Stock Market Update
briefing.com
Market Snapshot
| Dow | 33821.30 | -256.33 | (-0.75%) | | Nasdaq | 13786.29 | -128.50 | (-0.92%) | | SP 500 | 4134.94 | -28.32 | (-0.68%) | | 10-yr Note | +1/32 | 1.588 |
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| | NYSE | Adv 863 | Dec 2394 | Vol 878.8 mln | | Nasdaq | Adv 990 | Dec 3044 | Vol 4.2 bln |
Industry Watch
| Strong: Health Care, Real Estate, Utilities, Consumer Staples |
| | Weak: Financials, Energy, Consumer Discretionary, Industrials |
Moving the Market
-- Market registers back-to-back losses, representing consolidation activity
-- Weakness in cyclical sectors; strength in defensive-oriented sectors
-- Better-than-expected earnings reports
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Back-to-back losses
20-Apr-21 16:20 ET
Dow -256.33 at 33821.30, Nasdaq -128.50 at 13786.29, S&P -28.32 at 4134.94
[BRIEFING.COM] The S&P 500 declined 0.7% on Tuesday for its second straight decline, as it continued to consolidate its record-setting run. The Dow Jones Industrial Average (-0.8%) and Nasdaq Composite (-0.9%) performed similarly to the benchmark index, while the Russell 2000 struggled with a 2.0% decline.
Like yesterday, there was no specific selling catalyst, but the breadth and scope of the losses were greater today. Declining issues outpaced advancing issues by a 3:1 margin at the NYSE and Nasdaq. The cyclical energy (-2.7%), financials (-1.8%), and consumer discretionary (-1.2%) sectors underperformed with sharp losses.
Analyst commentary rehashed on how overstretched the S&P 500 had gotten, with roughly 95% of its components trading above their 200-day moving average, and how bullish investor sentiment had gotten over the past month. Despite the potential for further weakness, the market closed off session lows amid a late effort to buy the dip.
Throughout the day, some investors preferred to lean more defensively instead of de-risking. The defensive-oriented utilities (+1.3%), real estate (+1.1%), consumer staples (+0.6%), and health care (+0.4%) sectors finished in positive territory.
The consumer staples and health care sectors received earnings-driven support from Johnson & Johnson (JNJ 166.48, +3.79, +2.3%), Procter & Gamble (PG 137.75, +1.14, +0.8%), and Philip Morris International (PM 94.00, +2.33, +2.5%). JNJ also said it will resume its vaccine roll-out in Europe after the EMA supported its benefit-risk profile.
IBM (IBM 138.16, +5.04, +3.8%) and Travelers (TRV 155.73, +1.35, +0.9%) were other earnings-related gainers, even though TRV missed EPS estimates. United Airlines (UAL 50.30, -4.69, -8.5%) fell 8.5% after missing top and bottom-line estimates and possibly due to news that the U.S. State Department will increase its "Do Not Travel" advisory to roughly 80% of countries outside the U.S.
In other corporate news, Apple (AAPL 133.11, -1.73, -1.3%) introduced new iMacs, a new podcast subscription service, a Bluetooth tracking product, and a new Apple TV 4K. Microsoft (MSFT 258.26, -0.48, -0.2%) reportedly ended deal talks with Discord. Kansas City Southern (KSU 295.50, +39.10, +15.3%) received an 18% premium counteroffer from Canadian National Railway (CNI 110.15, -7.98, -6.8%).
U.S. Treasuries edged higher amid the negative bias in the broader equity market, pushing yields lower. The 2-yr yield decreased one basis point to 0.15%. The 10-yr yield decreased four basis points to 1.56%. The U.S. Dollar Index increased 0.2% to 91.24. WTI crude futures declined 1.2%, or $0.74, to $62.61/bbl.
Investors did not receive any economic data on Tuesday, and Wednesday's economic data will be limited to the weekly MBA Mortgage Applications Index and the weekly EIA crude inventory report.
- Russell 2000 +10.8% YTD
- Dow Jones Industrial Average +10.5% YTD
- S&P 500 +10.1% YTD
- Nasdaq Composite +7.0% YTD
Crude futures settle lower amid equity weakness
20-Apr-21 15:25 ET
Dow -292.36 at 33785.27, Nasdaq -152.11 at 13762.68, S&P -32.54 at 4130.72
[BRIEFING.COM] The S&P 500 is down 0.8% after retesting its session low about 25 minutes ago. The ability to hold the low has been seen as an encouraging short-term sign.
One last look at the S&P 500 sectors shows six of the 11 sectors trading lower by at least 1.0%, including a 2.7% decline in the energy sector. Four sectors trade higher, including the utilities (+1.3%) and real estate (+1.0%) sectors with gains of at least 1.0%.
WTI crude futures settled lower by 1.2%, or $0.74, to $62.61/bbl. |
