Profits taken but Apple hits $2 trillion market cap
19-Aug-20 16:15 ET
Dow -85.19 at 27692.88, Nasdaq -64.38 at 11146.54, S&P -14.93 at 3374.85
briefing.com
[BRIEFING.COM] The S&P 500 declined 0.4% on Wednesday, as investors presumably took some profits after the benchmark index set a new all-time high and Apple (AAPL 462.83, +0.58, +0.1%) reached a $2 trillion market capitalization. The Dow Jones Industrial Average lost 0.3%, and the Nasdaq Composite lost 0.6%. The Russell 2000 gained 0.2%.
All 11 S&P 500 sectors closed in negative territory as selling accelerated into the close. The real estate (-2.0%), energy (-1.2%), consumer staples (-0.7%), and consumer discretionary (-0.7%) sectors weighed on the market, while the financials sector (-0.1%) finished just below its flat line.
The day started in a slow grind higher amid an absence of new macro catalysts, which was good for the positive momentum in Apple and, in effect, the major indices. The S&P 500 was only up 0.3% at its high, and a hair below the 3400 level, before turning negative shortly after the FOMC Minutes were released at 2:00 p.m. ET.
Nothing surprising was stated in the minutes, but officials remained concerned about the economy and possibility of a protracted recovery; members discussing yield caps thought yield caps and targets would provide only modest benefits in the current environment. The latter acknowledgement supported the selling pressure in the Treasury market that left yields little changed.
The 2-yr yield was flat at 0.14%, and the 10-yr yield was flat at 0.67%. The U.S. Dollar Index rebounded 0.8% to 92.99, while gold futures pulled back 2.1% to $1970.10/oz. WTI crude futures were flat at $42.90/bbl.
In retail earnings, Target (TGT 154.22, +17.32, +12.7%) and Lowe's (LOW 158.28, +0.37, +0.2%) reported strong earnings results, but Target's 12% gain set it apart. TJX Cos. (TJX 54.36, -3.09, -5.4%) fell 5% after reporting a larger-than-expected quarterly loss.
Separately, Johnson & Johnson (JNJ 150.39, +0.30, +0.2%) agreed to acquire Momenta Pharma (MNTA 52.12, +21.31, +69.2%) for about $6.5 billion in cash, or a 70% premium to yesterday's closing price.
Wednesday's economic data was limited to the weekly MBA Mortgage Applications Index, which decreased 3.3% following a 6.8% increase in the prior week. Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Conference Board's Leading Economic Index for July, and the Philadelphia Fed Index for August on Thursday.
- Nasdaq Composite +24.2% YTD
- S&P 500 +4.5% YTD
- Dow Jones Industrial Average -3.0% YTD
- Russell 2000 -5.8% YTD
Market Snapshot
| Dow | 27692.88 | -85.19 | (-0.31%) | | Nasdaq | 11146.54 | -64.38 | (-0.57%) | | SP 500 | 3374.85 | -14.93 | (-0.44%) | | 10-yr Note | -2/32 | 0.688 |
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| | NYSE | Adv 1202 | Dec 1756 | Vol 766.0 mln | | Nasdaq | Adv 1477 | Dec 1777 | Vol 3.4 bln |
Industry Watch
| Strong: Financials |
| | Weak: Real Estate, Consumer Staples, Energy, Consumer Discretionary |
Moving the Market
-- Investors take profits following release of FOMC Minutes
-- S&P 500 sets new high, Apple (AAPL) hits $2 trillion market cap
-- Target (TGT) jumped 12% on strong earnings
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WTI crude futures settled flat
19-Aug-20 15:25 ET
Dow +12.89 at 27790.96, Nasdaq -26.34 at 11184.58, S&P -4.32 at 3385.46
[BRIEFING.COM] The S&P 500 is down 0.1% amid losses in eight of its 11 sectors.
One last look at the S&P 500 sectors shows real estate (-1.7%), energy (-0.8%), and consumer staples (-0.6%) down the most, while the financials sector (+0.4%) is up the most but not by much.
WTI crude futures settled little changed at $42.90/bbl. |
