Market Snapshot
briefing.com
| Dow | 36319.98 | -112.24 | (-0.31%) | | Nasdaq | 15886.54 | -95.81 | (-0.60%) | | SP 500 | 4685.25 | -16.45 | (-0.35%) | | 10-yr Note | +26/32 | 1.442 |
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| | NYSE | Adv 1512 | Dec 1719 | Vol 834.4 mln | | Nasdaq | Adv 1854 | Dec 2696 | Vol 5.4 bln |
Industry Watch
| Strong: Utilities, Real Estate, Consumer Staples, Energy, Materials, Industrials |
| | Weak: Consumer Discretionary, Financials |
Moving the Market
-- S&P 500 and Nasdaq snap winning streaks
-- Tesla (TSLA) fell 12% amid profit-taking interest, PayPal (PYPL) fell 10.5% after reporting earnings
-- Treasury yields declined despite hot PPI report for October and soft 10-yr note auction
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Winning streak snapped
09-Nov-21 16:20 ET
Dow -112.24 at 36319.98, Nasdaq -95.81 at 15886.54, S&P -16.45 at 4685.25
[BRIEFING.COM] The S&P 500 declined 0.4% on Tuesday, snapping an eight-session winning streak amid profit-taking interest and another decline in Treasury yields. The Nasdaq Composite snapped an 11-session winning streak with a 0.6% decline. The Russell 2000 also fell 0.6% while the Dow Jones Industrial Average fell 0.3%.
Tesla (TSLA 1023.50, -139.44, -12.0%) was the prime recipient of profit taking, as the stock fell 12% today and extended its two-day decline to 16%. Entering the week, the stock was up more than 55% in a month. Accordingly, TSLA dragged the S&P 500 consumer discretionary sector (-1.4%) to the bottom of the sector standings.
The information technology (-0.4%), financials (-0.6%), health care (-0.4%), and communication services (-0.3%) sectors closed modestly lower, while the six other sectors in the S&P 500 provided offsetting support with 0.3-0.4% gains. The utilities sector (+0.4%) eked out the top spot.
PayPal (PYPL 205.42, -24.00, -10.5%) held back the technology sector with a 10.5% decline following its earnings report. Elsewhere, peculiar curve-flattening activity in the Treasury market weighed on the financials sector.
The price action in Treasuries was counter-intuitive because yields settled lower despite the elevated inflation pressures depicted in the Producer Price Index (PPI) report for October and the lukewarm demand in the $39 billion 10-yr Treasury note auction. Total PPI increased 0.6% month-over-month, in-line with the Briefing.com consensus, and held steady at 8.6% year-over-year.
The 2-yr yield fell five basis points to 0.40%, and the 10-yr yield fell seven basis points to 1.43%. The U.S. Dollar Index declined 0.1% to 93.97. WTI crude futures rose 2.7%, or $2.20, to $84.16/bbl.
Presumably, Treasuries were propped up by defensive positioning from investors cautious on equities, by peak inflation expectations, and by an understanding that the Fed isn't in a hurry to hike rates.
Separately, shares of Roblox (RBLX 109.52, +32.52, +42.2%) soared 42% after the company pleased investors with its earnings report. General Electric (GE 111.29, +2.87, +2.7%) rose nearly 3.0% after announcing plans to form three public companies focused on aviation, healthcare, and energy.
Reviewing Tuesday's economic data:
- The Producer Price Index for final demand increased 0.6% month-over-month in October (Briefing.com consensus +0.6%) and the index for final demand, less foods and energy, increased 0.4% (Briefing.com consensus +0.4%).
- The key takeaway from the report is that the year-over-year readings for total PPI and core PPI were unchanged from September, which will contribute to the notion that the inflation experienced by producers is at, or near, peak levels.
- The NFIB Small Business Optimism Index for October decreased to 98.2 from 99.1 in September.
Looking ahead, investors will receive the the Consumer Price Index for October, weekly Initial and Continuing Claims, the Treasury Budget for October, and Wholesale Inventories for September on Wednesday.
- S&P 500 +24.7% YTD
- Nasdaq Composite +23.3% YTD
- Russell 2000 +22.9% YTD
- Dow Jones Industrial Average +18.7% YTD
WTI crude futures rally nearly 3%
09-Nov-21 15:30 ET
Dow -169.86 at 36262.36, Nasdaq -114.13 at 15868.22, S&P -22.05 at 4679.65
[BRIEFING.COM] The S&P 500 is down 0.5% and on track to snap its eight-session winning streak.
One last look at the S&P 500 sectors shows six sectors in the green and five sectors in the red. Consumer discretionary (-1.5%) is the weakest link with a 1.5% decline, while the utilities sector (+0.5%) outperforms with a 0.5% gain.
WTI crude futures rose 2.7%, or $2.20, to $84.16/bbl. |
