Market Snapshot
briefing.com
| Dow | 34003.19 | -323.27 | (-0.94%) | | Nasdaq | 14255.49 | -311.21 | (-2.14%) | | SP 500 | 4300.49 | -56.55 | (-1.30%) | | 10-yr Note | -23/32 | 1.476 |
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| | NYSE | Adv 1174 | Dec 2107 | Vol 1.0 bln | | Nasdaq | Adv 1259 | Dec 2797 | Vol 4.5 bln |
Industry Watch
| Strong: Energy, Utilities, Real Estate |
| | Weak: Information Technology, Communication Services, Health Care |
Moving the Market
-- Weakness in the mega-cap stocks
-- Facebook (FB) fell 5% amid whistleblower complaint
-- Energy stocks followed oil prices higher
-- Infrastructure expectations dialed back
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Mega-caps dragged market lower
04-Oct-21 16:15 ET
Dow -323.27 at 34003.19, Nasdaq -311.21 at 14255.49, S&P -56.55 at 4300.49
[BRIEFING.COM] The S&P 500 fell 1.3% on Monday, coughing up last Friday's rebound rally, amid noticeable weakness in the mega-cap stocks. The Nasdaq Composite was disproportionally affected with a 2.1% decline while the Dow Jones Industrial Average (-0.9%) and Russell 2000 (-1.1%) declined closer to 1.0%.
The major indices, except for the Nasdaq, started the session little changed, but it didn't take long for the mega-cap losses to trickle over to the broader market. The disappointing price action extended a recent trend of selling into strength amid unresolved issues on infrastructure, the debt ceiling, supply chain logistics, and raw material inflation.
The Vanguard Mega Cap Growth ETF (MGK 232.18, -5.33) fell 2.2% while the Invesco S&P 500 Equal Weight ETF (RSP 150.88, -0.96) declined 0.6%. Eight of the 11 S&P 500 sectors finished lower, led by the information technology (-2.4%) and communication services (-2.1%) sectors with losses over 2.0%.
Facebook (FB 326.23, -16.78, -4.9%) was the big loser amid claims from a whistleblower that the company prioritized profits over safety. The semiconductor space was another weak spot amid an observation from Marvell (MRVL 57.59, -2.24, -3.7%) that the semiconductor shortage could extend through 2022. The Philadelphia Semiconductor Index fell 2.5%.
The energy (+1.6%), utilities (+1.4%), and real estate (+0.1%) sectors bucked the negative trend. Energy stocks followed oil prices ($77.69/bbl, +1.82, +2.4%) higher after OPEC+ agreed to maintain its plan for gradual supply increases, which was expected.
Tesla (TSLA 781.53, +6.31, +0.8%) was spared from the mega-cap selling after the company reported a record number of deliveries (241,300 vehicles) in the third quarter.
In Washington, the House will reportedly delay its vote on the $1 trillion bipartisan infrastructure bill until a deal is reached on the larger reconciliation package. President Biden suggested the latter could be trimmed down to $1.9-2.3 trillion from $3.5 trillion. Separately, the USTR confirmed that current Chinese tariffs will remain in place.
U.S. Treasuries settled mostly lower, meaning yields rose modestly. The 10-yr yield increased two basis points to 1.48%, and the 2-yr yield increased one basis point to 0.27%. The U.S. Dollar Index decreased 0.3% to 93.78.
Monday's economic data was limited to Factory Orders for August, which increased 1.2% (Briefing.com consensus 1.0%) following an upwardly revised 0.7% increase (from +0.4%) in July. On Tuesday, investors will receive the ISM Non-Manufacturing Index for September, the Trade Balance for August, and the final IHS Markit Services PMI for September.
- S&P 500 +14.5% YTD
- Russell 2000 +12.4% YTD
- Nasdaq Composite +10.6% YTD
- Dow Jones Industrial Average +11.1% YTD
Crude futures settle sharply higher
04-Oct-21 15:30 ET
Dow -375.53 at 33950.93, Nasdaq -355.63 at 14211.07, S&P -66.88 at 4290.16
[BRIEFING.COM] The S&P 500 continues to struggle with a 1.5% decline amid losses in eight of its 11 sectors.
The information technology (-2.7%) and communication services (-2.5%) sectors are down more than 2.0% amid weakness in their mega-cap components and the semiconductor stocks. Conversely, the energy (+1.6%), utilities (+1.2%), and real estate (+0.1%) sectors trade higher.
WTI crude futures settled higher by 2.4%, or $1.82, to $77.69/bbl. On a related note, OPEC+ agreed to maintain its plan for gradual supply increases, which was expected. |
