Market Snapshot
briefing.com
| Dow | 33338.55 | +27.16 | (0.08%) | | Nasdaq | 12779.87 | -74.89 | (-0.58%) | | SP 500 | 4207.34 | -2.97 | (-0.07%) | | 10-yr Note |
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| | NYSE | Adv 1834 | Dec 1275 | Vol 860 mln | | Nasdaq | Adv 2407 | Dec 2037 | Vol 5.7 bln |
Industry Watch
| Strong: Energy, Financials, Materials, Industrials |
| | Weak: Consumer Discretionary, Health Care, Real Estate, Information Technology, Consumer Staples |
Moving the Market
-- Surprise decline in July PPI
-- Disney's favorable quarterly results
-- Relative underperformance of mega caps
-- Rising Treasury yields undercut growth stocks
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Closing Summary
11-Aug-22 16:25 ET
Dow +27.16 at 33338.55, Nasdaq -74.89 at 12779.87, S&P -2.97 at 4207.34
[BRIEFING.COM] A surprise decline in July PPI set the market up for decent gains early on. Disney's (DIS 117.69, +5.26, +4.7%) favorable earnings and Disney+ growth underpinned the buying efforts this morning as well. The stock market fell from its highs around midmorning and sunk lower for the remainder of the session. The S&P 500 reached 4,257 at its high before closing at 4,207, just above its intraday low and below closely watched technical level of 4,231, which represents a 50% retracement of the losses between the close on January 3rd and the close on June 16th.
July total PPI showed an unexpected decline of 0.5% month-over-month while core PPI, which excludes food and energy, was up 0.2% month-over-month. Year-over-year PPI and core PPI were still unacceptably high at 9.8% and 7.6%, respectively. The point that registered for Wall Street was the noticeable moderation compared to year-over-year total PPI and core PPI in June, which rose 11.3% and 8.2%, respectively.
Though index level performance suggested weakness under the surface, it was really the lagging mega caps and growth stocks that held back the gains. Rising long term rates took some wind out of their sails. Tesla (TSLA 859.89, -23.18, -2.6%), Microsoft (MSFT 287.02, -2.14, -0.7%), Alphabet (GOOG 119.82, -0.83, -0.7%) closed with losses for the mega caps.
The Russell 2000 (+0.3%) and S&P Mid Cap 400 (+0.6%) had a strong showing, closing ahead of the three major indices.
Losses in the aforementioned stocks were responsible for their S&P 500 sector performance with consumer discretionary (-0.7%) and information technology (-0.5%) closing behind the broader market while communication services (+0.1%) closed with a modest gain thanks to Disney and its peers.
Energy (+3.2%) sat atop the leaderboard today thanks to rising oil prices. WTI crude oil futures settled 2.7% higher at $94.33/bbl.
Also, the advance-decline line favored advancing issues by a 7-to-5 margin at the NYSE and a 6-to-5 margin at the Nasdaq.
The Treasury market was more volatile than the stock market today with the 10-yr note yield dropping to 2.74% after the PPI report before settling the session at 2.89%. The 2-yr note yield settled unchanged at 3.19%.
Looking ahead to Friday, market participants will receive the University of Michigan Consumer Sentiment preliminary August reading (Briefing.com consensus 52.1; prior 51.5) at 10:00 a.m. ET. July Import Prices (prior 0.2%), Import Prices ex-oil (prior -0.5%), Export Prices (prior 0.7%), and Export Prices ex-agriculture (prior 0.9%) will be released at 8:30 a.m. ET.
Reviewing today's economic data:
- July PPI fell 0.5% (Briefing.com consensus +0.3%) from a revised 1.0% increase (from 1.1%) in June. Core PPI, which excludes food and energy, rose 0.2% (Briefing.com consensus 0.4%) after the 0.4% increase in June.
- The key takeaway from the report is the moderation seen in the year-over-year inflation readings. That follows on the heels of the pleasing CPI data and it fits neatly within the supportive peak inflation narrative that has been a boon for investor sentiment.
- Weekly initial jobless claims totaled 262,000 (Briefing.com consensus 263,000) after the prior week's revised total of 248,000 (from 260,000). Continuing claims totaled 1.428 million after the prior week's revised total of 1.420 million (from 1.416 million).
- The key takeaway from the report is that the level of initial claims denotes some softening in the labor market, but that softening is still more consistent with a soft landing scenario for the economy.
- Weekly EIA Natural Gas Inventories showed a build of 44 bcf versus a build of 41 bcf last week.
Dow Jones Industrial Average: -8.3% YTD
S&P 400: -9.4% YTD
S&P 500: -11.7% YTD
Russell 2000: -12.0% YTD
Nasdaq Composite: -18.3% YTD
Market moves laterally into the close
11-Aug-22 15:30 ET
Dow +21.43 at 33332.82, Nasdaq -65.85 at 12788.91, S&P -1.02 at 4209.29
[BRIEFING.COM] The market is moving sideways near session lows heading into the close.
Energy complex futures settled mostly higher. WTI crude oil futures rose 2.7% to $94.33/bbl. Natural gas futures rose 9.1% to $8.98/mmbtu. Unleaded gasoline futures fell 0.3% to $3.06/gal.
After the close Illumina (ILMN), Poshmark (POSH), Rivian Automotive (RIVN), and Toast (TOST) headline the earnings reports.
Looking ahead to Friday, market participants will receive the University of Michigan Consumer Sentiment preliminary August reading (Briefing.com consensus 52.1; prior 51.5) at 10:00 a.m. ET. July Import Prices (prior 0.2%), Import Prices ex-oil (prior -0.5%), Export Prices (prior 0.7%), and Export Prices ex-agriculture (prior 0.9%) will be released at 8:30 a.m. ET.
S&P 500 dips into the red
11-Aug-22 14:55 ET
Dow +30.61 at 33342.00, Nasdaq -78.34 at 12776.42, S&P -3.19 at 4207.12
[BRIEFING.COM] The S&P 500 dipped into negative territory in recent trading.
The consumer discretionary (-0.9%) S&P 500 sector remains buried in last place. The weakness is largely due to Tesla (TSLA 862.00, -20.94, -2.3%) and Amazon.com (AMZN 140.44, -2.26, -1.6%) since most components trade in the green. Retailers and homebuilders occupy the top spots among sector components. The SPDR S&P Retail ETF (XRT) is up 1.8% while the SPDR S&P Homebuilder ETF (XHB) is up 0.9%.
Separately, Treasury yields are near their highs of the day. The 2-yr note yield is up two basis points to 3.20% while the 10-yr note yield is up ten basis points to 2.89%.
Devon outperforms on oil strength, Chipotle gives back some of recent gains
11-Aug-22 14:30 ET
Dow +124.01 at 33435.40, Nasdaq -26.39 at 12828.37, S&P +11.47 at 4221.78
[BRIEFING.COM] Stocks have retreated to session lows in the last half hour, the benchmark S&P 500 (+0.27%) still in second place.
S&P 500 constituents Devon Energy (DVN 64.74, +4.69, +7.81%), Cardinal Health (CAH 65.92, +3.17, +5.05%), and Ralph Lauren (RL 100.09, +4.57, +4.78%) pepper the top of the standings. DVN outperforms alongside gains in energy/oil exposed names, while CAH gains following earnings, and RL claws back from recent earnings-related losses.
Meanwhile, casual dining chain Chipotle Mexican Grill (CMG 1,620.21, -38.08, -2.30%) underperforms, giving back a portion of recent earnings-related gains.
Gold slips on Thursday
11-Aug-22 14:00 ET
Dow +164.27 at 33475.66, Nasdaq -6.01 at 12848.75, S&P +17.30 at 4227.61
[BRIEFING.COM] With about two hours to go on Thursday the tech-heavy Nasdaq Composite (-0.1%) has once again slipped back into the red.
Gold futures settled $6.50 lower (-0.4%) to $1,807.20/oz, owing in part to strength in treasury yields.
Meanwhile, the U.S. Dollar Index is down about -0.1% to $105.10.
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