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Market Snapshot
briefing.com
| Dow | 30677.36 | +194.23 | (0.64%) | | Nasdaq | 11232.18 | +179.11 | (1.62%) | | SP 500 | 3795.73 | +35.84 | (0.95%) | | 10-yr Note |
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| | NYSE | Adv 1974 | Dec 1328 | Vol 1.0 bln | | Nasdaq | Adv 2890 | Dec 1698 | Vol 5.1 bln |
Industry Watch
| Strong: Consumer Staples, Real Estate, Utilities, Health Care, Communication Services, Information Technology, Consumer Discretionary |
| | Weak: Energy, Materials, Industrials, Financials |
Moving the Market
-- Continued rebound effort from short-term oversold condition
-- Weakness in cyclical sectors
-- Drop in Treasury yields
-- Leadership from the mega caps
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Closing Summary
23-Jun-22 16:15 ET
Dow +194.23 at 30677.36, Nasdaq +179.11 at 11232.18, S&P +35.84 at 3795.73
[BRIEFING.COM] The stock market had a seesaw day of trading today, but the fulcrum in any case was the persistence of growth concerns.
Those concerns were evident in the underperformance of the cyclical energy (-3.7%), materials (-1.4%), financial (-0.5%), and industrials (-0.5%) sectors, falling prices for oil ($104.24, -1.83, -1.7%) and copper ($3.74, -0.22, -5.4%), and another run of buying interest in the Treasury market.
They were also evident in the outperformance of the mega-cap stocks, which were accorded some benefit of the doubt that their earnings prospects will hold up better in a tougher economic environment. On that same note, the countercyclical utilities (+2.4%), health care (+2.2%), and consumer staples (+2.0%) sectors were leaders throughout the day along with the real estate sector (+2.0%), which drafted off the drop in interest rates.
The 2-yr note yield kissed 2.88% this morning after scraping 3.43% in June 14. The 10-yr note yield cruised to 3.02% after flirting with 3.50% on June 14. The 2-yr note yield and the 10-yr note yield eventually settled the cash session at 3.01% and 3.07%, respectively.
Strikingly, the indices came off their lows of the day as Treasuries came off their highs for the day in afternoon trading. The late burst of buying interest, just like the opening burst of buying interest, was paced by the mega-cap stocks. The Vanguard Mega-Cap Growth ETF (MGK) was up 1.6% early, saw that gain get pared to unchanged, and then closed near its high for the session, up 1.8%.
That revival helped the S&P 500 eclipse the 3,800 level late in the day, but as was the case earlier in the day, sellers stepped in just before the closing bell to knock the S&P 500 back below 3,800.
Nevertheless, today can still be construed as a good day for the bulls. Granted cyclical sectors were weak, but money rotated within the stock market instead of out of it altogether on the growth concerns. In turn, the market once again showed resilience to selling activity despite a band of bad headline news that included a larger-than-expected 50-basis point rate hike by the Norges Bank, reports that Russia is close to taking over the Luhansk Province, and weaker-than-expected preliminary June manufacturing and services PMI readings for the eurozone and the U.S.
The resilience in the face of that bad news was additive to the belief that the market has scope to forge a nice rebound effort from deeply oversold conditions into quarter end on rebalancing activity.
Separately, Fed Chair Powell appeared before the House Financial Services Committee for day two of his Semiannual Monetary Policy Report to Congress. The views expressed there were predominately a rehash of what he said Wednesday before the Senate Banking Committee, so there was a muted reaction to his remarks.
Reviewing today's economic data:
- Initial claims for the week ending June 18 decreased by 2,000 to 229,000 (Briefing.com consensus 230,000) while continuing claims for the week ending June 11 increased by 5,000 to 1.315 million.
- The key takeaway from the report is that it is another reminder that the improvement in initial jobless claims has stalled. Nonetheless, they remain at low enough levels that support expectations for another solid increase in nonfarm payrolls in June. This report covers the week in which the survey for the June employment report was conducted.
- The preliminary June IHS Markit Manufacturing PMI reading was 52.4 compared to 57.0 for May. The preliminary June IHS Markit Services PMI reading was 51.6 compared to 53.4 for May.
- The Q1 Current Account Balance widened to -$291.4 billion (Briefing.com consensus -$279.0 billion) from a downwardly revised -$224.8 billion (from -$217.9 billion) in Q1.
Looking ahead, market participants will receive the May New Home Sales Report (10:00 a.m. ET) and final reading for the June University of Michigan Index of Consumer Sentiment (10:00 a.m. ET) on Friday.
- Dow Jones Industrial Average: -15.6% YTD
- S&P 500: -20.4% YTD
- S&P 400: -20.8% YTD
- Russell 2000: -23.9% YTD
- Nasdaq Composite: -28.2% YTD
Energy complex and Treasury yields down into the close
23-Jun-22 15:30 ET
Dow +97.77 at 30580.90, Nasdaq +142.09 at 11195.16, S&P +24.92 at 3784.81
[BRIEFING.COM] The major indices are all trending upward in recent action with the Nasdaq (+1.2%) up near its session high.
The energy complex futures all settled the session lower today. WTI crude oil futures settled down 1.7% to $104.24/bbl. Natural gas futures settled down 8.9% to $6.26/mmbtu. Unleaded gasoline futures settled down 1.8% to $3.66/gal.
In addition, Treasury yields settled down for the day but up slightly from their lows. The 10-yr note yield, down to 3.01% earlier, settled the session down nine basis points to 3.07%. The 2-yr note yield, down to 2.88% earlier, settled down four basis points to 3.01%.
Looking ahead to Friday, market participants will receive new home sales for May at 10:00 a.m. ET (Briefing.com consensus 595,000; prior 591,000) and the University of Michigan Consumer Sentiment final reading for June (Briefing.com consensus 50.2; prior 50.2) also at 10:00 a.m. ET.
Indices come off their lows, cyclical sectors lag
23-Jun-22 15:00 ET
Dow +20.20 at 30503.33, Nasdaq +107.07 at 11160.14, S&P +13.62 at 3773.51
[BRIEFING.COM] The major indices have all come off their session lows in recent trading. The S&P 500, up 0.4%, sits in second place among the three main indices.
The countercyclical S&P 500 sectors are leading the outperformers today and week-to-date. The consumer staples (+1.8%), utilities (+2.0%), and health care (+1.9%) sectors are all showing gains of at least one percent on the day and week-to-date gains of 4.4%, 5.1%, and 4.1%, respectively.
As money is rotating into the countercyclical sectors, the cyclical sectors lag. Energy (-4.5%) and materials (-1.8%) are the only sectors in the red week-to-date, down -3.8% and -1.7%, respectively.
FactSet outperforms following earnings
23-Jun-22 14:30 ET
Dow -66.44 at 30416.69, Nasdaq +72.01 at 11125.08, S&P +5.07 at 3764.96
[BRIEFING.COM] The major averages remain mixed on Thursday afternoon, the S&P 500 (+0.13%) firming up modest gains from the prior half hour.
S&P 500 constituents FactSet (FDS 388.07, +28.13, +7.82%), Autodesk (ADSK 181.46, +12.31, +7.28%), and Whirlpool (WHR 159.78, +6.98, +4.57%) dot the top of the index standings. FDS outperforms on Thursday following earnings, while beaten-down names ADSK and WHR claw back a portion of recent losses.
Meanwhile, Mosaic (MOS 45.55, -4.48, -8.95%) underperforms today, dragged lower by losses in the materials space (-2.01%) as well as underwhelming May sales.
Gold notches fourth consecutive loss on Thursday
23-Jun-22 14:00 ET
Dow -69.18 at 30413.95, Nasdaq +59.33 at 11112.40, S&P +2.75 at 3762.64
[BRIEFING.COM] The broader market remains split to this point on Thursday, the tech-heavy Nasdaq Composite (+0.54%) still holding a commanding lead over its counterparts.
Gold futures settled $8.60 lower (-0.5%) to $1,829.80/oz, firmly off earlier gains, pressured in part by ongoing recession fears as well as a modestly higher dollar.
Meanwhile, the U.S. Dollar Index is about +0.3% higher to $104.50.
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