S&P 500 declines for third straight session
21-Nov-19 16:25 ET
Dow -54.80 at 27766.20, Nasdaq -20.52 at 8506.21, S&P -4.92 at 3103.54
briefing.com
[BRIEFING.COM] The S&P 500 lost 0.2% on Thursday for its third straight decline amid some trade-headline exhaustion. The Dow Jones Industrial Average (-0.2%) and Nasdaq Composite (-0.2%) performed in-line with the benchmark index, while the Russell 2000 (-0.5%) underperformed.
Today's trade news had little to do with actual progress and didn't help clarify any uncertainty. Chinese Vice Premier Liu He reportedly extended an invitation to host another round of talks in Beijing and is "cautiously optimistic" about a deal. It was also speculated that the Dec. 15 tariffs could be delayed, even if a deal gets pushed back to next year.
With the market still trading near all-time highs, then, it appeared to be an opportune time to comfortably take some profits. Eight of the 11 S&P 500 sectors finished lower, with the real estate sector (-1.4%) declining the most. The Philadelphia Semiconductor Index pulled back 1.1% after UBS downgraded a trio of semiconductor-equipment companies to Sell.
The energy sector (+1.6%) was today's outright leader, as oil prices ($56.58, +1.67, +2.9%) reacted positively to a Reuters report indicating that OPEC+ is likely to extend production cuts until June 2020.
Perhaps the biggest story of the day, though, was Charles Schwab (SCHW 48.03, +3.28, +7.3%) holding talks to acquire TD Ameritrade (AMTD 48.38, +7.00, +16.9%). CNBC and FOX Business both broke the news, with the latter placing a $26 billion price tag on the potential deal. Both stocks rose considerably, while shares of E*Trade (ETFC 41.58, -4.28, -9.3%) fell 9%.
On the earnings front, the retail space remained in focus. L Brands (LB 17.17, +1.58, +10.1%) was in demand after the company guided Q4 EPS above consensus, while Macy's (M 14.67, -0.35, -2.3%) and BJ's Wholesale (BJ 23.84, -2.09, -8.1%) went on sale following their discouraging results and guidance.
The recent advance in the Treasury market was halted, sending yields higher across the curve. The 2-yr yield increased four basis points to 1.61%, and the 10-yr yield increased three basis points to 1.77%. The U.S. Dollar Index was little changed at 97.98.
Reviewing Thursday's economic data:
- Initial claims for the week ending November 16 were unchanged at 227,000 (Briefing.com consensus 216,000). Continuing claims for the week ending November 9 were up 3,000 to 1.695 million.
- The key takeaway from the report is that initial claims have been more elevated than usual in recent weeks, suggesting perhaps that they have reached their cyclical bottom. Even so, they remain at relatively low levels indicative of an otherwise solid labor market.
- Existing home sales increased 1.9% month-over-month in October to a seasonally-adjusted annual rate of 5.46 million (Briefing.com consensus 5.50 mln) from a downwardly revised 5.36 million (from 5.38 million) in September. Total sales were 4.6% higher than the same period a year ago.
- The key takeaway from the report is that upward pressure on prices is likely to persist as the inventory of unsold homes continues to decline while mortgage rates, and unemployment rates, remain low.
- The Conference Board's Leading Economic Index (LEI) declined 0.1% in October, in-line with the Briefing.com consensus estimate. The reading for September was revised down to -0.2% (from -0.1%). The October reading was the third straight monthly decline in the Leading Economic Index.
- The key takeaway from the report is that the third straight monthly decline left the LEI's six-month growth (-0.1%) in slightly negative territory, which is the first foray into negative territory since May 2016.
- The Philadelphia Fed Index for November increased to 10.4 (Briefing.com consensus 5.5) from the 5.6 in October.
Looking ahead, investors will receive the revised reading for the University of Michigan's Index of Consumer Sentiment for November on Friday.
- Nasdaq Composite +28.2% YTD
- S&P 500 +23.8% YTD
- Dow Jones Industrial Average +19.0% YTD
- Russell 2000 +17.5% YTD
Market Snapshot
| Dow | 27766.20 | -54.80 | (-0.20%) | | Nasdaq | 8506.21 | -20.52 | (-0.24%) | | SP 500 | 3103.54 | -4.92 | (-0.16%) | | 10-yr Note | -24/32 | 1.778 |
|
| | NYSE | Adv 1127 | Dec 1718 | Vol 827.8 mln | | Nasdaq | Adv 1320 | Dec 1772 | Vol 2.1 bln |
Industry Watch
| Strong: Energy, Communication Services, Health Care |
| | Weak: Real Estate, Consumer Staples, Consumer Discretionary |
Moving the Market
-- S&P 500, Dow close lower for third straight session
-- Trade-headline exhaustion; familiar "optimistic" tone
-- Charles Schwab (SCHW) reportedly in talks to acquire TD Ameritrade (AMTD)
-- Strength in the battered energy sector, oil prices gain
|
WTI crude gains nearly 3%
21-Nov-19 15:30 ET
Dow -28.09 at 27792.91, Nasdaq -13.04 at 8513.69, S&P -2.54 at 3105.92
[BRIEFING.COM] The S&P 500 currently trades lower by 0.1%. At its low, the benchmark index was down 0.5%.
One last look at the S&P 500 sectors shows real estate (-1.2%) declining the most today. The consumer discretionary sector (-0.4%) follows suit. Conversely, the energy sector (+1.5%) is today's outright leader for the second straight session.
WTI crude settled $1.67 (+2.9%) higher to $58.58/bbl following a Reuters report indicating that OPEC+ production cuts are likely to extend through June 2020. |
