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Market Snapshot
briefing.com
| Dow | 36142.22 | +54.77 | (0.15%) | | Nasdaq | 15973.86 | +120.01 | (0.76%) | | SP 500 | 4700.90 | +18.10 | (0.39%) | | 10-yr Note | -1/32 | 1.627 |
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| | NYSE | Adv 1477 | Dec 1750 | Vol 787.2 mln | | Nasdaq | Adv 2099 | Dec 2485 | Vol 5.4 bln |
Industry Watch
| Strong: Consumer Discretionary, Information Technology |
| | Weak: Real Estate, Consumer Staples, Utilities, Communication Services |
Moving the Market
-- Better-than-expected economic data, including retail sales for October
-- Walmart (WMT) and Home Depot (HD) reported better-than-expected earnings results, but WMT shares closed lower
-- Credit Suisse assumed coverage on Microsoft (MSFT) and other software stocks with Outperform ratings
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S&P 500 closes shy of a record high
16-Nov-21 16:20 ET
Dow +54.77 at 36142.22, Nasdaq +120.01 at 15973.86, S&P +18.10 at 4700.90
[BRIEFING.COM] The S&P 500 gained 0.4% on Tuesday, and just missed closing at a record high, amid a host of positive-sounding developments. The Nasdaq Composite outperformed with a 0.8% gain, while the Dow Jones Industrial Average (+0.2%) and Russell 2000 (+0.2%) both increased just 0.2%.
The heavily-weighted information technology (+1.1%) and consumer discretionary (+1.4%) sectors provided steady leadership with gains over 1.0%, but the broader market slipped into the close on no specific news.
Seven of the 11 S&P 500 sectors closed lower, including real estate (-0.7%), consumer staples (-0.6%), and utilities (-0.6%) as laggards. Declining issues outnumbered advancing issues at the NYSE and Nasdaq. Evidently, the index gains belied a negative-leaning session.
At its high, the S&P 500 was up 0.7% in part due to today's economic data: retail sales for October, industrial production and capacity utilization for October, and the NAHB Housing Market Index for November were each better than expected. Total retail sales were up 1.7% m/m in October (Briefing.com consensus +1.2%).
In addition, Walmart (WMT 143.17, -3.74, -2.6%) and Home Depot (HD 392.33, +21.25, +5.7%) reported better-than-expected earnings results, Microsoft (MSFT 339.51, +3.44, +1.0%) and other software stocks were assumed with Outperformed ratings at Credit Suisse, and Qualcomm (QCOM 181.81, +13.30, +7.9%) provided pleasing updates on its Investor Day.
Interestingly, shares of Walmart fell 2.6% despite the good news, perhaps due to some disappointment that the company plans to eat some of the higher costs in order to keep prices low.
Separately, President Biden said he will nominate a Fed Chair in "about four days." On a related note, San Francisco Fed President Daly (2021 voting member) reiterated expectations for a moderation in price pressures as the pandemic recedes.
The Treasury market held steady, even as import and export prices stayed hot in October. The 2-yr yield was unchanged at 0.52%, and the 10-yr yield increased one basis point to 1.63%. The U.S. Dollar Index advanced 0.6% to 95.96. WTI crude futures decreased 0.1%, or $0.08, to $80.77/bbl.
Reviewing Tuesday's economic data:
- Total retail sales increased 1.7% month-over-month in October (Briefing.com consensus +1.2%) on top of an upwardly revised 0.8% increase (from 0.7%) in September. Excluding autos, retail sales also rose 1.7% (Briefing.com consensus +0.9%) following a downwardly revised 0.7% increase (from 0.8%) in September.
- The key takeaway from the report is that spending picked up across most retail categories, reflecting the dissipating impact of the Delta variant. The lone exceptions were health and personal care stores (-0.6%) and clothing and clothing accessories stores (-0.7%).
- Total industrial production increased 1.6% in October (Briefing.com consensus +0.8%) following an unrevised 1.3% decline in September. The capacity utilization rate rose to 76.4% (Briefing.com consensus 75.9%) from an unrevised 75.2% in September. That was the highest capacity utilization rate since January 2019.
- The key takeaway from the report is that it points to a lot of latent growth potential when the semiconductor supply shortage, and other supply chain issues, can get worked out.
- The NAHB Housing Market Index increased to 83.0 in November (Briefing.com consensus 80.0) from 80.0 in October.
- Business inventories increased 0.7% m/m in September (Briefing.com consensus 0.6%) following an upwardly revised 0.8% increase (from +0.6%) in August.
- Import prices jumped 1.2% month-over-month and export prices increased 1.5%. On a year-over-year basis, import prices were up 10.7% (+5.5% excluding fuel) and export prices were up 18.0% (+17.2% excluding agricultural exports).
Looking ahead, investors will receive Housing Starts and Building Permits for October and the weekly MBA Mortgage Applications Index on Wednesday.
- S&P 500 +25.2% YTD
- Nasdaq Composite +23.9% YTD
- Russell 2000 +21.8% YTD
- Dow Jones Industrial Average +18.1% YTD
Crude futures settle fractionally lower
16-Nov-21 15:30 ET
Dow +117.00 at 36204.45, Nasdaq +120.96 at 15974.81, S&P +24.20 at 4707.00
[BRIEFING.COM] The S&P 500 continues to trade higher by 0.5% and is on pace to close at a record high.
One last look at the sectors shows information technology (+1.1%) and consumer discretionary (+1.3%) setting the pace with gains over 1.0%. Conversely, the real estate (-0.6%), consumer staples (+0.4%), communication services (-0.3%), and utilities (-0.3%) sectors underperform in the red.
WTI crude futures settled lower by 0.1%, or $0.08, to $80.77/bbl. |
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