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Market Snapshot
briefing.com
| Dow | 32805.35 | +76.65 | (0.23%) | | Nasdaq | 12657.51 | -63.03 | (-0.50%) | | SP 500 | 4145.26 | -6.75 | (-0.16%) | | 10-yr Note |
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| | NYSE | Adv 1459 | Dec 1660 | Vol 825 mln | | Nasdaq | Adv 2383 | Dec 2043 | Vol 4.8 bln |
Industry Watch
| Strong: Energy, Financials, Materials, Real Estate, Industrials |
| | Weak: Communication Services, Consumer Discretionary, Information Technology, Real Estate, Consumer Staples |
Moving the Market
-- Hotter-than-expected July employment report going against market's notion that Fed will pivot policy sooner rather than later
-- Mega cap downside leadership
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Closing Summary
05-Aug-22 16:25 ET
Dow +76.65 at 32805.35, Nasdaq -63.03 at 12657.51, S&P -6.75 at 4145.26
[BRIEFING.COM] Despite two of the main indices closing with modest losses, the stock market showed resilience to selling today on the heels of the hotter-than-expected July employment report. There was a selloff around midday before the main indices climbed off their lows and moved sideways to the close.
The S&P 500 was up 0.4% week-to-date; the Nasdaq was up 2.2% week-to-date; the Dow Jones Industrial Average was down 0.1% week-to-date.
The real downside drag were the lagging mega caps and growth stocks. The Vanguard Mega Cap Growth ETF (MGK) closed down 0.8% versus a 0.1% gain in the Invesco S&P 500 Equal Weight ETF (RSP). The Russell 3000 Growth Index closed with a 0.2% loss versus a 0.2% gain in the Russell 3000 Value Index.
Small and mid cap stocks were exempt from this pressure with the Russell 2000 (+0.8%) and S&P Mid Cap 400 (+0.6%) closing ahead of the three main indices.
S&P 500 sector performance was not exempt from mega cap downside pressure, however. Consumer discretionary (-1.7%), communication services (-0.9%), and information technology (-0.2%) were among the laggards today thanks to their top components, Tesla (TSLA 864.51, -61.39, -6.6%), Meta Platforms (META 167.11, -3.46, -2.0%), and Microsoft (MSFT 282.91, -0.74, -0.3%) underperforming.
Earnings news also affected sector performance. Disappointing quarterly results from Warner Bros. Discovery (WBD 14.59, -2.89, -16.5%) and Western Digital (WDC 47.09, -2.82, -5.7%) dragged down communication services and information technology, respectively.
Meanwhile, favorable earnings results from EOG Resources (EOG 107.01, +7.19, +7.2%) helped propel the energy sector (+2.0%) to the top of the leaderboard today. This sector was also boosted by rising oil prices. WTI crude oil futures rose 0.3% to $88.73/bbl. Unleaded gasoline futures rose 2.8% to $2.87/gal.
While the hot July jobs report didn't have an outsized effect on the stock market, Treasury yields rose sharply after the release. The 2-yr note yield, which sat at 3.05% before the report, rose 19 basis points to settle at 3.23%. The 10-yr note yield, which was at 2.70% before the report, rose 16 basis points to settle at 2.84%. Notably, Treasury yields made big upside moves on the week with the 2-yr yield rising 33 basis points week-to-date and the 10-yr yield rose 20 basis points week-to-date.
There is no U.S. economic data of note on Monday.
Reviewing today's economic data:
- July Nonfarm Payrolls 528K (Briefing.com consensus 250K); Prior was revised to 398K from 372K; July Nonfarm Private Payrolls 471K (Briefing.com consensus 200K); Prior was revised to 404K from 381K; July Avg. Hourly Earnings 0.5% (Briefing.com consensus 0.3%); Prior was revised to 0.4% from 0.3%; July Unemployment Rate 3.5% (Briefing.com consensus 3.6%); Prior 3.6%; July Average Workweek 34.6 (Briefing.com consensus 34.5); Prior was revised to 34.6 from 34.5
- The key takeaway from the report is that it squashes the friendly notion that the Fed can turn friendly with its monetary policy decisions sooner rather than later. There is a lot of ground to cover still before we get to 2023, but if a tight labor market is seen by Fed Chair Powell as a risk factor for perpetuating wage-based inflation pressures, the July employment report didn't change that perspective.
- Consumer credit increased by $40.1 bln in June after increasing by a revised $23.8 bln (from $22.4 bln) in May.
Dow Jones Industrial Average: -9.7% YTD
S&P 400: -11.9% YTD
S&P 500: -13.0% YTD
Russell 2000: -14.4% YTD
Nasdaq Composite: -19.1% YTD
Heading into the close moving sideways
05-Aug-22 15:30 ET
Dow +2.57 at 32731.27, Nasdaq -109.88 at 12610.66, S&P -18.19 at 4133.82
[BRIEFING.COM] The major indices have stuck to a narrow range in the last half hour.
The market is moving sideways but another S&P 500 sector, materials (+0.1%), joined energy (+2.3%) and financials (+0.7%) in positive territory.
The advance-decline line shows a mixed market. Decliners lead advancers by a 7-to-5 margin at the NYSE while advancers are roughly even with decliners at the Nasdaq.
June consumer credit was released at the top of the hour showing an increase of $40.1 billion (Briefing.com consensus -$24.7 billion) versus the prior revised increase of $23.8 billion (from $22.3 billion).
There is no U.S. economic data of note on Monday.
Market little changed
05-Aug-22 15:00 ET
Dow -1.77 at 32726.93, Nasdaq -114.69 at 12605.85, S&P -20.01 at 4132.00
[BRIEFING.COM] The stock market is little changed in the last half hour.
Energy complex futures settled mostly higher. WTI crude oil futures rose 0.3% to $88.73/bbl. Unleaded gasoline futures rose 2.8% to $2.87/gal. Natural gas futures went against the grain, settling 0.9% lower at $8.06/mmbtu.
The S&P 500 energy sector is the top performer by a wide margin, up 2.2%. It's helped out by the rising oil prices but also by EOG Resources (EOG 106.69, +6.87, +6.9%). The company outpaces the market after reporting earnings and receiving an upgrade to Buy from Hold at TD Securities.
Treasury yields continue to rise. The 2-yr note yield is up 19 basis points to 3.23% and the 10-yr note yield is up 17 basis points to 2.85%.
Monster falls after earnings, Constellation Energy advances on UBS upgrade
05-Aug-22 14:30 ET
Dow -50.01 at 32678.69, Nasdaq -124.58 at 12595.96, S&P -24.56 at 4127.45
[BRIEFING.COM] The benchmark S&P 500 (-0.59%) sits firmly in second place to this point on Friday.
S&P 500 constituents Moderna (MRNA 183.74, -10.44, -5.38%), Monster Beverage (MNST 91.93, -4.43, -4.60%), and Vornado Rlty Trust (VNO 27.44, -0.46, -1.65%) dot the bottom of today's action. MNST falls following earnings, while VNO trades ex-dividend today.
Meanwhile, Maryland-based utilities firm Constellation Energy (CEG 74.11, +6.65, +9.86%) hits all-time highs, making the stock today's top performer, after UBS upgraded the stock to Buy.
Gold trims weekly gains on Friday
05-Aug-22 14:05 ET
Dow -2.61 at 32726.09, Nasdaq -97.35 at 12623.19, S&P -17.70 at 4134.31
[BRIEFING.COM] With about two hours to go on Friday the tech-heavy Nasdaq Composite (-0.77%) continues to lag its major peers.
Gold futures settled $15.70 lower (-0.9%) to $1,791.20/oz, ending the week with gains of about +0.5%, aided by rising geopolitical tensions and recession sentiment.
Meanwhile, the U.S. Dollar Index is up about +0.8% to $106.56.
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