Market Snapshot
briefing.com
| Dow | 36124.23 | -33.35 | (-0.09%) | | Nasdaq | 15940.30 | +128.72 | (0.81%) | | SP 500 | 4680.06 | +19.49 | (0.42%) | | 10-yr Note | +29/32 | 1.522 |
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| | NYSE | Adv 1438 | Dec 1779 | Vol 905.4 mln | | Nasdaq | Adv 2021 | Dec 2486 | Vol 5.2 bln |
Industry Watch
| Strong: Information Technology and Consumer Discretionary |
| | Weak: Financials, Health Care, Real Estate |
Moving the Market
-- S&P 500 and Nasdaq extend post-FOMC gains
-- Qualcomm (QCOM) provides positive earnings report and upbeat guidance
-- Treasury yields drop as market digests yesterday's Fed commentary
-- Strength in the large growth stocks, weakness in the value stocks
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Nasdaq 100 comes out on top in record session
04-Nov-21 16:15 ET
Dow -33.35 at 36124.23, Nasdaq +128.72 at 15940.30, S&P +19.49 at 4680.06
[BRIEFING.COM] The S&P 500 gained 0.4% on Thursday, setting intraday and closing record highs, as strength in the large growth stocks outweighed weakness in the value stocks. The Nasdaq 100, which is heavily exposed to mega-cap growth, rallied 1.3% to outdo the record-setting advance in the Nasdaq Composite (+0.8%).
The Dow Jones Industrial Average (-0.1%) and Russell 2000 (-0.1%) closed slightly lower, burdened by the losses in value stocks. The Russell 1000 Value Index fell 0.4%.
Two factors that catalyzed the outperformance of the Nasdaq 100 were noticeable drops in interest rates and positive earnings results and guidance from Qualcomm (QCOM 156.11, +17.63, +12.7%). The former was rooted in tempered rate-hike/inflation expectations after the FOMC meeting yesterday. The latter helped drive NVIDIA (NVDA 298.01, +32.03, +12.0%) to a 12% gain.
Accordingly, the S&P 500 information technology sector, which is home to the semiconductor stocks, rose 1.5%. The consumer discretionary sector (+1.5%) tied for the lead amid strength in Amazon.com (AMZN 3477.00, +93.00, +2.8%) and Tesla (TSLA 1229.91, +16.05, +1.3%).
The broader market, however, didn't look so hot with the ratio of advancing to declining issues favoring the latter at the NYSE and Nasdaq. Laggards were found in the financials (-1.3%), real estate (-1.1%), and health care (-0.8%) sectors.
Investors shied away from the rate-sensitive financial stocks amid the decline in Treasury yields: the 2-yr yield fell six basis points to 0.41%, and the 10-yr yield fell six basis points to 1.52%. The U.S. Dollar Index rose 0.5% to 94.32.
Moderna (MRNA 284.02, -61.90, -17.9%) held back the health care sector, and even the Nasdaq 100, with an 18% decline following some disappointing earnings news. Roku (ROKU 289.39, -24.27, -7.7%) was another high-profile earnings loser.
In other developments, WTI crude futures ($78.77, -2.04, -2.5%) extended their pullback below $80/bbl after OPEC+ agreed to maintain its current production schedule for December. The Joint Committee on Taxation said the Build Back Better Act will raise $1.5 trillion over 10 years in new taxes. Weekly jobless claims continued to trend in the right direction.
Reviewing Thursday's economic data:
- Initial jobless claims for the week ending October 30 decreased by 14,000 to 269,000 (Briefing.com consensus 277,000). Continuing claims for the week ending October 23 decreased by 134,000 to 2.105 million.
- The key takeaway from the report is that the declining level of initial claims fits the script of a labor market that is reportedly brimming with job openings.
- Third quarter productivity decreased 5.0% (Briefing.com consensus -1.5%) after increasing an upwardly revised 2.4% (from 2.1%) in the second quarter. Unit labor costs surged at an annual rate of 8.3% (Briefing.com consensus +5.8%) after increasing a downwardly revised 1.1% (from 1.3%) in the second quarter.
- The key takeaway from the report is that it was the lowest level of productivity since the second quarter of 1981 and reflects the labor cost pressures that are building with the weak productivity.
- The September trade deficit was worse than expected, hitting a record high $80.9 billion (Briefing.com consensus $71.0 billion) after an upwardly revised $72.8 billion deficit (from $73.3 billion) in August.
- The key takeaway from the report is the connection that supply chain issues, transportation bottlenecks, and COVID prevention measures have detracted from global trading activity.
Looking ahead, investors will receive the Employment Situation Report for October and Consumer Credit for September on Friday.
- S&P 500 +24.6% YTD
- Nasdaq Composite +23.7% YTD
- Russell 2000 +21.7% YTD
- Dow Jones Industrial Average +18.0% YTD
Crude futures extend pullback after OPEC+ decision
04-Nov-21 15:30 ET
Dow -124.13 at 36033.45, Nasdaq +123.43 at 15935.01, S&P +11.51 at 4672.08
[BRIEFING.COM] The S&P 500 is up 0.3% and on track to close at a record high.
One last look at the S&P 500 sectors shows consumer discretionary (+1.6%), and information technology (+1.6%) sharing the lead with 1.6% gains amid strength in the mega-caps. The financials (-1.8%), health care (-1.4%), and real estate (-1.2%) sectors, though, are down over 1.0%.
WTI crude futures settled sharply lower by 2.5%, or $2.04, to $78.77/bbl after OPEC+ agreed to maintain its production output plan for December. OPEC+ will increase production by 400,000 barrels per day. |
