S&P 500 declines, Nasdaq gains to start the week
13-Apr-20 16:15 ET
Dow -328.60 at 23390.77, Nasdaq +38.85 at 8192.42, S&P -28.19 at 2761.63
briefing.com
[BRIEFING.COM] The S&P 500 declined 1.0% on Monday in a slight reversal from last week's rally, while relative strength in the technology stocks helped lift the Nasdaq Composite (+0.5%). The Dow Jones Industrial Average fell 1.4%, and the Russell 2000 fell 2.8%.
There wasn't much conviction in today's session ahead of the Q1 earnings reports from the leading U.S. banks this week. Perhaps some skittishness regarding the loan-loss reserves these banks are accruing contributed to the influential drag from the S&P 500 financials sector (-3.6%).
Sellers were kept in check, though, as stocks drifted sideways for most of the session and closed well off intraday lows after a brief tumble after the open. The S&P 500 real estate sector (-4.6%) declined the most, while the consumer discretionary sector (+1.1%) finished comfortably in positive territory.
Interestingly, a multinational agreement to cut oil production was unable to stir much enthusiasm within the energy sector (-0.4%). Specifically, OPEC and other non-OPEC members agreed to cut production by 9.7 mb/d from May 1-June 30, then 7.7 mb/d from July 1-Dec. 31, and then 5.8 mb/d from Jan. 1, 2021-April 30, 2022.
WTI crude futures struggled for direction and ultimately settled the session down 2.0%, or $0.45, to $22.42/bbl, suggesting that investors were not convinced that the production cuts alone would save an industry still facing demand problems caused by COVID-19. The economy is expected to gradually reopen in May, but the speed and scope of a recovery remained uncertain.
Investors' appetite for growth, meanwhile, continued to lead buyers toward technology companies, including Amazon (AMZN 2168.87, +126.11, +6.2%), Apple (AAPL 273.25, +5.26, +2.0%), and Netflix (NFLX 396.72, +26.00, +7.0%). Amazon stepped up efforts to meet strong customer demand, while Netflix benefited from a positive note in Barron's.
Separately, shares of Caterpillar (CAT 114.14, -10.89, -8.7%) dropped nearly 9% after the stock was downgraded to Underperform from Neutral at Bank of America/Merrill Lynch.
U.S. Treasuries ended the quiet session on a lower note. The 2-yr yield increased one basis point to 0.23%, and the 10-yr yield increased two basis points to 0.75%. The U.S. Dollar Index declined 0.1% to 99.42.
Investors did not receive any economic data on Monday. Looking ahead, investors will receive Import and Export Prices for March on Tuesday.
- Nasdaq Composite -8.7% YTD
- S&P 500 -14.5% YTD
- Dow Jones Industrial Average -18.0% YTD
- Russell 2000 -27.4% YTD
Market Snapshot
| Dow | 23390.77 | -328.60 | (-1.39%) | | Nasdaq | 8192.42 | +38.85 | (0.48%) | | SP 500 | 2761.63 | -28.19 | (-1.01%) | | 10-yr Note | -2/32 | 0.755 |
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| | NYSE | Adv 773 | Dec 2155 | Vol 1.2 bln | | Nasdaq | Adv 1270 | Dec 1979 | Vol 3.1 bln |
Industry Watch
| Strong: Consumer Discretionary, Information Technology, Communication Services |
| | Weak: Financials, Real Estate, Utilities |
Moving the Market
-- S&P 500 declines, Nasdaq gains to start the week
-- OPEC and non-OPEC members agree to cut oil production by 9.7 million b/d from May 1-June 30
-- Relative weakness in the financials sector ahead of Q1 earnings reports this week
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WTI crude settles lower despite production cut agreement
13-Apr-20 15:25 ET
Dow -396.65 at 23322.72, Nasdaq -3.80 at 8149.77, S&P -38.54 at 2751.28
[BRIEFING.COM] The S&P 500 is currently down 1.3%, while the Nasdaq has returned to its flat line.
One last look at the S&P 500 sectors shows consumer discretionary (+1.0%) as the lone sector trading higher, while the real estate (-4.5%), utilities (-3.5%), and financials (-3.4%) sectors weigh on the broader market.
WTI crude futures settled today's session down $0.45 (-2.0%) to $22.42/bbl despite OPEC and non-OPEC members agreeing to production cuts that last through April 2022. |
