Market Snapshot
briefing.com
| Dow | 35259.14 | -35.62 | (-0.10%) | | Nasdaq | 15021.80 | +124.47 | (0.84%) | | SP 500 | 4486.48 | +15.11 | (0.34%) | | 10-yr Note | -23/32 | 1.587 |
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| | NYSE | Adv 1566 | Dec 1669 | Vol 779.0 mln | | Nasdaq | Adv 2003 | Dec 2432 | Vol 4.1 bln |
Industry Watch
| Strong: Information Technology, Consumer Discretionary, Communication Services |
| | Weak: Utilities, Health Care, Consumer Staples |
Moving the Market
-- Resilient price action
-- Oil prices and interest rates back down from prior highs
-- Strength in the mega-caps
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Mega-caps lift S&P 500 to a fourth straight gain
18-Oct-21 16:20 ET
Dow -35.62 at 35259.14, Nasdaq +124.47 at 15021.80, S&P +15.11 at 4486.48
[BRIEFING.COM] The S&P 500 increased 0.3% on Monday, overcoming an early 0.5% decline for its fourth straight gain. The mega-caps did the heavy lifting and drove the outperformance of the Nasdaq Composite (+0.8%). The Dow Jones Industrial Average (-0.1%) and Russell 2000 (+0.1%) finished closer to their flat lines, with the Dow in the red.
Seven of the 11 S&P 500 sectors closed higher, led by the heavily-weighted consumer discretionary (+1.2%), information technology (+0.9%), and communication services (+0.7%) sectors. Conversely, the utilities (-0.7%), health care (-0.7%), consumer staples (-0.5%), and materials (-0.1%) sectors closed lower.
The negative start was attributed to softer-than-expected data out of China (Q3 GDP, industrial production, and fixed asset management), a 1.3% m/m decline in U.S. industrial production for September (Briefing.com consensus +0.2%), and higher interest rates as oil prices broke above $83.00/bbl.
The stock market quickly recouped losses, though, as oil prices and Treasury yields backpedaled from early highs on no specific news. WTI crude futures settled higher by just 0.2%, or $0.18, to $82.44/bbl. The 10-yr yield settled higher by one basis point to 1.58% after flirting with 1.63% intraday.
The retracement in yields was a supportive factor for the growth stocks, especially the mega-caps, which padded gains in the afternoon while the broader market tracked sideways. The Vanguard Mega Cap Growth ETF (MGK 246.21, +2.51) rose 1.0%, while the Invesco S&P 500 Equal Weight ETF (RSP 155.76, +0.06, +0.04%) closed little changed.
Apple (AAPL 146.55, +1.71, +1.2%) seemed to provide an additional boost in the mega-cap trade after unveiling a new MacBook Pro, the third generation of AirPods, and a new subscription tier for Apple Music. AAPL shares rose 1.2% after being up 0.3% right before its product event.
Walt Disney (DIS 171.17, -5.29, -3.0%), however, was an individual drag on the Dow after the stock was downgraded to Equal Weight from Overweight at Barclays. The firm expressed caution in the company achieving its long-term streaming subscription guidance. Disney shares fell 3.0%.
The 2-yr yield increased two basis points to 0.42%. The U.S. Dollar Index was little changed at 93.96.
Reviewing Monday's economic data:
- Total industrial production decreased 1.3% in September (Briefing.com consensus +0.2%) following a downwardly revised 0.1% decline in August (from +0.4%). The capacity utilization rate dropped to 75.2% (Briefing.com consensus 76.5%) from a downwardly revised 76.2% in August (from 76.4%).
- The key takeaway from the report is that industrial production was weak in September due to the effects of Hurricane Ida and the ongoing semiconductor supply shortage.
- The NAHB Housing Market Index increased to 80 in October (Briefing.com consensus 75) from 76 in September.
Looking ahead, investors will receive Housing Starts and Building Permits for September on Tuesday.
- S&P 500 +19.5% YTD
- Nasdaq Composite +16.6% YTD
- Dow Jones Industrial Average +15.2% YTD
- Russell 2000 +14.8% YTD
Crude futures pare early gains and settle slightly higher
18-Oct-21 15:30 ET
Dow -55.86 at 35238.90, Nasdaq +116.99 at 15014.32, S&P +12.92 at 4484.29
[BRIEFING.COM] The S&P 500 is up 0.3% and is vying for its fourth straight advance.
One last look at the sector performances shows information technology (+0.8%), consumer discretionary (+1.2%), and communication services (+0.5%) leading the advance amid strength in the mega-caps, while the health care (-0.7%), utilities (-0.7%), and consumer staples (-0.4%)
WTI crude futures settled higher by just 0.2%, or $0.18, to $82.44/bbl after peaking at $83.19/bbl intraday. |
