, the 2s10s spread increased to 19 basis points from 12 basis points yesterday. The 2-yr yield decreased two basis points to 2.47% while the 10-yr yield, as noted above, settled at 2.66%. The U.S. Dollar Index increased 0.2% to 99.79. WTI crude futures fell 0.3%, or $0.29, to $96.30/bbl.

Reviewing Thursday's economic data:

Initial claims for the week ending April 2 dropped by 5,000 to 166,000 (Briefing.com consensus 200,000). Continuing claims for the week ending March 26 increased by 17,000 to 1.523 million.
The key takeaway from the report is that it was influenced by revisions to seasonal adjustment factors. Still, the low level of initial claims following the revisions remains indicative of a tight labor market.
Consumer credit increased by $41.8 billion in February (Briefing.com consensus $15.5 billion). The prior month saw an upward revision to $8.9 bln from $6.8 bln.
In February, consumer credit increased at a seasonally adjusted annual rate of 11.3%. Revolving credit increased at an annual rate of 20.7%, while nonrevolving credit increased at an annual rate of 8.4%.

Looking ahead, investors will receive the Wholesale Inventories report for February on Friday.

Dow Jones Industrial Average -4.8% YTD
S&P 500 -5.6% YTD
Russell 2000 -10.5% YTD
Nasdaq Composite -11.2% YTD

Crude futures settle slightly lower
07-Apr-22 15:30 ET
Dow +134.68 at 34631.19, Nasdaq +55.70 at 13944.50, S&P +29.33 at 4510.48

[BRIEFING.COM] The S&P 500 is up 0.7% while the Russell 2000 is still stuck in negative territory with a 0.2% decline.

One last look at the sectors shows health care (+2.0%), consumer staples (+1.2%), and energy (+1.1%) up between 1-2%, while the real estate (-0.7%), utilities (-0.5%), and communication services (-0.4%) sectors are the only sectors trading lower.

WTI crude futures settled lower by $0.29 (-0.3%) to $96.30/barrel.

[ReturntoSender]

Market Snapshot

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

Dow 34220.36 -87.72 (-0.26%)
Nasdaq 13371.56 -40.38 (-0.30%)
SP 500 4397.45 -15.08 (-0.34%)
10-yr Note +5/32 2.724
NYSE Adv 1588 Dec 1604 Vol 873.0 mln
Nasdaq Adv 1920 Dec 2533 Vol 4.8 bln

Industry Watch
Strong: Energy, Consumer Discretionary
Weak: Health Care, Financials, Communication Services

Moving the Market

-- Stocks fade early gains

-- Better-than-feared CPI report

-- Treasury yields drop

-- S&P 500 falls back below 50-day moving average (4425)

Investors sell early rally effort
12-Apr-22 16:15 ET
Dow -87.72 at 34220.36, Nasdaq -40.38 at 13371.56, S&P -15.08 at 4397.45

[BRIEFING.COM] The S&P 500 declined 0.3% on Tuesday, fading an early 1.3% gain that was rooted in hopes that inflation rates could be peaking. The Nasdaq Composite (-0.3%) and Dow Jones Industrial Average (-0.3%) followed similar price action, while the Russell 2000 (+0.3%) eked out a gain.

Seven of the 11 S&P 500 sectors closed lower after each spent time in positive territory during the day. The financials (-1.1%) and health care (-1.0%) sectors declined at least 1.0%, while the energy (+1.7%), utilities (+0.4%), and consumer discretionary (+0.2%) sectors closed higher.

Early in the day, the Consumer Price Index (CPI) report for March was being construed as a sign of peak inflation and a corresponding excuse to rally. Total CPI rose 1.2% m/m, as expected, while core CPI, which excludes food and energy, increased by just 0.3% (Briefing.com consensus 0.5%).

The fast start for the market was further supported by technical factors as the S&P 500 temporarily reclaimed its 50-day moving average (4424) and short-covering activity among investors caught off guard by the market's positive reaction to the CPI data.

The rally excuse also pertained to the Treasury market, where the 2-yr yield subsequently dropped 11 basis points to 2.39% and the 10-yr yield dropped six basis points to 2.73%. The U.S. Dollar Index topped the 100.00 level (100.31, +0.37, +0.4%) for its ninth-straight advance.

Unfortunately, the stock market proceeded to drift lower the rest of the day amid a lack follow-through buying interest and a violation of the S&P 500's 50-day moving average. The benchmark index closed below the key technical level.

The nervous price action was presumably tied to a recognition that the Fed is poised to hike rates by 50 basis points next month, underlying growth concerns, uncertainty regarding corporate guidance this earnings season, and disappointing earnings reactions in CarMax (KMX 93.33, -9.84, -9.5%) and Albertsons (ACI 31.97, -2.81, -8.1%).

Oil prices reclaimed $100.00 per barrel ($100.69, +6.53, +6.9%), which was cited as an additional drag on sentiment, although the rebound corresponded with the good news that Shanghai started to relax some COVID-19 restrictions.

American Airlines (AAL 17.13, +0.16, +0.9%), meanwhile, provided a lift for the airline industry after raising its Q1 revenue guidance. As a reminder, JPMorgan Chase (JPM 131.54, -1.46, -1.1%) will report earnings prior to Wednesday's open.

Reviewing Tuesday's economic data:

Total CPI increased 1.2% month-over-month in March, as expected, while core CPI, which excludes food and energy, increased a smaller-than-expected 0.3% (Briefing.com consensus 0.5%). That left total CPI up 8.5% year-over-year, the highest 12-month increase since December 1981, and core CPI up 6.5% year-over-year, the highest 12-month increase since August 1982.
The key takeaway from the report is that it is subject to widening interpretations. The popular narrative is that it's hard to believe things will get any worse; therefore, this report is "good" because it must mark peak inflation. The less popular, but practical, narrative is that this report reveals a broadening in inflation pressures that will push the Fed to raise rates by 50 basis points at the next FOMC meeting.
The Treasury Budget showed a $192.7 bln deficit in March versus a $659.6 bln deficit in the same period a year ago. The budget data is not seasonally adjusted, so the March deficit cannot be compared to the February deficit of $216.6 bln.
The budget deficit over the last 12 months is $1.74 trln versus a deficit of $2.20 trln in February.
The NFIB Small Business Optimism Index for March decreased to 93.2 from 95.7 in February.

Looking ahead, investors will receive the Producer Price Index for March and the weekly MBA Mortgage Applications Index on Wednesday.

Dow Jones Industrial Average -5.8% YTD
S&P 500 -7.7% YTD
Russell 2000 -11.5% YTD
Nasdaq Composite -14.5% YTD

Crude futures reclaim $100 per barrel
12-Apr-22 15:30 ET
Dow -188.12 at 34119.96, Nasdaq -84.01 at 13327.93, S&P -29.15 at 4383.38

[BRIEFING.COM] The S&P 500 is trading at session lows with a 0.6% decline while the Russell 2000 trades flat.

Nine of the 11 S&P 500 sectors are trading lower with financials (-1.4%), health care (-1.3%), and communication services (-1.2%) down over 1.0%. The energy (+1.5%) and utilities (+0.2%) sectors, however, are still trading higher.

WTI crude futures settled higher by $6.53 (+6.9%) to $100.69/barrel amid a report from Reuters indicating that Shanghai is relaxing some COVID-19 restrictions.

[ReturntoSender]

Market Snapshot

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

Dow 34564.59 +344.23 (1.01%)
Nasdaq 13643.58 +272.02 (2.03%)
SP 500 4446.59 +49.14 (1.12%)
10-yr Note +3/32 2.698
NYSE Adv 2373 Dec 858 Vol 790.0 mln
Nasdaq Adv 3348 Dec 1222 Vol 4.8 bln

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

Moving the Market

-- Not deterred by EPS miss from JPMorgan Chase (JPM) or hotter-than-expected PPI data for March

-- Investors buy the dip

-- Treasury yields decline for second straight day

Undeterred by JPM earnings miss and hot PPI data
13-Apr-22 16:15 ET
Dow +344.23 at 34564.59, Nasdaq +272.02 at 13643.58, S&P +49.14 at 4446.59

[BRIEFING.COM] The S&P 500 rose 1.1% on Wednesday in a relatively broad-based advance led by the growth stocks. The Dow Jones Industrial Average (+1.0%) rose comparably, while the Nasdaq Composite (+2.0%) and Russell 2000 (+1.9%) outperformed with roughly 2% gains.

Investors assumed a dip-buying mindset, undeterred by a larger than expected 1.4% m/m increase in the Producer Price Index (PPI) for March (Briefing.com consensus 1.2%) and an earnings miss from JPMorgan Chase (JPM 127.30, -4.24, -3.2%).

The S&P 500 reclaimed its 50-day moving average (4422) on a closing basis amid gains in nine of its 11 sectors. Six sectors advanced at least 1.0%, including a 2.5% gain for the consumer discretionary sector (+2.5%).

Airline stocks were particularly strong after Delta Air Lines (DAL 41.02, +2.40, +6.2%) beat top and bottom-line estimates and Delta's CEO provided upbeat bookings commentary. The U.S. Global Jets ETF (JETS 21.65, +1.09) rose 5.3%.

Conversely, the financials (-0.1%) and utilities (-0.2%) sectors closed lower, with the former pressured by JPM's disappointing earnings results and a second-straight decline in Treasury yields.

The 2-yr yield decreased five basis points to 2.34%, and the 10-yr yield decreased four basis points to 2.69%. The U.S. Dollar Index fell 0.4% to 99.88.

The decline in rates helped alleviate some of the valuation concerns in the growth stocks, including the mega-caps. The Vanguard Mega Cap Growth ETF (MGK 225.04, +4.02) rose 1.8%, versus a 1.1% gain for the Invesco S&P 500 Equal Weight ETF (RSP 156.60, +1.75).

Demand for Treasuries was presumably influenced by the peak inflation narrative and cautious-sounding commentary from JPM CEO Jamie Dimon about the economic challenges ahead. The PPI report wasn't that surprising, either, after the hot CPI report yesterday, suggesting the report was already priced in.

WTI crude futures, meanwhile, flirted with $105 per barrel ($104.25, +3.56, +3.5%) despite bearish inventory data from the EIA and a downwardly revised 2022 global demand growth forecast from the IEA.

Reviewing Wednesday's economic data:

The Producer Price Index for final demand jumped 1.4% month-over-month in March (Briefing.com consensus 1.2%) following an upwardly revised 0.9% increase (from 0.8%) in February. The index for final demand, less foods and energy, rose 1.0% month-over-month (Briefing.com consensus 0.5%) following an upwardly revised 0.4% increase (from 0.2%) in February. On a year-over-year basis, the index for final demand was up 11.2% while the index for final demand, less foods and energy, was up 9.2%. The accompanying tables for the report show a lengthy list of double-digit percentage increases on a year-over-year basis for many categories.
The key takeaway from the report is that it is a signpost of potential profit margin pressures that are going to intensify if consumers start showing more resistance to price increases. Beyond that, it's another reminder that the Fed needs to get aggressive with its policy to get these rampant inflation pressures in check.
The weekly MBA Mortgage Applications Index decreased 1.3% following a 6.3% decline in the prior week.

Looking ahead to Thursday, investors will receive Retail Sales for March, weekly Initial and Continuing Claims, the preliminary University of Michigan Index of Consumer Sentiment for April, Import and Export Prices for March, and Business Inventories for February.

Dow Jones Industrial Average -4.9% YTD
S&P 500 -6.7% YTD
Russell 2000 -9.8% YTD
Nasdaq Composite -12.8% YTD

Crude futures stay above $100
13-Apr-22 15:30 ET
Dow +329.22 at 34549.58, Nasdaq +283.23 at 13654.79, S&P +49.69 at 4447.14

[BRIEFING.COM] The S&P 500 is up 1.2% and on track to close above its 50-day moving average (4422).

One last look at the S&P 500 sectors shows consumer discretionary (+2.6%), information technology (+1.7%), and communication services (+1.4%) in the top three positions, while the financials (-0.2%) and utilities (-0.3%) underperform with modest losses.

WTI crude futures settled higher by $3.56 (+3.5%) to $104.25/barrel.

[ReturntoSender]

Market Snapshot

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

Dow 34411.69 -39.54 (-0.11%)
Nasdaq 13332.35 -18.72 (-0.14%)
SP 500 4391.68 -0.90 (-0.02%)
10-yr Note -2/32 2.862
NYSE Adv 1209 Dec 2049 Vol 828.5 mln
Nasdaq Adv 1548 Dec 3121 Vol 4.2 bln

Industry Watch
Strong: Energy, Financials, Consumer Discretionary, Information Technology
Weak: Health Care, Consumer Staples, Utilities, Industrials

Moving the Market

-- Lack of conviction in front of diversified batch of Q1 earnings reports

-- Treasury yields, oil prices push higher

-- Technical resistance

Little change at the index level
18-Apr-22 16:15 ET
Dow -39.54 at 34411.69, Nasdaq -18.72 at 13332.35, S&P -0.90 at 4391.68

[BRIEFING.COM] The S&P 500 (unch) closed little changed on Monday in a session that lacked conviction. The Nasdaq Composite (-0.1%) and Dow Jones Industrial Average (-0.1%) both declined 0.1% while the small-cap Russell 2000 fell 0.7%.

Buying interest was restrained by the upwards pressure in interest rates and oil prices ($108.18, +1.24, +1.2%), technical resistance near the underside of the S&P 500's 50-day moving average (4417), and lingering growth concerns attributed to the Fed, China's COVID restrictions, and the Ukraine-Russia situation.

The defensive-oriented S&P 500 health care (-1.1%), consumer staples (-0.8%), utilities (-0.5%), and real estate (-0.3%) sectors were among today's laggards. Conversely, the energy sector (+1.5%) unsurprisingly outperformed given the higher oil prices.

The financials (+0.6%) and information technology (+0.3%) sectors provided key support with the latter benefiting from dip-buying activity in the semiconductor stocks. The Philadelphia Semiconductor Index rose 1.9%.

Separately, there might have been a wait-and-see mindset for the diversified batch of Q1 earnings reports this week. Today, the market heard from more banks.

Bank of America (BAC 38.85, +1.28, +3.4%) stood out with a 3% gain after beating EPS estimates and providing encouraging commentary about a strong recovery in spending trends. Charles Schwab (SCHW 74.94, -7.81, -9.4%) dropped 9% on disappointing results while BNY Mellon (BK 46.21, -1.08, -2.3%) set a 52-week low after reporting in-line results.

Shares of Twitter (TWTR 48.45, +3.37, +7.5%), meanwhile, jumped 7.5% as the company adopted a "poison pill" measure amid takeover pressure.

In the Treasury market, the 2-yr yield increased two basis points to 2.47%, and the 10-yr yield increased three basis points to 2.86% after flirting with 2.88% overnight. The U.S. Dollar Index increased 0.5% to 100.80.

Monday's economic data was limited to the NAHB Housing Market Index for April, which decreased two points to 77, as expected. Looking ahead, investors will receive Housing Starts and Building Permits for March on Tuesday.

Dow Jones Industrial Average -5.3% YTD
S&P 500 -7.9% YTD
Russell 2000 -11.4% YTD
Nasdaq Composite -14.8% YTD

Crude futures settle above $108 per barrel
18-Apr-22 15:25 ET
Dow -70.71 at 34380.52, Nasdaq -33.01 at 13318.06, S&P -6.97 at 4385.61

[BRIEFING.COM] The S&P 500 has slipped back into negative territory with a 0.2% decline on no specific news. The Russell 2000 underperforms with a 0.5% decline.

One last look at the sectors shows mixed results: health care (-1.3%), utilities (-0.8%), and real estate (-0.5%) are down the most, while energy (+1.4%), financials (+0.5%), and consumer discretionary (+0.3%) outperform in positive territory.

WTI crude futures settled higher by $1.24 (+1.2%) to $108.18/barrel.

[ReturntoSender]

Market Snapshot

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

Dow 34911.30 +499.61 (1.45%)
Nasdaq 13619.65 +287.30 (2.15%)
SP 500 4462.28 +70.60 (1.61%)
10-yr Note -28/32 2.937
NYSE Adv 2160 Dec 1041 Vol 856.3 mln
Nasdaq Adv 3072 Dec 1321 Vol 4.4 bln

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

Moving the Market

-- Stocks gain steam amid contrarian mindset

-- Treasury yields continue to push higher following better-than-expected housing starts/building permits data for March

-- Oil prices drop

Stocks rally even as rates continue to rise
19-Apr-22 16:15 ET
Dow +499.61 at 34911.30, Nasdaq +287.30 at 13619.65, S&P +70.60 at 4462.28

[BRIEFING.COM] The S&P 500 rose 1.6% on Tuesday in a relatively broad-based advance. The Dow Jones Industrial Average (+1.5%) kept pace with the benchmark index while the Nasdaq Composite (+2.2%) and Russell 2000 (+2.0%) outperformed with roughly 2% gains.

Ten of the 11 S&P 500 sectors closed higher with gains ranging from 0.6% (utilities) to 2.9% (consumer discretionary). The exception was the energy sector (-1.0%) amid pronounced weakness in oil ($102.07/bbl, -6.11, -5.7%) and natural gas ($7.17/MMBtu, -0.63, -8.0%) prices.

The broader gains helped the benchmark index close back above its 50-day moving average (4416) after a flat open.

The muted start transpired amid another increase in interest rates, lackluster reactions to earnings reports, and a view from St. Louis Fed President Bullard (FOMC voter) that the fed funds rate should be at 3.50% by the end of the year.

The fed-funds-sensitive 2-yr yield rose 11 basis points to 2.58% while the 10-yr yield rose five basis points to 2.91% after flirting with 1.93% in the wake of better-than-expected housing starts and building permits data for March. The U.S. Dollar Index increased 0.2% to 101.00.

The stock market had plenty of reasons to stay cautious, but the counterintuitive price action suggested the rally keyed off a contrarian mindset. To be fair, the lower oil prices likely helped, as did less-hawkish commentary from Chicago Fed President Evans and Atlanta Fed President Bostic, both of whom are not FOMC voters this year.

Shares of Johnson & Johnson (JNJ 183.08, +5.42, +3.1%) hit a fresh all-time high, putting the focus on the company's EPS beat instead of its below-consensus FY22 EPS guidance. Fellow Dow component Travelers (TRV 176.16, -9.06, -4.9%) fell 5% despite beating top and bottom-line estimates.

Separately, airline stocks extended their recent outperformance following the removal of the mask mandate for airline travel and public transportation. The U.S. Global Jets ETF (JETS 22.11, +0.60) rose 2.8% today.

Reviewing Tuesday's economic data:

Housing starts increased 0.3% month-over-month in March to a seasonally adjusted annual rate of 1.793 million units (Briefing.com consensus 1.750 million) while permits increased 0.4% month-over-month to a seasonally adjusted annual rate of 1.873 million.
The key takeaway from the report is that the upside was driven entirely by multi-unit activity. Starts for single-family homes and permits for single-family homes were down 1.7% and 4.8% month-over-month, respectively, reflecting the challenges builders are facing with supply chain issues, rising costs for land and labor, and the dent in homebuyer confidence and affordability that has stemmed from rising mortgage rates.

Looking ahead, investors will receive Existing Home Sales for March, the April Beige Book, and the weekly MBA Mortgage Applications Index on Wednesday.

Dow Jones Industrial Average -3.9% YTD
S&P 500 -6.4% YTD
Russell 2000 -9.6% YTD
Nasdaq Composite -13.0% YTD

Crude futures fall nearly 6.0%
19-Apr-22 15:30 ET
Dow +513.68 at 34925.37, Nasdaq +293.87 at 13626.22, S&P +73.79 at 4465.47

[BRIEFING.COM] The S&P 500 has pushed higher and is now up 1.7% on no specific news catalyst.

One last look at the S&P 500 sectors shows consumer discretionary (+3.0%), communication services (+2.2%), and real estate (+2.1%) up between 2-3% while the energy sector (-0.7%) continues to trade lower.

WTI crude futures settled sharply lower by $6.11 (-5.7%) to $102.07/barrel. Profit-taking pressure might have resulted from the IMF lowering its 2022 global growth outlooks for 2022 and 2023 to 3.6% in both years.

[ReturntoSender]

Market Snapshot

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

Dow 34792.76 -368.03 (-1.05%)
Nasdaq 13174.65 -278.41 (-2.07%)
SP 500 4393.65 -65.79 (-1.48%)
10-yr Note -5/32 2.904
NYSE Adv 594 Dec 2602 Vol 956.6 mln
Nasdaq Adv 1029 Dec 3330 Vol 5.1 bln

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

Moving the Market

-- S&P 500 unable to stay above 200-day moving average (4497) and falls below 50-day moving average (4413)

-- Pleasing earnings news from diverse batch of companies, including Tesla (TSLA)

-- Fed Chair Powell not ready to declare peak inflation and says Fed could move to tight policy after reaching a neutral rate, if necessary

-- Treasury yields push higher

Stocks fade early gains and close sharply lower
21-Apr-22 16:15 ET
Dow -368.03 at 34792.76, Nasdaq -278.41 at 13174.65, S&P -65.79 at 4393.65

[BRIEFING.COM] The S&P 500 fell 1.5% on Thursday, fading an early 1.2% gain, as technical factors, rising interest rates, and hawkish-sounding Fed commentary overshadowed a batch of pleasing earnings news.

The Nasdaq Composite (-2.1%), Dow Jones Industrial Average (-1.1%), and Russell 2000 (-2.3%) also coughed up early gains and closed sharply lower.

All 11 S&P 500 sectors closed lower in a steady decline with energy (-3.1%) and communication services (-2.4%) taking a brunt of the damage. The consumer staples sector (-0.1%) outperformed on a relative basis with a 0.1% decline.

Tesla (TSLA 1008.78, +31.58, +3.2%) was the main driver in early action, with shares rallying as much as 12% after the company topped earnings estimates and reaffirmed its multi-year growth expectations. Like the broader market, though, TSLA shares cooled off.

Investors seemed to first lose confidence as the S&P 500 couldn't stay above its 200-day moving average (4497) early in the day. The benchmark index ultimately fell below its 50-day moving average (4413) on a closing basis.

Risk sentiment was further pressured as the 10-yr yield flirted with 2.96%, and Fed Chair Powell said he wasn't ready to declare peak inflation, adding that the Fed could move to a tight policy after reaching a neutral rate, if necessary. On a related note, Chicago Fed President Evans (FOMC voter in 2023) plans to retire in early 2023.

The 10-yr yield did calm down a bit, settling eight basis points higher at 2.92%, while the 2-yr yield rose 12 basis points to 2.69%. The U.S. Dollar Index increased 0.2% to 100.60. WTI crude futures rose 1.6%, or $1.62, to $104.02/barrel.

Nevertheless, the upwards trend in rates kept a lid on the growth stocks. The streaming space, meanwhile, couldn't catch a break with an announcement from Warner Bros. Discovery (WBD 21.45, -1.56, -6.8%) that it will shut down CNN+ on April 30.

In other earnings news, AT&T (T 20.21, +0.78, +4.0%), Dow Inc. (DOW 69.51, +1.97, +2.9%), Nucor (NUE 175.59, +6.34, +3.8%), American Airlines (AAL 20.22, +0.74, +3.8%), United Airlines (UAL 50.85, +4.33, +9.3%), and Alaska Air (ALK 58.78, +0.09, +0.2%) each closed higher following their earnings reports.

Reviewing Thursday's economic data:

Initial jobless claims for the week ending April 16 decreased by 2,000 to 184,000 (Briefing.com consensus 195,000). Continuing jobless claims for the week ending April 9 decreased by 58,000 to 1.417 million, which is the lowest level since February 21, 1970.
The key takeaway from the report is that it covered the week in which the survey for the April employment report was conducted. The decidedly low level of initial claims should feed expectations for strong nonfarm payrolls growth in April.
The Philadelphia Fed Index for April decreased to 17.6 (Briefing.com consensus 21.0) from 27.4 in March.
The Conference Board's Leading Economic Index (LEI) increased 0.3% m/m in March (Briefing.com consensus 0.3%) following a revised 0.6% increase (from 0.3%) in February.

Looking ahead, investors will receive the preliminary IHS Markit Manufacturing and Services PMIs for April on Friday.

Dow Jones Industrial Average -4.3% YTD
S&P 500 -7.8% YTD
Russell 2000 -11.3% YTD
Nasdaq Composite -15.8% YTD

Crude futures settle on higher note
21-Apr-22 15:30 ET
Dow -333.49 at 34827.30, Nasdaq -269.44 at 13183.62, S&P -60.62 at 4398.82

[BRIEFING.COM] The S&P 500 is down 1.4%, and the Russell 2000 is down 2.5%.

One last look at the sector performances shows energy (-3.2%) and communication services (-2.4%) down between 2-3%, while the consumer staples sector (+0.1%) clings onto a slim gain.

WTI crude futures settled higher by $1.62 (+1.6%) to $104.02/barrel.

[ReturntoSender]

Market Snapshot

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

Dow 33811.40 -981.36 (-2.82%)
Nasdaq 12839.29 -335.36 (-2.55%)
SP 500 4271.77 -121.88 (-2.77%)
10-yr Note 0/32 2.912

NYSE Adv 487 Dec 2722 Vol 1.0 bln
Nasdaq Adv 1127 Dec 3098 Vol 4.4 bln


Industry Watch
Strong: None

Weak: Health Care, Materials, Financials, Communication Services


Moving the Market
-- Continuation of yesterday's broad-based retreat

-- Rate-hike angst fuels de-risking efforts

-- Underwhelming earnings news from American Express (AXP) and Verizon (VZ)





Ugly end to the week
22-Apr-22 16:15 ET

Dow -981.36 at 33811.40, Nasdaq -335.36 at 12839.29, S&P -121.88 at 4271.77
[BRIEFING.COM] The major indices dropped more than 2.5% on Friday in what was largely a continuation of yesterday's broad-based selling. The S&P 500 fell 2.8%, the Dow Jones Industrial Average fell 2.8%, the Nasdaq Composite fell 2.6%, and the Russell 2000 fell 2.6%.

All 11 S&P 500 sectors closed lower with losses ranging from 1.6% (consumer staples) to 3.7% (materials), and all 30 Dow components closed lower. Growth and value stocks fell together, as did mega-caps with micro-caps.

De-risking efforts persisted amid a weakening technical posture and rate-hike angst in the face of slower economic growth. The S&P 500 fell further below its descending 50-day moving average (4407).

Investors were reminded of slower growth prospects by the slippage in the preliminary IHS Markit Services PMI for April (to 54.7 from 58.0 in March) and a reduced 2022 growth forecast from Germany (to 2.2% from 3.6%).

The fed-funds-sensitive 2-yr yield increased three basis points to 2.72% while the growth-sensitive 10-yr yield decreased one basis point to 2.91% after hitting 2.97% Thursday evening. The U.S. Dollar Index rose 0.6% to 101.16. WTI crude futures fell 1.7%, or $1.79, to $102.00/bbl.

In addition, investors were left underwhelmed by the latest earnings reports from the likes of Verizon (VZ 51.91, -3.10, -5.6%), American Express (AXP 180.54, -5.20, -2.8%), HCA Healthcare (HCA 210.64, -58.80, -21.8%), and Intuitive Surgical (ISRG 252.34, -42.23, -14.3%).

Three earnings standouts, to shed light on some positives, included Kimberly-Clark (KMB 138.51, +10.41, +8.1%), Schlumberger (SLB 41.65, +1.00, +2.5%), and SVB Financial Group (SIVB 541.04, +37.91, +7.5%).

For what it's worth, Cleveland Fed President Mester (FOMC voter) told CNBC that the Fed does not need to raise rates by 75 basis points and that she prefers to get rates to 2.50% by the end of the year.

Friday's economic data was limited to the preliminary IHS Markit Manufacturing and Services PMIs for April. The manufacturing reading increased to 59.7 from 58.8 in March while the services reading decreased to 54.7 from 58.0 in March.

There is no economic data scheduled for Monday.

Dow Jones Industrial Average -7.0% YTD
S&P 500 -10.4% YTD
Russell 2000 -13.6% YTD
Nasdaq Composite -17.9% YTD




Crude futures settle lower
22-Apr-22 15:30 ET

Dow -737.70 at 34055.06, Nasdaq -262.59 at 12912.06, S&P -93.57 at 4300.08
[BRIEFING.COM] The S&P 500 is currently down 2.2%, which would also be its decline for the week.

One last look at the sectors shows materials (-3.4%), health care (-3.1%), and communication services (-2.9%) sectors each down by around 3%, while the utilities (-0.9%) and consumer staples (-0.9%) sectors trade lower by around 1%.

WTI crude futures settled lower by $1.79 (-1.7%) to $102.00/barrel.

[ReturntoSender]

Market Snapshot

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

Dow 32977.21 -939.18 (-2.77%)
Nasdaq 12334.63 -536.89 (-4.17%)
SP 500 4131.93 -155.57 (-3.63%)
10-yr Note -7/32 2.908
NYSE Adv 635 Dec 2457 Vol 1.4 bln
Nasdaq Adv 1301 Dec 3145 Vol 4.7 bln

Industry Watch
Strong: None
Weak: Consumer Discretionary, Real Estate, Information Technology

Moving the Market

-- Stocks sell off to close out disappointing month

-- Amazon.com (AMZN) drops 14% on disappointing guidance

-- Apple (AAPL) warns of higher supply chain costs

-- Lingering concerns about the Fed's tightening plans amid persistent inflation pressures and slower growth prospects

Stocks sell off to close out a disappointing month
29-Apr-22 16:15 ET
Dow -939.18 at 32977.21, Nasdaq -536.89 at 12334.63, S&P -155.57 at 4131.93

[BRIEFING.COM] The S&P 500 dropped 3.6% on Friday in an orderly retreat fueled by disappointing earnings news and sticky inflation pressures. The Dow Jones Industrial Average (-2.8%) and Russell 2000 (-2.9%) both declined 2.8% while the Nasdaq Composite underperformed with a 4.2% decline.

The losses were widespread: all 11 S&P 500 sectors closed lower with losses ranging from 2.0% (materials) to 5.9% (consumer discretionary); 28 of the 30 Dow components closed lower; and declining issues outnumbered advancing issues by a 4:1 margin at the NYSE and a 5:2 margin at the Nasdaq.

Amazon.com (AMZN 2485.63, -406.30, -14.1%) was the biggest drag on the market, falling 14% on downside revenue and operating income guidance for the second quarter. The disappointing guidance reminded investors about the slower growth prospects in an inflationary environment.

Pricing pressures were further illustrated by Apple's (AAPL 157.65, -5.99, -3.7%) warning of higher supply chain costs for fiscal Q3, the 6.6% year-over-year increase in the PCE Price Index for March, and the 1.4% increase in the Q1 Employment Cost Index (Briefing.com consensus 1.1%). Note, Apple topped earnings expectations.

Intel (INTC 43.59, -3.25, -6.9%), Chevron (CVX 156.67, -5.12, -3.2%), and Exxon Mobil (XOM 85.15, -2.05, -2.4%) also fell sharply following their earnings reports, while Honeywell (HON 193.51, +3.59, +1.9%) closed higher after providing pleasing earnings results and guidance.

More relevantly, the inflation data reinforced expectations for the Fed to shift to a tighter policy stance with the intent to rein in inflation pressures. The CME FedWatch Tool was pricing in an 88.4% probability for a 75-basis-point rate hike in June in addition to a 50-basis-point hike next week.

These expectations were also evident in the Treasury market, where the 2-yr yield increased five basis points to 2.69% and the 10-yr yield increased two basis points to 2.89%. The U.S. Dollar Index decreased 0.4% to 103.20. WTI crude futures decreased 0.3%, or $0.28, to $105.03/bbl.

Separately, Elon Musk said he had no plans to sell more shares of Tesla (TSLA 870.76, -6.75, -0.8%) after selling over $8 billion worth of stock this week.

Reviewing Friday's economic data:

Personal income increased 0.5% month-over-month (Briefing.com consensus 0.4%) following an upwardly revised 0.7% increase (from 0.5%) in February. Personal spending jumped 1.1% month-over-month (Briefing.com consensus 0.6%) following an upwardly revised 0.6% increase (from 0.2%) in February. The PCE Price Index surged 0.9% month-over-month, which took the year-over-year rate to 6.6% from 6.3% in February. The core PCE Price Index, which excludes food and energy, was up a more modest 0.3%, as expected, leaving the year-over-year increase at 5.2% versus 5.3% in February.
The key takeaway from the report is that real disposable personal income declined 0.4% in March, which helps explain why the personal savings rate, as a percentage of disposable personal income, dipped to 6.2% from 6.8%. In other words, consumers were spending out of savings presumably to maintain their standard of living in the face of higher costs.
The Q1 Employment Cost Index increased 1.4% (Briefing.com consensus 1.1%) on a seasonally adjusted basis for the three-month period ending in March. Wages and salaries, which account for about 70% of compensation costs, increased 1.2% and benefit costs, which make up the remainder of compensation costs, increased 1.8% for civilian workers.
The key takeaway from the report is that wages and salaries for workers were up from the same period a year ago, yet those gains have increasingly been subsumed by inflation, evidenced by the 7.0% increase in the PCE Price Index seen in the advance Q1 GDP report.
The final University of Michigan Index of Consumer Sentiment for April dropped to 65.2 (Briefing.com consensus 65.7) from the preliminary reading of 65.7. The final reading for March was 59.4. The April uptick was nice to see, although the April reading is one of the lowest readings over the last 10 years.
The key takeaway from the report is that the improvement was driven largely by an expectation that gas price increases will moderate significantly, but even so, there wasn't much improvement in the overall sentiment index, which is trolling its worst levels in the past decade.
The Chicago PMI for April decreased to 58.5 (Briefing.com consensus 62.0) from 62.9 in March.

Looking ahead, investors will receive the ISM Manufacturing Index for April and Construction Spending for March on Monday.

Dow Jones Industrial Average -9.3% YTD
S&P 500 -13.3% YTD
Russell 2000 -17.0% YTD
Nasdaq Composite -21.2% YTD

Crude futures settle lower but remain elevated
29-Apr-22 15:30 ET
Dow -750.00 at 33166.39, Nasdaq -454.51 at 12417.01, S&P -134.18 at 4153.32

[BRIEFING.COM] The S&P 500 is now down a steep 3.1% amid a dearth of buying interest.

One last look at the S&P 500 sectors shows ten sectors down at least 2.0%, with consumer discretionary down 5.5%. The materials sector is down the least with a current 1.3% decline.

WTI crude futures settled lower by $0.28 (-0.3%) to $105.03/barrel.

[ReturntoSender]

Market Snapshot

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

Dow 33061.50 +84.29 (0.26%)
Nasdaq 12536.01 +201.38 (1.63%)
SP 500 4155.38 +23.45 (0.57%)
10-yr Note -27/32 2.997
NYSE Adv 1319 Dec 1743 Vol 1.1 bln
Nasdaq Adv 2306 Dec 1977 Vol 4.8 bln

Industry Watch
Strong: Communication Services, Information Technology, Consumer Discretionary, Energy
Weak: Real Estate, Consumer Staples, Utilities, Health Care, Materials

Moving the Market

-- Major indices recoup intraday declines and close higher

-- 10-yr yield hits 3.00% for first time since December 2018

-- April ISM Manufacturing Index misses expectations

Major indices reclaim intraday losses and some
02-May-22 16:20 ET
Dow +84.29 at 33061.50, Nasdaq +201.38 at 12536.01, S&P +23.45 at 4155.38

[BRIEFING.COM] The S&P 500 advanced 0.6% on Monday, overcoming a late 1.7% decline, even as the 10-yr yield reached 3.00% for the first time since December 2018. The Nasdaq Composite gained 1.6%, the Russell 2000 gained 1.0%, and the Dow Jones Industrial Average gained 0.3%.

The first trading day of the month had picked up where April left off: the path of least resistance remained to the downside as investors fretted over the negative price action, rising rates, growth prospects, and the Fed's policy decision this week.

The market, however, turned it around in the last 75 minutes of action without a specific catalyst to account for the move. Sentiment might have simply gotten too bearish, or the buying opportunities might have been too good, with the S&P 500 falling to its lowest level since last May.

A bargain-hunting mindset lifted the S&P 500 information technology (+1.6%), communication services (+2.4%), and consumer discretionary (+1.4%) sectors to the top of the standings, accompanied by the high-flying energy sector (+1.4%).

The real estate (-2.6%), consumer staples (-1.3%), utilities (-1.0%), health care (-0.7%), and materials (-0.3%) sectors were the weakest performers.

The growth stocks performed fairly well despite the rise in the 10-yr yield, which did settle at 3.00% (up 11 basis points). More surprisingly, the Treasury yield curve steepened (2-yr yield rose 4 bps to 2.73%) despite relatively disappointing manufacturing data out of the U.S. and China.

Briefly, the April ISM Manufacturing Index decreased to 55.4% (Briefing.com consensus 57.9%) from 57.1% in March. China's Manufacturing PMI (47.4) fell deeper into contraction territory amid the COVID-19 outbreaks. On a related note, Beijing reportedly tightened coronavirus restrictions on Sunday.

Apple (AAPL 157.96, +0.31, +0.2%) and Amazon.com (AMZN 2490.00, +4.37, +0.2%), however, both increased just 0.2%, tempering the 1.3% gain in the Vanguard Mega Cap Growth ETF (MGK 206.88, +2.59, +1.3%). Recall, both stocks sold off following their earnings reports last week.

In related news, Apple received a notice from the European Commission of its preliminary view that the company abused its dominant position in markets for mobile wallets on iOS devices. Amazon was removed from the Best Ideas List at Wedbush.

WTI crude futures increased 0.1%, or $0.08, to $105.11/bbl. The U.S. Dollar Index increased 0.7% to 103.65.

Reviewing Monday's economic data:

The April ISM Manufacturing Index decreased to 55.4% (Briefing.com consensus 57.9%) from 57.1% in March. A number above 50.0% is indicative of expansion. April marked the 23rd consecutive month of expansion in the manufacturing sector, although the April reading is the lowest since July 2020.
The key takeaway from the report is that manufacturing activity is being held back by COVID issues abroad, ongoing supply chain problems, inflation pressures, and labor constraints that have made it challenging to satisfy demand and which have also detracted from demand.
Total construction spending increased 0.1% month-over-month in March (Briefing.com consensus 0.8%) following a 0.5% increase in February. Total private construction increased 0.2% month-over-month while total public construction decreased 0.2%. On a year-over-year basis, total construction spending was up 11.7%.
The key takeaway from the report is that, other than residential spending, there wasn't much strength in spending activity in either the private or public sectors.
The final IHS Markit Manufacturing PMI for April decreased to 59.2 from 59.7 in the preliminary reading.

Looking ahead, investors will receive Factory Orders for March and the JOLTs - Job Openings report for March on Tuesday.

Dow Jones Industrial Average -9.0% YTD
S&P 500 -12.8% YTD
Russell 2000 -16.1% YTD
Nasdaq Composite -19.9% YTD

[ReturntoSender]

Market Snapshot

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

Dow 32899.37 -98.60 (-0.30%)
Nasdaq 12144.66 -173.03 (-1.40%)
SP 500 4123.34 -23.53 (-0.57%)
10-yr Note -11/32 3.123
NYSE Adv 922 Dec 2116 Vol 1.08 bln
Nasdaq Adv 1118 Dec 3101 Vol 5.25 bln

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

Moving the Market

Stocks fight to stay above Monday's lows

April jobs report beats but labor force participation rate falls

Crude oil keeps rising

Volatile Finish to First Week of May
06-May-22 16:15 ET
Dow -98.60 at 32899.37, Nasdaq -173.03 at 12144.66, S&P -23.53 at 4123.34

[BRIEFING.COM] The stock market finished the first week of May on an underwhelming note with the Nasdaq (-1.4%) leading to the downside while the S&P 500 fell 0.6%. The two indices lost a respective 1.5% and 0.2% for the week. Small caps fared worse than the major averages, as the Russell fell 1.7%, giving up 1.3% for the week.

The market followed Thursday's faceplant with an opening stumble that pressured the S&P 500 back to its low from Monday. The early selling was paced by influential sectors like technology and consumer discretionary, but the same two groups contributed to a rebound that briefly lifted the S&P 500 into positive territory in the late morning. Afternoon trade saw more selling, but the S&P 500 was able to stay above its morning low.

The April jobs report was released ahead of the opening bell, showing stronger than expected headline payroll growth, which masked a decrease in the labor force participation rate. That rate dipped to 62.2% from 62.4% and is now more than a point below its pre-pandemic level.

Nine sectors finished the day in negative territory with materials (-1.4%), consumer discretionary (-1.3%), communication services (-1.3%) finishing at the bottom of the leaderboard. The top-weighted technology sector (-0.8%) also ended among the laggards after a volatile session while energy (+2.9%) and utilities (+0.8%) outperformed throughout the day.

The consumer discretionary sector was one of the worst performers of the week amid growing concerns about consumer spending in the face of high inflation. The sector lost 3.4% this week, as top component Amazon (AMZN 2295.45, -32.69, -1.4%) sank to a two-year low while Tesla (TSLA 865.65, -7.63, -0.9%) fought to remain near its 200-day moving average (910.42).

In the technology sector, Apple (AAPL 157.28, +0.74, +0.5%) did yeomen's work, preventing the sector from finishing on an eleven-month low that was notched in morning trade. However, while the top tech component finished higher, it failed to reclaim its 200-day moving average (159.65), which has served as an area of congestion for the past two weeks.

On the upside, the defensively-oriented utilities sector benefited from volatility in the broader market, extending this week's gain to 1.2%, while energy also outperformed throughout the day, finishing on its high. The energy sector's strength was underpinned by continued strength in crude oil, which climbed $1.80, or 1.7%, to $110.00/bbl, gaining $4.97, or 4.7%, for the week. The energy sector, meanwhile, jumped 10.2% this week, extending its year-to-date advance to 49.2%.

Treasuries ended the day on a mixed note with longer tenors finishing lower while the 2-yr note climbed. The 10-yr yield rose six basis points to 3.12%, hitting a fresh high for the year while the 2-yr yield fell five basis points to 2.67%.

Today's economic data included the April jobs report and March Consumer Credit:

April nonfarm payrolls increased by 428,000 (Briefing.com consensus 395,000). The 3-month average for total nonfarm payrolls decreased to 523,000 from 549,000. March nonfarm payrolls revised to 428,000 from 431,000. February nonfarm payrolls revised to 714,000 from 750,000.
April private sector payrolls increased by 406,000 (Briefing.com consensus 390,000). March private sector payrolls revised to 424,000 from 426,000. February private sector payrolls revised to 704,000 from 739,000.
April unemployment rate was 3.6% (Briefing.com consensus 3.6%), versus 3.6% in March. Persons unemployed for 27 weeks or more accounted for 25.2% of the unemployed versus 23.9% in March. The U6 unemployment rate, which accounts for unemployed and underemployed workers, was 7.0%, versus 6.9% in March.
April average hourly earnings were up 0.3% (Briefing.com consensus 0.4%) versus an upwardly revised 0.5% increase (from 0.4%) in March. Over the last 12 months, average hourly earnings have risen 5.5%, versus 5.6% for the 12 months ending in March.
The average workweek in April was 34.6 hours (Briefing.com consensus 34.7), versus 34.6 hours in March. Manufacturing workweek fell by 0.2 hours to 40.5 hours. Factory overtime was unchanged at 3.4 hours.
The labor force participation rate dipped to 62.2% from 62.4% in March.
The employment-population ratio decreased to 60.0% from 60.1% in March.
Consumer credit increased by $52.4 billion in March (Briefing.com consensus $25.0 billion) while the February increase was revised down to $37.7 bln from $41.8 bln.

Monday's economic data will be limited to the 10:00 ET release of the Wholesale Inventories report for March (prior 2.5%).

Nasdaq Composite -22.4% YTD
Russell 2000 -18.1% YTD
S&P 500 -13.5% YTD
Dow Jones Industrial Average -9.5% YTD

Energy Remains Ahead
06-May-22 15:25 ET
Dow -398.33 at 32599.73, Nasdaq -277.46 at 12040.23, S&P -59.91 at 4086.98

[BRIEFING.COM] The S&P 500 trades lower by 1.5% with 30 minutes remaining in the session. The index is currently down 1.0% for the week, widening its Q2 loss to 9.7%.

Nine sectors trade in negative territory going into the home stretch, with seven groups down at least 1.0%. Technology (-1.7%) is back among the laggards after a brief intraday show of strength while consumer discretionary (-2.2%), real estate (-2.1%), and materials (-2.0%) sit at the bottom of today's leaderboard.

On the upside, the energy sector (+1.8%) is hanging onto a solid gain, looking to add 9.0% for the week. Today's continuation of the sector's strength has been supported by crude oil, which climbed $1.80, or 1.7%, to $110.00/bbl, gaining $4.97, or 4.7%, for the week.
March Consumer Credit Growth Exceeds Expectations
06-May-22 15:05 ET
Dow -347.72 at 32650.34, Nasdaq -240.89 at 12076.80, S&P -50.50 at 4096.39

[BRIEFING.COM] The S&P 500 trades lower by 1.2% while the Nasdaq (-2.0%) remains behind with one hour left in today's session.

Just reported, consumer credit increased by $52.4 billion in March (Briefing.com consensus $25.0 billion) while the February increase was revised down to $37.7 bln from $41.8 bln
Earnings movers dominate S&P 500 action on Friday
06-May-22 14:30 ET
Dow -367.63 at 32630.43, Nasdaq -216.49 at 12101.20, S&P -50.48 at 4096.41

[BRIEFING.COM] The major averages have drifted lower in the last half hour, the S&P 500 (-1.22%) now in second place.

S&P 500 constituents Under Armour (UAA 10.86, -3.43, -24.00%), Illumina (ILMN 241.99, -49.73, -17.05%), and DISH Network (DISH 22.94, -4.54, -16.52%) dot the bottom of the index all following earnings.

Meanwhile, Texas-based medical device firm McKesson (MCK 331.06, +15.83, +5.02%) is one of today's better performers following earnings.
Gold registers third weekly loss in a row
06-May-22 14:00 ET
Dow -269.31 at 32728.75, Nasdaq -172.06 at 12145.63, S&P -36.35 at 4110.54

[BRIEFING.COM] The major averages have slid to afternoon lows in recent action, the tech-heavy Nasdaq Composite (-1.40%) still holding the worst declines.

Gold futures settled $7.10 higher (+0.4%) to $1,882.80/oz, not enough to pull the yellow metal out of another weekly decline.

Meanwhile, the U.S. Dollar Index is down about -0.2% to $103.53.

[ReturntoSender]

Market Snapshot

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

Dow 31730.30 -103.81 (-0.33%)
Nasdaq 11370.96 +6.73 (0.06%)
SP 500 3930.08 -5.10 (-0.13%)
10-yr Note +13/32 2.846
NYSE Adv 1601 Dec 1508 Vol 1.3 bln
Nasdaq Adv 2322 Dec 1962 Vol 6.6 bln

Industry Watch
Strong: Health Care, Real Estate, Consumer Discretionary, Communication Services, Industrials
Weak: Information Technology, Financials, Utilities

Moving the Market

-- Volatile conditions persist as do growth concerns, but session ends on better note after S&P 500 flirts with bear market territory

-- Russia threatens retaliation if Finland joins NATO

-- PPI data moderates on year-over-year basis, Fed Bullard says no need for 75-bps hike right now, Treasury Secretary Yellen does not see stable coin declines causing systemic issues

-- Short-covering activity

Volatile session ends on better note
12-May-22 16:20 ET
Dow -103.81 at 31730.30, Nasdaq +6.73 at 11370.96, S&P -5.10 at 3930.08

[BRIEFING.COM] The S&P 500 declined 0.1% on Thursday, as risk sentiment remained pressured by growth concerns, ongoing selling in large-cap technology stocks, and heightened volatility. The Dow Jones Industrial Average lost 0.3%, while the Nasdaq Composite gained 0.1% and Russell 2000 gained 1.2%.

The price action was a big focal point today, with the S&P 500 being up as much as 0.8% in the morning and then down as much as 1.9%, which took the benchmark index within a few points of bear market territory. The latter is often defined as a decline of 20.0% or greater from a recent high.

Flirting with bear market territory might have triggered a mechanically-oriented bounce that lifted six of the 11 S&P 500 sectors into positive territory by the close. The health care (+0.9%), consumer discretionary (+0.8%), and real estate (+0.7%) sectors outperformed in positive territory.

The information technology sector (-1.1%), however, was a heavy drag on the market and for sentiment, too, considering Apple (AAPL 142.56, -3.94, -2.7%) continued to struggle after losing its spot as the largest company in the world by market cap yesterday. The utilities sector (-1.2%) was the weakest link.

Growth concerns, meanwhile, lingered as Russia threatened retaliation if Finland joins NATO as planned, the IEA lowered its global growth demand forecast, and Walt Disney (DIS 104.31, -0.90, -0.9%) warned that Disney+ subscriber growth is apt to slow down in the second half of the year. On a related note, Disney missed top and bottom-line estimates.

The Treasury market continued to signal growth concerns via another drop in rates, which was also a byproduct of some safe-haven positioning amid the market volatility and peak inflation expectations following the Producer Price Index (PPI) for April. The PPI report featured a better-than-feared core PPI reading along with a moderation in the year-over-year increases.

The 2-yr yield fell 13 basis points to 2.51%, and the 10-yr yield fell ten basis points to 2.82% (recall, it hit 3.20% early this week). The U.S. Dollar Index remained strong in these uncertain times, rising 0.9% to 104.80 -- setting a fresh 20-year high. WTI crude futures rose 1.2%, or $1.26, to $106.40/bbl despite the IEA's reduced forecast.

As for the data, the Producer Price Index for final demand increased 0.5% m/m, as expected, while the index for final demand excluding food and energy, increased just 0.4% (Briefing.com consensus 0.6%). On a year-over-year basis, they were up 11.0% (versus 11.5% in March) and 8.8% (versus 9.5% in March), respectively.

Looking at some positive news, St. Louis Fed President Bullard (FOMC) and San Francisco Fed President Daly (non-voter) said they prefer 50-bps rate hikes instead of 75-bps, and Treasury Secretary Yellen said she doesn't think the huge losses in stable coins will cause systemic issues for the financial system. On a related note, Fed Chair Powell was confirmed by the Senate for a second term.

Separately, the session was filled with short-covering activity, which was notably evident in the sharp gains in Bumble (BMBL 22.36, +4.73, +26.8%) and Rivian (RIVN 24.30, +3.70, +18.0%) following their positive earnings reports, as well as the surge in Carvana (CVNA 37.40, +7.40, +24.7%) despite being downgraded to Hold from Buy at Stifel.

Reviewing Thursday's economic data:

The Producer Price Index for final demand increased 0.5% month-over-month in April, as expected, following an upwardly revised 1.6% increase (from 1.4%) in March. Excluding food and energy, the index for final demand jumped 0.4% (Briefing.com consensus 0.6%) following an upwardly revised 1.2% increase (from 1.0%) in March. There was a moderation in the year-over-year growth rates. The index for final demand was up 11.0%, versus 11.5% in March, and the index for final demand, excluding food and energy, was up 8.8%, versus 9.5% in March.
The key takeaway from the report is that there was some moderation in the year-over-year changes, but even so, inflation rates for producers remain at intolerably high levels that will pressure profit margins if not passed along to customers.
Initial jobless claims for the week ending May 7 increased by 1,000 to 203,000 (Briefing.com consensus 191,000). Continuing claims for the week ending April 30 decreased by 44,000 to 1.343 million. That is the lowest level since January 3, 1970.
The key takeaway from the report is that jobless claims continue to run near historically low levels that are consistent with a tight labor market that can continue to create wage-based inflation pressures.

Looking ahead, investors will receive Import and Export Prices for April and the preliminary University of Michigan Index of Consumer Sentiment for May on Friday.

Dow Jones Industrial Average -12.7 YTD
S&P 500 -17.5% YTD
Russell 2000 -22.5% YTD
Nasdaq Composite -27.3% YTD

Volatility continues into the close
12-May-22 15:30 ET
Dow -316.89 at 31517.22, Nasdaq -56.65 at 11307.58, S&P -31.07 at 3904.11

[BRIEFING.COM] The S&P 500 is down 0.8% heading into the close.

All 11 sectors are down, with information technology (-2.0%) and financials (-1.6%) leading the pack. Notably dragging down the technology sector is Apple (AAPL 141.03, -5.47, -3.7%) with a 4% decline.

Crude oil futures rose $1.26 (+1.2%) to $106.40/barrel despite the IEA lowering its global growth oil demand forecast.
S&P 500 flirts with bear market territory
12-May-22 15:00 ET
Dow -527.61 at 31306.50, Nasdaq -190.75 at 11173.48, S&P -64.09 at 3871.09

[BRIEFING.COM] The S&P 500 is trading near session lows with a 1.7% decline as there remains a lack of confidence regarding earnings prospects and the ability for the market to turn itself around.

Strikingly, the benchmark index came within a couple points of entering bear market territory, which is often defined as a drawdown of 20.0% or greater from a recent high. The S&P 500 was briefly down 19.9% from its all time-high earlier this afternoon. This is a level worth watching into the close.

Looking ahead, Affirm (AFRM 17.31, +2.67, +18.3%), FIGS (FIGS 12.03, -0.31, -2.5%), and Poshmark (POSH 9.57, +0.25, +2.7%) are some story stocks that will report earnings after the close.
Synchrony underperforms after Wolfe downgrade, Tapestry outperforms following earnings/buyback news
12-May-22 14:25 ET
Dow -500.44 at 31333.67, Nasdaq -185.98 at 11178.25, S&P -62.63 at 3872.55

[BRIEFING.COM] The S&P 500 (-1.59%) is narrowly in second place at this point on Thursday, holding just above session lows.

S&P 500 constituents Synchrony Financial (SYF 32.44, -2.89, -8.18%), AmerisourceBergen (ABC 149.93, -11.37, -7.05%), and WestRock (WRK 47.07, -3.19, -6.35%) dot the bottom of the standings. This morning Wolfe Research downgraded SYF to Underperform citing sensitivity to the credit card group amid likelihood of a recession, while ABC management commented on debt repayment plans as well as a possible share repurchase resumption, and WRK held an Investor Day this morning.

Meanwhile, Tapestry (TPR 30.30, +3.78, +14.25%) is today's best performer following earnings and a new buyback program.
Gold slips on Thursday amid rising dollar
12-May-22 14:00 ET
Dow -448.64 at 31385.47, Nasdaq -178.53 at 11185.70, S&P -55.74 at 3879.44

[BRIEFING.COM] The major averages are at or near session lows in recent trading, the tech-heavy Nasdaq Composite (-1.57%) now at the bottom of the standings.

Gold futures settled $29.10 lower (-1.6%) to $1,824.60/oz, pressured by a decent rise in the dollar.

Meanwhile, the U.S. Dollar Index adds about +1% to $104.88.

[ReturntoSender]

Market Snapshot

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

Dow 31261.92 +8.77 (0.03%)
Nasdaq 11354.61 -33.88 (-0.30%)
SP 500 3901.37 +0.57 (0.01%)
10-yr Note +5/32 2.789
NYSE Adv 1436 Dec 1644 Vol 1.19 bln
Nasdaq Adv 1991 Dec 2122 Vol 5.4 bln

Industry Watch
Strong: Real Estate, Health Care, Energy, Utilities, Consumer Staples
Weak: Consumer Discretionary, Industrials, Materials, Communication Services

Moving the Market

-- Market ends on a high note after S&P 500 briefly entered bear market territory

-- Ross Stores (ROST) sinks on disappointing earnings results and guidance, Deere (DE) and Applied Materials (AMAT) highlight supply chain issues

-- Underlying growth concerns

S&P 500 digs itself out of bear market territory
20-May-22 16:25 ET
Dow +8.77 at 31261.92, Nasdaq -33.88 at 11354.61, S&P +0.57 at 3901.37

[BRIEFING.COM] The S&P 500 (+0.01%) closed fractionally higher on Friday, successfully digging itself out of bear market territory from earlier in the session, which is typically defined as a 20% decline from a recent high. The Dow Jones Industrial Average (+0.03%), Nasdaq Composite (-0.3%), and Russell 2000 (-0.2%) also closed on a better note.

Early on, risk sentiment was pressured by a failed rebound effort (the S&P 500 was down 3.4% from its intraday high to its intraday low), and by growth concerns stemming from persistent inflation and supply chain issues. The early gains were largely sentiment-driven amid a belief that the market was overdue for a bounce and news that the People's Bank of China cut its 5-year prime loan rate by 15 basis points to 4.45%.

All 11 S&P 500 sectors were trading lower, but a nice rebound transpired in the last hour of action with no specific news to account for the rally. Six of the 11 S&P 500 sectors closed in positive territory, including health care (+1.3%) and real estate (+1.2%) with gains over 1.0%.

The S&P 500 consumer discretionary sector (-1.5%), however, succumbed to continued weakness in retail stocks after Ross Stores (ROST 71.87, -20.83, -22.5%) provided disappointing earnings results and guidance. Ross was the latest retailer to highlight rising cost pressures, raising concerns about slower earnings growth and the durability of the consumer in this high-cost environment.

Shares of Ross dropped 22.5%, versus a 2.2% decline for the SPDR S&P Retail ETF (XRT 61.33, -1.36, -2.2%).

Deere (DE 313.31, -51.31, -14.1%) and Applied Materials (AMAT 106.46, -4.28, -3.9%), two other cyclical companies, also struggled after highlighting supply chain issues in their earnings reports. Deere missed revenue estimates and weighed heavily on the industrials sector (-1.1%) while Applied Materials missed earnings expectations and issued downside quarterly guidance.

Some curve-flattening activity in the Treasury market and lower copper prices ($4.27/lb, -0.02, -0.5%) corroborated the underlying growth concerns. The 2-yr yield fell three basis points to 2.58%, and the 10-yr yield fell seven basis points to 2.79%. The U.S. Dollar Index increased 0.3% to 103.10. WTI crude futures settled above $110.00 per barrel ($110.05, +0.14, +0.1%).

Investors did not receive any economic data on Friday. Looking ahead, investors will receive New Home Sales for April and the preliminary IHS Markit Manufacturing and Services PMIs for May on Tuesday.

Dow Jones Industrial Average -14.0% YTD
S&P 500 -18.1% YTD
Russell 2000 -21.0% YTD
Nasdaq Composite -27.4% YTD

Sectors mostly down going into the close
20-May-22 15:30 ET
Dow -403.05 at 30850.10, Nasdaq -249.16 at 11139.33, S&P -58.38 at 3842.42

[BRIEFING.COM] Heading into the close, the S&P 500 is down by 1.6%. The Russell 2000 is down by 1.9%.

Nine out of 11 sectors are down with four sectors down by nearly 2%. The consumer discretionary (-3.0%), industrials (-2.2%), information technology (-1.7%), and communication services (-1.6%) are each suffering big losses in the last hour. Notably, Tesla (TSLA 644.21, -65.75, -9.3%) is down almost 10%.

The 10-yr Treasury yield settled lower by seven basis points to 2.79%.

Crude oil futures settled up by $0.14 (+0.1%) to $110.05/barrel.
Fed President Bullard reiterates 50 bps hike
20-May-22 14:55 ET
Dow -414.03 at 30839.12, Nasdaq -264.34 at 11124.15, S&P -60.05 at 3840.75

[BRIEFING.COM] All major indices are seeing losses today amid renewed inflationary concerns. The S&P 500 is down by 1.7%, the Nasdaq is down 2.4%, and the Dow Jones Industrial Average is down 1.4%.

The St. Louis Fed President, James Bullard (voting FOMC member), reiterated during a Fox Business interview today that the Fed will be sticking to its 50 basis point rate hike for now and that the fed funds rate should be at 3.5% by the end of the year. He also said that he does not think there will be a recession this year or next year.

His comments also mentioned that inflation is very tough on low-income people. This is being shown today by the extreme downturn that low-cost retailer Ross Stores (ROST 70.51, -22.20, -23.9%) experienced, which is down by 24% and hit a 52-week low following its earnings report.
Ross and Deere are the worst performers in S&P 500
20-May-22 14:35 ET
Dow -526.50 at 30726.65, Nasdaq -318.50 at 11069.99, S&P -80.93 at 3819.87

[BRIEFING.COM] The major indices are trading near session lows in a disappointing session. The S&P 500 is down 1.8% amid a dearth of buying interest.

An inside look at the benchmark index shows Ross Stores (ROST 70.00, -22.70, -24.5%) and Deere (DE 309.48, -54.94, -15.1%) as the two worst-performing stocks following their earnings reports.

Conversely, V.F. Corp (VFC 46.38, +1.76, +3.9%), American Tower (AMT 241.59, +8.25, +3.5%), and Eli Lilly (LLY 294.21, +7.98, +2.8%) are sporting solid gains.
Gold settles higher
20-May-22 14:05 ET
Dow -423.72 at 30829.43, Nasdaq -252.07 at 11136.42, S&P -62.84 at 3837.96

[BRIEFING.COM] The S&P 500 continues to trade in bear market territory with a 1.6% decline.

Looking at precious metals, gold futures settled higher by $0.70 (+0.04%) at $1,840.40/ozt while silver futures settled lower by $0.33 (-1.5%) at $21.62/ozt.

The U.S. Dollar Index currently trades higher by 0.4% to 103.19.

[ReturntoSender]

Market Snapshot

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

Dow 31880.26 +618.34 (1.98%)
Nasdaq 11535.27 +180.66 (1.59%)
SP 500 3973.76 +72.39 (1.86%)
10-yr Note
NYSE Adv 2209 Dec 1099 Vol 971 mln
Nasdaq Adv 2684 Dec 1944 Vol 4.5 bln

Industry Watch
Strong: Financials, Materials, Industrials, Consumer Staples, Energy, Information Technology, Utilities
Weak: Consumer Discretionary

Moving the Market

--Carryover momentum from late Friday rebound effort that pulled S&P 500 out of bear market territory

--M&A reports

--Broad-based participation

--Financials strong after JPM raises net interest income outlook

Closing Summary
23-May-22 16:15 ET
Dow +618.34 at 31880.26, Nasdaq +180.66 at 11535.27, S&P +72.39 at 3973.76

[BRIEFING.COM] There were no Monday blues for the stock market. Instead, stock monitors were generally awash in green figures as market participants succeeded in maintaining the momentum of Friday's late rebound effort.

JPMorgan Chase (JPM 124.58, +7.28, +6.2%) raising its net interest income outlook, reports that Broadcom (AVGO 526.36, -16.83, -3.1%) is in talks to acquire VMWare (VMW 119.90, +24.19, +25.3%) in a cash-and-stock deal, and an acknowledgment by President Biden that he is considering lifting some Chinese tariffs to help ease inflation pressures played a supportive role in today's rebound-minded trade.

The featured performer, however, was the stock market's prior performance, which is to say market participants subscribed to the notion that recent selling activity had gotten overdone, leaving the indices ripe for a rebound campaign.

Entering today, the Nasdaq Composite had declined 20.1% since the end of March, the S&P 500 had dropped 13.9%, and the Dow Jones Industrial Average had fallen 9.9%.

Sure enough, today's market narrative included a contention that month-end rebalancing activity would go in favor of stocks. We are not at month end yet, but we are in the home stretch, so that view resonated as a factor behind the stock market's resilience to selling efforts today.

It also fit with the broad-based buying interest seen in today's market. The Russell 3000 Value Index was up 1.5% and the Russell 3000 Growth Index was also up 1.5%.

All 11 S&P 500 sectors closed in positive territory. The financial sector (+3.2%), bolstered by JPMorgan Chase's guidance and some value hunting, led the way. It was joined at the top of the performance table by the energy (+2.7%), information technology (+2.4%), and consumer staples (+2.1%) sectors.

The latter was perhaps the surest sign of the market's rebound-minded bid considering that the consumer staples sector was one of last week's worst-performing sectors. The consumer discretionary sector (+0.6%), also a huge laggard last week, was today's weakest sector, although it managed to recover from an early 1.9% decline.

Treasuries generally tracked lower today, as stock prices tracked higher, in a curve-steepening trade. The 2-yr note yield settled up three basis points at 2.61% while the 10-yr note yield ended up seven basis points at 2.86%. A strong move by the euro against the dollar (EUR/USD +1.2% to 1.0686), after ECB President Lagarde teased the possibility of exiting negative rates by the end of Q3, was another factor weighing on Treasuries.

The U.S. Dollar Index fell 1.0% to 102.09. WTI crude futures settled the session up 0.2% at $110.31/bbl while natural gas futures spiked 7.9% to $8.84/mmbtu.

There was no U.S. economic data of note today. Tuesday's session will feature the preliminary IHS Markit Manufacturing and Services PMIs for May at 9:45 a.m. ET and the New Home Sales Report for April at 10:00 a.m. ET.

Dow Jones Industrial Average -12.0% YTD
S&P 500 -16.6% YTD
Russell 2000 -20.4% YTD
Nasdaq Composite -26.3% YTD

Value leading growth
23-May-22 15:30 ET
Dow +579.77 at 31841.69, Nasdaq +134.78 at 11489.39, S&P +63.31 at 3964.68

[BRIEFING.COM] There was a drift lower in the major indices during the New York lunch hour, yet the market found its footing and got running again to revisit prior session highs where it was eventually met with some resistance. Those respective resistance levels were 3,980 for the S&P 500 and 11,550 for the Nasdaq Composite.

Just about everything got pulled along on the push higher, including the consumer discretionary sector (+0.3%), which was up as much as 0.9% a short time ago after being down 1.9% earlier in the day.

Today's broad-based buying interest has afforded an edge to the value factor versus the growth factor. Currently, the Russell 3000 Value Index is up 2.0% versus a 1.6% gain for the Russell 3000 Growth Index.

All 11 S&P 500 sectors are in positive territory. The financial sector (+3.5%) remains perched in the top spot where it has resided all day.
Energy sector reaching new high
23-May-22 15:00 ET
Dow +603.60 at 31865.52, Nasdaq +149.49 at 11504.10, S&P +65.86 at 3967.23

[BRIEFING.COM] All major indices still holding onto gains today. The S&P 500 is nearing a session high of 1.8%. The financials (3.6%), energy (2.7%), consumer staples (2.2%), and information technology (2.1%) all still leading the outperformers. Leading the tail end is still the consumer discretionary (0.4%) sector, however it is well off its lows of the morning when it was down by 1.9%.

The energy sector reached its highest point since 2014 today. Notably pulling up the sector are Marathon (MPC 28.14, +0.88, +3.2%) and Exxon Mobil (XOM 93.91, +2.1, +2.2%) which both reached new 52-week highs. In the same vein, WTI crude oil futures settled higher today by $0.26 (0.24%) to $110.31/barrel.
Ross Stores gains on Barron's mention, Caesars underperforms in S&P 500
23-May-22 14:30 ET
Dow +649.61 at 31911.53, Nasdaq +167.90 at 11522.51, S&P +73.09 at 3974.46

[BRIEFING.COM] The S&P 500 (+1.87%) sits firmly in second place to this point on Monday.

S&P 500 constituents Ross Stores (ROST 79.28, +7.41, +10.31%), Deere (DE 334.98, +21.67, +6.92%), and Mosaic (MOS 61.57, +3.62, +6.25%) pepper the top of today's action. A positive Barron's mention aids ROST's Monday advance, while DE pares Friday's earnings-related losses, and MOS gains alongside general strength in materials names.

Meanwhile, casino operator Caesars Entertainment (CZR 48.13, -1.98, -3.95%) is one of today's top laggards.
Gold modestly higher as dollar slips to open the week
23-May-22 14:00 ET
Dow +624.43 at 31886.35, Nasdaq +142.35 at 11496.96, S&P +66.76 at 3968.13

[BRIEFING.COM] We're little changed in the major averages in the last half hour, the tech-heavy Nasdaq Composite (+1.25%) still bringing up the rear.

Gold futures settled $5.70 higher (+0.3%) to $1,847.80/oz, aided by a pullback in the greenback.

Meanwhile, the U.S. Dollar Index is down about -1% to $102.12.

[ReturntoSender]

Market Snapshot

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

Dow 32120.30 +191.66 (0.60%)
Nasdaq 11434.73 +170.29 (1.51%)
SP 500 3978.74 +37.25 (0.95%)
10-yr Note
NYSE Adv 2582 Dec 700 Vol 1.02 bln
Nasdaq Adv 3187 Dec 1434 Vol 4.4 bln

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

Moving the Market

-- Growth concerns

-- Efforts to rebound from oversold condition

-- Speculation that month-end rebalancing will work in favor of stocks

-- Relief bid following release of FOMC Minutes

Closing Summary
25-May-22 16:25 ET
Dow +191.66 at 32120.30, Nasdaq +170.29 at 11434.73, S&P +37.25 at 3978.74

[BRIEFING.COM] The stock market made a rebound attempt today. There were some fits and starts in that attempt, but ultimately it was successful, gaining some steam after the release of the Minutes for the May FOMC meeting. Each of the major indices ended the day higher, yet the performance edge clearly went to the small-cap and mid-cap stocks over their larger peers.

The Russell 2000 increased 2.0% and the S&P Midcap 400 Index increased 1.9% versus gains of 1.0% for the S&P 500 and 0.6% for the Dow Jones Industrial Average. Some speculative trading action and short-covering activity bolstered the performance of the smaller-capitalization stocks, but to be fair, today's session had a predominately rebound-minded bias that saw the majority of stocks attract some buy-the-dip interest.

That interest was evident in the advance-decline line, which favored advancing issues by a nearly 4-to-1 margin at the NYSE and a better than 2-to-1 margin at the Nasdaq.

Notwithstanding the broad-based gains, the stock market did not exorcise its fundamental demons.

Growth concerns continued to persist, evidenced by some weaker-than-expected durable goods orders for April, no growth in weekly mortgage purchase applications, luxury homebuilder Toll Brothers (TOL 48.09, +3.55, +8.0%) acknowledging that demand has moderated over the past month, and Dick's Sporting Goods (DKS 78.14, +6.90, +9.7%) issuing FY23 EPS guidance well below the consensus estimate due to the expected impact of evolving macroeconomic conditions.

Those concerns, though, were set aside as market participants looked intent on forcing a rebound effort. That intention was most evident in the consumer discretionary sector (+2.8%), which has been the hardest-hit sector this year and which shook off the warning from Dick's Sporting Goods, unlike past sessions when it reacted decidedly negative to disappointing guidance.

Most sectors ended today higher. The lone laggards were the utilities (-0.06%) and industrials (-0.02%) sectors. The energy (+2.0%) and information technology (+1.2%) sectors fell in line behind the consumer discretionary sector as the best-performing sectors. Gains for the remaining sectors ranged from 0.04% to 0.9%.

Late in the day, the S&P 500 flirted with 4,000, stopping just short at 3999.33. The latter marked the high of the day and it was logged roughly an hour after the release of the FOMC Minutes at 2:00 p.m. ET. Market participants were presumably heartened by the notion that Fed members want to move expeditiously to the neutral rate in a bid to quell inflation pressures, and that moving there quickly could allow the Fed possibly to pause its rate hikes later in the year to assess the effects of policy firming.

It is highly debatable that a neutral rate in the neighborhood of 2.50% will be high enough to quell inflation pressures, but it was just enough of a carrot to create some trading excitement in the afternoon session. Notably, the 2-yr note yield barely budged after the release of the minutes, standing its ground at 2.50%. Meanwhile, stocks finished off their highs on some renewed selling interest over the last 45 minutes of trading.

Reviewing today's economic data:

The conditions for durable goods orders proved to be reasonably good in April, if not altogether as strong as expected. New orders for durable goods increased 0.4% month-over-month (Briefing.com consensus 0.6%) while new orders for durable goods, excluding transportation, rose 0.3% month-over-month (Briefing.com consensus 0.6%).
The key takeaway from the report is that business spending continued to increase. That view was embedded in the 0.3% increase in nondefense capital goods orders, excluding aircraft, which followed on the heels of a 1.1% increase in March.
Total applications declined 1.2% week-over-week, with purchase applications flat and refinancing applications down 2.0%

Looking ahead, market participants will receive the Second Estimate for Q1 GDP, Weekly Initial and Continuing Jobless Claims, April Pending Home Sales, and weekly EIA Natural Gas Inventories data on Thursday.

Dow Jones Industrial Average -11.5% YTD
S&P 500 -16.5% YTD
S&P 400 -14.6% YTD
Russell 2000 -19.9% YTD
Nasdaq Composite -26.9% YTD

Assessing the meaning of the Minutes
25-May-22 15:30 ET
Dow +287.80 at 32216.44, Nasdaq +221.57 at 11486.01, S&P +51.79 at 3993.28

[BRIEFING.COM] The stock market went into a higher gear following the release of the FOMC Minutes for the May meeting, which conveyed a notion that members want to move expeditiously to get to the neutral rate.

The neutral rate of course is a moving target. You kind of know it when the data suggest you hit it, but for now it sits in the neighborhood of 2.50%. The target range for the fed funds rate is currently 0.75-1.00%, and Fed Chair Powell has already intimated that 50 basis point rate hikes are likely at the June and July FOMC meetings. That would leave things at 1.75-2.00% if that's how it played out, so the arrival at "neutral" could come as early as the September FOMC meeting if the Fed stayed on a similar tightening course.

There are a few considerations that likely helped drive the post-Minutes upswing:

Market participants like the idea at this point that the Fed wants to get to the neutral rate expeditiously. Doing so presumably would help cool inflation pressures sooner rather than later (it is highly debatable that 2.50% is the bogey for an inflation rate that still sits above 8.0%).
Market participants also like the idea that the Fed could be hitting the "pause" button on rate hikes before the year is done. That view was borne out of the indication that many participants judged that an expeditious removal of policy accommodation would leave the Committee "well positioned later this year" to assess the effects of policy firming.

These ideas will certainly be put to the test in coming months, but for a market in an oversold condition, and desperate to have a ray of hope as it relates to future rate hikes, they were enough to generate some excitement that drove the S&P 500 to the threshold of the 4,000 level before being met with resistance.

Strikingly, the 2-yr note sits unchanged at 2.50%, little changed from where it was before the release of the Minutes.
Sectors pull ahead after minutes release
25-May-22 14:55 ET
Dow +171.91 at 32100.55, Nasdaq +186.44 at 11450.88, S&P +40.07 at 3981.56

[BRIEFING.COM] Major indices are all trending higher after the release of the minutes from the May FOMC meeting. The Nasdaq Composite is up 1.5%, the Dow Jones Industrial Average is up 0.4%, and the S&P 500 is up 1.0%.

The Mega-Caps have pulled ahead of the broader market today. Looking at the Vanguard Mega-Cap Growth ETF (MGK 188.16, +2.60, +1.4%) versus the Invesco S&P 500 Equal Weight ETF (RSP 143.78, +1.49, +1.1%) we can see that the mega-caps are leading by a decent spread instead of tracking nearly 1:1 as seen earlier in the session.

Separately, most S&P 500 sectors have shown improvement since the release of the minutes. Most notably, the information technology (+1.2%), consumer discretionary (+2.8%), and communication services (+0.7%) sectors sit near their best levels of the day.

The lone laggards at this point are the utilities (-0.4%) and health care (-0.3%) sectors.
FOMC minutes show participants think 50 bps hike would be appropriate at next couple of meetings
25-May-22 14:30 ET
Dow +78.84 at 32007.48, Nasdaq +134.41 at 11398.85, S&P +27.10 at 3968.59

[BRIEFING.COM] The major averages jostled around, but ultimately stand modestly higher following the release of the FOMC's May policy meeting minutes. The benchmark S&P 500 (+0.69%) is firmly in second place.

Interestingly, most participants judged that 50 basis point increases in the target range would likely be appropriate at the next couple of meetings.

In addition, many participants judged that expediting the removal of policy accommodation would leave the Committee well positioned later this year to assess the effects of policy firming and the extent to which economic developments warranted policy adjustments.

Among other key excerpts from the minutes, a number of participants observed that recent monthly data might suggest that overall price pressures may no longer be worsening. Also, all participants supported plans to reduce the size of the balance sheet.
Gold lower on Wednesday ahead of FOMC minutes
25-May-22 13:55 ET
Dow -37.40 at 31891.24, Nasdaq +86.62 at 11351.06, S&P +10.10 at 3951.59

[BRIEFING.COM] We're little changed in the last half hour, the tech-heavy Nasdaq Composite (+0.77%) still leading the way ahead of the FOMC's May policy meeting minutes at the top of the hour.

Gold futures settled $19.10 lower (-1%) to $1,846.30/oz its steepest percentage decline in two weeks, pressured in part by a modestly higher dollar.

Meanwhile, the U.S. Dollar Index is up approx. +0.4% to $102.26.

[ReturntoSender]

Market Snapshot

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

Dow 33212.98 +575.77 (1.76%)
Nasdaq 12131.12 +390.48 (3.33%)
SP 500 4158.25 +100.40 (2.47%)
10-yr Note +2/32 2.743
NYSE Adv 2719 Dec 454 Vol 923.3 mln
Nasdaq Adv 3498 Dec 893 Vol 4.72 bln

Industry Watch
Strong: Consumer Discretionary, Information Technology, Real Estate, Communication Services
Weak: Utilities, Consumer Staples, Financials

Moving the Market

-- PCE Price Indexes show moderation in inflation pressures

-- Month-end rebalancing activity

-- Leadership from heavily weighted sectors

-- Ongoing rebound momentum

Market rallies into long weekend
27-May-22 16:15 ET
Dow +575.77 at 33212.98, Nasdaq +390.48 at 12131.12, S&P +100.40 at 4158.25

[BRIEFING.COM] The stock market finished a volatile week on a firmly higher note with the S&P 500 (+2.5%) and Nasdaq (+3.3%) rising for the third consecutive day while the Dow (+1.8%) logged its sixth advance in a row, snapping its longest weekly losing streak since 1932.

Equities recorded the bulk of their gains during the first hour of action, adding to their big gains in late trade. The Nasdaq maintained its lead throughout the day while the S&P 500 and Dow returned into positive territory for the month.

Today's economic data was headlined by the Personal Income/Outlays report for April. The report showed a smaller than expected increase in income and a larger than expected increase in spending, but the yr/yr deceleration in the PCE Price Index was viewed as a silver lining that could signal an inflationary peak.

All eleven sectors spent the day in positive territory with six groups gaining at least 2.0%. Top-weighted technology (+3.4%) spent the day near the top of the leaderboard, alongside the consumer discretionary sector (+3.5%). The relative strength in these groups was notable since technology and retail stocks have been among the worst performers during the market's recent slide to levels not seen since early 2021.

Autodesk (ADSK 211.38, +19.75, +10.3%) finished atop the tech sector after beating Q1 expectations and issuing mixed guidance for FY23 while top-weighted components like Apple (AAPL 149.64, +5.86, +4.1%) and NVIDIA (NVDA 188.11, +9.60, +5.4%) also made notable contributions to the rally. NVIDIA's strength helped the PHLX Semiconductor Index (+4.0%) finish the day ahead of the tech sector, though both groups gained 8.1% for the week.

Retail stocks in the consumer discretionary sector were also a notable source of strength even though quarterly reports from the group have shown continued concerns about costs eating into margins. However, Ulta Beauty (ULTA 425.08, +47.12, +12.5%) finished ahead of other discretionary components after reporting better than expected results and guidance while Gap (GPS 11.60, +0.48, +4.3%) finished with a solid gain despite plunging nearly 15.0% at the open in reaction to its Q1 miss and below-consensus guidance. On the bright side, management indicated that performance is expected to improve in the second half of the year.

The improved sentiment in the market masked continued strength in the energy sector (+1.7%), as crude oil returned to its May high. The energy sector gained 8.1% for the week, extending its May advance to 16.9% while crude oil climbed $0.64 or 0.6% to $114.77/bbl, rising $4.72 or 4.3% for the week.

Treasuries had a mixed, but largely little changed, showing on Friday. The Treasury complex climbed for the third week in a row, with the 10-yr yield slipping one basis point to 2.74% today. The benchmark yield surrendered five basis points this week, pausing just above its 50-day moving average (2.73%).

Reviewing today's economic data:

Personal income increased 0.4% month-over-month (Briefing.com consensus 0.5%) following an unrevised 0.5% increase in March. Personal spending rose 0.9% month-over-month (Briefing.com consensus 0.6%) following an upwardly revised 1.4% increase (from 1.1%) in March. The PCE Price Index was up 0.2% month-over-month (Briefing.com consensus 0.3%) and the core-PCE Price Index, which excludes food and energy, was up 0.3% month-over-month, as expected.
The key takeaway from the report is that there was a moderation in the year-over-year rates for the price indexes, which will support the peak inflation narrative. The PCE Price Index was up 6.3% year-over-year, versus 6.6% in March, and the core-PCE Price Index, the one the Fed watches most closely, was up 4.9% year-over-year, versus 5.2% in March.
The final May reading for the University of Michigan's Index of Consumer Sentiment fell to 58.4 from the preliminary reading of 59.1. The final reading for April was 65.2. In May 2021, the Index of Consumer Sentiment stood at 82.9.
The key takeaway from the report is that inflation concerns have negatively impacted views on buying conditions for houses and durables, and the future outlook for the economy.
The advance goods trade deficit narrowed to $105.90 bln in April from a revised deficit of $125.90 bln (from -$125.30 bln) in March.
Advance Retail Inventories increased by 0.7% in April after increasing a revised 3.0% (from 2.0%) in March.
Advance Wholesale Inventories increased by 2.1% in April after increasing a revised 2.7% (from 2.3%) in March.

Bond and equity markets will be closed on Monday for Memorial Day. On Tuesday, the market will receive the March FHFA Housing Price Index (prior 2.1%) and March S&P Case-Shiller Home Price Index (Briefing.com consensus 20.0%; prior 20.2%) at 9:00 ET, followed by May Chicago PMI (Briefing.com consensus 55.5; prior 58.5) at 9:45 ET, and May Consumer Confidence (Briefing.com consensus 103.7; prior 107.3) at 10:00 ET.

Dow Jones Industrial Average -8.6% YTD
S&P 400 -10.6% YTD
S&P 500 -12.8% YTD
Russell 2000 -15.9% YTD
Nasdaq Composite -22.5% YTD

Gains extended
27-May-22 15:30 ET
Dow +503.65 at 33140.86, Nasdaq +363.26 at 12103.90, S&P +91.82 at 4149.67

[BRIEFING.COM] The major averages have added to their big gains in recent action. The Nasdaq (+3.1%) is now up more than 3.0% while the S&P 500 (+2.3%) has extended its gain past 2.0%.

The rally from the past three days reflects a notable improvement in sentiment ahead of a long weekend, and it is worth pointing out that the market has been able to climb despite continued resilience in the price of oil. The energy sector (+1.7%) has gained 8.1% this week while crude oil climbed $0.64, or 0.6%, to $114.77/bbl today. WTI crude advanced nearly $5.00 for the week, pausing just below its May high (115.56).

Treasuries finished the week on a mixed, but largely flat, note. The 10-yr yield slipped one basis point to 2.74%.
Small caps outperforming S&P 500
27-May-22 15:00 ET
Dow +367.18 at 33004.39, Nasdaq +31.92 at 11772.56, S&P +74.73 at 4132.58

[BRIEFING.COM] The major indices have held their positions the last half hour. The Nasdaq Composite (+2.7%) is outperforming the Dow Jones Industrial Average (+1.1%) and the S&P 500 (+1.8%), making for a quiet afternoon.

The mid caps are slightly underperforming today as evidenced by the S&P 400 Mid Cap Index (+1.7%). Meanwhile the small caps are outperforming the broader market as evidenced by the S&P 600 Small Cap Index (+2.0%) and the Russell 2000 (2.3%). With today's outperformance the Russell 2000 sports a comparable gain to the S&P 500.

Separately, the CBOE VIX Index is down 1.64 points at 25.86, as the activity seen today fuels hope for an extension of the rebound.
Gains maintained
27-May-22 14:25 ET
Dow +355.10 at 32992.31, Nasdaq +312.91 at 12053.55, S&P +73.26 at 4131.11

[BRIEFING.COM] The major averages remain firmly higher with the Nasdaq (+2.7%) continuing its leadership over the S&P 500 (+1.8%) and Dow (+1.1%).

Coupled with gains from the past two days, today's advance has lifted the key indices to levels not seen since the first week of May, reflecting hopes for a rebound after the S&P 500 flirted with bear market territory just a week ago. Interestingly, the market has climbed strongly in recent days even though crude oil returned to its May high.

All eleven sectors remain in positive territory with 90 minutes left in the session. Technology (+2.8%) and consumer discretionary (+2.5%) remain atop the leaderboard while the consumer staples sector (+0.6%) underperforms.
Dow lagging S&P 500 and Nasdaq
27-May-22 14:00 ET
Dow +320.05 at 32957.26, Nasdaq +295.73 at 12036.37, S&P +68.87 at 4126.72

[BRIEFING.COM] The major indices are still flirting with their intraday highs. The Dow Jones Industrial Average jumped more than 300 points today, up by 1.0%, but it's lagging the S&P 500 (+1.7%) and Nasdaq Composite (+2.5%).

The Dow has seen broad-based gains with 27 of 30 components trading mostly in the green. The only laggards being Johnson & Johnson (JNJ 179.40, -0.06, -0.03%), Coca-Cola (KO 64.36, +0.05, +0.08%), and Merck (MRK 92.32, +0.03, +0.05%) which have been doing relatively well year-to-date. Note that Apple (AAPL 148.52, +4.49, +3.1%), which has not been performing well year-to-date is the leading performer in the Dow.

[ReturntoSender]

Market Snapshot

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

Dow 32815.23 -176.89 (-0.54%)
Nasdaq 11994.45 -86.93 (-0.72%)
SP 500 4101.23 -30.92 (-0.75%)
10-yr Note -22/32 2.931
NYSE Adv 1274 Dec 1917 Vol 997.2 mln
Nasdaq Adv 1544 Dec 2609 Vol 4.65 bln

Industry Watch
Strong: Energy, Information Technology, Utilities
Weak: Real Estate, Financials, Materials, Consumer Staples, Health Care

Moving the Market

-- Salesforce, Inc. beat earnings and raised FY23 guidance

-- ISM Manufacturing Index increased in May but shows indications of ongoing supply chain problems and pricing pressures

-- Jump in Treasury yields on rate hike concerns

-- Fed's Beige Book reports moderating growth

Tuesday lows revisited
01-Jun-22 16:15 ET
Dow -176.89 at 32815.23, Nasdaq -86.93 at 11994.45, S&P -30.92 at 4101.23

[BRIEFING.COM] The stock market ended Wednesday on a weak note with the major averages finishing near yesterday's lows. The S&P 500 lost 0.8% while the Russell 2000 (-0.5%) finished a bit ahead despite lagging in morning trade.

Early action saw a continuation of yesterday's selling with some recent top performers fueling the retreat. The financials sector (-1.7%) underperformed throughout the day after rallying off a 13-month low at the end of May. Today, the sector was pressured by comments from JPMorgan Chase (JPM 129.91, -2.32, -1.8%) CEO Dimon, who warned about an approaching "economic hurricane." Shares of JPM surrendered yesterday's gain but finished above their low after bouncing off their 50-day moving average (128.34).

The broader market enjoyed an afternoon recovery that returned the S&P 500 to its unchanged level, but renewed selling pressure appeared in the afternoon.

Elsewhere among cyclical sectors, industrials (-0.6%) and the consumer discretionary space (-0.8%) finished near the S&P 500 while the technology sector (-0.3%) ended just below its flat line after reclaiming a chunk of its opening loss. The sector owed its outperformance to relative strength in top components Apple (AAPL 148.71, -0.13, -0.1%) and Microsoft (MSFT 272.42, +0.55, +0.2%), but they too faced some late pressure. Salesforce (CRM 176.07, +15.83, +9.9%) and HP (HPQ 40.34, +1.50, +3.9%) represented pockets of relative strength throughout the day after both companies reported better than expected quarterly results. Chipmakers failed to keep pace with the sector, sending the PHLX Semiconductor Index lower by 1.6%.

Health care (-1.4%) and consumer staples (-1.3%) finished near the bottom of the leaderboard due to broad-based losses. Archer-Daniels (ADM 86.67, -4.15, -4.6%) was the worst performer among staple stocks, falling from its best level in nearly four weeks back below its 50-day moving average (90.25).

On the upside, energy (+1.8%) spent the day in the green, building on its gain as the session went on. The sector's continued strength was supported by another uptick in crude oil, which climbed $0.40, or 0.4% to $115.33/bbl. Baker Hughes (BKR 37.41, +1.43, +4.0%) was the top performer in the sector, reclaiming yesterday's entire loss.

Treasuries added to their losses from yesterday with shorter tenors leading the retreat. The 2-yr yield rose 11 bps to 2.65% while the 10-yr yield rose nine basis points to 2.93%.

The Fed released its Beige Book for June, which noted that all Districts reported continued growth with most reporting slight or modest growth while four reported a slowdown. There was some softening in the retail sector and residential real estate due to high prices and high interest rates. Employment expanded modestly or moderately while one District saw a slowdown. Prices continued rising at a strong or robust pace with manufacturers maintaining the bulk of their pricing power.

Reviewing today's economic data:

The May ISM Manufacturing Index increased to 56.1% (Briefing.com consensus 54.9%) from 55.4% in April. A number above 50.0% is indicative of expansion. May marked the 24th consecutive month of expansion in the manufacturing sector, although the May reading was the second lowest since September 2020.
The key takeaway from the report is that manufacturing activity picked up in May despite ongoing supply chain problems and pricing pressures. Still, sentiment regarding demand remained strongly optimistic.
Total construction spending increased 0.2% month-over-month in April (Briefing.com consensus 0.6%) following an upwardly revised 0.3% increase (from 0.1%) in March. Total private construction increased 0.5% month-over-month while total public construction decreased 0.7%. On a year-over-year basis, total construction spending was up 12.3%.
The key takeaway from the report is that, other than residential spending, there wasn't much strength in spending activity in either the private or public sectors.
Job openings decreased to 11.400 mln in April from a revised 11.855 mln (from 11.549 mln) in March.
The IHS Markit Manufacturing PMI fell to 57.0 in the final reading for May from 57.5 in the preliminary reading.
The weekly MBA Mortgage Index fell 2.3% after falling 1.2% during the previous week.

The ADP Employment Change for May (Briefing.com consensus 295,000; prior 247,000) will be reported tomorrow at 8:15 ET, followed by weekly Initial Claims (Briefing.com consensus 210,000; prior 210,000), Continuing Claims (prior 1.346 mln), revised Q1 Productivity (Briefing.com consensus -7.5%; prior -7.5%), and revised Q1 Unit Labor Costs (Briefing.com consensus 11.6%; prior 11.6%) at 8:30 ET, and April Factory Orders (Briefing.com consensus 0.7%; prior 2.2%) at 10:00 ET.

Dow Jones Industrial Average -9.7% YTD
S&P 400 -12.1% YTD
S&P 500 -14.0% YTD
Russell 2000 -17.4% YTD
Nasdaq Composite -23.3% YTD

Preview of tomorrow's economic data
01-Jun-22 15:25 ET
Dow -49.75 at 32942.24, Nasdaq +0.87 at 12082.25, S&P -7.18 at 4124.98

[BRIEFING.COM] Entering the last half hour of trading, the major indices are still off their session lows. The S&P 500 is above the 4,100 level, but currently down 0.2% for the day, while the Nasdaq continues to flirt with positive territory.

Tomorrow's economic lineup features more news on the labor front. Specifically the May ADP Employment Change report and the weekly initial jobless claims report. In addition, the revised Q1 productivity report and April factory orders report will round out the economic calendar.

Incoming economic data is going to be watched closely each and every week for signs of weakening -- or perhaps resilience -- in the face of the Fed's rate hike actions.

Most cyclical sectors have held up reasonably well today, but none, other than the energy sector (+2.4%), have shown any clear cut strength.

Looking at Treasury yields, the 2-yr note yield is up 12 basis points to 2.65% while the 10-yr note yield is up 10 basis points to 2.94%.
Sectors recover some losses
01-Jun-22 15:00 ET
Dow -120.98 at 32871.01, Nasdaq -33.96 at 12047.42, S&P -18.04 at 4114.12

[BRIEFING.COM] Since the release of the Fed's Beige Book, the major indices have managed to pare today's losses some. The tech-heavy Nasdaq Composite, which was flirting with positive territory, is now down 0.3%. The Dow (-0.4%) had tumbled more than 300 points earlier and now is down about 120 points.

Two of the 11 S&P 500 sectors are in the green. The energy sector (+2.0%) has shown strength this whole session. WTI crude oil futures settled today up $0.40, or 0.4%, to $115.33/bbl. Meanwhile, natural gas futures jumped $0.49, or 6.0%, to $8.69/mmbtu.

The other sector in positive territory is the information technology sector (+0.1%).
Beige Book shows economy grew at slight or modest pace, slowed in some Districts
01-Jun-22 14:30 ET
Dow -66.75 at 32925.24, Nasdaq -13.49 at 12067.89, S&P -8.99 at 4123.17

[BRIEFING.COM] Overall, the major averages originally held their levels, but have moved slightly higher in more recent trading following the release of the Fed's May Beige Book; all twelve Federal Reserve Districts have reported continued economic growth since the prior Beige Book period, with a majority indicating slight or modest growth; four Districts indicated moderate growth. Four Districts explicitly noted that the pace of growth had slowed since the prior period.

Other key excerpts from the report included that contacts in most Districts reported ongoing growth in manufacturing. Retail contacts noted some softening as consumers faced higher prices, and residential real estate contacts observed weakness as buyers faced high prices and rising interest rates. Contacts tended to cite labor market difficulties as their greatest challenge, followed by supply chain disruptions.

Eight Districts reported that expectations of future growth among their contacts had diminished; contacts in three Districts specifically expressed concerns about a recession.

What's more, the Fed said most Districts reported that employment rose modestly or moderately in a labor market that all Districts described as tight. Also, most Districts noted that their contacts had reported strong or robust price increases -- especially for input prices.
Gold struggles for direction on Wednesday
01-Jun-22 13:55 ET
Dow -215.73 at 32776.26, Nasdaq -98.69 at 11982.69, S&P -32.08 at 4100.08

[BRIEFING.COM] The major averages still sit decently lower across the board, the tech-heavy Nasdaq Composite (-0.82%) leading the declines.

Gold futures settled $0.30 higher (flat) to $1,848.70/oz holding off on any decided move owing to today's fall in equities and a decent move higher in the dollar.

Meanwhile, the U.S. Dollar Index is up about +0.8% to $102.56.

As a reminder, the Fed's May Beige Book is due out at the top of the hour.