Market Snapshot
briefing.com
| 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. |
