| | | Market Snapshot
| Dow | 40008.39 | +242.75 | (0.61%) | | Nasdaq | 17192.60 | +4.99 | (0.03%) | | SP 500 | 5455.21 | +20.78 | (0.38%) | | 10-yr Note | +2/32 | 3.82 |
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| | NYSE | Adv 1582 | Dec 1184 | Vol 803 mln | | Nasdaq | Adv 1762 | Dec 2418 | Vol 5.0 bln |
Industry Watch
| Strong: Information Technology, Financials, Real Estate, Consumer Staples, Health Care, Industrials |
| | Weak: Communication Services, Consumer Discretionary, Utilities |
Moving the Market
-- Mixed action in mega cap names limiting index performance
-- Digesting the July CPI report, which was in-line with the market's expectations
-- Treasury market exhibiting choppy action after inflation data
-- Good news partially priced in with yesterday's rally
| Closing Summary
14-Aug-24 16:20 ET
Dow +242.75 at 40008.39, Nasdaq +4.99 at 17192.60, S&P +20.78 at 5455.21
[BRIEFING.COM] The stock market exhibited more muted action following today's in-line CPI print compared to yesterday's rally after the pleasing PPI print. The S&P 500 (+0.4%) and Dow Jones Industrial Average (+0.6%) closed with gains while the Nasdaq Composite settled fractionally higher than yesterday and the Russell 2000 logged a 0.5% decline.
Total CPI was up 0.2% month-over-month in July, as expected, and core-CPI, which excludes food and energy, was up 0.2%, also as expected. The index for shelter was up 0.4% month-over-month and accounted for nearly 90% of the increase in the all items index.
On a year-over-year basis, total CPI was up 2.9%, versus 3.0% in June, and core-CPI was up 3.2%, versus 3.3% in June.
The lackluster response in equities was due in part to some good news being priced in yesterday. Advancers led decliners by a 5-to-3 margin at the NYSE and decliners led advancers by the same margin at the Nasdaq.
Outsized moves are reserved for stocks with catalysts. Kellanova (K 80.28, +5.78, +7.8%) was the top performing stock in the S&P 500 after news that Mars will acquire Kellanova for $83.50/share in cash, or total consideration of $35.9 billion, including debt.
Alphabet (GOOG 162.03, -3.90, -2.4%) was an influential laggard after a Bloomberg report that the Department of Justice may be looking at breaking up the company following last week's court ruling that Alphabet violated search-related antitrust laws.
This price action, along with a decline in Meta Platforms (META 526.76, -1.78, -0.3%), pinned the S&P 500 communication services sector (-0.9%) in last place on the lineup. Meanwhile, the financial (+1.3%) and information technology (+0.6%) sectors logged some of the largest gains.
The CPI print also had the market repricing the likelihood of a 50 basis points rate cut at the September FOMC meeting. According to the CME FedWatch Tool, there is still a 100% probability of a 25 basis points rate cut in September after today's release, but the probability of a 50 basis points rate cut has been reduced to 35.5% from 53.0%.
The 2-yr note yield, which is most sensitive to changes in the fed funds rate, settled one basis point higher at 3.95%. The 10-yr note yield declined three basis points to 3.82%.
- Nasdaq Composite:+14.5% YTD
- S&P 500: +14.4% YTD
- S&P Midcap 400: +6.2% YTD
- Dow Jones Industrial Average: +6.2% YTD
- Russell 2000: +2.8% YTD
Reviewing today's economic data:
- Weekly MBA Mortgage Applications Index 16.8%; Prior 6.9%
- July CPI 0.2% (Briefing.com consensus 0.2%); Prior -0.1%, July Core CPI 0.2% (Briefing.com consensus 0.2%); Prior 0.1%
- The key takeaway from the report is that it points to ongoing disinflation; hence, it won't change the market's belief that the Fed will cut rates by 25 basis points in September even though CPI inflation is comfortably above the Fed's 2% goal, which is oriented around PCE price inflation that is currently at 2.5%.
Wednesday's economic lineup features:
- 8:30 ET: July Retail Sales (Briefing.com consensus 0.3%; prior 0.0%), Retail Sales ex-auto (Briefing.com consensus 0.2%; prior 0.4%), weekly Initial Claims (Briefing.com consensus 232,000; prior 233,000), Continuing Claims (prior 1.875 mln), July Import Prices (prior 0.0%), Import Prices ex-oil (prior 0.2%), Export Prices (prior -0.5%), Export Prices ex-agriculture (prior -0.6%), and Empire State Manufacturing Survey (prior -6.6)
- 9:15 ET: July Industrial Production (Briefing.com consensus 0.1%; prior 0.6%) and Capacity Utilization (Briefing.com consensus 78.6%; prior 78.8%)
- 10:00 ET: June Business Inventories (Briefing.com consensus 0.2%; prior 0.5%) and August NAHB Housing Market Index (Briefing.com consensus 43; prior 42)
- 10:30 ET: Weekly natural gas inventories (prior +21 bcf)
- 16:00 ET: June Net Long-Term TIC Flows (prior -$54.6 bln)
CSCO trades up in front of earnings
14-Aug-24 15:05 ET
Dow +295.65 at 40061.29, Nasdaq -11.84 at 17175.77, S&P +22.10 at 5456.53
[BRIEFING.COM] The major indices trade near session highs. The S&P 500 sports a 0.4% gain.
Losses in some mega cap names are limiting index performance. The Vanguard Mega Cap Growth ETF (MGK) sports a slim gain, up 0.1%.
Cisco (CSCO 45.70, +0.33, +0.7%) trades up ahead of its earnings report this afternoon.
Progressive, Morgan Stanley among top S&P 500 gainers in financials
14-Aug-24 14:25 ET
Dow +201.63 at 39967.27, Nasdaq -32.79 at 17154.82, S&P +11.95 at 5446.38
[BRIEFING.COM] The S&P 500 (+0.22%) is comfortably in second place on Wednesday afternoon, up about 12 points.
Elsewhere, S&P 500 constituents Progressive (PGR 233.31, +10.98, +4.94%), Micron (MU 100.91, +3.47, +3.56%), and Morgan Stanley (MS 99.57, +2.86, +2.96%) pepper the top of the standings. PGR reported July operating metrics this morning, MU is today's top performer in the PHLX Semiconductor Index (SOX 4920.22, -22.08, -0.45%) despite a largely lower group, while MS enjoys general strength in financials (+1.04%).
Meanwhile, Albemarle (ALB 72.76, -4.46, -5.78%) is today's top laggard, underperforming alongside general weakness in materials (-0.12%).
Gold dips as CPI data adds to rate cut fire
14-Aug-24 14:00 ET
Dow +259.65 at 40025.29, Nasdaq -56.92 at 17130.69, S&P +7.89 at 5442.32
[BRIEFING.COM] The tech-heavy Nasdaq Composite (-0.33%) is still slightly in the red, underperforming this afternoon.
Gold futures settled $28.70 lower (-1.1%) to $2,479.70/oz, dipping notably after this morning's CPI reading fed into the sentiment is that a September rate cut is in the cards.
Meanwhile, the U.S. Dollar Index is up less than +0.1% to $102.58.
Home Depot, AmEx aid DJIA's Wednesday advance
14-Aug-24 13:30 ET
Dow +206.07 at 39971.71, Nasdaq -46.77 at 17140.84, S&P +7.41 at 5441.84
[BRIEFING.COM] The Dow Jones Industrial Average (+0.52%) is atop the major averages, up a little more than 200 points.
A look inside the DJIA shows that Home Depot (HD 358.53, +8.46, +2.42%), American Express (AXP 242.46, +3.47, +1.45%), and Travelers (TRV 213.59, +2.71, +1.29%) hold solid gains.
Meanwhile, Intel (INTC 20.04, -0.43, -2.10%) is underperforming.
The DJIA is up about +1.2% week-to-date.
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