Market Snapshot
briefing.com
| 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 |
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| | 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
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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
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